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HomeMy WebLinkAboutCOD-051-08 CJtu. 0 Leadingt~ REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: September 8th, 2008 ~tSD\u.-\icn ~~ PA -4-~-Og Report #: COD-051-08 File #_ By-law #;)00&-160, Subject: TENDER AWARDS SUMMER COUNCIL BREAK Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-051-08 be received; and 2. THAT the attached By-law, marked Schedule "B" authorizing the Mayor and Clerk to enter into the necessary agreement be approved; Submitted by: Reviewed bY(~---~ Franklin Wu, Chief Administrative Officer MM\JBlkm Attachments: Attachment 1 - Schedule "A", Memo's RE: CL2008-25, Asphalt Rehabilitation - Contract 2 - Various Locations, TSH Letter Attachment 2 - Schedule "B", By-law Confidential Handout - RE: Memo - Natural Gas Consulting and Direct Purchase Agreements CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 , ii, ~, ii. ';" REPORT NO.: COD-051-08 PAGE 2 ~i I ~!. * ,! " BACKGROUND AND COMMENT r,;, 'I~i: , !~ ~. In accordance with Purchasing By-law 2006-127, the following contracts were awarded during the July I August Council Break: m' ,t, 1. CL2008-25, Asphalt Rehabilitation - Contract 2 - Various Locations; and 2. Natural Gas Consulting and Direct Purchase Agreements A copy of the recommending memo for tender CL2008-25 is attached as Schedule A. The recommending memo for Natural Gas Consulting Service is confidential and is " ,j, . " ,,>' i'l; t! ~:~ provided separately. l!' With respect to the Natural Gas Consulting and Direct Purchase Agreement, in late July the Purchasing Co-operative member participants (Clarington, Oshawa, Ajax, and Durham Region) in the natural gas agreement were advised that effective immediately our agreements for the supply of natural gas were terminated. A more detailed explanation for this set of circumstances is provided in a confidential memo being ;1. ~ ": distributed separately. As a result of the termination and with no source for natural gas our requirements were filled by Enbridge. However, because our demand was unplanned and Enbridge had to accommodate increased demand they assessed a penalty of 150%, an amount that would continue until October 31, 2008 unless arrangements were made for an alternative supply of natural gas. :1 11 I: , REPORT NO.: COD-051-08 PAGE 3 Fortunately at the time we were notified of our early supply termination the former consultant had transferred all of the co-op group's data to another firm; Blackstone " ~I i' Energy Services in the event we wished to pursue a new supply agreement for a short ~ ~f ~ :1' ~ or medium term, After consulting with Blaqkstone Energy the group elected to enter into an agreement ''t I l ,. with Blackstone in order to acquire a supply of gas immediately and minimize the [1 fi penalty being assessed by Enbridge. ~i' oj, " ~ . ~ After receiving approval to proceed with the award, Blackstone Energy Services had a ;1 supplier of natural gas in place and product flowing to Enbridge within one week. This ,., ., t: , ~!' is a short-term (end of September) arrangement put in place to provide immediate I :i supply of natural gas to avoid the penalty being applied by Enbridge. During the early part of September meetings will be held with Blackstone Energy Services to discuss and finalize supply arrangements commencing October 1st and running to April 30, 2009 ~ I ~: ,I ;1 ,I; [;i. or October 31,2009. Once the new supply agreement is in place the issuance of a new RFP will be undertaken to establish a long term agreement for consulting services and the supply of natural gas for up to a five (5) year term. , 'I ~f if An updating report to Council will be provided in late September confirming the results ;1 if 'I ": rr tf ,. of the 2008 -2009 supply agreement. ~ i Schedule "A" C/gginglon MEMO To: Franklin Wu, M.C.I.P., R.P.P., Chief Administrative Officer From: Jerry D. Barber, C.P.P.O., Purchasing Manager Date: August 5, 2008 RE: CL2008-25, ASPHALT REHABILA TA TION - CONTRACT 2 - V ARIOUS LOCATIONS In view of the fact there are no Council meetings scheduled until September 15, 2008 authorization is requested to award the above noted contract to Lafarge Paving & Construction Lim~ed, Oshawa, Ontario conditional on receiving similar approval form the Region of Durham and Syvan Developments. The total project amount is $1,708,510.60 (excluding GST), which includes $1,403,406.44 contracted services, contract administration, utility relocations and contingencies. The project also includes work for Syvan Development's Home Hardware property in the amount of $12,141.60 for which payment has been received and for the Region of Durham in the amount of $455,000.00 that will be invoiced accordingly. The total value of the Municipal portion is $1,241,369.00 and as further clarification of the funding contained in Schedule "A" attached, the streetscape improvements on the Silver Street parking lot will be funded from the Community Improvement Plan reserve fund. This tender covers Phase 2, Asphalt Rehabil~ation at various locations including Regional Services and work on Syvan Development's property. The Municipal share of the project with a cost of $1,241,369.00 is within the approved funding as outlined in the memo from Engineering Services attached as Schedule "A". A copy of the recommending memo provided by TSH Engineers Architects Planners is also attached for information. Tenders were advertised on the Clarington and OPBA Website and advertised in the Canadian Statesman and the Daily Commercial News. A tabulation of the bid received on the above noted tender is as follows: BIDDER TOTAL BID. (EXCLUDING G.S.T.1 Lafarge Paving & Construction Limited Oshawa, ON 'Adjusted to reflect the deletion of Part A4b $1,403,406.44 . The letter of recommendation provided by TSH and included with Schedule "A" attached, provides an explanation for the lack of competitive bids on this project. After review and analysis of the bid by the TSH, Engineering and Purchasing Services, it is mutually agreed that the low bidder, Lafarge Paving & Construction Lim~ed, Oshawa, be recommended for the provision of construction services required for asphalt rehabilitation - phase 2 as required by the Municipal~y of Clarington. Lafarge Paving & Construction has performed satisfactory work for the Municipality of Clarington in the past. .. . continued page 2 Memo Re: CL2008-25 Page 2 of 2 The Director of Finance has reviewed the funding requirements and concurs with the recommendation. Written authorization is requested for this contract. ry D. Barber, C.P.P.O., urchasing Manager JOB APPROVED BY: . ~'A;1 ft . \ - ;Vfl (y,-- . [ Nancy Taylor, a.BA, CA, '-Director of Finance ( ') r-CA--t.S2.~ Q~ Franklin Wu, M.C.I.P., R.P.P. Chief Administrative Officer . Ac(~- {\ ,.;20("'6 Date '--J ~. Date L -( r ccf- Schedule "A" Schedule "A" CJ![-!lJglon MEMO TO: FROM: DATE: SUBJECT: Jerry Barber, Purchasing Manager Bruno Bianco, P. Eng., Design Engineer July 24, 2008 Asphalt Resurfacing - Contract 2 Various Streets - 2008, Regional Services CL 2008-25, Project 10 5800-8310-05118 Our File: CPR.2008.2 The Engineering Services Department has reviewed the recommendation provided by TSH and offers the following comments. The total tendered project cost including design and tender fees as well as contract administration fees, utility relocations, and contingencies for the project is $1,708,510.60. This total includes a portion of work we are completing on Syvan Development's property ($12,141.60) that will be paid for by Syvan Development as well as