STAFF REPORT

October 20, 1999

To: Works Committee

From: Barry H. Gutteridge, Commissioner, Works and Emergency Services

Subject: Prince Edward Viaduct - Don Section

Structure Modification, Contract No. T-71-99, Tender Call No. 222-1999

(Midtown - Don River)

Purpose:

The purpose of this report is to advise of the results of the Tender issued for the installation of a suicide prevention barrier on the Prince Edward (Bloor Street) Viaduct, in accordance with specifications as required by the Works and Emergency Services Department.

Financial Implications and Impact Statement:

Council has previously approved an expenditure of $2.5 million. Acceptance of the low bid would require an additional expenditure in excess of $3.0 million, but no funds are allocated for the additional expenditure. Other options presented in this report would be within the original approved amount of $2.5 million. The Chief Financial Officer and Treasurer has reviewed this report and concurs with the financial impact statement.

Recommendations:

It is recommended that:

(1) Contract No. T-71-99, Tender Call No. 222-1999 for the installation of a safety fence on the Prince Edward Viaduct be cancelled;

(2) the Commissioner of Works and Emergency Services be authorized to issue a new Request for Proposals with a maximum budget of $2.5 million, to solicit new design concepts and full engineering services for this project, based on a design/build concept, with the submission being evaluated by a similar Project Steering Committee comprised of representatives from:

(a) the Schizophrenia Society of Ontario

(b) the Council on Suicide Preventions

(c) the Toronto Historical Board/Heritage Toronto

(d) Architecture and Civic Improvements, City Planning

(e) the Public Art Policy Advisory Committee; and

(f) the Technical Services Division, Works and Emergency Services Department;

(7) the appropriate City of Toronto officials be directed to take the necessary action to give effect thereto.

Council Reference:

The Bid Committee at its meeting held on October 6, 1999, opened the following tenders for Contract No. T-71-99, for the structure modification and the installation of a safety fence on the Prince Edward Viaduct - Don Section:

Price Complete

Including all

Tenderer: Charges and Taxes

Bridgecon Construction Ltd. $5,558,405.92

Grascan Construction Ltd. $7,029,900.00

G. Tari Limited $8,325,873.84

The Tender submitted by G. Tari Limited contained minor errors in the extension of the unit prices. The revised figure is shown above.

Background:

On July 8, 9 and 10, 1998, Council adopted Report No. 8 of the Urban Environment and Development Committee (UEDC), Clause No. 2, and authorized the Works and Emergency Services Department (WES) to solicit proposals for design concepts and full architectural services for the installation of safety barriers on the Viaduct with a budget set at $1.5 million. The amount of $1.5 million was included in the terms of reference informing competitors of the parameters of the project.

On October 1 and 2, 1998, Council adopted Report No. 11 of UEDC, Clause No. 1, recommending the preferred design by Dereck Revington Studios/Yolles Partnership be adopted and that they be retained to prepare the detailed design and tender documents and to provide project management and site supervision services.

Subsequent to Council's endorsement of the design, it was apparent that the design as selected, could not be constructed within the original budgeted amount of $1.5 million.

On May 11, 12 and 13, 1999, Council adopted the recommendation of the UEDC (Report No. 7, Clause No. 2) which directed the WES to proceed with the design by Dereck Revington Studios/Yolles Partnership, to prepare the detailed design and tender documents for the construction and to increase the funding for the project by $1.0 million to $2.5 million.

Comments:

On October 6, 1999, the Bid Committee opened the tenders, as stated previously in this report. The low bid price was $5,558,405.92, more than three times the original budget of $1.5 million and more than double the revised budget of $2.5 million.

Dereck Revington Studios/Yolles Partnership and their cost consultant, Vermeulens, are of the opinion as stated in the attached letter (Attachment No.1), that the tenders are too high for the value of the work indicated and reflect the high levels of risk associated with the project and current market conditions, rather than the underlying cost and scope of work.

In the attached letter, the consultant outlined a proposed course of action. City staff are not in agreement with the proposal mainly because it does not provide the assurances that the project would be completed within the available budget. Should Council decide to proceed with the option of a "test panel", any procurement must be in accordance with the Purchasing Department's procedures.

