HomeMy WebLinkAboutDTS-06-067 - Funding Implications - Tender 06-005, Road Reconstruction, Homewood AveJ
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6 REPORT
Report To: Mayor Carl Zehr and Members of Council
Date of Meeting: April 3, 2006
Submitted By: Robert Shamess, P.Eng., Director of Engineering Services
Prepared By: Steve Allen, P. Eng., Design and Construction Engineer
Ward(s) Involved: 6 — West Victoria Park
Date of Report: March 24, 2006
Report No.: DTS -06 -067
Subject: FUNDING IMPLICATIONS — TENDER 06 -005
ROAD RECONSTRUCTION
HOMEWOOD AVENUE (QUEEN TO WEST)
RECOMMENDATION:
That Council approve the transfer of $155,978.51 from Index #852420 — "Uncommitted
Infrastructure" to Index #852414 — "Homewood — Queen to West" to fund the anticipated
project deficit.
BACKGROUND:
The reconstruction of Homewood Avenue has been identified as a priority for a full
reconstruction and has been budgeted for the 2006 construction season. The existing
infrastructure, particularly the sanitary sewer have reached the end of its service life and require
full replacement.
Tender T06 -005 was advertised publicly in March 2006 and the closing date for tender
submission was March 16, 2006. Four tenders were received and the lowest tender was
submitted by J. Weber Contracting Ltd. at a price of $1,305,978.51. Including construction,
overall anticipated project costs by $155,978.51.
REPORT:
Tender T06 -005 was advertised publicly in March 2006 and the closing date for tender
submission was March 16, 2006. There were four submitted tenders and they were reviewed
by Steve Allen, Design and Construction Engineer, Engineering Infrastructure. The lowest
tender was submitted by J. Weber Contracting Ltd. at a price of $1,305,978.51. Including
construction, overall anticipated project costs exceed budgeted amounts by $155,978.51.
The projected deficit can be attributed in part to the unexpected discovery of contaminated
material in the Homewood Avenue right -of -way during the geotechnical phase of the project.
Information available at the time of budget preparation did not suggest the presence of coal -tar
contamination on Homewood Avenue. A full geotechnical investigation was undertaken in
December of 2005 and indicated the presence of coal -tar like substances under the asphalt.
Subsequent analysis confirmed that the level of total petroleum hydrocarbons ( "TPH ") in areas
of the Homewood Avenue right -of -way exceed MOE criteria. The removal of the contaminated
material was included as part of the scope of work for this tender.
In addition, after review of this tender and other tenders released in 2006, we are observing a
significant increase in costs directly related to the increase in fuel costs. While this was not
unanticipated, Engineering are finding that this increase is greater than previously expected.
FINANCIAL IMPLICATIONS:
Funding will be transferred from index code 852420 — "Uncommitted Infrastructure" to index
code 852414 — "Homewood — Queen to West" in the amount of 155,978.51. Index code 852420
has a current balance of $2,239,272.00 and following the transfer of funds will have a balance of
$2,083,293.49.
CONCLUSION:
It is the recommendation of DTS Engineering Services that 155,978.51 be transferred from
index code 852420 — "Uncommitted Infrastructure" to index code 852414 — "Homewood —
Queen to West" in order to proceed with the planned reconstruction in 2006.
Steve Allen, P. Eng.
Design and Construction Engineer
Rob Shamess, P. Eng.
Director, Engineering Services