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Home My WebLink AboutENG 27-16 of Report to PiCKERING Executive Committee Report Number: ENG 27-16 Date: November 14, 2016 From: Richard Holborn Director, Engineering Services Subject: Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvements - File: A-1440 Recommendation: 1. That Quotation No. Q-56-2016 submitted by Bry Ron Contracting Limited for Hedgerow Place Storm Sewer Improvements in the total quotation amount of $58,556.60 (HST included) be accepted; 2. That the total gross project cost of$66,672.00 (HST included), including the quotation amount and other associated costs, and the total net project cost of $60,040.00 (net of HST rebate) be approved; 3. That Council authorizes the Director, Finance & Treasurer to finance the net project cost in the amount of $60,040.00 as follows: a) the sum of$40,000.00 as provided for in the 2016 Capital Budget - Stormwater Management to be funded from the Provincial Grant - Transportation Initiatives; b) the over expenditure in the amount of$20,040.00 to be funded from property taxes; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: As part of the 2016 Capital Budget - Stormwater Management, Hedgerow Place Storm Sewer Improvements was approved as a construction project with a budget of$40,000.00. Request for Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvements was issued on Tuesday, August, 23, 2016 and closed on Thursday, September 8, 2016 with two bidders responding. The low bid submitted by Bry Ron Contracting Limited is recommended for approval. The total gross project cost is estimated at $66,672.00 (HST included) and the total net project cost is estimated at $60,040.00 (net of HST rebate). Under the Financial Control Policy— Budget Variances — Item 11.02 Where authority has been given in the annual Capital Budget for a particular project, the Chief Administrative Officer, the appropriate Department Head(s) and the Treasurer may jointly approve changes to such authorized amounts provided that the total amount of ENG 27-16 November 14, 2016 Subject: Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvements Page 2 the over expenditures: a) does not exceed the lesser of 10% of the approved capital expenditure or $100,000.00. In this case, 10% of the approved capital expenditure has been exceeded and, therefore, requires Council approval. Financial Implications: 1. Quotation Amount Quotation No. Q-56-2016 $51,820.00 HST (13%) 6,736.60 Total Gross Tender Amount $58,556.60 2. Estimated Project Cost Summary Quotation No. Q-56-2016 for $51,820.00 Hedgerow Place Storm Sewer Improvements Associated Costs Materials Testing 2,000.00 Project Contingency (10%) 5,182.00 Total Cost $59,002.00 HST (13%) 7,670.00 Total Gross Project Cost $66,672.00 HST Rebate (11.24%) (6,632.00) Total Net Project Cost $60,040.00 3. Approved Source of Funds 2016 Capital Budget - Stormwater Management Projects Expenditure Account Source of Funds Available Required Budget 5410.1601.6250 Provincial Grant— , $40,000.00 $40,000.00 Transportation Initiatives Additional Funds Required Property Taxes 0.00 20,040.00 Total Funds $40,000.00 $60,040.00 Project Cost under (over) approved funds by ($20,040.00) The estimated net project cost after factoring in a contingency provision has resulted in an over-expenditure of $20,040.00, and exceeds the approved budget by more than CORP0227-07/01 revised ENG 27-16 November 14, 2016 Subject: Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvements Page 3 10%. As a result, Council approval is being sought at this time in order to proceed with the project. The additional funds required will be funded from property taxes, through savings realized from the Engineering Services Department operating costs. Discussion: As part of the 2016 Capital Budget— Stormwater Management, Hedgerow Place Storm Sewer Improvements was approved as a construction project. Over the past few years Hedgerow Place has been experiencing severe flooding during heavy periods of rain. Staff have investigated the concern and determined that storm sewer improvements in this area are required to alleviate the flooding concerns. Request for Quotation No. Q-56-2016 was issued on Tuesday, August 23, 2016 and closed on Thursday, September 8, 2016 with two bidders responding. The low bid submitted by Bry Ron Contracting Limited is recommended for approval. References for Bry Ron Contracting Limited have been reviewed and deemed acceptable by the Manager, Capital Projects & Infrastructure. The Waste Management Plan has been reviewed and deemed acceptable by the Manager, Capital Projects & Infrastructure. The Health & Safety Policy, and Certificate of Clearance issued by the Workplace Safety & Insurance Board as submitted by Byr Ron Contracting have been reviewed by the Coordinator, Human Resources, and deemed acceptable. The Certificate of Insurance has been reviewed by the Manager, Budgets & Internal Audit, and is deemed acceptable. In conjunction with staff's review of the contractor's previous work experience, the quotation is deemed acceptable. Upon careful examination of all quotations and relevant documents received, the Engineering Services Department recommends acceptance of the low bid submitted by Bry Ron Contracting Limited for Quotation No. Q-56-2016 in the amount of$58,556.60 (HST included), and that the total net project cost of$60,040.