HomeMy WebLinkAboutCAO 06-19cd; ,F
DICKERING
Report to
Council
Report Number: CAO 06-19
Date: July 22, 2019
From: Tony Prevedel
Chief Administrative Officer
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No.T-12-2019
- File: A-1440
Recommendations:
1. That Tender No. T-12-2019 Municipal Servicing 407 Corridor Lands Phase One as
submitted by TACO Construction Ltd. in the total tendered amount of
$6,702,841.28 (HST included) be accepted;
2. That Council approve the hiring of Sabourin, Kimble & Associates Ltd. to provide
contract administration and inspection services and other associated costs in the
amount of $365,000.00 (HST excluded) for Tender No. T-12-2019 Municipal
Servicing 407 Corridor Lands Phase One, in accordance with Purchasing Policy
10.03 (c) as the assignment is over $50,000.00;
3. That the total gross project cost of $9,029,319.00 (HST included), including the
tendered amount and other associated costs, and the total net project cost of
$8,131,181.00 (net of HST rebate) be approved;
4. That Council authorizes the Director, Finance & Treasurer to front fund the total
net project cost in the amount of $8,131,181.00 as follows:
a) the sum of $7,625,722.00 as approved for in the 2019 Finance and Taxation
Capital Budget to be funded by Third Party Contribution Reserve Fund;
b) the sum of $400,000.00 as provided for in the 2019 Finance and Taxation Capital
Budget be increased to $505,459.00 to be funded by a transfer from the Rate
Stabilization Reserve;
c) 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;
5. That Council direct staff to fully recover all front funding costs less City's share of
$505,459.00 from Kubota and future benefiting land owners;
CAO 06-19 July 22, 2019
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019 Page 2
6. That the City's recoverable costs be subject to annual indexing to take effect July
1st and that the non-residential building construction price index be used for
purposes of indexing or a rate of 2 per cent, whichever is higher; and
7. 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 2019 Finance and Taxation Capital Budget,
Municipal Servicing 407 Corridor Lands Phase One was approved as a construction
project. The project was initiated through the issuance of a request for pre -qualification
of general contractors. RFPQ-2-2019 was advertised on the City's website on March 14,
2019 and closed on April 11, 2019. A total of 14 companies submitted a proposal. The
evaluation committee pre -qualified 5 companies to be eligible to submit a bid when the
subsequent tender was released. Tender No. T-12-2019 Municipal Servicing 407
Corridor Lands Phase One was issued on Friday, June 7, 2019 and closed on
Thursday, July 4, 2019 with 5 bidders responding. The compliant low bid submitted by
TACC Construction Ltd. in the amount of $6,702,841.28 (HST included) is
recommended for approval.
In 2018, through Resolution #445/18, Council approved the hiring of Sabourin, Kimble &
Associates Ltd. to provide project management services and undertake the necessary
studies and design work associated with servicing the 407 corridor lands. Staff
recommends continuing with Sabourin, Kimble & Associates Ltd. to undertake contract
administration and inspection services associated with Tender No. T-12-2019 Municipal
Servicing 407 Corridor Lands Phase One and other associated costs as set out in their
fee proposal dated July 12, 2019 in the amount of $365,000.00 (HST excluded).
The total gross project cost for Phase One is estimated at $9,029,319.00 (HST
included) and the total net project cost is estimated at $8,131,181.00 (net of HST
rebate). Phase One consists of municipal services primarily required to facilitate the
development of the Kubota lands, but also benefits future lands in the Pickering
Innovation Corridor. As such, a majority of costs are recoverable from Kubota, future
landowners, and through the Seaton Landowners Cost Sharing Agreement. Phase Two
primarily consists of the reconstruction of the Highway 7/Sideline 24 intersection and
utility relocations/streetlighting. Phase Three is the balance of municipal services,
including roads within the Pickering Innovation Corridor.
