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HomeMy WebLinkAboutCOD-050-07 REPORT II 2 CJfJ!mglOn REPORT CORPORATE SERVICES DEPARTMENT Meeting: Council Report #: COD-050-07 File#: Resolution#: C-4'fQ-07 By-law #: J 00 1- / <J 0 Date: September 24, 2007 Subject: Tender CL2007-42 - Newcastle Library Capital Project Recommendations: It is respectfully recommended that Council approve the following: 1. THAT Report COD-050-07 be received; 2. THAT the Tender Bids received for Tender CL2007-42 be rejected; 3. THAT Council formally confirm the revised Capital Budget Amount of $3,450,047.00 4. THAT Council authorize the Newcastle Library Building Committee to re-scope the Newcastle Library project and to re-issue the tender to the same pre-qualified general contractors early 2008. 5. THAT the previously awarded consultant's contract with Shoalts Zaback Architects Ltd, Kingston, Ontario; be amended to reflect the additional design to an maximum amount of $75,000.00; and, to include LEED design work in the amount of $68,000.00 plus $60,000.00 for the LEED Application, Energy Modelling and Commissioning without impact to the project budget; and, 6. THAT the attached By-law marked Appendix "A" authorizing the Mayor and Clerk to amend the existing contract agreement between Shoalts Zaback Architects Ltd and the Municipality be approved. Submitted by: a~ Marie Marano, H.B.Sc., C.M.O. Director of Corporate Services cJ~~ hNanCy Taylor, B.B.A., C.A., (J 'Director of FinancefTreasurer MM/JB/EH/BT/gj ~~-~ Reviewed bh:J . Franklin Wu Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-5506 REPORT NO.: COD-OSO-07 PAGE 3 1.0 BACKGROUND 1.1 In February, the Municipality advertised for; and, pre-qualified seven contractors to submit bids. Since that time, two firms had advised they were unable to bid due to other commitments. 1.2 Tender CL2007-42 for the construction for the Newcastle Branch Library was advertised and issued to pre-qualified contractors with bids being received on September 6,2007; as per Schedule "A". 1.3 At the bid opening, only three submissions were received. Two of the bids were submitted on time; with one bid being rejected as it was submitted late. 1.4 As noted on Schedule "A", the two qualified bids were in excess of the funds allocated to the construction budget amount $2,648,895.00 2.0 BIDS ANALYSIS 2.1 As indicated, the two qualified bids that were received are in excess of the construction budget. Following the opening, the Consultant contacted the remaining pre-qualified bidders to determine why bids were not received. They both indicated they were experiencing difficulties in obtaining quotes for materials and one indicated that he missed the closing deadline due to timing and heavy traffic. 2.2 Other contributing factors to the high bid amounts were costs related to addressing the soils conditions, increased construction costs since establishing the original construction budget; and, unexpected costs related to certain materials required for the project. Steel, drywall, painting and floor finishes were well in excess of estimates prepared by the Consultant during the pre- construction cost analysis. 2.3 While the Municipality reserves the right to negotiate with the lowest bidder; given the projected scope of changes, it was determined this would not be a prudent course of action in this case as we would not expect to generate the required reductions. 2.4 The Newcastle Library Building Committee is aware of the financial concerns within the Municipality as outlined by the Director of Finance; and, for this reason, recommend that Council reject both bids; and, authorize the Building Committee work with the Consultant to re-scope the project in order to bring it in-line with the financial resources allocated to the project. 2.5 The Building Committee is recommending the tender be re-issued in early 2008; and that the same seven pre-qualified contractors be given the opportunity to bid on the revised project. REPORT NO.: COD-050-07 PAGE 4 3.0 SCOPE OF WORK 3.1 In order to bring the project in-line with the financial resources, the Building Committee has reviewed a number of options. The Committee recommends re- scoping the project design through a number of changes to the building components. In order to do so, the Consultant will re-design the building with staged reductions, possibly including a reduced floor space and changing to a flat roof. 3.2 In consideration of the above, these adjustments will allow us to re-tender the project in early 2008 for construction. 4.0 DESIGN 4.1 In order to achieve the desired results, the Consultant will re-scope the project design within the financial resources. This will require a significant amount of work by the Consultant including redesign and revisions and to re-issue the tender documents tender drawings. Accordingly, the Building Committee is recommending the Consultant's contract be amended to reflect this. increased scope of work to an up set limit amount of $75,000.00 to be drawn from the existing project account # 110-42-440-85510-7401. 