HomeMy WebLinkAboutFIN-2021-22 - T21-013 Webster Road Storm Sewer Upgrade
Staff Report
Financial Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2021-04-26
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 3
DATE OF REPORT: 2021-04-13
REPORT NO.: FIN-2021-22
SUBJECT: T21-013 Webster Road (Manitou Drive to 160m east) Storm Sewer
Upgrade
RECOMMENDATION:
That Tender T21-013 Webster Road (Manitou Drive to 160m east) Storm Sewer
Upgrade, be awarded to Steed and Evans Limited, St. Jacobs, Ontario, at their
tendered price of $676,435.40, including provisional items and contingencies of
$72,805.00, plus H.S.T. of $87,936.60, for a total of $764,372.00.
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 the value of the bid being recommended
for award is in excess of the approved budget;
There were five (5) tenders received for this procurement;
This report supports the delivery of core services.
BACKGROUND:
Engineering Services is proceeding with the upgrade of Webster Road storm sewer
(Manitou to 160m East) due to development in the area beyond what was originally
designed. The total length of the underground work is approximately 160m.
The existing storm sewers were originally constructed based on a small underdeveloped
catchment area. Since then, the catchment area has built out significantly and along with
substantial intensification on Fairway Road, creates inadequate capacity within the system
which is causing water backups on private lands. This work is being done fully due to
development in the area and is therefore being funded by development charges.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
The administration, design and tendering of this project has been completed by City staff,
the construction administration and inspection of this project will be completed by City staff
as well.
Full funding for this project is being completed under the City’s Development Charge
Funding. The project is scheduled to begin May 10, 2021, weather permitting.
REPORT:
As per clause 170.7.3 of the Purchasing By-law 2017-106, it states, “Regardless of
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. the value of the Bid being recommended for award including any
contingency allowance are in excess of the Council approved budget;
Tenders were advertised publicly on the City of Kitchener website. Documents were
downloaded by twenty-nine (29) interested parties and by the closing date of Thursday April
8, 2021, five (5) tenders had been received.
The following tenders were received:
Bid Price
Steed and Evans Limited St. Jacobs ON $764,372.00 *
Capital Paving Inc Guelph ON $771,000.00
Oxford Civil Group Inc. Woodstock ON $793,675.06
Kieswetter Excavating Inc. St. Clements ON $827,074.67
Network Sewer and Watermain Ltd Cambridge ON $910,681.74
The tenders were reviewed by J. Riedl, Construction Project Manager, who concurs with the
above recommendation.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
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 Development Charges reserve. There are sufficient funds in the reserve to
fund the deficit.
Tender T21-013
Webster Reconstruction
The total budget for all phases of this project is $ 750,000.00
Estimated Cost for this Phase of Work
Tender T21-013 costs, including HST 764,372.00
less: HST rebate on tender (76,031.30)
Net Cost Being Awarded 688,340.70
A
Costs Incurred to Date 21,174.28
Projected Costs: Staff Time/Material Testing 69,932.00
Total Estimated Cost for this Phase of Work $ 779,446.98
C
Budget for this Phase of Work
Development Charges 750,000.00
Total Budget for this Phase of Work $ 750,000.00
B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) (29,446.98)
D
Estimated Surplus/(Deficit) from previous phases -
Total Estimated Surplus/(Deficit) $ (29,446.98)
E
Deficit to be recovered from:
Development Charges Reserve $ (29,446.98)
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of
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