UPDATED June 16, 2008
 
 


Report to: Development Services Committee                                  Report Date: June 17, 2008

 

SUBJECT:                          Award of Tender #068-T-08

                                            Woodbine Bypass Construction – Phase 1

PREPARED BY:               Allan Arbuckle, Manager, Infrastructure and Capital Works, ext. 3120

                                            Tom Kliem, Senior Capital Engineer, ext. 2860

RECOMMENDATION:

THAT the report entitled “Award of Tender # 068-T-08 Woodbine Avenue Bypass Construction – Phase 1” be received;

 

AND THAT the tender be awarded to the lowest price qualified bidder, TACC Construction Ltd in the total amount of $11,033,279.68 exclusive of GST subject to the receipt of  funding as described in this report;

 

AND THAT a contingency amount of $950,000 exclusive of GST be established to cover any additional construction costs and that the Director of Engineering be authorized to approve expenditure of this contingency amount up to the specified limit with monthly reporting to the Town Treasurer;

 

AND THAT the award of the contract for construction inspection and contract administration services to Earth Tech Canada in the amount of $201,000 as described in the April 11, 2006 staff report be confirmed;

 

AND THAT the value of the  contract for construction inspection and contract administration services to Earth Tech Canada be increased by $90,500 to a total of $291,500 exclusive of GST to cover the increased scope of services and updated construction schedule as described in this report;

 

AND THAT a contingency amount of $32,700 exclusive of GST be established to cover any additional construction inspection and contract administration costs and that the Director of Engineering be authorized to approve expenditure of this contingency amount up to the specified limit;

 

AND THAT staff be authorized to retain Earth Tech Canada to re-design the Elgin Mills/Woodbine Bypass intersection to accommodate the 404 North Secondary Plan as required by the Ministry of Transportation for an upset limit not to exceed $ 50,000 exceeding GST to be funded by Cathedral Developers.

 

AND THAT a contingency amount of $250,000.00 exclusive of GST be established to cover the additional costs of constructing the Elgin Mills/Woodbine Bypass intersection to accommodate the 404 North Secondary Plan and that the Director of Engineering be authorized to approve expenditure of this contingency amount up to the specified limit;

 

AND THAT a contingency amount of $935,000 exclusive of GST to be funded by Cathedral Developers be established to cover any Contractors claims which may result from delays in obtaining the outstanding permits and approvals from the TRCA and/or Ministry of Transportation and that the CAO be authorized to approve expenditure of this contingency amount up to the specified limit.

 

AND THAT staff be authorized to retain the geotechnical consulting firm of Geo-Canada Ltd. as a preferred supplier to provide geotechnical and materials testing services during construction for an upset limit not to exceed $154,000 exclusive of GST;

 

AND THAT a contingency amount of $20,000 exclusive of GST be established to cover any additional geotechnical and materials testing services during construction and that the Director of Engineering be authorized to approve expenditure of this contingency amount up to the specified limit;

 

AND THAT staff be authorized to issue a Purchase Order to Geo-Canada Ltd in the amount of $80,000 to cover the cost of geotechnical and materials testing services provided during the Woodbine Bypass trunk sanitary sewer project as described in the June 19th 2007 report.

 

AND THAT staff be authorized to retain a qualified independent environmental consulting firm in accordance with the Town’s Purchasing Bylaw to provide on-site environmental monitoring to ensure compliance with TRCA permit requirements for an upset limit not to exceed $65,000 exclusive of GST.

 

AND THAT staff be authorized to issue a Purchase Order to Powerstream Ltd in the amount of $50,000 to cover the cost of connecting the street lighting and traffic signal systems to the existing electrical distribution network.

 

AND THAT the sidewalk and illumination portions of the tender ($1,759,285.39) be funded from the Engineering Department’s Capital Accounts #8339 and #8400.

 

AND THAT a contingency amount of $ 338,230.50 exclusive of GST be established to cover possible hydro power supply work and that the Director of Engineering be authorized to approve expenditure of this contingency amount up to the specified limit.