4.2 At the award of the Consultant's Contract to Shoalts Zaback Architects Ltd, the Municipal Building Committee had not included the LEED (Leadership in Energy and Environmental Design) green building program. Through the design concepts prepared by Shoalts Zaback Architects, it was determined by the Committee;. and, presented to Council in December 2006; the Newcastle Branch Library would qualify as a LEED Certified Building, demonstrating the Municipality's commitment to conservation and sustainable buildings. 4.3 The initial consultant's contract did not include fees for the additional scope of work for LEED development; nor did it include fees for the sub-consultants working with Shoalts Zaback Architects for the preparation of LEED design work and tender documents as required by the Canada Green Building Council for approval. 4.4 The revised project budget presented at an October 2006 Building Committee meeting at which a number of both the Library Board and Council members were present. At that meeting the Consultant identified the necessary funds for the LEED application should the Building Committee determine the LEED process was viable. The budget includes $60,000.00 for LEED application process, energy modelling and commissioning, $68,000.00 for the Consultant and their sub-consultants for the design phase, construction and specifications documents as well as construction administration. 4.5 The Engineering Department is also recommending future project work for the proposed Newcastle Memorial Park Soccer Field be included within the scope of REPORT NO.: COD-050-07 PAGE 5 this work however to be funded from a separate account to be approved during the 2008 Capital Budget deliberations. 5.0 PROJECT BUDGET 5.1 At the referenced October 2006 Building Committee meeting, the project budget was reviewed. The 2006 Capital budget provided funds in the amount of $2,788,604.00. At Library Board meeting, a number of items were reviewed and budget adjustments were recommended in the additional amount of $661,443.00 based on a number funding sources suggested by the Director of Finance bringing the total project amount to $3,450,047.00. This was referenced in Report COD-027 -07 approved by Council June 25, 2007. 5.2 As the Building Committee had recommended construction of a LEED Certified Building, funding from the Municipal Government Enterprise Reserve Fund would be allocated to the capital cost difference in the amount of $285,000.00. 5.3 The Library Development Charges financing was also adjusted to reflect future capacity requirements in the additional amount of $178,810.43. This is in addition to the original budgeted amount of $1,405,456 and will result in an estimated debenture of $1,584,266.43 once the tender is awarded. This is determined based on the non-replacement square footage cost share at the mandatory 90% eligibility for development charges funding. However, this is substantially in excess of the original amount determined in the 2005 development charges background study of $1,210,500. There is no opportunity to increase this amount further as there will be a shortfall in the Library Development Charges Reserve Funds in the foreseeable future. Some provision for this was incorporated in the 2007 budget. This will limit future library growth related projects until such time as the future Development Charges growth reflects this capacity. 5.4 Additional funds were also identified from the Capital Works Reserve Fund in the amount of $98,816.29 and the General Municipal Reserve Fund in the same amount of $98,816.29 in addition to the original budget amount for the non- growth share at 10% and the replacement square footage at the existing Newcastle Branch Library that cannot be attributed to future growth. 5.5 The Director of Finance concurs with these recommendations and funding sources. However, as noted, there is no opportunity to increase this amount further from a development charges perspective. REPORT NO.: COD-050-07 PAGE 6 6.0 CONCLUSION 6.1 The Building Committee will report back to Council for approval when the project has been re-tendered. REPORT NO.: COD-OSO-07 PAGE 7 ~ Leading the Way Municipality of Clarington Schedule "A" Bid Summary TENDER CL2007-42 GENERAL CONTRACTOR FOR THE CONSTRUCTION OF THE NEWCASTLE BRANCH LIBRARY Bidder Bid Amount (Excludinq GST) Aecon No Bid Garritano Bros. Ltd. Bid Rejected Gerr Construction Ltd. $ 3,025,000.00 J. J. McGuire Ltd., No Bid . Mitren No Bid Pre-Eng Contracting Ltd. $3,310,000.00 Strut-Con Constructions Ltd. No Bid *GST Extra REPORT NO.: COD-050-07 PAGE 8 Appendix "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2007- Being a By-law to authorize an amendment to the contract between the Corporation of the Municipality of Clarington and Shoalts Zaback Architects Limited, Kingston, Ontario, to amend the agreement for Architectural Services for the Newcastle Branch Library. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS~ 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, an amendment to the contract between Shoalts Zaback Architects Limited, Kingston ,Ontario, and said Corporation; and, 2. THAT the amended contract attached hereto as Schedule "A" form part of this By-Law BY-LAW read a third time and finally passed this 24th day of September 2007 24th day of September 2007 BY-LAW read a first and second time this Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk