Loading...
HomeMy WebLinkAboutTM-11-80 TM-11-80 TO: Chairman and Members of the Finance and Administration Committee FROM: A. Guiler, Town Manager DATE: February 14, 1980 SUBJECT: Meeting with Tyrone Hall Board 7:00 P.M. , February 12, 1980, Tyrone Hall At the request of Mr. B. Heming I attended a meeting of the Hall Board to discuss the awarding of a tender for the construction of the Extension to the Tyrone Community Hall. In December of 1978 the Tyrone Hall Board called tenders for the construction of an addition to the Tyrone Hall. The Board received proposals from the following firms: "Kraco" Carpentry Service Ltd. J. A. Sanders Contracting Limited K. & K. Contractors N. E. Davis Construction Limited 379036 Ontario Limited. The Tyrone Hall Board reviewed the tenders and on December 6, 1978, they notified the unsuccessful firms, namely, the last four in the above group, that their proposals were not acceptable by the Board. A meeting was held on January 8th, 1979, with members of the Community Services Committee and members of the Hall Board for the pur- pose of allowing the Chairman of the Tyrone Hall Board to explain their plans for the extension of the Tyrone Hall (see minutes attached) . On January 15, 1979, the Tyrone Hall Board requested approval of the extension of the Tyrone Hall and asked Council to approve interim financing in the amount of $21,972.50. This approval was given by Council in Resolution # C-79-6 "That the extension of the Tyrone Community Hall be approved in the amount of $43,945.00 and the Town approve interim financing in the amount of $21,972.50, and further it be conditional that all approvals from regulatory bodies be confirmed in writing regarding financing, design, etc; and including bid, evaluation, insurance coverage satisfactory to the Town Manager, etc. , and that the Mayor and Clerk be authorized to sign contract with Kraco Carpentry". 2 - On January 17, 1979, a letter was sent to Kraco Carpentry Services Ltd. (see copy attached) . Mr. Kraayvanger of Kraco Carpentry Service Ltd. states that he did not receive the letter dated January 17, 1979. Mr. Kraayvanger also states he was never informed that he was required to provide liability insurance or Workmen's Compensation in order to be awarded the contract. From rough notes in our file we note that we held a meeting with representatives of Wintario, Tyrone Hall Board and Staff on February 17, 1979, to sort out approvals for Wintario grants and we also note that we discussed insurance requirements with a Mr. Hanley of Hanley Insurance, Toronto, who advised us that we would receive liability insurance on behalf of the Contractor naming the Town as co-insured. This policy was to be received within a week and a half. On March 28, 1979, the Tyrone Hall Board held a meeting, at which time they asked J. A. Sanders Contracting Limited if their price given in December was still in effect. This was done due to the fact that the Town had not received the information required. Mr. Kraayvanger stated at a meeting of the Hall Board that he was advised that the reason that the Contractor had not been awarded is because we had not received Wintario approval. On January 28, 1980, the following recommendation was made to Council by myself and the Treasurer: "That the extension to the Tyrone Community Hall be approved in the amount of $54,413.00, and the Town approve interim financing in the amount of $27,206.00, and further that the Mayor and Clerk be authorized to sign a contract with J. A. Sanders Contracting Ltd." At the meeting with the Tyrone Hall Board on February 12, 1980, the Board was concerned with the whole procedure and the unrecorded events which took place last year. The Board passed the following motion: "That the decision of the 1979 Hall Board be upheld to give the contract to J. A. Sanders Construction Limited under the condition that the lawyers of the Town of Newcastle find no legal fault". - 3 - On Wednesday, February 13, 1980, I met with the Town Solicitor, D. Sims, and reviewed the file regarding the extension of the Tyrone Hall. As a result of the meeting with Mr. Sims I received the attached letter on February 14, 1980. In view of what has taken place over the past 12 months and the advice of our solicitor we would recommend as follows: 1. That Council Resolutions # C-80-131 and # C-79-6 be rescinded. 2. That a new Resolution authorizing the call of tenders be passed by Council. &r Ilk e r � � o TOWN OF NEWCASTLE, BELL BUILDING JANUARY F;, 1979 - 7:00_ I>•m_ The following are minutes of a Meeting held in the Bell Building on Monday, January 8th, 1979 at 7:00 p.m. to discuss an addition to the Tyrone Community Centre: Present : N. Prout , Chairman of Community Services Committee J. Holliday, Councillor K. Barr, Councillor A. Cowman, Councillor B. Hemi.ng, Chairman, Tyrone Community Centre Board J. Virtue, Member, 'Tyrone Community Centre Board Also Present: A. C. Cutler, 'Town Manager The purpose of the meeting was to inform the Members of the Community Services Committee of their plans to add an addition to the Tyrone Community Hall and presented the attached statement to show their financial status . Mr. Heming explained how the Board tendered for the new construction and stated that they wish to award the tender to Kraco Carpentry Services Limited. The Board did not ask for the contractor to submit a performance bond or dial not have a set of specifications drawn for the building. The plans do not boar an architectural or engineering stamp nor have they bean ,approved by the Department of Labour. The Town Manager was requested to contact the Ministry of Culture and Recreation to see if an nrchitoctura.l stamp, Department of Labour approval- and a set of written specifications are required in order to he eligible for tdintario Grants and Community Centre Grants. The Community Centre Board wi_11 be ,asking the Council to assist them with the interim financing of this project in the amount of $21,972.00 until grants are received if necessary. A formal request_ for interim financing will be forwarded to Council for consideration. i i i Secretary ------ --- —----------- ----------- — Chairman (::fN#90GtO}L S'f�") �)N��Y. fl .