 

AND THAT staff be authorized and directed to do all things necessary, including the execution of documents, to give effect to the above.

               

AND THAT upon payment of all the invoices, any remaining funds be applied to the construction of outstanding works in Phase 1 and 2a of the Woodbine Avenue Bypass project.

 

AND THAT the Ministry of Transportation and the Region of York be advised that the Town of Markham does not support a double left turn for eastbound Elgin Mills Road to northbound Woodbine By-pass.

 

AND THAT staff proceed with the Class Environmental Study for the Hwy 404 northbound exit ramp extension to Lord Melbourne Street as the preferred route for truck access into the Cathedral and 404 North business lands.

 

EXECUTIVE SUMMARY:

The Woodbine Avenue Bypass will provide a critical transportation link to support development of the Cathedral Secondary Plan lands and the 404 North Secondary Plan (OPA 149).  An Environmental Assessment for the project was completed in 2003 by the Region of York with construction of the Bypass scheduled to be undertaken by the Region in 2012. In November 2007, a Tri Party Agreement was executed by the Town, the Region of York and the Cathedral developers in which the Town assumed responsibility for the design, approvals and project management of the Woodbine Avenue Bypass on behalf of the Region of York in order to advance the completion date of the roadway.   The Cathedral Developers are responsible construction costs with subsequent Regional Development Charge credits.

 

The construction of the Bypass is currently scheduled to be completed in two phases.  The contract for the construction of the first phase, extending from just north of Major Mackenzie Drive to Elgin Mills Road, has been tendered and staff is recommending the award of contract to the lowest priced qualified bidder, TACC Construction. Construction of this phase is scheduled to commence this summer and to be completed by the fall of 2009. The contract for the second phase of the work which will extend the Bypass north from Elgin Mills Road including the two connections to the existing Woodbine Avenue is scheduled to be tendered early in 2009 and to be complete with the Bypass open to traffic by late 2009.

 

 All property required for the construction of the Bypass will be secured by the Region of York either through the development process of through the terms of the Tri-Party Agreements with the Cathedral and 404 North Developers groups.

 

FINANCIAL CONSIDERATIONS:

The total cost exclusive of GST of constructing Phase 1 of the Woodbine Bypass is as follows: 

 

Design Fees

$430,420.00

Construction Cost

$11,033,279.68

Construction Contingencies

$950,000.00

Contract Admin. and Site Inspections

$291,500.00

Contract Admin. & Site Insp. Contingencies

$32,700.00

Elgin Mills intersection re-design fee

$50,000.00

Elgin Mills intersection construction contingency

$250,000.00

Geotechnical testing services

$154,000.00

Geotechnical/hydrogeological  testing contingencies

$20,000.00

Delay Claim Contingency

$935,000.00

Powerstream connection charges

$50,000.00

Independent environmental consultant

$65,000.00

Engineering Department Project Management Fee @ 4.0%

$536,282.21

Total

$14,798,181.89

. 

Cost sharing of the construction of Phase 1 of the Woodbine Bypass will be calculated in accordance with the terms of the tri-party agreement between the Town, the Region of York and the Cathedral developers.

 

The draft summary of funding from each party is as follows.  Staff met with the Region of York and Cathedral Developers and are finalizing these contributions.  An updated funding summary (Attachment ‘B’) will be tabled at the June 17, 2008 meeting.

 

Item

Funding excluding GST

Developer Funded

$2,261,889.00

Developer Funding (Bypass construction)

$10,777,007.50

Town of Markham funding (sidewalks & illumination)

$1,759285.39

Total Estimated Project Funding

$14,798,181.89

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

The Region and Town currently hold $8,843,024 in security from the Cathedral developers for construction of Phase 1 and 2a of the by-pass.  In accordance with paragraph 5(c) of the November 1, 2007 Tri-Party Agreement the Cathedral developers were formally requested to provide additional funding in the amount of $4,899,545.82 by July 4, 2008.

In the absence of the Region of York committing to fund $854,844.51 for the Carlton Creek Culvert replacement the Cathedral Group has been requested to do such.

