HomeMy WebLinkAboutCOD-029-13 Clarington DEPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: November 25, 2013 Resolution#: 6(9/q- ,566-/3 By-law#:
Report#: COD-029-13 File#:
Subject: VALLEYS 2000 BOWMANVILLE CREEK 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-029-13 be received for information.
Submitted by: Reviewed by:
arie Marano, H.B.Sc., Franklin Wu,
AMCT, Chief Administrative Officer
Director of Corporate
Services
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CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: COD-029-13 PAGE 2
1. BACKGROUND
1.1 At their meeting of March 26, 2012 Council approved Report COD-007-12
(attachment 1) authorizing staff to proceed with a single source award to Valleau
Construction Inc., Bowmanville for the construction of the Bowmanville Creek
Fish By-Pass Channel as required by Valleys 2000 (Bowmanville) Inc.
1.2 Shortly after the award of the contract it was determined that the sheet pile
component of the project originally priced at $45,000.00 was being priced by sub-
contractors at twice the price quoted. Pricing this item in the height of the
construction season would result in the cost increase.
1.3 In addition to the pricing issue there were difficulties resolving some of the in-kind
donations as well as timing issues due to permits. There was also an issue with
timing to compete the in-water work in compliance with Ministry of Natural
Resources, Department of Fisheries and CLOCA. Consequently the project was
delayed until 2013. This would enable the contractor to secure sheet pile pricing
during the winter months when prices would be more competitive. It would also
afford more time to obtain the commitments on in-kind donations and resolve
permitting issues.
1.4 Valleau Construction actually started work on the project in late July 2013 and
experienced issues with the requirement for sheet pile installation due to site
conditions and alternative methods were being explored. Finding an acceptable
resolution to the sheet pile issue was complicated by limitations placed on the
project by the permits using the original design. Any changes to the design
would necessitate a review of the permitting process. As a result of these
difficulties the contractor advised on August 13th that "it is best we demobilize".
Subsequent to this notice and following meetings with Valleys 2000, their
consultant, Municipal Purchasing Manager, Engineering and the Municipal
Solicitor, Valleau Construction was advised that the contract was being
terminated effective September 16th. We also indicated our intention to exercise
our rights under the terms of the agreement which included taking possession of
all work in progress and finishing the work by whatever means deemed
appropriate.
1.5 Immediately following notification of termination, Purchasing Services contacted
contractors who specialized in in-water work to determine their interest in bidding
on the completion of the project which required an immediate start. Discussions
also included the need to provide their best price to complete the project taking
into account the confirmed in-kind offers from other sources such as the
bridge, railings, cement supply and most aggregates required for the project.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: COD-029-13 PAGE 3
1.6 Two bids were received, one from R&M Construction, Acton, at $326,707.99 and
the second from Dynex Construction, Concord at $419,060.09, net of HST
rebate. Both contractors were able to commence work in early October and were
prepared to work with the in-kind donations. The low bid submitted by R&M
Construction was accepted and a purchase order was issued to authorize the
work to proceed.
1.7 Concurrent with our efforts to secure a contractor to finalize the project, the
project consultant Greck and Associates was meeting and holding discussion
with the various ministries and CLOCA to ensure the required permits were valid
for the proposed work to enable the contractor to start work in October with a
projected completion date of November 30, 2013. The consultant was
successful in receiving the required approvals.
1.8 Work commenced on the project on October 8, 2013 and has continued
uninterrupted since then. As of November 18t", the project was still on track for
completion by the end of November, 2013.
1.9 At present it is expected that an official unveiling and acknowledgement of
contributions of the Fish By-Pass Channel could take place on Monday,
December 16, 2013. Arrangements are currently underway to finalize this event
and details will be communicated to Council when arrangements are finalized.
2. FINANCIAL
2.1 Funding for this project is comprised of the following:
Valleys 2000 (Bowmanville) Inc. $270,341.66
Municipal Contribution if needed $ 81,971.04
Grant (to be announced)* $100,848.00
Total Funds available $453,160.70
Estimated Project Cost:
R&M Construction **$331,939.19
Contingency (if needed) $33,193.91
Estimated resolution of Valleau Construction Invoice
(work completed at termination) **$63,786.98
Total Estimated Cost **$428,920.08
*details provided in the confidential email to Council 13 09 09
**Net of HST Rebate
3. CONCURRENCE
3.1 This report has been reviewed by Tony Cannella, Director of Engineering and
Valleys 2000 (Bowmanville) Inc, who concur with the content.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: COD-029-13 PAGE 4
4. CONCLUSION
4.1 This project has proven to be a challenge for all involved. The project itself is
complex and was further complicated by the number of agencies and approvals
required to undertake the project, the difficulty in resolving in-kind donations and
the issues that arose during the implementation and continued through to final
completion.
The steadfast efforts of Valleys 2000, their Consultant Greck Associates, the
various donors and municipal staff will result in the completion of a project that
will long serve the natural movement of spawning salmon and trout for years to
come. The feature will serve as an attraction for the Municipality of Clarington
and provide an education tool for the surrounding populace.
CONFORMITY WITH STRATEGIC PLAN —
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
Promoting economic development
Maintaining financial stability
Connecting Clarington
Promoting green initiatives
x Investing in infrastructure
x Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Jerry Barber, Manager of Purchasing
Attachments:
Attachment 1 - Report COD-007-12
List of interested parties to be advised of Council's decision:
NONE
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
ATTACHMENT 1
ciffiP4011 R` EPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: March 19, 2012 Resolution#: �'P!�'��3'�� 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 Municipal S citor.
Submitted by: Reviewed by: oLz
arie Marano, 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 906-623-3379
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
VA LLE1� .
_
A Miracle in the Making
March 12,2012
Mr.Jerry Barber
Purchasing Manager
Municipality of Ciarington
Dear Mr. Barber
As you are aware, Valleys 2000 Is 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 to do a significant amount of the project work at no cost. Valleau 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 our cost further.
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 2000(Bowmanville) Inc
Harold Hammond-Vice president
William Huether-Treasurer