� 197 "�r1. 1• / :�� 14l �NCK 6,9^rK of NINA"-fA'(:0L � ;� �/.5U• INV�S� r►�rn11 , , ,�f /•.A7 l� U $�f urt�l.. , Li , i 11'J V (C-ry / C. F_!�' J f / 'r� 1 - .5 Z "f ? INC.I OF �17JUrTtorJ. f N,DE CkROco (A(�PkNYr1y comMrlaWt`I ;.4.ti��,.rr' — ,JS�� • 1� I� r''� �__ .l.!'... . r.�' - ,, 6v(.9J'��3R'I© G'���7� •- .3�1�jJ�� f:� lt�r1•iN/�.J�Ch. _�.��. � '��S?..._ J FO U G,c.UW t N C{ C.�l°f�,v r S jy VC fi C.e^1 COMWt T`f K�U CQh) ,A',jN Rc <� 1>TP ✓'-.rt�IJ t= iC.. J�� !"��<o. .>�oy' �. Cot )J -f i"•�C f ill ,r �:: (c. /r•.� Ic'/�7(�. � �/ l > a a r t97 Y. January 17, 1979 K.racyc3 Carpentry Sexvdmes Ltd. P. 0. Box 401, Neyrca8tle, Ontario Attention: Mr. W. ICraayvanger Dear Sirs Re: Ixtension of T 0 Camivnitv Please be advisod that the (buncil of the Town of Nowa.cstle passed the following resolution on January 15, 19`79; "That the extension of the Tyrone O m nunity Hall be approved in the amount of $43,945.00 and the Town approvo interim financing in the amount of $21,972.'50. , And further be it conditional upon all approvals from , regulatory bodies be confirmed in writing regarding financing, design etc. , and including bid evaluation 1 insurance coverage satisfactory to the Town Manager etc. , and the Mgyor and Clerk be authorized to sign a jcontract with Kraa;o'')Carpenting. In order to meet the requixxmints of this resolution would you please prd►vide us with the proof of liability insurance naming; the Trwn of Neveastle As Co--insured on the policy and also proof that you carry Workmantlbs nsation for your company and any Sub-Contractors you may use on th:Ls ! proti.ect. Your immdiate attention to this (flatter would be appreciated. i fours truly, it A. C. Guil€sr, AMCT, C C UA-Avn Dana.mar ACO:ne ,�. Q.C. Shits Mort- McInerney & Bra y n. R.D.. MO slMS, Q.C. BARRISTERS & SOLICITORS RE I"ED M.C. WINERNEY V ,J.F. BRADY W.M. BURCH FE 1 February 13, 1980 Mr. A. C. Guiler, A.M.C.T. , C.M.C. , Town Manager, Corporation of the Town of Newcastle, 40 Temperance Street, Bowmanville, Ontario. Dear Mr. Guiler: Re: Extension of Tyrone Community Centre In accordance with your request at our meeting on February 13th, 1980, I wish to submit my opinion with respect to the proposed contract for the extension of the Tyrone Community Hall. I understand that on January 15th, 1979 a resolution, No. C 79-6 was passed in the following words: "That the extension of the Tyrone Community Hall be approved in the amount of $43 , 945. 00 and the Town approve interim financing in the amount of $21, 972. 50. And further be it con- ditional upon all approvals from regulatory bodies be confirmed in writing regarding financing, design, etc. , and including bid evaluation insurance coverage satisfactory to the Town Manager, etc. , and the Mayor and Clerk be authorized to sign a contract with Kraco Carpenting. " Due to the fact that Wintario was not finalized until late 1979 no contract was in fact entered into with Kraco Carpenting. From the date of the original resolution on January 15th, 1979 to date Kraco Carpenting has not provided you with liability insurance and proof that it carries Workmen' s Compensation for its employees and subcontractors. .:a vrr.I- tirr rtrnW nkf OrA nrn r IM A9V nna . lcn � f r 1. 1T Zio ^i9AA 2 understand that you, your Town officials and representatives of the Tyrone Hall Community Board assumed that Kraco Carpenting could not fulfil these conditions and it was no longer interested in pursuing this contract. Based on this assumption, I understand that you authorized the Town officials and representatives of the Board to explore with the second lowest bidder, J. A. Sanders Contracting Ltd. the possibility of submitting a revised bid. A revised bid was in fact received in the amount of $54 , 413. 00. By resol- ' ution No. C 80-131 the recommendation of yourself and Mr. DeGroot was accepted. Your recommendation noted the following: "That the extension of the Tyrone Community Hall be approved in the amount of $54 ,413 . 00 and the Town approve interim financing in the amount of $27,206. 00. 1" Since this resolution it has come to light that Kraco Carpent- ing is still interested in bidding on the job and it alleges that it never received your letter of January 17th, 1979 out- lining the conditions. It has also come to light that one of the members of the Tyrone Hall Community Board is a sub- contractor of J. A. Sanders Contracting Ltd. which would put him in a conflict of interest in connection with this project. It should be noted that no contract has in fact been entered into between Kraco Carpenting or J. A. Sanders Contracting Ltd. I further understand that J. A. Sanders Contracting Ltd. has not been advised in writing by either you or a Town official that its recently revised quotation in the amount of $54 , 413. 00 has been accepted. It is my opinion that it would be prudent to rescind resolutions C 80-131 and C 79-6 and to pass a new resolution authorizing the call of tenders in accord- ance with the Town' s normal practice. It may be argued that there has been a breach of contract with J. A. Sanders Contracting Ltd. but in my view the damages which may be suffered will be minimal, if any. In view of the unusual circumstances that surround 3 - this matter and in view of the long delay in obtaining Wintario approval I deem it desirable that the project be tendered again so that no questions will surround the award- ing of the contract for this project. Should you have any questions please do not hesitate to contact me. Yo s r61y, David J. D. Sims, Q.C. I DJDS:mrs I