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HomeMy WebLinkAboutDTS-06-173 - King St E & Madison Ave N ) c,_> KITCHENER Development & Technical Services ~ Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: Financial & Corporate Services Committee December 11 , 2006 Dave Mansell, Director of Engineering Carrie Curtis, Senior Project Manager (741-2419) Wards 1 and 6 November 20, 2006 DTS-06-173 KING STREET EAST (STIRLING AVENUE TO MADISON AVENUE) AND MADISON AVENUE NORTH (KING STREET TO WEBER STREET) RECONSTRUCTION FINANCIAL SUMMARY RECOMMENDATION: That Council approve the request for an extension to MTE Consultant Inc.'s purchase order for additional engineering expenditures due to changes in project scope for the King Street East (Madison Avenue to Stirling Avenue) and Madison Avenue North (King Street East to Weber Street East) reconstruction in the amount of $87,560. BACKGROUND: Council approved the award of engineering services to MTE Consultants Inc. in June 2005 for the King Street East (Stirling Avenue to Madison Avenue) and Madison Avenue North (King Street to Weber Street) road reconstruction. During both the design and construction elements of this project several out of scope items were requested of MTE including identification and research of potential contamination and incorporating streetscape initiatives based on recent guidelines and City documents. The construction component of the project is projected to be significantly under budget based on substantial completion to date. This reconstruction project lies in Wards 1 and 6. REPORT: MTE Consultants Inc. was awarded the consultant services assignment for King Street East (Stirling Avenue to Madison Avenue) and Madison Avenue North (King Street East to Weber Street East) in June 2005. During the initial investigation and design phase of this project it was determined that the potential for contamination along the King Street East corridor may be significant due to the presence of several former gas stations. A Phase 2 Environmental investigation was completed and to be prudent additional borehole drilling was conducted to confirm whether or not sub-surface contamination was present. In addition, it was anticipated, at the time of preparing the Terms of Reference, that the primary focus of the project would be replacement of the underground infrastructure with minimal change to the streetscape. During the review process, the project team identified the need to implement several City design guidelines provided in the Mixed Use Corridor Design Brief. This resulted in several improvements along King Street East which were supported through the public consultation process. As a result of these changes in scope, additional funding for consultant services is required. Costs for these additional elements in both design and investigation are $87,560. It should be noted that particular care was taken in developing the streetscape elements as the elements incorporated along King Street East will become the standards for future Mixed Use Corridor designs throughout the City. Construction of King Street East (Madison Avenue to Stirling Avenue) and Madison Avenue North (King Street East to Weber Street East) was substantially completed by Elgin Construction in August 2006 with a two year warranty period to follow. It is anticipated that the construction component of the project will be under budget by approximately $632,830 as a result of many significant contingency items not being required. It should be noted that MTE also completed the construction layout for this project which is normally completed by the contractor. As this work was removed from the construction contract and completed by MTE, it is considered a change in MTE's scope and requires additional funding under the consulting Purchase Order. This is included in the requested fee adjustment below. A summary of the financial implications for this project are provided in the Financial Implications Section of this report. FINANCIAL IMPLICATIONS: Budget for Construction and Engineering Cost of Construction and Engineering to date Surface Asphalt and Engineering Balance $3,470,618.00 $2,740,007.36 $ 82 800.00 $ 647,810.64 Request for extension on MTE Purchase Order Projected surplus* 87 560.00 560,250.64 *to be returned to Uncommitted (852420) Water(31 %), Sewer(46%) and Capital out of Current(23%). Carrie Curtis, P. Eng. Senior Project Manager Dave Mansell, P. Eng. Director of Engineering