HomeMy WebLinkAboutENG 18-17 G4 c Report to
PiCKERiNG Council
Report Number: ENG 18-17
Date: July 12, 2017
From: Richard Holborn
Director, Engineering Services
Subject: Additional Costs for Tender T-3-2016
Squires Beach Road & Clements Road Intersection Improvements &
Signalization
File: A-1440
Recommendation:
1. That additional costs in the amount of$79,928.00 (plus HST) over the original
tender amount for Tender T-3-2016, Squires Beach Road & Clements Road
Intersection Improvements & Signalization resulting in a revised tender amount of
$456,691.00 (plus HST) be approved;
2. That the revised total net project cost for the Squires Beach Road & Clements
Road Intersection Improvements & Signalization project be increased by
$55,716.00 (net of HST rebate) from $561,653.00 to $617,369.00 (both net of HST
rebate);
3. That Council authorize the Director, Finance & Treasurer to finance the additional
net project cost of$55,716.00 as follows:
a) the sum of$13,929.00 by a transfer from Development Charges City's Share
Reserve;
b) the sum of$41,787.00 by a transfer from Development Charges Roads &
Related Reserve Fund; 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 - Development Projects,
the Squires Beach Road & Clements Road Intersection Improvements & Signalization
project was approved for construction. Tender No. T-3-2016 was awarded to the low
bidder Montgomery MacEwan Contracting in the amount of$376,763.00 (plus HST)
through the approval of Report ENG 23-16 at the Council Meeting of October 17, 2016.
The estimated net project cost approved by Council was $561,653.00 including the
tender amount and other associated costs.
ENG 18-17 July 12, 2017
Subject: Additional Costs for Tender T-3-2016
Squires Beach Road & Clements Road
Intersection Improvements & Signalization Page 2
Due to requirements for additional materials, extra work to ensure the site was safe and
functional over the winter months, and final contract quantities that exceeded the
tendered estimated quantities, the revised tender amount is $456,691.00 (plus HST).
Staff is recommending approval to increase the net project cost by $55,716.00 to a
revised net project cost of$617,369.00, and to fund the additional amount from a
transfer from Development Charges — Roads & Related Reserve Fund, and the
Development Charges— City's Share Reserve in the same ratio as the original approval
(75% and 25% respectively).
In accordance with Section 11.02 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 expenditures
does not exceed the lesser of 10% of the approved capital expenditure or $100,000.00.
In this case the project has exceeded the 10% limit of the approved capital expenditure
and requires Council approval.
Financial Implications: The following is a breakdown of the project costs related to
the Squires Beach Road & Clements Road Intersection Improvements & Signalization
project (Tender T-3-2016), as reported in Report to Council ENG 23-16, as well as
actual costs incurred and estimated to be required for completion, thereby indicating the
total additional funds that are required.
1. Approved Cost per ENG 23-16
Tender No. T-3-2016 $376,763.00
Associated Costs
Land Acquisition 10,000.00
Region Traffic Signal Installation 125,000.00
Materials Testing 2,500.00
Construction Contingency (10%) 37,676.00
Sub Total - Costs $551,939.00
HST 13% 71,752.00
Total Gross Project Costs $623,691.00
HST Rebate (11.24%) (62,038.00)
Total Net Project Costs $561,653.00
CORP0227-07/01 revised
ENG 18-17 July 12, 2017
Subject: Additional Costs for Tender T-3-2016
Squires Beach Road & Clements Road
Intersection Improvements & Signalization Page 3
2. Revised Project Cost
Tender Amount (including Change Orders 1 to 13 $456,691.00
and additional Tender Quantities
Land Acquisition 10,000.00
Region Traffic Signal Installation 125,000.00
Materials Testing 2,500.00
Traffic Signal Installation Contingency (10%) 12.500.00
Total Revised Project Cost (excl. taxes) 606,691.00
Net HST cost to City (1.76%) 10,678.00
Net Revised Project Cost 617,369.00
Approved Funds as indicated in ENG 23-16 (561,653.00)
Additional Funds Required $55,716,00
Discussion: Council awarded Tender T-3-2016 in Report to Council
ENG 23-16 in October 2016 (see Attachment#1). The work on this project was not
completed by the contractor until the spring of 2017. During the course of the
construction it was discovered that the existing asphalt pavement thickness of 300mm
far exceeded the City standard of 110mm resulting in a significant overrun of granular
material to be placed prior to paving. Also contributing to the additional costs were 13
extra work orders, including extra work necessary to make the site safe over the winter
months until the contractor could return in the spring to complete the project. As a
result, the final tender amount increased by $79,928.00 (plus HST). In addition as final
billing for traffic signal installation has not been received from the Region an additional
contingency of$12,500.00 has been added as a precaution. The additional amounts
result in an increase to the net project cost of$55,716.00 (net of HST rebate) which can
be accommodated through an increase in the transfer of funds from the DC — Roads &
Related Reserve Fund (75%) and DC City's Share Reserve (25%).
