November 17, 1998

TO:Works & Utilities Committee

FROM:Commissioner of Works and Emergency Services

Chief Financial Officer and Treasurer

SUBJECT:Headhouse Improvements at the Highland Creek Treatment Plant

Contract MW9802WP

Ward: East Toronto

Purpose:

To award Contract MW9802WP for the construction of Headhouse Improvements at the Highland Creek Treatment Plant, in accordance with specifications of the Works and Emergency Services Department and to amend the consulting engineering agreement to adjust the fee schedule for general administration and site services during construction reflecting the longer construction period tendered.

Funding Sources:

This project is included in the approved "1998-2002 Water and Wastewater Services Division Capital Works Program" and funds are available in the Highland Creek Treatment Plant, Stage IV capital account.

Recommendations:

It is recommended that:

(1) contract MW9802WP for the construction of Headhouse Improvements at the Highland Creek Treatment Plant be awarded to the lowest tenderer, W.A. Stephenson Mechanical Contractors Limited, for the Total Lump Sum Price of $2,919,000.00, including all taxes and charges; and

(2) authority be granted to amend the existing engineering services agreement with the consulting firm of Simcoe Engineering Group Limited for general administration and site services during construction by an additional amount of $113,220.00, including GST, and a contingency allowance of $19,980.00 to cover extended services during construction at a rate not to exceed $3,330.00 per week including GST, if necessary and as authorized by the Commissioner of Works and Emergency Services, all in accordance with the terms of the existing engineering agreement.

Background:

On October 21, 1998, the Bid Committee opened the following tenders for Contract MW9802WP for the construction of Headhouse Improvements at the Highland Creek Treatment Plant:

Comments, Discussion and Justification:

Representatives of the Works and Emergency Services Department and the consultants having met with the lowest tenderer, W.A. Stephenson Mechanical Contractors Limited (Stephenson) to review the contract, are satisfied that this company fully understands the contractual requirements and has the capability to carry out the work as specified. Stephenson has successfully carried out similar work for the Works and Emergency Services Department in the past.

The tenders submitted by the first, second and fourth tenderers, offered credits to the tendered lump sum price for the same alternative, proposing different pumping equipment. The alternative does not impact on the ranking of the tenders and, therefore, Stephenson's alternative will be reviewed in detail after contract award and if found acceptable will reduce the tendered Lump Sum Price of the contract by $28,000.00.

The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended and its proposed subcontractors.

On August 14 and 15, 1996, Metropolitan Council adopted Clause No. 11 of Report No. 13 of the Environment and Public Space Committee, authorizing the engagement of the consulting firm of Simcoe Engineering Group Limited for engineering design and construction services at a total cost of $224,402.00, including GST. This total included an amount for engineering construction services of $145,146.00, based on an assumed construction period of 30 weeks and a provision for extension of services during construction, if necessary, not to exceed a rate of $3,780.00 per week.

As the design of the project developed through the pre-design and final design stages with direct input from the Works and Emergency Services wastewater division, design improvements recognized as beneficial to both the project and to the health and safety of the operating and maintenance staff were added to the scope of the work. Some of the major improvements included:

the provision of a "dry" pumping system for the grit slurry, in lieu of "submersible" pumps;

the provision of an improved ventilation system in the building, requiring the implementation of a new separate foul air system to control potential hazardous gases and odours;

the provision of separate extensive operational testing and start-up periods for various components of the project to ensure trouble-free operation, as functioning of these components critically affects the continuous treatment operation of the plant. The operational periods of some components were specified as a minimum of 14 days, while others required a minimum of 21 days, prior to allowing work to proceed on other components. The operational trouble-free period for the whole grit and screening collection system was specified for a period of 6 months, before allowing the final modifications to the overhead crane and removal of the clam shell bucket, which ultimately becomes redundant.

The inclusion of these improvements to the project resulted in a longer tendered contract completion time than originally anticipated prior to commencement of design. Stephenson's tender indicated a 90 week completion period. We estimate that, of this period, 64 weeks would require full time contract administration and site supervision, representing a 34 week increase of engineering services during construction, as compared to the original 30 week period.

It is proposed to extend the fee limit at a reduced rate of $3,330.00 per week including GST, for 34 weeks, for a total of $113,220.00 and to establish a contingency allowance for an extra period of 6 weeks at the same weekly rate totaling $19,980.00. The upset limit for engineering services during construction is therefore revised to $278,346.00, including GST.

This contract provides for improvements to the grit and screenings collection and processing system of the Headhouse facilities at the Highland Creek Treatment Plant. On contract completion, a continuous automatic collection of grit and screenings will be implemented, with minimal operator attendance, greater capture of rags, grit and other non-organic materials, improving the performance of the downstream process. Occupational health and safety aspects will also be improved by enhancements to the ventilation and foul air system, enabling the working area of the building to be classified as non-hazardous.

Conclusion:

This report requests authority to:

issue a contract for the construction of Headhouse Improvements at the Highland Creek Treatment Plant, to the lowest tenderer, W.A Stephenson Mechanical Contractors Limited; and

amend the engineering services agreement with Simcoe Engineering Group Limited to increase general administration and site services during construction to an upset fee limit of $278,346.00, including GST and a contingency allowance of $19,980.00, for extension of services, if necessary.

Contact Name:Contact Name:

Mr. A.F. Piccolo, P.Eng., Mr. L.A. Pagano

Senior Project Engineer, Technical Services Division Director

Telephone No.: (416) 392-8853Purchasing and Materials

Management

Telephone No.: (416) 392-7312

T.G. Denes, P.Eng

Executive Director

Technical Services

B.H. GutteridgeW. Liczyk

Commissioner of Works and Emergency ServicesChief Financial Officer and Treasurer

AFP/ph 1020.50-42