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PI OMMOI
Report Number: ENG 18-15
Date: October 26, 2015
From: Richard Holborn
Engineering & Public Works
Subject: Southview Drive Road Reconstruction
- Tender No.T-18-2015
- File: A-1440
Recommendation:
1. That Tender No. T-18-2015 as submitted by NEI Construction Corp. in the total
tendered amount of$604,942.11 (HST included) be accepted;
2. That the total gross project cost of$744,001.00 (HST included), including the
tendered amount and other associated costs, and the total net project cost of
$669,996.00 (net of HST rebate) be approved;
3. That Council authorizes the Division Head, Finance & Treasurer to finance the net
project cost in the amount of$669,996.00 as follows:
a) the sum of$650,000.00 as provided for in the 2015 Roads Capital Budget be
increased to $660,000.00 and be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten years;
b) the sum of$9,996.00 to be funded from property taxes;
c) the financing and annual repayment charges in the amount of approximately
$80,000.00 be included in the annual Current Budget commencing in 2016 or
subsequent year in which the debentures are issued and continuing thereafter
until the debenture financing is repaid;
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. Further that the appropriate City of Pickering officials be authorized to take the
necessary action to give effect hereto.
Southview Drive Road Reconstruction October 26, 2015
Subject: Tender No. T-18-2015 Page 2
Executive Summary: As part of the 2015 Roads Capital Budget, Southview Drive
Road Reconstruction was approved as a construction project. Tender No. T-18-2015
was issued on Tuesday, August 25, 2015 and closed on Wednesday, September 16,
2015 with nine bidders responding. The low bid submitted by NEI Construction Corp. is
recommended for approval. The total gross project cost is estimated at $744,001.00
(HST included) and the total net project cost is estimated at $669,996.00 (net of HST
rebate).
Financial Implications:
1. Tender Amount
Tender No. T-18-2015 $535,347.00
HST (13%) $69,595.11
Total Gross Tender Amount $604,942.11
2. Estimated Project Cost Summary
Tender No. T-18-2015 for Southview Drive $535,347.00
Road Reconstruction
Associated Costs
Materials Testing 5,000.00
Veridian Relocation 10,000.00
Enbridge Relocation 51,561.00
Miscellaneous (MOE, TRCA application fees) 3,000.00
Project Contingency (10%) 53,500.00
Sub Total- Costs 658,408.00
HST (13%) $85,593.00
Total Gross Project Cost $744,001.00
HST Rebate (11.24%) (74,005.00) •
Total Net Project Cost $669,996.00
CORP0227-07/01 revised
Southview Drive Road Reconstruction October 26, 2015
Subject: Tender No. T-18-2015 Page 3
3. Approved Source of Funds — 2015 Roads Capital Budget
Account Source of Funds Available Budget Required
5320.1509.6250 Debt 10 Year $650,000.00 $660,000.00
Property Taxes 0.00 9,996.00
Total Funds $650,000.00 $669,996.00
Project Cost under (over) approved funds by ($19,996.00)
The estimated project cost overrun ($19,996.00) can possibly be accommodated
through the contingency budget of$53,500.00.
Discussion: Southview Drive was identified in the 2014 Roads Need Study
which provided input to the City's Asset Management Plan. Reconstruction of the road
would upgrade the Pavement Condition Index from poor to good which is used as an
indication to manage the City's roads infrastructure. Funds were budgeted in the 2014
Roads Capital account for the detail design and approvals. In 2015 funds were
approved in the Roads Capital Budget for the new storm sewer installation and road
reconstruction for Southview Drive.
During the detail design phase for the project it was determined that two gas mains and
one hydro duct were in conflict with the new storm sewer system. Enbridge Gas and
Veridian Connections were contacted and met on site with City staff to discuss the
possibility of relocating their infrastructure. Arrangements have been made for the
relocations of their infrastructure, and cost estimates have also been provided to
complete the work. Veridian Connections will have their work completed before NEI
Construction Corp. commences the storm sewer installation and road reconstruction. A
temporary storm sewer outfall will be installed this year to allow Enbridge Gas to
relocate their infrastructure in the spring of 2016. NEI Construction Corp. will then
complete the storm sewer outfall to Kingston Road and complete the project.
Tender No. T-18-2015 was issued on Tuesday, August 25, 2015 and closed on
Wednesday, September 16, 2015 with nine bidders responding. The low bid submitted
by NEI Construction Corp. is recommended for approval. References for NEI
Construction Corp. have been reviewed and deemed acceptable by the Manager,
Capital Projects & Infrastructure. The Health & Safety Policy, proof of Confined Space
Entry Procedure and a list of employees trained, current WSIB Workplace Injury
Summary Report, Certificate of Clearance issued by the Workplace Safety & Insurance
Board as submitted by NEI Construction Corp. have been reviewed by the (Acting)
Coordinator, Health & Safety, and deemed acceptable. The Certificate of Insurance has
been reviewed by the Manager, Budgets & Internal Audit, and is deemed acceptable. In
CORP0227-07!01 revised
Southview Drive Road Reconstruction October 26, 2015
Subject: Tender No. T-18-2015 Page 4
conjunction with staffs review of the contractor's previous work experience and the
bonding available on this project, the tender is deemed acceptable.
Upon careful examination of all tenders and relevant documents received, the
Engineering & Public Works Department recommends acceptance of the low bid
submitted by NEI Construction Corp. for Tender No. T-18-2015 in the amount of
$604,942.11 (HST included), that the total net project cost of$669,996.00 be approved.
Attachments:
1. Supply & Services Memorandum dated September 17, 2015
2. Record of Tenders Opened and Checked
3. Location Map
4. Being a by-law to authorize Southview Drive Road Reconstruction project in the
City of Pickering and the issuance of debentures in the amount of$660,000.00.