Senior staff from Engineering Services have extensively reviewed the contractor's
claims and invoices and have confirmed that the additional work and corresponding
materials were delivered and used for this project.
Staff is recommending that Council approve additional funding in the amount of
$55,716.00 (net of HST rebate) by a transfer from the DC — Roads & Related Reserve
Fund (75%) and DC City's Share Reserve (25%) in order to cover the additional project
costs.
CORP0227-07/01 revised
ENG 18-17 July 12, 2017
Subject: Additional Costs for Tender T-3-2016
Squires Beach Road & Clements Road
Intersection Improvements & Signalization Page 4
Attachment:
1. Report ENG 23-16
Prered By: Approved/Endorsed By:
(ti
atitS/64,-1-4 _
Darrell Selsky, C.E.T., CMM III V 'chard Hol•orn, P.Eng
Manager, Capital Projects & Infrastructure Director, Engineering Services
Cti. -tti Ce),-.4t{
It
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
DS:mjh
Recommended for the consideration
of Pic iii g City Council
ma 3t0 Ka oF
Tony Prev:del -".Eng.
Chief Administrative Officer
CORP0227-07/01 revised
ATTACHMENT#.1_TOREPORTu1Qt(r- J ii13
�:, x.01
o Report to
P 1 C KE R1 N G Executive Committee
Report Number: ENG 23-16
Date: October 11, 2016
From: Richard Holborn
Engineering & Public Works
Subject: Tender for Squires Beach Road & Clements Road
Intersection Improvements & Signalization
Tender No. T-3-2016
- File: A-1440
Recommendation:
1. That Tender No,T-3-2016 for Squires Beach Road & Clements Road Intersection
Improvements & Signalization as submitted by Montgomery MacEwan Contracting
in the total tendered amount of$425,742.56 (HST included) be accepted;
2. That the total gross project cost of$623,691.00 (HST included), including the
tender amount and other associated costs, and the total net project cost of
$561,653.00 (net of HST) be approved;
3. That Council authorize the Director, Finance & Treasurer to finance the net project
cost of$561,653.00 as follows:
a) the sum of$10,000.00 for the land acquisition as provided in the 2016 Capital
Budget— Development Projects to be funded by a transfer from the Development
Charges City's Share Reserve;
b) the sum of$137,913.00 as provided in the 2016 Capital Budget— Development
Projects to be funded by a transfer from the Development Charges City's Share
Reserve;
c) the sum of$413,740.00 as provided in the 2016 Capital Budget— Development
Projects to be funded by a transfer from the Development Charges Roads &
Related Reserve Fund; 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- Development Projects
the Squires Beach Road & Clements Road Intersection Improvements and Signalization
was approved as a construction project. Tender No. T-3-2016 was issued on Tuesday,
August 23, 2016 with a closing date of Wednesday, September 14, 2016. The low bid
of$425,742.56 (HST included) submitted by Montgomery MacEwan Contracting is
recommended for approval. The total gross project cost is estimated at $623,691.00
AT TAGFiMENT#.,,, _Tp PORT#,jam /8 -17
ENG 23-16 - ,
�,�.,,__ October 11;"2016
Subject: Tender for Squires Beach Road & Cements Road
Intersection Improvements & Signalization - Tender T-3-2016 Page 2
(HST included) with an estimated total net project cost of$561,653.00 (net of HST
rebate).
Financial Implications:
1.Tender Amount
Tender No. T-3-2016 $376,763.33
HST 13% 48,979.23
Total $425,742.56
2. Estimated Project Cost Summary
Tender No. T-3-2016 $376,763.00.
