HomeMy WebLinkAboutJuly 12, 2017 - Special
Special Council Agenda
Wednesday, July 12, 2017
Main Committee Room
11:00 am
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4. That the appropriate officials of the City of Pickering be authorized to take the
necessary actions as indicated in this report.
IV) Confirmation By-law
V) Adjournment
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From: Richard Holborn
Director, Engineering Services
Subject: Additional Costs for Tender T-3-2016
Report to
Council
Report Number: ENG 18-17
Date: July 12, 2017
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.
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ENG 18-17
Subject: Additional Costs for Tender T-3-2016
Squires Beach Road & Clements Road
Intersection Improvements & Signalization
July 12, 2017
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 amountfrom 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
Associated Costs
Land Acquisition
Region Traffic Signal Installation
Materials Testing
Construction Contingency (1 0%)
Sub Total-Costs
HST 13%
Total Gross Project Costs
HST Rebate (11.24%)
Total Net Project Costs
CORP0227-07/01 revised
$376,763.00
10,000.00
125,000.00
2,500.00
37,676.00
$551,939.00
71,752.00
$623,691.00
(62,038.00)
$561,653.00
ENG 18-17
Subject: Additional Costs for Tender T-3-2016
Squires Beach Road & Clements Road
Intersection Improvements & Signalization
2. Revised Project Cost
Tender Amount (including Change Orders 1 to 13
and additional Tender Quantities
Land Acquisition
Region Traffic Signal Installation
Materials Testing
Traffic Signal Installation Contingency (1 0%)
Total Revised Project Cost (excl. taxes)
Net HST cost to City (1.76%)
Net Revised Project Cost
Approved Funds as indicated in ENG 23-16
Additional Funds Required
July 12,2017
Page 3
$456,691.00
10,000.00
125,000.00
2,500.00
12,500.00
606,691.00
10,678.00
617,369.00
(561 ,653.00)
$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 11 Omm 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 arid 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
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ATTACHMENT# } TO~PORT# ~f\Jb: 7~ ....;f']-
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Pursuant to Information to Bidders Item 27, Tendering Specifications.ltem 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 ·& SeNices 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 am~nded 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 & SeNices 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 Po!icy ftem 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, Tr(3asurer, CAO and Council. -
Please include the following items in your Report:
1. if ltems·(a) through (d) noted above are acceptable to the Co-orJiinator, 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
Squires Beach Rd. and Clements Rd. Intersection Improvements and Signalization
Page 2
ATT~HMENT"# I ~~PORT# trJ!?l I'd -/7-~-""~ :;};_ .of... $. -~··
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 yR require fUrther information, feel free to contact me or a member of Supply & Services.
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Attachments
September 15, 2016
Tender No. T-3-2016
Squires Beach Rd. and Clements Rd. Intersection improvements and Signalization
Page 3
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