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HomeMy WebLinkAboutOES 34-09 29 Cif REPORT TO COUNCIL I CKERIN Report Number: OES 34-09 Date: July 13, 2009 From: Everett Buntsma Director, Operations & Emergency Services Subject: Sideline 4 Road Reconstruction - Phase Two - Tender T-10-2009 for Sideline 4 Road Reconstruction -Phase Two - File: A-1440 Recommendations: 1. That Report OES-34-09 of the Director, Operations & Emergency Services regarding Sideline 4 Road Reconstruction - Phase Two be received; 2. That Tender T-10-2009 submitted by Montgomery MacEwen Contracting for Sideline 4 Road Reconstruction - Phase Two at a cost of $868,333.66 (GST included) be accepted; 3. That the total gross project cost of $1,071,000 (GST included) including the tender amount and other associated costs and the total net project cost of $1,020,000 be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to finance the project as follows: a) that the sum of $680,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten (10) years, at a rate to be determined; b) that the sum of $190,000 be funded from the Development Charges Reserve Fund; c) that the sum of $150,000 be funded from the Third Party Contribution Reserve Fund; d) that the annual repayment charges in the amount of approximately $84,880 be included in the annual Current Budget for the City of Pickering commencing in 2010, continuing thereafter until the loan is repaid, and any financing cost to be paid out of the Current Budget; Report OES 34-09 July 13, 2009? Subject: Tender T-10-2009 for Sideline 4 Road Reconstruction - Phase Two Page 2 e) the Director, Corporate Services & Treasurer has updated the City's 2009 Annual Repayment Limit and certified that this loan and the repayment thereof falls within the City's Annual Repayment Limit (Limit) for debt and financial obligations, as established by the Province for municipalities in Ontario, and would not cause the City to exceed the updated Limit, and therefore, Ontario Municipal Board approval is not required prior to City Council's authorization; f) undertake the financing of this project or portions thereof that cannot be accommodated through the foregoing through internal loans, Infrastructure Ontario - OSIFA Loan Program, or a financial institution offering long term financing under similar terms and conditions; g) to make any changes, adjustments, and revisions to amounts, terms, conditions or any other actions necessary in order to effect the above directions of Council; h) the Treasurer is authorized to take any actions necessary in order to effect the foregoing; 5. That the draft by-law attached to this report be enacted; and 6. That the appropriate City of Pickering officials be authorized to take necessary action to give effect thereto. Executive Summary: As part of the 2009 Development Projects Capital Budget, Sideline 4 Road Reconstruction - Phase Two (Highway 7 to 1200 metres south) was approved as a construction project. Tender T-10-2009 was issued on Tuesday, June 9, 2009 and closed on Wednesday, June 24, 2009 with six (6) bidders responding. The total gross project cost is estimated to be $1,071,000 and an estimated net cost to the City of $1,020,000 (net of GST rebate). The City's purchasing policy requires staff to report to Council on results of the tender and financing in order to proceed with this project in a timely manner. Financial Implications: 1. TENDER AMOUNT T-10-2009 $826,984.44 GST 41,349.22 Sub-Total 868,333.66 GST Rebate (41,349.22) Total $826,984.44 Ppport OES 34-09 July 13, 2009 L 7 c_ Subject: Tender T-10-2009 for Sideline 4 Road Reconstruction - Phase Two Page 3 2. SOURCE OF FUNDS Development Projects Capital Budge t Location Project Code Source of Funds Budget Required Sideline 4 5321.0901.1702 Debt (10 Year) 680,000 680,000 Sideline 4 5321.0901.7610 DC Roads & Related 190,000 190,000 Sideline 4 5321.0901.7501 Third Party Contribution - 150,000 FUNDS AVAILABLE 870,000 1,020,000 3. ESTIMATED PROJECT COSTING SUMMARY T-10-2009 - Tender for Sideline 4 Road Reconstruction 826,984 Phase Two Associated Costs Materials Testing 15,000 Utility Relocations 50,000 Planting Restoration Requirements by TRCA 20,000 Consultant Fees 25,700 Miscellaneous Costs 2,500 Construction Contingency 79,816 Total $1,020,000 GST 51,000 Total Gross Project Cost $1,071,000 GST Rebate 5( 1,000) Total Net Project Cost $1,020,000 Project Cost under (over) approved funds by nil The total estimated net project cost has exceeded the approved budget for this project due to design changes to accommodate all Toronto Region Conservation Authority (TRCA) requirements. However $150,000 was collected as part of a sub-division agreement to be used toward this project. These funds, which were deposited in the Third Party Contribution Reserve Fund, will provide the additional financing. Report OES 34-09 July 13, 2009 Subject: Tender T-10-2009 for Sideline 4 Road Reconstruction - Phase Two Page 4293 The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs. Sustainability Implications: This project will allow for the hard surfacing of the roadway improving the geometrics and vehicular movement in this area. This project will also reduce maintenance requirements and cost for years to come due to the road no longer requiring constant grading, additional granular material placement and annual dust suppression. Background:' As part of the Development Projects (D.C.Funded) 2009 Capital Budget, Sideline 4 Road Reconstruction - Phase Two was identified as a construction project. In order to satisfy TRCA requirements for this project, the detail design has been revised to include the construction of a new water course, hydro pole relocation and planting restoration. These changes have now brought this project over the Approved Development Projects Budget for 2009. With the approval of draft plan 18T- 88059 (Estate residential subdivision adjacent to Sideline 4) 15 lots were proposed to front onto Sideline 4, and as a condition of this approval the developer was required to contribute $150,000 towards the cost of the road reconstruction fronting the development. These funds have been deposited in the Third Party Contribution Reserve Fund to be used towards this project and will provide the additional funding necessary. Tender T-10-2009 was issued on Tuesday, June 9, 2009 and closed on Wednesday, June 24, 2009 with six (6) bidders submitting a bid. The low bid was submitted by Montgomery MacEwen Contracting. The total gross project cost is estimated to be $1,071,000 for an estimated net cost to the City of $1,020,000 (net of GST rebate). Montgomery MacEwen Contracting has previously worked for the City on Tender T-2- 2007 Sheppard Avenue Reinforced Soil System and is deemed acceptable by the Supervisor, Engineering & Capital Works. The Health & Safety Policy, current WSIB Council Amendment to Draft #7 (CAD-7), Certificate of Clearance issued by Workplace Safety & Insurance Board and Certificate of Insurance as submitted by Montgomery MacEwen Contracting have been reviewed by the Coordinator, Health & Safety and deemed acceptable. In conjunction with staff's review of the contractor's previous work experience, check of references submitted and the bonding available on this project, the tender is deemed acceptable. o~t OES 34-09 July 13, 2009 Subject: Tender T-10-2009 for Sideline 4 Road Reconstruction - Phase Two Page 5 Upon careful examination of all tenders and relevant documents received, the Operations & Emergency Services Department, Municipal Property & Engineering Division recommends the acceptance of the low bid submitted by Montgomery MacEwen Contracting for Tender T-10 -2009 in the amount of $868,333.66 (GST included) and that the total net project cost of $1,020,000 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Location Map 2. Supply & Services Memorandum dated June 29, 2009 3. By-Law to authorize the City Road Reconstruction for Sideline 4 Road Reconstruction - Phase Two and the issuance of debentures in the amount of $680,000. Prepared By: Approved / Endorsed y: Darr I B. Se ky, Everett unts a Su rvisor, Engineering & Capital Works Director, Operations & Emergency Services Vera A. F emacher illis A. Paterson C.P.P., CPPO, CPPB, C.P.M., CMM III Director, Corporate Services & Treasurer Manager, Supply & Services GCf 7~~ RPision rd W. olborn, P. Eng. DHead Municipal Property & Engineering DS:nw Attachments Report OES 34-09 July 13, 2009 Subject: Tender T-10-2009 for Sideline 4 Road Reconstruction - Phase Two Page 6 2 9 Copy: Chief Administrative Officer (Acting) Chief Administrative Officer Recommended for the consideration of Pickering City Council I ' ~ z (4-d T mas J Qu' , R , CMM III Chief Administrative Officer ~:....~,V.,.r•~R'~"~~.~ j.,..m.l"OREPORT# dEs 34-~~ ICI ' I I 296 MUNICIPAL PROPERTY & ENGINEERING Attachment for Tender T-10-2009 SIDELINE 4 HIGHWAY 7 7 7 KINSALE W U ~ Q HO 1WOOD SUBJECT o W o 0 14 AREA 23z_ W p W W - z J D -Z-- W o Q z a --0- rn F- m W~ P Y FIFTH CONCESSION ROAD y i TUIIVP~# OF j AJAX LOCATION MAP PROPOSED CONSTRUCTION INCLUDES: Complete reconstruction of Sideline 4 which includes, • Installation of a new and wider road, complete with new granular base and base asphalt • Drainage improvements where necessary Complete ditch restoration (fine grading and sodding where required) • to all areas affected by construction Z oE5 34-01 Call 0~ 2 9 7 PICKERING MEMO To: Richard Holborn June 29, 2009 Division Head, Municipal Property & Engineering From: Vera A. Felgemacher Manager, Supply & Services Copy: Superintendent, Engineering & Capital Works Subject: Tender No. T-10-2009 Tender for Sideline 4 Road Reconstruction Phase two Closing: June 24, 2009 Tenders have been received for the above project. Nine (9) companies were invited to participate. An advertisement was placed in the Daily Commercial News and on the City's Website. A total of eleven (11) companies picked up tendering documents of which seven (7) bidders responded and submitted a tender 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 90 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. SUMMARY PST & GST included Bidder Total Tendered Amount $ After Calculation Check $ Montgomery MacEwan $868,333.66 $868,333.66 Contracting Elirpa Construction & Materials $966,628.27 $963,588.27 Ltd. Ambler & Co. Inc. $1,012,571.12 $1,012,571.12 Coco Paving Inc. $1,031,923.94 $1,031,923.94 Pilen Construction of Canada Ltd. $1,053,672.58 $1,053,672.58 Automatic rejection - Bid Deposit not sufficient. Reference: Ron Robinson Ltd. Purchasing By-law No. 5900-01, Procedure No. PUR 010-001, 10.04, Item 9d, TS Item 3, IB, 16, 17, 18. Serve Construction Late I-OR 298 Pursuant to Information to Bidders Item 20, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. (a) a copy of the current and dated 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) the City's Certificate of Insurance completed by the bidder's agent, broker or insurer; Include the following items in your Report to Council: (a) if items (a). through (d) noted above, are acceptable to the Co-ordinator, Health & Safety (b) any past work experience Montgomery MacEwan Contracting including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work is to be charged; (e) the budget amount(s) assigned thereto; (f) Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of Montgomery MacEwan Contracting is not acceptable; and (i) related comments specific to the project. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. 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. Vera A. elgemacher VF/jg Attachments Tender No. T-10-2009 Tender for Sideline 4 Road Reconstruction Page 2 Phase Two 299 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law to authorize the Sideline 4 Road Reconstruction - Phase Two in the City of Pickering and the issuance of debentures therefore in the amount of $680,000. 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 construction to proceed in respect of the Sideline 4 Road Reconstruction - Phase Two, project; and, WHEREAS before authorizing the construction to proceed in respect of the Sideline 4 Road Reconstruction - Phase Two, project on the date hereof 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 is not required as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; and, 3 REpoRT# QtE -s .34 I Page 2 By-law No. AND WHEREAS after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report OES 34-09 on the date hereof and awarded Tender T-10-2009 for the Sideline 4 Road Reconstruction - Phase Two, project. NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS: 1. That the City proceed with the construction of the project referred to as "Sideline 4 Road Reconstruction - Phase Two project"; 2. That the estimated costs of the construction in the amount of $1,020,000 be financed as follows: a) That the sum of $680,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten (10) years; b) That the sum of $190,000 be funded from the Development Charges Reserve Fund; c) That the sum of $150,000 be funded by the Third Party Contribution - Sideline 4 Reserve Fund; 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 2010 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 13th day of July, 2009. David Ryan, Mayor Debi A. Wilcox, City Clerk