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HomeMy WebLinkAboutFCS-14-207 - T14-092 Doon South Sewage Pumping StationStaff Report rTC.�r R finance and Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2014 -12 -15 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: 4 DATE OF REPORT: 2014 -12 -05 REPORT NO.: FCS -14 -207 SUBJECT: T14 -092 — Doon South Sewage Pumping Station RECOMMENDATION: That Tender T14 -092 — Doon South Sewage Pumping Station be awarded to Stone Town Construction Limited, St. Marys, Ontario at their tendered price of $5,707,964.60, including provisional items and contingencies of $657,002., plus H.S.T. of $742,035.40, for a total of $6,450,000. BACKGROUND: Engineering Services is proceeding with the construction of the Doon South Sanitary Pumping Station. Funds for construction have been approved by Council as part of a Credit for Service Agreement and secured through a Line of Credit. The need for this new pumping station was identified through an Environmental Assessment and included in the 2004, 2009 and 2014 Development Charges Background Study. The project involves the construction of a new sanitary pumping station, new sanitary forcemain, and site works. The administration, design and tendering of this project has been completed, the construction administration and inspection of this project will be completed by MMM Group Limited. 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 thirty -nine (39) interested parties, and by the closing date of Tuesday December 2, 2014, nineteen (19) tenders were received. The tenders were reviewed by M. Betkova, MMM Group Limited, the City's Consultant for the project, and C. Spere, Manager, Engineering Construction who concur with the above recommendation. 1. vii. -1 The following tenders were received: Bid Price Stone Town Construction Limited St. Marys ON $6,450,000.00 Finnbilt General Contracting Limited Stratford ON $6,617,442.72 Sona Construction Limited Hamilton ON $6,626,705.00 Xterra Construction Inc. Kitchener ON $6,665,279.01 Mettko Mississauga ON $6,758,671.00 Clearway Construction Inc. Concord ON $6,782,890.45 Reid & Deleye Contractors Inc. Courtland ON $6,911,914.21 North America Construction Morriston ON $6,928,645.00 Matheson Constructors Limited Concord ON $7,017,596.00 Baseline Constructors Inc. Waterloo ON $7,021,820.00 Pegah Construction Ltd. Toronto ON $7,041,256.00 Torbear Contracting Inc. Woodbridge ON $7,129,151.00 Hira General Contractors St. Thomas ON $7,214,944.91 Becc Construction Group Ltd. Brampton ON $7,228,734.31 Jevisco Construction Corporation Vaughan ON $7,403,295.00 Collaborative Structures Limited Cambridge ON $7,636,314.00 K & L Construction (Ontario) Ltd. London ON $7,885,250.00 Kingdom Construction Limited Ayr ON $7,984,214.00 Drainstar Contracting Ltd. Concord ON $9,921,390.00 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. 1. VII. - 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 and the upset limit is within the budget allowance (B) provided within the budget. Funding for this purchase is included within the approved financial agreement with Monarch Corporation. There is estimated to be no surplus /(deficit) (E). Tender T14 -092 Doon South Sanitary Pumping Station The total budget for all phases of this project is $11,298,760.00 Estimated Cost for this Phase of Work Tender T14 -092 costs, including HST 6,450,000.00 less: HST rebate on tender (641,574.94) Net Cost Being Awarded 5,808,425.06 A Costs Incurred to Date Projected Costs: Staff Time 75,000.00 T14 -093 New Dundee Sanitary Sewer 4,659,959.74 Total Estimated Cost for this Phase of Work 10,543,384.80 C Budget for this Phase of Work Development Charges (T14 -092 Pumping Station) 5,883,425.06 Development Charges (T14 -093 Sanitary Sewer) 1,009,845.50 Non - Refundable Developer Contribution (T14 -093 Sanitary Sewer) 3,650,114.24 Total Budget for this Phase of Work 10,543,384.80 B Estimated Surplus /(Deficit) for this Phase of Work (B - C) - D Estimated Surplus /(Deficit) from previous phases - Total Estimated Surplus /(Deficit) - E 1. vii. -3 COMMUNITY ENGAGEMENT: INFORM - 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 1. vii. -4