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TO: |
Mayor and Members of Council |
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FROM: |
Stan Bertoia, P. Eng., General
Manager, Construction and Utilities |
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PREPARED BY: |
Alan Wolfe, P.Eng., Project
Consultant |
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DATE OF MEETING: |
September 28, 2004 |
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SUBJECT: |
Award of Tender # 123-T-04 for
the construction of the Museum Reception Centre Building and Parking Lot |
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RECOMMENDATION:
THAT Tender # 123-T-04 for the construction of
the Museum Reception Centre Building and Parking Lot
be awarded to the lowest price and acceptable bidder Surrey Construction as
follows in the total amount of $1,089,502.83 inclusive of 7% GST ($1,018,226.94
exclusive of GST);
AND THAT a contingency of $ 53,500 inclusive of 7% GST ($50,000 exclusive of GST)
be established and that the General Manager,
Construction and Utilities, be authorized to approve cost overrun up to
the contingency amount;
AND THAT funding is provided from the approved
2003/2004 Museum Capital Budgets in the amount of $698,300 for this contract;
AND THAT Council pre-approve
$490,000 from the 2005 Recreation and Cultural Services Department Construction
Capital Budget to award this contract.
PURPOSE:
The purpose of this report is to obtain approval to award Tender #123-T-04 for the construction of the Museum Reception Centre Building and Parking Lot and to pre-approve funding from the 2005 Recreation and Cultural Services Department Capital Budget to award the contract.
BACKGROUND:
The tender was issued in accordance with the Purchasing By-Law 143-2000. Staff has reviewed the bid documents and is satisfied that all terms, conditions, bid prices and specifications comply with the Town’s requirements.
Advertised, place and date |
Electronic
Network (ETN) Daily
Commercial News |
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Bids
Closed on |
August 27, 2004
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Number
picking up bid documents |
13 |
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Number
responding to bid |
6
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Contractor |
Total Contract
Cost (including 7% GST) |
Total Contract
Cost (excluding GST) |
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Surrey
Construction |
$1,089,502.83 |
$1,018,226.94 |
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PTR
Construction |
$1,108,755.40 |
$1,036,220.00 |
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Rochon
Construction |
$1,111,730.00 |
$1,039,000.00 |
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CL
Construction |
$1,120,000.03 |
$1,046,729.00 |
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WS
Morgan Ltd |
$1,393,140.00 |
$1,302,000.00 |
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MRP
Builders Inc |
$1,451,990.00 |
$1,357,000.00 |
FINANCIAL
CONSIDERATIONS:
The costs discussed below are exclusive of GST.
1.1
The financing of the Museum Reception Centre
building and parking lot was phased over several budget years
The
Museum Reception Centre project consists of the construction of a building and
a parking lot. Recognizing the budget constraints of this
project, the financing of the project was phased over the 2003, 2004 and the
2005 Capital Budgets. A summary of the complete project funding estimate is
included as Appendix “A”.
The total amount approved in the 2003/2004
Capital Budgets for the building construction including the servicing, and
landscaping associated with the building was $828,300. The installation of the
services required an expenditure of $130,000.
Therefore, the amount available for this contract work is $698,300 in
the accounts indicated in Table 1.
Account Description |
Account Number |
Amount |
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Building Costs |
70-5350-6287-005 |
$582,500 |
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Utility Servicing ($184,000 - $130,000) |
73-5350-5021-005 |
$
54,300 |
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Landscaping |
73-5350-5023-005 |
$
61,500 |
Total Funds Available
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$698,300
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The asphalt parking lot construction including servicing and landscaping
of the parking lot was not funded in the 2004 Capital Budget. The cost estimate
for the parking lot is $280,000 and the landscaping is $ 90,000. This work also
required professional fees for design, construction administration, traffic
study, and storm water management report of $42,000. Lastly, the Museum Manager
identified the requirement for an additional $78,000 to provide for
furnishings, fixtures and equipment (FF&E) for the reception centre.
The total additional funding required to complete the Museum Reception
Centre project is summarized in Table 2.
Table 2
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Work Description |
Cost Estimate |
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Parking Lot |
$280,000 |
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Landscaping |
$
90,000 |
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Professional Fees |
$
42,000 |
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Additional FF& E |
$
78,000 |
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Total |
$490,000 |
1.2 The most cost effective and efficient approach to construct the project was to issue the tender for the construction of the complete project
Three options for tendering and constructing
the complete project were considered.
This option would have delayed the project for
one year, resulting in unacceptable delay and escalation cost of at least 5%.
Therefore, it was rejected.
This option would have increased the cost by
5-10%, resulted in coordination concerns, and delayed the completion of the
project until late in 2005. Therefore, it was rejected.
This option is the most cost-effective and
efficient approach. Therefore, it was decided to tender the project as described above.
The building and the associated hydro work
would be completed in the fall of 2004 and winter 2005. The landscaping and
parking lot would be complete in the spring/summer 2005. The work would also
proceed continuously and minimize effect on the Museum operations.
Although most of the expenditures for the
parking lot and landscaping will occur during 2005, in order to award the
contract, it is necessary to commit the funds now.
1.3 Funding to complete the Museum Reception
Centre project requires pre-approval of funding from the 2005 Budget.
The bid price for the total project is $1,018,226.94. In addition, a
contingency allowance of approximately $50,000 representing approximately 5% of
the value of the contract is required. Therefore, the total funding required is
approximately $1,068,226.90.
The funding available in the 2003/2004 approved
Capital Budget is $698,300. Therefore the additional funding required for the
project is $1,068,226.90 - $698,300.00
= $369,926.90.
It is also necessary to approve funding for the
required professional fees of $42,000 and the FF&E of $78,000.
The total funding requirement is $370,000 +
$42,000 + $78,000 = $490,000
The possibility of utilizing funding remaining
from completed projects to provide the required funding was explored. However,
funds of this amount are not available.
Therefore , it is recommended to pre-approve
the funding from the 2005 Recreation and Cultural Services Department Construction Capital Budget to award
this contract.
It should be noted that the infrastructure
(sewer, water, hydro and parking) constructed in conjunction with the Museum
Reception Centre building will also serve the Museum’s future building program
and is consistent with the recently completed Museum Master Plan.
This project has also received generous support
from the development industry building in the area including a $250,000
contribution from Ballantry Homes as well as in kind contributions from Con
Drain Construction and Shaeffers Consulting Engineers valued at approximately
$80,000 and $10,000, respectively.
Receipt of the signed award recommendation report will initiate the
execution of a purchase order contract. The contractor will also enter into a
CCDC 2 Stipulated Price Contract with the Town.
BUSINESS UNITS AFFECTED:
The Recreation and Culture Services Department
(Museum) and the Purchasing Department have been consulted in the preparation
of this report.
ATTACHMENTS
Appendix “A” – Project Funding Summary
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Stan Bertoia, P.
Eng., General Manager, Construction and Utilities |
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Barb Roth, Director of Recreation and
Cultural Services |
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Peter Loukes, P. Eng., Director of Operations
and Asset Management |
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Jim Sales, Commissioner of Community and Fire
Services |
Q:\Commission Share\Operations and Asset
Management\Reports\2004\C & U\Capital Works Facilities\Markham Musuem
Reception Centre Award Report.docC:
