REQUEST FOR DECISION
DATE: August 28, 2017 Report No. EPW-17-039
TO: Laurie Hurst, Chief Administrative Officer
FROM: Jeff Miller, Director of Engineering and Public Works
SUBJECT:
Title
Various Capital Projects 2017
End
RECOMMENDATION:
Recommendation
That Council approves:
a. the awarding of the Various Capital Projects 2017 tender for a cost of $416,256.43 (not including GST) to Sparker Construction Ltd.;
b. that an additional amount of $182,181.80 be released from the Infrastructure and Revitalization Reserve; and
c. that an additional amount of $16,074.69 be released from the Community Works Fund.
Body
RELEVANT POLICY:
Not applicable
STRATEGIC RELEVANCE:
Well Managed and Maintained Infrastructure - Identify infrastructure repair and proactively plan for replacement needs.
BACKGROUND:
During the 2017 budget process, a number of underground work and surface work projects were identified as requiring repair. These projects were approved. A tender package was created that combines three of these projects into a single scope of work and was released for bidding.
The three construction sites are:
A. West Bay Walkway and Park Improvement
1) Removal of existing concrete walkway and replacement
2) New storm drain
3) Landscaping
B. Lampson Street Sewer Replacement
1) Sanitary sewer replacement
2) Road restoration
3) Line painting
C. Sidewalk improvements for Lockley Road and Intervale Avenue
1) Storm drain works
2) Concrete works
3) Asphalt works
4) Line painting
5) Landscaping
The tender for this project was issued on July 26, 2017 and closed on August 16, 2017. A total of three bids were received. All the bids were compliant with the tender call. The award of this tender was based on lowest cost criterion.
A breakdown of the bids is as follows:
|
Bidder |
Bid Cost |
|
Sparker Construction Ltd. |
$416,256.43 |
|
Brunnell Construction Ltd. |
$461,750.00 |
|
Ralmax Contracting Ltd. |
$640,356.00 |
ISSUES:
1. Rationale for Selected Option
The tenders have been reviewed. Based on the criterion of lowest cost it is staff’s recommendation that the tender be awarded to Sparker Construction Ltd. for a cost of $416,256.43 (does not include GST or contingency amount).
The bid fulfills the scope of the work laid out in the tender. This cost exceeds the combined projects budget and additional funding is required.
2. Organizational Implications
These projects have been incorporated into the Engineering Department’s 2017 work plan. There are no significant operational impacts being expected due to the work.
3. Financial Implications
The three projects had a combined budget of $260,000 (including contingency) with this cost broken down as follows:
West Bay Walkway and Park Improvement $100,000
Lampson Street Sewer Replacement $65,000
Sidewalk improvements for Lockley Road and Intervale Avenue $50,000
Sewer replacement for Lockley Road/Intervale Avenue $45,000
Total $260,000
The preferred bid cost has a combined budget of $458,256.47 (including contingency), which is broken down as follows:
West Bay Walkway and Park Improvement $82,557.78
Lampson Street Sewer Replacement $214,139.20
Sidewalk improvements for Lockley Road and Intervale Avenue $62,516.89
Sewer replacement for Lockley Road/Intervale Avenue $57,042.60
10% contingency - $42,000.00
Total $458,256.47
The preferred bid is $198,256.47 over the proposed combined budget. Two funding sources were used to provide funding for the various projects: Infrastructure and Revitalization Reserve (IR) and Community Works Funding (CWF). The following amounts are required from the various funding sources in order for this project to proceed.
Lampson Street Sewer Replacement (IR) $149,139.20
Sidewalk improvements for Lockley Road/Intervale Avenue (CWF) $12,516.89
Sewer replacement for Lockley Road/Intervale Avenue (IR) $12,042.60
10% contingency (CWF) $3,557.78*
10% contingency (IR) $21,000.00
*Surplus funds the West Bay Walkway component supplement contingency amount from CWF.
Both funding sources have the ability to support the request for additional funding.
4. Sustainability & Environmental Implications
These projects will remove and replace components of the infrastructure that are in failure mode or near failure mode. By carrying out this work, these components will be considered at the beginning of their life span and will provide a number of years of service before requiring major maintenance or replacement. The revised condition will be included in the asset database to assist with the determination frame work for the replacement of the assets in a sustainable manner.
5. Communication & Engagement
The preferred bidder will be notified of the award of the contract and they will enter into a contract with the Township. The remaining bidders will be notified of the results of the evaluation and the status of their bids.
ALTERNATIVES:
1. That Council approves:
a. the awarding of the Various Capital Projects 2017 tender for a cost of $416,256.43 (not including GST) to Sparker Construction Ltd.;
b. that an additional amount of $182,181.80 be released from the Infrastructure and Revitalization Reserve; and
c. that an additional amount of $16,074.69 be released from the Community Works Fund.
2. That Council does not approve the awarding of the Various Capital Projects 2017 tender for a cost of $416,256.43 (not including GST) to Sparker Construction Ltd. and directs staff to cancel the tender and re-tender with work.