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HomeMy WebLinkAboutEGD-008-17Engineering Services Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Council Meeting Date of Meeting: March 20, 2017 Report Number: EGD-008-17 Resolution: File Number: CRC.MiddleRd.2 By-law Number: Report Subject: Middle Road Reconstruction Recommendations: 1.That Report EGD-008-17 be received; 2.That the construction of Middle Road, from Concession Road 3 to 1 km north, be awarded to Hardco Construction in the amount of $2,998,362.88 inclusive of HST, or $2,801,613.76 blended HST; 3.That Purchasing By-law 2015-022 Section 22 (f) be exercised for the works associated with the reconstruction of Middle Road; 4.That the Municipality’s share of the Middle Road construction works in the amount of $1,781,244.68 (net HST) and contingency of $175,000 (net HST) be funded from Account No. 110-32-330-83268-7401 previously approved as part of the 2016 Capital Budget; and 5.That the balance of the Middle Road construction costs in the amount of $1,020,369.08 and contingency of $100,000 (both inclusive of HST) be funded by benefiting developers. Municipality of Clarington Report EGD-008-17 Page 2 Report Overview This report concerns the Middle Road reconstruction works project from Concession Road 3 northerly to 1 km. Hardco Construction will be awarded this project because there are important cost saving opportunities available due to the fact that they are currently reconstructing Scugog Street south of Concession Road 3. The award of these works will be made possible by extending the 2016 contract pricing obtained from Hardco Contracting through the competitive bid process for the Scugog Street reconstruction, CL2016-26. This would require exercising purchasing by-law 2015-022 Section 22 (f) (see Attachment 1) to award this work to Hardco Construction. 1. Background The urbanization of Middle Road was identified in Clarington’s 2015 Development Charges Update as project 62 and was forecasted as a 2016 project. Attachment 2 of this report shows the limits of the project. The urbanization includes the provision of storm and sanitary sewers, new granular road base, hot mix asphalt, concrete curb, gutter and sidewalks. The storm and sanitary sewers are oversized and extra deep to accommodate development adjacent to Middle Road north of Concession Rd 3. Funding for the oversized sewers, sanitary sewers and watermain will be provided by the benefiting land owners in accordance with the Cost Sharing Principles Report prepared by D.G. Biddle & Associates Ltd, dated November 29, 2016. The reconstruction of Middle Road (Account No. 110-32-330-83268-7401) was approved in the 2016 Capital Budget at $3,000,000 with an estimated amount of $750,000 of external financing and $2,250,000 as Clarington’s share to be funded through development charges and reserve funds. Based on progress of the design submissions for developments in the Northglen Neighbourhood east and west of Middle Road north of Concession Road 3 and the high demand for residential housing in Bowmanville, Clarington staff investigated options for expediting the provision of the municipal infrastructure necessary to service the developing neighbourhood. The goal would be to have servicing completed early enough in the year to allow for building permits to be issued in these new areas in the fall of 2017. The option that appears to be the most advantageous is to have Hardco Construction, the contractor working on the reconstruction of Scugog Street, CL2016-26, continue working northerly on Middle Road once they are past Concession Road 3. There are several benefits to this option: Cost savings with the removal of the need for temporary throwaway works at the intersection at Concession Road 3 as the contractor would just carry on working and not have to place temporary works at the intersection as well as savings on staff time associated with this temporary work Cost savings of having 2016 competitive pricing carried through 2017 Municipality of Clarington Report EGD-008-17 Page 3 Cost savings of not having to have a contractor demobilize and another one mobilize to the site Time savings with the removal of the full tender and award process which could save between 5 to 8 weeks 5 to 8 week reduction in the length of disruption to road network for users in the area Municipal infrastructure needed for developments will be in place earlier allowing for earlier issuance of building permits and collection of development charges. The Middle Road reconstruction will provide infrastructure and access to over 650 housing units adding to economic development in Clarington. Elimination of potential “Constructor” issues as the same contractor would be doing both works north and south of Concession Road 3 Extension of the contract to Hardco also eliminates the need for the Scugog Street works to be completely finished before the Middle Road works could start. The completion date for the Scugog Street works is June 16, 2017 which provides an additional time savings of roughly 4 weeks (12 weeks total). After considering this option Hardco Construction was approached to see if they would consider holding their 2016 pricing for the works on Middle Road to which they replied they would. Based on the pricing from CL2016-26, which was obtained through a competitive bid process, the cost of the work to complete the reconstruction of Middle Road from Concession Road 3 to 1 km north would be $2,998,362.88 (incl. HST), or $2,801,613.76 (blended HST). The term blended HST is used as Clarington receives an HST rebate and the developers do not through this contract. Clarington’s Share of the works would be $1,781,244.68 (net HST) for a total of $1,956,244.68 when including a 10% contingency of $175,000. When compared to the allocated budget this would leave roughly $290,000 of unexpended funds from this development charge project. A more detailed breakdown to be provided to Finance to provide necessary information for tracking of Tangible Capital Assets (TCA). 2. Proposal The proposal would be to exercise Section 22 (f) of purchasing by-law 2015-022 to award the Middle Road reconstruction works to Hardco Construction through a separate contract based on the extension of pricing form CL2016-26. Municipality of Clarington Report EGD-008-17 Page 4 3. Concurrence This report has been reviewed by the Director of Finance/Treasurer, Director of Corporate Services/HR and the Municipal Solicitor who all concur with the recommendations. 4. Conclusion It is respectfully recommended that the Middle Road reconstruction works from Concession Road 3 to 1 km north be awarded to Hardco Construction in the amount of $2,998,362.88 (incl. HST), or $2,801,613.76 (blended HST) based on the extension of pricing from the works south of this project covered under contract CL2016-26. 5. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Submitted by: Reviewed by: Anthony Cannella, Curry Clifford, MPA, CMO Director of Engineering Services Interim CAO Staff Contact: Ron Albright, Assistant Director, x2305 or ralbright@Clarington.net AC/ra/jb Attachments: Attachment 1 – Purchasing by-law 2015-022 Section 22 (f) There are no interested parties to be notified of Council's decision. Attachment 1 to Municipality of Clarington EGD-008-17 Purchasing By –law 2015-022 Negotiations / Single / Sole Source Purchases Section 22 In place of a Bid Solicitation, Goods and/or Services may be purchased through negotiation, single or sole source purchases where, in the opinion of the Purchasing Manager in consultation with Department Head, (f) the extension or reinstatement of an existing Contract would prove most cost- effective or beneficial to the Corporation; !!! !!!!!!! !!!!!!!!!! !!!!!!!!!!!! !!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 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BOWMANVILLE DATE: FILE NAME: March 17, 2017 E.L. ATTACHMENT No. 2 J:\Engineering\Attachments\Attachments Post ESRI Upgrade\40M-2462.mxdSCUGOG STREETLegend !!!!Middle Road Reconstruction Existing Contract CL2016-26 Northglen West Development !!!!!!!!! !!!!!!!!! !!!!!!!!! !!!!!!!!! !!!!!!!!! Northglen East Development E APPROXIMATELY 385 UNITS APPROXIMATELY 280 UNITS