Report to: Development Services Committee Report Date:
SUBJECT: Award
of Tender #029-T-09
Woodbine
By-pass Construction –
PREPARED BY: Alick
Wong, Manager, Infrastructure and Capital Works, ext. 3120
Gabor Szakter, Senior
Capital Engineer, ext. 4040
Robert Slater, Senior
Construction Buyer, ext 3189
RECOMMENDATION:
1.
That the report entitled “Award of Tender #
029-T-09 Woodbine Avenue By-pass Construction – Phases 2A, 2B, and 3A” be
received;
2.
And that the tender be awarded to Con-drain Company (1983) Ltd., in the
total amount of $2,678,869.08, inclusive of 1.5% discount for payment within 15
business days and exclusive of GST, subject to the receipt of funding as
described in this report.
3.
And that the tender award be subject to execution
of the Tri-Party Agreement between the Region of York, Town of Markham and the
404 North Developers or alternative legal arrangements to the satisfaction of
the Chief Administrative Officer and Town Solicitor;
4.
And that a contingency amount of $267,886.91,
exclusive of GST be established to cover any additional construction costs and
that the Director of
5.
And that staff be authorized to issue a Purchase
Order to Powerstream Ltd. up to a maximum amount of $80,000 to cover the cost
of connecting the street lighting and traffic signal systems to the existing
electrical distribution network;
6.
And that staff be authorized to retain Masongsong Associates Engineering Limited as
preferred supplier to provide construction inspection, contract administration
services, geotechnical material testing, and inspection of electrical works
during construction of the project to an upset limit of $215,173.00 exclusive
of GST, in accordance with
7.
And that a contingency amount of $31,500 exclusive
of GST be established to cover any additional construction inspection, contract
administration costs, geotechnical material testing, inspection of electrical
works and that the Director of
8.
And that the
sidewalk and illumination portions of the tender $235,034.77 and $185,353.59
respectively, exclusive of GST be funded from the
9.
And that staff be authorized to obtain competitive
quotes from Masongsong Associates Engineering and AECOM for the contract administration
and inspection for Phase 1A and 3B before the tendering process for such
construction projects, and retain AECOM or Masongsong as preferred supplier for
such contract administration and inspection in accordance with Purchasing
By-law 2004-341, Part II, Section 7(i);
10.
And the funding be provided from the summary listed
in the Financial Considerations section of this report. And that all funding received from external
sources (ie. Region of York, Cathedral Developers Group, and 404 North
Developers Group) be deposited into Engineering Department’s Capital Account #
83-5350-8441-005;
11.
And that staff be authorized and directed to do all
things necessary, including the execution of documents, to give effect to the
above.
EXECUTIVE SUMMARY:
The Woodbine Avenue By-pass will
provide a critical transportation link to support development in both Cathedral
and the 404 North Secondary Plans. An
Environmental Assessment for the project was completed in 2003 by the Region of
York with construction of the By-pass 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. This agreement facilitated
early construction of Phase 1 and 2A of the Woodbine By-pass, which extends
from just north of
For Phases 2B and 3, a Tri Party
Agreement is to be executed in April, 2009 by the Town, the Region of York and
the 404 North Developers Group. Phases 2B and 3 extend from Lord Melborne
Street to Woodbine Avenue as per Attachment ‘A’. The 404 North Developers Group is also
responsible for the majority of the construction costs with subsequent Regional
Development Charge credits.
In both Tri Party Agreements, the
Town has assumed responsibility for the design, approvals, project management
and maintenance of the Woodbine By-pass on behalf of the Region of York in
order to advance the construction of the By-pass from 2012/2013 to
2008/2009/2010. Upon completion of the By-pass
in its entirety, the Region will assume responsibility for the By-pass (including
maintenance and capital replacement).
The construction of the By-pass
is currently scheduled to be completed in three phases as per Attachment
‘A’. The phases are divided into the
following sections:
- Phase 1B – North of Major Mackenzie Drive to Elgin
Mills Road – currently under construction, under Contract #068-T-08 by the
Town to be completed in 2009.
