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HomeMy WebLinkAboutFCS-15-032 - T15-003 Stirling Ave South Reconstruction - Russel St to Mill St 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: 9 DATE OF REPORT: 2015-02-26 REPORT NO.: FCS-15-032 SUBJECT: T15-003 Stirling Avenue South Road Reconstruction (Russel Street to Mill Street) ___________________________________________________________________________ RECOMMENDATION: That Tender T15-003 Stirling Avenue South Road Reconstruction (Russel Street to Mill Street), be awarded to Sousa Concrete, Branchton, Ontario at their tendered price of $695,473.50, including provisional items and contingencies of $60,623., plus H.S.T. of $90,411.56, for a total of $785,885.06. BACKGROUND: Engineering Services is proceeding with the reconstruction of Stirling Avenue South (Russel Street to Mill Street). Funds for construction have been approved by Council as part of the 2015 budget. The services were originally constructed in the 1910’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. Also included in the tender is some work in Charles Best Park regarding trail paving and re-grading, which is funded from the Park Rehabilitation capital account. 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 eleven (11) interested parties and by the closing date of Thursday February 5, 2015, 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.c. - 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 Sousa Concrete Branchton ON $785,885.06* G.R.T. Excavating Ltd. Woodstock ON $821,099.36 $814,318.27 Network Sewer and Watermain Ltd. Cambridge ON $847,791.80 $847,949.30 J. Weber Contracting Limited Breslau ON $860,000.38 $860,000.39 Steed and Evans Limited St. Jacobs ON $863,320.00 Regional Sewer and Watermain Ltd. Cambridge ON $944,167.24 Elgin Construction St. Thomas ON $1,039,484.10 Euro-Ex Construction Woodstock ON $1,076,658.01 The budget estimate for construction was $696,409.50 (excluding HST) which is less than the low tender received for this project. The tender prices for this project have a reasonably normal price range (+/- 12% from the average) indicating typical competition and tender results. 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.c. - 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. The estimated deficit (D) will be funded from the previous phase surplus. 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 T15-003 Stirling Ave S Reconstruction The total budget for all phases of this project is: $ 884,763.00 Estimated Cost for this Phase of Work Tender T15-003 costs, including HST 785,885.06 less: HST rebate on tender (78,171.19) Net Cost Being Awarded 707,713.87 A Costs Incurred to Date Projected Costs: Staff Time/Material Testing 68,218.00 Total Estimated Cost for this Phase of Work 775,931.87 C Budget for this Phase of Work Sanitary Utility 299,276.00 Storm Water Utility 149,638.00 Water Utility 201,686.00 Intensification Allowance 6,572.00 Park Rehabilitation 39,237.50 Total Budget for this Phase of Work 696,409.50 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) (79,522.37) D Estimated Surplus/(Deficit) from previous phases 144,023.80 Total Estimated Surplus/(Deficit) 64,501.43 E 3.c. - 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.c. - 4