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Home My WebLink AboutCOD-007-12 Clarington REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: March 19, 2012 Resolution#: ° 1 '1 By-law#: Report#: COD-007-12 File#: Subject: VALLEYS 2000 FISH BY-PASS CHANNEL RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-007-12 be received; 2. THAT the requirements of the Purchasing by-law be waived; 3. THAT, subject to all conditions being met; staff be authorized to negotiate a single source agreement with Valleau Construction Inc., Bowmanville, for the construction of a Bowmanville Creek Fish By-pass Channel as required by Valleys 2000 (Bowmanville) Inc.; and 4. THAT the Mayor and Clerk be authorized to execute an agreement satisfactory to the MunzarieMarano,citor. Submitted by: Reviewed by: � H.B.Sc., Franklin Wu, AMCT, Chief Administrative Officer Director of Corporate Services MM\JDB\km CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: COD-007-12 PAGE 2 1. BACKGROUND 1.1 At their meeting of January 30, 2012 Valleys 2000 (Bowmanville) Inc. addressed Council and provided a presentation on the fundraising program and fish ladder project planned for the Bowmanville Creek Valley. 1.2 Since that time the Valleys 2000 group has continued their fundraising campaign and held a successful Gala on March 2, 2012. 1.3 The Valleys 2000 fundraising campaign has attracted significant attention in the community and contributors have come forward with cash and in-kind donations for the project. They were also successful in obtaining a Trillium Grant in the amount of$150,000.00 toward the project. 1.4 Since the introduction of the fish ladder project Municipal staff has been working with the Valleys 2000 group and their architect in order to move this project forward. For clarification, under the Memorandum of Understanding between the Municipality of Clarington and Valleys 2000, the Municipality is responsible for coordinating, designing, tendering and supervising any Contractor Works on behalf of Valleys 2000, subsequent to receipt of all funds from Valleys 2000 for the specified project. 2. ANALYSIS 2.1 As noted, contributors have come forward with both cash and in-kind donations. These donations are well received however the in-kind donations, particularly services can complicate the public tender process. 2.2 To date Valleys 2000 have been advised of numerous in-kind donations covering such items as cement, armor stone and the pedestrian bridge. Most recently a local firm, Valleau Construction Inc., Bowmanville came forward to the Valleys 2000 group with an offer to provide excavation as an in-kind donation. Subsequent to the initial contact Valleau has made a further offer. They are prepared to undertake the project in its entirety (act as the general contractor), continue to provide in-kind donations such as excavation including other services at cost and also pursue additional contributions to the project from their list of sub-contractors. 3. COMMENTS 3.1 Projects of this nature with some in-kind donations of material can be handled using the public tender process. However, with the introduction of services and labour the public tender process becomes very difficult and less attractive to general contractors who must take on the responsibility for the project along with the risk while dealing with volunteered material and services. REPORT NO.: COD-007-12 PAGE 3 3.2 Valleau's offer to undertake the project as a general contractor has merit under the circumstances. An agreement can be negotiated that would be similar to the usual construction contract whereby Valleau becomes the general contractor, provides all project services and material and assumes all risks associated with the project. 3.3 The agreement would be drafted with the usual requirements including unit costs and insurance etc. and allow for known and future in-kind donations. That is the agreement would be prepared based on the known in-kind donations, and costs not covered by in-kind donations. Provision would also be made for the introduction of further cost reducing donations as the project progresses. 3.4 As with any agreement the total cost of the project would be established and this would be capped by the level of funding provided by Valleys 2000. 3.5 This concept has been reviewed with Valleys 2000 who have indicated their preference for this approach. A copy of their letter dated March 12 requesting that the Municipality consider this single source approach is attached as Attachment 1. 3.6 Due to the time constraints on this project, this report with recommendations is being forwarded for approval subject to the recommended process being approved by the Trillium Foundation. At the time of preparing this report a request has been sent to the Trillium Foundation seeking confirmation that our recommended process falls within their guidelines. 4. FINANCIAL 4.1 This project including architectural fees and Valleys 2000 expenses carries an estimate of $450,000.00. 4.2 To date Valleys 2000 has raised, through donations and grants, a significant portion of the estimate; approximately $295,000.00 (inclusive of Trillium) plus in- kind commitments and fund raising continues. 4.3 All funds earmarked for the project will be turned over to the Municipality prior to commencement of the negotiations and the in-kind donations will be factored into the final agreement. The value of this agreement cannot exceed the cash on hand. 5. CONCURRENCE 5.1 This report has been reviewed by Tony Cannella, Director of Engineering Services and Lori Gordon, Deputy Treasurer who concur with the recommendations. REPORT NO.: CO®-007-12 PAGE 4 5.2 Before entering into discussions with the Valleys 2000 group on the topic of a negotiated contract the matter was first reviewed with the Municipal Solicitor for his comments and to alert him to the need for a unique agreement. 6. CONCLUSION 6.1 In view of the complexities introduced to the tendering process by the significant in-kind donations for this project it is recommended that this project be negotiated with Valleau Construction Inc., Bowmanville who has offered to undertake the project as the general contractor, make substantial in-kind donations of labour, material and equipment, provide some services at cost and also pursue additional in-kind donation from sub contractors. Attachments: Attachment 1 - Letter from Valleys 2000 (Bowmanville) Inc. ATTACHMENT xn` ^m/^yyzouox"I VALLEYS EYS Valleys' 2000 00 Inc ��K��00��Y�� &t�� imclotu the Mak�g March 12,2012 Mr.Jerry Barber Purchasing Manager . Municipality ofC)ahn8ton Dear Mr. Barber As you are aware, Valleys 200Ois raising funds to construct a Fish By-pass channel at the Goodyear Dam. In accordance with our Memorandum of Understanding,the Municipality will tender the project upon receipt of the project funds from Valleys 2000.Over the last month,Valleys 2000 members, municipal staff,and our project engineer have met several times with Valleau Construction Inc.who have offered todoa significant amount of the project vvnrkatnocost. Vo||aau Construction,founded in 1969, is an experienced well established Bowmanville company with an extensive fleet of equipment. Valleau has also indicated that they can bring in other partners to the project with in-kind labour and materials that would reduce ourcoatfuMLher. We are requesting that the Municipality consider sole sourcing this project to Valleau Construction to take full advantage of their generous offer. Signed on behalf of Valleys 2OOO<Boxvmnanvii|e\ Inc ` Harold Haolnoond4/iCepresident i|||amHuethepTreayuror `