- Phases 2A, 2B and 3A– Elgin Mills Road to Honda
Boulevard – has been tendered and staff is recommending the award of
contract to the lowest priced qualified bidder. Work is scheduled to commence in June of
2009 and be completed by September of 2010. The road component will be completed by
- Phases 1A and 3B – This future contract comprises the
transfer interface between old
Outstanding property required for
the construction of the By-pass for Phase 3B will be secured by the Town on
behalf of the Region, upon execution of the Tri-Party Agreement with the 404
North Developers Group and other property owners.
PURPOSE:
The purpose of
this report is to award the contract for the construction of Phases 2A, 2B, and
3A of the Woodbine By-pass, to retain consulting engineering services to
provide construction inspection, contract administration, geotechnical material
testing and inspection of electrical works during the construction of Phases
2A, 2B and 3A, and to retain an engineering consultant services for contract
administration and inspection for Phase 1A and 3B.
BACKGROUND:
The Region’s 10 Year Capital
Program identified construction of the Woodbine Avenue By-pass in their 2012
budget plan. The Environmental
Assessment for the Woodbine Avenue By-pass was completed by the Region of York
in June 2003 and was subsequently approved by the Ministry of the Environment
on
In April 2009, the Tri Party
Agreement is to be executed by the Town, the Region of York and the 404 North
Developers in which the Town will likewise assume responsibility for the
design, approvals and construction of Phases 2B, 3A, and 3B of the Woodbine
Avenue By-pass on behalf of the Region of York in order to advance the
completion date of the roadway from 2012 to 2009/2010 and facilitate the
development of the 404 North lands (particularly the Honda Head Office). The 404 North Developers are responsible for
funding this portion of Woodbine By-pass with subsequent Regional Development
Charge Credits. Likewise the Town will
fund the sidewalk and illumination components through its development
charges.
As negotiations between the Town
and 404 North Developers for funding of Phase 3B are ongoing, the Tri-Party Agreement
with the 404 North Developers Group may have to be phased or a separate
agreement entered into for Phase 3B.
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 |
January 15, 2009 |
|
Prequalification closed on |
January 30, 2009 |
|
Number of contractors picking up bid documents |
18 |
|
Number of contractors responding to bid |
18 |
|
Number of contractors prequalified |
16 |
Construction Tender
The construction tender # 029-T-09 was issued in accordance with the Purchasing
By-law 2004-341.
BID
INFORMATION
|
Tender release |
March 11, 2009 |
|
Bids closed on |
April 3,
2009 |
|
Number of contractors picking up bid documents |
15 |
|
Number of contractors responding with valid bid |
13 |
Detailed pricing information
as submitted is as follows,
exclusive of GST;
|
|
Contractors |
Total Price with discount |
Bid Opening Price |
|
1 |
Con-drain Company
(1983) Ltd. |
$2,678,869.08 |
$2,724,959.22 |
|
2 |
TACC Construction Ltd |
$2,709,649.33 |
$2,709,649.33 |
|
3 |
KAPP |
$2,826,010.34 |
$2,826,010.34 |
|
4 |
Carillion Construction Canada |
$2,865,850.20 |
$2,865,850.20 |
|
5 |
Pilen Construction of Canada |
$2,919,285.28 |
$2,919,285.28 |
|
6 |
Brennan Paving &
Construction |
$2,945,718.80 |
$2,945,718.80 |
|
7 |
MIWEL Construction |
$3,121,039.07 |
$3,121,039.07 |
|
8 |
ELPIRA Construction
& Materials |
$3,131,852.48 |
$3,131,852.48 |
|
9 |
Graham Bros.
