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HomeMy WebLinkAboutTR-81-92 REPORT #2 TOWN OF NEWCASTLE REPORT i File # a, Res. # By-Law # (STING: COUNCIL DATE: September 14, 1992 REPORT #: TR-81-92 FILE #: SU&JECT: TENDER NW92-28, RECONSTRUCTION OF KING STREET (HWY #2) AND MEARNS AVENUE, BOWMANVILLE RECOMMENDATIONS: It is respectfully recommended to Council the following: 1. THAT Report TR-81-92 be received; 2 . THAT Novacor Construction Ltd. , Thornhill, Ontario with a total bid in the amount of $1,701,301.97, being the lowest responsible bidder meeting all terms, conditions and specifications of Tender NW92-28, be awarded the contract for the Reconstruction of King St. (Hwy #2) and Mearns Avenue, as required by the Department of Public Works; 3. THAT the interim financing of the Region's portion of this project be obtained from the Roads Contribution Reserve Funds, as previously approved in Report #WD-58-92; 4. THAT the Town's 1992 cost be financed from the general surplus, approximately $285,000, through the general ledger account, King Street #7205-89013-X; and 5 . THAT the balance of the project (approximately $776,000 .00) and appropriate financing be committed in advance of the 1993 budget and the costs be included in the 1993 Public Works Department Capital Budget. BACKGROUND AND C016MNT: Tender specifications were provided by Totten Sims Hubicki Associates for the reconstruction of King St. (Hwy #2) and Mearns Avenue as required by the Department of Public Works. I I Page - 2 - TR-81-92 TENDER NW92-28 - RECONSTRUCTION OF KING STREET (HWY #2) AND MEARNS AVENUE, BOWMANVILLE Tenders were advertised in the local papers, as well as the Daily Commercial News . Subsequently, tenders were received and tabulated as per Schedule "A" attached. The tender bid breakdown is as follows: Town's portion of Tender $1,217,065.69* Region's portion of Tender $ 373,589 .56 Plus G.S.T $ 110,646 .72 Note: Town will receive 4% rebate on G.S.T. Total Bid $1,701,301.97 The Engineer's estimate for the contract was $1,985,778 . 97 . The estimated cost of Town of Newcastle works is as follows: Town's Cost Region's Cost Tender (Town portion marked with * above) $1,217,065.69 $ 373,589 .56 Contingencies $ 34,363 .36 -- Preliminary Design (Spent 1990) $ 48,000.00 -- Design/Tendering (Spent up to $ 117,000 .00 -- 1991 $77,000) Contract Administration $ 147,762 .44 $ 44,067 . 05 Utility Relocation $ 63,000 .00 -- Property Acquisition $ 232,000 .00 -- Soils Investigation $ 5,000 .00 -- Sub-Total $1,864, 191.49 $ 417,656 .61 G.S .T. on Sub-Total (excluding Contingencies) $ 128,087 .97 $ 25,451.26 TOTAL $1,992,279 .46 $ 443, 107 .87 Total Cost of Project $2,435,387 .33 (Town Cost $1,992,279 .46 + Region Cost $443, 107 .87 including G.S.T. ) . Council has reviewed this project prior to this report and has given approval to the estimated 1992 financing requirements under the following reports: a) 1992 Capital Budget - $150,000 was approved for the land purchase. This cost has been excluded from the bid price as the land purchase has been completed, however this cost is included in the overall project cost of $2 ,435,387 .33 Page - 3 - TR-81-92 TENDER NW92-28 - RECONSTRUCTION OF KING STREET (HWY #2) AND MEARNS AVENUE, BOWMANVILLE b) TR39-92 (June 1992) - approved a surplus allocation of approximately $250,000 for the project. It appears that the actual requirement will be approximately $285,000 . Report TR39-92 also allocated $50,000 for roads treatment in order to ensure maximum subsidy availability. It is recommend that the additional $35,000 required for this project be used from this $50,000 allocation and that the subsidy accounts be monitored closer to the year end and only utilized if additional surplus funds are required for subsidy maximization. c) WD58-92 (July 1992) - in which the project was identified and the Ministry subsidies were outlined. The Region's cost breakdown for this project is outlined on the attached letter from Totten Sims Hubicki, dated August 26th and addressed to Mr. Baker, Manager of Administrative Services, Regional Municipality of Durham, marked Schedule "B" . As recommended and approved in Report WD-58-92, the interim financing of the Region's portion of this project will be obtained from the Town's Roads Contribution Reserve Fund. In order for the Town to optimize its subsidies from the Ministry of Transportation, the Consultants for this project, Totten Sims Hubicki, have prepared an estimated cost of work to be done in 1992, as follows: ESTIMATED ESTIMATED GROSS COST FINANCING MINISTRY TOWN CHARGEABLE UNDER CONNECTING LINK $407, 100 . $366,390 . $ 40,710. CHARGEABLE UNDER PART X OF THE ACT $579,700. $289,850. $289,850. CHARGEABLE TO TOWN $ 28, 700. -- $ 28,700. CHARGEABLE TO REGION OF DURHAM $252,000 . -- $252,000 . TOTAL $1,267,500. $656,240 . $611,260. ------------ ----------- --------- Note: Figures Exclude G.S.T. Page - 4 - TR-81-92 TENDER NW92-28 - RECONSTRUCTION OF KING STREET (HWY #2) AND MEARNS AVENUE, BOWMANVILLE Therefore, the Town's estimated financing in 1992 would be obtained from the following sources: Roads Contribution Reserve Fund $252,000. (Region) Public Works Lot Levy 32,000 . ( 1992 Budget) Tax Levy 43,000. ( 1992 Budget) Surplus 284,260 . TOTAL $611,260 . The remainder of the project cost estimated to be $775,853 . 33 (total cost $2,435,387 .33 less the 1992 portion of $1,267,500,+ G.S.T. of $88,725 less Region's portion in 1993 of $178,309 includes G.S.T. less Preliminary Design of $48,000 and Design/Tendering of $77,000 = $775,853. 33) will be included in the 1993 Budget and will be eligible for 1993 normal road subsidy. Effectively Council is committing these funds to be expended in advance of the 1993 budget, however it is anticipated from discussions with the Ministry of Transportation that this project will be eligible for 50% to 90% funding in 1993 . The appropriate financing of this portion of the contract will be presented through the 1993 budget. The Director of Public Works in conjunction with the Contractor may adjust the work schedule depending upon the Town's other Capital road projects so that the Town may receive the maximum 1992 normal roads subsidy. (Part X of the Act) . The Treasurer 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 Public Works. After further review and analysis of the bids by Public Works, Totten Sims Hubicki Associates and Purchasing, it was mutually agreed that the low bidder, Novacor Construction Ltd. , Thornhill, Ontario, be recommended for the contract for the Reconstruction of King St. (Hwy #2) and Mearns Avenue. A letter from Totten Sims Hubicki is attached marked Schedule 11c . The subject firm has previously performed satisfactorily for the Town of Newcastle. Respectfully submitted, Recommended for presentation to the Committee, r 7/1" �? 9 ie Marano, H.B. Sc. , AMCT. , Lawrence 1. Kot f, Treasurer Chief Administ 'ive Officer. W. A. Evans, P. Eng. Director of Public Works LAB:ss Attachments SCHEDULE "A" BID SUMMARY TENDER NW92-28, RECONSTRUCTION OF HWY.#2 AND MEARNS AVENUE Bidder Bid Amount Novacor Construction Ltd. $1,701,301.97 Thornhill, Ontario Dagmar Construction Inc . $1,713,275 . 16 ** Markham, Ontario Kamlu Construction Limited $1,756,530.29 Aurora, Ontario Ron Robinson Limited $1,824, 169 .22 ** Oshawa, Ontario Elirpa Construction & Materials Ltd. $1,903,401. 70 Pickering, Ontario Pilen Construction of Canada Limited $1,927,750.25 Brampton, Ontario * amended bid - G.S.T. calculated on contingencies ** amended bid - G.S.T. calculated on contingencies and extension errors SCHEDULE "B" Jr-11 ® 1A KING STREET EAST,P.O.BOX 398,COBOURG ONTARIO,CANADA K9A 41-1 totten sims hubicki associates (416)373-3131 FAX(416)372-3631 Mr. J.G. Baker, Manager Administrative Services Regional Municipality of Durham P.O. Box 623, 105 Consumers Drive s r"� WHITBY, Ontario LIN 6A3 August 26, 1992 Dear Sir: Re: King Street/Meares Avenue Reconstruction, Bowmanville Corporation of the Town of Newcastle, Contract NW92-28 Tenders for the above contract were opened at the Town of Newcastle offices on Friday, August 21, 1992. A summary of the bids received and a copy of the tender advertisement is attached. The summary of bids forms part of our report to the Town