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HomeMy WebLinkAboutFCS-14-091 - 14-007 Ontario Street and David Street Road ReconstructionStaff Report rTC.�r R finance and Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2014 -05 -26 SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200 ext. 7214 PREPARED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200 ext. 7214 WARD(S) INVOLVED: 9 DATE OF REPORT: 201 -05 -14 REPORT NO.: FCS -14 -091 SUBJECT: T14 -007 — Ontario Street (Charles Street to Joseph Street) and David Street (Joseph Street to Jubilee Drive) Road Reconstruction RECOMMENDATION: That Tender T14 -007 — Ontario Street (Charles Street to Joseph Street) and David Street (Joseph Street to Jubilee Drive) Road Reconstruction be awarded to 410754 Ontario Limited o/a Sousa Concrete, Branchton, Ontario at their tendered price of $1,335,525.60, including provisional items and contingencies of $105,235., plus H.S.T. of $173,618.33, for a total of $1,509,143.93. BACKGROUND: Engineering Services is proceeding with the reconstruction of David Street (Joseph St. to Jubilee Dr.) and Ontario Street (Charles St to Joseph St.). Funds for construction have been approved by Council as part of the 2014 budget. The infrastructure has reached the end of its useful life and is in need of replacement. The project involves the replacement of the roadway, curb and gutter, sidewalk and all underground services and surface works as well as the installation of pedestrian lighting on Ontario Street. REPORT: Tenders were advertised publicly in the Daily Commercial News, on the City of Kitchener Website and the Internet through the Ontario Public Buyers Electronic Tendering Information System. Documents were picked up by ten (10) interested parties, and by the closing date of Thursday May 8, 2014, three (3) tenders were received. The tenders were reviewed by D. Roga, MTE Consultants Inc., the City's Consultant for the project, and K. Mick, Design & Approvals Engineer who concur with the above recommendation. Ix. - 1 The following tenders were received: Rid Price 410754 Ontario Limited o/a Sousa Concrete Branchton ON $1,509,143.93 Bel -Air Excavating & Grading Ltd. Cambridge ON $1,597,246.07 GRT Excavating Woodstock ON $1,800,044.24 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Theme: Financial Management Strategic Direction: Ensure responsible use of public funds within a supportive policy framework. The City of Kitchener's purchasing policies and practices ensure openness, fairness and transparency in the procurement of goods and services. Ix. -2 FINANCIAL IMPLICATIONS: In addition to the costs anticipated in this tender, the design and implementation of these types of projects typically involves city staff and resources from across the corporation. These costs are included in the line item "Projected Costs: Staff Time /Permitting /Material testing ", and will be itemized when they exceed $125,000. Included in this line item are staff time and expenses for all city staff in support of the project such as Engineering, Kitchener Utilities, and Transportation Planning. The line item also includes all regulatory permitting, geotechnical and material testing, detouring and traffic control, alternate access and parking requirements and any other miscellaneous costs. Projects utilizing in -house staff will include costs for inspection during construction and contract administration. The net cost for this tender (A), is fair and reasonable for a purchase of this scope but the upset limit exceeds the budget allowance (B) provided within the budget. Additional funding for this purchase is provided by the existing surplus balance in the account, as well as from the Accelerated Infrastructure Replacement Program general account. The amount available in this account is sufficient to fund this transfer. There is expected to be no surplus or deficit (E). Tender T14 -007 David /Ontario Street Reconstruction The total budget for all phases of this project is Estimated Cost for this Phase of Work Tender T14 -007 costs, including HST less: HST rebate on tender Net Cost Being Awarded Costs Incurred to Date Projected Costs: Staff Time /Material Testing Total Estimated Cost for this Phase of Work Budget for this Phase of Work Sanitary Utility Storm Water Utility Water Utility Intensification Allowance (DC) Total Budget for this Phase of Work Estimated Surplus /(Deficit) for this Phase of Work (B - C) Transfer from Accelerated Infrastructure Replacement Program Estimated Surplus /(Deficit) from previous phases Total Estimated Surplus /(Deficit) $1,577,843.00 1,509,143.93 (150,113.01) 1,359,030.92 A 73,274.00 1,432,304.92 C 542,593.00 271,296.00 365,661.00 18,670.00 1,198,220.00 B (234,084.92) D 155,934.95 78,149.97 0.00 E Ix. -3 COMMUNITY ENGAGEMENT: Potential vendors are informed of bid opportunities through the public posting of bid documents as outlined in the City's Purchasing By -Law. Vendors, local media and the general public are informed of purchasing recommendations to Council through the public reports which are included with the Council agenda the week prior to the Council meeting. ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services Ix. - 4