REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE

Transcription

1 June 7, 2017 REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT ON NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE PURPOSE To seek Council s authorization to utilize up to $750,000 from sanitary sewer utility reserves to cover additional funding required on the North Primary Sanitary Gravity Main Upgrade construction contract. This approval was part of the original tender award, which was brought to Council in December 2016 with the expectation that the additional costs would be in the range of $600,000 to $800,000. COUNCIL STRATEGIC PLAN This report supports Council s goals and objectives regarding: Infrastructure - invest in the long-term financial stability of our assets and improve the overall infrastructure standards of the City by assessing the service life of our buried utilities and replacing them when required to minimize service level disruptions. Livability - ensure Kamloops maintains a high quality of life while meeting the challenge of a growing community by continually investing in our utilities. SUMMARY In 2013 and 2014, the City hired a contractor to use closed-circuit television and sonar to assess the condition of the Tranquille Road sanitary gravity main from the North Primary Lift Station to 12th Street. The assessment was used to prioritize three phases of the gravity main replacement project. Phase 1 - North Primary Lift Station to Crestline Street was determined to be the priority. The Capital Projects and Engineering Divisions became aware of a number of challenges expected during the construction of this project during the preparation of the north primary sanitary gravity main project tender documents and while liaising with various stakeholders, including the Kamloops Airport Authority Society (KAAS), Suncor Energy, Kinder Morgan, the Provincial Deputy Inspector of Dikes, Nav Canada, Transport Canada, and the BC Trucking Association. For example, a construction window restriction imposed by the Provincial Deputy Inspector of Dikes and the potential impact of the river levels on the deep excavation adjacent to the riverbank meant that construction of the project needed to start in the winter or be potentially delayed until the following fall. Due to the critical nature of the infrastructure, staff decided to tender the project knowing that challenges still needed to be resolved. Furthermore, during the pre-tender planning stages, it was very clear that working airside on airport land would be extremely challenging and that the contractor would not be in control of the schedule or work. For this reason, a phase of the project was pulled from the tender and redesigned to be outside of airport land. S:\DCS\Jobs (c3)\277294_gravity Main Upgrade_REP\277295_Gravity Main Upgrade_REP.docx

2 NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE June 7, 2017 Page 2 Other challenges resulting from working in close proximity to the airport included the need to create a plan of construction operation (PCO) document. The PCO document, which is part of the airport certification process, describes the mitigation measures that need to be taken or applied during airside construction. Mitigation measures included airside work such as relocating essential airport equipment and specialist security to oversee the project. The KAAS required the contractor to provide additional aviation insurance and to construct a detour road to maintain 24/7 access to Nav Canada, which provides essential services to the province of British Columbia. The work was tendered in November 2016, and the construction contract was awarded to Extreme Excavating Ltd. in the amount of $3.373 million in December The December 8, 2016, Council report for the award of the contract, noted that staff would be bringing a report to Council requesting additional funding once the costs of the challenges were known. The additional funding was expected to be in the range of $600,000-$800,000. The report for the contract award that was presented to Council on December 16, 2016, is shown as Attachment A. The work is progressing on schedule, is approximately 60% complete, and is expected to be complete before the end of the year. The project currently has funds, but additional funding will be required to complete the project. The following table provides a summary of the additional required funding: Challenge Associated Cost Additional costs associated with working within the airport $450,000 Additional engineering and contract administrative time required for redesign Additional contingency required to complete a project in close proximity to the airport, which is not yet complete 50, ,000 Total $750,000 RECOMMENDATION: That Council authorize: a) transferring $750,000 from sanitary sewer utility reserves to the North Primary Sanitary Gravity Main Upgrade construction contract b) the Finance Director to update the Financial Plan accordingly COUNCIL POLICY There is no applicable Council policy. S:\DCS\Jobs (c3)\277294_gravity Main Upgrade_REP\277295_Gravity Main Upgrade_REP.docx

3 NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE June 7, 2017 Page 3 PERSONNEL IMPLICATIONS The project will be administered by Public Works and Utilities Department staff. COMMUNICATIONS PLAN The City s Communications and Community Engagement team has implemented a detailed communication plan to engage stakeholders and the community. Residents and business owners directly impacted by the construction have been notified, and updates will be provided on the City s website and through social media throughout the construction period. J. Fretz, P.Eng. Public Works and Utilities Director Concurrence: K. Humphrey, CPA, CA, Finance Director Author: D. Crundwell, P.Eng., Capital Projects Manager Approved for Council DC/ts/kjm S:\DCS\Jobs (c3)\277294_gravity Main Upgrade_REP\277295_Gravity Main Upgrade_REP.docx

4 Attachment "A" REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT ON NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE December 8, 2016 PURPOSE To seek Council s authorization to award the North Primary Sanitary Gravity Main Upgrade construction contract. COUNCIL STRATEGIC PLAN This report supports Council s goals and objectives regarding the following: Infrastructure - Invest in the long-term financial stability of the City s assets and improve the City s overall infrastructure standards Livability - Ensure that Kamloops maintains a high quality of life while meeting the challenge of a growing community SUMMARY In 2013 and 2014, the City hired a contractor to use CCTV and sonar to assess the condition of the Tranquille Road sanitary gravity main from the North Primary Lift Station to 12th Street. The City used the assessment results to prioritize three phases of the gravity main replacement project, based on the condition of the pipe, as follows: Phase 1 - North Primary Lift Station to Crestline Street Phase 2 - Ridgeview Terrace to 12th Street Phase 3 - Crestline Street to Ridgeview Terrace In December 2014, Council approved Phase 1 of the project with a budget of $4 million. A tender for this project was issued on November 7, 2016, and closed on December 2, Six tenders were received, ranging from $3,373,000 to $4,498,599, excluding GST. The lowest tender, submitted by Extreme Excavating Ltd., has been reviewed and was found to be compliant. The funding for the construction contract is within the current approved $4 million budget; however, additional work will need to be added to the contract and, due to the complexity of this project, staff recommend carrying a higher than normal construction contingency. These costs may exceed the funding approved in the current budget; therefore, staff will bring a report back to Council in early 2017 with this additional funding request, when the costs are known. S:\DCS\Jobs (c3)\258831_north Primary Gravity Main_REP\258832_North Primary Gravity Main_REP.docx

5 Attachment "A" NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE December 8, 2016 Page 2 RECOMMENDATION: That Council authorize awarding the North Primary Sanitary Gravity Main Upgrade construction contract to the lowest compliant tender, Extreme Excavating Ltd., in the amount $3,373,000, excluding GST, knowing that staff will bring a report back to Council requesting additional funding when those costs are known. COUNCIL POLICY In accordance with Council Policy No. GGA-13, Tendering - Awarding of Contracts, and Council Policy No. GGA-14, Tendering - Construction - General Policy, contracts greater than $800,000 require Council s approval. DISCUSSION The sanitary sewer gravity main from 12th Street to the North Primary Lift Station is a critical City asset. This gravity main is part of the network that conveys all wastewater from the north side of the Thompson River to the Kamloops Sewage Treatment Centre. Due to the age and critical nature of this asset, the City hired a contractor in 2013 and 2014 to use CCTV and sonar to assess the condition of the Tranquille Road sanitary gravity main from the North Primary Lift Station to 12th Street. The findings of the assessment gave staff accurate data to prioritize the repair/replacement of the pipe based on the defects noted during the inspection. Using this information, staff prioritized replacing the gravity main in three phases, as follows: Phase 1 - North Primary Lift Station to Crestline Street Phase 2 - Ridgeview Terrace to 12th Street Phase 3 - Crestline Street to Ridgeview Terrace In December 2014, Council approved Phase 1 of the project with a budget of $4 million. In July 2016, the Capital Projects Division began preparing the contract documents and liaising with the airport authority and other stakeholders, including Suncor Energy, Kinder Morgan, the Provincial Deputy Inspector of Dikes, Nav Canada, Transport Canada, and the BC Trucking Association. During this period, the Capital Projects Division encountered a number of unexpected challenges, including a potential construction window restriction imposed by the Provincial Deputy Inspector of Dikes, maintaining 24/7 access to essential services along Aviation Way, and coordinating construction with the Kamloops Airport operations. Coordinating construction around airport operations has resulted in the need to redesign a section of the project to limit airside work. The City will negotiate the work with the successful contractor, and the costs will be in addition to the requested work being awarded as part of this report to Council. Attachment A of this report includes the location of the project and the proposed force main that is currently in the detailed design process. S:\DCS\Jobs (c3)\258831_north Primary Gravity Main_REP\258832_North Primary Gravity Main_REP.docx

