HomeMy WebLinkAboutFCS-15-072 - T15-025 Donley St Kelvin Ave Meinzinger Ave Road ReconstructionStaff 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: 9
DATE OF REPORT: 2015 -04 -30
REPORT NO.: FCS -15 -072
SUBJECT: T15 -025 Donley Street, Kelvin Avenue and Meinzinger Avenue
Road Reconstruction
RECOMMENDATION:
That Tender T15 -025 Donley Street, Kelvin Avenue and Meinzinger Avenue Road
Reconstruction, be awarded to Steed and Evans, St. Jacobs, Ontario at their tendered
price of $2,808,000., including provisional items and contingencies of $221,696., plus
H.S.T. of $365,040., for a total of $3,173,040.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Donley Street, Kelvin Avenue,
and Meinzinger Avenue. The services were originally constructed in the 1950's and are in need
of replacement. The project involves the replacement of the roadway, curb and gutter and
sidewalk and all underground services and surface works.
Funds for construction have been approved by Council as part of the 2015 budget. A deficit is
projected in the project due to higher than anticipated construction pricing, and will be
addressed with transfers from the Accelerated Infrastructure Replacement Program (AIRP).
The large demand for construction contractors in the Region, combined with the time of year for
tender advertising are possible factors contributing to higher prices.
The project is scheduled to begin June 29, 2015 and be completed October 31, 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
* ** This information is available in accessible formats upon request. * **
Please call 519- 741 -2345 or TTY 1- 866 - 969 -9994 for assistance.
Ix. - 1
System. Documents were picked up by eight (8) interested parties and by the closing date of
Thursday April 23, 2015, six (6) tenders had been received.
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:
Bel -Air Excavating and Grading Cambridge ON
Steed and Evans St. Jacobs ON
Terracon Underground Ltd. Brantford ON
J. Weber Contracting Breslau ON
Euro -Ex Construction Woodstock ON
Regional Sewer and Watermain Ltd. Cambridge ON
RA Prim
$2,943,663.00
$3,173,040.00
$3,517,816.68
$3,588,056.11
$3,831,348.65
$4,355,402.83
The low bid submitted by Bel -Air Excavating and Grading did not provide pricing for all items,
resulting in an incomplete submission. As a result, the tender submission was deemed non-
compliant and was disqualified.
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.
Ix. -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. Additional funding
for this purchase is provided by the existing surplus balance in the account, as well as from the
Accelerated Infrastructure Replacement Program general account. The amount available in
this account is sufficient to fund this transfer. There is expected to be no surplus or deficit (E).
Tender T15 -025
Meinzinger / Donley/ Kelvin
The total budget for all phases of this project is:
Estimated Cost for this Phase of Work
Tender T15 -025 costs, including HST
less: HST rebate on tender
Net Cost Being Awarded
Costs Incurred to Date
Projected Costs: Staff Time
Total Estimated Cost for this Phase of Work
Budget for this Phase of Work
Sanitary Utility
Storm Water Utility
Water Utility
Intensification Allowance
SWM Cash in Lieu (57500075)
Total Budget for this Phase of Work
Estimated Surplus /(Deficit) for this Phase of Work (B - C)
Transfer from Accelerated Infrastructure Replacement Program
Estimated Surplus /(Deficit) from previous phases
Total Estimated Surplus /(Deficit)
$2,882,340.00
3,173,040.00
(315,619.06)
2,857,420.94 A
123,267.00
2,980,687.94 C
1,045,905.00
522, 952.00
704,848.00
21,860.00
115,000.00
2,410,565.00 B
(570,122.94) D
326, 501.42
243, 621.52
(0.00) E
Ix. -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
Ix. - 4