CAO 06-19
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019
July 22, 2019
Page 3
Financial Implications:
1. Tender Amount
Tender No. T-12-2019
HST (13%)
Total Gross Tender Amount
$5,931,717.95
771,123.33
$6,702,841.28
2. Estimated Project Cost Summary
Tender No. T-12-2019 for Municipal Servicing 407 Corridor Lands
Phase One
Associated Costs
Contract Administration & Inspection Services
Tree Removals (Darlington Tree Services)
Materials Testing Allowance (through Sabourin, Kimble & Associates)
Infrastructure Ontario License/Rental Fee
Landscaping Allowance
Project Contingency (12%)
Sub Total
HST (13%)
Total Gross Project Cost
HST Rebate (11.24%)
Total Net Project Cost
$5,931,718.00
290,000.00
37,700.00
75,000.00
250,000.00
550,000.00
856,130.00
$7,990,548.00
1,038,771.00
$9,029,319.00
(898,138.00)
$8,131,181.00
3. Approved Source of Funds
Expense Code Source of Funds
5203.1904.6500
5203.1904.6500
Total Funds
Rate Stabilization Reserve
Third Party Contribution
Reserve Fund
Available
Budget
$400,000.00
$10,600,000.00
$11,000,000.00
Required
$505,459.00
7,625,722.00
$8,131,181.00
Project Cost under (over) approved funds by
$2,868,819.00
CAO 06-19 July 22, 2019
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019 Page 4
Cost Recovery
The servicing costs for Phase One, as well as future Phases to service the entire
Bundle 6 lands, will be recovered from Kubota and future landowners who benefit from
these services. Servicing costs include infrastructure to be constructed, land costs, soft
costs such as consulting fees, licence fees and permits, and carrying costs. Some
servicing costs are eligible for recovery through the Seaton Landowners Group cost
sharing agreement directly. The balance of the funds under the approved funds, and
any unspent project costs from Phase One will be retained for costs related to future
Phases of development. A more comprehensive and detailed report on cost recovery
will be prepared later in 2019 for Council's information.
The City will be internally financing the front funding of the municipal servicing costs for
Phase One until the costs have been fully recovered. To reflect the time value of
money, the City's recoverable costs will be subject to annual indexing to take effect July
1st. The non-residential building construction price index will be used for purposes of
indexing or a rate of 2 per cent, whichever is higher.
The City will be recovering its municipal servicing costs that benefit Kubota through the
Site Plan Control Agreement with Kubota. Those municipal servicing costs benefiting
future land owners will be recovered through Agreements of Purchase and Sale from
future land sales.
Future Phases
The municipal servicing costs for Phase Two involves intersection works at Hwy 7 and
Sideline 24 as well as hydro relocation and new streetlighting. It is anticipated that these
works would commence in June 2020 and be completed by August 2020 (estimate).
The cost for these works is estimated to be $2.5 million. As with Phase One, the City
will front fund the costs of Phase Two and fully recover the costs from Kubota and future
landowners who benefit from these municipal works.
Phase Three includes constructing the balance of roads and municipal services within
the Pickering Innovation Corridor and possibly more improvements to Hwy 7, which are
under discussion with the Ministry of Transportation.
Discussion: Pickering's Innovation Corridor lies within the Seaton
employment lands which are designated for prestige employment uses under the City's
Official Plan. The City has been working closely with the Province (Ontario
Infrastructure and Land Corporation) to secure lands within Bundle 6 to attract major
businesses to the Pickering Innovation Corridor.
The City has purchased approximately 50 acres from the Province, which the City
subsequently sold to Kubota Canada Ltd. In order to meet Kubota's schedule for
occupancy, the City is undertaking all work required to service the lands in Bundle 6. In
May 2018, Sabourin, Kimble & Associates Ltd. was hired to provide project
CAO 06-19 July 22, 2019
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019 Page 5
management and engineering services for servicing the innovation corridor lands. The
scope of their services was expanded and approved in January 2019 and now includes
intersection improvements at Highway 7 and Sideline 24, amongst other tasks. Detailed
design to provide sanitary, water, stormwater and transportation services to Kubota
lands, and other lands in the Pickering Innovation Corridor, was completed by Sabourin,
Kimble & Associates Ltd. in preparation for tendering the works for construction.
