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HomeMy WebLinkAboutCOD-009-11 SERVICES Clarftwn REPORT CORPORATE Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: March 21, 2011 Resolution#: - ° -11 By-law#: Report#: COD-009-11 File#: Subject: CL2011-08, OSBORNE STREET RECONSTRUCTION & ENERGY DRIVE CONSTRUCTION RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-009-11 be received; 2. THAT Hard-Co Construction Ltd., Whitby, ON with a total bid in the amount of $2,468,845.95 (excluding HST), being the lowest responsible bidder meeting all terms, conditions, and specifications of Tender CL2011-08, be awarded the contract for Osborne Street Reconstruction and Energy Drive Construction as required by the Engineering Department; 3. THAT the funds required in the amount of $3,550,000.00 (which includes $2,468,845.95 for contract plus net HST rebate, tendering, design contract administration and contingencies) be drawn from the Account# 110-32-330- 83334-7401 Osborne Street Reconstruction and Energy Drive Construction; 4. THAT the tender award be subject to the approval of the Regional Municipality of Durham for Regional infrastructure; and 5. THAT the Mayor and the Clerk be authorized to execute the necessary agreement. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: COD-009-10 PAGE 2 Submitted by: Reviewed by: YVlarie Marano, H.B.Sc., C.M.O., 'Franklin Wu, Director of Corporate Services Chief Administrative Officer N 61 Nancy Taylor, B.B.A., C.A., Director of Finance MM\JDB\km REPORT NO.: COD-009-10 PAGE 3 1.0 BACKGROUND AND COMMENT 1.1 Tender specifications were provided by AECOM Canada Ltd. for the Osborne Street Reconstruction and Energy Drive Construction as required by the Engineering Department. 1.2 Tenders were advertised in the Daily Commercial News, as well as electronically on the Municipality's website and the Ontario Public Buyer's Association website. Subsequently, tenders were received and tabulated as per the letter from AECOM Canada Ltd., Schedule "A" attached. 2.0 ANALYSIS 2.1 A total of six (6) submissions were received in response to the tender call. Five submissions were deemed compliant and acceptable and the sixth submission from Mar-King, Construction, Concord was deemed an unbalanced bid/non- complaint and rejected. 2.2 After further review and analysis by the Engineering Department, AECOM Canada Ltd. and Purchasing, it was mutually agreed that the low bidder, Hard- Co Construction Ltd., Whitby, ON, be recommended for the contract for the Osborne Street Reconstruction and Energy Drive Construction. A copy of the recommending memos from the Department of Engineering and the consultant AECOM are attached as Schedule "A". 2.3 The low bidder has provided services to the Municipality in the past and has performed satisfactorily. References were also checked and Hard-Co Construction Ltd. has completed a number of projects of similar scope and value for the Region of Durham and the City of Kawartha Lakes. All references were satisfied with work completed by Hard-Co Construction Ltd., and would recommend them for similar projects. REPORT NO.: COD-009-10 PAGE 4 2.4 Queries with respect to department needs, specifications, etc., should be referred to the Director of Engineering. 3.0 FINANCIAL 31 The total project cost of $3,550,000.00 including net HST, contract award, tender, design contract administration, contingencies and utilities be drawn from account # 110-32-330-83334-7401. The funding required for the project for the municipal portion is from 2008 and 2010 capital budgets for Osborne Street Reconstruction and the non municipal portion is from secured letters of credit from Ontario Power Generation to Municipality of Clarington for the construction of Energy Drive and sanitary sewer and watermains on Osborne Street. Please refer to the attached Schedule "A" for more details. 