HomeMy WebLinkAboutFCS-15-080 -T15-036 Kennedy Palmer Ave Road Reconstruction
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015-06-01
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: 2015-05-15
REPORT NO.: FCS-15-080
SUBJECT: T15-036 Kennedy Avenue and Palmer Avenue Road
Reconstruction
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-036 Kennedy Avenue and Palmer Avenue Road Reconstruction be
awarded to Terracon Underground Ltd., Brantford, Ontario at their tendered price of
$1,295,722.32, including provisional items and contingencies of $100,018.50, plus H.S.T.
of $168,443.90 for a total of $1,464,166.22.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Kennedy Avenue and Palmer
Avenue. Kennedy Avenue and Palmer Avenue were originally constructed in the 1910’s with
construction of underground services in the subsequent decades 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. Areas of sidewalk infill will be
completed on Palmer Avenue on the south side from the west end to Courtland Avenue East
and on the north side from Courtland Avenue East to the Iron Horse Trail, and on Kennedy
Avenue on the east side. The tender for this work can be awarded with the decision on
sidewalk infill unresolved. The tender (being a unit price contract) is structured in a way that the
sidewalk infill can be deleted from the contract, without penalty.
Full funding for this project has been approved by Council as part of the 2014 budget process. 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. 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
July 6, 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.
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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 ten (10) interested parties and by the closing date of
Thursday May 14, 2015, four (4) tenders had been received.
The tenders were reviewed by L. Christensen, Design & Construction Project Manager who
concurs with the above recommendation.
The following tenders were received:
Bid Price
Terracon Underground Ltd. Brantford ON $1,464,166.22 *
Sousa Concrete Branchton ON $1,639,657.57
Steed and Evans St. Jacobs ON $1,695,000.01
Regional Sewer and Watermain Ltd. Cambridge ON $2,198,855.01
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.
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).
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The total budget for all phases of this project is: $ 1,496,701.00
Estimated Cost for this Phase of Work
Tender T15-036 costs, including HST 1,464,166.22
less: HST rebate on tender (145,639.12)
Net Cost Being Awarded 1,318,527.10 A
Costs Incurred to Date
Projected Costs: Staff Time/Material Testing 111,071.00
Total Estimated Cost for this Phase of Work 1,429,598.10 C
Budget for this Phase of Work
Sanitary Utility 503,386.00
Storm Water Utility 251,693.00
Water Utility 339,238.00
Intensification Allowance 21,139.00
Total Budget for this Phase of Work 1,115,456.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) (314,142.10) D
Transfer from Accelerated Infrastructure Replacement Program 67,401.91
Transfer from SWM Cash In Lieu (57500075) 31,813.67
Estimated Surplus/(Deficit) from previous phases 214,926.52
Total Estimated Surplus/(Deficit) (0.00) 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
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