Construction |
$3,259,052.72 |
$3,259,052.72 |
|
10 |
Dagmar Construction
Inc. |
$3,292,370.41 |
$3,292,370.41 |
|
11 |
Dufferin Construction
Co. |
$3,336,400.45 |
$3,336,400.45 |
|
12 |
Metric Contracting
Services |
$3,427,325.70 |
$3,427,325.70 |
|
13 |
B. Gottardo
Construction Ltd. |
$3,584,447.31 |
$3,602,459.61 |
Note: Con-Drain’s bid opening price of $2,724,959.22 was corrected to
$2,719,664.04 as they made an arithmetic extension error. As per the Town’s General Terms and
Conditions, in the event of any discrepancy between the unit price and the
extension, the unit price shall govern.
Con-Drain provided within their bid submission a 1.5% payment discount
(Savings of $40,794.96) for payments made within 15 business days after receipt
of approved invoice.
Detailed
Design, Contract Administration, and Site Inspection Services
AECOM (formerly Earth
Tech Limited) was retained by the Town in April 2006 to provide design services
for the entire By-pass. AECOM
completed the design of Woodbine By-pass to 60% completion for Phases 2A, 2B,
and 3A, in accordance with the approved Region of York Environmental Assessment
and the Region of York approval process.
Due to changes in the design (because of the Rice/Vetmar draft plans of
subdivision), AECOM was not able to commit to the completion of the remaining
design, in order to meet the commitment to open Woodbine By-pass to Honda
Boulevard by September 1, 2009. The remaining design work (from the 60%
completion stage by AECOM) to complete the design of Phases 2 and 3 was awarded
to Masongsong Engineering Limited by the Town in December, 2008, as per Staff
Report # 083-S-08. The component for
design for Phases 2A, 2B, and 3A is $79,688.34.
AECOM remained involved in the design process by carrying out the peer
review.
As a result of Masongsong Engineering Limited’s involvement in the design
stage for Phases 2 and 3, (providing a high level of consulting services to the
Town), coupled by their extensive involvement on design and contract
administration assignments for the OPA 149 developers group since 2007, staff
is recommending that Masongsong be retained as preferred supplier in accordance
with Purchasing By-law 2004-341, Part II. Section 7(i), for an upset limit
price of $215,173.00, exclusive of GST to provide the following services:
|
Service |
Cost, excluding GST |
|
Construction
Administration and Inspection services |
$124,861.00 |
|
Geotechnical
Materials Testing |
$65,009.00 |
|
Inspection
services of Electrical Works |
$25,303.00 |
|
Total Cost for services |
$215,173.00 |
The price submitted for
construction administration and inspection services by Masongsong Engineering
of $124,861.00 exclusive of GST, is approximately 4.7 % of the contract price
for tender #029-T-09. This percentage fee is typical and reasonable fee range
for a project of this magnitude and complexity.
Within Phase 2B and 3A, between Lord Melborne Street and
Honda Boulevard of the Woodbine By-pass, a deep sanitary sewer was constructed
in 2008 by the Rice Group on behalf of the 404 North Developers Group. The contract requires the developer to backfill
to the level of the road subgrade to municipal standards. The earth fill operation is scheduled for
completion by
Staff is recommending that a Contingency Fee of $31,500,
exclusive of all taxes, be allocated for additional construction inspection,
contact administration costs, and geotechnical materials testing. This contingency would also take into account
any issues that need to be examined as a result of the deep sewer installation by
the developer.
Outstanding Approvals/Property
The application for the roadway
storm drainage system has been sent to the Ministry of Environment in
consultation with the Region and the approval is expected in April, 2009.
There are no outstanding property
requirements in Phases 2A, 2B, or 3A, as the right of way has been secured by
the Region.
Project Schedule
The construction for Phases 2A, 2B, and 3A of the Woodbine By-pass
is scheduled to begin on
Project Transfer to the Region of
The Woodbine Avenue By-pass is a
Region of York arterial road. Upon
completion of the construction of the By-pass in its entirety, from Major
Mackenzie Drive to south of 19th Avenue, the road is to be conveyed
to the Region of York in accordance with 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). 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
CONSIDERATIONS:
The total cost, inclusive of 1.5% discount for
payment within 15 business days, exclusive of GST of constructing Phases 2A,
2B, and 3A of the Woodbine By-pass is as follows:
|
Item |
Cost, excluding GST |
|
Design
Fees |
$79,688.34 |
|
Construction
Cost |
$2,678,869.08 |
|
Construction
Contingencies |
$267,886.91 |
|
Primary
Connection - Powerstream |
$80,000.00 |
|
Contract
Admin. and Site Inspections |
$215,173.00 |
|
Contract
Admin. & Site Insp. Contingencies |
$31,500.00 |
|
Engineering
Department Capital Administration @ 4.0% |
$134,124.69 |
|
Total |
$3,487,242.02 |
Cost sharing of the construction
of Phases 2A, 2B, and 3A of the Woodbine By-pass has been calculated in
accordance with the terms of the Tri-Party Agreements between the Town, the
Region of York and the Cathedral Developers Group and the 404 North Developers
Group, and is summarized as follows:
Cathedral Developers – Phase 2A
|
Item |
Funding excluding GST |
|
Developer
Works |
$118,276.42 |
|
Regional
Works (Funded by Developer) |
$1,203,478.73 |
|
Town of |
$143,543.05 |
|
Total Estimated Project Funding |
$ 1,465,298.21 |
The Town funding for the sidewalk
will be from
The Town currently has $1,321,755.15 from
the Cathedral Developers. This surplus
amount will be used to fund Phase 2A of the project and will be deposited into
Engineering Department’s Capital Account # 83-5350-8441-005. As per the Tri-Party Agreement, the Town has
the ability to draw from the Letter of Credits to fund the construction of
Phase 2A.
404 North
Developers – Phases 2B and 3A
|
Item |
Funding excluding GST |
|
Developer
Works |
$226,972.73 |
|
Regional
Works (Funded by Developer) |
$1,518,125.77 |
|
Town of |
$276,845.31 |
|
Total Estimated Project Funding |
$ 2,021,943.81 |
The Town funding for the sidewalk
portion will be from
The Town has
currently secured $544,731 in funding from the 404 North Developers for design
fees which has been deposited into Engineering
Department’s Capital Account # 83-5350-8441-005. The Region has collected $1,057,400.19 in Regional
Development Charges which are to be transferred to the Town. Therefore additional security in the amount
of $142,967.31 is required from the 404 North Developers Group. The funding from the Region and the
Developers will be deposited into Engineering
Department’s Capital Account # 83-5350-8441-005.
Overall Funding
Summery – Phases 2A, 2B, and 3A
|
Item |
Funding excluding GST |
|
Developer
Works |
$345,249.15 |
|
Regional
Works (Funded by Developer) |
$2,721,604.50 |
|
Town of |
$420,388.37 |
|
Total Estimated Project Funding |
$ 3,487,242.02 |
All funds received
from external sources to be deposited into Engineering Department’s Capital
Account # 83-5350-8441-005.
Status of Phase 3B
The estimated cost for Phase 3B of the Woodbine By-pass is
$3,700,000.00 and is scheduled for construction in the summer of 2009 and
completion in the summer of 2010.
Negotiations with the 404 North Developer Group (Vetmar/Rice) are
ongoing as to funding and road dedication.
Staff will provide a verbal update at the April 21, 2009 Committee
meeting as to the status of the negotiations.
Phase 1A and 3B Consulting Services
Subject to resolution of funding
with the 404 North Developers Group and the 404 North Developers Group
completing servicing in the By-pass (Phase 3B), staff are scheduled to tender
Phase 1A and 3B late summer 2009. Staff are
requesting Council’s approval to obtain competitive quotes from Masongsong Associates
Engineering and AECOM and retain one of the consultants as a preferred supplier
in accordance with Purchasing By-law 2004-341, Part II, Section 7(i), for the
contract administration and inspection for Phase 1A and 3B before the tendering
process for such construction projects.
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
ATTACHMENTS:
Attachment A – Location Plan
Attachment B – Financial Summary
Q:\Development\Engineering\REPORTS\2009\April\Award
Tender #029-T-09\Tender 029-T-09 AWARD REPORT.doc