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TO: |
Mayor and Members of Council |
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FROM: |
Alan
Brown, Director of Engineering |
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PREPARED BY: |
Allan
Arbuckle, Manager of Infrastructure and Capital Works |
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DATE OF MEETING: |
2004-June-28 |
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SUBJECT: |
Tender Award - Contract 070-T-04 Rodick Road /Highway 407 Grade Separation |
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RECOMMENDATION:
THAT the staff report
entitled “Tender Award - Contract 070-T-04
Rodick Road /Highway 407 Grade Separation” be received.
AND THAT the tender for the construction of
$ 8,767,367.32 inclusive of 7% GST. ($8,193,810.23 excluding GST).
AND THAT the Mayor and Clerk be
authorized to execute the contract with Graham Bros. Construction Limited for
the construction of
AND THAT Engineering staff be authorized to
retain the consulting firm of
AND THAT Engineering staff be authorized to
retain a qualified consulting firm to provide materials and foundation testing
services during construction of the project for an estimated total cost of $
85,600.00 inclusive of 7% GST ($ 80,000.00 exclusive of GST).
AND THAT Engineering staff be authorized to
retain the consulting firm of Klienfeldt Consultants as
the preferred supplier to provide
environmental services relating to the
preparation of a Site Specific Risk Assessment and a Soil and Groundwater Management
Plan for the former Magna property to an upset limit of $99,510.00 inclusive of
7% GST ($93,000.00 exclusive of GST);
AND THAT Engineering staff be authorized to
retain the consulting firm of Klienfeldt Consultants as
the preferred supplier to provide environmental
inspection and monitoring services during the implementation of the Soil
and Groundwater Management Plan for the former Magna property to an upset limit
of $135,890.00 inclusive of 7% GST ($127,000.00 exclusive of GST);
AND THAT a contingency amount totalling
$428,000.00 inclusive of GST, ($400,000.00 excluding GST) be reserved for the
implementation of a soil management plan to deal with the contaminated soils on
the Magna property;
AND THAT Purchasing Department staff be
authorized to issue purchase orders to 407 ETR for a total amount not to exceed
$ 21,400.00 inclusive of 7% GST, ($ 20,000.00 exclusive of GST) for the cost of
work to be carried out by 407 ETR for the Highway 407;
AND THAT funding for the project be provided from the approved Capital Budget accounts and
recoveries from the Region of York as identified in this report;
AND THAT the Operations and Asset Management
staff include in their 2006 and subsequent years operating budgets the
estimated value of the annual operating, maintenance and capital depreciation
costs for the grade separation and municipal services;
AND THAT upon payment of all
invoices, any remaining funding be returned to its original funding source.
PURPOSE:
The purpose of this report is to award the
contract for the construction of the
BACKGROUND:
The extension of
An Environmental Assessment was
completed for the project in June of 1996 and work on the detailed design of
the project, the acquisition of properties, the negotiation of agreements and
the securing of approvals for the project has been ongoing since 1999. Delays to the start of the construction have
resulted from:
·
the need to acquire
property from a number of landowners including Magna International;
·
the need to resolve a number of jurisdictional and
procedural issues between the Ministry of Transportation and the 407ETR
consortium relating to the impact of the Rodick Road extension on Highway 407;
·
the impact of the proposed construction on the existing and
future operations of Highway 407;
·
changes in the
requirements of Toronto & Region
Conservation regarding a proposed
crossing of Beaver Creek;
·
modifications to the project
design to accommodate a possible future YRTP transitway
on
The acquisition of properties and the
negotiation of approvals have been completed to the extent that the project has
been tendered with construction scheduled to start in early July, pending the
execution of an agreement with 407 ETR regarding the construction and maintenance
of the overpass structure and the issuing of the required permits from the
Ministry of Transportation.
The construction of the Rodick
Road/Highway 407 overpass includes:
DISCUSSION:
The tender was issued in accordance with
Purchasing By-law #143-2000. It was
advertised on the ETN and Daily Commercial News and thirty-two companies picked
up the tender. The tender was closed on
|
Contractor |
Total Tender Price (including 7% GST) |
Total Tender Price (excluding GST) |
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Graham Brothers Construction Ltd. |
$8,767,367.32 |
$8,193,801.23 |
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Brennan Paving |
$8,781,622.89 |
$8,207,124.19 |
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Dufferin Construction Company |
$8,919,477.20 |
$8,335,960.00 |
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Miwel |
$9,681,215.07 |
$9,047,864.55 |
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B. Gottardo |
$9,694,843.92 |
$9,060,601.79 |
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Dagmar Construction Inc. |
$9,941,571.80 |
$9,291,188.60 |
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Elirpa Construction |
$9,549,843.93 |
$10,218,333.01 |
In addition to the work included in these total
tender prices, contractors were also required to submit prices for a number of
items of work relating to the management of contaminated soils on the former
Magna property. Because the magnitude of the soil management work has not yet
been finalized, the total cost of the work cannot be determined and therefore
has not been included in the total tender prices listed above. The unit prices
submitted by each contractor for the soil management work have been reviewed
and the potential impact of these prices on the total cost of the project has
been considered as a part of the tender review.