6 Attachment "A" NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE December 8, 2016 Page 3 Due to the complexity of the project and the known upcoming scope change, Administration anticipates needing additional funding during the construction period. The additional funding is expected to be in the range of $600,000-$800,000 and this request will be brought back to Council when the redesign is completed and the final costs have been negotiated. This project is well-aligned with the Clean and Wastewater Fund, and staff have initiated opportunities for grant funding. The outcome of the grant application is not expected to be known until March If grant funding is successful, costs for Phase 1 and Phase 2 may be covered by up to 83%. A tender for this project was issued on November 7, 2016, and closed on December 2, Six tenders were received, ranging from $3,373,000 to $4,498,599, excluding GST. The lowest tender was submitted by Extreme Excavating Ltd., and it was reviewed and found to be compliant. Subject to awarding the tender and executing the contract, work is expected to commence in January 2017, with substantial completion expected in December It is anticipated the actual work will take four months, but due to the depth of excavation, river levels, and construction window restrictions from the Provincial Deputy Inspector of Dikes, a longer substantial completion date was given. FINANCIAL IMPLICATIONS The tender prices were in the pre-construction cost estimate of $4 million and the budget available in the 2016 Financial Plan. The following tables show the projected project costs and available budgets: 2016 Budget North Primary Gravity Main Upgrade (912607) $3,750,000 Oversizing (912109) 300,000 Total Available Budget $4,050,000 Total Project Costs Design, Contract Administration, Project Management, Public Communication, and Contingency $677,000 Construction Contract - Extreme Excavating Ltd. 3,373,000 Total Project Costs, Including Contingency $4,050,000 PERSONNEL IMPLICATIONS The project will be administered by Public Works and Utilities Department staff. S:\DCS\Jobs (c3)\258831_north Primary Gravity Main_REP\258832_North Primary Gravity Main_REP.docx

7 Attachment "A" NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE December 8, 2016 Page 4 COMMUNICATIONS PLAN The City s Communications and Community Engagement team has met with a number of stakeholders to create a detailed communications plan to engage stakeholders and the community. Residents and business owners who will be directly impacted will be notified prior to construction commencing, and updates will be provided throughout the construction period on the City s website and through social media. J. Fretz, P.Eng. Public Works and Utilities Director Approved for Council Consideration: Concurrence: K. Humphrey, CPA, CA, Finance Director Author: R. Driedger, P.Eng., Capital Projects Supervisor RD/ts S:\DCS\Jobs (c3)\258831_north Primary Gravity Main_REP\258832_North Primary Gravity Main_REP.docx

8 NORTH PRIMARY SANITARY GRAVITY MAIN UPGRADE 200mm Airport High Density Fibre Telus 300mm City 200mm City TRANQUILLE RD. 350mm City Existing 900mm Proposed 1050mm Existing Force Mains 200mm Golf Course Proposed 150mm Force Main Reconnections CRESTLINE ST. 150mm Suncor Existing 900mm High Density Fibre Telus Airport 150mm 200mm Agriculture Canada 600mm Kinder Morgan Pipelines Suncor Pipeline Existing 900mm Agriculture Canada Intake North Primary Lift Station Airport Intake 300mm Airport Golf Course & Suncor Intakes Proposed 1050mm Attachment "A"