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Home My WebLink AboutCOD-008-19Clarington Corporate Services Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: May 27, 2019 Report Number: COD -008-19 Resolution: GG -360-19 File Number: CL2019-10 By-law Number: Report Subject: Prospect Street Reconstruction Recommendations: That Report COD -008-19 be received; 2. That Eagleson Construction with a total bid amount of $2,171,275.20 (Net HST Rebate) being the lowest compliant bidder meeting all terms, conditions and specifications of Tender CL2019-10 be awarded the contract for the Prospect Street Reconstruction, as required by the Engineering Services Department; 3. That the funds required for this project in the amount of $3,009,600.00 (Net HST Rebate) which includes the construction cost of $2,171,275.20 (Net HST Rebate) and other costs such as design, property acquision, soil testing, utility relocation, inspection, contract administration, permit fees and contingency of $838,324.80 (Net HST Rebate) be funded by the Municipality from the approved budget allocations as follows: Prospect St. Reconstruction (2019 Budget) (O'Dell St to Fourth St.) 110-32-330-83242-7401 $1,040,000.00 Prospect St. Reconstruction (2017 Budget) (utility relocations and property acquisition) 110-32-330-83242-7401 $ 150,000.00 Prospect St. and Lambs Lane Area Design (2014 Budget) 110-32-330-84242-7401 Municipal Capital Works Reserve Fund 511-00-000-00000-7418 Prospect St. Reconstruction (O'Dell St. to Fourth St.) Region of Durham Recovery 110-32-330-83242-7402 $ 106,076.09 $ 124,823.91 $1,588,700.00 4. That all interested parties listed in Report COD -008-19 and any delegations be advised of Council's decision by the Corporate Services Department. Municipality of Clarington Report COD -008-19 Report Overview Page 2 To request authorization from Council to award the contract for the completion of the reconstruction of Prospect St., Second Street, and Veterans Avenue to an urban standard including underground servicing, concrete curb and gutter, new road base, and base asphalt. This project is being completed in coordination with the Region of Durham who are replacing the existing sanitary sewer and watermain as detailed in the tender document and as required by the Municipality of Clarington's Engineering Services Department. 1. Background 1.1 Tender specifications were prepared by the Engineering Services Department and CIMA and provided to the Purchasing Services Division. 1.2 Tender CL2019-10 was issued by the Purchasing Services Division and advertised electronically on the Municipality's website. Notification of the availability of the document was also posted on the Ontario Public Buyer's Association website. Seventeen (17) Companies downloaded the tender document. 1.3 The Tender closed April 30, 2019. 2. Analysis 2.1 Three (3) bids were received in response to the tender call. The Bids were reviewed and tabulated by the Purchasing Services Division (see Attachment 1). All submission received were deemed compliant. 2.2 The results were forwarded to the Engineering Services Department for their review and consideration. 2.3 After review and analysis of the submissions by the Engineering Services Department and the Purchasing Services Division, it was mutually agreed that the low bidder, Eagleson Construction be recommended for the award of contract CL2019-10 (see Attachment 2). 2.4 Eagleson Construction has successfully completed work for the Municipality in the past. 2.5 Based on the 2017 Budget allocation for the project as well as for continuity, cost efficiencies, and maintaining project schedule, CIMA+ will continue to provide the inspection and contract administration required for this project. It is important to have the design consultant available during construction to address any changes that may be required and to provide stamped as -constructed drawings at the completion of the project. Municipality of Clarington Resort COD -008-19 Page 3 2.6 It is of mutual interest and importance to Engineering Services, the Municipality of Clarington, and its residents that the project award be reviewed, processed, and approved for the issuance of the award of the Prospect St. Reconstruction project contract expeditiously in order to grant the Contractor sufficient time to complete the complex and onerous nature of the project. This will assist in ensuring that the Municipality is provided with a high quality end product, minimize risk of cost overruns in building aspects of the project in unfavorable weather conditions, minimize risk of premature road deterioration, and minimize disruptions and project duration experienced by the Municipality's residents. 