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HomeMy WebLinkAboutFIN-2021-43 - Q21-106 RBJ Schlegel Park Phase 2 - Operations Building and Site Development REPORT TO: Committee of the Whole DATE OF MEETING: 2021-08-23 SUBMITTED BY: Ryan Scott, Manager, Procurement, 519-741-2200 ext. 7214 PREPARED BY: Adam Buchholtz, Associate Procurement Specialist, 519-741-2200 ext. 7217 WARD(S) INVOLVED: Ward 5 DATE OF REPORT: 2021-08-13 REPORT NO.: FIN-2021-43 SUBJECT: Q21-106 RBJ Schlegel Park Phase 2 Operations Building and Site Development RECOMMENDATION: That Quotation Q21-106 RBJ Schlegel Park Phase 2 Operations Building and Site Development be awarded to Gateman-Milloy Inc., Kitchener, Ontario at the adjusted bid price of $3,306,204.50, including allowances, contingencies, and provisional items of $419,389.00, plus H.S.T. of $429,806.59, for a total of $3,736,011.09. REPORT HIGHLIGHTS: The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106; There were two (2) submissions received for this quotation; This report supports the delivery of core services. BACKGROUND: The scope of work within this contract represents the continuation of RBJ Schlegel Park development since its initial Phase starting in November 2017 through park opening in August 2020. This is Phase 2 of 5 of the park development, with all remaining phases scheduled and budgeted between 2021 and 2027. Phase 2 was scoped to include three major components: 1. Heritage Residence Adaptive Re-use stone farmhouse, relocated to its current location during Phase 1 works 2. New Operations and Maintenance Facility 3. Park Development continued development of recreational features such as tennis and basketball courts, lighting, tree planting and landscaping *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Contract Q21-106 is inclusive of components 2 & 3; the New Operations and Maintenance Facility, and Park Development scope of work. Component 1 renovations are currently underwaythrough Contract Q21-067. This award is presented to Council simultaneously with report no. INS-2021-06 RBJ Schlegel Sponsorship Funding 2020/2021. The complementary report details Phase 2 Outdoor Amenities within this scope of work, hi-lighting specific scope changes through its design development phase. The scope of this contract will conclude work within Phase 2 of RBJ Schlegel Park upon its targeted completion in July 2022. REPORT: As per clause 170.7.1 of the Purchasing By-law 2017-106, the Manager of Procurement shall submit a report to Council recommending award of a purchase greater than $750,000. Quotations 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 August 12, 2021, two (2) quotations had been received. The following quotations were received: Adjusted Bid Price Bid Price Gateman-Milloy Inc. Kitchener ON $3,550,251.52 $3,736,011.09 * Kieswetter Excavating Inc. St. Clements ON $3,782,155.20 $4,033,184.70 Bid prices were adjusted to include all provisional items in the award amount. The quotations were reviewed by N. Lobley, Director, Parks and Cemeteries, and S. project, who concur with the above recommendation. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The net cost for this quotation (A), is fair and reasonable for a project of this scope and the upset limit is above the funding available (B) for this component of the project. Funding for this project is included within the approved capital budget. The estimated surplus (E) will remain in the account to fund future phases of the project. Q21-106 RBJ Schlegel Park Phase 2 Total Budget for Phase 2 Construction $4,490,000 .00 Estimated Cost for this Component of Phase 2 Quotation Q21-106 costs, including HST 3,736,011.09 less: HST rebate (371,617.22) Net Cost Being Awarded 3,364,393.87 A Costs incurred to date - Projected Costs: Staff Time/Permitting/Signage - Total Estimated Cost for this Phase of Work 3,364,393.87 C Budget for this Phase of Work Budget for this component of the work 3,250,000.00 Sponsorship Funding per report INS-2021-06 290,000.00 Total Budget for this Phase of Work 3,540,000.00 B Total Estimated Surplus/(Deficit) 175,606.13 E COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: FIN-2021-33 - Q21-067 RBJ Schlegel Park Heritage House Washroom Renovation INS-2021-06 RBJ Schlegel Sponsorship Funding 2020/2021 APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department