Associated Costs •
Land Acquisition 10,000.00
Region Traffic Signal Installation 125,000.00
Materials Testing 2,500.00
Construction Contingency (10%) 37,676.00 •
• Sub Total - Costs $551,939.00
HST 13% 71,752.00
Total Gross Project Costs $623,691.00
HST Rebate (11.24%) (62,038.00)
Total Net Project Costs $561,653.00
3. Approved Source of Funds— 2016 Capital Budget - Development Projects
Account Code Source of Funds Available Required
Budget
Land Acquisition
• 5321.1607.6265 : DC City's Share Reserve $10,000.00 $10,000.00
Traffic Signals
5321.1607.6254 DC City's Share Reserve 168,750.00 137,913.00
5321.1607.6254 DC — Roads & Related 506,250.00 413,740.00
Reserve Fund
Total Funds $685,000.00 $561,653.00
•
Project Cost under (over) approved funds by $123,347.00
CORP0227-07/01 revised
ATTACHMENT#.�.,.e.TO REPORT#„ ,C r- / 13'
ENG 23-16of� October 11, 2016
Subject: Tender for Squires Beach Road & Cements Road
Intersection Improvements & Signalization - Tender T-3-2016 Page 3
Land acquisition is required as part of the traffic signal improvement work. The cost of
the land acquisition will be bore entirely by the City, and will be funded from the
Development Charges City's Share Reserve. The main component of this project
(traffic signals installation) will be funded at the approved funding ratio of 25% from
Development Charges City's Share Reserve and 75% Development Charges Roads &
Related Reserve Fund.
Discussion: As part of the 2016 Capital Budget - Development Projects,
the Squires Beach Road & Clements Road Intersection Improvements and Signalization
was approved as a construction project.
Tender No. T-3-2016 was issued on Tuesday, August 23, 2016 with a closing date of
Wednesday, September 14, 2016. The low bid of$425,742.56 (HST included)
submitted by Montgomery MacEwan Contracting is recommended for approval. The
total gross project cost is estimated at$623,691.00 (HST included) with an estimated
total net project cost of$561,653.00 (net of HST rebate).
References for Montgomery MacEwan Contracting have been checked 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, proof of Confined Space Entry Procedure
and a list of employees trained, a current WSIB Workplace Injury Summary Report,
Certificate of Clearance issued by the Workplace Safety & Insurance Board 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 deemed acceptable. In conjunction with staff's review of the contractor's previous
work experience and 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 Montgomery MacEwan Contracting for Tender No. T-3-2016 in the amount
of$425,742.56 (HST included), and the total net project cost of$561,653.00 (net of
HST rebate) be approved.
Attachments:
1. Supply & Services Memorandum dated September 15, 2016 •
2. Record of Tenders Opened and Checked
3. Location Map
CORP0227-07101 revised
ATTACHMENT# "
o.L...TOREPORT#-.mer• /�-/
ENG 23-16 . o{_, October 11, 2016
Subject: Tender for Squires Beach Road & Cements Road
Intersection Improvements & Signalization - Tender T-3-2016 Page 4
Prepare y: Approved/Endorsed By:
•
Darrell Selsky, C.E.T., CMM III Rich d Holbor , P.Eng
Manager, Capital Projects & Infrastructure Direaor, Engineering & Public Works
Caryn Kong, CPA, CGA • Stan Karwowski, MBA, CPA, CMA
Senior Financial Analyst, Director, Finance &Treasurer
Capital Debt & Management
•
Vera A. Fel emacher
CSCMP, CPPO, CPPB, CPM, CMM III
Manager, Supply & Services
DS:mjh •
Recommended for the consideration
of Pickering City Council •
aieed • 23.2016
Tony Prevedel, P.Eng.
Chief Administrative Officer
•
CORP0227-07/01 revised
•
•
ATTACHMENT# I TOREPORT#.r&O
64 If
PICKERING Memo
To: Richard Holborn September 15, 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: Tender No. T-3-2016 •
Tenderfor Squires Beach Rd. and Clements Rd. Intersection Improvements and
Signalization
Closing: Wednesday, September 14, 2016—2:00pm
File: F-5400-001
Tender No. T-3-2016 was advertised on the City's website on August 23, 2016. Five
companies have submitted a bid for this project.
