Report to: Development Services Committee Report Date:
SUBJECT: Award of Tender #050-T-07
Woodbine North Trunk Sanitary Sewer
PREPARED BY: Allan Arbuckle, Manager, Infrastructure and Capital Works, ext. 3120
RECOMMENDATION:
THAT the
report entitled “Award of Tender # 050-T-07 Woodbine North Trunk
Sanitary Sewer – Phase 1,” be received;
AND THAT
the tender be awarded to the lowest price qualified bidder, Pachino
Construction Co. Ltd in the total amount of $4,460,642.00 exclusive of GST, subject to the completion of all
conditions as outlined in this report to the satisfaction of the CAO, Town
Solicitor, Town Treasurer and Director of
AND THAT
a contingency amount of $535,000.00 exclusive of GST be established to cover
any additional construction costs and that the Director of
AND THAT
a contingency amount of $25,000 exclusive of
GST be established to cover any additional construction inspection and contract
administration costs and that the Director of
AND THAT
staff be authorized to retain a qualified geotechnical consulting firm in
accordance with the Town’s purchasing bylaw to provide geotechnical and
materials testing services during construction for an upset limit not to exceed
$ 65,000 exclusive of GST;
AND THAT
staff be authorized to retain a qualified hydrogeological consulting firm in
accordance with the Town’s purchasing bylaw to provide dewatering monitoring
services during construction for an upset limit not to exceed $85,000 exclusive of GST;
AND
THAT a contingency amount of $50,000
exclusive of GST be established to cover the Town’s estimated share of the joint well monitoring program with the
Cathedral Group and that the Director of
AND THAT the
Capital Budget, account 83-5350-7346-005, be amended to $5,838,835 to be funded
based on schedule in the financial consideration section of this report;
AND
THAT the amount of Town financing to the 404 North Employment
Lands Developers for their share of the design and construction of the Hwy 404
Sanitary Sewer be increased from $1,922,605 (as approved by Council on
AND THAT upon payment of all the invoices,
any remaining funds be returned to the original funding source;
AND THAT staff be
authorized and directed to do all things necessary, including the execution of
documents, to give effect to the above.
FINANCIAL CONSIDERATIONS:
The total cost exclusive of GST of constructing
this phase of the project excluding the property acquisition costs is as
follows:
|
Design Fee |
$240,250.00 |
|
Design Contingencies |
$40,000.00 |
|
Construction Tender |
$4,460,642.00 |
|
Construction Contingencies |
$535,000.00 |
|
Contract Admin. and Site
Inspections |
$124,190.00 |
|
Contract Admin. & Site Insp.
Contingencies |
$25,000.00 |
|
Dewatering consultant |
$85,000.00 |
|
Geotechnical consultant |
$65,000.00 |
|
Well Monitoring contingency |
$50,000.00 |
|
|
$213,753.00 |
|
Total |
$5,838,835.00 |
Funding for the construction of Phase 1 of the Woodbine North Trunk sanitary Sewer project (Betty Roman to north of Elgin Mills) at the date of preparation of this report is being finalized with the benefiting Cathedral developers and the Hwy 404 North Developers and the Region of York. The draft cost sharing under discussion and to be finalized is as follows:
|
Item |
Funding excluding GST |
|
Hwy 404 North Employment lands financing
(currently financed by the Town through DC reserve) |
$2,278,509.00 |
|
Cathedral Developers funding (local services) |
$2,310,046.00 |
|
Cathedral Developers financing (trunk
sanitary sewer) |
$844,861.00 |
|
Region of |
$395,039.00 |
As
development in the Hwy 404 North (404 lands) area is not anticipated to proceed
until 2008/2009 and the ASDC Bylaw for the Highway 404 North Secondary Plan
Area has not been passed, Council at its April 11, 2006 meeting, authorized the
Town to upfront the Hwy 404 North Employment Lands share of the design and
construction of the Hwy 404 Sanitary Sewer subject to repayment plus interest.
The 2006 Capital Budget (083-5350-7346-005) includes funding for the design and construction of the 404 North Employment Lands trunk sewer in the total of $2,633,710. Additional developers services and Regional storm sewer works have been included in the tender which will require the budget to be increased by $3,205,125.00 ($5,838,835.00 - $2,633,710.00).
The financing of the design and construction of this sewer will be shared by the two parties who will benefit from the sewer construction, the 404 North Employment landowners and two Cathedral Developers. The proportional share attributable to each party is still under discussion at time of writing this report. Staff have engaged both parties to finalize the cost sharing which staff will provide a verbal update at the Committee meeting.
In addition the Cathedral Group is to finance the Region’s share of the Woodbine storm sewer being installed under this contract as per the Tri-party agreement.
Typically,
the 404 North Lands land owners would be required to front-end finance their
portion of the sewer construction costs, however, the 404 Employment
area developers have not formed a developers group and are not in a position at
the present time to provide financing for the sewer construction. Staff will
continue to hold discussions with the land owners regarding the repayment of
the sanitary sewer, funding of the Woodbine Avenue By-pass (Phase 2b and 3) and
other municipal infrastructure required to accommodate development in the
area. Given the need to coordinate the
construction of the sewer with the Woodbine By-pass construction, Council
authorized the
Town to provide up-front financing for the 404 Employment land’s portion of the
sewer cost. The Town’s costs plus
interest will be recovered from the future Area Specific Development Charge for
the 404 North Employment Lands (Area 49).
1. Purpose 2.
Background 3. Discussion 4. Financial
5. Others (Environmental,
Accessibility, Engage 21st, Affected Units) 6. Attachment(s)
PURPOSE:
The purpose of
this report is to award the contract for the construction of Phase 1 of the
Woodbine North Trunk Sanitary Sewer project and to retain specialized
consulting engineering firms to provide dewatering monitoring, geotechnical inspection and testing services for the
project.
