GENERAL COMMITTEE (Finance and Administration)

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Steve Andrews, P. Eng., Director of Asset Management

 

 

 

 

PREPARED BY:

Eardley Adams, Project Manager

Steven Sydij, Senior Construction Buyer

 

 

 

 

DATE OF MEETING:

December 5, 2005

 

 

 

 

SUBJECT:

Award of Tender # 188-T-05 for the construction of the Markham Village Library Expansion and Renovation

 

 

 

 

RECOMMENDATION:

THAT the report entitled “Award of Tender #188-T-05 for the construction of the Markham Village Library Expansion and Renovation” be received;

 

AND THAT the Tender # 188-T-05 for the construction of the Markham Village Library Expansion and Renovation be awarded to the lowest priced qualified bidder TORCOM Construction Inc., in the total amount of $7,625,000 exclusive of GST;

 

AND THAT a contingency of $426,000 exclusive of GST be established and that the Director of Asset Management or designate, be authorized to approve change orders up to the contingency amount with the provision that a monthly statement of these expenditures is forwarded to the Town Treasurer;

 

AND THAT the Markham Village Library Expansion and Renovation project budget in the total amount of $10,850,120 outlined on page 4 be approved;

 

AND THAT funding be provided from the following sources:

 

AND THAT the 2006 Capital Budget project #7067, Markham Village Library Landscaping, in the amount of $100,000, and 2006 Capital Budget project #7118, Markham Village Library Expansion & Renovation Additional Funding in the amount of $2,364,500 be pre-approved;

 

AND THAT the award for Markham Village Library Expansion and Renovation project furniture, fixtures and equipment in the amount of $741,405 be made in accordance with the Purchasing By-Law 2004-341;

                              

AND THAT the award for Markham Village Library Expansion and Renovation project collections, in the amount of $1,144,600 be made in accordance with the Purchasing By-Law 2004-341;

 

AND THAT the Mayor and Town Clerk be authorized to enter into an agreement with TORCOM Construction Inc. in a form satisfactory to the Town Solicitor.

 

PURPOSE:

 

The purpose of the report is to obtain Council approval to award Tender #188-T-05 for the construction of the Markham Village Library Expansion and Renovation project and to obtain approval for the funding of the project.

 

BACKGROUND:

 

On September 1, 2005, Council authorized staff to proceed with the tendering of the Markham Village Library Expansion and Renovation project.  This project encompasses the building of 12,500 square feet of new construction and 25,860 square feet of renovation to the existing library.  The renovated space consists of 6,300 square feet of Library Administrative space on the lower level and 19,560 square feet of existing library public space.  Also included in the project is the reconstruction and expansion of the parking lot, improvements to the entrance driveway and the provision of a waste management facility in the adjacent arena.

 

The Building and Parks Construction Committee (BPCC) reviewed the site layout, building components, architectural designs, mechanical components, environmental and energy conservation upgrades, building finishes, exterior design elements, and urban design requirements to ensure the project meets the library’s needs, satisfies local neighbourhood concerns and is of a high quality and sustainable design.

 

Copies of the site plan and building elevations are included as Appendix ‘1’ of the report.

 

Based on the results of these reviews, the BPCC endorsed the design of the Markham Village Library Expansion and Renovation project.  The design has been completed and the Development Services Committee approved the site plan on May 17, 2005.  The building permit applicant has been submitted and approval is pending.

 

On September 1, 2005, prior to tendering the project, Council was presented with a report that discussed a number of options to reduce the cost of the facility.  Council decided to endorse the full scope of the project as presented, without cutting any of the components and to allocate an additional $2,364,500 to the project.

 

DISCUSSION

 

Tender Result

The tender was issued to 8 pre-qualified companies in accordance with the Purchasing By-law 2004-341.  Staff and the architect have reviewed the bid documents and are satisfied that all terms, conditions, bid prices and specifications comply with the Town’s requirements.  The tender results are summarized below:

 

Advertised

Invited bids from 8 pre-qualified companies

Bids Closed on

November 21, 2005

Number picking up bid documents

8

Number responding to bid

6

 

Contractor

Total Contract Cost (excluding GST)

Base price

Other item

(Landscaping)

Total

TORCOM Construction Inc.

$7,550,000.00

$75,000.00

$7,625,000.00

Aquicon Construction Co. Limited

$7,579,000.00

$49,800.00

$7,628,800.00

The Atlas Corporation

$7,650,000.00

$67,800.00

$7,717,800.00

Jasper Construction Corporation

$7,650,000.00

$80,000.00

$7,730,000.00

Bondfield Construction Company Ltd.

$7,750,000.00

$49,000.00

$7,799,000.00

Pre-Eng Contracting Limited

$7,868,000.00

$65,000.00

$7,933,000.00

 

The lowest qualified bid represents an over expenditure of $348,065 or 4.78 % over the pre-tender cost estimate presented to Council in September, 2005.  The sources of funding for this shortfall is set out under the Financial Considerations section of this report.