 

PURPOSE:

The purpose of this report is to award the contract for the construction of Phase 1 of the Woodbine Avenue Bypass and to retain consulting engineering firms to provide construction inspection, contract administration, environmental monitoring, geotechnical inspection and testing services for the project.

 

BACKGROUND:

The Region’s Transportation Master Plan of June 2002 identified the Woodbine Avenue Bypass as a need within the ten year time horizon.  The Environmental Assessment for the Woodbine Avenue Bypass was completed by the Region of York in June 2003 and was subsequently approved by the Ministry of the Environment on May 12 2004.   In November 2007, a Tri Party Agreement was executed by the Town, the Region of York and the Cathedral developers in which the Town assumed responsibility for the design, approvals and construction of Phase 1 and 2(a) of the Woodbine Avenue Bypass on behalf of the Region of York in order to advance the completion date of the roadway from 2012 to 2009 to facilitate the development of the Cathedral lands.  The Cathedral developers are responsible for funding this project with subsequent Regional Development Charge Credits.  The Region is funding the Calvert Creek culvert replacement and the Town is funding sidewalk/illumination on the by-pass from development charges.

 

OPTIONS/ DISCUSSION:

Prequalification

Due to the scope of the project, contractors were pre-qualified to ensure that all bidders would have the necessary qualifications, experience and resources to complete the works in accordance with Town of Markham and Region of York requirements within the specified timelines.  The prequalification was issued in accordance with the Purchasing By-law 2004-341.

PREQUALIFICATION INFORMATION

Advertised, place and date

February 25 2008

Prequalification closed on

March 14 2008

Number of contractors picking up bid documents

15

Number of contractors responding to bid

9

Number of contractors prequalified

7

 

Construction Tender

The construction tender # 068-T-08 was issued in accordance with the Purchasing By-law 2004-341.  Engineering and Purchasing staff 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

Tender release

April 29 2008

Bids closed on

May 16,  2008

Number of contractors picking up bid documents

7

Number of contractors responding with valid bid

5

 

Detailed pricing information as submitted is as follows exclusive of GST;

 

 

Contractors

Total Price

1

TACC Construction Ltd

$11,033,279.68

2

Miller Paving Ltd

$11,117,881.42

3

Miwel Construction

$11,161,629.13

4

Fermar Paving Ltd.

$11,917,864.70

5

Grascan Construction Ltd

$12,700,000.00

 

Contract Administration and Site Inspection Services

Earth Tech Limited was retained by the Town in April 2006 to provide design services for the entire Bypass. Council also authorized staff to retain Earth Tech to provide construction inspection and contract administration services for the project subject to the satisfactory completion of the detailed design phase of the project. Staff are satisfied with Earth Tech’s performance to-date on the project and are recommending that the retention of Earth Tech provide construction services be confirmed.

 

The Earth Tech proposal for construction services was based on a proposed construction schedule provided in the Request for Proposal in which the construction of phase 1 & 2 of the Bypass was to occur over a 33 week period from April to November 2007.  The current schedule involves construction over a 41 week period commencing in July 2008 and ending in July 2009. Staff is recommending that Earth Tech’s fee for contract administration and construction inspection be adjusted to reflect the extension of the construction period by 8 weeks and the change in the construction year from 2007 to 2008/2009. Staff is recommending that Earth Tech’s upset fee for construction inspection and contract administration services be increased by $69,500 to cover these revisions to the construction schedule.

 

The scope of the Woodbine Bypass project has also been expanded to include the construction of a new culvert structure on Woodbine Avenue just north of Major Mackenzie Drive for the Region and the addition of the electrical distribution system installation. The construction inspection and contract administration services required for these additional construction works were not part of Earth Tech’s original scope of work. Staff is recommending that Earth Tech’s fee for construction inspection and contract administration services be increased by $21,000 to cover these additional works.

.

With these recommended adjustments, the total revised upset limit fee Earth Tech’s construction services will be $291,500.

