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Home My WebLink AboutENG 15-18G!a ,( DICKERING Report to Council Report Number: ENG 15-18 Date: June 25, 2018 From: Richard Holborn Director, Engineering Services Subject: Westney Road — Road Reconstruction - Tender No T-11-2018 File: A-1440 Recommendation: 1. That Tender No. T-11-2018 — Westney Road — Road Reconstruction, as submitted by NEI Construction Corp. in the total tendered amount of $1,171,469.87 (HST included) be accepted; That the total gross project cost of $1,661,995.00 (HST included), including the tender amount and other associated costs, and the total net project cost of $1,496,678.00 (net of HST rebate) be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost of $1,496,678.00 as follows: a) the sum of $1,496,000.00 as approved in the 2016 Roads Capital Budget to be funded by the issue of debentures by The Regional Municipality of Durham over a term not to exceed 10 years; b) the sum of $678.00 to be funded by property taxes; c) the annual repayment charges in the amount of approximately $180,000.00 be included in the annual Current Budget for the City of Pickering commencing 2018, or such subsequent year in which the debenture financing is repaid, and any financing cost to be paid out of Current Budget; d) the Treasurer be authorized to make any changes, adjustments, and revisions to amounts, terms, conditions, or take any actions necessary in order to effect the foregoing; 4. That the draft by-law attached to this report be enacted; and 5. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. ENG 15-18 June 25, 2018 Subject: Westney Road — Road Reconstruction Tender No. T-11-2018 Page 2 Executive Summary: As part of Council Resolution # 227/14 and the ensuing 2016 Northern Roads Hard Surfacing Strategy endorsed by Council through Report ENG 09-16, Westney Road (from Seventh Concession Road to Eighth Concession Road) was identified as a priority for improvement. The Report identified candidate rural roads segments that are currently loose surface (gravel) and ranked in priority for hard surface (asphalt) upgrading. This section of Westney Road is the first of 8 road segment projects scheduled over a 5 year period. As part of the 2016 Roads Capital Budget; Westney Road — Road Reconstruction (from Seventh Concession Road to Eighth Concession Road) was approved as a construction project. Tender No. T-11-2018 was issued on Thursday, May 10, 2018 and closed on Wednesday, June 6, 2018 with 4 bidders responding. The low bid of $1,171,469.87 (HST included) submitted by NEI Construction Corp. is recommended for approval. The total gross project cost is estimated at $1,661,995.00 (HST included) with an estimated total net project cost of $1,496,678.00 (net of HST rebate). Financial Implications: 1. Tender Amount Tender No. T-11-2018 HST (13%) Total $1,036,699.00 $134,770.87 $1,171,469.87 2. Estimated Project Costing Summary Tender No. T-11-2018 — Tender for Westney Road — Road Reconstruction Associated Costs Topographical Surveys Geotechnical Report TRCA Permit Materials Testing Construction Inspection (Consultant — provisional) Future Top Asphalt (2019) Future Line Paint (2019) Future Materials Testing (2019) Future Steel Beam Guide Rail (2019) Project Contingency (10%) Sub Total — Costs HST (13%) Total Gross Project Cost HST Rebate (11.24%) Total Net Project Cost $1,036,699.00 $26,300.00 4,685.00 4,400.00 20,000.00 60,000.00 150,000.00 5,000.00 5,000.00 25, 000.00 133,708.00 $1,470,792.00 191,203.00 $1,661,995.00 ($165,317.00) $1,496,678.00 ENG 15-18 Subject: Westney Road — Road Reconstruction Tender No. T-11-2018 June 25, 2018 Page 3 3. Approved Source of Funds — Roads Capital Budget Expense Code 5320.1632.6250 Total Source of Funds Debt — 10 Years Property Taxes Budget Required $1,550,000.00 $1,496,000.00 0.00 678.00 $1,550,000.00 $1,496,678.00 Net project costs (over) under approved funds . $53,322.00 Discussion: Council Resolution # 227/14 directed staff to review the state of Pickering's 103 centerline km's of rural loose surfaced roads. Given that operational costs to maintain loose surface roads are approximately 4.5 times greater than comparable hard surface roads, staff were tasked with developing a plan to prioritize existing gravel roads for upgrading