HomeMy WebLinkAboutDSD-2022-378 - T20-042 Stirling Ave Reconstruction PO Increase
Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: August 8, 2022
SUBMITTED BY: Gross, Hans, Director of Engineering Services, 519-741-2200 ext.
7410
PREPARED BY: Spere, Chris, Manager, Construction Engineering, 519-741-2200 ext.
7412
Allen, Steve, Manager, Engineering Design and Approvals, 519-741-
2200 ext. 7584
WARD(S) INVOLVED: Wards 8,9
DATE OF REPORT: July 19, 2022
REPORT NO.: DSD-2022-378
SUBJECT: T20-042 Stirling Avenue Reconstruction Purchase Order Increase
RECOMMENDATION:
That the Purchase Order for the Stirling Avenue South (Greenbrook Drive to Mausser
Avenue) Road Reconstruction T20-042 be increased by $1,500,000, funded by
existing surpluses in the Water Infrastructure Program (WIP).
REPORT HIGHLIGHTS:
The purpose of this report is to increase the purchase order for a project that is more
complex than initially identified due to delays and changes during construction related
to necessary permits and unforeseen issues.
The financial implications are limited to an additional transfer from existing WIP
balances
This report supports the delivery of core services.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Stirling Avenue South. Funds
for construction have been approved by Council as part of the 2020 budget. The services
The project scope includes the full reconstruction of Stirling Avenue South between Mauser
Avenue and Greenbrook Drive, and the reconstruction of the twin culvert under Stirling
Avenue South.
The administration, design and tendering of this project has been completed by City staff,
the construction administration and inspection of this project is being completed by City staff
as well.
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ucture Program (WIP) for road
reconstructions. Construction of the Stirling Avenue South Reconstruction was publicly
tendered by the city and was awarded in the spring of 2020 at a cost of $3,708,968.68.
REPORT:
This reconstruction was tendered April, 2020 and construction started June, 2020. The
project was planned as a multi-stage, two-year construction to be completed in 2021. This
project is a full road reconstruction including a new outlet culvert for Lakeside Park and a
new road crossing for Shoemaker Creek.
Several challenges and changes experienced during construction have resulted in additional
costs. These costs are a result of design changes required during construction, and material
and labour cost increases due to an unexpected delay in securing the required permit related
to work within Grand River Conservation Authority (GRCA) regulated area.
GRCA Permit
The GRCA requires a permit for any work within their Regulated Area which includes a
portion of this project, specifically the culvert work and areas adjacent to it. This permit was
applied for in advance of construction, however the complexities of the design as it relates
was not anticipated at the time the permit was applied for. Due to conflicting objectives of
the permit review period involved significant rework and data gathering efforts. This extra
effort included an expansion of the initially submitted Environmental Impact Assessment,
revisions to the culvert and road design, and resubmission of the floodplain modelling.
As a result of the additional work being required to support the permit, in early 2021 staff
proactively notified the contractor that the second phase of the work that included the GRCA
regulated areas would be deferred to 2022 to allow time to complete the extra work and
secure the permit. This also gave the contractor time to re-allocate resources to other
potential projects in 2021.
This extra work resulted in the permit not being granted until early 2022. As a result of the
1-year delay in the second phase, the contractor submitted a claim for additional
compensation above their original bid pricing, to adjust for cost increases on labour and
materials not yet purchased or installed.
Unforeseen Conditions
Stirling Ave South had infrastructure that pre-dated most modern record keeping and thus
record information for this section of Stirling was scarce and not accurate. During the
construction in 2022, numerous unknowns were discovered. These included several large
diameter concrete pipes, concrete headwalls, pipes connected to the Lakeside pond and
additional buried concrete road. The required additional investigation resulted in delays and
additional costs.
Design changes resulting from the work included in securing the GRCA permit included a
twinning of the initial proposed culvert, different headwalls and retaining walls and an
increase in the elevation of the roadway, The material and labour costs are an increase to
the tender.
reconstruction of
Stirling Avenue South be funded from surpluses in theWIP. The reasons for this include:
The necessary design changes were not anticipated at the time of tender
The delay in securing the necessary permits could not have been anticipated
Additional costs for the new design were reviewed by staff and they are found to be
inline with the original bid and would have been included in the original tender had it
been known at that time
Unknown buried infrastructure could not have been known or identified during the
design phase of the project
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Funding for the purchase order extension will be allocated from existing surpluses in the
WIP General account which is intended to balance surpluses and deficits between WIP
projects. Sufficient funding exists in the WIP General account to address the purchase order
extension.
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-20-039 T20-042 Stirling Avenue South (Greenbrook Drive to Mausser Ave)
Road Reconstruction
APPROVED BY: Justin Readman, General Manager of Development Services