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HomeMy WebLinkAboutTR-16-98 UNFINISHED BUSINESS THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE AI90L File # F" ~'i5. Q\ ^- o p - l':~?3..::-g"l\"'- Res.# 6~A -/50 -q~ Date: MONDAY, MARCH 2, 1998 Report #: TR-16 - 98 File #: By-Law # Subject: TENDER CL98-1, OLDER ADULTS CENTRE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following FORTHWITH: 1. THAT Report TR-16-98 be received; 2. THAT Gerr Construction Limited, Bowmanville, Ontario, with a total bid in the amount of $859,500.00 (plus G. S. T. pending determination of applicability) , being the lowest responsible bidder meeting all terms, conditions and specifications of Tender CL98-1, be awarded the contract for the construction of the Older Adults Centre; 3. THAT total funds required in the amount of $955,500.00 ($859,500.00 contract + $6,000.00 asbestos removal + $90,000.00 consulting) be provided as follows: $912,000.00 - 1997 Capital Budget, Impact Escrow Reserve Fund, Account #5001-00050-0000; $ 65,000.00 - Additional Funds, Impact Escrow Reserve Fund, Account #5001-00050-0000. 4. THAT approval be given for staff to negotiate and draft a leasehold improvement agreement and funding arrangement; 5. THAT the attached By-law marked Schedule "A" be approved; and 6. THAT the leasehold improvements totalling approximately $31,000.00 be interim financed from the Impact Escrow Account, included in the lease cost, and repaid to that account over the initial term of the lease agreement. BACKGROUND AND COMMENT: Tenders were publicly advertised and issued for the renovation of the existing Lions Club building to accommodate the Older Adults Centre, as provided for in the 1997 Capital Budget. REPORT NO.: TR-16-98 PAGE 2 Subsequently, bids were received and tabulated as follows: ..'1'O'1'A.t......SID.......UOUN'!'... Corzam Construction Limited $1,189,000.00 Concord, Ontario Frank Pellegrino General Contracting Limited $1,211,374.50 Toronto, Ontario Gerr Construction $1,236,000.00 Bowmanville, Ontario Snyder Construction $1,323,120.00 Whitby, Ontario Pegdon Construction Limited $1,420,300.00 Mississauga, Ontario A.G. Reat Construction Limited $1,420,300.00 Concord, Ontario Richard & B.A. Ryan Limited $1,480,900.00 Toronto, Ontario Gay Construction Limited Bid Rejected Oshawa, Ontario As all of the tenders were over the total budget allocation, in accordance with the process recommended by the Durham Construction Association, two post tender addendums were issued to the three low bidders. Based on acceptance of the deletions as well as suggestions by each of the bidders, the revised tender amounts are as follows: TOTAL BID AMOUNT. Gerr Construction Limited $865,975.00 Bowmanville, Ontario Frank Pellegrino General Contracting Limited $918,722.50 Toronto, Ontario Corzam Construction Limited $966,088.00 Concord, Ontario REPORT NO.: TR-16-98 PAGE 3 As the revised bid amount of the low bidder, Gerr Construction, was now within 7% of the total budget allocations, negotiations were entered into with the low bidder to further reduce the total cost. Subsequently, the negotiated revised total bid amount is now $859,500.00. A FORTHWITH approval will allow the contract award paperwork to commence, however the By-law will not be approved until the Council meeting of March 9, 1998. The reductions included are outlined in the attached letter, marked Schedule "B", from the consultant, Barry Bryan Associates. Note, for the information of Council, the original tender documents included in the stipulated price, the cost of a new elevator shaft located in the centre of the building and up to the underside of the first floor roof. The elevator shaft was located to satisfy the wish of the Building Committee that ultimately the elevator would access all floors of the building. The cost of the elevator shaft and associated mechanical and electrical services has not been included in the revised tender amount which resulted in a reduction of $60,000.00. Also, the front entrance, lobby and lounge area has been deferred to Phase Two which resulted in a savings of $160,000.00. Should Council choose to include either or both of these items, then this report must be referred back to staff for a further review due to the uncertainty of who would qualify as the low bidder. Should the elevator not be included at this time, the cost of adding it in future phases will be greater