ADMINISTRATIVE REPORT

Date: July 7, 1998
Author/Local: M.Robertson 7321

CC File No. 1805

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Award of Contract No. 9711 - Construction of the Alberta Wheat Pool Roadway and Windermere Street Underpass

RECOMMENDATION

A. THAT Contract No. 9711 for the construction of the Alberta Wheat Pool Roadway and Windermere Street Underpass be awarded to the low tenderer, Matcon Excavating Ltd., in the amount $991,457.72, subject to a contract satisfactory to the Director of Legal Services and subject to finalization of an agreement for payment of the project costs by Cascadia Terminals, satisfactory to the General Manager of Engineering Services, Director of Finance and Director of Legal Services. No legal rights shall arise hereby and none shall arise until execution of the contract Agreement.

B. THAT the Director of Legal Services execute the contract on behalf of the City.

COUNCIL POLICY

Construction contracts over $200,000 are to be awarded by Council.

PURPOSE

The purpose of this report is to obtain Council approval to award Contract No. 9711 for the construction of the Alberta Wheat Pool Roadway and Windermere Street Underpass.

BACKGROUND

On November 5, 1996, Council approved recommendations allowing the Port Roadway Connector Project at McGill Street to proceed. As part of this project a new connection along the south edge of New Brighton Park, to the Alberta Wheat Pool (now Cascadia Terminals) was to be constructed. The existing connection has sections which are steep and difficult for vehicles to negoitate, and conflicts between Park users and vehicles accessing the Cascadia facility occur. Cascadia Terminals was to be responsible for the cost of this connection possibly through a Local Improvement.

On July 22, 1997, Council approved that the City enter into an agreement with Cascadia Terminals, formerly Alberta Wheat Pool, concerning the construction of an access roadway to be constructed on City owned land and maintained by the City. The cost of the roadway was to be borne by Cascadia Terminals through 15 annual payments. This agreement is presently being finalized, taking into account final estimates based on tendered amounts. Cascadia Terminals is to provide a Letter of Credit acceptable to the Director of Legal Services as security.

The roadway has been designed in consultation with the Board of Parks & Recreation and tenders were called for the construction of the roadway which includes an underpass at Windermere Street and additional Park parking areas..

CONSTRUCTION TENDERS

Tenders for Contract No. 9711 for the Alberta Wheat Pool Roadway and Windermere Street Underpass were opened on June 19, 1998 and referred to the General Manager of Engineering Services for tabulation. Besides the base tenders, an alternate wall design was submitted but was found not to meet the requirements of this contract.

All tenders have been checked for completeness and accuracy and any miscalculations or omissions have been corrected. A tabulation of the tender prices is shown below with the lowest tender based on the specified wall system underlined:

1. Matcon Excavating Ltd. $ 991,457.72
2. Jack Cewe Ltd. $1,032,691.00
3. Surespan Construction Ltd. $1,072,910.00
4. Imperial Paving Ltd. $1,073,670.00
5. Westpro Constructors Group Ltd. $1,095,502.00
6. Bel Contruction Ltd. $1,197,358.00
7. Delta Aggregates Ltd. $1,209,935.13
8. Terra Dynamics Inc. $1,367,444.67

The bids include 7% GST.

This project is separated into two parts. Part “A”of the work consists of the construction of the Windermere Street Underpass and retaining walls and associated work and is based on a lump sum tender price with unit prices for additions and deletions to the work. Each Contractor has submitted a total lump sum tender price including the GST for the work of Part “A”. The final cost of the Part “A” work may vary as a result of additions or deletions, or extra or “force account” work if required.

Part “B” of the work consists of the remaining roadway construction and is based on unit pricing of estimated quantities. Therefore the actual cost of the tender for Part “B” may vary according to the quantities measured during construction. As well, extra or “force account” work may also increase the cost of the Part “B” work.

It is recommended that Matcon Excavating Ltd. be awarded Contract No. 9711 on the basis of their low tender and their company’s experience with the type of work required. This company has several years experience in related bridge construction and road work, and their qualifications are considered adequate for this Contract.

FINANCIAL IMPLICATION

In the overall project for the Alberta Wheat Pool Roadway and Windermere Street Underpass, there will also be various costs incurred which are not included in the Contract. These will include work by City Forces such as street lighting, traffic signage, and sewer work; Engineering consultant and inspection fees; relocation, removal and replacement of trees; BC Hydro, BC Gas and BC Tel relocations; CP Rail flagging costs; and City overhead.

The total estimated cost for the project including the construction of Contract No. 9711, associated work by City Forces and others, City Overhead, and a contingency is $1,850,000.

Cascadia Terminals have agreed to pay all costs associated with the roadway and bridge up to the estimated cost including contingency totalling $1,760,000. The formal agreement finalizing this arrangement has not yet been signed and therefore the award of the contract is recommended for approval subject to this agreement being signed. (Recommendation A). The Board of Parks & Recreation will pay for costs associated with a parking lane estimated to cost $25,000. The Streets Capital account 12/01/0360/999 - McGill Overpass Loop Parking Lot will fund the parking lot at the west end of the project estimated to cost $65,000.

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(c) 1998 City of Vancouver