HomeMy WebLinkAboutOES 19-08
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REPORT TO
COUNCIL
Report Number: OES 19-08
Date: July 14, ~908 -;,,; ')
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From:
Everett Buntsma
Director, Operations & Emergency Services
Subject:
Tender T-4-2008
Tender for City Road Reconstruction and Storm Sewer Works
Region Water and Sanitary Sewer Works
Sheppard Avenue (Altona Road to Rosebank Road)
File: A-1440
Recommendations:
1. That Report OES-19-08 regarding the City Road Reconstruction and Storm
Sewer Works, Region Water and Sanitary Sewer Works (Sheppard Avenue,
Altona Road to Rosebank Road) be received;
2. That Tender T-4-2008 submitted by Dagmar Construction Inc. for the City Road
Reconstruction and Storm Sewer Works, Region Water and Sanitary Sewer
Works at a cost of $2,491 ,737.69 (GST included) be accepted;
3. That the total gross project cost of $2,684,937 (GST included) including the
tender amount, the Region of Durham's portion and other associated costs and
the total net project cost of $2,557,083 be approved;
4. That Council authorize the Director, Corporate Services & Treasurer to finance
the project as follows:
a) that the sum of $1,295,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years, at
a rate to be determined;
b) that the sum of $279,000 be funded from the Development Charges Reserve
Fund;
c) that the sum of $100,000 be funded from the Provincial Budget Grant;
d) that the sum of $882,467 be funded by the Regional Municipality of Durham;
e) that the balance of $616 be funded from the 2008 Current Budget;
Report OES 19-08
July 14, 2008
Subject: Tender T-4-2008
Tender for City Road Reconstruction and Storm Sewer Works
Region Water and Sanitary Sewer Works
:S5:3 - Sheppard Avenue (Altona Road to Rosebank Road) Page 2
f) that the annual repayment charges in the amount of approximately $167,710 be
included in the annual Current Budget for the City of Pickering commencing in
2009, continuing thereafter until the loan is repaid, and any financing cost to be
paid out of the Current Budget;
g) the Director, Corporate Services & Treasurer has updated the City's 2008
Annual Repayment Limit and certified that this loan and the repayment thereof
falls within the City's Annual Repayment Limit (L imit) for debt and financial
obligations, as established by the Province for municipalities in Ontario, and
would not cause the City to exceed the updated Limit, and therefore, Ontario
Municipal Board approval is not required prior to City Council's authorization;
h) the Treasurer is authorized to take any actions necessary in order to effect the
foregoing; and
5. That the appropriate City of Pickering officials be authorized to take necessary
action to give effect thereto.
Executive Summary: As part of the 2008 Development Projects Capital Budget,
Sheppard Avenue, Road Reconstruction and Storm Sewer Works was approved as a
construction project. Tender T-4-2008 was issued on Friday, June 2, 2008 and closed
on Wednesday, June 25, 2008 with four (4) bidders responding. This project also
includes Region of Durham water and sanitary sewer works. The total net project cost
is estimated to be $2,557,083 with the portion related to the Region to be recovered
from the Region of Durham in the amount of $882,467 and an estimated net cost to the
City of $1 ,674,616 (net of GST rebate).
The City's purchasing policy requires staff to report to Council on results of the tender
and financing in order to proceed with this project in a timely manner.
Financial Implications:
1.
TENDER AMOUNT
T-4-2008
GST
Sub-Total
GST Rebate
Total
2.
$2,373,083.51
11 8,654. 18
2,491,737.69
(118,654.18)
$2,373,083.51
Report OES 19-08
July 14, 2008
Subject: Tender T-4-2008
- Tender for City Road Reconstruction and Storm Sewer Works
Region Water and Sanitary Sewer Works
Sheppard Avenue (Altona Road to Rosebank Road)
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Page 3
2.
APPROVED SOURCE OF FUNDS
Roads Ca ital Bud et
Location Project Code
Sheppard Ave. 5321.0812.1702
Sheppard Ave. 5321.0812.7610
Source of Funds
Debt (10 Year)
DC Roads & Related
FUNDS AVAILABLE
Budqet
1,271,000
279,000
1,550,000
Required
1,271,000
279,000
1,550,000
3.
ADDITIONAL FUNDS REQUIRED
Regional Municipality of Durham
$882,467
City's Share
Provincial Budget Grant - 2008 Roads Budget
$100,000
Debt (10- Year)
24,000
Current Funds
616
Total Additional Funds
$124,616
$2,557,083
Total Funds Available
4.
