Report to: General Committee Report
Date:
SUBJECT: Award of Tender 024-T-10 Glenbourne Community Gravity Sanitary Sewer
PREPARED BY: Prathapan Kumar, Ext. 2989
Patti Malone, Ext. 2239
RECOMMENDATION:
1) THAT the report entitled “Award of Tender 024-T-10 Glenbourne Community Gravity Sanitary Sewer” be received;
2) AND THAT Tender 024-T-10 Glenbourne Community Gravity Sanitary Sewer be awarded to the lowest priced bidder, Howlett Development and Construction Service Ltd. in the amount of $145,051.76, inclusive of HST;
3) AND THAT a separate purchase order in the amount of $7,438.28 inclusive of HST be issued for contingency to cover any additional 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;
4) 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 of $3,052.80 inclusive of HST;
5) AND THAT a new Asset Management capital project be established for the Glenbourne Community Gravity Sanitary Sewer, to be financed from the Waterworks Stabilization/Capital Reserve in the amount of $207,000.00 and that the funds to be recovered from the benefitting property owners with appropriate interest;
6) AND THAT the 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 and the by-law approved by Council;
7) AND THAT the necessary By-law to levy the associated cost by property be prepared in accordance with the requirements of Section 391 of the Municipal Act 2001 and be forwarded to Council for adoption when the final cost of the project has been determined;
8) AND THAT the residents be allowed to have the option to pay the full amount of their allocated project costs at the time of the completion of work or in installments over 15 years on their tax bill with interest payable at the 15 Year Region of York Debenture Interest Rate in effect on the date the by-law is enacted, calculated annually in advance.
9) AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE
SUMMARY:
Not Applicable
PURPOSE:
The purpose of this report is to obtain Council approval to award construction tender
024-T-10 Glenbourne Community Gravity Sanitary Sewer and recover the costs of such work in accordance with Section 391 of the Municipal Act.
BACKGROUND:
The Glenbourne and Glenridge
Area is located south of Major Mackenzie Drive and east of Warden Avenue
(Attachment “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. The contract
for detailed design of a sanitary sewer system was awarded to Cole Engineering
Group Ltd. on
The Glenbourne and Glenridge Area were separated into three groups based on the type of municipal sanitary sewer system:
|
Group 1 (6 lots) Immediate south of |
- |
Construction of a gravity sewer system |
|
Group 2 (68 lots) South of walkway |
- |
Construction of a low pressure sewer system (LPS) - forcemain |
|
Group 3 (9 lots) North of walkway |
- |
Gravity service connections to the existing gravity sewer constructed by the Angus Glen Developer |
Construction
Quotation
Originally
the project was tendered in April 2009 for both forcemain and gravity
sewer. Town received two-thirds support
from the Group 2 residents for forcemain construction and construction was
completed in 2009. Gravity sewer portion
of tender was cancelled as insufficient support received within the bid
validity period. Later in September
2009, Town received two-thirds support (4 in favour out of 6). At that time it was decided to re-tender the
gravity sewer part in 2010.
BID INFORMATION:
|
Advertised |
Electronic
Tendering Network |
|
Bids
closed on |
|
|
Number
picking up bid documents |
16 |
|
Number
responding to bid |
10 |
DETAILED PRICING INFORMATION:
|
Company |
Prices |
|
1. Howlett
Development and Construction Services Ltd. |
$145,051.76 |
|
2. Tedescon Infrastructure Ltd. |
$152,640.00 |
|
3. Lancorp Construction Ltd. |
$173,465.91 |
|
4. Turbo Contracting Ltd. |
$176,991.17 |
|
5. Avertex Utility Solution Inc. |
$177,207.92 |
|
6. Calder Hill Contracting Ltd. |
$187,543.17 |
|
7. Sam Rabito Construction |
$205,545.06 |
|
8. Dig-Con International Ltd. |
$226,575.76 |
|
9. Lombardi Construction |
$255,270.14 |
|
10. Robert Somerville
Co. Limited |
$254,894.76 |
Note: Prices are inclusive of HST and have been
verified for accuracy and compliance with the tender terms and conditions.
Contract administration and construction inspection services will be awarded to the highest ranked, lowest bidder of RFP173-R-08, Cole Engineering for an upset limit of $23,579.31 (Inclusive of HST) in accordance with Town’s purchasing bylaw.
OPTIONS/ DISCUSSION:
A. Meeting
with Residents
A public
information meeting with the residents of Glenbourne Community (Group 1) was
held on
The Town received two-thirds of
support as of
FINANCIAL CONSIDERATIONS AND TEMPLATE:
Total Project
Costs
The
estimated total project costs inclusive of HST are summarized below:
|
Construction Cost |
$145,051.76 |
$142,543.00 plus $2,508.76
HST |
|
Add: Construction
Contingency (+5.13%) |
$7,438.28 |
$7,309.63 plus
$128.65 HST |
|
Sub Total |
$152,490.04 |
|
|
Add:
Design Fee (approved and paid previously under RFP 173-R-08) |
$5,699.27 |
|
|
Add:
Contract Administration Fees |
$21,435.74 |
$21,065.00 plus
$370.74 HST |
|
Add:
Contract Administration Fees – Contingency (10%) |
$2,143.57 |
$2,106.50 plus
$37.07 HST |
|
Add:
Geotechnical Investigation during construction (estimated) |
$3,052.80 |
$3,000.00 plus $52.80 HST |
|
Total (Design + Construction) Cost |
$184,821.42 |
|
|
Add: Engineering &
Project Management by Town Staff +12.0% of (total design + const.
cost) |
$22,178.58 |
|
|
Total Project Costs |
$207,000.00 |
|
·
Total Project Costs
The total project costs are
estimated to be $207,000.00, inclusive of HST.
This includes the cost of construction, engineering and all related
administration fees. This does not include
the resident’s cost of connection on their private property.
·
Funding
If
approved by Council, the Town will front-end the project cost with funding from
the Waterworks Stabilization/Capital Reserve deposited into a new
capital account and recover the Total Project
Costs from the six benefitting property owners with the appropriate interest.
·
Method of Cost Sharing:
Under Section 391
of the Municipal Act, the project cost could be equally shared by the six
benefitting property owners of Group 1 for approximately $34,500 each.
·
Method of Payment
If approved by Council, the 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 15 years
with interest payable at the 15 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
RECOMMENDED
BY:
ATTACHMENTS:
Appendix
“A” - Key Plan
Attachment “B” - “Request for
Construction of Gravity Sanitary Sewer” Petition Form