Regional services ($455,000.00) that will be invoiced accordingly. Therefore the total value of the Municipal portion is $1,241,369.00. In order to proceed with these works, our department would like to utilize the following accounts: . The remaining 2008 pavement rehabilitation program funds (Account # 110 32 330 832127401). . . The unspent funds from the 2007 pavement rehabil~ation project (Account # 110 32 330 832127401). . The unspent Move Ontario funds. . The unspent 2008 sidewalk repiacement fund specifically for the sidewalk works (Account # 110 32 331 832157401). . 2007 and 2008 Chapel and Coleman St Reconstruction (Account # 110 32 330 83313 7401). . The unspent Silver St parking lot funds (Account #10032192832477401). . The Cl P reserve fund. Should the funding source detailed above be available, we concur with the recommendation to award the contract to LaFarge Paving & Construction Limited in the amount of $1,403,406.44 exclusive of G.S.T. Due to past experiences on a similar project, a contingency amount of approximately 10% is carried forward. Therefore, including design and tender fees as well as contract administration fees, the Engineering department advises the following Municipal breakdown for the above referenced project: Schedule "A" 1:..~.;ph:1it Resurfacing-Contract 2 "};'-II-iOu5 Streets (:::PR.20082 2 July 24. 2008 Municipalities Funding Proiect Breakdown Municipal Project Amount $1,241,369.00 Funding (2008) Account # 110 32 330 83212 7401 $577,973.00 . ~ - -- (2001) AcCOllnt # 11032 330 832t27401 - . $328,000.00- Move Ontario Funds $89,000.00 (2008) Account # 110 32 331832157401 $107,000.00 (2007&2008) Account # 110 32 330 83313 7401 $95,000.00 (2004) Account #100 32 192 83247 7401 $20,896.00 CIP Reserve Fund $23,500.00 Total Proiect DeficitlSurclus $0.00 Should the funding detailed above be acceptable, we recommend staff award of Contract CL2008-25 based on the above apportionments. However, the award is conditional on similar approval from the Region of Durham for regional infrastructure and securing the appropriate funds from Syvan Developments. Attached for your files is the recommendation provided by TSH. Should you have any further questions, please feel free to contact the undersigned. ~ Bruno.M. Bianco,~ Design Engineer Idv Attachment cc Tony Cannella, Director of Engineering Nancy Taylor, Director of Finance David Crome, Director of Pianning Patti Barrie, Municipal Clerk Wiiliam McCrae, P. Eng., Totten Sims Hubicki '~Li::H :\;' c ,~!..; ~ JI~I,r, I ~!r 21t iC,rl', 1.,1 ~:~ t'IIO S2 UOS",6Iarl(>~),~' u:y. 24 08 A sphal:R esurfaci ng. I=: ont r2 \j drlOu S St. L)tH~.e9 S . ._' ,_ 'dl>F .';:Kid 2. '3iJRcloc CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T(905)623-337~ Schedule "A" II VH engineers architects planners Totten Sims Hubicki Associates 513 ~ivision Street, Cobourg, Ontario, Canada K9A 5G6 19051372-2121, Fax: 1905I,372,3li.Zl~ 1-'--::-ASc~-'~.m~n:CObo.~rg@tsh.~a . www.tsh.;a . ~..._...,~--- r t, ,. '. ,'..' . -, ._-_!~~~~. -- ......--' July 17,2008 : ~ '-'''1 JlJ'j n -. c" 3 , .M L-- _d - _.~...__.,_. ..-- Mr. A, S. Capuella, CET Director, Eugineering Services The Municipality of Clarington 40 Temperance Street BOWMANVILLE, ON LlC 3A6 .. ...-.~ .~.... --", t.. ; ._".~..__~, C""" _...~.....~.L_._.'"-_'_.~ .- .. ," ,-, .~.~ .~..' . -. ,). i , . . ! L..-.----~-- ...J._"'_' -~,~..... -~.._..-,~......- ! 