ESTIMATED PROJECT COSTING SUMMARY
T-4-2008 - Tender for City Road Reconstruction and Storm
Sewer Works
I Region Water and Sanitary Sewer Works
City of Pickerin~ Portion
Section 1, City Excavation, Removals, Storm Sewer and
Road Building
Section 2, Retaining Walls
Sub Total City of Pickering Portion
Re~ion of Durham Portion
Section 3, Water and Sanitary Sewer Works
I Total T-4-2008
$1,359,568
131,048
$1,490,616
882,467
$2,373,0831
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Rep_?~ 9.ES 19-08 July 14, 2008
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Subject: Tender T-4-2008
- Tender for City Road Reconstruction and Storm Sewer Works
Region Water and Sanitary Sewer Works
Sheppard Avenue (Altona Road to Rosebank Road) Page 4
Associated Costs
Materials Testing
Utility Relocations
Consultant Fees
Miscellaneous Costs
Construction Contingency
I Total
GST
25,000
40,000
12,000
7,000
100,000
$2,557,083
127,854
$2,684,937
Total Gross Project Cost
GST Rebate
(127,854)
$2,557,083
Total Net Project Cost
The total estimated net project cost has exceeded the approved budget for this project
by $124,616 due to current market conditions and inclusion of the sidewalk on the north
side of Sheppard Avenue which was a provisional item. As a result additional financing
is required for this project. The portion pertaining to the Region Water and Sanitary
Sewer Works will be reimbursed by the Regional Municipality of Durham in the amount
of $882,467. The estimated overage of $124,616 will be funded from the Provincial
Budget Grant in the amount of $100,000, further explained below, and additional debt
financing in the amount of $24,000 will be required. The balance of $616 will be funded
from Current Funds.
In the 2008 Roads Capital budget, the placement of surface treatment on Sideline 16
from Regional Road #5 to the north limit (5320.0809), Sideline 16 from Dutchmaster
Nursery to Seventh Concession Road (5320.0810) and Paddock Road from Highway 7
to Seventh Concession Road (5320.0811) were combined under one tender, T-7-2008,
with an estimated total net project cost of $775,448. The combined approved budget
for these three projects is $885,000 resulting in funds available of $109,552. All three
of these projects are to be funded from the Provincial Budget Grant. $100,000 of these
funds will be transferred to assist in meeting the shortfall on the Sheppard Avenue
Road Reconstruction as the purpose of the Provincial Budget grant was to fund
municipal road and bridge capital investment needs and this project meets the eligibility
requirements.
It will be necessary for the City to approve additional debt financing in the amount of
$24,000 for a total debt commitment of $1,295,000. The additional debt request of
$24,000 would require additional annual debt charges of approximately $3,100 for the
next ten years bringing a total combined financing cost increase of $31 ,000.
Report OES 19-08
July 14, 2008
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Subject: Tender T-4-2008 ,~) ,ij ()
Tender for City Road Reconstruction and Storm Sewer Works
Region Water and Sanitary Sewer Works
Sheppard Avenue (Altona Road to Rosebank Road) Page 5
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditures contained in this report and concurs.
Sustainability Implications: This will allow for the urbanization of the roadway
improving the geometrics and vehicular flows in this area. It will also provide for the
necessary platform width required to construct concrete sidewalks for the safe and
efficient passage for pedestrians in the area.
Background: As part of the Development Projects Capital 2008 Budget,
Sheppard Avenue, Road Reconstruction and Storm Sewer Works was identified as a
construction project. Tender T-4-2008 was issued on Friday, June 6, 2008 and closed
on Wednesday, June 25, 2008 with four (4) bidders responding. The total gross project
cost is estimated to be $2,684,937 for an estimated net cost to the City of $2,557,083
(net of GST rebate). The net cost includes Regional funded water and sanitary sewer
works. The net cost exceeds the approved budget due to higher market conditions for
construction because of fuel and asphalt costs and the inclusion of the sidewalk on the
north side of Sheppard Avenue that was added to the tender as a provisional item.
Dagmar Construction Inc. has previously worked for the City on Tender T-12-2006
Sandy Beach Road Bridge Replacement and is deemed acceptable by the Supervisor,
Engineering & Capital Works. The Health & Safety Policy, Confined Space Awareness
Training and list of employees trained, current WSIB Council Amendment to Draft #7
(CAD-7), Certificate of Clearance issued by Workplace Safety & Insurance Board and
Certificate of Insurance as submitted by Dagmar Construction Inc. have been reviewed
by the Coordinator, Health & Safety and deemed acceptable. In conjunction with staff's
review of the contractor's previous work experience check of references submitted and
the bonding available on this project, the tender is deemed acceptable.
