HomeMy WebLinkAboutFCS-16-123 - T16-077 Battler Road Snow Storage and Disposal Facility Construction
REPORT TO: Special Council
DATE OF MEETING: 2016-08-08
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Adam Buchholtz, Buyer, 519-741-2200 ext. 7217
WARD(S) INVOLVED: Ward 5
DATE OF REPORT: 2016-07-21
REPORT NO.: FCS-16-123
SUBJECT: T16-077 Battler Road Snow Storage and Disposal Facility
Construction
___________________________________________________________________________
RECOMMENDATION:
That Tender T16-077 Battler Road Snow Storage and Disposal Facility
Construction, be awarded to Gateman-Milloy Inc., Kitchener, Ontario, (Option ___)
[Council’s decision regarding the additional funding allocation outlined in
Infrastructure Services Department report INS-16-064 would automatically inform
which of the following four options is included in the above recommendation]
Option A - at their tendered price of $2,608,727.57, including provisional items
and contingencies of $124,690., plus H.S.T. of $339,134.58, for a total of
$2,947,862.15, no reduction in work; or,
Option B - at their adjusted tendered price of $2,549,672.57, including provisional
items and contingencies of $124,690., plus H.S.T. of $331,457.43, for a total of
$2,881,130., washroom facility removed; or,
Option C - at their adjusted tendered price of $2,585,855.02, including provisional
items and contingencies of $124,690., plus H.S.T. of $336,161.15, for a total of
$2,922,016.17, landscaping along Battler Road removed; or,
Option D - at their adjusted tendered price of $2,526,800.02, including provisional
items and contingencies of $124,690., plus H.S.T. of $328,484., for a total of
$2,855,284.02, washroom facility and landscaping along Battler Road removed.
*** 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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BACKGROUND:
The City of Kitchener requires a snow storage disposal facility to meet its legislated
requirements for snow removal. A permanent snow storage disposal facility will meet
the community’s immediate and future needs and will help to provide a safer winter
experience for residents and visitors to the area. In 2015, a site selection process
identified the Battler site as the preferred location. The location was confirmed by
Council and funding for its construction was provided.
In addition to construction for the snow storage disposal facility, a section of the City’s
storm water sewer runs underneath a portion of the Battler site, and will need replacing
within the next five years. As the site is going to be under construction, it is prudent to
install this portion of the storm sewer now instead of disturbing the site sometime within
the next five years. The replacement of this storm sewer is included as part of the
construction tender and is funded from the Storm Water Utility.
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 downloaded by twenty-nine (29)
interested parties and by the closing date of Monday July 18, 2016, five (5) tenders had
been received.
The tenders were reviewed by J. Cabral, MTE Consultants Inc., the City’s Consultant for
the project, D. Locke, Interim Associate Director INS – Operations Roads and Traffic,
and H. Gross, Director Engineering Services who concur with the above
recommendation.
The following tenders were received:
Corrected
Bid Price Bid Price
Gateman-Milloy Inc. Kitchener ON $2,947,862.15 *
Kieswetter Excavating Inc. St. Clements ON $3,046,426.89 $3,046,291.29
Network Sewer and
Watermain Ltd. Cambridge ON $3,176,238.24
E & E Seegmiller Limited Kitchener ON $3,378,659.09 $3,379,721.18
Steed and Evans Limited St. Jacobs, ON $3,682,313.93 $3,912,156.49
Tenders were checked for mathematical accuracy and corrected accordingly.
Gateman-Milloy Inc. remains the lowest bidder regardless of the choice of award made
by Council.
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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 amended budget allowance (B) approved by Council as part
of report INS-16-064. Funding for this purchase is included within the approved capital
budget. The estimated surplus (E) will be returned proportionately to the DC Recovery
Reserve and to the Storm Water Utility Capital Reserve.
The budget for this project has been amended by Council as considered in report INS-
16-064. The four options presented in the recommendation section of this report outline
the possible alternatives, some of which have a reduced scope of work at a reduced
cost. The funding shown below assumes the full scope of work is awarded. A reduced
scope of work would result in a reduced tender award, as well as a corresponding
budget reduction (i.e. the additional funding of $660,000 would be reduced as required).
Tender T16-077
Battler Road Snow Disposal and Storage Facility
The total budget for all phases of this project is $3,200,000.00
Estimated Cost for this Phase of Work
Tender T16-077 costs, including HST 2,947,862.15
less: HST rebate on tender (293,220.98)
Net Cost Being Awarded 2,654,641.17A
Costs Incurred to Date
Projected Costs: Staff Time/Permitting/Material Testing 34,158.33
Total Estimated Cost for this Phase of Work 2,688,799.50C
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Budget for this Phase of Work
Development Charge (DC) Recovery Reserve 1,900,000.00
Add: Funding Approved from DC Recovery Reserve (report 660,000.00
INS-16-064)
Storm Utility 140,000.00
Total Budget for this Phase of Work 2,700,000.00B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) 11,200.50D
Estimated Surplus/(Deficit) from previous phases 3,434.93
Total Estimated Surplus/(Deficit)14,635.43E
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:
FCS 16-018 – Consultant Services – Battler Road Snow Storage Disposal Facility,
Council Meeting February 22, 2016
INS 15-091 - Snow Disposal Site Public Consultation, Council Meeting November 2,
2015
INS 15-086 – Consultant Fees Required to Address Council Motion Regarding Snow
Dump – Battler Yard, Council Meeting October 5, 2015
INS 15-044 – Snow Disposal Site Selection Report, Community and Infrastructure
Services Committee September 21, 2015
INS 16-064 - Battler Snow Storage Disposal Facility (SSDF) Funding Increase
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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