1 , Dear Sir: Re: Aspbalt Resurfacing, Phase 2, Various Streets - 2008 Contract No, CL2008-25 Municipality of Clarington Tenders for the above project were opened at tbe Municipal Offices on Friday, July 4, 2008 at 2: I 5 p.m. A list of the bid received is provided in the table below. All numbers are exclusive of GST. BIDDER TOTAL BID AMOUNT Lafarge Paving & Construction Limited $1,415,088.74 Oshawa, ON TSH has reviewed the bid accepted by the Clarington Purchasing Department and have confirmed the bid values noted above. As requested by the Purchasing Department, references have been checked for the low bidder, Lafarge Paving & Construction Limited. In addition to Contract No. CL2008-11 and CL2007- 40 for the Municipality of Clarington, Lafarge Paving & Construction Limited has completed projects of similar scope for the Region of Durham and the City ofOshawa. As per the Purchasing Department's policy, staff from these municipalities were contacted for references and have confirmed the Contractor's performance on these past projects to be satisfactory. The reason for the limited number of bids can be attributed to the fact that the other asphalt company which typically bids on this work, Miller Paving, had recently been awarded a large project which would require most of their resources for the remainder of the year. In addition, they had difficulty in finding a subcontractor to undertake the larger than normal underground infrastructure component ofthe tender, therefore they did not submit a bid for the Phase 2 portion of2008 Asphalt Rehabilitation program. Estimated costs for various project components, based on Lafarge Paving & Construction Limited's bid and the deletion of provisional Item A4b) are summarized on the attached Cost Apportionment. Based on the above, we recommend that the tender in the amount of $1,403,406.44 (exclusive ofGST), be awarded to Lafarge Paving & Construction Limited of Oshawa, Ontario. Bid cheque or bid bond shall be retained for low bid until the Contract has been executed. Mr. A. S. Cannella, C.E. T. July ]7, 2008 Should you have any questions regarding this matter, please contact the undersigned. Best regards, RAfra P:\Dept 12\12.29730\Corresp\CL200S.2S Award letter.doc Enc!. pc: Mr. Bruno Bianco, P. Eng., Design Engineer, Municipality ofClarington (+Enc!.) Schedule "A" 2. IIH N lh a f' 'l;~1 ~. Uj n> lI:l J J 'II i-I ul ~I ~!U I'I~I'I ! ~ =1 ! J H iil IPi &.J I I J I II II N II ~~ ~~ . III ~~ !- ~I ili ~ J J ~ ~ ~ ) i~ t~ <~ ~ o i . ~ !ij r N a a~ . l'l ~ ~ ii a~ l'l ~ g i i I ! d j . I I li ~ ~ ~ :I l I ~ )'1 j I J I~ H ~ ~ ~ ~ ftr il o ~ j Ii ~ ~ ~ - h.~l ~ li ~~ w~ III '" "- \!! w ~ ~ ~ ~ ~! ,.Ii w ~ ;l\ l' ~ " ~ . ; " ~ w ~ .. ~. " ~ .. " ~ ~ .~ ~ ~. ~ I. ~ ~ t; . ~ II i~:g ~ ~..:i ill!! ~ ;; e cq, ...0 iR ,.. ~; a! i S II ~ ~ Ii q 1lI~ II\!!~=!; ,~ ~ ~ ~~ l -.! I ~l ! ~ !l" ~~ ~ !' ~ ! t:I ..... ... ~ :: ~.~ III II III ~ t I~u~~.il'~ ~ \!ilitH ~ ! ~ g .. ~ l:l..... .. ~ w 8 g ~ w I 1 w IIi i f ~~ Ii!. I ~5 iii sl : !~!IJJ!!i II I Jh~!JHlj~ i .~I~i ~ j;glH!~!~~-~}-, II~J ~:i I ~ ~~un ~ J ~: I!j j ~ j hlJlu ~ lJI lJI H I ~ A Schedule "A" ! I 13 ~ ~ fU fill I:: 8 - ~I ~ o _ - - ! ! ~ . ~ ~ w .. ~ " ~ ~ i .. ~q II ~ 8 g ~ III ., ~. ~ . - _ w w g I 8 ~u i ti . \!! g li Ol iP !; w 8 8 q ~ ~ ~ u. ti it ~ ~ t II W I !! ~ H ~ ~ ~ n.. Ii fi O~ ..:" ~ w W 1 ~ ~ iEH A ! I Ii J J !! ~~IJ8 i b ~ ~ . I I ! ~ 1, Attachment 2 - Schedule "B" 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 lafarge Paving & Construction, OShawa, Ontario, to enter into an agreement for the Asphalt Rehabilitation - Contract 2 - Various locations. THE COPORATION 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 Lafarge Paving & Construction, OShawa, Ontario and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" and "B" form part of this By-law. By-law read a first and second time this day of ,2008. ,2008. By-law read a third time and finally passed this day of Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk CONFIDENTIAL REPORTS ✓ G PA REPORT NO. COD-051 -08 Attachment Only Resolution#: By-law#: DATE OF REPORT: 2008 Attachment Only — Natural Gas Consulting and Direct Purchase Agreements