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Home My WebLink AboutENG 13-14 city 00 Report to Executive Committee I SOMME Report Number: ENG 13-14 Date: July 7, 2014 From: Richard Holborn Director, Engineering & Public Works Subject: Additional Costs for Tender No. T-1-2013 - Asphalt Resurfacing on Various City Streets - File: A-1440 - Recommendation: 1. That Report ENG 13-14 of the Director of Engineering & Public Works regarding additional costs for Tender No. T-1-2013 for Asphalt Resurfacing on Various City Streets be received; 2. That the additional costs in the approximate amount of$248,416.51 (net of HST rebate) over the original tender amount for Tender No. T-1-2013 Asphalt Resurfacing on Various City Streets resulting in a revised tender amount of $1,355,628.40 (net of HST rebate) be approved; • 3. That the revised total net project cost for Asphalt Resurfacing on Various City Streets be increased by $119,877.00 from $1,244,925.00 to $1,364,802.00; 4. That Council authorize the Division Head, Finance and Treasurer to fund the sum of$119,877.00 from the Federal Gas Tax Reserve Fund; and 5. That the appropriate City of Pickering officials be authorized to take the necessary • actions to give effect hereto. Executive Summary: As part of the 2013 Roads Capital Budget, Asphalt Resurfacing on Various City Streets were approved as construction projects. Tender No. T-1-2013 Asphalt Resurfacing on Various City Streets was awarded to the low bidder D.Crupi & Sons Limited through the approval of Report ENG 03-13 in April 2013, subsequently Purchase Order 230231. Due to underlying granular base conditions and high ground water table on Annland Street, Downland Drive, Eyer Drive and Radom Street, additional costs were incurred during construction in order to complete the project in a timely and acceptable manner. Asphalt pavement, concrete curb and gutter and sidewalk removals and replacements on the majority of streets exceeded the tender estimates. 263 Report ENG 13-14 July 7, 2014 . Subject: Additional Costs for Tender No. T-1-2013 Asphalt Resurfacing on Various City Streets Page 2 Senior staff from Engineering & Public Works administration extensively reviewed the • contractor's invoice and have confirmed that the additional work and corresponding materials were delivered and used for this project. 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 expenditure does not exceed the lesser of 10% of the approved capital expenditure or $100,000. Council approval is required as this over expenditure exceeds the $100,000 limit. Financial Implications: The following is a breakdown of the project costs related to the Asphalt Resurfacing On Various City Streets (Tender No. T-1-2013), as reported in Report to Council ENG 03-13, as well as actual costs incurred, thereby indicating the additional funds that are required. 1. Approved Cost per ENG 03-13 Tender No. T-1-2013 -Asphalt Resurfacing $1,088,062.00 on Various City Streets • Associated Costs Materials Testing 25,025.00 Miscellaneous Costs 1,500.00 Construction Contingency (10%) 108,806.00 Sub Total Costs 1,223,393.00 HST (13%) 159,041.00 Total Gross Project Costs 1,382,434.00 HST Rebate (11.24%) (137,509.00) Total Net Project Costs $1,244,925.00 2. Actual Cost Tender Amount (including Change Orders & $1,332,182.00 additional Tender Quantities) Material Testing & Miscellaneous Costs 9,015.00 Total Project Cost (excl. taxes) 1,341,197.00 Net HST cost to City (1.76%) 23,605.00 Net Project Cost to City (incl. 1.76%) 1,364,802.00 Approved Funds as indicated in ENG 03-13 (1,244,925.00) Additional Funds Required $119,877,00 CORP0227-07/01 revised 264 Report ENG 13-14 July 7, 2014 Subject: Additional Costs for Tender No. T-1-2013 Asphalt Resurfacing on Various City Streets Page 3 Discussion: Tender No. T-1-2013 was completed in late fall of 2013, but the final invoicing was not received until April 2014. It took the contractor a substantial amount of time to provide the necessary documentation to process 13 extra work orders and the additional tender quantities. Upon staff's review of the final invoicing it was determined that total net project cost was exceeded by $119,877.00 (net of HST rebate). The original total net project cost has been exceeded by$119,877.00 due to the required change orders to cover actual field quantities for asphalt pavement and concrete sidewalk and curbs exceeding the original tender estimates for this project. In several cases, the asphalt pavement went beyond the limits of the tender estimates to include intersections of adjoining streets to address localized drainage issues. Due to underlying granular base conditions and high water table on Annland Street, Downland Drive, Eyer Drive and Radom Street, to address the unstable subgrade conditions, additional excavation of the subgrade was required. The placement of 50mm clear limestone was used to stabilize the subgrade. The high ground water table was lowered sufficiently by the installation of sub-drains. These additional costs were incurred during construction in order to complete the project in a timely and acceptable manner. Staff is recommending that Council approve additional funding in the amount of $119,877.00 from Federal Gas Tax Reserve Fund in order to cover the additional construction costs. 'Attachments: 1. N/A CORP0227-07/01 revised 265 Report ENG 13-14 July 7, 2014 Subject: Additional Costs for Tender No. T-1-2013 Asphalt Resurfacing on Various City Streets Page 4 Prepared By: Approved/Endorsed By: //glad r' sly '# Darrell Selsky, CMM Ill Richar• 'olborn '. Eng Manager, Capital Projects & Infrastructure Direc .r, Engineering & Public Works Stan Karwowski, MBA CPA, CMA Division Head, Finance & Treasurer DS:ds Recommended for the consideration of Pickering Ci Council /afield jaAte. Z `20/4 Tony Prevedel, P.Eng. . Chief Administrative Officer 266 CORP0227-07/01 revised