Report to: General Committee                                                        Report Date: April 16, 2009

 

 

SUBJECT:                          Award of Tender 082-T-09 Glenbourne and Glenridge Communities Sanitary Sewer

PREPARED BY:               Prathapan Kumar, Ext. 2989

                                            Phoebe Fu, Ext. 3010

                                            Patti Malone, Ext. 2239

RECOMMENDATION:

1)            THAT the report entitled “Award of Tender 082-T-09 Glenbourne and Glenridge Communities Sanitary Sewer” be received;

 

2)            AND THAT if two-thirds of the lots owners within Group 2 (all 68 lots), as shown on Appendix “A”, indicate their willingness to repay the cost of the sanitary sewer:

(a)          the contract for 082-T-09 Glenbourne and Glenridge Communities Sanitary Sewer be awarded to the overall lowest priced bidder Digit Excavating Inc. for Part 1 (68 lots) works in the amount of $396,085.00 exclusive of GST;

(b)         a separate purchase order for the Part 1 works in the amount of $59,412.75 exclusive of GST be issued for contingency to cover any additional works and that the Director of Asset Management be authorized to approve expenditure of this contingency amount up to the specified limit in accordance with the Expenditure Control Policy;

(c)          staff be authorized to retain the highest ranked and lowest priced bidder of RFP 173-R-08, Cole Engineering Group Ltd. for contract administration of Part 1 works for an upset fee limit of $33,831.00 inclusive of disbursements and exclusive of GST;

(d)         a separate purchase order for a contingency amount of $3,383.10 exclusive of GST be established to cover any additional contract administration fees and that the Director of Asset Management be authorized to approve expenditure of this contingency amount up to the specified limit in accordance with the Expenditure Control Policy;

(e)          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 of Part 1 works to an upset limit of $7,000.00 exclusive of GST;

(f)           funds in the amount of $534,176.55 be deposited into capital account 058-5350-8524-005 for construction, engineering and all related administration costs funded from the Waterworks Stabilization/Capital Reserve, to be recovered from the benefiting property owners with appropriate interest;

(g)          actual construction cost, all the engineering and related administrative and financing costs front-ended by the Town form part of the total project cost and be recovered in accordance with the requirements of Section 391 of the Municipal Act;

(h)          the necessary By-Law to levy the associated cost against the benefiting properties be forwarded to Council for adopted when the final cost of the project has been determined;

(i)            the residents of Group 2 be permitted the option of payment in the full of their allocated project cost at the time of the completion of work or in installments over 10 years with interest payable at the 10 Year Region of York Debenture Interest Rate in effect on the date the By-Law is enacted, calculated annually in advance.

 

3)            AND THAT if less than two-thirds of the 68 lot owners support the installation of the sewer by end of April 28, 2009:

(a)          Staff be authorized to construct the sewer with one lateral to service #24 Glenbourne Park Drive only, subject to receipt of funding as detailed in recommendation 3(g) below;

(b)         the contract for 082-T-09 Glenbourne and Glenridge Communities Sanitary Sewer be awarded to the overall lowest priced bidder Digit Excavating Inc. for Part 2 works only with one lateral in the amount of $38,610.00 exclusive of GST;

(c)          a separate purchase order for the Part 2 works in the amount of $5,791.50 exclusive of GST be issued for contingency to cover any additional works and that the Director of Asset Management be authorized to approve expenditure of this contingency amount up to the specified limit in accordance with the Expenditure Control Policy;

(d)         staff be authorized to retain the highest ranked and lowest priced bidder of RFP 173-R-08, Cole Engineering Group Ltd. for contract administration for Part 2 works for an upset fee limit of $8,326.50 inclusive of disbursements and exclusive of GST;

(e)          a separate purchase order for a contingency amount of $832.65 exclusive of GST be established to cover any additional contract administration fees and that the Director of Asset Management be authorized to approve expenditure of this contingency amount up to the specified limit in accordance with the Expenditure Control Policy;

(f)           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 of Part 2 works to an upset limit of $500.00 exclusive of GST;

(g)          the actual construction cost, all the engineering and related administrative and financing costs in the total amount of $61,962.04 exclusive of GST be front-ended by the owner of #24 Glenbourne Park Drive;

(h)          a new 2009 Right-Of-Way Assets Capital Budget be established for the construction and all related administrative costs to an upset limit of $57,567.94;

(i)            the necessary By-Law to levy the associated cost by property be prepared for lots #24, #26, 29 and #31 Glenbourne Park Drive in accordance with the requirements of Section 391 of the Municipal Act 2001.

(j)           The Mayor and Clerk be authorized to enter into an agreement with the owner of No. 24 Glenbourne Park Drive providing for the upfronting of the cost of the Part 2 works including an indemnity with respect to additional costs to the rest of the community and provision for recovery from the owners of Nos. 26, 29 and 31 Glenbourne Park Drive, and any other documents required to give effect to this resolution, to the satisfaction of the Chief Administrative Officer and Town Solicitor.

 

4)            AND THAT the staff to report back on the process and the rate for wastewater charges for the residents who are connected to sanitary sewer only.

