Loading...
HomeMy WebLinkAboutFIN-2021-15 - T21-022 Downtown Cycling Network Construction REPORT TO: Committee of the Whole DATE OF MEETING: 2021-03-22 SUBMITTED BY: Ryan Scott, Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY: Polina Semenov, Procurement Specialist, 519-741-2200 ext. 7037 WARD(S) INVOLVED: Ward 9 and 10 DATE OF REPORT: 2021-03-12 REPORT NO.: FIN-2021-15 SUBJECT: T21-022 Downtown Cycling Network Construction RECOMMENDATION: That Tender T21-022 Downtown Cycling Network Construction, be awarded to Steed and Evans Limited, St. Jacobs, Ontario, at their tendered price of $2,600,884.96, including provisional items and contingencies of $240,180.00, plus H.S.T. of $338,115.04, for a total of $2,939,000.00. REPORT HIGHLIGHTS: The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106; The reason this report is coming forward is that only one (1) bid was received in response to this solicitation; This report supports People-friendly Transportation by installing a continuous and protected cycling network. BACKGROUND: Transportation Planning in collaboration with Engineering Services is proceeding with the construction of the modified first phase of the Downtown Cycling Network. The installation of a Protected Downtown Cycling Grid (the grid) delivers on the Strategic Plan goal of providing more People-Friendly Transportation options and addresses the immediate priorities identified in the approved Cycling and Trails Master Plan. The work is comprised of two (2) separate parts of which the limits are defined as follows: Part 1 Joseph Street from Victoria Street South to Queen Street South, Water Street from Joseph Street to Weber Street West, and Queen Street from Joseph Street to Church Street; *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Part 2 Cedar Street from Church Street to Lancaster Street East and Chapel Street at Samuel Street and Simeon Street. The tender allowed the work to be awarded in full (both parts) or in partial (part 1 and part 2 independently). Only part 1 is being recommended for award for the construction of the separated bike lanes on Water Street, Joseph Street and Queen Street. This allows a substantial portion of work to be completed of the downtown cycling grid. Given the unique nature of this work, future phases of construction (including part 2) will be re-evaluated on contract size, project management and traffic control requirements which will aid in increasing interest in these projects from multiple contractors. Funding for this project has been approved by council as part of the 2021 budget process. The project is scheduled to begin April 6th, 2021. REPORT: As per clause 170.7.3 of the Purchasing By-law 2017- Procurement Value, the Manager of Procurement shall submit a report to Council recommending award of a purchase greater than $100,000 if any one or more of the following conditions apply: a. only one Bid was received in response to the Solicitation; Tenders were advertised publicly on the City of Kitchener website. Documents were downloaded by twenty (20) interested parties and by the closing date of Tuesday March 9, 2021, one (1) tender had been received. The following tender was received: Bid Price Bid Price (Part 1 and 2) (Part 1) Steed and Evans Limited St. Jacobs ON $3,625,000.01 $2,939,000.00 The tenders were reviewed by J. Seip, E.T., Engineering Technologist, who concurs with the above recommendation. STRATEGIC PLAN ALIGNMENT: This report supports People-friendly Transportation by installing a continuous and protected cycling network. 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 budget. The estimated surplus (E) will remain in the account to fund future phases of this project. Tender T21-022 Downtown Cycling Construction Estimated Cost for this Phase of Work Adjusted Tender T21-022 costs, including HST 2,939,000.00 less: HST rebate on tender (292,339.34) Net Cost Being Awarded $ 2,646,660.66 A Costs Incurred to Date - Projected Costs: Regional Traffic Signal Adjustments 117,700.00 Projected Costs: Consultant Inspection 185,000.00 Projected Costs: Staff Time/Material Testing 23,103.00 Total Estimated Cost for this Phase of Work $ 2,972,463.66 C Budget for this Phase of Work Cycling Infrastructure account- Phase 1 budget 2,657,000.00 Total Budget for this Phase of Work $ 2,657,000.00 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) (315,463.66) D Balance in account, net of encumbrances 672,864.14 Total Estimated Surplus/(Deficit) $ 357,400.48 E COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department