The firm of Sabourin, Kimble & Associates Ltd. should also be retained for contract
administration and inspection services for the work to be completed in accordance with
the approved drawings and specifications of Tender No. T-12-2019. In accordance with
Purchasing Policy 10.03 (c) where the project or annual cost of a consultant or
professional service assignment is expected to be more than $50,000.00 and the
initiating Director intends to acquire the services without obtaining written proposals, the
Director shall submit a Report to Council to obtain approval to engage the services of a
particular consultant. Staff recommends acceptance of the fee proposal dated July 12,
2019 submitted by Sabourin, Kimble & Associates Ltd. for contract administration and
inspection services and other associated costs in the amount of $365,000.00 (HST
excluded).
As part of the 2019 Finance and Taxation Capital Budget, Municipal Servicing 407
Corridor Lands Phase One was approved as a construction project.
The project was initiated through the issuance of a request for pre -qualification of
general contractors. RFPQ-2-2019 was advertised on the City's website on March 14,
2019 and closed on April 4, 2019. A total of 14 companies submitted a proposal.
Proposals were evaluated based on set criteria including:
• Company Experience and Qualifications
• Experience of Key Personnel
• Similar or Related Projects
• Understanding of the Project
• WSIB and Health & Safety
• Insurance, Bonding Capacity
• Litigation Record
• References
• Conflict of Interest
Following the evaluation process, up to five companies could be selected to submit a
bid when the tender was issued. The evaluation committee selected the following
companies to submit a bid:
• Clearway Construction Inc.
• Con -Drain Group
• Elirpa Construction & Materials Ltd.
• Pilen Construction of Canada Ltd.
• TACC Construction Ltd.
CAO 06-19 July 22, 2019
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019 Page 6
Tender No. T-12-2019 was issued on Friday, June 7, 2019 and closed on Thursday,
July 4, 2019 with 5 bidders responding. The compliant low bid submitted by TACC
Construction Ltd. is recommended for approval.
Award of the compliant low bid submitted by TACC Construction Ltd., will be conditional
upon receiving the Certificate of Insurance and requisite approvals. In conjunction with
staff's review of the bonding available on this project, the tender is deemed acceptable.
Upon careful examination of all tenders and relevant documents received to date, the
Engineering Services Department recommends acceptance of the compliant low bid
submitted by TACO Construction Ltd. for Tender No. T-12-2019 in the amount of
$6,702,841.28 (HST included), and that the total net project cost of $8,131,181.00 (net
of HST rebate) including associated costs and a 12 per cent project contingency be
approved.
The estimated project cost includes the works to be constructed under Tender No. T-12-
2019, consulting fees for contract administration and inspection services provided by
Sabourin, Kimble & Associates Ltd. and their sub -consultants, and tree removals that
were completed in April 2019. Other costs include a landscaping allowance for the
stormwater management pond and street trees, and the Infrastructure Ontario (10)
License/Rental Fee for works on lands under their ownership. As the City will be
purchasing these lands from 10, the City is negotiating with 10 for the rental fee to be
credited back on closing.