to asphalt, creating a suitable project schedule, and propose an annual budget to implement the plan In 2016 Council endorsed the Northern Roads Hard Surfacing Strategy through Resolution # 211/16. The Report (ENG 09-16) identifies 8 candidate rural roads segments that are currently loose surface (gravel) and have been identified for hard surface (asphalt) upgrading; 1 Westney Road Seventh Concession Road to Eighth Concession Road 2 Westney Road Eighth Concession Road to Regional Road 5 3 Sideline 14 Highway 407 to Seventh Concession Road 4 Seventh Concession Road Sideline 32 to Sideline 26 5 Seventh Concession Road Sideline 26 to Sideline 22 6 Seventh Concession Road Sideline 22 to Brock Road 7 Kinsale Road Highway 407 to Seventh Concession Road 8 Sideline 24 Highway 407 to Whitevale Road As part of the 2016 Roads Capital Budget, Westney Road — Road Reconstruction was approved as a construction project. ENG 15-18 June 25, 2018 Subject: Westney Road — Road Reconstruction Tender No. T-11-2018 Page 4 Tender No. T-11-2018 was issued on Thursday, May 10, 2018 and closed on Wednesday, June 6, 2018 with 4 bidders responding. The low bid submitted by NEI Construction Corp. is recommended for approval. The total gross project cost is estimated at $1,661,995.00 (HST included), with an estimated total net project cost of $1,496,678.00 (net of HST rebate). The total net project cost includes funding for future 2019 top works. Typically, top asphalt and ancillary finishing works are budgeted separately, however, as part of the Northern Roads Hard Surfacing Strategy, project budgets include all works required to complete the project. Since debt is being issued for this project, all project costs are being included at this time. Award to the low bidder, NEI Construction Corp., will be conditional upon receiving the City's Health & Safety form, Certificate of Insurance and Waste Management Plan and requisite approvals. Previous work experience of NEI Construction Corp. is deemed to be acceptable. Upon careful examination of all tenders and relevant documents received, the Engineering Services Department recommends acceptance of the low bid submitted by NEI Construction Corp. for Tender No. T-11-2018 in the amount of $1,171,469.87 (HST included), and that the total net project cost of $1,496,678.00 be approved. Attachments: 1. Supply & Services Memorandum dated June 7, 2018 2. Record of Tenders Opened and Checked 3. Being a by-law to authorize the Westney Road — Road Reconstruction project in the City of Pickering and the issuance of debentures in the amount of $1,496,000.00 4. Location Map 5. Council Resolution # 227/14 6. Council Resolution # 211/16 ENG 15-18 June 25, 2018 Subject: Westney Road — Road Reconstruction Tender No. T-11-2018 Page 5 Preps. ed By: r 1� Scott Booker �r Manager, Capital Projects & Infrastructure Ray RoIrigues, CPPB Manager, Supply & Services Caryn Kong, CPA, CGA Senior Financial Analyst — Capital & Debt Management RH:mjh Approved/Endorsed By: ard Holborn, P.Eng. rector, Engineering Services Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Q--I,,,,Q 191 2240/8 ATTACHMENT � TO REPORT#_. Ei4� )5`1$ of. cdood DICKERING Memo To: Richard Holborn June 7, 2018 Director, Engineering Services From: Jacqueline Charles Senior Purchasing Analyst Copy: Administrative Assistant, Engineering Services Ray Rodrigues, Manager, Supply & Services Subject: Tender No. T-11-2018 Tender for Westney Road - Road Reconstruction Closed: Wednesday, June 6, 2018 — 2:00pm File: F-5400-001 Tender No. T-11-2018 was advertised on the City's website on May 10, 2018. Four companies have submitted a bid for this project. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 13.03 (r) provides checking tendered unit prices and extensions unit prices shall govern and extensions will be corrected accordingly, which has been completed below. The unsuccessful Bidder's tendering deposit, other than a bid bond, shall be returned to the applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 13.03 (w). Three bids have been retained for review at this time and are attached. Summary Harmonized Sales Tax Included Bidder Total Tendered Amount After Calculation Check NEI Construction Corp. $ 1,171,469.87 $ 1,171,469.87 Brennan Paving & Construction Ltd. $ 1,191,706A8 $ 1,191,706.48 Grascan Construction Ltd. $ 1,356,000.00 $ 1,356,000.00 Elirpa Construction & Materials Ltd. $ 1,371,881.19 $ 1,371,881.19 Pursuant to Information to Bidders Item 26 and Tendering Specifications Item 21, the following documentation will be requested of NEI Construction Corp. for your review during the AITACHMENI 1 il.PORl:t_h Is-CD —11—of --- evaluation stage of this tender call. Please advise if Supply & Services is to proceed with collecting the following documentation: (a) A copy of the City's Health and Safety Policy form currently dated and signed; (b) A copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (c) The City's certificate of insurance or approved alternative form completed by the Bidder's agent, broker or insurer; and (d) Waste Management Plan. A budget of $1,550,000 was provided to Supply & Services for this procurement. If the recommendation to award exceeds the budgeted amount, refer to Financial Control Policy Item 11 for additional instructions. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. As such, in accordance with Purchasing Policy Item 06.11, where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the estimated total purchase price is: (c) Over $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Please include the following items in your report: 1. if Items (a) through (b) noted above are acceptable to the Co-ordinator, Health & Safety or designate, if required; 2. if Item (c) is acceptable to the Manager, Budgets & Internal Audit; 3. if the list of subcontractors is acceptable to Engineering Services; 4. if Item (d) is acceptable to Engineering Services 5. any past work experience with low bidder NEI Construction Corp. including work location; 6. without past work experience, if reference information is acceptable to Engineering Services; 7. the appropriate account number(s) to which this work is to be charged; 8. the budget amount(s) assigned thereto; 9. Treasurer's confirmation of funding; 10. related departmental approvals; and 11. related comments specific to the project. After receiving Council's approval, an approved "on-line" requisition will be required to proceed. June 7,2018 Tender No. T-11-2018 Westney Road - Road Reconstruction Page 2 A_T ACHMENT#_. _. i" ltEPOR 4 l5-13 • 1 of 3 Enquiries can be directed to the City's website for the unofficial bid results as read out at the public tender opening or to Supply & Services. Bidders will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services. JC Attachments (5) June 7, 2018 Tender No. T-11-2018 Westney Road - Road Reconstruction Page 3 . ___Oo� PICKER] NG City of Pickering Record of Tenders Opened and Checked Tender Description: Westney Road Construction Tender No.: Date: Time: T-11-2018 Wednesday, June 6, 2018 Approx. 2:15 pm Local Time Bidder Name Total Tendered Amount Bidder Sign In Comments NEI Construction Corp. $ Ii[ ? I l446 i f Brennan Paving & Construction Ltd. $ 1,1c(11 -7o6 '�� 1 � Q._,C,,� Grascan Construction Ltd $ 1,35610°acc) ,/ Elirpa Construction & Materials Ltd $ i ,3? ] , SSS (.I`C; $ City Staff Present Other The information is strictly preliminary, pending review and verification of conformance to terms, conditions and specifications. ATTACHMENT# 3 TO REPORT# f] !S ( 8 of �� The Corporation of the City of Pickering By-law No. Being a by-law to authorize the Westney Road — Road Reconstruction project in the City of Pickering and the issuance of debentures in the amount of $1,496,000.00 Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower -tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower -tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham (the "Region") has the sole authority to issue debentures for the purposes of its lower -tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City wishes to proceed with debenture financing for the Westney Road — Road Reconstruction project and;. Whereas before authorizing the construction in respect of the Westney Road — Road Reconstruction project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and therefore, Ontario Municipal Board approval is not required as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved report ENG 15-18 on the date hereof and awarded Tender No. T-11-2018 for the Westney Road — Road