than the reduction achieved by deleting it from the initial construction. In addition, an alternate location in the building would have to be found, which would eliminate the initial objective of full access to the entire building. REPORT NO.: TR-16-98 PAGE 4 Council expressed at the meeting of July 7, 1997 and as identified in Admin-49-97, that the main floor of the centre would be the first stage of development of the Older Adults Centre. A phasing program was suggested in order to fully incorporate the entire building to meet the needs of the seniors. If Council does not include either the front lobby or elevator structure in Phase One, it would be recommended in a revised Phase Two as early as 1999, pending Municipal Budget deliberations. The Municipality will also enter into negotiations with the Clarington Community Care with respect to their lease and interior finishes which have been deleted and will be treated as leasehold space. Staff are recommending that the interior finishes be added to the contract and that a leasehold improvement cost, estimated to be $31,000.00, be incorporated in the lease agreement which would repay the cost over the initial term. It is recommended that these additional costs be interim financed from the Impact Escrow Account and repaid to that Reserve Fund when they are received through the lease paYments. It is recommended that the total required funds in the amount of $955,500.00 ($859,500.00 contract + $6,000.00 asbestos removal + $90,000.00 consulting) be provided as follows: $912,000.00 - 1997 Capital Budget, Impact Escrow Reserve Fund, Account #5001-00050-0000; $ 65,000.00 - Additional Funds, Impact Escrow Reserve Fund, Account #5001-00050-0000. The additional $65,000.00 represents a contingency value of approximately $35,000.00 which will only be expended if unanticipated problems arise during construction and an additional $10,000.00 is required for the contract. There are additional legal costs of approximately $20,000.00 due to the extensive negotiations, etc. which were not anticipated in the original budget review. REPORT NO.: TR-16-98 PAGE 5 The Treasurer has reviewed the funding requirements and concurs with the recommendation. The additional funds are recommended to be financed from the interest earned on the original $1.3 million allocated to the project. The interest of approximately $48,000.00 has been accumulating to the Impact Escrow Fund because the funds have not yet been required. Therefore, it would be appropriate to fund the additional requirements from the same account. Note, there is no G.S.T. component included in the cost as it is the opinion of staff that 100% Input Tax Credit rebate is applicable, however, this has not yet been confirmed. If it is not applicable, then the 57% rebate will apply. Queries with respect to specifications, etc., should be referred to the representative from Barry Bryan Associates. The low bidder has previously provided satisfactory service to the Municipality of Clarington. After further review and analysis of the bids by the Consultant, Barry Bryan Associates, Purchasing, and the Property Manager, it was mutually agreed that Gerr Construction, Bowmanville, Ontario, be recommended for the contract for the construction of the Older Adults Centre. Re/7fullY ,fj~~ Marie Marano, Treasurer submitted, Reviewed by, H . BSc . , AMCT . , ~ W . H. ' ... tockwe, . Chief Administrative Officer R.R.F.A. MM*LB*ld SCHEDULE "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 98- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Gerr Construction Limited, Bowmanville, Ontario, for the construction of the Older Adults Centre. 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, a Contract between Gerr Construction Limited and said Corporation; and 2. THAT this agreement attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of March, 1998. By-law read a third time and finally passed this day of March, 1998. Mayor Clerk FEB.:-26'981THUlI4:19 BARRY-BRYAN ASSOCIATES SCHEDULE "8" BARRY. BRYAN ASSOCIATES (J99Jj LIMITED " ARCHITECT · ";NC3INEER " PROJECT MANAGERS Municipality of Clarington 40 Temperance Street Bowmanville, Ontario L 1 C 3E8 Attention: Ms. Lou Anne Birkett Purchasing Manager Re: Clarington Older Adult Centre Municipality of Clarington CL98-1 Dear Ms. Birkett: TEL:9056665256 P. 001 11 Stanley Court Whl/by, Ontario L1N 8P9 Telephone (005) 866-5252 Fax (905) 