At present, an amount of $1.5 million is included in the approved WES 1999 Capital Works Programme under Capital Account TR029, Don Valley Parkway Rehabilitation. The source of the additional funding is yet to be identified.

There are five possible alternatives for this project:

(1) proceed with the construction of the suicide prevention barrier in the amount of $5,558,405.92;

(2) retain the design by Dereck Revington Studios/Yolles Partnership and retender the construction utilizing a modified procurement process, including the erection of a "test" section to refine cost projections, prior to proceeding with the balance of construction. Expenditures in excess of $2.5 million would still require further allocation of funds.

(3) as an interim measure, install a chain link fence at a cost of approximately $800,000.00,until such time as the final barrier is installed;

(4) terminate work on the design by Dereck Revington Studios/Yolles Partnership and initiate a new design competition, based on the design/build concept; or

(5) terminate work on the design by Dereck Revington Studios/Yolles Partnership and construct a basic barrier at a cost of approximately $2.0 million.

Option 3 could be implemented by late winter/early spring of 2000. The timelines for Options 1, 2, 4 and 5 are all of a similar duration and would result in scheduled completion in late summer/early fall of 2000.

This matter was discussed with the Project Steering Committee at a meeting on October 19, 1999. The Committee is strongly in favour of Option 2 and has reached a consensus as follows:

(1) we do not recommend a second design competition;

(2) we accept the analysis of the tenders provided by Vermeulens Cost Consultants, that market conditions, overhead/access costs and perceived risk have inflated the bids;

(3) we recommend immediate installation of a temporary barrier and 4 payphones with appropriate Distress Centre signage;

(4) we recommend staff and Revington/Yolles negotiate with the lowest bidder to reduce the bid;

(5) we recommend a sample bay (approximately 6.4 metres) of the winning Revington/Yolles barrier be constructed to determine more accurately the cost and reduce the perceived risk;

(6) the Project Steering Committee supports a "design build" process to reduce costs and perceived risk of the winning design; and

(7) we recommend the City seek private sector sponsorships to offset increased costs of construction and complete the Revington/Yolles barrier.

Should the recommendation to proceed with a new Request for Proposal (RFP) be adopted, WES will proceed immediately to reorganize the Project Steering Committee to fast-track the process. Such process will follow closely in line with the previous RFP procedure with a strong emphasis on the budget amount of $2.5 million. In order to ensure the budget is not exceeded, the work would be tendered as a design/build assignment.

As directed by Council in the May 11, 1998 UEDC, Report No. 7, Clause No. 2, WES staff have had several discussions with Bell Canada and Toronto Hydro regarding the installation of 4 payphones on the approaches of the bridge. Cost estimates from Bell and Toronto Hydro to install the two telephone lines and power supply at the southeast and southwest corners of the bridge are in the order of $15,000.00. A work order for this work has already been issued and we expect completion of the work within 4-6 weeks. Installation of the telephone lines at the northeast and northwest corners of the bridge is more problematic and they are currently assessing the feasibility and cost to install these lines. As the cost of the installation of these two telephones is expected to be substantially higher, we will report to the Works Committee again once the investigation is completed.

On September 8, 1999, a meeting of the telephone sub-committee was held on the site to discuss and finalize the locations and proposed signage to complement the telephones. The signage shall include the telephone numbers of the Distress Centre.

Conclusions:

This report requests authority to cancel Contract No. T-71-99, Tender Call No. 222-1999, for the installation of a safety fence on the Prince Edward Viaduct and also to issue a new RFP for a new design concept for the project.

Contact:

W. (Bill) G. Crowther, P.Eng.

Director, Works Facilities and Structures

Technical Services Division

Tel. (416)392-8256

Fax (416)392-4594

E-mail: william_g._crowther@metrodesk.metrotor.on.ca

Tom G. Denes, P.Eng.

Executive Director, Technical Services

Barry H. Gutteridge

Commissioner, Works and Emergency Services

WC/fh

List of Attachments:

No. 1 Vermeulens letter dated October 20, 1999