3. Financial 3.1 The funds required for this project in the amount of $3,009,600.00 (Net HST Rebate) which includes the construction cost of $2,171,275.20 (Net HST Rebate) and other costs such as design, property acquisition soil testing, utility relocation, inspection, contract administration, permit fees and contingency of $838,324.80 (Net HST Rebate) be funded by the Municipality from the approved budget allocations as follows: Prospect St. Reconstruction (2019 Budget) (O'Dell St to Fourth St.) 110-32-330-83242-7401 $1,040,000.00 Prospect St. Reconstruction (2017 Budget) (utility relocations and property acquisition) 110-32-330-83242-7401 $ 150,000.00 Prospect St. and Lambs Lane Area Design (2014 Budget) 110-32-330-84242-7401 Municipal Capital Works Reserve Fund 511-00-000-00000-7418 Prospect St. Reconstruction (O'Dell St. to Fourth St.) Region of Durham Recovery 110-32-330-83242-7402 $ 106,076.09 $ 124,823.91 $1,588,700.00 3.2 The value of the total project cost is over the allocated budget from the various funding sources and is utilizing the Municipal Capital Works Reserve Fund to make up the deficit. The deficit is attributed to the high estimated cost of the gas main relocation works that was provided by Enbridge. We anticipate that this item will come in under the estimated cost. The contract contains provisional items totaling 9.2% of the contract value plus 5.8% of construction contingency. 3.3 The use of the Municipal Capital Works Reserve Fund is appropriate given the nature of this capital project. The project is not Development Charges related and therefore excess funding must come from a non -development charges related source. 3.4 The Engineering Department has identified several projects which are anticipated to come in under budget; however as these projects are not yet finalized it is not financially prudent to reallocate these funds from said projects. Once completed, excess funds from the completed capital projects will be transferred to the appropriate reserve funds (including the Capital Works Reserve Fund) in order to replenish the reserve fund. Municipality of Clarington Page 4 Report COD -008-19 4. Concurrence This report has been reviewed by the Director of Engineering Services who concurs with the recommendations. 5. Conclusion It is respectfully recommended that Eagleson Construction being the lowest compliant bid be awarded the contract for the Prospect Street Reconstruction with all work being completed in accordance to all terms, conditions, specifications and drawings of Tender CL2019-10. 6. Strategic Plan Application Not applicable. Submitted by: Reviewed by: Marie Marano, H.B. Sc., C.M.O., Andrew C. Allison, B. Comm, LL.B Director of Corporate Se ' es CAO Trevor Pinn, CPA, CA. Director of Finance/Treasurer Staff Contact: David Ferguson, Purchasing Manager, 2209 or dfergusion@clarington.net Attachments:1 - Bid Summary 2 - Engineering Recommendation Memo List of interested parties to be notified of Council's decision is on file in the Corporate Services Department. Attachment 1 to Municiaality of Clarinaton Resort COD -008-19 Bid Summary CL2019-10 — Prospect Street Reconstruction BIDDER Total Bid (including HST) TOTAL BID (Net HST Rebate) Eagleson Construction $2,411,105.52* $2,171,275.20 Hard -Co Construction Ltd. $2,623,491.63 $2,362,535.47 Blackstone Paving & Construction Ltd. $3,725,178.63 * $3,354,638.74 Note: Bids with an "' denotes an addition error within the submission. 