 

Electrical Construction Services

The streetlighting and traffic signal systems along the Bypass must be connected to the existing electrical distribution system owned and operated by Powerstream. Staff has negotiated an agreement with Powerstream to complete the required connections for an upset fee amount of $50,000.00 inclusive of all disbursements exclusive of GST and staff are recommending that a Purchase Order be issued to Powerstream for this amount.

 

Geotechnical and Hydro-geological Inspection Services

For quality control purposes, the Engineering Department must also retain a materials testing firm to provide geotechnical and materials testing during construction.  The consulting firm of GeoCanada Limited was retained by the Town to provide geotechnical and hydrogeological consulting services during the design phase of the project and has provided excellent service and quality of work while adhering to the timeframes required by the project schedule.  Given GeoCanada’s familiarity with this project, experience with similar projects, staff qualifications and previous performance, staff are recommending that GeoCanada Limited be retained to provide geotechnical and hydro-geological inspection services for the project for an upset fee of $154,000 inclusive of all disbursements. This fee represents approximately 1.4 % of the contract price which is within the fee range which staff would expect for a project of this magnitude and complexity.

 

Environmental Inspections

The construction of Phase 1 of the Woodbine Bypass will involve two crossings of Carlton Creek. These crossings require approvals from the Ministry of Natural Resources (Work Permit under the Lakes and Rivers Improvement Act) and the TRCA (permit under the Conservation Authorities Act).Each of these environmental approvals is subject to a number of terms and conditions relating to the implementation, maintenance and monitoring of environmental protection measures during the course of the construction. As the permits and approvals are issued to the Town of Markham, the Town is responsible to ensure that these terms and conditions are fully complied with and adequately documented. Staff is proposing that an independent environmental consultant be retained to monitor and provide compliance reports to the various agencies throughout the construction of the concrete culvert structures and related channel works. Staff will invite qualified consultants to submit proposals to perform the required tasks in accordance with Purchasing Bylaw requirements.  The cost of these services is estimated as $65,000.

 

Outstanding Approvals

A number of permits and approvals are required for this project. The following table provides a summary of these approvals and permits and the current status of each:

 

Agency

Approvals required

Current status

Toronto & Region Conservation Authority

2 watercourse crossings of Carlton Creek

·        North crossing application submitted November 2007, Permit pending approval of Developers submissions.

·        South crossing application submitted January 2008,both applications under review by TRCA and approval expected  this month

Ministry of Transportation

Elgin Mills Road intersection design

·        Original intersection design approved

·        redesign pending approval of developers traffic studies

 

Ministry of the Environment

Roadway storm drainage system 

Application submitted, approval expected this month

Region of York

Roadway design and construction specifications

90% design approval received.

Final design approval expected this month

 

TRCA Permits

In conjunction with the construction of the Carlton Creek crossing at Betty Roman Drive, the TRCA must also review and approve the creek relocation and channel modification designs submitted by the Cathedral Town developers. The developer is responsible for securing the approvals of this creek relocation. The TRCA has indicated that the developer did not apply for the creek relocation Permit until            March 2008 and that the Permit to construct the creek crossing will not be issued to the Town until the developer’s creek relocation Permit is approved. While the Town’s consultants completed and submitted all design documentation necessary to secure the approval of the work included in the Woodbine Bypass contract in a timely manner, delays by the Cathedral Town developer in submitting the creek relocation design information may delay the construction of the Bypass resulting in a delay claim. 

 