Attachments:
1. Supply & Services Memorandum dated July 8, 2019
2. Record of Tenders Opened and Checked
3. Proposal from Sabourin, Kimble & Associates Ltd. dated July 12, 2019
4. Location Map
CAO 06-19
Subject: Municipal Servicing 407 Corridor Lands Phase One
Tender No. T-12-2019
July 22, 2019
Page 7
Prepared By: Approved/Endorsed By:
Richard Holborn, P.Eng
Director, Engineering Services
Richard Holborn, P.Eng
Director, Engineering Services
Ray Rodri:ues, CPPB Stan Karwowski, MBA, CPA, CMA
Manager,upply & Services Director, Finance & Treasurer
James Halsall, CPA, CA
Manager, Budgets & Internal Audit
Fiaz Jadoon, Ec.D.,CEcD, MPM
Manager, Economic Development &
Strategic Projects
RH:mjh
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
(7, 2017
cd - y4
DICKERING
Attachment # 1 to Report # CAO 06-19
Memo
To: Stan Karwowski July 8, 2019
Director, Finance & Treasurer
Richard Holborn
Director, Engineering Services
From: Justin MacDonald
(Acting) Senior Purchasing Analyst
Copy: Administrative Assistant, Finance
Ray Rodrigues Manager, Supply & Services
Subject: Tender No. T-12-2019
Tender for Municipal Servicing 407 Corridor Lands Phase One "B"
Closed: Thursday, July 4, 2018 — 2:OOpm
File: F-5400-001
Tender No. T-12-2019 was advertised on the City's website on June 7, 2019. Five companies
have submitted a bid for this project. One submission was rejected, as per the Purchasing
Policy, Section 23.02 (item 15) partial bid (all items not 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 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 Excluded
Bidder
Total Tendered Amount
After Calculation Check
TACC Construction Ltd.
$5,931,717.95
$5,931,717.95
Pilen Construction of Canada Ltd.
$8,031,180.54
$8,031,180.54
Elirpa Construction & Materials Ltd.
$8,755,281.16
$8,755,281.16
Clearway Construction Inc.
$15,330,501.10
$15,330,501.10
Con -Drain Company (1983) Ltd
Automatic Rejection: Purchasing Policy No. PUR 010,
Item 23.02 (15)
Partial bid (all items not bid)
Pursuant to Information to Bidders Item 28 Pre -Condition of Award and Item 20 Tendering
Specifications, the following documentation will be requested of TACC Construction Ltd. 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) The City's certificate of insurance or approved alternative form completed by the Bidder's
agent, broker or insurer.
A budget of $11,000,000.00 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 Item (a) is acceptable to the Manager, Budgets & Internal Audit;
2. if the list of subcontractors is acceptable to Engineering Services;
3. any past work experience with low bidder TACC Construction Ltd including work location;
4. without past work experience, if reference information is acceptable to Engineering
Services;
5. the appropriate account number(s) to which this work is to be charged;
6. the budget amount(s) assigned thereto;
7. Treasurer's confirmation of funding;
8. related departmental approvals; and
9. 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 you require further information, please feel free to contact me or a member of Supply &
Services.
JM
Attachments
July 8, 2019
Tender No. T-12-2019 Page 2
Attachment # 2 to Report # CAO 06-19
C44
PICKERING
City of Pickering
Record of Tenders Opened and Checked
Tender Description: Municipal Servicing 407 Corridor Lands Phase One "B"
Tender No.: T-12-2019
Date: Wednesday, Month Day, 2019
Time: Approx. 2:15 pm Local Time
Bidder Name
Total Tendered Amount
Bidder Sign In
Comments
Clearway
Construction Inc.
_
$ \S- p , > 0\ , I, O
- /,'�,�
Con -Drain Group
1 I
$5/{00
5/ l `0 f D
- 7
Bid rejected: Failure to return
the document as specified 23.02
its 1
Elirpa Construction &
Materials Ltd.
Pilen Construction of
Canada Ltd.
$ 13 , 0 ( 1 0 C �I
1
TACC Construction
Ltd.
$
City Staff Present
Other
The nformation is strictlypreliminary,pendingreview and verification of conformance to terms, conditions and specifications.
p
Attachment # 3 to Report # CAO 06-19
SKA
SABOURIN KIMBLE
& ASSOCIATES LTD.