Upon careful examination of all tenders and relevant documents received, the
Operations & Emergency Services Department, Municipal Property & Engineering
Division recommends the acceptance of the low bid submitted by Dagmar Construction
Inc. for Tender T-4 -2008 in the amount of $2,491,737.69 (GST included) and that the
total net project cost of $2,557,083 be approved.
This report has been prepared in conjunction with the Manager, Supply & Services who
concurs with the foregoing.
Attachments:
1 . Location Map
2. Supply & Services Memorandum dated June 26, 2008
. RepE{,rt-:0=S 19-08
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July 14, 2008
Subject: Tender T-4-2008
- Tender for City Road Reconstruction and Storm Sewer Works
Region Water and Sanitary Sewer Works
Sheppard Avenue (Altona Road to Rosebank Road) Page 6
3. Health and Safety Memorandum dated July 4, 2008
4. By-Law to authorize the City Road Reconstruction and Storm Sewer Works,
Region Water and Sanitary Works (Sheppard Avenue, Altona Road to Rosebank
Road), and the issuance of debentures in the amount of $1,295,000.
Prepared By:
Vera A. Fe emacher
C.P.P., CPPO, CPPB, C.P.M., CMM III
Manager, Supply & Services
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Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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& Emergency Services
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Gfllis A. Paterson
Director, Corporate Services & Treasurer
__06 19~o~
MUNICIPAL PROPERTY & ENGINEERING
Attachment For Tender: T-4-2008
SHEPPARD AVENUE
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LOCATION MAP
PROPOSED CONSTRUCTION INCLUDES:
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City Portion
Complete Urbanization of Sheppard Avenue which includes;
· Installation of storm sewer and service connections to property line
· Installation of a new and wiper road, complete with concrete curb and
gutter, new granular base and base asphalt
· Installation of concrete sidewalk (south side) with a provisional sidewalk
proposed for the north side
Region Portion
Replacement and extension of Regional Infrastructure which includes;
· Extending the sanitary sewer through the ravine to homes not currently
serviced
· Replacement of the existing watermain and house services to property
line, on the north side of the road
Complete boulevard restoration (fine grading and sodding where required)
. to all areas affected by construction
UMPandEIDesign Supportleap/tal Projects & SchedulinglAttachments for Tenders\2008\T-04-08 Sheppard A venue. doc
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MEM'O
To:
Richard Holborn
Division Head
Municipal Property & Engineering
June 26, 2008
RECEIVED
JUN 2 6 2008
CITY OF PICKERING
MUNICIPAL PROPERTY & ENGINEERING
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Supervisor,
Engineering & Capital Works
Subject: Tender NoT-4-2008
Sheppard Avenue - Road
Reconstruction and Storm
Sewer Works
Tenders have been received for the above project. An advertisement was placed in the Daily
Commercial News and on the City's Website. Six companies picked up a tendering package
for a non-refundable fee of $100.00. Two addenda were issued. Four {4} bidders submitted a
tender for this project and one bidder is unable to bid.
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 10.03 (r) provides checking tendered unit
prices and extensions; unit prices shall govern and extensions will be corrected accordingly,
which has been done.
All deposits other than the low three bidders may be returned to the applicable bidders as
provided for by Purchasing Procedure No. PUR 010-001, Item 10.03(w). However, all four
bids have been retained and copies are attached for evaluation.
SUMMARY
PST/GST INCLUDED
COMPANY NAME TOT AL TENDERED AFTER CALCULATION
AMOUNT CHECK
Dagmar Construction Limited $2,491,737.69 $2,491,737.69
Ron Robinson Limited $2,977,816.09 $2,977,816.09
Hard Co Construction Limited $2,977,846.20 $2,977,184.70
Elirpa Construction & Materials $3,769,955.69 $3,769,953.79
Montgomery MacEwan W"JABLE TO BID
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340
Extensions have been checked and Dagmar Construction appears to be low bidder
Advise of as soon as possible if we are to proceed to request Health & Safety documentation of
the low bidder, pursuant to Information to Bidders Items 22 and 24, for review during the
evaluation phase of this tender call.
(a) proof of compliance with amended Confined Space Entry Regulations (September 30, 2006).