MTO Corridor Control Approval

The proposed intersection of the Woodbine Bypass and Elgin Mills Road is located within the Highway 404 corridor controlled by the Ministry of Transportation and as such, is subject to the Ministry’s corridor control process and approvals. Staff has prepared and submitted all necessary documentation to support the intersection design based on the traffic conditions set out in the approved Environmental Assessment for the Woodbine Bypass and the Ministry has agreed in principle with these designs. Recent submissions to the MTO by the developers of the 404 North Secondary Plan have indicated that additional road infrastructure in the area such as the Highway 404 mid-block crossing, the Highway 404 off ramp extension and the 19th Avenue interchange will be required to support the development of these lands and that the current intersection design may not be adequate to accommodate traffic generated from the Honda site and the short term development of the employment lands. Engineering staff are continuing discussions with the Region of York and the MTO to resolve the extent of modifications to the existing intersection design which may be required. Since the developers submissions to the MTO occurred after the design of the intersection was complete and the project tendered, the current contract price is based on the approved intersection design. Staff is therefore recommending that Earth Tech be retained to complete any re-design of the intersection which may be required by the MTO or Region for an upset fee of $50,000 and that a contingency amount of $250,000 be authorized to cover any additional construction costs resulting from a re-design of the intersection.

 

Region of York Approvals

As the Woodbine Bypass will be a regional road, this road construction project is being completed by the Town of Markham for the Region of York. The Town of Markham executed a Tri-party agreement with the Region of York and the Cathedral Developers Group that outlines the terms and conditions relating to the construction, approvals and financing of the Woodbine Bypass.

 

In order to meet the scheduled delivery date for the Bypass of late 2009, the contract for the first phase of the work was issued at the 90% approvals stage in the Region’s approval process. Staff is continuing to work with York Region to secure the final approvals and it is anticipated that this approval will be in place before construction commences.

 

Potential Delay Claims

The construction of the first phase of the Bypass is scheduled to be completed by the summer of 2009. In order to meet this schedule, the tender must be awarded in June and construction must proceed during the summer months. As described in previous sections of this report, the required approvals and associated permits from the TRCA and MTO have not yet been received and the timing of these approvals is not controlled by the Town but rather by the Cathedral Town and 404 North developers.  Given the aggressive construction schedule, any delay in obtaining these approvals beyond the end of June may delay the contractor from performing the work as specified in the contract documents and therefore may result in claim. Staff will continue to work with the developers and the approving agencies to expedite these approvals and with the contractor to develop a detailed work plan which minimizes the risk of delays. Staff is recommending however that a contingency amount of $1.2 million be established to deal with any delay claims which may arise and developer funding be secured by the Town as a condition of tender award.

 

In addition an allowance is being requested of the developers to correct any deficiencies related to works (servicing, grading, etc.) in the Bypass right of way constructed the developers and construct additional developer works under this contract ($774,541).

 

Project Schedule

The entire Woodbine Bypass from Major Mackenzie Drive to south of 19th Avenue is scheduled to be completed and open to traffic by the end of 2009. To meet this overall completion date, the initial phase of the project must be completed by the summer of 2009. Construction of a critical component of the phase one project, the two creek crossing structures, is subject to a number of conditions imposed by the Toronto and Region Conservation Authority (TRCA) and the Federal Department of Fisheries and Oceans (DFO). These agencies require the work to be carried out in a particular sequence and within the period from July 1st to September 15th. It is estimated that the Contractor will require approximately 6 to 8 weeks prior to July 1st to complete the preliminary site works and grading necessary to provide access to the pond site. In order to meet these scheduling restrictions, construction of this project is planned to commence in late June.

 

Project Transfer to the Region of York

The Woodbine Avenue Bypass is a Region of York arterial road.  Upon completion, the Bypass right of way from Major Mackenzie Drive to south of 19th Avenue is to be conveyed to the Region of York as a condition of the Tri-party agreements between the Town of Markham, the Region of York and the two adjacent developers groups (Cathedral Developers Group and the 404 North Developers Group).   The Tri-party agreements also outline in detail the various warranty and guarantee periods relating to the transfer of the road works to the Region of York upon completion.

 

 

FINANCIAL TEMPLATE: (external link)

An updated funding summary is being finalized at the time of writing of this report and will be tabled at the June 17, 2008 Development Services Committee Meeting.

 

 

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 Engineering                                     Commissioner, Development Services

 

 

 

 

 

ATTACHMENTS:

Attachment A – Location Plan

Attachment B – Financial Summary (to be tabled)

 

 

Q:\Development\Engineering\REPORTS\2008\June\068-T-08 AWARD REPORT.doc