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HomeMy WebLinkAboutFCS-15-031 - T15-004 Brick St and Rosedale 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: 2015-02-26 REPORT NO.: FCS-15-031 SUBJECT: T15-004 Brick Street and Rosedale Avenue Road Reconstruction ___________________________________________________________________________ RECOMMENDATION: That Tender T15-004 Brick Street and Rosedale Avenue Road Reconstruction, be awarded to Terracon Underground Ltd., Brantford, Ontario at their tendered price of $758,429.79, including provisional items and contingencies of $76,397., plus H.S.T. of $98,595.87, for a total of $857,025.66. BACKGROUND: Engineering Services is proceeding with the reconstruction of Brick Street (Ottawa Street North to Rosedale Avenue) and Rosedale Avenue (Ottawa Street North to Brick Street). Funds for construction have been approved by Council as part of the 2015 budget. The services were originally constructed in the 1950’s and are in need of replacement. The project involves the replacement of the existing roadway, curb and gutter and sidewalk as well as all underground services and surface works. A new sidewalk will be added to the west side of Rosedale Avenue. 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. The project is scheduled to begin April 6, 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 fourteen (14) interested parties and by the closing date of Thursday January 29, 2015, nine (9) 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.b. - 1 The tenders were reviewed by J. Seip, Engineering Technologist, and S. Allen, Manager Engineering Design and Approvals, who concur with the above recommendation. The following tenders were received: Corrected Bid Price Bid Price Terracon Underground Ltd. Brantford ON $857,025.66* Network Sewer and Watermain Ltd. Cambridge ON $912,994.24 Sousa Concrete Branchton ON $930,143.96 J. Weber Contracting Limited Breslau ON $963,238.58 $963,238.59 Steed and Evans Limited St. Jacobs ON $999,000.02 $998,933.23 Regional Sewer and Watermain Ltd. Cambridge ON $1,000,239.84 G.R.T. Excavating Ltd. Woodstock ON $1,176,363.23 Elgin Construction St. Thomas ON $1,196,863.88 Euro-Ex Construction Woodstock ON $1,306,862.82 The budget estimate for construction was $988,532.00 (excluding HST) which is approximately mid-value of the received tenders. The tender prices for this project have a wide range (+/ - 20% from the average) which indicates varied approaches (construction techniques, profit margin, amount of work on hand) to the project by the contractors. 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.b. - 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 T15-004 Brick / Rosedale Reconstruction The total budget for all phases of this project is: $1,264,130.00 Estimated Cost for this Phase of Work Tender T15-004 costs, including HST 857,025.66 less: HST rebate on tender (85,247.47) Net Cost Being Awarded 771,778.19 A Costs Incurred to Date Projected Costs: Staff Time/Material Testing 107,069.00 Total Estimated Cost for this Phase of Work 878,847.19 C Budget for this Phase of Work Sanitary Utility 450,305.00 Storm Water Utility 225,153.00 Water Utility 303,467.00 Intensification Allowance 9,607.00 Total Budget for this Phase of Work 988,532.00 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) 109,684.81 D Estimated Surplus/(Deficit) from previous phases 183,591.52 Total Estimated Surplus/(Deficit) 293,276.33 E 3.b. - 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.b. - 4