TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: July 7, 2025 Report No. EPW-25-009
TO: Council
FROM: Charles Davie, Manager of Engineering
SUBJECT: Esquimalt Road Phase 1 and Craigflower Road Crosswalk Upgrades - Construction Contract Award
RECOMMENDATION:
Recommendation
That Council:
1. Award a construction contract (ENG #25-02), optional and provisional work and future change orders within the approved budget, to Hazelwood Construction Ltd. in the amount of $2,933,745.17, for Esquimalt Road Active Transportation and Underground Improvements Phase 1 and for Craigflower Road Crosswalk Upgrades, as described in Staff Report EPW-25-009; and
2. Approve the reallocation of $150,000 from the Esquimalt Road Phase 1 project to the Craigflower Crosswalk Upgrade project with funding to come from the Infrastructure Reserve Fund.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to award a construction contract for Phase 1 of the Esquimalt Road Active Transportation and Underground Improvements project, which is between Joffre Street and Dominion Road, and for the Craigflower Road Crosswalk Upgrades project.
BACKGROUND:
The Esquimalt Road Active Transportation and Underground Improvements project is a project identified in the Township’s Active Transportation Network Plan (ATNP) to add quick-build protected bike lanes on Esquimalt Road from Canteen Road to Dominion Road with the addition of sewer and drain main repairs. Phase 1 of this project is on Esquimalt Rd between Joffre St and Dominion Rd.
The Craigflower Road Crosswalk Upgrades project is a project identified in the Township’s ATNP as a priority project to review and upgrade the crosswalks along Craigflower Road within the Township. This project introduces Rectangular Rapid Flashing Beacon (RRFB) crosswalks to the crosswalks along this corridor.
On May 23, 2025, a tender was posted for both the Esquimalt Road Active Transportation and Underground Improvements - Phase 1 and Craigflower Road Crosswalk Upgrades projects. This follows engagement on Esquimalt Road Phase 1 in September 2024 and subsequent direction from Council at the October 28, 2024, Council meeting to continue with detailed design followed by construction tendering (see Staff Report No. EPW-24-026 for more details).
The key elements included in the tender for each project are summarized and shown in the detailed design drawings in Attachment 1 for reference.
Project 1 - Esquimalt Road Active Transportation and Underground Improvements - Phase 1
The tendered project includes the following changes on Esquimalt Road and nearby roadways:
- New curb, gutter, sidewalk and ramps at various intersections to improve accessibility and safety
- New continuous sidewalk and driveway style access across Macaulay Street at Esquimalt Road
- New protected uni-directional bike lanes from Lampson Street to Dominion Road
- Removal of on-street parking between Lampson Street to Dominion Road
- New Rectangular Rapid Flashing Beacon (RRFB) multi-use crosswalks at Macaulay Street, 848 Esquimalt and at Dunsmuir Road
- Traffic signal upgrades at Lampson Street and Head Street including new signal timing at Lampson Street and Esquimalt Road
- New protected bi-directional bike lane connector on Esquimalt Road from Dunsmuir to Dominion Road
- (1) New and (1) relocated centre medians islands locations between Lampson Street and Dunsmuir Road
- New roadway paving in select areas
- Lighting upgrades at Macaulay and Dunsmuir intersections
Project 2 - Craigflower Road Crosswalk Upgrades
The tendered project includes the following changes on Craigflower Road:
- New RRFB crosswalks at Aral, Dellwood, Garthland, Foreshaw, 1100 blk mid-block and Arcadia
- New curb, gutter, sidewalk and ramps at various intersections to improve accessibility and safety
- New roadway paving in select areas
- Lighting upgrades at new crosswalk locations (where warranted)
Tender Summary
The tender closed on June 19, 2025. The following is a summary of the five bids received:
Bidder Total Bid Amount (excludes GST)
Hazelwood Construction Services Inc. $2,933,745.17
Sparker Construction Ltd. $3,370,499.50
Alterra Construction Ltd. $3,423,163.90
Don Mann Excavating Ltd. $3,750,166.40
C-1 Contractors Ltd. $4,208,593.19
Staff and the Township’s consultant reviewed the bids and determined all five bids meet the requirements of the tender. Hazelwood Construction Services Ltd. (Hazelwood) is the low bidder and will be the only bid listed for the remainder of this report.
