COMMUNITY AND FIRE SERVICES COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Stan Bertoia, General Manager, Construction and Utilities
	PREPARED BY:	Stan Lau, Senior Project Manager
	DATE OF MEETING:	2004-October-04
	SUBJECT:	Steeles Avenue Watermain Replacement – Victoria Park Avenue to Esna Park Drive

RECOMMENDATION:

That the report entitled “Steeles Avenue Watermain Replacement – Victoria Park Avenue to Esna Park Drive” be received;

That the construction cost for Contract 193-T-03 awarded to Drainstar Contracting Ltd. for the “Steeles Avenue Watermain Replacement – Victoria Park Avenue to Esna Park Drive” be increased from $424,299.00 (excluding 7% GST) to $488,000.00 (excluding 7% GST);

And that the additional amount of $63,701.00 be added to capital account 053-6150-4890-005 funded from the Waterworks Reserve, account 86-2700-112.

PURPOSE:

The purpose of this report is to request Council’s approval of additional funding for the Steeles Avenue Watermain Replacement project in accordance with the requirement of Expenditure Control Procedure.

BACKGROUND:

• The proposed watermain replacement is on the north side of Steeles Ave. from Victoria Park Avenue to Esna Park Drive.

• The work was tendered in August 2001 for installation of the watermain by directional drilling method along the Steeles Ave. R.O.W. The tender was not awarded because the low bidder was disqualified for not meeting the specification requirement and the only other bid was much higher than the allocated budget.

• The work was re-tendered again in September 2002 for installation of the watermain by directional drilling method in the IBM easement. The tender was not awarded due to the high bids received ($622,000 and $650,000) which exceeded the budget.
• In order to reduce the construction cost, the Town in 2003 contacted IBM and obtained their concurrence to install a section of watermain within the IBM property by open cut method subject to an easement agreement. On this basis, the work was tendered in September 2003 and was awarded to Drainstar Contracting Ltd. in November 2003 for $424,299 excluding 7% GST.

• It was anticipated that the Town would obtain an easement from IBM for the watermain. Unfortunately we were not able to secure the easement for this project as the property is no longer owned by IBM and the property owners have not cooperated.

• As a result of not obtaining the easement and in order to proceed with the project and a awarded tender, Drainstar was requested to provide a cost estimate based on relocating this section of watermain onto Steeles Avenue between the existing curb and sidewalk by open cut method. The contractor initially requested an additional cost of $70,701 for this work, staff was able to negotiate with the contractor and reduced the price increase to $63,701 excluding 7% GST

OPTIONS/DISCUSSION:

The negotiated additional cost of $63,701 is partly for compensation for the increased material and labour costs due to delay of construction and to cover the additional costs of repair/replacement of the existing sidewalk and concrete curb due to the relocated location for the watermain.

FINANCIAL CONSIDERATIONS:

Since the additional cost is more than 10% and over $50,000, Council’s approval is required in accordance with the Expenditure Control Procedure.

The additional amount of $63,701.00 be added to capital account 053-6150-4890-005 funded from the Waterworks Reserve, account 86-2700-112.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal Department and Finance Department have been involved in the discussion, provided input and have reviewed this report.

___________________________________

Stan Bertoia, P. Eng.

General Manager, Construction & Utilities

Peter Loukes, P. Eng. Director of Operations and Asset Management

Jim Sales Commissioner of Community Services and Fire

Q:\Commission Share\Operations and Asset Management\Reports\2004\C & U\Capital Works R.O.W\Steeles Ave.w/m Replacement.doc