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated September 8, 2016 2. Location Map CORP0227-07/01 revised ENG 27-16 November 14, 2016 Subject: Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvements Page 4 Prepared By: Approved/Endorsed By: Darrell Selsky, C.E.T., CMM III Rich rd Holborn, P.Eng Manager, Capital Projects & Infrastructure Dir ctor, Engineering Services • L Caryn Kong, CPA, CGA Stan Karwowski, MBA, CPA, CMA Senior Financial Analyst, Director, Finance & Treasurer Capital Debt & Management jj (54 Vera A. Felg macher • CSCMP, CPtO, CPPB, CPM, CMM III Manager, Supply & Services DS:mjh Recommended for the consideration of Pickering City Council 024aeld , Vd. Si/ 20/6 Tony Prevedel, P.Eng. • Chief Administrative Officer CORP0227-07/01 revised Cif!, ' 9 ATTACHMENTS—a_TOREPORT# Ej 2--4-41" 1" NCINCIMNI Memo To: Richard Holborn September 8, 2016 Director, Engineering & Public Works From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Capital Projects & Infrastructure Sr. Coordinator, Design'&Asset Management Supervisor,Supply& Services Subject: Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvement - File: F-5300-001 Quotation Q-56-2016 was sent to six(6) potential bidders via email and two (2) submissions were received by the official closing date and time of Thursday, September 8, 2016 at 12:00 Noon. There are 2 stages in the evaluation process which are outlined in Part 2 — Evaluation of Quotations of the quotation document. Stage I determines which submissions satisfy all the mandatory submission requirements and • provides Respondents the opportunity to rectify deficiencies. Two (2) quotations proceeded to Stage II, which consists of scoring each qualified quotation to determine the best price based on a set formula outlined in Part 2 of the quotation document. Reference: Part 2 — Evaluation— Item 2.4— Stage II —Pricing Evaluation of Pricing Weighting (Points) Price 100 Total Points 100 • Price Evaluation Each Respondent will receive a percentage of 100 of the total possible points allocated to price for total price quoted by dividing that Respondent's total price quoted into the lowest total quoted price. For example, if a Respondent quotes'a total price of$120.00 and that is the lowest total price, that Respondent receives 100% of•the possible points (120/120 = 100%). A Respondent who quotes a total price of$150.00 receives 80% of the possible points (120/150 = 80%), and a Respondent with a total price of$240.00 receives 50% of the possible points(120/240 = 50%). ATTACHMENT# I TO REPORT# cN 6 c - — Lowest Total Price ? of Z. X Total available points = Score for second Second Lowest Total Price lowest total price Lowest Total Price ----- - X Total available points = Score for third Third Lowest Total Price lowest price And so on, for each quotation. In the event of a tie score, the selected Respondent will be determined in accordance with the City's Purchasing Procedures. A budget of$50,000 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. Bry Ron Contracting Limited has received the highest overall points. In accordance with Appendix D— Deliverables, the following documents will be requested from Bry Ron Contracting Limited (a) A copy of the Health and Safety Policy to be used on this project; (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 shall be completed by the bidder's agent, broker or insurer; and • Please advise if Supply & Services is to proceed with this task. 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: • (a) Over$30,000 and up to $75,000,the Manager may approve the award, subject to consultation with the appropriate Director and confirmation of financing by the Treasurer. Subject to receipt of approvals on Health & Safety documents from Human Resources, • please provide your recommendation in memo form, as well as an on-line requisition. Please direct all enquiries to Supply&Services. Respondents will be advised of the outcome when the contract has been awarded. If you require further information, please contact myself or a member of Supply.&Services. 41( ((-1i4A4:P/2 VAF/gb Attachment(s): (1) Quotation No. Q-56-2016 Page 2 of 2 Hedgerow Place Storm Sewer Improvement _ . cd-, 4 ATTACHMENT# 2 TO REPORT#, �i a ` -of PiCKERING Engineering Services Department Quotation No. Q-56-2016 Hedgerow Place Storm Sewer Improvements • Location Map- 10 '' "S 1,----- \\___1\_100c). ----:-Acipc, ..k " \ k.,3, 'P,,) 5 0\-Pb r ) VEr (-F, �r 5 \ 2� C GES/ \ PR Y°P � \ SNP O \., \___: ,L \,\• ,� i � co r, t =p • Subject PKECNPCNiAN ,->�c 1 ��' o \ Area /\ �� ti,I t . / H pY6 R U 1 rcL "0 LP rD KARK vE F \00' -- \('Ci O '�O a � E r O F,P�`�E V F Z n \ 0 EN3nnG RoqC rp, \ r � ,o j R- BaYFIELD 5l' �\ 'Pj�� \\ \ / •