CONSULTING ENGINEERS
110 Old Kingston Road
Ajax, Ontario
LIT 2Z9
Phone: (905) 426-9451
July 12, 2019
FILE: 18:400/Correspondence/Proposals
City of Pickering
One the Esplanade
Pickering, Ontario
L1 V 6K7
Attention: Mr, Fiaz Jadoon
Manager, Economic Development & Strategic Projects
Dear Mr. Jadoon,
SUBJECT: PROPOSAL FOR CONSULTING ENGINEERING SERVICES
CONTRACT ADMINISTRATION AND RESIDENT INSPECTION SERVICES
PEL/KUBOTA PROJECT
Pursuant to our recent discussions, as a continuation of our Project Management and Detailed
Engineering Design services on the above -referenced project, we are pleased to provide you
with this brief outline of our proposed contract administration and resident inspection services,
and those of other professional consultants, required to bring this project to a successful
completion during the impending construction phase. This phase of the work pertains to the
City's construction obligations of the external services required in conjunction with the new
Kubota plant facility.
Contract Administration and Resident Inspection Services:
Sabourin Kimble & Associates Ltd. will provide complete contract administration and resident
inspection services during the construction phase of this project. As part of these services, SKA
will also coordinate all other professional disciplines required during construction, ensuring "one
stop shopping" for the City of Pickering in regards to all of the professional services required to
bring this project to a successful completion. This facet of the assignment will be project
managed on a day to day basis by Mr, Thomas Evans, and the fulltime site inspection will be
provided by Mr. Tyler Moulaison, Both of these individuals have extensive experience in the City
of Pickering and as well, the undersigned will continue to oversee all SKA involvement with this
project.
Proposed Fees and Budget: We propose that the contract administration and resident
inspection services from the start of construction up to base course asphalt be carried out for a
fixed fee of 2.50% of the Total Cost of Works. Based on the tendered net construction value of
approximately $5.6M, this equates to a fee of approximately $140,000. For contract
administration and inspection services after construction of base course asphalt up to
assumption, we propose to carry this work out on a time spent basis at our Standard Hourly
Rates. For budgeting purposes, we suggest a budget of $70,000
Geotechnical and Materials Testing Services:
This component of the project will require the services of a geotechnical consultant for all
materials testing during construction. We propose to continue to retain exp Limited for this
assignment, as they were the consultants that carried out the geotechnical engineering
investigations for detailed engineering design purposes,
Proposed Fees and Budget: We proposed that this work be carried out on a time spent basis
at exp's Standard Hourly Rates. For budgeting purposes, we suggest a budget of $75,000.
Additional Consulting Services:
This construction component of the project will require the services of several other professional
disciplines such as surveying, landscaping, and electrical consulting/inspection services.
Proposed Fees and Budget: We propose that this work also be carried out on a time spent
basis and for budgeting purposes, we suggest a budget of $80,000 for all other disciplines.
SUMMARY:
In closing, we trust that this proposal is a complete summary of the various construction
requirements to bring this project to a successful completion. Sabourin Kimble & Associates
Ltd. is committed to bringing to the project staff resources and associated consultants that are
second to none in their background knowledge of the Seaton project and their respective areas
of expertise.
We are of course available at your convenience to discuss this proposal and the project in
greater detail with staff and/or your Council, at your discretion.
We look forward to continuing to work with you on this very exciting project, and seeing the
Kubota plant facility successfully completed.
Yours very truly,
SABOURIN KIMBLE & ASSOCIATES LTD.
Richard T. Sabourin, P. Eng.
RTSIjm
cc: City of Pickering — Mr. Richard Holborn, P. Eng.
cc: Municipal Engineering Solutions — Mr. John Bourrie, P. Eng.
DICKERING
Attachment # 4 to Report # CAO 06-19
Office of the Chief Administrative Officer
Tender No. T-12-2019
Municipal Servicing 407 Corridor Lands Phase One
LANDS
TO BE
SERVICED
qHIi1'
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Location Map — Pickering Innovation Corridor
Municipal Servicing — Phase One