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HomeMy WebLinkAboutDTS-06-066 - Funding Implications - Tender T06-011, Road Reconstruction, King St E, Madison AveJ Kd LR Development& Technical Services 6 REPORT Report To: Mayor Zehr and Members of Council Date of Meeting: April 3, 2006 Submitted By: Robert Shamess, P. Eng., Director of Engineering -DTS Prepared By: Carrie Curtis, P. Eng., Senior Project Manager, Engineering - DTS Ward(s) Involved: Wards 1 and 6 Date of Report: March 24, 2006 Report No.: DTS -06 -066 Subject: FUNDING IMPLICATIONS - TENDER T06 -011 ROAD RECONSTRUCTION KING STREET EAST (STIRLING AVE. TO MADISON AVE.) MADISON AVENUE (KING ST. E. TO WEBER ST. E.) RECOMMENDATION: That $455,218 be transferred from Index Code 852420 - Uncommitted Infrastructure to Index Code 852415 — King Street East — Madison Avenue to Stirling Avenue and Madision Avenue North — King Street East to Weber Street East. BACKGROUND: The existing infrastructure on King Street East and Madison Avenue North has reached the end of its service life and is in need of replacement. The road structure, curbing and sidewalks are beyond regular maintenance and should be replaced at this time. In addition, this portion of King Street East falls within the Mixed Use Corridor and as such, appropriate streetscaping is proposed for such a corridor. Tender T06 -011 was advertised publicly for a minimum of two and a half weeks in The KW Record, The Daily Commercial News, the City of Kitchener web site and through the Ontario Public Buyers Electronic Tendering Information System. Four (4) tenders were received by the closing date of Thursday, March 231h, 2006 with the low tender exceeding the construction budget by $529,135.47. REPORT: The Tender was advertised publicly for a minimum of two and a half weeks in The KW Record, The Daily Commercial News, the City of Kitchener web site and through the Ontario Public Buyers Electronic Tendering Information System. Eleven (11) potential bidders picked up tender documents, and by the closing date of Thursday, March 23t ", 2006, four (4) tenders were received with the low tender exceeding the construction budget by $529,135.47. The tenders were reviewed by D. Lindner, MTE Consultants Inc., the City's Consultants for the project, and C. Curtis, Senior Project Manager, Engineering Infrastructure. The tender price exceeded the consultant's initial estimate by approximately 21%. This is in part due to the streetscaping included to incorporate design elements of the Mixed Use Corridor. In addition, in reviewing this tender and other tenders released in 2006, we are observing a significant increase in cost directly related to the increase in fuel costs. While this was not unanticipated, Engineering are finding that this increase is greater than previously expected. Construction for this project is anticipated to take approximately 100 working days and is anticipated to have a construction start date of April 10th, 2006. FINANCIAL IMPLICATIONS: Funding will be transferred from index code 852420 — Uncommitted Infrastructure to index code 852415 King St E — Madison to Stirling and Madison Ave N — King St E to Weber St E. in the amount of $455,218. Index code 852420 has a current balance of $2,694,490 and following transfer of funds will have a balance of 2,239,272. CONCLUSION: It is the recommendation of DTS Engineering Services that $455,218 be transferred from index code 852420 — Uncommitted Infrastructure to index code 852415 —King Street East — Stirling Avenue to Madison Avenue and Madison Avenue North —King Street East to Weber Street East in order to proceed with the reconstruction in 2006. Carrie Curtis, P. Eng. Rob Shamess, P. Eng. Senior Project Manager, Engineering Infrastructure Director, Engineering