HomeMy WebLinkAboutOES 06-11
Cif Report To
Executive Committee
PICKERING Report Number:.OES 06-11
281 Date: January 10, 2011
From: Everett Buntsma
Director, Operations & Emergency Services
Subject: Additional Costs for Tender T-11-2010
Full Depth Asphalt Removal and Replacement on William Street
- File: A-1440
Recommendation:
1. That Report OES 06-11 of the Director, Operations & Emergency Services
regarding additional costs for Tender T-11-2010 for full depth asphalt removal
and replacement on William be received;
2. That additional costs in the amount of $45,467 plus HST over the original tender
amount for the William Street component of T-11-2010 resulting in a revised
tender amount of $129,539 be approved;
3. That the revised total net project cost for William Street be increased by $37,945
to $133,345; and
4. That Council authorize the Director, Corporate Services & Treasurer to finance
the additional net project costs of $37,945 as follows:
a. That the sum of $34,600 be funded from the Move Ontario Tax Grant, as
provided for in the 2010 approved Roads Capital Budget for William
Street.
b. That the additional sum of $3,345 be funded from the Move Ontario Tax
Grant
5. That the appropriate City of Pickering officials be authorized to take necessary
action to give effect thereto.
Executive Summary: As part of the 2010 Roads Capital Budget, full depth asphalt
replacement on William Street was approved as a construction project. Tender T-11-
2010 was awarded to the low bidder Four Seasons Site Development Limited through
the approval of Report OES 17-10 in July 2010, and subsequently Purchase Order
200486. Due to underlying granular base conditions and high water table on William
Street, additional costs were incurred during construction in order to complete the
project in a timely and acceptable manner.
i
Report OES 06-11 January 10, 2011
Subject: Additional Costs for Tender T-11-2010 282
Full Depth Asphalt Removal and Replacement on William Street
Page 2
In order to offset some of the additional costs, the scope of the project was revised to
defer the placement of top asphalt. Top asphalt and a contingency for base asphalt
repairs will be recommended in the 2011 Capital Budget in order to complete the
project.
Due to the deferral of the top asphalt component, the amount spent within the original
tender of $84,072 plus HST was reduced to $67,288 plus HST. However, contract
change orders in the amount of $62,251 plus HST resulted in a total revised tender
amount of $129,539 plus HST. It is recommended that the additional tender amount of
$45,467 be approved. After adjusting for the provision of the project contingency
identified in Report to Council OES-17-10, and net of HST rebate, the additional net
project cost is $37,945 and results in a revised net project cost of $133,345.
In accordance with Section 11 of the City's Financial Control Policy, the Chief
Administrative Officer, Department Head and Treasurer may jointly approve changes to
authorized expenditure amounts provided that the total amount of the over expenditure
does not exceed the lesser of 10% of the approved capital expenditure or $100,000.
Council approval is required for William Street as the over expenditure exceeds 10 per
cent.
Financial Implications: The following is a breakdown of the project costs related to
William Street as reported in Report to Council OES 17-10:
Tender T-11-2010 $84,072
Contingency 8,161
Other Associated costs 1,517
Total $93,750
HST(1.76%) net cost to City 1,650
Total Costs to Ci A roved Funds $95,400
CORP0227-07/01 revised
Report OES 06-11 January 10, 2011
283
Subject: Additional Costs for Tender T-11-2010
Full Depth Asphalt Removal and Replacement on William Street
Page 3
The following is a breakdown of the actual project costs:
Costs within T-11-2010 $67,288
Approved Change Order #2 36,189
Approved Change Order #3 26,062
Total Revised Contract Costs $129,539
T-11-2010
Other Associated cost 1,500
Total Costs $131,039
HST (13%) 17,035
Gross Project Costs $148,074
HST Rebate (11.24%) (14,729)
Net Project Costs to City $133,345
Net Project Costs (over) funds approved ($37,945)
under OES 17-10
The following is a breakdown of the required funding:
Approved Funds as indicated in OES17-10 $95,400
Funds Approved in 2010 Capital Budget 34,600
indicated as not required as per OES 17-10
Additional Funds required 3.345
Total Funds $133,345
Sustainability Implications: The original intent of the project included improving
roadway geometrics, improving vehicular flow and reducing maintenance costs has still
been met in spite of the additional costs related to the underlying granular base
conditions. Completing the project in the manner undertaken still considered
sustainable practices as only the unacceptable material was removed and replaced
compared to a complete reconstruction.
Background: As part of the 2010 Roads Capital Budget, full depth asphalt
removal and replacement for William Street was approved as a construction project.
Tender T-11-2010 was awarded to the low bidder, Four Seasons Site Development
Limited through approval of Report to Council OES 17-10 and the issuance of Purchase
Order 200486.
CORP0227-07/01 revised
Report OES 06-11 January 10, 2011
Subject: Additional Costs for Tender T-11-2010 284
Full Depth Asphalt Removal and Replacement on William Street
Page 4
During construction, after the full depth removal of the asphalt, underlying wet
conditions of the granular base prevented sufficient compaction. As water was
punching to the"surface, it was decided that full depth sub-excavation of the granular
material as many locations was required. The work was undertaken under the guidance
of the City's geotechnical consultant for this project. A recommendation to install
subdrains to continuously drain the granular base was accepted and undertaken. Due
to these conditions, the placement of top asphalt has been deferred and was not
completed under the contract.
When the 2010 Capital Budget was approved, the amount approved for William Street
was $130,000. The project was to be funded by the Move Ontario Tax Grant. When
Report OES 17-10 was approved by Council, the project cost was reduced to $95,400
based on the tender results. The project cost included a contingency of $8,161 and
other associated costs of $1,517. The revised project cost has been exceeded due to
the required change orders.
Two contract change orders were required in order to recognize the additional work and
change in scope. The original tender amount of $84,072 plus HST was not fully
incurred due to the deferral of the top asphalt component. The amount spent within the
tender was $67,288 plus HST. Contract change orders resulted in additional costs of
$62,251 plus HST. The total revised contract cost for William Street is $129,539 plus
HST.
In accordance with the approved City Financial Control Policy, over expenditures that
exceed 10% of the approved capital expenditure requires Council approval. Although
the additional costs have been incurred, as construction could not be halted, approval is
being sought so that the additional costs can be invoiced and paid. Due to the recent
recess of Council, this is the earliest opportunity for Council to accept and approve of
the over expenditure.
It is recommended that the additional cost required for this project be funded from the
Move Ontario Tax Grant originally allocated to this project in the 2010 Capital Budget,
as well as an additional amount of $3,345 from the same source.
In order to complete the top asphalt component of William Street, staff will recommend
the required funds in the 2011 Roads Capital Budget.
Attachments:
Not Applicable
CORP0227-07/01 revised
Reap ..rt OES 06-11 January 10, 2011
Subject: Additional Costs for Tender T-11-2010
Full Depth Asphalt Removal and Replacement on William Street ,
Page 5
Prepared By: Approved/Endorsed By:
Riche d W. Hol orn, P. Eng Everett Bun a
Div'~ion Head Director
EZineering Services Operations & Emergency Services
Caryn Kong, CGA Gillis Paterson,
Senior Financial Analyst Director
Capital & Debt Management Corporate Services & Treasurer
RH:ds
Copy: Chief Administrative Officer
Recommended for the consideration
of Pickering Ci Council
. J-G~,ZdlC/
l1~ 7
Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised