Report to: General Committee                                                     Report Date: March 01, 2010

 

 

SUBJECT:                          Award of Tender 340-T-09 Construction of Greensborough Neighbourhood Park on Stalmaster Road

PREPARED BY:               Linda Irvine, Manager, Parks and Open Space Development, Ext. 2120.

                                            Tony Casale, Senior Buyer, Ext. 3190.

 

 

RECOMMENDATION:

 

1)                  That the report entitled “Award of  Tender 340-T-09 Construction of Greensborough Neighbourhood Park on Stalmaster Road” be received;

 

2)                  That the Contract for 340-T-09 Construction of Greensborough Neighbourhood Park on Stalmaster Road be awarded to third lowest priced bidder, Colpac Construction Inc., in the amount of $579,451.00 inclusive of PST and exclusive of GST;

 

3)                  That a separate purchase order in the amount of $52,945.10 exclusive of GST be issued to the contractor for contingency to cover any additional fees, that a separate purchase order in the amount of $5,000.00 exclusive of GST be issued to MEP Design Inc. for any additional contract administration services and that the Town Architect be authorized to approve expenditure of these contingency amounts up to the specified limit in accordance with the Expenditure Control Policy;

 

4)                  That Internal Capital Administration fees be charged against the 2007 Urban Design Department Capital Project 081-5350-7625-005 Greensborough NP Stalmaster in the amount of $42,165.09.

 

5)                  That the award in the amount of $679,561.19 be funded from the 2007 Urban Design Department Capital Project 081-5350-7625-005 Greensborough NP Stalmaster with a balance remaining of $542,450.00;

 

6)                  And That the shortfall in the amount of $137,111.19 be funded from the Urban Design development charges reserve account in the amount of $123,400.07 and the balance in the amount of $13,711.12 be funded from the capital contingency account # 044 6900 6395 005 and transferred to the Urban design account # 081 5350 7625 005;

 

7)                  And Further That staff be authorized and directed to do all things necessary to give effect to this resolution.

 

PURPOSE:

The purpose of this report is to obtain Council approval to award the Contract for the Construction of Greensborough Neighbourhood Park on Stalmaster Road.

 

 

 

 

BACKGROUND:

The Greensborough Neighbourhood Park on Stalmaster Road is a 5 acre park construction project in the Greensborough Community north of 16th Avenue and East of Highway #48.  The park is bound by Bur Oak Avenue on the south and Mount Joy Public School on the west.

 

The scope of work includes but is not limited to site servicing, rough grading, fill removal, sub-grade preparation, asphalt and concrete paving, playground with concrete curb and play sand, steel shade trellis, fencing, irrigation, planting, sodding and park furniture installation.  The project is to begin construction in the spring of 2010 and the soccer field is to be sodded and complete by June 30, 2010.  The balance of the park is to be completed by August 31st, 2010.

 

OPTIONS / DISCUSSION:

Tender # 340-T-09 was issued in accordance with Purchasing By law 2004-341.  Urban Design and Purchasing staff has reviewed the bid documents and are satisfied that all the terms, conditions, bid prices and specifications comply with the Town’s requirements.  The tender details and results are summarized below:

 

BID INFORMATION:

Advertised

ETN

Bids closed on

January 27, 2010

Number of Bidders

30

Number responding to bid

20

 

DETAILED PRICING INFORMATION:

Company

Prices (exclusive of GST)

Wilson Contracting Limited

   $536,858.00 *

Pacific Paving Limited        

     $570,984.88 **

Colpac Construction Inc.

$579,451.00

Forest Contractors Ltd.

$675,483.00

Iron Trio Inc.

$679,790.76

Wyndale Paving Co. Ltd.

$693,631.68

Pine Valley Enterprises Inc.

$714,330.00

Gateman-Milloy Inc.

$746,191.04

North York Excavating & Contracting Limited

$756,180.00

Evansgolf Corporation

$756,571.31

Todd Brothers Contracting Ltd.

$763,216.15

Dig-Con International Limited

$769,244.33

Cambium Site Contracting Inc.

$804,393.85

Mopal Construction Ltd.

$816,353.40

Rutherford Contracting Ltd.

$832,490.68

Melfer Construction Inc.

$850,561.50

Royalcrest Paving & Contracting Ltd.

$898,507.05

Elirpa Construction & Materials Ltd.

$927,530.79

Gobro Con Inc.

$985,926.49

Serve Construction Ltd.

$1,039,741.50

 

* Wilson Contracting Limited (Not recommended)

Staff recommends not to award this contract to the lowest priced bidder.  In accordance with Purchasing By-Law 2004-341, Part II, Section 1 (5) “The Town reserves the right not to accept the lowest or any bid submitted, if such action is deemed to be in the best interests of the Town.” 

 

The low bidder miscalculated their quantities on items 2.2 (Remove and dispose, as needed, excess clean native fill materials) and 2.4 (Place Sports Field Mix) as identified in the bid document.  Item 2.2 was substantially lower than all other proponents; including the second lowest bidder (low bidder priced this item at $30,000.00 versus other bidders’ pricing which ranged from $70,000.00 - $160,000.00).  Furthermore, pricing for item 2.4 was slightly lower than other proponents (low bidder priced this item at $23,184.00 versus other bidders’ pricing which ranged from $33,075.00 - $63,000.00).

 

Town staff are concerned about the inherent risks associated with awarding a contract based on pricing that does not adequately reflect the contractor’s costs.  Furthermore, the low bidder confirmed in writing that the pricing for items (2.2. and 2.4) did not reflect the job required and requested to withdraw their bid.  The Towns General Terms and Conditions do not permit withdrawal of a bid after tender closing date, but the Town has the direction not to award to the lowest bidder, if such action is deemed to be in the best interest of the Town.

 

**Pacific Paving Limited (Not recommended)

Staff recommends not to award this contract to the second lowest priced bidder as they are currently involved in litigation with the Town of Markham.  As per the Town’s General Terms and Conditions Item 40 (g) -Privilege Clause “…The Town shall have the right not to accept the lowest or any Quotation submitted.  The Town, at its sole discretion, reserves the right to: …(g) remove from its list of bidders…the name of any Bidder…if the Bidder is currently involved in litigation of any kind against the Town.”

 

Colpac Construction Inc (Recommended)

Staff recommends awarding the contract to the third lowest priced proponent Colpac Construction Inc. The recommended bidder was the 3rd lowest priced at bid opening and was approximately 8% higher than the lowest priced bidder and 1.5% higher than the 2nd lowest priced bidder.

 

Staff have worked with Colpac Construction Inc. in the past and are confident that they will meet if not exceed expectations.

 

 

 

 

FINANCIAL CONSIDERATIONS AND TEMPLATE:

 

9% Internal Capital Administration fees for this project are to be charged on the consulting cost of $39,050.00 and construction award of $579,451.00 for a total fee of $55,665.09 of which $13,500.00 has already been drawn.  The remaining fees are to be charged against the 2007 Urban Design Department Capital Project 081-5350-7625-005 Greensborough NP Stalmaster in the amount of $42,165.09.

 

The Greensborough NP Stalmaster project (081-5350-7625-005) has a remaining balance of $542,450.00 which, less this award, creates a shortfall of $137,111.19 to be funded from development charges in the amount of $123,400.07 and the capital contingency account (044-6900-6395-005) in the amount of $13,711.12 based on the original 90/10 split in the project budget.  The Development Charges Background Study identifies adequate funding for this project.

 

The financial considerations include PST (8%), any monies expended after July 2010 will be subject to the implementation of the HST.

 

As part to the overall storm water management plan for this subdivision, this park site includes a “dry pond” function. So as not to delay park construction, the park tender was released based on existing site grading plans which do not accurately reflect what the final grading of the site will be once the developer completes his work to meet the subdivision storm water requirements. The developer will be removing excess fill from the site this spring to meet his storm water management obligations in advance of the start of park construction. This work is estimated at approximately $50,000 in value. Once this work is completed, a change order will be issued and the park contractor will be asked to re-price his fill export quote (item 2.2 in the tender). Under the General Terms and Conditions of the tender, the Town is entitled to issue change orders to reduce the value of work in the contract.  The tender includes a unit price for fill removal which will be used as a basis for a change in the price once actual quantities are known. This will result in cost savings to the project and the “actual” budget shortfall will be less than what is identified in this report. After anticipated savings are realized, the remaining funding shortfall is attributed to the challenges and costs of constructing a full sized soccer field within a site constrained by storm water storage requirements. Any recovered cost savings realized at the completion of this project will be returned to the original funding source.

 

HUMAN RESOURCES CONSIDERATIONS

Not Applicable

 

ALIGNMENT WITH STRATEGIC PRIORITIES:

Not Applicable

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Finance Department has reviewed this report and their comments have been incorporated.