HomeMy WebLinkAboutFCS-15-069 - T15-023 Freeport ForcemainsStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015 -05 -11
SUBMITTED BY: Michelle Palmer - Novakovic, Director of Supply Services
519- 741 -2200 ext. 7214
PREPARED BY: Laurie Stecho, Supervisor of Purchasing
519- 741 -2200 ext. 7089
WARD(S) INVOLVED: 2,3
DATE OF REPORT: 2015 -04 -30
REPORT NO.: FCS -15 -069
SUBJECT: T15 -023 Freeport Forcemains
RECOMMENDATION:
That Tender T15 -023 Freeport Forcemains, be awarded to Network Sewer and Watermain
Ltd., Cambridge, Ontario at their corrected tendered price of $5,148,634.13, including
provisional items and contingencies of $278,409.00, plus H.S.T. of $669,322.44, for a total
of $5,817,956.57.
BACKGROUND:
Engineering Services is proceeding with the construction of the Freeport Sanitary Forcemains
which stretch from the upgraded Freeport Pumping Station west along King Street, up Hofstetter
Avenue and down Cameo Drive where the forcemain crosses Highway 8 and temporarily ends
at Hidden Valley Road until the next phase of construction. This upgrade is critical as there is
currently no additional capacity within the Freeport Catchment Area and thus Engineering put a
development freeze on the Freeport catchment boundary in 2009. Multiple breaks in the
existing forcemain recently could have resulted in spills to the Grand River causing significant
liability to the City. The new sanitary forcemains and all restoration associated with it will be
primarily funded through development charges with a smaller portion of funding coming from the
Sanitary utility. This tender includes the trenchless installation of the sanitary forcemains along
King Street and under Highway 8. Open cut methods will be used along Hofstetter Avenue and
Cameo Drive.
The project is scheduled to begin June 1, 2015, weather permitting.
* ** This information is available in accessible formats upon request. * **
Please call 519- 741 -2345 or TTY 1- 866 - 969 -9994 for assistance.
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 twelve (12) interested parties and by the closing date of
Thursday April 16, 2015, three (3) tenders had been received.
The tenders were reviewed by J. Rosevear and D. Wilhelm, MTE Consultants Inc., the City's
Consultant for the project, L. Cooper, Manager, Development Engineering and K. Pietrzak,
Project Manager who concur with the above recommendation.
The following tenders were received:
Corrected
Bid Price Bid Price
Network Sewer & Watermain Ltd. Cambridge ON $5,821,370.07 $5,817,956.57*
Brantford Engineering and Construction Ltd. Brantford ON $6,195,021.04
Amico Infrastructures (Oxford) Inc. Oldcastle ON $8,027,342.59
Network's bid was corrected due to two minor mathematical errors.
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.
I.M. - 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 capital budget. The estimated surplus (E) will be
closed out to the appropriate reserves.
Tender T15 -023
Freeport Pumping Station Upgrades
The total budget for all phases of this project is:
Estimated Cost for this Phase of Work
Tender T15 -023 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
Development Charges
Sanitary Utility
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)
$ 18,433,110.00
5,817,956.57
(578,706.22)
5,239,250.35 A
103,141.00
5,342,391.35 C
5,424,941.00
2,844,199.00
8,269,140.00 B
2,926,748.65 D
1,161, 879.43
4,088,628.08 E
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
I.M. - 4