Copies of certified Training and Procedures to be used on this project;
(b) a list of employees trained in the confined space entry procedure who will be working on this
project;
(c) a copy of the Health & Safety Policy to be used on this project;
(d) a copy of the current Workplace Injury Summary Report issued by Workplace Safety &
Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of
the current CAD 7, NEER, or MAP reports may be submitted);
(e) a copy of the current Certificate of Clearance issued by Workplace Safety & Insurance
Board;
(f) the City's certificate of insurance sha!1 be completed by the bidder's agent, broker or
insurer;
(g) Waste Management Plan, (IB - Item 24}.
Please provide your recommendation in memo form along with your approval.
Please do not disclose any information to enquiries. Bidders will be advised of the outcome in
due course. If you require further information, please feel free to contact me.
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Vera A. elgemacher
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Enclosures
June 26, 2008
T-4-2008 Sheppard Avenue
Page 2
CITY OF PICKERING
RECORD OF TENDERS OPENED AND CHECKED
Tender Description:
Tender for Sheppard Avenue Road Reconstruction, Storm Sewer Works, Watermain Replacement
and Sanitary Sewer Works
Tender No. T -4-2008
Date: Wednesday, June 25, 2008
Time: Approx.2:15pm
BIDDER COMPANY NAME BID DEPOSIT AGREEMENT ADDENDA TOTAL TENDERED AMOUNT BIDDER'S SIGN IN COMMENTS
TO BOND ACKNKOWLEDGED
,p vi' /~2 tc -Sd 977 !fIt.>. 09 .//1/
Ron Robinson Limited /O/D
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Daqmar Construction Inc. /D ()
Hard-Co Construction Ltd. /o~ V /tlZ ~ ctt .2, Cj 7 7 J [j Lj ro .. .20 / I
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MEMO
To:
June Karas
Buyer
July 4, 2008
From: Michelle Montgomery
Coordinator, Health & Safety
Copy: Subject: City Road Reconstruction
and Storm Sewer Works
Dagmar Construction
As requested I have reviewed the following documents submitted by the above prospective
contractor:
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. Health and Safety Regulations -o8JAN07 :(0 / )
· Confined Space Awareness Training-07MAR06(RecertificatiorvCompleted prior to I ".:IA.
commencement of City Road Reconstruction and Storm Sewer Works) lC;;:- I 7
· CAD-7 Calculations as of 15SEP07 7 /
· WSIB Clearance Certificate 13JUN08
· Certificate of Insurance -Commercial General Liability Expiry OlJAN09
-Automobile Liability Insurance Expiry OlJAN09
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From a Health & Safety perspective, these documents are acceptable.
If you have any questions or concerns, please contact me directly at ext. 4645.
Attachments:
RECEIVED
CITY OF PICKERING
JUL 7 2008
SUPPLY AND SERVICES
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2.
THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO.
Being a by-law to authorize the City Road
Reconstruction and Storm Sewer Works,
Region Water and Sanitary Sewer Works
(Sheppard Avenue, Altona Road to
Rosebank Road), in the City of Pickering
and the issuance of debentures therefore in
the amount of $1 ,295,000.
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 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 construction to proceed in respect of the City
Road Reconstruction and Storm Sewer Works, Region Water and Sanitary Sewer
Works (Sheppard Avenue, Altona Road to Rosebank Road), project; and,
WHEREAS before authorizing the construction to proceed in respect of the City Road
Reconstruction and Storm Sewer Works, Region Water and Sanitary Sewer Works
(Sheppard Avenue, Altona Road to Rosebank Road), project on the date hereof 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,
By-law No.
,.~ i.1 REPOlfUt O€.s fCl-o <t
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Page 2
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AND WHEREAS after determining that Ontario Municipal Board approval is not
required, the Council of the City approved Report OES 19-08 on the date hereof and
awarded Tender T-4-2008 for the City Road Reconstruction and Storm Sewer Works,
Region Water and Sanitary Sewer Works(Sheppard Avenue, Altona Road to Rosebank
Road), project.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY -LAW
OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
1. That the City proceed with the construction of the project referred to as "City Road
Reconstruction and Storm Sewer Works, Region Water and Sanitary Sewer Works
(Sheppard Avenue, Altona Road to Rosebank Road)";
2. That the estimated costs of the construction in the amount of $2,557,083 be
financed as follows:
a) That the sum of $1,295,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years;
b) That the sum of $279,000 be funded from the Development Charges Reserve
Fund;
c) That the sum of $100,000 be funded from the Provincial Budget Grant;
d) That sum $882,467 be funded by the Regional Municipality of Durham;
e) That the balance of $616 be funded from the 2008 Current Budget;
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 2009 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 14th day of July, 2008.
David Ryan, Mayor
Debi A. Wilcox, City Clerk