HomeMy WebLinkAboutOES 32-06
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REPORT TO
EXECUTIVE COMMITTEE
001
Report Number: OES 32-06
Date: September 25,2006
From:
Everett Buntsma
Director, Operations & Emergency Services
Subject:
Tender T -12-2006
- Sandy Beach Road Bridge Replacement & Road Reconstruction
File: A-2130
Recom men dation :
1. That Report OES-32-06 regarding the Sandy Beach Road Bridge Replacement
and Road Reconstruction be received;
2. That Tender T-12-2006 submitted by Dagmar Construction Inc. for the Sandy
Beach Road Bridge Replacement and Road Reconstruction at a cost of
$1,694,042.48 (GST included) be accepted;
3. That the total gross project cost of $ 1,827,602.48 (GST included) including the
tender amount, and other associated costs and the total net project cost of
$1,724,153.28, be approved;
4. That Council authorize the Director, Corporate Services & Treasurer to finance
the project as follows:
(a) the sum of $666,665 to be funded from the Canada Ontario Municipal
Rural Infrastructure Fund (COMRIF) Grant Intake 2;
(b) the sum of $1,050,000 to be financed by the issue of debentures through
the Region of Durham, over a period not exceeding 10 years, at a rate to
be determined;
(c) the balance amount of $7,488 to be funded from the 2006 Current
Budget;
(d) the annual repayment charges in the amount of approximately $138,000
be included in the annual Current Budget for the City of Pickering
commencing in 2007, continuing thereafter until the loan is repaid, and
any financing cost to be paid out of the Current Budget;
(e) the Director, Corporate Services & Treasurer has updated the City's 2006
Annual Repayment Limit and certified that this loan and the repayment
thereof falls within the City's Annual Repayment Limit for debt and
financial obligations, as established by the Province for municipalities in
QO~2
Report OES 32-06
September 25, 2006
Subject: Tender T -12-2006
Sandy Beach Road Bridge Replacement
And Road Reconstruction
Page 2
Ontario, and would not cause the City to exceed the updated Limit, and
therefore, Ontario Municipal Board approval was not required prior to City
Council's authorization;
(f) the Treasurer is authorized to take any actions necessary in order to
effect the foregoing; and
5. That the appropriate City of Pickering officials be authorized to take necessary
action to give effect thereto.
Executive Summary: As part of the 2006 Roads Capital Budget, Sandy Beach
Road Bridge Replacement and Road Reconstruction was approved as a construction
project. Tender T-12-2006 was issued on Wednesday, July 26, 2006 and closed on
Wednesday, August 23, 2006 with six (6) bidders responding. The total gross project
cost is estimated to be $1,827,602.48 for an estimated net cost to the City of
$1,724,153.28 (net of GST rebate). Recently, municipalities in Durham Region and
across the GT A have experienced high price construction tenders due to rising material
costs, an over abundance of projects being tendered due to Federal and Provincial
Grant programs, as well as a boom in the development sector. In order to proceed with
this project, which has already received approved funding from the COMRIF Grant
Intake 2 in a fixed amount of $666,665, it will be necessary for the City to approve
additional debt financing in the amount of $441,665, over the amounts stated in the
2005 and 2006 budgets, for a total debt commitment of $1,050,000.
The additional debt request of $441,665 would require additional annual debt charges
of approximately $58,000 for the next ten years, bringing a total combined financing
cost increase of $580,000. Please bear in mind this amount was not included in the
annual debt charges when these projects were budgeted for in both 2005 and 2006.
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 -12-2006
GST
Sub-Total
GST Rebate
Total
$1,598,153.28
95,889.20
1,694,042.48
(95,889.20)
$1,598,153.28
Report OES 32-06
(' 0 '~"
U ,J
September 25, 2006
Subject: Tender T -12-2006
Sandy Beach Road Bridge Replacement
And Road Reconstruction
Page 3
2.
APPROVED SOURCE OF FUNDS
R d C . IB d
oa s aplta u IQet
Location Proiect Code Source of Funds BudQet Required
Sandy Beach 5320.0518.0000 Debt (10 Year) 275,000 275,000
Sandy Beach 5320.0612.0000 Debt (10 Year) 333,335 333,335
Sandy Beach 5320.0612.0000 Provincial Grants 666,665 666,665
FUNDS AVAILABLE 1,275,000 1,275,000
3.
ESTIMATED PROJECT COSTING SUMMARY
T-12-2006 - Tender for Sandy Beach Road Bridge
Replacement and Road Reconstruction
$1,598,153.28
GST
95,889.20
1,694,042.48
Associated Costs
Materials Testing
Miscellaneous Costs
Utility Relocations
Consultant Fees
Construction Contingency
GST
10,000.00
10,000.00
10,000.00
21,000.00
75,000.00
126,000.00
7,560.00
$1,827,602.48
Total Gross Project Cost
GST Rebate
103.449.20
$1,724,153.28
Total Net Project Cost
4.
Project Cost under (over) Approved Funds
$(449,153.28)
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditures contained in this report and concurs.
Repc9tQj~s 32-06
September 25, 2006
Subject: Tender T -12-2006
Sandy Beach Road Bridge Replacement
And Road Reconstruction
Page 4
Background: As part of the Roads Capital 2006 Budget, Sandy Beach Road
Bridge Replacement and Road Reconstruction was identified as a construction project.