CORP0227-07/01 revised
Southview Drive Road Reconstruction October 26, 2015
Subject: Tender No. T-18-2015 Page 5
Prepared By: Approved/Endorsed By:
D rrell Se!sky, C.E.T., CMM III/ Rich rd Holbo n, P.Eng
Manager, Capital Projects & In rastructure Director, Engineering & Public Works
Caryn Kong, CPA, CGA Stan Karwowski, MBA, ' A , CMA
Senior Financial Analyst, Division Head, Finance & Treasurer
Capital & D: bt & Management
Vera A. Felgemacher
CSCMP, CPPO, CPPB, CPM, CMM III
Manager, Supply & Services
DS:mjh
Recommended for the consideration
of Pickering City Council
6P41)241121
, iq, 20`5
Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised
•
Cat/ 4 ATTACHMENT#I TOREPORT# E/6f8- )
I of
PI KERIN Memo
To: Richard Holborn Citfe�ft b r1j 2015
Director, Engineering & Public Works Engineering&Publ;cWorks
From: Vera A. Felgemacher SEP 18 2015
Manager, Supply & Services
Copy: Manager, Capital Projects & Infrastructure
Received
Supervisor, Supply & Services
Subject: Tender.No. T-18-2015
Tender for Southview Drive Road Reconstruction
Closing: September 16, 2015 —2:00pm
File: F-5400-001
Tender No. T-18-2015 was advertised on the City's website and 9 bids were received.
Copies of tenders are attached for your review and copy of the Record of Tenders Opened is
attached. Tenders shall be irrevocable for 60 days after the official date of closing.
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.
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 13.03(w). The low three (3) bids have been
retained for review at this time.
Summary
Harmonized Sales Tax Included
Bidder Total Tendered Amount After Calculation Check
NEI Construction Corp. $604,942.11 $604,942.11
TBG Environmental Inc. $637,029.27 $637,029.27
Hard-Co Construction Ltd. $661,192.38 $661,192.38
Mar-King Construction Company Ltd. $691,712.19 $691,712.19
Primrose Contracting Inc. $822,000.00 $822,000.00
Blackstone Paving & Construction Ltd $935,160.88 . $935,160.88
Trisan Construction $975,731.27 $975,731.27
Brennan Paving & Construction Ltd. $982,663.82 - $982,663.82
Ashland Paving Ltd. $1,103,303.46 $1,103,297.80
ATTACHMENT# / TOREPORT# ENC7 /5_is,—
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Pursuant to Information to Bidders Item 28 and.Tendering Specifications Item 18, the following
documentation will be requested of the low bidder for your review during the evaluation stage
of this tender call. Supply & Services has been advised by Engineering & Public Works to
collect the following documents:
(a) A copy of the currently dated and signed Health and Safety Policy to be used on
this project;
(b) 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);
(c) • A copy of the current Clearance Certificate issued by Workplace Safety &
Insurance Board;
(d) Copies of Ontario Ministry of Labour, Health and Safety Awareness Training
certificates for every worker and supervisor who will be working on this project;
(e) Proof of compliance with amended Confined Space Entry Regulations
(September 30, 2006). Copies of certified Training and Procedures to be used
on this project;
(f) A list of employees trained in the confined space entry procedure who will be
working on this project; V
(g) The City's certificate of insurance or approved alternative form shall be
completed by the bidder's agent, broker or insurer; and
(h) Waste Management Plan.
A budget of$650,000.00 was provided to Supply & Services for this procurement.
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 06.12, 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 $125,000, 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 (f) noted above are acceptable to the Co-ordinator, Health & Safety or
designate;
2. if Item (g) is acceptable to the Manager, Budgets & Internal Audit;
3. if the list of subcontractors is acceptable;
4. if Item (h) is acceptable to Engineering & Public Works;
5. any past work experience with the low bidder NEI Construction Corp including work
location;
6. without past work experience, if reference information is acceptable;
7. the appropriate account number(s) to which this work is to be charged;
September 17, 2015
Tender No. T-18-2015 Page 2
Southview Drive Road Reconstruction
•
ATTACHMENT# TO REPORT# tN E7
3 of
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.
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 u require further information, please feel free to contact me or a member of Supply &
Se ices.
VAF/rr
Attachments
September 17, 2015
Tender No. T-18-2015 Page 3
Southview Drive Road Reconstruction • •
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Southview Drive Road Reconstruction
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Location Map
Proposed Construction Includes:
Southview Drive -from Kingston Road (Highway No. 2) south to the terminus. The
proposed work includes road reconstruction and widening (excavation, new granular
base, asphalt, and concrete curb/gutter), utility relocation, storm sewer installation and
complete landscape (grading and sodding) and driveway restoration where required.
ATTACHMENT# TOREPORT# 1,6) /8
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The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the Southview
Drive Road Reconstruction project in the City
of Pickering and the issuance of debentures
in the amount of$660,000.00
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 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 of Pickering wishes to proceed with debenture
financing for the Southview Drive Road Reconstruction project; and,
Whereas before authorizing the Southview Drive 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 was not required prior to
City Council's authorization 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 18-15 on the date hereof and awarded
Tender No. T-18-2015 for Southview Drive Road Reconstruction project;
By-law No. ATTACHMENT#�TOREPORT#=/VCS 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 "Southview Drive Road
Reconstruction";
2. That the estimated costs of the project in the amount of$669,996.00 be financed as
follows:
a) that the sum of$660,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten years;
b) that the sum of $9,996.00 be funded from 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 2016 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid.
By-law passed this 26th day of October, 2015.
David Ryan, Mayor
Debbie Shields, City Clerk