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Home My WebLink AboutENG 03-17��:� o� I'1CKE �.� NG From Subject: Richard Holborn Director, Engineering Services Report to Council Report Number: ENG 03-17 Date: May 15, 2017 Consulting Services for Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) File: A-1440 Recommendation: That Council approve the hiring of AECOM Canada Ltd. for the Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) in accordance with Purchasing Policy 10.03 (c) as the assignment has a value above $50,000.00 and a competitive process is not being followed, and therefore is subject to additional Council approvals; 2. That the fee proposal dated April 25, 2017 submitted by AECOM Canada Ltd. for the Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) for Tasks 1 to 5 in the amount of $547,784.45 (HST included) be accepted; 3. That the total gross project cost of $512,171.00 (HST included), including the proposal amount related to Tasks 1 to 3 only, and other associated costs, and the total net project cost of $461,226.00 (net of HST rebate) be accepted; 4. That Council authorize the Director, Finance & Treasurer to finance the total net project cost of $461,226.00 as follows: a) The sum of $62,500.00 as approved in the 2017 Capital Budget — Development Projects to be funded by a transfer from the Development Charges City's Share Reserve; b) The sum of $187,500.00 as approved in the 2017 Capital Budget — Development Projects to be funded by a transfer from the Development Charges Roads & Related I�eserve Fund; c) The additional sum of $52,807.00 required to offset the shortfall from the Development Charges City's Share Reserve be funded by a front funding arrangement with 2531751 ONTARIO INC., the owner of the lands at the northwest corner of Liverpool Road and Highway 401; d) The additional sum of $158,419.00 required to offset the shortfall from the Development Charges Roads & Related Reserve be funded by a front funding arrangement with 2531751 ONTARIO INC.; ENG 03-17 May 15, 2017 Subject: Consulting Services for Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) Page 2 5. That the funds required for Tasks 4 and 5 in the amount of $96,556.24 (HST included) and any required associated costs be included with the cost of construction in the appropriate year and be subject to approval through the future year's Capital Budget process; 6. That the amount front funded pursuant to Recommendations 4(c) and (d) above be reimbursed to 2531751 ONTARIO INC. upon issuance of a building permit on the affected lands at the northwest corner of Liverpool Road and Highway 401 that meet the requirements under the City Centre Zoning By-law 7553/17; 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 2017 Capital Budget — Development Projects, the Walnut Lane Extension Class Environmental Assessment and Detailed Design was approved as a project. Request for Proposal No. RFP-13-2016 was issued on December 15, 2016 and closed on January 24, 2017. The Evaluation Committee reviewed and evaluated the six proposals received using criteria outlined in the Terms of Reference. However since all the proposals submitted substantially exceeded the available budget, the proposal call was cancelled and the respondents were notified of such on March 2, 2017. As this project and the construction of the proposed road affects future development lands at the northwest corner of Liverpool Road and Highway 401, and previously developed lands further west, south of Kingston Road, which are all owned by 2531751 ONTARIO INC., they were advised of the project cancellation. In consultation with 2531751 ONTARIO INC. after the project was cancelled, they offered to front fund the amount that exceeds the budget as long as the City agrees to reimburse them upon building permit issuance on the affected lands. City staff are acceptable to this position but under the condition that the building permit that triggers the reimbursement meets the requirements of the City Centre Zoning By-law 7553/17. A letter to this effect has been received from 2531751 ONTARIO INC. and is included as Attachment #2. Based on the above, City staff negotiated a revised proposal from AECOM Canada Ltd. who was the consultant that submitted the highest scoring proposal through RFP-13-2016. In accordance with City Purchasing Policy section 10.03 c), where a competitive process is not followed, the Director initiating the assignment shall require Council approval to engage the services of a particular consultant. The Director, Engineering Services is recommending Council approval to retain AECOM Canada Ltd. for this assignment. Due to funding restraints, the initial project award will consist of Tasks 1, 2 and 3 outlined in AECOM Canada Ltd.'s