 

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

 

EXECUTIVE SUMMARY:

Not Applicable

 

 

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

PURPOSE:

The purpose of this report is to obtain Council approval to award contract 082-T-09 Glenbourne and Glenridge Area Sanitary Sewer in part or in whole subject to receipt of sufficient support from the property owners.

 

BACKGROUND:

The Glenbourne and Glenridge Area is located south of Major Mackenzie Drive and east of Warden Avenue (Appendix “A”), and includes Glenbourne Park Drive, Scandia Court, Glenhollow Court, Glenmaple Court, Glenridge Drive, and Walnut Glen Place.  Residents within this area are currently served by individual septic system.  Staff reported on the status of the project in “Glenbourne and Glenridge Communities Sanitary Sewer” on May 26, 2008, and awarded the contract for detailed design of a sanitary sewer system in “Award of RFP #173-R-08 Glenbourne ad Glenridge Sanitary Sewer” to Cole Engineering on October 28, 2008.

 

The Glenbourne and Glenridge Area was separated into three groups based on the type of municipal sanitary sewer system:

Group 1 Area  (6 properties)

North of walkway

-

Construction of a gravity sewer system

Group 2 Area (68 properties)

South of walkway

-

Construction of a low pressure sewer system (LPS) - forcemain

Group 3 Area (9 properties)

North of walkway

-

Gravity service connections to the existing gravity sewer constructed by the Angus Glen Developer

 

The owner of No. 24 Glenbourne Park Drive (Part of Group 2) is constructing a new dwelling and if the sanitary sewer is not installed by the 31st of May, the Owner will be required to install a septic system to permit occupancy of the dwelling.  Private sewage servicing is undesirable in these circumstances, from several perspectives, including throw away costs and the effect on the natural environment.  While it is preferable from a construction management perspective to install the sewer throughout the community, it is possible to separate out the short length of sewer necessary to service No. 24 (and 26, 29 and 31 as well) Glenbourne Park Drive as a separate project, in the event that the community does not support the sewer installation as a whole, or in the event that their support cannot be obtained in sufficient time to permit No. 24 Glenbourne to be occupied in a timely way.  Accordingly, when the project was tendered, it was tendered in such a way as to permit the Town the option to award the contract for:

1.                  The entire Group 2: 68 lots (Part 1 of Tender);

2.                  The short section to accommodate Nos. 24, 26, 39 and 31 Glenbourne Park (Part 2 of the Tender)

3.                  The balance of the community at a later date if option 2 above is exercised (Part 3 of the Tender); or

4.                  Group 1: Six lots at the north end of Glenbourne Park Drive to be serviced by gravity sewer only (Part 4 of the Tender).

 

Bid Information:

Advertised

ETN

Bids closed on

April 03, 2009

Number picking up bid documents

13

Number responding to bid

4

 

Detailed Pricing Information:

The tender was broken into four parts to accommodate potential award of the contract in different phases.

Company

Prices (excluding GST)

Part 1 (68 lots)

Part 2 (4 lots) with one lateral

Part 3 (64 lots)

Part 4 (6 lots)

1.  Digit Excavating Inc.

$396,085.00

$38,610.00

$371,155.00

$101,152.00

2.  HDC Services Ltd.

$590,542.00

$40,115.00

$551,336.50

$145,027.00

3.  Dig-Con International Ltd.

$632,040.25

$39,815.00

$585,432.00

$162,100.10

4.  North Rock Group Ltd.

$1,009,268.31

$33,100.85

$918,875.00

$219,205.11

Note:   Prices are exclusive of GST and have been verified for accuracy and compliance with the tender terms and conditions.

 

OPTIONS/ DISCUSSION:

A.        Meeting with Residents

A public information meeting with the residents of Glenbourne and Glenridge communities was held on April 21st, 2008 to present the preliminary sewer layout, preliminary cost estimate, funding, method of cost sharing and the method of payment.  A second public information meeting attended by Councillor Dan Horchik, Phoebe Fu, and Prathapan Kumar was held on April 9th, 2009 to present the tender prices.  “Request for Construction Glenbourne and Glenridge Communities Sanitary Sewer System” petition forms were provided to the property owners to determine their interest to proceed with the construction of municipal sanitary sewer system.

B.        If sufficient support is received from the residents of Group 2 (68 lots):

Staff will award the contract according to the proposed resolution as outlined in the report.

o       Total Estimated Project Cost (Group 2, 68 Lots – Forcemain, Part 1 of Tender): The total project costs include the cost of construction and engineering fees.  This project cost does not include the resident’s cost to connect their private property to the sewer.

Construction Cost for Part 1 Works

$396,085.00

Add: Construction Contingency

$59,412.75

Sub Total

$455,497.75

Add:  Engineering Design Fees (approved previously under RFP 173-R-08) (A)

$74,699.84

Add:  Contract Administration Fees

$33,831.00

Add:  Contract Administration Contingency

$3,383.10

Add: Geotechnical Investigation during construction phase (estimated)

$7,000.00

Total Construction Cost

$574,411.69

Add: Project Management by Town Staff (6% of total const.)