 

Based on the evaluation results, staff recommends the Tender #188-T-05 for the construction of the Markham Village Library Expansion and Renovations project be awarded to the lowest priced qualified bidder, TORCOM Construction Inc. (Torcom), in the total amount of $7,625,000 exclusive of GST.

 

The Town Architect for this project, Shoalts and Zaback Architects Ltd., conducted a thorough review of each of the pre-qualified bidders and as part of this process, checked references from building owners and consultants and conclude that TORCOM have the necessary experience, qualifications and good track record to complete the construction of the library and renovations project.

 

The difference between the lowest bidder and the second lowest bidder (on the base price) is only $29,000 or 0.38%.  The spread between the lowest and the highest bidder is only $318,000 or 4.2 %.  The Architect has conducted a thorough review of the tendering prices and concluded that there are no anomalies in the pricing and that the bid price reflects the current market conditions.

 

A contingency allowance of $426,000 exclusive of GST represents 5.58% of the Base price plus landscaping cost and will be approved under a separate purchase order.  The contingency will be used to cover unanticipated changes to the project.  The use of the contingency funds will be controlled through the use of Change Orders issued by the Architect and authorized by Town staff.  It is recommended that the Director of Asset Management or designate be authorized to approve the construction change orders up to this amount with the provision that a monthly statement of these expenditures be forwarded to the Town Treasurer.

Upon Council approval of the tender on December 13, 2005, construction will start in early January 2006 and be scheduled for completion in the spring of 2007, except for the library administration area in the lower level of the existing library, which will be ready for occupancy no later than October 31, 2006.

 

FINANCIAL CONSIDERATIONS:

 

Project Cost Breakdown

The Markham Village Library Expansion and Renovation project pre-construction tender cost estimates and the final budget (based on construction tender pricing) are shown below:

 

 

The tender for the construction and renovation of the Markham Village Library totals is $7,625,000 excluding GST.  Included in this amount is a $75,000 additional component for landscaping that was itemized separately within the tender document.  Staff have included this landscaping component to augment the basic level of landscape treatment built into the base tender which only consists of sodding and concrete sidewalks.  The proposed 2006 Capital Budget includes project #7067, Markham Village Library Landscaping which is established at $100,000.  Staff are recommending pre-budget approval of this project to offset the cost of this additional item.

 

The award for future components of the Markham Village Library Expansion and Renovation project, such as furniture, fixtures and equipment for $741,405 be made in accordance with the Purchasing By-Law 2004-341.

 

The award for future components of the Markham Village Library Expansion and Renovation project, such as collections for $1,144,600 be made in accordance with the Purchasing By-Law 2004-341.

 

Proposed Project Funding

Proposed funding for the $10,850,120 Markham Village Library project is recommended as follows:

 

 

 

Additional Funding Sources and Pre-Budget Approval

As presented to Council on September 1, 2005, the pre-tendering cost estimates identified a funding shortfall in the amount of $2,364,500.  This amount has been requested in a 2006 Capital Budget request, project #7118, Markham Village Library Expansion & Renovation Additional Funding, noted in the above table.

 

As outlined in the table on page 4, the tender amount is higher than the pre-construction tender cost estimates by $348,065 of which $100,000 relates to enhanced landscaping and the balance is due to actual construction bids being higher than the pre-construction tender cost estimate.

 

A 2006 capital request is also being brought forward for the enhanced landscaping.  Capital project #7067 – Markham Village Library Landscaping, as shown in the table above, in the amount of $100,000 is included in additional funding. 

 

Since funds must be approved by Council prior to the award of a tender, it is recommended that the 2006 Capital project #7067 – Markham Village Library Landscaping, in the amount of $100,000 and project #7118 – Markham Village Library Additional Funding, in the amount of $2,364,500 be pre-approved.

 

It is recommended that the remaining shortfall in the amount of $248,065 ($348,065 - $100,000 from the 2006 Landscaping project) be funded from the following sources:

·        $107,000 from surplus funds remaining in the Library IT account for the 2002 Angus Glen Community Centre capital project;

·        $126,959 from Development Charges Reserves; and

·        $14,106 from the 10% Non-DC Reserve.

 

Funding for the total $10,850,120 project spans several years and is from several different sources.  As shown in the following table, 42.9% (or $4,650,843) of the project is funded from Development Charges and the remaining 57.1% (or $6.2M) is from Non-Development Charge sources:

 

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

 

The Markham Public Libraries and the Purchasing Department have been consulted in the preparation of this report.

 

 

 

ATTACHMENTS:

Appendix 1      -           Project Site Plan and Elevations

 

 

 

 

 

Steve Andrews, P. Eng.,

Director of Asset Management

 

Catherine Biss,

CEO, Markham Public Libraries

 

 

 

 

Jim Sales, Commissioner of

Community and Fire Services

 

 

Q:\Commission Share\Operations and Asset Management\Reports\2005\C & U\Facilities\Award Report #188-T-05.doc