4. INPUT FROM OTHER SOURCES 4.1 The Director of Finance has reviewed the funding requirements and concurs with the recommendation. 4.2 This report has been reviewed for recommendation by the Purchasing Manager, with the appropriate departments and circulated as follows: Concurrence: Director of Engineering Attachments: Schedule "A" — Memo from Engineering Services & Letter from AECOM Canada Ltd. SCHEDULE"A" I eading tlae Way M EMO TO: Jerry Barber, Purchasing Manager FROM: Ron Albright, Manager, Infrastructure and Design DATE: March 11, 2011 RE: Osborne Road Reconstruction and Energy Drive Construction, CL2011-08 The Engineering Services Department has reviewed the recommendation provided by AECOM Canada Ltd. ("AECOM") and offers the following comments. Over the last several years the Municipality has been working with the various stakeholders in the Clarington Energy Business Park (CEBP) to ensure the necessary infrastructure requirements needed to service the CEBP are in place in time to allow for development of the Park to progress. We are now at a point that Ontario Power Generation plan to develop their site in the Park and commence construction in the coming months and as such servicing is required. In addition to the typical design process associated with a road reconstruction the project also required coordination with the ongoing Master Drainage Plan for the CEBP which involved working with Central Lake Ontario Conservation, Canadian National Railway and Stakeholders within the CEBP. Input into and from the Secondary Plan for CEBP were also key in the finalization of the design for the reconstruction of Osborne Road. As Council is aware, the Osborne Road reconstruction had funding approved for the project in the 2008 and 2010 budgets. In addition the Municipality of Clarington has partnered with Ontario Power Generation (OPG) and the Region of Durham to complete additional servicing in the area including the construction of a new road in the CEBP, Energy Drive, from Osborne Road to the east limit of the OPG lands. Upon completion of the works Osborne Road will be reconstructed to an urban standard from the south limit of Osborne Road to just north of the newly constructed Energy Drive. Originally it was planned to reconstruct the remainder of Osborne Road from Energy Drive to South Service Road as OPG had planned to develop their land north of Energy Drive. Since the start of the project OPG have changed their plans and are now developing on the south side of the proposed Energy Drive. For this reason coupled with future 407 East Link land requirements to the north and budget constraints the scope of work was reduced to the north side of Energy Drive which is what was included in the Tender CL2011-08. SCHEDULE"A" We concur with AECOM's recommendation to award the contract to Hard-Co Construction Ltd. in the amount of $2,468,845.95, exclusive of HST, for the reconstruction of Osborne Road and the new construction of Energy Drive. It should be noted that funding for the Regional services and the construction of Energy Drive are being funded by Ontario Power Generation and funding has been secured through letters of credit with the Municipality of Clarington and through the servicing agreement with the Region of Durham. A detailed breakdown of the Clarington's and external funding is provided on the Cost Apportionment provided with AECOM's tender review letter. Due to past experiences on similar projects, 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 breakdown for the above referenced project: Project Breakdown Total Project Value $1,608,000 Budget Amount Osborne Reconstruction 110-32-330-83334-7401 (2008) $220,000 Osborne Reconstruction 110-32-330-83334-7401 2010 $1,500,000 Estimated Unexpended Budget $112,000 Additional Funding Required $0 We recommend the