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Home My WebLink AboutTR-82-97 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON XJEVMXX X REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # E n� Date: MONDAY, SEPTEMBER 8, 1997 Res. # - ( Report#: TR-82-97 File#: By-Law# Subject: TENDER CL96-3 , RECONSTRUCTION OF KING STREET - NOVACOR Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report TR-82-97 be received; 2 . THAT Ron Robinson Limited, Oshawa, Ontario, in accordance with unit prices submitted to the Guarantee Company, as per Schedule "A" attached, be awarded the contract to complete the Tender CL96-3, Reconstruction of King Street East and Liberty Street Intersection Improvements, as required by the Department of Public Works; 3 . THAT the approval be subject to the terms of the agreement with the Guarantee Company, as per the attached letter from the Municipality' s solicitor, marked Schedule "B" being approved by all parties; and 4 . THAT the attached By-law, marked Schedule "C" , be approved authorizing the Mayor and Clerk to execute the necessary agreement; FORTHWITH. BACKGROUND AND COMMENT: In April of 1996, Council approved the award of Tender CL96-3 , Reconstruction of King Street East and Liberty Street Intersection Improvements to Novacor Construction Ltd. , Queensville, Ontario. In May of 1997, notification was received that Novacor Construction Ltd. had been petitioned into bankruptcy. At that time, The Guarantee Company who issued the performance bond for Novacor was contacted. i RIS 11 PnrtnED O!1 RIM L10 PAP REPORT NO. : TR-82-97 PAGE 2 Under the terms of the bond, The Guarantee Company is responsible for the completion of the work. Subsequently, a request for pricing was issued by them with prices being submitted as per Schedule "A" attached. An agreement between the Municipality' s solicitor and The Guarantee Company has been reached with respect to the completion of the work and the recoverable costs as identified in Schedule "B" attached. As the summer construction season is almost over, time if of the essence in order that the asphalt work may be completed. Therefore, a FORTHWITH approval is requested. Respectf lly submitted, Reviewed by, 4 X-/14 �/ / i Marano, H.BSc . ,AMCT. , W.H. Stockwell, Treasurer Chief Administrative Officer Steph n A. Vokes, P.Eng. Director of Public Works MM*LB*ld Contract CL96-3, Municipality Of Clarington SCHEDULE "A" King Street East, Bowmanville Item; Description Quantity Unit Unit Price 1 Unit Price Unit Price; Total 1 No. _L___ _ Novacor; Elipral, Robinson; Robinson 4 Hot Mix H.L. -1 1200 t �( 47.00; 51.73; 49.37 59,244.00, 7 ,Tack Coat 11150 sq.m 0.301 0.27; 0.25; 2,787.50; 8 Glasgdd style No. 8502 300 sq.m 1 9.751 10.57 i 10.09 j 3,027.401 11 1 Concrete Sidwalks 42 sq.m 33.001 44.00 i 62.501 2,625.001 12 ; Interlocking Brick Pavers ' 240 s .m 36.001 55.CO i 44.101 10$ 84.00 14 1 Concrete Curb and Gutter 85 sq.rn 1 32.001 43.00; 48.301 4,105.50 25 1 Ad'ust/Rebuild manholes/catchbasins ; 50 ea. 1 120.001 275.00' 306.25; 15,312.50 30 Removal of asphalt pavement ! 1500 sq.m 4.001 5.00; 4.751 7,125.001 132 1 Removal of Curb and Gutter 8 m 2.001 10.00 i 32.501 260.00 36 Topsoil/Sod (370 sq.m paid in 1996) ! 1320 sq.m 1 3.501 3.85: 4.20i 5,544.001 37 Misc. Landscaping (Canada Trust/7-Eleven 1 L.S. i 7,000.00! 7,000.00; 7,000.001 7,000.00 1 1 120,372.501 117.614.501 117,614.50 r Visual Deficiencies 1 Quantity Unit Unit Price 1 Price: Price Novacor: Elipra� Robinson' Remove and Replace Concrete Sidwalk 20 sa.m 1 800.601 1.650.001 1,570.001 1 Supply and install Precast Concrete Curb 15 m 1 225.001 600.00; 675.00; ;;Removal of Asphalt (full depth) 1 54 so:m : 1,080.001 1350.001 1,134.00 i �uppI and plant one 75 mm. dia. Maple ! 1 5 ,rn. ; 250.00 500.00 393.751 i.Straighten water service box (house #126) ! 1 ea. 300.00 400.00 93.75 �1Adjust main water valve boxes to grade i _24 ea. i 1,200.00 1,800.00; 750.00 i Repair MH, NW corner King and Liberty 1 ea. 1 300.001 475.00! 