Item - 2009.PW25.6

The Public Works and Infrastructure Committee recommends that:

1.         City Council grant authority for funds in the amount of $21,280,410.00 net of GST to be reallocated to CPW029-04  Milliken Reservoir Ext-Construction from CPW018-4 - Plant Winterization & Summerization, CPW039-06 - Business & Tech. Improvements, CPW052-01- Pumping Equipment, CPW059-04 - Gerrard St WM – Construction, CPW067-02 - Switchgears - Phase 2 Construction and CPW532-02 - Automated Meter Reading System, as indicated in the table contained in the Financial Impact section of this report.

2.         Subject to the approval of Recommendation 1 above, award Contract 09FS-42WS, Tender Call 59-2009, for the Milliken Pumping Station and Reservoir Expansion to Bondfield Construction Company Limited, in the amount of $89,652,666.67, net of GST, having submitted the lowest bid meeting specifications in conformance with the Tender requirements.

3.         City Council grant authority to amend Purchase Order No. 6024199 professional services with Associated Engineering (Ontario) Ltd. for provision of general office administration and site supervision services during construction by an additional amount of $510,900.00 net of GST, for a revised total of $2,210,900.00 net of GST, and extend the purchase order expiry date to December 31, 2013.

The purpose of this report is to advise on the results of the Tender Call 59-2009 issued for the Milliken Pumping Station and Reservoir Expansion in accordance with specifications and drawings as required by Technical Services; to request authority to award a contract to the recommended bidder; and to amend the purchase order for professional engineering services with Associated Engineering (Ontario) Ltd.  

The total construction contract award identified in this report is $94,135,300.00 including all applicable taxes, charges and contingency allowances.  The total purchase order amendment identified in this report is $510,900.00 net of GST.

The total value of the contract award and purchase order amendment identified in this report is $94,671,745.00, including all applicable taxes and charges.  The cost to the City, net of GST is $90,163,566.67.

There is insufficient funding currently available in WBS Element CPW029 – Water Storage Expansion for the contract award of $89,652,666.67, the purchase order amendment of $510,900.00 and approximately $5,000,000.00 for additional permits, charges and fees for construction.  As a result, reallocation of funding from approved projects in the 2009 Toronto Water Capital Budget and 2010-2013 Capital Plan is required. 

The following Table summarizes the cash flow requirements, for the contract award and purchase order amendments identified in this report, by year:

In accordance with the agreement with the Regional Municipality of York (York) dated March 1, 2005 - Contribution to Cost Sharing Facilities Schedule B2, York’s contribution to the construction contract will be $ 32,999,714.29, net of GST. The City of Toronto’s financial commitment to this component of the project will be $56,652,952.38, net of GST.

The high level (+/- 30%) engineers’ estimate of probable cost developed in June 2008, at the time that the 2009 Toronto Water capital budget cycle was initiated, for this construction project was $74,400,000 net of GST. The price of the recommended tender is within this high level range.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.