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Home My WebLink AboutCOD-019-08Leading the Way STAFF REPORT Ijl REPORT CORPORATE SERVICES DEPARTMENT Meeting: Council Date: April 7th, 2008 Report #: COD-019-08 File # By-law # ~~~ ~~~ Subject: CL2008-7, NEWCASTLE BRANCH LIBRARY Recommendations: It is respectfully recommended to Ccuncil the following: 1. THAT Report COD-019-08 be received; 2. THAT Garritano Bros Ltd., Oshawa, Ontario with a total bid in the amount of $2,444,700.00 (Excluding G.S.T.), being the lowest responsible kidder meeting all terms, conditions, and specifcations of Tender CL2008-7, be awarded the contract for the construction of the Newcastle Branch Library as required by the Clarington Library Board; 3. THAT the funds required for the construction project in the amount of $2,648,895.00 ($2,444,700.00 plus constructon contingency) be drawn from Account #110 42 440 85510 7401; 4. THAT David Caplan, Minister of Public Infrastructure Renewal be thanked for the one-time grant announced on March 28, 2008 under the Municipal Infrastructure Investment Initiative in the amount of $2,365,780 for this project; 5. THAT the attached By-law marked Schedule "A" authorizing the Mayor and the Clerk to Execute the necessary agreement be approved; 6. THAT Council express its intent to fund this project debenture repayments and financing costs to the extent allowable from future development charges. 7. THAT the Director of FinancefTreasurer be authorized to make application to the Region of Durham for a debenture in the amount of $1,084,267.00 plus debenture costs to finance the eligible net growth related costs of the Newcastle Branch Library; and 8. THAT the attached By-law marked "Schedule B" authorizing the debenture and Clerk be apprgve¢. Submitted by: G~ 7ilL~-' Reviewed by: arie Marano, H.B.Sc., C.M.O., Dir of Corporal ervi s / ~ cy ayl r, .A.; /(UPI S' D' char /V~9`i'./N-~~ MMJBUVn Clarington Public Library R.eso~~-h~,~ ~-iey-og by the Mayor AdminisVative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOW MANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: COD-019-08 PAGE 2 BACKGROUND AND COMMENT In the latter part of 2007, the municipality invited tenders from pre-qualified contractors for the construction of the Newcastle Branch Library. Bids received in response to the tender call at that time were signficantly over budget and a subsequent report to Council recommended that the facility design be re-scoped to reduce cost and allow for the re-tendering in the early part of 2008 at the beginning of the construction season when pricing would be more competitive. With Council's approval, the consultant and the project team identified twenty-one design and component changes to reduce the construction cost of the building without significantly affecting the functionality and appearance, yet maintaining the efficient "green' building. Council authorized application to the Ministry of Public Infrastructure Renewal under the Municipal Infrastructure Investment Initiative on February 13, 2008. A letter confirming that the application was successful in the amount of $2,365,780 was received March 28, 2008. Tenders were invited from the original list of pre-qualified contractors in February and tenders closed on March 13, 2008. Subsequently, tenders were received and tabulated as per Schedule "B" attached. As a result of the reduction/changes in the scope of the project and the timing of the tender call bid submissions were received from five of the original seven pre-qualified bidders and prices received are far more competitive then those submitted on the original 2007 tender. Council approved funding for the above project at a construction budget of $2,648,895.00. The funding source is the provincial grant funding referenced above with the balance from the Library Development Charges. The actual cost to construct the Branch Library, including the optional cost of the radiant heating is $2,444,700.00, well within the approved budget. Accordingly, it is recommended that the project proceed at the all-inclusive price of $2,444,700.00 with the remaining $204,195.00 as a contingency for the project. The above results confirm the committee's strategy to re-tender the project achieved desired results. The Total project is $3,450,047.00. Of this, $1,084,267.00 will be financed through development charges. A debenture of this amount plus debenture costs over a period not to exceed 15 years will be required. The exact repayment amounts to be funded from the Library Development Charges Reserve Fund will be determined at the time of the debenture issuance by the Region of Durham. The Director of Finance has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc., should be referred to the Director of Corporate Services. REPORT NO.: COD-018-08 PAGE 3 After further review and analysis of the bids by the Clarington Public Library Building Committee, Shoalts Zaback Architects Ltd., Kingston, Ontario and Purchasing, it was mutually agreed that the low bidder, Garritano Bros. Ltd., Oshawa, Ontario, be recommended for the contract for the construction of the Newcastle Branch Library. Attachments: Attachment 1 -Schedule "A", By-law Attachment 2 -Schedule "B", By-law Attachment 3 -Schedule "C", Bid Summary Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2008- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Garritano Bros. Ltd., Oshawa, Ontario, to enter into agreement for the construction of the Newcastle Branch Library. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 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, a contract between, Garritano Bros. Ltd., Oshawa, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of , 2008. By-law read a third time and finally passed this day of , 2008. Jim Abernethy, Mayor Patti L. Barrie, Municipal Schedule "B" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2008 Being a By-Law to authorize the debenturing of $1,084,267 Plus debenture costs to assist in the construction of the Newcastle Branch Library located at Pt. Lot 27, Concession 2, Clarke Township in the Municipality of Clarington. WHEREAS Section 403 of the Municipal Act, 2001, S.O. 2001, provides that By-Laws may be passed to allow for borrowing for the purpose of the Corporation and the issuance of debentures thereof; WHEREAS the Council of the Corporation of the Municipality of Clarington wishes construction to proceed on the Newcastle Branch Library; WHEREAS the Council of the Corporation of [he Municipality of Clarington has approved Report COD-019-08 at its meeting of April 7, 2008, for the Newcastle Branch Library; WHEREAS the Director of Finance/Treasurerhas updated the Municipality's annual debenture limit and this limit has not been exceeded, therefore, the Ontario Municipal Board approval is not required; NOW THEREFORE, Be [t Enacted and It is Enacted as a By-law of the Corporation of the Municipality of Clarington as follows: THAT the Municipality proceed with the construction of the Newcastle Branch Library, located at Pt. Lot 27, Concession 2, Clarke Township, in the Municipality of Clarington; 2. THAT the sum of $1,084,267, plus debenture casts, be debentured over a period not to exceed fifteen QS) years; and 3. THAT the funds to repay the principal and interest of the debenture be raised through a tax levy on the ratepayers and~or to the extent possible through future development charges. By-Law read a first and second time this 7th day of April, 2008. By-Law read a third time and fmally passed this 7th day of April, 2008. Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk w Leading the Way Municipality of Clarington SCHEDULE"C" BID SUMMARY TENDER CL2008-7, CONSTRUCTION OF THE NEWCASTLE BRANC LIBRARY BIDDER BASE BID SEPARATE PRICE RADIANT HEATING REVISED TOTAL Garritano Bros. Ltd. Oshawa, ON $2,373,700.00 $71,000.00 $2,444,700.00 Gerr Construction Oshawa, ON $2,390,000.00 $58,000.00 $2,448,000.00 Struct-Con Construction Bram ton $2,432,000.00 $81,359.00 $2,513,359.00 Pre-Eng Contracting Concord, ON $2,520.000.00 $70,000.00 $2,590,00.00 J.J. McGuire General Contractors Inc. Pickerin , ON $2,615,000.00 $65,000.00 $2,680,000.00