HomeMy WebLinkAboutFCS-14-093 - T14-029 Road Reconstruction Kennedy Avenue and Palmer AvenueStaff 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: 2014 -05 -15
REPORT NO.: FCS -14 -093
SUBJECT: T14 -029 — Road Reconstruction Contract Kennedy Avenue and
Palmer Avenue
RECOMMENDATION:
That Tender T14 -029 — Road Reconstruction Contract Kennedy Avenue and Palmer Avenue,
be awarded to Terracon Underground Ltd., Brantford, Ontario at their corrected tendered
price of $1,133,067.31., including provisional items and contingencies of $98,418.50, plus
H.S.T. of $147,298.75, for a total of $1,280,366.06.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Kennedy Avenue and Palmer
Avenue. Funds for construction have been approved by Council as part of the 2014 budget.
Kennedy Avenue and Palmer Avenue were originally constructed in the 1910's with construction
of underground services in the subsequent decades and are in need of replacement. The
project involves the replacement of the roadway, curb and gutter and sidewalk and all
underground services and surface works.
The administration, design and tendering of this project has been completed by City staff, the
construction administration and inspection of this project will be completed by City staff as well.
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 eleven (11) interested parties, and by the closing date of
Thursday May 8, 2014, seven (7) tenders had been received.
1xi. - 1
The tenders were reviewed by J. Seip, Engineering Technologist, who concurs with the above
recommendation.
The following tenders were received:
Bid Price
Terracon Underground Ltd.
Brantford ON
$1,280,378.67
J. Weber Contracting Ltd.
Breslau ON
$1,345,452.65
Steed and Evans Ltd.
St. Jacobs ON
$1,333,400.00
Bel -Air Excavating & Grading Ltd.
Cambridge ON
$1,475,539.08
Sierra Construction
Woodstock ON
$1,562,352.84
Regional Sewer and Watermain Ltd.
Cambridge ON
$1,577,947.88
GRT Excavating
Woodstock ON
$1,643,739.08
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Corrected Bid
Price
$1,280,366.06 *
$1,423,800.00
$1,475,539.65
$1,562,352.89
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.
1xi. -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. The estimated surplus (E) will be returned to the
Accelerated Infrastructure Replacement Program (AIRP) general account, and will be used to fund
unexpected deficits in other AIRP projects.
Tender T14 -029
Kennedy Ave / Palmer Ave Reconstruction
The total budget for all phases of this project is
Estimated Cost for this Phase of Work
Tender T14 -029 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)
Estimated Surplus /(Deficit) from previous phases
Total Estimated Surplus /(Deficit)
$1,496,701.00
1,280,366.06
(127,356.71)
1,153,009.35 A
121,071.13
1,274,080.48 C
503,386.00
251,693.00
339,238.00
21,139.00
1,115,456.00 B
(158,624.48) D
224.703.91
66,079.43 E
1xi. -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
1xi. -4