$34,464.70

Total Project Costs (B)

$608,876.39

Total Additional Funding Required (B)-(A)

$534,176.55

o       Funding: If approved by Council, the Town will front-end the project cost for Part 1 works (68 lots) with funding from the Waterworks Stabilization/Capital Reserve deposited into capital account 058-5350-8524-005 and recover the Total Project Costs (B), which includes the design fees, from the benefiting property owners.

o       Method of Cost Sharing: Under Section 391 of the Municipal Act, the project cost for Part 1 works could be equally shared by the property owners of Group 2 approx. $8,960/lot.

o       Method of Payment: If approved by Council, residents of Group 2 will have to pay the Town back for their share of the cost by a one-time lump sum payment or by installments over 10 years, plus accrued interest.

C.        If insufficient support is received from the residents of Group 2 (68 lots) by April 28, 2009:

The owner of #24 Glenbourne Park Drive (part of Group 2) has requested staff to proceed with the sanitary sewer extension up to his property by May 31, 2009 ahead of the community process.  In order to do so, the contract must be awarded by April 28, 2009.  The owner of #24 Glenbourne Park Drive has agreed to pay all costs associated with this construction contract, and no additional costs are to be incurred by the community due to this arrangement.  In addition, the owner of #24 Glenbourne Park Drive is seeking cost reimbursement from the three property owners (#26, 29 and #31) that benefit from the extension of the sewer to No. 24.  

In the event that the required community support for the 68 lot sewer is not obtained by April 28th, Staff is seeking authorization to proceed with the award of contract for Part 2 only (4 lots)  The award will only occur under the following key conditions:

o       All project costs, including design fees, associated with this contract will be paid for by the owner of #24 Glenbourne Park Drive

o       Council adopt a by-law under s. 391 of the Municipal Act, to levy one quarter of the Part 2 (4 lots) project cost (including design fees) against each of Numbers 26, 29 and 31 Glenbourne Park Drive.

o       The Town and the owner of No. 24 Glenbourne Park Drive, who is front ending the cost of the sewer installation for all 4 lots, enter into an agreement to ensure that, in the event that the rest of the community (64 lots) proceeds with the sewer installation, they will incur no additional costs as a result of doing this 4 lot installation in advance, and to provide for reimbursement of costs to the front ending owner as Nos. 26, 29 and 31 connect to the sanitary sewer.

 

o       Total Estimated Project Cost (Group 2, 4 Lots – Forcemain with one lateral only, Part 2 of Tender): The total project costs include the cost of construction and engineering fees.  This does not include the resident’s cost of connection on their private property.

Construction Cost for Part 2 Works

$38,610.00

Add: Construction Contingency

$5,791.50

Sub Total

$44,401.50

Add:  Engineering Design Fees (approved previously under RFP 173-R-08) (C)

4,394.11

Add:  Contract Administration Fees

$8,326.50

Add:  Contract Administration Contingency

$832.65

Add: Geotechnical Investigation during construction phase (estimated)

$500.00

Total Construction Cost

$58,454.76

Add: Project Management by Town Staff  (6% of total const.)

$3,507.29

Total Project Costs (D)

$61,962.05

Total Additional Funding Required (D)-(C)

$57,567.94

 

FINANCIAL CONSIDERATIONS AND TEMPLATE:

If the Town proceeds with the construction of Glenbourne and Glenridge Communities Sanitary Sewer Part 1 (68 lots) works, the total project cost will be front-ended by the Town and recovered by imposing an equal fee against each of the benefiting property owners abutting the works in accordance with Section 391 of the Municipal Act. 

 

The project can be funded from Waterworks Stabilization/Capital Reserve deposited into capital account 058-5350-8524-005 and paid back with the appropriate interest.  The s. 391 by-law will provide the residents with the option of paying the full amount either as one interest free lump sum payment or annually up to a maximum 10 years with interest payable at the 10 Year Region of York Debenture Interest Rate in effect on the date the by-Law is enacted.  Payment in full of the outstanding balance plus accrued interest would be permitted at anytime.

 

HUMAN RESOURCES CONSIDERATIONS:

Not Applicable

 

ALIGNMENT WITH STRATEGIC CONSIDERATIONS:

Eliminating the existing septic system and replacing with the sanitary sewer system will reduce the sulphur loading in soil and water in the nearby areas and enhance the overall environment.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Finance and Legal Departments have been consulted, provided input and reviewed this report.  The Finance Department has reviewed and concurred with this report.  Should Council approve this project, the Clerks Department in consultation with the Legal and Finance Department will be required to prepare the Fee By-Law for Part 1 works with all the terms and conditions in accordance with Section 391 of the Municipal Act 2001, upon project completion.

 

RECOMMENDED

 

BY: _____________________                     BY:   _________________________________

    Steve Andrews, P.Eng.                                                   Brenda Librecz

       Director of Asset Management                      Commissioner, Community & Fire Services

                                 

ATTACHMENTS:

Appendix “A” - Key Plan

 

 

Q:\Commission Share\Operations and Asset Management\Reports\2009\Asset Management\Award of Tender 082-T-09 Glenbroune and Glenridge Communities Sanitary Sewer_Apr20 09 GC_Final.doc