Below is a breakdown by project of the budget compared to the total costs using the low bid. All costs include consultant fees (design and construction administration) and construction bid amounts. Contingency is not included and is expected to be used from the difference between budget and projected costs.
Project # Funding Source Budget Total Project Costs
Project 1 Multiple $3,360,000.00 $2,736,628.78
Project 2 Community Works Fund $475,000.00 $550,230.39
$3,835.000.00 $3,286,859.17
These tenders were based on MMCD Contracts, which permit the Township to change the quantities if the quantity change is 15% or less. Any change beyond 15% requires approval from the contractor and is subject to unit rate changes.
ANALYSIS:
Staff recommend awarding a contract to the low bidder Hazelwood for:
- Project 1 - Esquimalt Road Active Transportation and Underground Improvements; and
- Project 2 - Craigflower Road Crosswalk Upgrades.
The scope of work described in this report and shown in the design drawings in Attachment 1 & 2 for these projects reflects the projects as identified in the ATNP, the scope identified in the successful grant from the Provincial government, and for Esquimalt Road is based on the feedback received during the detailed design engagement from September 2024.
The low bidder for these projects is within the combined budget and allows for sufficient contingency to be used during construction. If awarded, construction would start in Summer 2025 and continue into Fall 2025.
Environmental Impact
Active transportation plays a significant role in mitigating climate change as the transportation sector accounts for 33% of the community greenhouse gas (GHG) emissions. Completing bike lanes and pedestrian improvements on Esquimalt Road and Craigflower Road addresses high priority projects identified in the ATNP.
OPTIONS:
1. That Council award a construction contract (ENG #25-02), optional and provisional work and future change orders within the approved budget, to Hazelwood Construction Ltd. in the amount of $2,933,745.17, for Esquimalt Road Active Transportation and Underground Improvements Phase 1 and for Craigflower Road Crosswalk Upgrades, as described in Staff Report EPW-25-009.
2. That Council request additional information from staff.
3. That Council provide alternate direction to staff.
COUNCIL PRIORITY:
Engaged & Healthy Community - Implement Active Transportation Network Plan
FINANCIAL IMPACT:
The 2025-2029 Financial Plan identifies the following budget:
- 2025 (approved budget)
o Esquimalt Road Active Transportation and Underground Improvements Phase 1 = $2,815,614 (original budget of $2,950,000 with design costs incurred removed)
o Craigflower Road Crosswalk Upgrades = $475,000 ($75,000 of which is a 2023 carry forward)
The original budget is based on the following breakdown:
- Esquimalt Road Active Transportation and Underground Improvements Phase 1:
o Design = $150,000
o Active Transportation Improvements = $1,300,000
o Utility Repairs = $500,000
o Road Repairs = $500,000
o B.C. Active Transportation Grant = $500,000
- Craigflower Road Crosswalk Upgrades:
o Design = $75,000
o Construction = $400,000
The above does not include an additional $390,000 received from developments from Inflow & Infiltration (I&I) contributions that will be applied to sanitary sewer works along Esquimalt Road as well as $20,000 received from a developer for the reinstatement of a median island between Head Street and Dunsmuir Road.
The bid for Craigflower Road exceeds the current project budget but the combined budget of both projects is sufficient to deliver both. Though this bid is above the initial budget allocation for this project, it is in line with updated cost estimates received during detailed design. Staff recommend utilizing approximately $150,000 from the Esquimalt Road Active Transportation and Underground Improvements Phase 1 budget (Infrastructure Reserve) to the Craigflower Road Crossing Upgrades to cover the budget shortfall and allow for project contingency.
COMMUNICATIONS/ENGAGEMENT:
Communications during construction will be managed by staff and the contractor. Staff will mail a letter to all residents along the corridor in advance of construction to explain the project and impacts. The contractor will be required to notify residents during construction of traffic and pedestrian impacts. Staff will utilize social media and the Township’s website where necessary to communicate significant impacts.
TIMELINES & NEXT STEPS:
The next step in this project is issuance of a notice of award pending Council approval. Substantial complete for the construction phase is currently identified as November 15, 2025.
REPORT REVIEWED BY:
1. Joel Clary, Director of Engineering & Public Works
2. Ian Irvine, Director of Finance, Reviewed
3. Deb Hopkins, Director of Corporate Services, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Attachment 1 - Esquimalt Road Active Transportation and Underground Improvements drawings
2. Attachment 2 - Craigflower Road Crosswalk Upgrades drawings