The bids were verified for accuracy and
compliance with the tender terms and conditions. Engineering and Financing staff have reviewed
the tender submitted by Graham Brothers Construction Ltd. and are satisfied that all terms, conditions, bid prices and specifications
comply with the Town’s requirements. The unit prices submitted by Graham Brothers for the contaminated soil management work are generally lower than those
submitted by the second and third lowest bidders.
References for Graham Brothers have been checked
and proven satisfactory.
Engineering staff have also requested that the
technical audit consultant retained by the Town review the tenders of the two
lowest bidders to confirm the results of the Town staff bid analysis. A copy of
the technical auditor’s report is included as Appendix “B” of this report.
407
ETR Requirements
The Town must enter into an agreement with 407
ETR for the construction and maintenance of the
CONSULTANT SERVICES:
Construction
Supervision and Contract Administration Services
In March of this year,
Council authorized staff to request detailed proposals from qualified
consulting firms to provide construction supervision and contract
administration services for the project if an acceptable agreement to provide
these services could not be reached with the consulting firm previously
retained for the design of the project. Staff has met a number of times with
the design consultant in an attempt to resolve outstanding issues regarding fees
and the delivery of services, however, an acceptable agreement has not been
reached. Staff has therefore proceeded to solicit competitive proposals from three
qualified consulting firms each of who have demonstrated the experience,
ability and resources to complete this type of project given the size, short
delivery time and complexity of the
Detailed proposals were received from two of the
three invited firms. After conducting a detailed review of the project design
and tender documentation, UMA Engineering concluded that they were currently unable
to commit a sufficient number of senior staff members required to complete this
complex assignment within the specified timeframes and therefore they declined
to submit a proposal.
The detailed proposals submitted by
Details of the fee proposals submitted by the
consultants are presented in the following table,
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Consultant |
Fee
(including 7%GST) |
Fee
(excluding GST) |
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Morrison
Hershfield |
$331,325.50 |
$309,650.00 |
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McCormick
Rankin Corp. |
$577,231.83 |
$539,469.00 |
Materials and Geotechnical Services
For
quality control purposes, the Engineering Department must retain a materials
testing firm to provide geotechnical and materials testing during
construction. Staff
is proposing to solicit proposals for this work from three qualified testing
firms and have included an allowance of
$85,600.00 inclusive of 7% GST ($ 80,000.00 exclusive
of GST) to cover the cost
of these services.
Environmental Services
The construction of the
Further detailed testing and the
development of a soil management plan were to be carried out by the design
consultant and the required remediation works was to be included as a part of
the construction contract. Although
included in the design contract, the design consultant did not carryout this work prior to the tendering of
the project and therefore the soil management work could not be included in the
project tender without creating significant delays to the project.
The management of contaminated
soils has the potential to significantly affect the total cost of the project
depending upon the soil management option selected. It is estimated that the cost
of removing all contaminated soil from the site to a suitable treatment and
disposal site could be in excess of $ 3,000,000.00 depending upon the type and
extent of the contamination. As an alternative to the removal and treatment of
the contaminated soils, staff is pursuing the option of
on-site management of the materials, a procedure similar to that employed for
the construction of the
Given the design consultant’s failure to
complete the required soil management work, staff is recommending that a
separate environmental consultant be retained directly by the Town for the testing
and analysis of the soils and the preparation of a Site Specific Risk Analysis
and a Soil and Groundwater Management Plan. As the Site Specific Risk Analysis
and the Soil and Groundwater Management Plan must be completed and accepted before
excavation and grading work on the Magna property can commence, these documents
must be prepared within a short time frame to avoid delays to the project. Staff
is therefore recommending that Klienfeldt Consultants
Limited be retained as the preferred supplier to perform this work at an upset
limit cost of $99,510.00 inclusive of 7% GST ($93,000.00 exclusive of GST). Klienfeldt Consultants
is familiar with the
project and the soil conditions on the Magna property, having carried out the
original background research and preliminary field investigations for the Town
during the property expropriation proceedings. The firm is also well
experienced in this type of work, has performed well for the Town on previous
assignments and has indicated that they have the resources available to
complete the work within a compressed time frame.
