HomeMy WebLinkAboutFIN-19-043 - T19-014 Franklin Street North and Fairmount Road Road Reconstruction
REPORT TO: Committee of the Whole
DATE OF MEETING: 2019-05-13
SUBMITTED BY: Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY: Polina Semenov, Procurement Specialist, 519-741-2200 ext. 7037
WARD (S) INVOLVED: Wards 2 and 10
DATE OF REPORT: 2019-05-03
REPORT NO.: FIN-19-043
SUBJECT: T19-014 Franklin Street North (Weber Street East to Trafalgar Avenue)
and Fairmount Road (Sheldon Avenue to Montgomery Road) Road
Reconstruction
__________________________________________________________________________________________
RECOMMENDATION:
That Tender T19-014 Franklin Street North (Weber Street East to Trafalgar Avenue) and
Fairmount Road (Sheldon Avenue to Montgomery Road) Road Reconstruction, be
awarded to Regional Sewer and Watermain Ltd., Cambridge, Ontario, at their tendered
price of $5,738,487.58, including contingencies of $565,000., plus H.S.T. of $746,003.39,
for a total of $6,484,490.97
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Fairmount Road (Sheldon Avenue
to Montgomery Road), extending over an approximate project distance of 450 meters and
Franklin Street North (Weber Street East to Trafalgar Avenue), extending over an approximate
project distance of 650 meters.
The work includes the replacement of the existing sanitary sewer, storm sewer, water supply
system, roadway, curb and gutter, sidewalks and municipal service connections to the street
property line. The services were originally constructed in the 1950
replacement.
As part of the reconstruction, sidewalk infill will occur on the following street:
On East side of Fairmount Road from Sheldon Avenue North to Jackson Avenue
Sidewalk infill projects do not typically come to Council for approval (as per previous Council
direction), but since this tender is over budget, it must be approved by Council.
The projected deficit is attributable to a higher construction cost which was not identified at the
time the original budget was established. Budget for construction was finalized late summer
2018, in accordance with internal Capital Budget milestones. This budget was based on
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
preliminary designs which did not capture the full cost of the construction. Staff have reviewed
options with respect to the award of this tender, including awarding portions of the work to meet
budget and retendering entirely. Staff have determined that the low bid for this work represents
a fair price for this work and is supported by the pre-tender estimate (provided after budget but
before tender) being very close to the low bid price. Retendering this work would likely not result
in lower pricing.
nfrastructure Program (WIP) for road
reconstruction. The deficit will be funded from the WIP Road Reconstruction general account.
The project is scheduled to begin May 21, 2019.
REPORT:
Tenders were advertised publicly on the City of Kitchener website. Documents were
downloaded by twenty-four (24) interested parties and by the closing date of Thursday April 25,
2019, three (3) tenders had been received.
The following tenders were received:
Bid Price
Regional Sewer and Watermain Ltd. Cambridge ON $ 6,484,490.97 *
Sierra Infrastructure Inc Woodstock ON $ 7,086,590.17
Bel-Air Excavating & Grading Ltd. Cambridge ON $ 7,883,232.13
The tenders were reviewed by D. McLeod, Associated Engineering (Ont.) Ltd.
Consultant for the project and S. Shah, Design Engineer, who concur with the above
recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
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. Funding for this purchase is
included within the approved capital forecast. The estimated deficit (E) will be funded from the
WIP Road Reconstruction general account. There are sufficient funds in the account to fund the
deficit.
Tender T19-014
Fairmount Road and Franklin Street N. Reconstruction
The total budget for all phases of this project is $ 5,473,000.00
Estimated Cost for this Phase of Work
Tender T19-014 costs, including HST 6,484,490.97
less: HST rebate on tender (645,005.72)
Net Cost Being Awarded 5,839,485.25 A
Costs Incurred to Date -
Projected Costs: Staff Time/Material Testing 10,000.00
Total Estimated Cost for this Phase of Work $ 5,849,485.25 C
Budget for this Phase of Work
WIP Road Reconstruction - Sanitary Utility 2,130,000.00
WIP Road Reconstruction - Stormwater Utility 1,065,000.00
WIP Road Reconstruction - Water Utility 1,436,000.00
Contribution from Storm Water Utility - Low Impact Development 200,000.00
$ 4,831,000.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) (1,018,485.25) D
Estimated Surplus/(Deficit) from previous phases 40,083.71
Total Estimated Surplus/(Deficit) $ (978,401.54) E
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
DSD-18-035 2019 Sidewalk Infill through Reconstruction May 28, 2018, Community
and Infrastructure Services Committee
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department