0 aron $WWDFRHW8: I.Eff IM40il C14 Memo If this information is required in an alternate format, please contact the Accessibility Co-ordinator at 905-623-3379 ext. 2131 To: David Ferguson, Purchasing Manager From: Robert Brezina, Capital Works Engineer Date: May 17, 2019 Subject: CL2019-10 ❑ Prospect St. Reconstruction File: CRC.Prospect St.1 The Engineering Services Department has reviewed the submissions for CL2019-10 and offers the following comments. Road Limits Description Prospect St., Prospect St. ❑) LW 12 11EHUB VAR❑ Reconstruction of the roads Second St., Fourth St. inclusive of sanitary sewer Veterans Ave. Second St. From Prospect St. to and watermain replacements, Lambs Lane storm sewer installation, utility Veterans Ave. F1 From Prospect St. relocations, property to Lambs Lane acquisitions, etc. The low bidder on this contract was Eagleson Construction. Based on past experience with this contractor, we recommend award of the contract to Eagleson Construction in the amount of $2,411,105.52 inclusive of HST, or $2,171,275.20, net of HST rebate. A total contingency amount of approximately 15.0% of construction costs is required for this project, based on past experience. The tender includes provisional items that equal approximately 9.2% of the construction cost, so 5.8% of construction costs have been carried to bring the contingency to the required 15.0%. Therefore, including other costs such as design, property acquisition, soil testing, utility relocation, inspection and contract administration, permit fees, contingencies, and net HST costs, the Engineering Department advises of the following funding: Page 11 The Corporation of the Municipality of Clarington 40 Temperance Street, Bowmanville ON L1 C 3A6 1905-623-3379 File No.: CRC.Prospect St.1 Construction (net of HST) (Based on Low Bid) $2,171,275.20 Other costs (net of HST) $838,324.80 Total Project Value $3,009,600.00 Budget Amount: 3 RVSHFVM W5 FFR \NVT - 2 [Ei HUB VW RXM[6 W7 $1,040,000.00 (2019 budget) 110-32-330-83242-7401 3 RvSHFVM W5 F-FRdWA*-W\❑V IEI HUB WK) RXM16 WIREE $150,000.00 utility relocations and property acquisition) (2017 budget) 110-32-330-83242-7401 Prospect St. and Lambs Lane Area Design (2014 budget) $106,076.09 110-32-330-83242-7401 Municipal Capital Works Reserve Fund $124,823.91 511-XX-XXX-XXXXX-7418 3 RvSFFVB W5 WfRAANTM-12 [ID HUB WFRI) RXAU16 W1 $1,588,700.00 Region of Durham Recovery 110-32-330-83242-7402 Total $3,009,600.00 * A more detailed breakdown to be provided to Finance to provide necessary information for tracking of Tangible Capital Assets (TCA). Based on the 2017 Budget allocation for the project as well as for continuity, cost efficiencies, and maintaining project schedule, CIMA+ will complete the inspection and contract administration. This is important to have the design consultant available during construction to address any changes that may be required and to provide stamped as - constructed drawings at the completion of the project. Considering all project costs, there is sufficient funding available and the Engineering Department recommends that the Purchasing Department move forward with award of the contract based on the above apportionments. Should you have any further questions, please feel free to contact the undersigned. The Corporation of the 40 Temperance Street, Bowmanville ON Page 12 Municipality of Clarington L1 C 3A6 1905-623-3379 File No.: CRC. Prospect St.1 Regards, Robert Brezina Capital Works Engineer Pc: Trevor Pinn, Director of Finance Marie Marano, Director of Corporate Services A.S. Cannella, Director of Engineering Services R. Albright, Assistant Director of Engineering Services Page 13 The Corporation of the Municipality of Clarington 40 Temperance Street, Bowmanville ON L1 C 3A6 1905-623-3379 File No.: CRC.Prospect St.1 '��r .. �� . • IIIIIIIIIIIIIIIIIIIC �� " �� I'�: I�i�111�� • � �1l11\\ `��, �`�� 1111111111111111��; � . • - �� ii��i 1�1= -��■ C11111l1!!1 11111�� RE_mill `i 11rrII111111iii11 Milli 11111_ VIII ��= �: ��.�- � �� .. - . ■ . - SIZE =- �,•��.�� 111111111. _��■ I� � � ��j . .��1lilllll F i / ■ � �� ■ •• �r►� IIS KEY MAP N.T.S. Page 14 The Corporation of the Municipality of Clarington 40 Temperance Street, Bowmanville ON L1 C 3A6 1905-623-3379