report to Council move forward based on the above apportionments. Attached for your files is the recommendation provided by AECOM which includes a more detailed breakdown of estimated project costs. Should you have any further questions, please feel free to contact the undersigned. Regards, Ron AlbrigJP. .Manager, Ire and Capital Works RA/j o Attachment Cc: Sean Bagshaw, P. Eng., AECOM Nancy Taylor, Director of Finance A.S. Cannella, Director of Engineering Services SCHEDULE"A" AECOM 905 372 2121 to( AUCOM 513 Division Street 905 372 3621 fax Cobourg,Ontario K9A 5G6 womeecom.com March 11, 2011 Mr. A. S. Cannella, C.E.T. Director, Engineering Services The Municipality of Clarington 40 Temperance Street BOWMANVILLE, Ontario L1C 3A6 Dear Sir: Project No: 60117328 (12-29703) Regarding: Osborne Road. Reconstruction and Energy Drive Construction, Contract No. CL2011-08(the"Contract") Municipality of Clarington Tenders for the above project were opened at the Municipal Offices on Monday, March 7, 2011 at 2:15p.m. A list of the bids received is provided in the table below. All numbers are inclusive of HST. BIDDER TOTAL BID Hard-Co Construction Ltd. $2,789,795.92 Whitby, ON Dom-Meridian Construction Ltd. $2,851,153,38 Mississauga, ON Fernview Construction Limited $2,920,075.83 " Brampton, ON Eagleson Construction $3,098,892,64 Millbrook, ON Elirpa Construction Limited $3,244,022.23 Pickering, ON Dig-Con International Ltd. $3,832,765.87 *' Bolton, ON Mar-King Construction Rejected Concord, ON "Calculation Error(s) **Qty Changes were not made as addressed in Addendum CL2011.08 TenderAward Leller.Doc SCHEDULE"A" AZCOM' Page 2 March 11,2011 The Municipality of Clarington's Purchasing Department(the"Purchasing Department") reviewed all bids to confirm compliance with the Clarington Purchasing By-Law. The bid from Mar-King Construction Company Ltd. was rejected by the Purchasing Department. All other bids were deemed compliant by the Purchasing Department. AECOM Canada Ltd, ("AECOM") has reviewed the two lowest bids and confirmed the bid values noted above. Hard-Co Construction Ltd. is the lowest bidder. Its submitted tender has been reviewed and was confirmed to be compliant. The bid from Dom-Meridian Construction Ltd had an extension error in the amount of$1.13, which was corrected by the Purchasing Department. This does not affect the bid order. As requested by the Purchasing Department, references were checked only for the lowest bidder. Hard-Co Construction Ltd. has completed a number of projects of similar scope and value including work for the Region of Durham and the City of Kawartha Lakes, References stated that Hard-Co Construction Ltd. has completed work to specification and to their satisfaction. With the low bid from Hard-Co Construction Ltd., and other associated project costs noted on the attached cost apportionment, the project is within budget. Should funding be available, it is our opinion, based on the input provided by the references contacted regarding performance on previous projects, that the bid in the amount of$2,468,845.95 (exclusive of HST) may be awarded to Hard-Co Construction Ltd, of Whitby, Ontario subject to all provisions of the Clarington Purchasing Bylaw being met. Bid Cheques or Bid Bonds shall be retained for Hard-Co Construction Ltd. and Dom-Meridian Construction Ltd., the second low bidder, until the Contract has been executed. Should you have any questions regarding this matter, please contact the undersigned. Sincerely, AECOM Canada Ltd. Doug Timms, P.Eng. Senior Project Manager doug.timms @aecom.com DT:hm Encl. cc: Mr.Ron Albright,P.Eng.,Manager of Infrastructure and Capital Works,Municipality of Clarington CL2011.08 Tenderpward LellecOOo SCHEDULE"A" Municipality of Clarington/Ontario Power Generation Osborne Road Reconstruction and Energy Drive Construction Cost