HomeMy WebLinkAboutFCS-16-109 - T16-013 Howe Drive Oil and Grease Separator (OGS) Unit Installation Contract
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-06-27
SUBMITTED BY: Michelle Palmer, 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 6
DATE OF REPORT: 2016-06-16
REPORT NO.: FCS-16-109
SUBJECT: T16-013 Howe Drive Oil and Grease Separator (OGS) Unit
Installation Contract
___________________________________________________________________________
RECOMMENDATION:
That Tender T16-013 Howe Drive Oil and Grease Separator (OGS) Unit Installation
Contract be awarded to Ersman Const. Inc., Kitchener, Ontario, at their tendered
price of $386,627.50, including provisional items and contingencies of $33,610.,
plus H.S.T. of $50,261.58, for a total of $436,889.08.
BACKGROUND:
Engineering is proceeding with the installation of an oil and grit separator (OGS) unit on
Howe Drive (near the intersection of Ottawa Street and Westmount Road). This unit will
remove sediment, screen debris and separate oil from stormwater. This work includes
the installation of the OGS unit through open-cut, including the installation of two (2)
new maintenance holes, all appurtenances, restoration of roadway and surface, as per
City standards.
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 July 4, 2016, 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 seven (7) interested
parties and by the closing date of Thursday May 26, 2016, two (2) tenders had been
received.
The tenders were reviewed by S. Shah, Design Engineer and S. Allen, Manager,
Engineering Design & Approvals who concur with the above recommendation.
The following tenders were received:
Bid Price
Ersman Const. Inc. Kitchener ON $436,889.08 *
Kieswetter Excavating Inc. St. Clements ON $862,190.00
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
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). Funding for this purchase was
provided from existing capital account and SWM Cash in Lieu account transfers. There
is no estimated surplus (D).
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Tender T16-013
Howe Drive OGS Installation
Estimated Cost for this Phase of Work
Tender T16-013 costs, including HST $436,889.08
less: HST rebate on tender (43,456.91)
Net Cost Being Awarded $393,432.17 A
Costs Incurred to Date 47,106.02
Projected Costs: Staff Time/Material Testing 11,908.00
Total Estimated Cost for this Phase of Work $452,446.19 C
Budget for this Phase of Work
SWM Utility 50,000.00
SWM Cash in Lieu 402,446.19
Total Budget for this Phase of Work $452,446.19 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) - D
As per the SWM Policy, the City collected Cash-In-Lieu (CiL) funds from a developer in
this drainage area and identified the installation of an OGS unit at this location. The
proposed OGS unit treats a drainage area larger than the contribution of this
development and therefore general funding from the general CiL account is being
allocated to this unit.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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