ADMINISTRATIVE REPORT

Date: July 12, 2000
Author/Local: M. Marchand/C. Hosein 7851 / 7616

RTS No. 01578

CC File No. 1805

Council: July 25, 2000

TO:	Vancouver City Council
FROM:	Director, Facilities Development
SUBJECT:	New Continental Residence - 1067 Seymour Street - Building Envelope Restoration

RECOMMENDATION

A. THAT Council agree to receive from BC Housing the additional contributions estimated at a maximum of $1,956,000 toward repairs related to water penetration at 1067 Seymour Street.

B. THAT the contract for the repair work be awarded to Heatherbrae Construction Company Ltd. up to a maximum amount of $2,293,880 plus GST; source of funding to be as set out in this report. The contract shall not be executed until the required amount of BC Housing funding is confirmed.

GENERAL MANAGERS' COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of A and B.

POLICY

· Council approval is required for contracts over $300,000.

· Contracts are to be awarded on the basis of best value for the City.

PURPOSE

The purpose of this report is to request Council's approval to award a contract for the building envelope restoration of the New Continental Residence, 1067 Seymour Street, to Heatherbrae Construction Company Ltd.

BACKGROUND

The New Continental Residence is a City of Vancouver Housing Corporation owned, 110-unit non-market facility located at 1067 Seymour Street. It was constructed in 1991 in accordance with BC Housing Standards of the time, which set out a maximum unit price for each suite and methods of construction. The building is a 15-storey concrete frame structure over three levels of underground parking; a two-storey brick street wall forms a podium for the residential tower which was clad with an Exterior Insulation and Finish System (EIFS). Investigations for the Strategic Plan identified moisture problems beginning to appear in 1998.

In October 1999 Council agreed to receive $858,000 from BC Housing towards the repairs related to water penetration, the remaining funding for the repair of the cladding was to be received by BC Housing from CMHC. No implementation was to commence until the federal funds were in place. Council also appointed Read Jones Christoffersen Ltd. as prime consultants in the amount of $188,200 plus GST for the design work associated with the building envelope restoration.

DISCUSSION

After a detailed review of the condition of the cladding the consultant recommended that all the EIFS and insulation be stripped from the building and replaced with new insulation and rainscreen cladding. Various options were reviewed and costed. A combination of metal panels and metal cladding was selected.

Additionally, several of the roofs have been leaking and many are nearing the end of their useful life. All roofs above the third floor are being reroofed within this contract.

From an open request of expressions of interest for prequalification of general contractors, five contractors were prequalified to submit tenders for the project. Complete tenders were received from two contractors. As the bids were identical, and the project overbudget, the tenderers reviewed several changes of scope and submitted post-tender prices for the proposed deletions.

Contractor	Base Bid	Accepted Deletions	Revised Bid
Haebler Construction Ltd.	$2,580,000	($206,000)	$2,374,000
Heatherbrae Construction Company Ltd.	$2,580,000	($286,120)	$2,293,880

On the basis of best value it is recommended the contract be awarded to Heatherbrae Construction Company Ltd., the low bidder, up to a maximum amount of $2,293,880 plus GST. A potential option for further reducing the price by up to $43,000 is being considered and will be resolved prior to finalizing the contract price.

Funding for the project will be as follows:

BC Housing	$958,000
Replacement Reserve Funds (BC Housing)	120,000
Reroofing Budget (2000 Basic Capital)	50,000
CMHC to BC Housing	1,856,000
Total Project (Hard and Soft)	$2,984,000

Heatherbrae Construction Company Ltd. met all the requirements of the tender documents.

The contract value is within the amount originally budgeted for this portion of the project.

All tenderers have been advised of this recommendation.

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(c) 1998 City of Vancouver