Apportionment Based on Low Bid Friday,March 11,2011 Contract CL2011-08 AECOM Project#6011 7328(12-292703) Clarington Ontario Power Generation Osborne Road Energy Drive Description Total Roadworks Sanitary and OPG Share Comments and Storm Sewer, & of Osborne Sewer Watermain Road Items ProjectlD/Account Number 110-32-330- Letter of Credit G198126 83334-7401 Construction Costs Contract CL2011.08 SECTION 1-OSBORNE ROAD(Energy Or to CN Tracks) OPG responsible for Item A15,storm sewer stub from MH C43-006 to OPG site. Total Part'A'- Roadworks and Storm Sewers $886,067.70 $882,645.70 $3,422.00 Item A3 moved to General Items. Osborne Rd from South Service Rd to Energy Or,all sidewalk and trees deleted. Total Part'B'-Sanitary Sewer and Appurtenances $192,340.00 $192,340.00 Total Part'C'-Watermain and Appurtenances $356,355.00 $356,355.00 Total Part'D'-Electrical $2,170.00 $2,170.00 Street lights omitted-only includes duct crossings. SECTION 2-ENERGY DRIVE Total Part'E'- Roadworks and Storm Sewers $625,039.25 $625,039.25 Secured under Region of Durham Agreement Total Part'F'-Sanitary Sewer and Appurtenances $155,099.00 $155,099.00(Legal Ref.No.AGT-78-10,Works Ref.No.2008-C-6) Total Part'G'-Watermain and Appurtenances $183,398.00 $183,398.00 Secured under Region of Durham Agreement (Legal Ref.No.AGT-78-10,Works Ref.No.2008-C-6) Total Part'H'-Electrical $6,160.00 $6,160.00 SECTION 3-GENERAL ITEMS $62,217.00 $22,874.56 $14,185.05 $25,157.39 General Items include Item A3-Traffic Control and Signing Total Construction $2,468,845.95 $907,690.26 $562,880.05 $998,275.64 Detail Design and Approvals 12-29703 Osborne Road Reconstruction Preliminary Design Based on Initial OPG Concept and Unapproved MOP Includes Osborne Rd from South Service Rd to Solina To Jan 29,2010 $80,085.33 $80,085.33 $0.00 $0.00 Rd including turn lanes on South Service Rd and Solina Rd from Osborne Rd to South Service Rd Detailed Design Based on Final OPG Concept and Coordination of Infrastructure for EFW and Darlington Refurb. $84,846.63 $84,846.63 $0.00 $0 00 Includes Osborne Rd from South Service Rd to 960 m From Jan 30 2010 to Dec 31,2010 southerly including storm sewer outfall 12-29668 Clarington Energy Business Park Master Drainage Plan MOP Final Draft Report Based on Concept As Discussed With CLOCA Staff To Nov 27,2009 $94,231.74 $94,231.74 '$0.00 $0.00 Revised MOP Concept and Final Report Based on CLOCA Comments and Costs Include estimated additional costs to achieve final Development Details and Phasing $95.000.00 $95.000.00 $0.00 $0.00 approval From Nov 28,2009 Total Detail Design and Approvals $354,163.70 $354,163.70 $0.00 $0.00 Tendering,Construction Administration and Materials Testing 10.0%Tendering,Construction Administration and Materials Testing $247.000.00 $91.000.00 $56.000.00 $100.000.00 Total Tendering,Construction Administration and Materials Testing $247,000.00 $91,000.00 $56,000.00 $100,000.00 Other Costs Utility Relocation Bell(Preliminary Quote) $12,313.20 $12,313.20 $0.00 $0.00 Hydro One(Preliminary Quote) $40,000.00 $20,000.00 $10,000.00 $10,000.00 Storm Sewer Placed Under Region of Durham Contract D2010-032 PO#05961 $51.980.00 $51.980.00 $0.001 $0.001 . Total Other Costs $104,293.20 $84,293.20 $10,000.00 $10,000.00 Sub-Total Estimated Project Costs $3,174,302.85 $1,437,147.16 $628,880.05 $1,108,275.64 10%Contingencies(approx.) $314,297.78 $143.041.52 $61,961.14 $109,295.12 Total Estimated Project Costs(Excluding HST) $3,488,600.63 $1,580,188.68 $690,841.19 $1,217,570.75 Total Estimated Project Costs(Including 1.76%Unrecoverable HST) $3,550,000.00 $1,608,000.00 $703,000.00 $1,239,000.00 BudgetAmount $1,720,000.00 $703,000.00 $1,239,000.00 Under/(Over)Budget Amount 1 $112,000.00 $112,000.00 $0.00 $0.00 ---\1CACBGIFPOOt.na.aecomnetcom\projects%Dept 12\12-2 9 7 0 31Construc8on1CL2011-08-Testpay(WorkingReVoed).xis --AECOM