666-5256 February 26, 1888 Tenders for the Clanngton Older Adult Centre, Tender CL98-1 were received by the Municipality of Clarington on February 4, 1998. Eight Tenders were received. One tender was rejected by the Municipality. The Stipulated Prices for the seven remaining tenders were as follows: CORZAM CONSTRUCTION LIMITED FRANK PELLEGRINO GENERAL CONTRACTING LIMITED GERR CONSTRUCTION LIMITED SNYDER CONSTRUCTION PEG DON CONSTRUCTION LIMITED A.G. REA T CONSTRUCTION CO. LIMITED RICHARD & B.A. RYAN LIMITED $1.189,000.00 $1,211,374.50 $1,236,000.00 $1.323,120.00 $1.420,300.00 $1,430,000.00 $1.480,900.00 All Tender prices include P.S.T. and are exclusive of GS.T. All Tender prices include cash and contingency allowances in the amount of $50,000.00. All tenderers acknowledged receipt of Addenda 1 to 3. Fallowing review of the Stipulated Tender prices, Post Tender Addenda Numbers 1 and 2 were issued to the three low bidders. The object of the Post Tender Addenda was to identify cost savings which would bring the Tender Price in line with the amount budgetEj'd by the Municipality for the first phase of this project. During this period, Barry Bryan Associates (1981) LimitEd conducted a detailed review of the Tenders and checked the references of the three low bidders. ,/260'--5.wpd FEB..-26'98lTHUI 1~:19 BARRY-BRYAN ASSOCIATES TEL:9056665256 P. 002 Page 2 On February 13 and February 19,1998, Post Tender Addendum Pricing was received from the invited bidders by the Municipality of Clarington. Pricing included possible cost savings identified in the Addendum and add-on pricing requested by the Municipal Building Department. Bidders were also invited to suggest additional cost savings for consideration. Our findings and recommendations are as follows: 1. REFERENCES: Detailed reference checks were completed for the three low bidders. Bidders were required to submit with the Tender, a list of recently completed projects of similar scope to the Older Adult Centre. We also contacted the Toronto! Peterborough and Durham Construction Associations. Additionally, inquiries were made within the Bonding industry. GERR CONSTRUCTION LIMITeD has prior experience working with the Municipality of Clarington. Barry Bryan Associates has worked with this contractor on several occasions and is confident of their ability to perform the work required on the Older Adult Community Centre. 2. PRICING: Tender Pricing has been evaluated using a combination of the Stipulated Tender Price, the Separate and Altemate Price items listed on page 2{R) of the Tender Form and the Post Tender Addendum pricing received from the three low bidders on February 13 and 19, 1998. Post tender Addendum items ware evaluated by the Municipality in conjunction with Barry Bryan Associates and our Consultants with the aim of maintaining the approved budget for the first phase of the project while getting the best value for the Municipality. Given the number of options available for selection I a summary of prices was developed to assist In the evaluation. Some of these Items it must be noted are "add" costs which are the result of changes requested by the Municipality of Clarlngton Building Department. These Items are not optional and must be Included in the price. They are identified separately in the attached table of prices. Additional add on prices are identified as Alternate Prices in the Tender Forms. The three law bidders were invited to suggest additional cost savings for consideration. Not all items were suggested by all bidders. Pest Tender Addendum number 2 was issued on February 18, 1998 and Includes items which duplicate either in whole or in part, items previously identified in the Tender forms and in Post Tender addendum number 1. 7175L.21lO2.S .wpd @ BARRY. BRYAN ASSOCIATES (19911 LIMITeD FEB..-?'6' 98lTHUl 14:20 BARRY-BRYAN ASSOCIATES TEL:9056665256 P. 003 Page 3 Additional possible cost saving items have been further identified in the course of our discussions with the bidders and with the Municipality. It should also be noted that Post Tender Addendum item number 19 includes the removal from the project of the entire northerly addition. This part of the work Includes a new exit stair from the second noor which can not be deferred until future phases of the overall project. This stair is necessary to ensure safe egress from the second floor of the existing building and Is a condItion of the Building Department approvals. FinallY, as you are aware, the deletion of several i~ems from tha current phase of the work will result in additional costs during futl.lre phases. It is much more cost effective to complete the6e items during the major reconstruction and alteration phase of the project than to attempt to retrofit the building later on. In particular, construction of the elevator shaft as it is currenijy located will resl.Ilt in significant cost Increases and disruptions during the next or any other phase. 