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HomeMy WebLinkAboutFCS-15-030 - T14-106 Delisle Ave Peltz Ave Road Reconstruction REPORT TO: Special Council DATE OF MEETING: 2015-03-09 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: 10 DATE OF REPORT: 2015-02-25 REPORT NO.: FCS-15-030 SUBJECT: T14-106 Delisle Avenue (Moore Avenue to Dekay Street) and Peltz Avenue (Moore Avenue to Waterloo Street) Road Reconstruction ___________________________________________________________________________ RECOMMENDATION: That Tender T14-106 Delisle Avenue (Moore Avenue to Dekay Street) and Peltz Avenue (Moore Avenue to Waterloo Street) Road Reconstruction, be awarded to Terracon Underground Ltd., Brantford, Ontario at their tendered price of $1,316,366.70, including provisional items and contingencies of $121,280., plus H.S.T. of $171,127.67 for a total of $1,487,494.37. BACKGROUND: Engineering Services is proceeding with the reconstruction of Delisle Avenue (Moore Avenue to Dekay Street) and Peltz Avenue (Moore Avenue to Waterloo Street). Funds for construction have been approved by Council as part of the 2015 budget. The infrastructure has reached the end of its useful life and is in need of replacement. The project involves the replacement of the existing roadway, curb and gutter, sidewalk, all underground services as well as surface works. The project is scheduled to begin April 7, 2015, weather permitting. 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 thirteen (13) interested parties and by the closing date of Thursday December 11, 2014, eight (8) tenders had been received. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 3. a. - 1 The tenders were reviewed by A. Froese, Meritech Engineering, the City’s Consultant for the project and K. Mick, Design and Approval Engineer who concur with the above recommendation. The following tenders were received: Corrected Bid PriceBid Price Terracon Underground Ltd. Brantford ON $1,487,494.37 * Network Sewer and Watermain Ltd. Cambridge ON $1,496,639.50 $1,496,638.83 Sierra Construction (Woodstock) Ltd. Woodstock ON $1,516,650.37 $1,516,188.51 Regional Sewer and Watermain Ltd. Cambridge ON $1,683,020.87 J. Weber Contracting Limited Breslau ON $1,783,934.33 Bel-Air Excavating & Grading Ltd. Cambridge ON $1,811,537.58 Sousa Concrete Branchton ON $1,922,158.81 Amico Infrastructures (Oxford) Inc. Oldcastle ON $2,030,053.90 The consultant’s pre-tender engineering estimate was $1,669,274.90 (excluding HST) which is approximately the mid-value of the received tenders and varies by 15% from the initial pre- design budgeted construction value of $1,959,050.00. Due to the early timing of the tender call, very aggressive bidding was displayed by the contractors in order to secure work for the early part of 2015. 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. 3. a. - 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 proposed 2015 capital budget. 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 T14-106 Delisle / Peltz Reconstruction The total budget for all phases of this project is: $2,334,270.00 Estimated Cost for this Phase of Work Tender T14-106 costs, including HST 1,487,494.37 less: HST rebate on tender (147,959.55) Net Cost Being Awarded 1,339,534.82 A Costs Incurred to Date Projected Costs: Staff Time/Material Testing 42,169.00 Total Estimated Cost for this Phase of Work 1,381,703.82 C Budget for this Phase of Work Sanitary Utility 892,445.00 Storm Water Utility 446,222.00 Water Utility 601,430.00 Intensification Allowance 18,953.00 Total Budget for this Phase of Work 1,959,050.00 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) 577,346.18 D Estimated Surplus/(Deficit) from previous phases 43,075.40 Total Estimated Surplus/(Deficit) 620,421.58 E 3. a. - 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 3. a. - 4