HomeMy WebLinkAboutFCS-17-102 - T17-084 Road Seal Resurfacing Contract
REPORT TO:Committee of the Whole
DATE OF MEETING:2017-06-05
SUBMITTED BY:Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
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REPARED BY:Laurie Stecho, Supervisor of Purchasing
519-741-2200 ext. 7089
WARD(S) INVOLVED:Wards1, 2, 3, 4, 5, 9, 10
DATE OF REPORT:2017-05-17
REPORT NO.:FCS-17-102
SUBJECT:T17-084 Road Seal Resurfacing Contract
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RECOMMENDATION:
That Tender T17-084 Road Seal Resurfacing Contract, be awarded to MSO
Construction Limited, Etobicoke, Ontario, at their adjusted tendered price of
$167,686.40, plus H.S.T. of $21,799.23, for a total of $189,485.63.
BACKGROUND:
The purpose of the road seal program is to maintain an acceptable level of service of
the roadway pavement quality for all city streets. The City’s roadway network is
evaluated in terms of surface distress, ride discomfort and structural adequacy.
Collectively, these evaluations determine an overall pavement quality rating, known as
PQI (Pavement Quality Index) for each road section within the entire road network. The
results of this evaluation process provides a prioritized pavement improvement
program, which determines the yearin which certain streets should be rehabilitated and
a recommendation on whattype of rehabilitation is bestand most cost effective for the
streets included in this tender:
The streets selected for the road seal program are streets that are outside of the 10
year Capital Reconstruction and roads resurfacing list. The road seal street treatment is
applied to Tar and Chip roads within the City that need to be sealed because of road
Tar surface bleeding and stress cracking on the roadway. This product can be applied
to 13 separate streets totalling approximately 5.4 kilometers of road within the 2017
budget. The road seal provides a surface sealer that can extend the life expectancy of
the road 5-7 years at a fraction of the cost of rehabilitating the roads with all new
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asphalt. Attached as Appendix A is a list of the streetswhich will receive Road Seal
Resurfacing under this tender.
REPORT:
Tenders were advertised publicly on the City of Kitchener website and the internet
through the Ontario Public Buyers Electronic Tendering Information System.
Documents were downloadedbyfour (4) interested parties and by the closing date of
Thursday May 11,2017,two (2) tenders had been received.
The tenders were reviewed by R. Trussler, Engineer Construction Project Managerwho
concurswith the above recommendation.
The following tenders were received:
Adjusted
Bid Price Bid Price
MSO Construction Limited EtobicokeON $248,509.60 $189,485.63*
Duncor Enterprises Inc. Barrie ON $321,863.55 $262,839.58
The tender is based on unit pricing. Tenders received exceeded the pre-tender
estimate. In order to complete the work at the tendered unit prices, three streets were
removed from thescope of work.Huron Road (Trussler to Amand Drive), North Drive
(Highland to Queen), and Rosemount Dr. (Bruce to River) were removed as they were
the lowest priority streets after evaluation by the Asset Management department.
The price for Road Seal Resurfacing has decreased 4.7% from the 2016 contract.
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.
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The reduced 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.
The balance in this account is sufficient to fund the shortfall. The estimated surplus (E)
will remain within the project to fund prep work completed by City of Kitchener's
Operations Staff and for future road seal work.
Tender T17-084
Road Seal Resurfacing
Estimated Cost for this Phase of Work
Tender T17-084 costs, including HST248,509.60
Deferral, including HST59,023.97
Adjustedbid price189,485.63
less: HST rebate on tender(18,847.94)
Net Cost Being Awarded170,637.69 A
Projected Costs: Staff Time/Permitting/Material Testing 5,000.00
Total Estimated Cost for this Phase of Work$175,637.69 C
Budget for this Phase of Work
Capital out of Current22,597.00
Federal Gas Tax108,000.00
Total Budget for this Phase of Work$130,597.00 B
Estimated Surplusfor this Phase of Work (B -C)(45,040.69)D
Balance in account, net of encumbrances66,807.82
Total Estimated Surplus $21,767.13 E
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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