306.25 Clean all storm structures i 40 ea. 1 1,600.001 2,700.00; 3,000.00; 1 _ 9.475.00 7.922.75 j Total 125,537.25 ESTIMATED LESS Balance of Contract Funds 99 052.00 NET 26,485.25 SEP 05 '97 12:46 FR TO *900070329190562 P.02iO3 SCHEDULE_ "B" Telephone (416) 380325 Facsimile (416) 86"306 DENNIS C. HEFFERON BARRISTER & SOLICITOR Suite 2500 130 Adelaide Street West Toronto, Ontario M5H 2M2 TOX Box 38 September 4, 1997 The Guarantee Company of North America Claims department Suite 1400, Madison Centre 4950 Yonge Street North York, Ontario M2N 6K1 Attention: Louis R. Copat, B.Sc., F I i C Dear Sir: Re: The Corporation of the Municipality of Clarington construction contract with Novacor Construction limited We wish to confirm discussions held between the Municipality's Officials and you to resolve the completion of the outstanding work under the construction contract and the correction of identified deficiencies. Pursuant to those discussions, the Municipality's Officials are prepared to recommend to Municipal Council that the Municipality's rights pursuant to the performance bond issued by your company be satisfied as follows: 1 . The Municipality will not require that The Guarantee Company complete the outstanding work under the construction contract either by its own forces or by tendering out the work. i 2. The Municipality shall enter into a new construction contract with Ron Robinson Limited to complete the outstanding work and correct the deficiencies in accordance with the unit prices set out in your telefax of August 1, 1997. The unit prices will differ from those committed to in the Novacor construction contract with the net result, based upon estimated quantities that the cost to complete will exceed the original estimate by $17,662.50 plus GST. i I SEP 05 '97 12:47 FR TO *800070329190562 P.03iO3 - Page 2 - 3. The Municipality will apply the contractual holdback of $31,049.27 plus $2,406.23 as follows: First: engineering fees of $7,520.15 (inclusive of GST) and legal fees of $2,843.66 (inclusive of GST) incurred by the Municipality as a result of the default of Novacor under the construction contract. Second: the cost of correction of identified deficiencies, estimated by you to be $7,922.75 plus GST. Third: the net difference between the cost of completing the outstanding work by Ron Robinson Limited and the amount that the Municipality would have paid to Novacor based upon certified quantities after completion. Fourth: to be determined having regard to any competing claims. 4. This arrangement shall not derogate from the continuing obligations of The Guarantee Company pursuant to either the performance bond or the labour and materials payment bond. 5. The Guarantee Company shall issue a performance bond and a labour and materials payment bond in respect of the Ron Robinson Contract for the full amount thereof at no cost to the Municipality. 6. Should the contactual holdback be insufficient to discharge in full the amounts set out in paragraph 3 above then The Guarantee Company shall forthwith pay to the Municipality upon written demand therefore, any shortfall. Such demand shall be supported by written documentation from the Municipality's Consulting Engineer. Based upon the estimates, this shortfall is estimated at $4,284.53, inclusive of GST. Please confirm in writing the confirmation of The Guarantee Company to be bound by the terms of this letter. I Yours very truly, i r N7M:bg Nicholas T. Macos I i SCHEDULE "C" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 97- Being a By-law to authorize a contract between Ron Robinson Limited, Oshawa, Ontario, for the completion of the Reconstruction of King Street East and Liberty Street Intersection Improvements. THE CORPORATION 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 Ron Robinson Limited, and said Corporation; and 2. THAT this agreement attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of September, 1997. By-law read a third time and finally passed this day of September, 1997. Mayor Clerk