The Regional Municipality of Halton. Chair and Members of the Planning and Public Works Committee

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1 The Regional Municipality of Halton Report To: From: Chair and Members of the Planning and Public Works Committee Jim Harnum, Commissioner, Public Works Date: February 10, 2016 Report No. - Re: PW Tender Award - Contract WS2728B, Watermain and Wastewater Main Installation along Sixth Line in the Town of Oakville, Our Files: PR-2728B and PR-3016A RECOMMENDATION 1. THAT the project budget for W2728B, (ID6362) Watermain on Sixth Line from Burnhamthorpe Road (Regional Road 27) to Sixteen Mile Drive, in the Town of Oakville, be increased by $3,858,000 from $2,005,000 to $5,863,000 and that the required funding be financed as set out in Attachment #1 to Report No. PW THAT the project budget for S3016A, (ID6551) Wastewater Main on Sixth Line and Sixteen Mile Drive, from Burnhamthorpe Road (Regional Road 27) to Dundas Street (Regional Road 5), in the Town of Oakville, be increased by $5,512,000 from $1,519,000 to $7,031,000 and that the required funding be financed as set out in Attachment #2 to Report No. PW THAT Council authorize the award of Contract WS2728B-15 for the Watermain and Wastewater Main installation along Sixth Line from Burnhamthorpe Road (Regional Road 27) to Sixteen Mile Drive, in the Town of Oakville, to Tedescon Infrastructure Ltd., of Kleinberg, Ontario in the amount of $7,031,330 (excluding H.S.T.) as set out in Report No. PW THAT the Manager of Purchasing Services be authorized to issue a purchase order to Tedescon Infrastructure Ltd., of Kleinberg, Ontario in the amount of $7,031,330 (excluding H.S.T.). 5. THAT the Manager of Purchasing Services be authorized to increase the purchase order to Ainley & Associates Limited of Collingwood, Ontario for S3016A, Purchase Order No in the amount of $93,500 by $58,000 to $151,500 (excluding H.S.T.) for the expansion of design services related to Contract WS2728B-15 re: Watermain and Wastewater Main Installation along Sixth Line, in the Town of Oakville. 6. THAT the Commissioner of Public Works be authorized to execute the contract documents and any and all ancillary documents upon receipt of all necessary approvals. 1

2 REPORT Executive Summary The water and wastewater servicing under projects W2728B and S3016A was identified as part of the 2011 Sustainable Halton Water and Wastewater Master Plan, and financed through the 2012 Allocation Program, to service proposed development in the North Oakville Area, in the Town of Oakville. To accommodate phasing of development and the servicing requirements of the area a significant portion of the sewer and watermain work has been relocated to the Sixth Line corridor and lowered significantly. In September 2015, staff issued the tender for the construction of the watermain and wastewater mains along Sixth Line in the Town of Oakville. Fourteen Bids were received for this project and Tedescon Infrastructure Ltd., of Kleinberg, Ontario was the low bidder. Construction is scheduled for completion in December 2016 to ensure that Halton Region s commitments under the Allocation Program are met. Additional funding is required to award the contract to Tedescon Infrastructure Ltd., and ensure sufficient funding is available for wastewater works to be constructed as part of the Green Ginger Phase 1, Green Ginger Phase 2, Petgor (Mattamy) Phase 1B and Sixth Line Corporation, Phase 1 developments. In September 2014, Ainley & Associates Limited of Collingwood, Ontario was retained to undertake the preliminary and detailed design services for watermain and wastewater main installation along Sixth Line, in the Town of Oakville. An expansion of Ainley & Associates Limited s assignment is also required to reflect the realignment and lowering of the wastewater mains. Background The water and wastewater servicing under projects W2728B and S3016A was identified as part of the 2011 Sustainable Halton Water and Wastewater Master Plan, and financed through the 2012 Allocation Program, to service proposed development in the North Oakville Area, in the Town of Oakville. The construction is scheduled for completion in December 2016 to ensure that Halton Region s servicing targets under the Allocation Program are met. 2