Staff
is also recommending that the same firm be retained to provide environmental
inspection services during the construction phase of the project at an upset
limit cost of $135,890.00 inclusive of 7% GST ($127,000.00
exclusive of GST) to ensure that the soil remediation procedures, which will be set out in
the Soil and Groundwater Management Plan, are carried out and that a final
record of site conditions is filed with the appropriate authorities.
Design Changes and Additional Work
For a number of months, staff has been experiencing difficulties with the design
consultant’s performance on this project to the extent that, in order to meet
the scheduled completion, the project had to be tendered while a number of
potentially significant issues remained unresolved. A technical audit of the
project by a third party consulting firm was commissioned by staff to determine
the extent of these outstanding issues which relate primarily to the following
items,
Staff is continuing to work with the design consultant, the
technical audit consultant and the approval agencies to resolve these
outstanding issues. Any revisions to the project designs or specifications
required as a result of resolving these outstanding issues will be incorporated
into the contract before the documents are executed.
FINANCIAL CONSIDERATIONS:
Staff recommends that tender for the construction of the Rodick
Road/Highway 407 overpass project be awarded to the lowest bidder, Graham
Brothers Construction Ltd. in the amount of
$ 8,767,367.32 inclusive of
7% GST. ($8,193,801.23 exclusive of GST). The total cost of
constructing this phase of the project excluding the property acquisition costs
is as follows:
|
Item |
Cost incl. 7% GST |
Cost excl. GST |
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Construction Cost |
$8,767,367.32 |
$8,193,801.23 |
|
Soil Remediation Work |
$428,000.00 |
$400,000.00 |
|
Construction Inspection
& Contract Administration fee |
$331,325.50 |
$309,650.00 |
|
Geotechnical Inspections |
$85,600.00 |
$80,000.00 |
|
Site Specific Risk
Assessment & Soil & Groundwater Management Plan preparation |
$99,510.00 |
$93,000.00 |
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Environmental Inspections |
$135,890.00 |
$127,000.00 |
|
407 ETR Charges |
$21,400.00 |
$20,000.00 |
|
Engineering Department
Project Management Fee @ 2% |
$208,000.00 |
$208,000.00 |
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Total Project Cost |
$10,076,092.82 |
$9,431,451.23 |
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Recoveries from |
$3,317,000.00 |
$3,100,000.00 |
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|
$6,759,092.82 |
$6,331451.23 |
The Town’s portion of the project
costs will be funded from Town Wide Hard Development Charges with recoveries
from the Region of York for modifications to the project to protect the option
to expand the overpass structure in the future to accommodate rapid transit and
for one third of the cost of constructing the overpass in accordance with
current policies regarding Regional contributions to area municipalities for
the cost of constructing new crossings over 400 series highways. The Region has included $3.3 million in their
2004 Capital Budget for this project.
The Town’s portion of the project costs is
funded in the approved Capital Budget in the following amounts:
|
Project # |
Account # |
Budget Amount |
Balance Remaining |
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3752 - Environmental Assessment & Properties |
83-5350-3752-005 |
$1,221,100 |
$592,464 |
|
4731 – Construction Overpass |
83-5350-4731-005 |
$6,300,000 |
$6,295,182 |
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83-5399-5335-005 |
$154,000 |
$154,000 |
|
6119 – Construction Overpass |
83-5350-6119-005 |
$3,594,200 |
$3,594,200 |
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83-5350-6120-005 |
$1,282,600 |
$1,282,600 |
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Totals |
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$12,551,900 |
$11,918,446 |
As noted above the tender price is
less than funds approved for this project.
Upon completion of the project and resolution of property cost surplus
funds will be returned to its original funding source.
CONSTRUCTION SCHEDULE
The current schedule for the
project, to be finalized with the contractor, is to have this contract
completed and the road open to traffic by the summer of 2005 so that
OPERATING AND MAINTENANCE ISSUES
While the capital costs of
constructing the
BUSINESS UNITS CONSULTED AND AFFECTED:
The Finance Department and Legal Department
have reviewed this report and their comments have been incorporated.
ATTACHMENTS:
Attachment A – Location Plan
Attachment B – Technical Auditor’s Review
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Alan Brown, C.E.T. Director of Engineering |
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Jim Baird, M.C.I.P., R.P.P. Commissioner of Development Services |
Q:\Development\Engineering\REPORTS\2004\May\Tender
Award Enterprise Drive.doc