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 13.03 (r) provides checking tendered unit prices
and extensions unit prices shall govern and extensions will be corrected accordingly, which has
been completed below.
The unsuccessful Bidder's tendering deposit, other than a bid bond, shall be returned to the
applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 13.03 (w).
Three (3) bids have been retained for review at this time and are attached.
. Summary
Harmonized Sales Tax Included
budder y 5` Total Tendered Amouitit After-Calculation Check
Montgomery MacEwen Contracting $425,742.57 $425,742.56
Blackstone Paving &Construction Ltd. $492,236.70 $492,233.65
Midome Construction Services $519,800.00 $519,800.00
Brennan Paving & Construction Ltd. $528,613.21 $528,613.21
Elirpa Construction & Materials $660,218.26 $660,218.26
ATTACHMENT#L TO SPORT# ' - I'
Pursuant to Information to Bidders Item 27, Tendering Specifications Item 20 and Tendering
Specifications Item 27, the following documentation will be requested of Montgomery MacEwen
Contracting for your review during the evaluation stage of this tender call. Please advise if
Supply & Services is to proceed with collecting the following documentation:
(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.Clearance Certificate issued by Workplace Safety& Insurance
Board;
(c) Proof of compliance with amended Confined Spaces Regulations (0. Reg. 632/05—
July 1, 2011). Copies of certified Training and Procedures to be used on this project;
(d) A list of employees trained in the confined space entry procedure who will be working
on this project;
(e) The City's certificate of insurance Or approved alternative form completed by the
Bidder's agent, broker or insurer;
(f) A completed Sub-contractors List, listing all sub-contractors who may be carrying out
any part of this Contract; and
(g) A Waste Management Plan.
A budget of$685,000.00 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 06.11, 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:
(c) Over$250,000, 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 (d) noted above are acceptable to the Co-ordinator, Health & Safety or
designate;
2. if the Certificate of Insurance is acceptable to the Manager, Budgets & Internal Audit;
3. if the list of subcontractors is acceptable;
4. . if the Waste Management Plan is acceptable;
5. without past work experience, if the Reference information is acceptable;
6. the appropriate account number(s)to which this work is to be charged;
7. the budget amount(s) assigned thereto;
8. Treasurer's confirmation of funding;
9. related departmental approvals; and
10. related comments specific to the project.
September 15, 2016
Tender No. T-3-2016 Page 2
Squires Beach Rd. and Clements Rd. Intersection Improvements and Signalization
• ATTACHMENT# TO REPOitT#
-- a_
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 you require further information, feel free to contact me or a member of Supply & Services.
,
VAF/sb
Attachments
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September 15, 2016
Tender No. T-3-2016 Page 3
Squires Beach Rd. and Clements Rd. Intersection Improvements and Signalization
ATTACHiMENT#..�.
TO REPORT# _:- ✓- I�— `
City of Pickering .
•
Record of Tenders Opened and Checked
Tender Description: Squires Beach Rd.and Clements Rd.Intersection Improvements and Signalization
Tender No.: , T-3-2016
Date: Wednesday,September 14,2016
Time: Approx.2:15 pm Local Time
Agreement gid Addendum#1
Bidder Name gto ond Deposit Acknowledged Total Tendered Amount Bidder Sign In Comments
Blackstone Paving& ✓ t/".1� /a ,/- $ ',2 ,70 / •-;Construction Ltd.
Brennan Paving& ✓ ✓(e d/ $ Sat, ;�/J, a/ 6' J t / • i- m
Construction Ltd. "t
/° t
area Construction
,✓ ✓(o ✓ i$ 66� a4,.2..4 y I .
o i -
Midome Construction v ✓ $ 579 PDO,co ''
Services Ltd. (°�° C/ _ p
Montgomery MacEWen ✓ (•o ✓ $ a75`, 7Yd.• C7Z g
Contracting t O
tac
City S. - Pr-_ nt OtherIZ\
ii r. ..1
(74 /
Ai_,. di.,hr' _- _ 1 .
The information is strictly preliminary,pending review and verification of conformance to terms,conditions and specifications.
•
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