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HomeMy WebLinkAboutENG 13-20Report to Council Report Number: ENG 13-20 Date: November 23, 2020 From: Richard Holborn Director, Engineering Services Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road - File: A-1440 Recommendation: 1. That Council approve the hiring of AECOM Canada Ltd. for the Detailed Design Services of the new Highway 401 road crossing to connect Notion Road to Squires Beach Road in accordance with Purchasing Policy 10.03 (c) as the assignment has a value above $50,000.00 and a competitive process is not being followed, and is therefore subject to the additional approval of Council; 2. That the fee proposal dated November 6, 2020 submitted by AECOM Canada Ltd. for the Detailed Design Services for the new Highway 401 road crossing to connect Notion Road to Squires Beach Road in the amount of $3,284,320.14 (HST included) excluding provisional items be accepted; 3. That the total gross project cost $3,862,677.00 (HST included), including the proposal amount and other associated costs, and the total net project cost of $3,478,460.00 (net of HST rebate) be accepted; 4. That the Director, Finance & Treasurer be authorized to finance the estimated net project cost of $3,478,460.00 as follows: a) The sum of $1,000,000.00 as approved in the 2020 Development Projects (DC Funded) Capital Budget to be funded from a Third Party Contribution be increased to $1,391,384.00; b) The sum of $500,000.00 as approved in the 2020 Development Project s (DC Funded) Capital Budget to be funded from the DC Transportation Services Reserve Fund be increased to $1,600,092.00; c) The sum of $500,000.00 as approved in the 2020 Development Projects (DC Funded) Capital Budget to be funded from the Roads & Bridges Reserve Fund be revised to an Internal Loan in the amount of $486,000.00 for a term not exceeding two years, and the balance sum of $984.00 from property taxes; 5. That award of the proposal to AECOM Canada Ltd. be subject to the City of Pickering and Pickering Developments Inc. entering into a cost sharing agreement with respect to funding of the project; ENG 13-20 November 23, 2020 Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Page 2 6. That the appropriate City staff be authorized to execute a Professional Services Agreement between the City of Pickering and AECOM Canada Ltd. in a form satisfactory to the Director, Corporate Services & City Solicitor and Director, Finance & Treasurer; 7. That AECOM Canada Ltd. be approved, in principle, to provide construction administration services required to monitor and execute the construction contract with the approved contractor when a tender has been awarded, subject to review and acceptance of the scope of work and associated fee at that time; and, 8. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The Municipal Class Environmental Assessment (MCEA) for the New Highway 401 Road Crossing from Notion Road to Squires Beach Road was undertaken by the City of Pickering and Pickering Developments Inc. as co-proponents. AECOM Canada Ltd. was retained by Pickering Developments Inc. to complete the MCEA. The project received approval from the Minister of the Environment, Conservation and Parks on February 25, 2020. The Environmental Study Report satisfied Phases 1 through 4 of the MCEA process, and the co-proponents may now proceed to Phase 5 which is design and construction. A proposal for detailed design requested from AECOM Canada Ltd. includes a work plan and fee estimate to provide these services. Due to the complexity of the assignment, and the number of major stakeholders involved, it is anticipated that detailed design will take up to 24 months to complete. The proposal from AECOM Canada Ltd. dated November 6, 2020 in the amount of $3,284,320.14 (HST included) has been reviewed by the co-proponent project team, and the work plan, deliverables, schedule and fee are deemed acceptable. In accordance with City Purchasing Policy section 10.03 (c) awarding the assignment requires Council approval. Financial Implications: 1. Proposal Amount Proposal from AECOM Canada Ltd. dated November 6, 2020 Notion Road/Squires Beach Road/Highway 401 Crossing Detailed Design (excludes provisional items) $2,906,478.00 HST (13%) 377,842.14 Total $3,284,320.14 ENG 13-20 November 23, 2020 Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Page 3 2. Estimated Project Costing Summary Proposal $2,906,478.00 Associated Costs Contingency (5%) Provisional Items (identified in the proposal) Various Agency Fees (permits, approvals, etc.) 145,324.00 316,496.00 50,000.00 Sub Total – Costs $3,418,298.00 HST (13%) 444,379.00 Total Gross Project Cost $3,862,677.00 HST Rebate (11.24%) ($384,217.00) Total Net Project Cost $3,478,460.00 3. Approved Source of Funds – 2020 Development Projects (DC Funded) Capital Budget Account Source of Funds Available Budget Required 5321.2002.6230 Third Party Contribution Development Charges – Transportation Services Reserve Fund Roads & Bridges Reserve Fund Internal Loan – 2 years Property Taxes $1,000,000.00 500,000.00 500,000.00 0.00 0.00 $1,391,384.00 1,600,092.00 0.00 486,000.00 984.00 Total $2,000,000.00 $3,478,460.00 Net project costs (over) under approved funds ($1,478,460.00) When the 2020 Capital Budget was being prepared, a detailed scope of work and estimated cost for the detailed design was not known. An amount that was considered reasonable at the time was recommended for approval. The proposal dated November 6, 2020 from AECOM Canada Ltd. contains a detailed breakdown of estimated costs by task and work activities, which represents a true reflection of the complexities and constraints inherent in this type of assignment. The funding allocations, including cost sharing with a third party (Pickering Developments Inc.), was also estimated at the time of budget preparation. Since that time, the City has retained Watson & Associates to prepare the 2020 Development Charges Update Study to capture this project and determine the benefit to existing (BTE)/non-growth share. The cost sharing agreement with Pickering Developments Inc. will reflect their responsibility to contribute 40 per cent of the total project costs which include, but are not limited to, land acquisition, design, u