3 Discussion As originally anticipated within the 2011 Sustainable Water and Wastewater Master Plan, the wastewater mains under project S3016A were to be constructed by the participating land owners and integrated into their site servicing works. In discussions with the landowners it became evident that, in order to meet the target timeframes in the Allocation Agreements, the wastewater mains between Sixteen Mile Drive and Burnhamthorpe Road would need to be relocated to the Sixth Line corridor. It was also determined during detailed design that elevation of the wastewater main needed to be lowered in order to service the adjacent lands. The relocation of the infrastructure to Sixth Line makes construction phasing more complex, necessitating detailed traffic control, the accommodation of conflicting utilities, and pavement restoration, all of which add to the cost of the work. The length of the wastewater main is also increased by approximately 690 metres further adding to the cost of the project. The lowering of the wastewater main to meet servicing requirements of the adjacent land as identified through detailed design means that the infrastructure will be constructed in rock which, historically, is more expensive than typical construction in soft material. By combining the wastewater main construction with the watermain construction in the Sixth Line corridor, the cost of the watermain under project W2728B is also impacted by the traffic control and need to accommodate utilities, increasing the cost of this work as well. Procurement Process Construction Contract WS2728B-15 W2728B and S3016A were tendered together under Contract WS2728B-15 and was advertised on Biddingo s website on Tuesday, September 22, 2015 and closed on Tuesday, October 27, Fourteen compliant bids were received as noted below: Tenderer Tedescon Infrastructure Ltd Huntington Road Kleinburg, ON L0J 1C0 Lump Sum Tender Price (excluding H.S.T.) $7,031, Dom-Meridian Construction Ltd. $7,390, Clearway Construction Inc. $7,665, D Orazio Infrastructure Group Limited $7,767, Varcon Construction Company Ltd. $7,947, F.C.M. Construction Limited $8,100, Pachino Construction Ltd. $8,102, London Excavators & Trucking Ltd. $8,134, New Alliance Ltd. $8,880, Mardave Construction (2007) Ltd. $8,985,

4 Memme Excavation Company Limited $8,995, Lakeside Constructing Company Ltd. $9,119, King Cross Contracting Ltd. $9,303, Drainstar Contracting Ltd. $9,587, Staff have reviewed the tender prices, completed reference checks, and is satisfied with the prices submitted for the construction of the watermain and wastewater main to complete the work. Staff are recommending that that the construction contract be awarded to Tedescon Infrastructure Ltd., of Kleinberg, Ontario being the low bidder. Additional Funds The total approved budget to complete W2728B, (ID6362) (Watermain on Sixth Line from Burnhamthorpe Road to Sixteen Mile Drive, in the Town of Oakville) is $2,005,000. Based on the tender prices, the cost to deliver the works for project (ID6362) is $5,863,000, an increase of $3,858,000. The total approved budget to complete S3016A, (ID6551) (Wastewater Main on Sixth Line from Burnhamthorpe Road to Dundas Street, in the Town of Oakville), including those works to be constructed by the developers is $1,519,000. Based on tender prices and cost estimates from the developers, the cost to deliver works for project S3016A (ID6551) is $7,031,000, an increase of $5,512,000. The wastewater works between Dundas Street and Sixteen Mile Drive at Sixth Line is to be constructed by the participating landowners. The developments and projects are outlined below: Contact DO-726 through Green Ginger Phase 1 already constructed. Cost $27,500; Contract DO-1013 through Green Ginger Phase 2 to be constructed. Cost $1,133,366; Contract DO-1016 through Petgor (Mattamy) Phase 1B to be constructed. Estimated maximum cost $455,495; Contract DO-1014 Sixth Line Corp., Phase 1 to be constructed. Estimated maximum cost $938,968. Funding for all works will be provided through the Allocation Program as indicated in the Financial/Program Implications. 4

5 Additional Consulting Services In September 2014, Ainley & Associates Limited of Collingwood, Ontario was retained to undertake the preliminary and detailed design services for the watermain and wastewater main installation along Sixth Line, at an upset limit of $93,500 (plus H.S.T.). As a result of the increase in the length of the wastewater mains by approximately 690 metres an expansion of Ainley & Associates Limited s assignment is required. Based on a pro-rated length of the originally proposed wastewater main Ainley & Associates Limited has requested an increase to the upset limit of $58,000 to $151,000 (plus H.S.T.). The additional funds are reasonable and competitive and accordingly, it is recommended that the upset limit to the Ainley & Associates Limited assignment be increased to $151,000 (plus H.S.T.). 5

6 FINANCIAL/PROGRAM IMPLICATIONS The current project budget approved for the water and wastewater main (W2728B and S3016A) is $3,524,000. Based on the reasons outlined above, an additional $9,370,000 is required to complete the work. Accordingly, it is recommended that the project budgets for W2728B and S3016A be increased from $3,524,000 to $12,894,000 as set out in Attachments #1 and #2. As outlined above, the total additional funding required for the water and wastewater mains described in Report PW is $9,370,000. Of the $9,370,000, $6,769,000 will be financed from the residential development charges and $2,601,000 will be interim financed by Halton Region using the Capital Investment Revolving Fund (Revolving Fund) for the non-residential development share of the project. Halton Region will recover this interim financing, including any carrying cost, from future development charges. As approved by Council through the Financing Plan Framework (CS-20-12), the projects required will be financed consistent with the 2012 Allocation Program. Respectfully submitted, Tim Dennis P. Eng. Director, Engineering and Construction Jim Harnum Commissioner, Public Works Approved by Jane MacCaskill Chief Administrative Officer If you have any questions on the content of this report, please contact: Tim Dennis Tel. # 7775 Chris Ewen Tel. # 7141 Joe Proietti Tel. # 7613 Attachments: Attachment #1 Revised Capital Budget & Financing Plan W2728B Attachment #2 Revised Capital Budget & Financing Plan S3016A Attachment #3 Map Attachment 6