Tender T-12-2006 was issued on Wednesday, July 26, 2006 and closed on
Wednesday, August 23, 2006 with six (6) bidders responding. The total gross project
cost is estimated to be $1,827,602.48 for an estimated net cost to the City of
$1,724,153.28 (net of GST rebate). Presently there exists a current trend of high
pricing in the construction industry, which is related to the fast rising cost of petroleum
products such as asphalt cement. Other contributing factors for the price increases are
the abundance of Federal/Provincial Grants available such as COMRIF, Move Ontario
and the Federal Gas Tax and competition from the private development sector. In
order to proceed with this project which has already received approved fixed funding
from the COMRIF Grant Intake 2 in the amount of $666,665.00 it will be necessary for
the City to approve additional debt financing in the amount of $441,665 for a total debt
commitment of $1,050,000. Dagmar Construction Inc. has performed similar work with
the City on Tender T-1-2003 Rosebank Road South Bridge Replacement and Road
Reconstruction 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, Confined Space Entry Procedure and list of employees trained
in the Confined Space Entry Procedure as submitted by Dagmar Construction Inc. have
been reviewed by the Acting Coordinator, Safety & Employee Development and are
deemed acceptable. In conjunction with staff's review of the contractor's previous work
experience and the bonding available on this project, the tender is deemed acceptable.
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 Dagmar Construction
Inc. for Tender T-12-2006 in the amount of $1,694,042.48 (GST included) and that the
total net project cost of $1 ,724,153.28 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 August 23, 2006
Report OES 32-06
September 25, 2006 C 0 ~)
Subject: Tender T-12-2006
Sandy Beach Road Bridge Replacement
And Road Reconstruction
Page 5
Prepared By:
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Supervisor, Engineering & Capital ~orkS
Ever untsma
Director, Operations & Emergency Services
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Vera A. Felgemacher
Manager, Supply & Services
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Gillis A. Paterson
Director, Corporate Services & Treasurer
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Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City C un iI
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MUNICIPAL PROPERTY & ENGINEERING
Attachment For Tender T-12-2006
Sandy Beach Bridge Replacement and Road Reconstruction
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LOCATION MAP
PROPOSED CONSTRUCTION INCLUDES:
Removal of existing bridge structure along with the installation of a precast
concrete bridge and wingwalls. Existing approaches to be reconstructed to
match revised deck elevations.
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CORPORATE SERVICES DEPARTMENT
MEMORANDUM
00'(
August 23, 2006
To:
Richard Holborn
Division Head
Municipal Property & Engineering
Darrell Selsky V
Supervisor, Engineering & Capital Works
From:
Barbara Tran
Buyer
Subject:
Tender No. T-12-2006
Tender for Sandy Beach Road Bridge Replacement
And Road Reconstruction
CLOSING: Wednesday, August 23,2006, before 2:00 pm
Tenders have been received for the above project. A total of 15 companies
were invited to participate of which 16 companies picked up a tendering
package for a non-refundable fee of $100.00. Two addendums was issued. A
mandatory site visit was held on Tuesday, August 8, 2006; 9 bidders signed in
and attended of which 6 bidders responded and submitted a tender for this
project.
An advertisement was placed in the Daily Commercial News, News Advertiser
and on the City's Website. 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 10.03 (r) provides checking
tendered unit prices and extensions; unit prices shall govern and extensions
will be corrected accordingly, which has been done.
All deposits other than the low three bidders may be returned to the applicable
bidders as provided for by Purchasing Procedure No. PUR 010-001, Item
10.03(w). Therefore, the tenders of the low three (3) bidders are attached for
review.
o 0 ;Richard Holborn
. "'barrell Selsky
:J:. '., .'. ,.~S 32. '0(/
,~ ~" August 23, 2006
Page 2
Bidder Total Tendered After Calculation
Amount $ Check $
Dagmar Construction Inc. 1,696,883.29 1,694,042.48
Miller PavinQ Ltd. 1,917,466.52 1,917,466.97
Elirpa Construction & Materials 1,917,712.50 1,917,712.50
McPherson Andrews Contracting Limited 1,997,289.10 1,997,289.10
Bob Hendrickson Construction Ltd. 2,224,446.04 2,224,446.04
HUQoMark 2,583,840.00 2,627,914.90
Summary
(PST included, GST included)
Pursuant to Information to Bidders Item 21, the following will be requested of the low
bidder for your review during the evaluation stage of this tender call. Please advise as
soon as possible if we are to proceed in this direction.
(a) a copy of the Confined Space Entry Procedure document to be used on this
project;
(b) a list of employees trained in the Confined Space Entry Procedure who will be
working on this project
(c) a copy of the Health and Safety Policy to be used on this project;
(d) a copy of the current Cost and Frequency Report issued by Workplace Safety &
Insurance Board (in lieu of the Cost and Frequency document, a copy of the
current CAD 7, NEER, or MAP reports may be submitted); .
(e) a copy of the current Certificate of Clearance issued by Workplace Safety &
Insurance Board;
(f) the City's certificate of insurance shall be completed by the bidder's agent, broker
or insurer;
Please review the copies of the bids. Include the following items in your Report to
Council:
(a) if items (a) through (f) noted above, are acceptable to the Safety & Training Co-
ordinator;
(b) any past work experience Dagmar Construction Inc. 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 Dagmar Construction Inc. is not acceptable; and
(i) related comments specific to the project.
If you require further information, please fElaI fr~e to con~c.t m. e. &X
~tlua f-/
Barbara Tran
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Attachments
Copy for: Director, Operations & Emergency Services
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