of Newcastle, a copy of which is attached for your information. Copies of the three lowest bids are also attached. The costs chargeable to the Region of Durham are summarized as follows: Tender - Section 2, Sanitary Sewers $ 99,590.00 - Section 3, Watermains $242,015.00 - Section 4, General $ 21,984.56 - Section 5, Contingency Allowance $ 10,000.00 - Construction Administration $ 44.067.05 Total Amount $417,656.61 No costs have been included for design. Your review and approval of the tender award to Novacor Construction is requested. Yours very truly totten Sims hubicki associates 1,Pa. R.A. Kempto�Png4Q . r ` Project Manager TOWN OF NEWCASTLE RAK/ag 4591E/1/7/W 57/C PURCHASING DEPARTMENT 80 PC: Mr. W. A. Evans, P.Eng. Mrs. Lou Ann Birkett Mr. Peter Nundy, P.Eng., (+encl.) ENGINEERS ARCHITECTS AND PLANNERS SCHEDULE "C" NEON 1A KING STREET EAST, P.O. BOX 398,COBOURG ONTARIO,CANADA K9A 41-1 totten rims hubicki associates (416)372-2121 FAX(416)372-3621 416-623-4169 Mrs. Lou Ann Birkett, Purchasing & Supply Agent g ung Corporation of the Town of Newcastle Municipal Building, 40 Temperance Street AUG A 28 1992 BOWMANVILLE, Ontario L1C 3A6 TOIWN OF NEWCASTLE PURCHASING C��t�ARl'Na NT August 25, 1992 - Dear Mrs. Birkett: Re: Contract No. NW92-28, King Street and Mearns Avenue Reconstruction, Bowmanville, Town of Newcastle Tenders for the above project were opened at the Municipal offices on Friday, August 21, 1992. The list of bids received were as follows: • Pilen Construction of Canada Limited $1,927,750.25* Elirpa Construction and Materials Ltd. 1,903,401.70* • Ron robinson Limited 1,824,169.22** Kamlu Construction Limited 1,756,530.29* Dagmar Construction Limited 1,713,275.16** • Novacor Construction Limited 1,701,301.97* **Corrected Total. *G.S.T. removed on Contingency Allowance • Engineer's Estimate: $1,985,778.97 We have checked the low bidders tender and wish to advise that all requirements have been satisfactorily addressed. The Agreement to Bond has been executed and a deposit cheque in the amount of$75,000.00 accompanied the tender. Novacor Construction has undertaken a number of contracts under the supervision of our firm in recent years. A few of the larger projects completed include the following: 1988 - Trunk Storm Sewer, Town of Cobourg $1,600,000. 1989 - Subdivision Servicing, Town of Cobourg $1,700,000. 1990 - Road Reconstruction (Nash Road and Varcoe Road, Town of Newcastle $ 600,000. 1991 - Road Reconstruction, John Street, Town of Port Hope $ 300,000. Road Reconstruction, Town of Cobourg $ 900,000. ENGINEERS ARCHITECTS AND PLANNERS 'Mrs. Lou Ann Birkett, Purchasing&Supply Agent August 25, 1992 2 In the current year Novacor Construction has completed a $2,100,000 reconstruction project for the Region of Durham, a $300,000 Contract for the Town of Lindsay and are currently working on a $750,000 contract for the Region of Hamilton - Wentworth. Novacor Construction Limited is a competent, experienced Contracting firm. Our working relationship with the firm has been generally good. Based on our experience with this company, we recommend that the contract be awarded to the low bidder. The estimated cost of Town of Newcastle works is as follows: Roadworks, Signals and Structures - Sections No. 1, 6 and 7. General, Section 4. Tender $1,217,065.69 Contingencies 34,363.36 Preliminary Design 48,000.00 Design and Tendering Services 117,000.00 Contract Administration 147,762.44 Utility Relocation 63,000.00 Property Acquisition 232,000.00 Soils Investigation 5,000.00 Sub-total $1,864,191.49 G.S.T. on Sub-total (excluding Contingencies) $ 128,087.97 Total $1,992,279.46 Of the total cost the items for sidewalk, step construction and sidewalk removal are not eligible for subsidy by the Ministry of Transportation. This cost amounts to approximately $115,000.00. All deposit cheques other then the low and second bids may now be released. Yours very truly totten sims hubicki associates '4C4 — R.A. Kempton, Eng. Project Manager RAK/ag 458sErv7i8057ic PC: Mr. W.A. Evans, P.Eng. Mr. D. Patterson Mr. A.S. Cannella Mrs. Kay Rand Ms. Lori Gordon totten sims hubicki associates