proposal at this time. Tasks 4 and 5 relate to project tendering, construction inspection and contract administration, therefore the fee proposal is accepted but will be funded in a future year along with construction. CORP0227-07/01 revised ENG 03-17 Subject: Consulting Services for Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) Financial Implications: 1. Proposal Amount Proposal from AECOM Canada Ltd. dated April 25, 2017 Walnut Lane Extension Class Environmental Assessment and Detail Design HST (13%) Tota I 2. Estimated Project Costing Summary Proposal (Tasks 1, 2, and 3 only) Associated Costs . Contingency (10% ) � Toronto and Region Conservation Authority Class EA Review Cost Sub Total — Costs HST (13%) Total Gross Project Cost HST Rebate (11.24%) Total Net Project Cost 3. Approved Source of Funds Expense Code 5321.1703.6251 5321.1703.6251 Additional Funds Required Total Funds Source of Funds DC City's Share Reserve DC Roads & Related Reserve Fund ' Budget $62,500.00 187,500.00 0.00 $250,000.00 May 15, 2017 Page 3 $484,765.00 63,019.45 $547,784.45 $399,317.00 ' 39,932.00 $14,000.00 � $453,249.00 58, 922.00 $512,171.00 (50,945.00) $461,226.00. Required $62,500.00 187,500.00 211,226.00 $461,226.00 � Net pro"ect costs over) under ap roved funds ($211,226.00) The additional funds required will be provided by 2531751 ONTARIO INC. through a front funding agreement. The repayment to 2531751 ONTARIO INC. is at the building permit stage and this condition is reflected in Recommendation 6. � CORP0227-07/01 revised ENG 03-17 Subject: Consulting Services for Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) May 15, 2017 Page 4 Discussion: The 2017 Capital Budget — Development Projects included $250,000.00 for the completion of the Walnut Lane Extension Class Environmental Assessment and Detailed Design. Walnut Lane is a north-south collector roadway, under the jurisdiction of the City of Pickering. It is a two lane urban cross section road that connects Glenanna Road to Kingston Road. South of Kingston Road it currently provides driveway access to a private commercial development complex, including Home Depot, Shoppers Drug Mart, Michaels, restaurants, and offices. The driveway consists of two through lanes and one northbound left turn lane. Growing traffic volumes and future potential development in the area has triggered the need for the extension of Walnut Lane as a public roadway from Kingston Road to Liverpool Road, on the south side of Kingston Road. A consultant is required to carry out the Class Environmental Assessment (EA) and Preliminary Design for the extension of Walnut Lane (including the structure over Pine Creek) from Kingston Road to Liverpool Road (as shown on the location map Attachment #1), and also complete a Detailed Design package including detailed design drawings and tender specification documents for the road extension and the structure. The consultant wilf also provide contract administration and field inspection during construction of the road and the structure over Pine Creek, at a future date subject to the required budget approval. As part of the EA, the consultant will be responsible to review all the possible transportation connections, including Walnut Lane to the Highway 401 Westbound off ramp at the existing signalized intersection at Liverpool Road, and Walnut Lane to Pickering Parkway at the existing signalized intersection at Liverpool Road, as an additional connection. The final detail design will be completed only for one option, depending on the EA recommendations. A Request for Proposal (RFP) for Consulting Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) was issued RFP-13-2016 was issued on December 15, 2016 to obtain proposals to undertake the Class Environmental Assessment and Detail Design of the Walnut Lane Extension (Kingston Road to Liverpool Road). The RFP process closed on January 24, 2017, with six proposals submitted. The City received submissions from the following consulting firms: • AECOM Canada Ltd. • BT Engineering • Chisholm, Fleming & Associates • Morrison Hershfield Ltd. • R.J. Burnside • Stantec CORP0227-07/01 revised ENG 03-17 Subject: Consulting Services for Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) May 15, 2017 Page 5 The proposals were reviewed by the Evaluation Committee consisting of staff from the Engineering Services Department. Proposals were evaluated based on the consultant's experience on similar projects, their understanding of the project, proposed work plan and deliverables, project team overview, quality of their references, quality of their proposal and pricing. The proposal submitted by AECOM Canada Ltd. received the highest average score. The RFP process was cancelled as all the proposals that were