tility relocation, construction, construction administration and inspection, and ancillary costs, which represents the BTE/non-growth share of the projects costs. ENG 13-20 November 23, 2020 Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Page 4 The revised funding allocations indicated in the chart above reflects the calculations in the proposed 2020 Development Charges Update Study and the proposed cost sharing agreement with Pickering Developments Inc. to fund the total net project cost. Internal Loan financing is used as a temporary source to reflect the post period benefit costs. These costs will be included in the next Development Charges Study that is forecasted to be completed by June 2022. Discussion: The Municipal Class Environmental Assessment (MCEA) for the New Highway 401 Road Crossing from Notion Road to Squires Beach Road was undertaken by the City of Pickering and Pickering Developments Inc. as co-proponents. The aim of the project was to provide improved road network connectivity, capacity and active transportation to support continued growth in the City of Pickering and to bring relief to the existing road infrastructure. The project also supports the development of lands located south of Highway 401 and the rail corridor including Durham Live. AECOM Canada Ltd. was retained by Pickering Developments Inc. to complete the Municipal Class Environmental Assessment (MCEA). The Notice of Completion of the Environmental Study Report (ESR) was filed on October 18, 2019 and the project received approval from the Minister of the Environment, Conservation and Parks on February 25, 2020 after a Part II Order was requested. The ESR satisfied Phases 1 through 4 of the MCEA process, namely:  Phase 1 – Problem or Opportunity  Phase 2 – Alternative Solutions  Phase 3 – Alternative Design Concepts for the Preferred Solution  Phase 4 – Environmental Study Report Upon approval of the MCEA, the co-proponents may proceed to Phase 5 which is Design and Construction. In order to accelerate the detailed design required to construct the project, the co-proponents contacted AECOM Canada Ltd. to request they submit a proposal to undertake the necessary work. As AECOM Canada Ltd. satisfactorily completed the MCEA and have substantial knowledge of the project and the background information that lead to the preferred design concept they are the logical choice. The proposal dated November 6, 2020 includes a work plan and fee estimate to provide these services. The detailed design will be based on the MCEA approved design plan. Generally speaking, the scope of work includes detailed design of:  widening of Notion Road to a three-lane cross-section from Kingston Road to Pickering Parkway, including modifications at the Kingston Road/Notion Road intersection;  widening of Squires Beach Road to a three-lane cross-section from (former) Kellino Street to Bayly Street, including modifications at the Bayly Street/Squires Beach intersection; ENG 13-20 November 23, 2020 Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Page 5  new four-lane roadway and bridge crossing Highway 401, Metrolinx railway and CN railway, and connecting the Notion Road/Pickering Parkway and Squires Beach Road/(former) Kellino Street intersections; and,  (former) Kellino Street re-profiling, Pickering Parkway realignment, a new cul-de-sac at the existing south end of Notion Road to maintain access to existing properties, and for all existing entrances. The scope of work also includes electrical design, landscape architecture services, geotechnical investigations, utility relocation coordination, stormwater management, coordination of permit applications, preparation of contract drawings, specifications and tender pa ckage, and preparation of the construction estimate. AECOM Canada Ltd. have noted potential provisional items as part of the work plan that may be required to complete the detailed design assignment. These provisional items are not included in the initial award to AECOM Canada Ltd. but are carried in the total net project cost as other associated costs. Should any of these items be required, they will be added to the Purchase Order. Due to the complexity of the assignment, and the number of major stakeholders involved, it is anticipated that detailed design will take up to 24 months to complete. The proposal from AECOM Canada Ltd. dated November 6, 2020 has been reviewed by the co- proponent project team, and the work plan, deliverables, schedule and fee are deemed acceptable. Although the proposal does not include construction administration services, including inspection, payment certificate preparation, and construction certification, it is recommended that AECOM Canada Ltd. be approved in principle to provide these services, subject to acceptance of a further proposal outlining the scope of work and associated fee. In accordance with City Purchasing Policy section 10.03 (c), where a competitive process is not followed, the Director initiating the assignment shall require Council approval to engage the services of a particular consultant. The Director, Engineering Services is recommending Council approval to retain AECOM Canada Ltd. for this assignment. The initial project award will consist of tasks related to detailed design services as outlined in AECOM Canada Ltd.’s proposal dated November 6, 2020. Attachments: 1. Location Map ENG 13-20 November 23, 2020 Subject: Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Page 6 RH:mjh Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. . Interim Chief Administra · Prepared/Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA Dire r, Finance & Treasurer orate Services & City Solicitor !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!BAYLY STREET HIGHWAY 4 0 1 KINGS T O N R O A D NOTION ROADBROCK ROADPICKERING PARKWAY FINCH AVENUE SQUIRES BEACH ROADSALK ROADTOY AVENUEMARSHCOURT DRIVEROYAL ROADDENMAR ROADBAINBRIDGE DRIVESOUTHVIEW DRIVETRIBRO STUDIOS AVENUE PLUMMER STREET ASHFORD DRIVEBURNSIDE DRIVEKINGSTON ROAD W D u f f i n s C r e e k West Duffi n s Cr e e k 1:10,000 SCALE: Engineering Services Department Location Map New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Nov. 13, 2020 DATE: q TOWNOFAJAX SUBJECTAREA Attachment #1 to Report #ENG13-20