HomeMy WebLinkAboutFCS-15-108 - T15-057 Stahl Avenue and Wilhelm Street Road Reconstruction
REPORT TO: Special Council
DATE OF MEETING: 2015-08-10
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: Ward 10
DATE OF REPORT: 2015-07-21
REPORT NO.: FCS-15-108
SUBJECT: T15-057 Stahl Avenue and Wilhelm Street (Duke Street to Weber
Street) Road Reconstruction
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-057 Stahl Avenue and Wilhelm Street (Duke Street to Weber Street)
Road Reconstruction, be awarded to Steed and Evans Limited, St. Jacobs, Ontario, at
their tendered price of $1,114,747.20, including provisional items and contingencies of
$72,227., plus H.S.T. of $154,306.65, for a total of $1,341,280.85.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Stahl Avenue (West end to Duke
Street) and Wilhelm Street (Duke Street to Weber Street). The services were originally
constructed in the 1930’s and are in need of replacement. The project involves the replacement
of the roadway, curb and gutter, existing sidewalk and all underground services and surface
works.
Funding for this project was approved by Council as part of the 2015 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 is a possible factor contributing to higher
pricing. The project is scheduled to begin August 24, 2015, weather permitting. Delaying the
project by two weeks would put the completion date into November and increase the risk of
project delays due to inclement weather which would result in increased costs.
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.
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System. Documents were picked up by five (5) interested parties and by the closing date of
Thursday July 9, 2015, one (1) tender had been received.
The tender was reviewed by D. Roga, MTE Consultants Inc., the City’s consultant for the project
who concurs with the above recommendation.
The following tender was received:
Bid Price
Steed and Evans Limited St. Jacobs ON $1,341,280.85 *
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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Tender T15-057
Stahl Avenue and Wilhelm Street (Duke Street To Weber Street) Road Reconstruction
The total budget for all phases of this project is: $ 1,291,082.00
Estimated Cost for this Phase of Work
Tender T15-057 costs, including HST 1,341,280.85
less: HST rebate on tender (133,415.84)
Net Cost Being Awarded 1,207,865.01 A
Costs Incurred to Date
Projected Costs: Staff Time/Material Testing 26,306.00
Total Estimated Cost for this Phase of Work 1,234,171.01 C
Budget for this Phase of Work
Sanitary Utility 460,067.00
Storm Water Utility 230,033.00
Water Utility 310,044.00
Intensification Allowance 9,821.00
Total Budget for this Phase of Work 1,009,965.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) (224,206.01) D
Transfer from Accelerated Infrastructure Replacement
Program 214,104.89
Estimated Surplus/(Deficit) from previous phases 10,101.12
Total Estimated Surplus/(Deficit) - 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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