BACKGROUND:
The Hwy 404 North Planning District (404 Lands) is located immediately north of the Cathedral Community. The Town is undertaking several initiatives to increase the supply of land to accommodate growth in office and industrial employment. Municipal sanitary servicing for the 404 North Employment Lands will be provided by the extensions of the Cathedral Community sanitary infrastructure system.
In April of 2006, the Town
retained the consulting firm of Earth Tech Canada Inc. to prepare the detailed design for the Woodbine
Bypass and the 404 North Trunk Sanitary Sewer.
At the request of the Cathedral area
developers, a number of local and Regional storm sewers, watermains and
sanitary sewers required to service developments were incorporated into the
Town’s trunk sewer construction project.
OPTIONS/ DISCUSSION:
Construction Tender
The construction tender # 050-T-07 was issued in accordance with the
Purchasing By-law 2004-341. Engineering,
Purchasing and the consultant 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:
BID INFORMATION
|
Advertised, place and date |
ETN |
|
Bids closed on |
|
|
Number of pre-qualified
contractors |
7 |
|
Number of contractors responding
to bid |
6 |
Detailed pricing information as submitted is as follows exclusive of GST;
|
|
Contractors |
Total Price |
|
1 |
Pachino Construction Co. Ltd |
$4,460,642.00 |
|
2 |
Clearway
Construction Inc. |
$6,971,108.60 |
|
3 |
Memme Excavation
Co. Ltd |
$7,046,367.00 |
|
4 |
Miwel
Construction Ltd. |
$11,635,414.26 |
|
5 |
Con Drain Company
(1983) |
$14,334,155.26 |
|
6 |
TACC Construction
Ltd. |
$15,051,614.55 |
It is anticipated that significant dewatering will be
required to safely construct some sections of the sewer. While the Town has
prepared a number of geotechnical and hydrogeological investigations to provide
contractors with information on which to base their bids and has applied for
and received approval from the Ministry of the Environment for this dewatering,
each bidder is responsible for making their own determination of the extent of
dewatering which will actually be required to accommodate their proposed method
of construction, to determine the most appropriate method of achieving this
level of dewatering and of supporting the excavations during dewatering and
installation of the sewer. The bid document includes pricing for a number of
alternative methods of dewatering and trench stabilization, some of which are
included in the base price of the sewer installation and some of which are
included as provisional sums which will only be utilized if significant
dewatering and stabilization difficulties are encountered during construction.
The large difference in the value of the tenders submitted by the bidders
reflects their individual evaluation of the extent of dewatering and trench
stabilization which will be required and the willingness of each to assume
risk.
The low bidder, Pachino Construction, has
successfully completed a number of watermain projects for York Region and is
currently constructing the Town’s
Conditions of Tender Award
Staff are recommending the award of the tender to
the lowest priced qualified bidder,
subject to the following
conditions:
- Finalization
of cost sharing agreement between the Cathedral developers, Hwy 404
developers and the Region of York;
- Receipt of a letter of credit from the Cathedral
developers’ for their proportionate share of the sanitary trunk sewer($844,861.00 -
to be finalized);
- Receipt of a Letter of Credit from the Cathedral
Group for the Region’s storm sewers on the by-pass as part of the
Tri-party Agreement ($395,039.00 - to be finalized);
- Receipt of a letter of credit from the Cathedral
developers for the total costs of their local services to be installed
under this contract ($2,310,046.00);
- Written confirmation that the property required for
the Bypass construction has been dedicated to the Region of York or
alternatively the developers provide Permission to Enter and Construct in
a form satisfactory to the Town solicitor;
- Written confirmation that the design of all local
services to be installed have been approved by all applicable agencies or
that the developers provides written confirmation satisfactory to the Town
Solicitor that they accept all responsibility for all liabilities and
costs for these local services being constructed on their behalf.
Contract Administration and Site Inspection Services
The consulting firm of Earth Tech Canada Inc. was retained by the Town to
prepare the detailed designs, construction drawings, specifications and tender
documents for this project. As approved by Council at its
For
quality control purposes, the
Dewatering Inspection & Monitoring
The
construction of the trunk sewer will require dewatering for which a Permit to
Take Water (PTTW) has been issued by the Ministry of the Environment. To ensure
that the contractor complies with the conditions of this Permit, the
Furthermore,
staff and the Cathedral Developers Group have met with the residents of
Victoria Square to address the potential impacts of the dewatering from the
construction of services in the Cathedral community and there is currently a
joint developer/Markham monitoring and response program in place to ensure that
any dewatering impacts are identified and responded to in an expeditious
manner. In addition to the monitoring that will be carried out by the Town’s
consultants to comply with the conditions of the PTTW, staff are proposing that
a contingency amount of $50,000 be established to cover Markham’s share of any
additional monitoring or response measures that may be required as a result of
the Town’s sewer construction project.
Project Schedule
Construction of the trunk sewer is scheduled to start immediately after the award of the tender subject to the conditions of tender award being fulfilled. Construction is anticipated to be completed by mid- September of this year to accommodate building permits for the adjacent Cathedral Community developers.
BUSINESS UNITS CONSULTED AND AFFECTED:
The Finance and Legal Departments have reviewed this report and their comments have been incorporated.
RECOMMENDED BY:
________________________ ________________________
Alan Brown, C.E.T. Jim Baird, M.C.I.P., R.P.P.
Director of
ATTACHMENT:
Attachment A: Location Plan
Q:\Development\Engineering\REPORTS\2007\June\\050-T-07 AWARD REPORT