4. RECOMMENDATIONS: In consultation with the staff of the Municipality of Clarington we have prepared a summary of recommended or acceptable prices. Based on the items accepted, the revised Stipulated prices for the three low bidders are: CORZAM CONSTRUCTION LIMITED FRANK PELLEGRINO GENERAL CONTRACTING LIMITED GERR CONSTRUCTION LIMITeD S98S,088.00 $818.722.50 $865.975.00 On review of the tenders and the supplemental price details, with staff of the Municipality of Clarington, the Municipality entered into nego~aticns with the low overall tenderer, Gerr Constn.lction Limited resLlltlng in a revised tender amount of $859,525.00 (The items included in this price are described in the attached AppendiX A.) and we recommend acceptance. CME/cb 7176l.2aO~.S.wpd @ BARRY. BRYAN ASSOCIATES 119911 LIMITED FE B, .- 26' 9 8 IT H U l 1 4 : 20 BARRY-BRYAK ASSOCIATES TEL:9056665256 P. 004 CLARINGTON OLDER ADULT COMMUNITY CENTRE 26 BEECH AVENUE, BOWMANVlLLE MUNICIPALllY OF CLARlNGTON TENDER CL 98-1 Page 1 of 3 APPENDIX 'A' I ITEM COMMENTS TENDER PRiCe Separate Price 9,O,8 Delete ope,.,.bls partition number 1 and track. POST TENDER ADDENDUM *1 A.1 Add 2nQ FI renovations Building cede requirement A.3 Door'# 25 Change swing of door Building code requirement C,1 Screen SC? Building code requirement DR.1 Sheet Floor Refinish existing hardwood in lieu of vinyl DR.2 Carpet 1 Change Allowance to $20/s.yd. DR.3 Carpet 2 Change Allowance to $26/s.yd. ORA Vestibule Leave vestibule as is DR.7 Operable. Partition No, 2 Delete track and bulkhead DR.S Oelete 2 Windows Activity Room 128. south wall Oft 9 Oelete 3 Windows Dining Room 118, north wall DR.10 Bow windows Use standard window In lieu of bow window DR.12 Frame colour in lieu of custom colours specified OR.13 Standard Windows in lieLl of custom sizes specified DR.14 Brickmould Delete DR.15 Paint Grade Doors in lieLl of stain grade (includes painting) DR.16 Backfill Reuse existing DR.17.1 Cabinetwork Change quality of cabinetwork DR.17.2 Cabinets (130) Delete cabinets on north wall DR.17.4 Splash backs Change to 4" high. DR.18 Elevator shaft Delete entire shaft and associated mechanical/electrical work, to second floor MECHANICAL M3. Humidifiers Delete four humidifiers and drains M9, coa Controls 71751.2802-5 ummllIV.wpd BARRY. BRYAN ASSOCIAT!:S (19911 LIMITED rlA FEB,. - 2,6' 98 ITHUI 14: 21 BARRY-BRYAN ASSOCIATES TEL:90S666S256 p, DOS CLARlNGTON OLDER ADULT COMMUNITY CENTRE 28 BEECH AVENUE, BOWMANVILLE MUNICIPALITV OF CLARINGTON TENDER CL 98.1 Page 2 of 3 APPENDIX 'A' ITEM COMMENTS M 11. Water Cooler Delate drinking fountain, piping and drain M12. Exist radiator Leave radiator in place ELECTRICAL E1. Tennis Ct sarvice Delete new service, E2. Add Exit l.lght Add light required by Sullding Code. ES. Water Cooler. E6. Humidifiers Delete power to humidifier POST TENDER ADDENDUM '2 DR.19 North Addition Delete north addition including reception and lobby. DR.21 Community Care Delete all interior finishing of suite 71715L2IOZ.Summ.ry,wpd BARRY. BRYAN ASSOCIATE5 119911 ~IMITED ~ FBB,-26'98rTHUI14:21 BARRY-BRYAN ASSOCIATES TEL:9056665256 P. 006 . . CLARINGTON OLDER ADULT COMMUNITY CENTRE 26 BEECH AveNUE, BOWMANVILLE MUNICIPAllTV OF CLARINGTON TENDER CL. 98~1 Page 3 of 3 APPENDIX lA' ITEM COMMENTS BIDDER SUGGESTIONS 2. Roof warranty 2 year in lieu of 5 year 4. Acoustic tile . 11. Metsl curb Use wood curbs at roof 14. Del. Ceramics Paint washrooms only ADDITIONAL ITEMS 1. Region allowance Delete allowance for street connections 2. Sign allowance Delete sign allowance 3. Services Delete new buried services 4. Sheet flooring Change grade of material 5. Delete Asphalt paving 6. Delete sodding Rough grade only 7. Add stairs to second floor Building code requirement 8. Change HRV unit (Activity and Dining Install 25 ton HVAC unit in lieu of specified item. room 5) 717S1..2l102oSummllry.wpcl BARRY. BRYAN ASSOCIATES (19911 LIMITED @