submitted exceeded the budget for the project. As this project and the construction of the proposed road affects future development lands at the northwest corner of Liverpool Road and Highway 401, and previously developed lands further west, south of Kingston Road, which are all owned by 2531751 ONTARIO INC., they were advised of the project cancellation. In consultation with 2531751 ONTARIO INC. after the project was cancelled, they offered to front fund the amount that exceeds the budget as long as the City agrees to reimburse them upon building permit issuance on the affected lands. City staff are acceptable to this position but under the condition that the building permit that triggers the reimbursement meets the requirements of the City Centre By-law 7553/17. A letter to this effect has been received from 2531751 ONTARIO INC. and is included as Attachment #2. Based on the above, City staff negotiated a revised proposal from AECOM Canada Ltd. who was the consultant that submitted the highest scoring proposal through RFP-13-2016. In accordance with City Purchasing Policy section 10.03 c), where a competitive process is not followed, the Director initiating the assignment shall require Council approval to engage the services of a particular consultant. The Director, Engineering Services is recommending Council approval to retain AECOM Canada Ltd. for this assignment. Due to funding restraints, the initial project award will consist of Tasks 1, 2 and 3 outlined in AECOM Canada Ltd.'s proposal at this time. Tasks 4 and 5 relate to project tendering, construction inspection and contract administration, therefore the fee proposal is accepted but will be funded in a future year along with construction. Attachments: 1. Location Map 2. Letter from 2531751 ONTARIO INC. regarding front funding commitment CORP0227-07/01 revised ENG 03-17 Subject: Consulting Services for Class Environmental Assessment and Detailed Design Services for the Walnut Lane Extension (Kingston Road to Liverpool Road) RH:mjh Recommended for the consideration of Pickering City Council � Tony Prevedel,�P.Eng. Chief Administrative Officer CORP0227-07/01 revised May 15, 2017 Prepared/Approved/Endorsed By: G�� Ric rd Hol orn, P.Eng. ' ector, Engineering Services Stan Karwowski, MBA CPA, CMA Director, Finance & Treasurer 8� 20�7 � Page 6 ATTACIiMENT��- TO REPOitT# r� �"1 � 3�" ��' _� __�,. �--. Engineering Services Department Location Map Ct� o� Report ENG 03-17 P�CKER�NG SCALE: DATE: � N.T.S. April 25 /2017 ATTACFiMENT#! Z TOREPORT# �^��'� 03�� :�, ... l �{ r """,�;�;,:_. �� '�" ---- 2531751 Q1�'T_�R.�� G. May 8, 2017 The Corporation of the City of Pickering One The Esplariade Pickering, ON LI V 6K7 Attn: Richard Holborn RE: Walnut Lane Extension We are wriiing further to our discussions with the City relating to the Ciass Environmenial Assessment and Detailed Design Services for the Walnut t.ane Exfension project {the "Project").. We srrongly support the City's commencement of the Project — tHis Project will assist in unleashirig the potential of this area of the City Ce��tre. As a sign of our support, we wish to confirm to you the following: the sums of �52,807.00 (required to offset the shortfall from the City's Development Charges City's Share Reserve) and $158,419..00 (required to offset the shortfall from the City's Develapment Charges Roads & Related Reserve) wiIl be front-funded by 2531751 Ontario Inc. As agreed with the City, these sums will be applied by the City toward the cost o.f retainin� AECOM Canad� Ltd. to ,perform a Class Environmental Assessment �nd Detailed Design Services for the City's Walnut Lane Extension Project (Kingston Road to Liverpool Road). We have also agreed with the City that. we will front- fund these amounts on the understanding that they will be reimtiursed by the Gity to 2531751 Ontario Inc. .if and when (a) a buildin.g pemut is issued in respec;t af the lands owned by 2531751 Ontario Inc. a{ the northwest eorner of Liverpool Road and Highway 401, and (b) the building pernut atlaws construction that meets the requiremenis of .Pickering City Centre Zoning By-law 7533/17. We.will provide the front ending funds as they are required-upon execution of a letter of understanding be2ween 25317�51 Ontario Tnc. and the City has expended its funds for the Projec:t as set out.in the May 15,.241'7 report, We would also like to take this opportunity to thank the municipality fo.r its prac�ical and cooperative approach to working with property owners in the City Centre arid express our appreciation of #he same. Please contact the undersigned if you should have any questions. Yaurs truly, �'� ,.�� ,��' Ingnd f3�soleil t Director of Development (416) 687-6723 66 Wellington Street West, Suite 4400 Toronto, ON MK5 1 Hb