Reconstruction project; By-law No. ATTACHMENT# J TOREPORT# JC1 15' Page 2 Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the project referred to as "Westney Road — Road Reconstruction" 2. That the estimated costs of the project in the amount of $1,496,678.00 be financed as follows: a) the sum of $1,496,000.00 be financed by. the issue of debentures by The Regional Municipality of Durham over a term not to exceed 10 years; b) the sum of $678.00 to be funded by property taxes; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2018 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By-law passed this 25th day of June, 2018. David Ryan, Mayor Debbie Shields, City Clerk C4 o� PICKERING ATTACHMENT#_.L TOREPORT# &J is -i ._. of -L Engineering Services Department Tender No. T-11-2018 Westney Road - Road Reconstruction Project Area SUBJECT AREA Location Map - Westney Road ATTACHMENT#_ TOREPORT#_ 0 f -c3 Legislative Services Division Clerk's Office Directive Memorandum April 29, 2014 To: Richard Holborn Director, Engineering & Public Works From: Subject: Debbie Shields City Clerk Direction as per Minutes of the Meeting of City Council held on April 22, 2014 Notice of Motion Roads Council Decision Resolution #227/14 Whereas there are 166 km of roads in Pickering, north of Taunton Road. Whereas of these roads, 63 centreline km are hard surfaced and 103 centreline km are loose surfaced. Whereas the maintenance of loose surface roads requires different road maintenance equipment, materials and strategies than hard surface roads, such as regular grading, application of materials such as gravel and dust suppressant. This results in a greater operating cost for loose surface roads. The City of Pickering's 2012 annual performance measures tracking indicates that these comparable operating costs are $2,958.68/centreline km for hard surface roads and $13,983.52/centreline km for loose surface roads, excluding winter control. Operating costs for loose surface roads are approximately 4.5 times as much as hard surface roads. Whereas a number of these roads are heavily travelled and the loose surface roads are subject to greater deterioration due to rutting and weather conditions, particularly freeze and thaw, leading to poor driving conditions. Whereas in order to address the need to hard surface these roads Council and staff need to develop a plan, including prioritization of roads for hard surfacing, a timeframe, and an annual budget allocation to implement the plan. ATTACHMENT# 1.TOREPORT#. ENC'] 6--!S Subject: Directive Memorandum Apr. 29/14 Page 2 Now Therefore the Ciity of Pickering staff develop a proposed plan to hard surface or re -surface roads north of Taunton Road including hamlets. Now Therefore that the plan provide an estimate of the total capital cost and recommended forecast to accomplish this plan over the five year period 2015 to 2019, estimate the annual cost savings for road maintenance upon completion of this plan, Now Therefore staff to explore any eligible federal or provincial funding programs that may be available to assist in funding the hard surfacing of the selected roads, and that staff report back to Council with the plan Including opportunities for public input no later than the January, 2015. Please take any action deemed necessary. Debbie Shields /Ir Copy: Chief Administrative Officer ATi ACHMENT# TOREPORT# / of Legislative Services Division Clerk's Office Directive Memorandum October 19, 2016 To: Richard Holborn Director, Engineering & Public Works From: Subject: Debbie Shields City Clerk Direction as per Minutes of the Meeting of City Council held on October 17, 2016 Director, Engineering & Public Works, Report ENG 09-16 Northern Roads Hard Surfacing Strategy Council Decision Resolution #211/16 1. That the Northern Roads Hard Surfacing Strategy, identifying candidate existing loose surface roads to be upgraded to hard surface roads, from north of Taunton Road to the Uxbridge Pickering Townline, be endorsed by Council; 2. That Council consider funding for candidate roads selected for the Northern Roads Hard Surfacing Strategy through the annual budget process; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Please take any action deemed necessary. Debbie Shields 1Ir Copy: Chief Administrative Officer