HomeMy WebLinkAboutFCS-17-156 - T17-106 Grenville Avenue -Watermain Replacement ContractStaff Report
Finance and Corporate Services Department www:kirrhenerca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-08-28
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 9
DATE OF REPORT: 2017-08-16
REPORT NO.: FCS -17-156
SUBJECT: T17-106 Grenville Avenue (West End to Courtland Avenue)
Watermain Replacement Contract
RECOMMENDATION:
That Tender T17-106 Grenville Ave
Watermain Replacement Contract, be
Cambridge, Ontario, at their tendered
items and contingencies of $44,800.,
$477,531.22.
BACKGROUND:
iue (West End to Courtland Avenue)
awarded to G. Melo Excavating Limited,
price of $422,594., including provisional
plus H.S.T. of $54,937.22, for a total of
The City is proceeding with the replacement of the watermain on Grenville Avenue. The
existing watermain on Grenville Avenue between Courtland Avenue and the west end is
proposed to be replaced to correct a number of issues. This watermain was originally
laid in the 1940s and is reaching the end of its life cycle. Its original placement at sub-
standard depth has resulted in frozen services. Additionally, there are some lead
services that will be replaced with plastic. As is standard practice, homeowners will be
notified if they have lead services to give them an opportunity to replace the private
side. The current watermain is sub -standard size (100mm). This will be replaced with a
150mm diameter watermain which will improve domestic and fire flow. Construction is
anticipated to start in early September and will take approximately 6 weeks to complete.
The administration, design and tendering of this project has been completed by IBI
Group, who will also be providing construction administration and inspection of this
project.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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 downloaded ten (10) interested parties and by the closing date of
Friday August 11, 2017, two (2) tenders had been received.
The tenders were reviewed by S. Allen, Manager of Engineering Design and Approvals,
and K. Cobbe, IBI Group, the City's Consultant for the project, who concur with the
above recommendation.
The following tenders were received:
Bid Price
G. Melo Excavating Limited Cambridge ON $477,531.22*
Steed and Evans Limited St. Jacobs ON $573,000.00
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
but the upset limit exceeds the budget allowance (B) provided within the budget.
The deficit (E) will be funded from the water utility's Distribution System Upgrades
account (the purpose of which is to fund the replacement of water
services/valves/hydrants). There are sufficient funds in the account to fund the
deficit.
Tender T17-106
Grenville Watermain Replacement
Estimated Cost for this Phase of Work
Tender T17-106
less: HST rebate on tender
Net Cost Being Awarded
Projected Costs: Staff Time
Total Estimated Cost for this Phase of Work
Budget for this Phase of Work
Water Utility
Total Budget for this Phase of Work
Estimated Surplus/(Deficit) for this Phase of Work (B - C)
Estimated Surplus/(Deficit) from previous phases
Total Estimated Surplus/(Deficit)
COMMUNITY ENGAGEMENT:
477,531.22
(47,499.54)
430,031.68 A
7,072.00
$437,103.68 C
245,140.00
$245,140.00 B
(191,963.68) D
$(191,963.68) E
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