Contract No. T-42-98 - Don Valley Parkway

Resurfacing at Two Locations

The Strategic Policies and Priorities Committee recommends that:

(1)Contract No. T-42-98 for the resurfacing on the Don Valley Parkway at two locations be awarded to Warren Bitulithic Limited, who submitted the lowest price bid in the amount of $2,554,897.17, conditional upon Warren Bitulithic Limited accepting payment for this work in 1999;

(2)funds for this project be charged to the 1999 Capital Transportation Program Budget; and

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

The Strategic Policies and Priorities Committee submits the following transmittal letter (June26, 1998) from the Budget Committee:

Recommendations:

The Budget Committee on June 25, 1998, recommended to the Strategic Policies and Priorities Committee, and Council:

(1)the approval of Contract No. T-42-98 for the resurfacing on the Don Valley Parkway at two locations, conditional upon the lowest bidder accepting payment for this work in 1999;

(2)that funds for this project be charged to the 1999 Capital Transportation Program Budget; and

(3)that the appropriate City officials be directed to take the necessary action to give effect thereto.

Background:

The Budget Committee on June 25, 1998, had before it the following:

(a)communication (March 30, 1998) from Councillor Joe Pantalone;

(b)communication (June 15, 1998) from the Interim Functional Lead, Transportation, addressed to the Chair, Urban Environment and Development Committee; and

(c)a transmittal letter (May 15, 1998) from the Strategic Policies and Priorities Committee referring the transmittal letter (April 22, 1998) from the Urban Environment and Development Committee, to the Budget Committee with a request that it report back to Council with its report on the $9.1 million Capital Projects.

Councillor Pantalone, Trinity-Niagara, Chair of the Urban Environment and Development Committee, appeared before the Budget Committee in connection with the foregoing matter.

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(Communication dated March 30, 1998 addressed to theBudget Committee from Councillor Joe Pantalone, Chair of the Urban Environment and Development Committee)

I am writing to request an opportunity to address the Committee regarding Contract Number T-42-98.

At a previous meeting, the Urban Environment and Development Committee approved this and requested it be considered by Toronto City Council. Budget Committee's deferral means a de facto decision has been taken that work will not occur this year since the construction period will have lapsed. It was the intention of the Urban Environment and Development Committee that the matter be dealt with by Council in timely fashion. I therefore respectfully request this item be considered and forwarded to Council for its July 8th meeting.

Thank you for your attention to this matter.

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(Communication dated June 15, 1998 addressed toCouncillor Joe Pantalone from the Interim Functional Lead of Transportation Services Division, Works & Emergency Services)

This project was tendered prior to budget approval, on the assumption that the 1998 Transportation Capital Works Budget would be approved at a level similar to the 1997 budget. However, the approved Transportation Capital Works Budget does not include this project. The "low bidder", Warren Bitulithic Limited, has indicated that they are willing to proceed with this project and be paid at a later date. This could occur next year as part of the 1999 Capital Works Programme or later in 1998, if funds become available from the sale of property assets.

At its meeting on May 26th, 1998, the Budget Committee deferred consideration of the above item until September 1998. If the Budget Committee does not deal with this item until that date, it will be too late to complete this resurfacing project in 1998.

If there is still interest in accepting the contractor's proposal to do this work in 1998, then it would be essential to adopt the following Committee Schedule:

This preferred schedule would enable the contract to commence on September 14th, 1998 and be completed by October 5th, 1998. In addition, the two month lead time will allow the contractor to take delivery of the required materials and allow consultation with stakeholders affected by the revised closure dates on the Don Valley Parkway.

If the schedule is not adopted, then it will be impossible to complete the work during this construction season.

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(Transmittal Letter dated May 15, 1998, addressed to theBudget Committee from theStrategic Policies and Priorities Committee)

On May 5, 1998, the Strategic Policies and Priorities Committee had before it a transmittal letter (April 22, 1998) from the Urban Environment and Development Committee recommending to the Strategic Policies and Priorities Committee, and Council, the adoption of the following Recommendations Nos. (1), (2) and (3), contained in the report (April 9, 1998) from the Interim Functional Lead, Transportation, regarding Contract No. T-42-98 for the resurfacing of the Don Valley Parkway at two locations:

(1)pre-budget approval of $2,700,000.00 be granted for the 1999 Capital Works Program or, alternatively, that funds be provided from the sale of property assets as outlined in this report;

(2)subject to approval of Recommendation No. (1), Contract No. T-42-98, for the resurfacing on the Don Valley Parkway at two locations, be awarded to Warren Bitulithic Limited who submitted the lowest price bid in the amount of $2,554,897.17; and

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

The Strategic Policies and Priorities Committee referred the transmittal letter (April 22, 1998) from the Urban Environment and Development Committee to the Budget Committee with the request that it report back to Council with its report on the $9.1 million Capital Project.

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(Transmittal Letter dated April 22, 1998, addressed to theStrategic Policies and Priorities Committee from theUrban Environment and Development Committee)

Recommendation:

The Urban Environment and Development Committee on April 20, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of Recommendations Nos.(1), (2) and (3), embodied in the attached report (April9, 1998) from the Interim Functional Lead, Transportation, regarding Contract No. T-42-98 for the resurfacing of the Don Valley Parkway at two locations.

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(Report dated April 9, 1998, addressed to the Urban Environment and Development Committee from theInterim Functional Lead, Transportation)

Purpose:

To seek early approval to allocate $2,700,000.00 from either the 1999 Capital Works Program or from the proceeds from the sale of property assets in 1998 and to award a contract for the resurfacing of the Don Valley Parkway at two locations.

Funding Source:

The total project cost is estimated to be $2,700,000.00 and is summarized as follows:

(1)Bid Price Amount $2,554,897.17

(2)Other costs (estimate):145,102.83

(a)quality control testing;

(b)traffic signage and road closures; and

(c)bicycle proof catch basin frames and covers.

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Total project cost $2,700,000.00

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Resurfacing and rehabilitation work on the Don Valley Parkway has traditionally been carried out early in the construction year to minimize disruption to the travelling public during the summer tourist season. Consequently, this project was tendered prior to budget approval, on the assumption that the 1998 Transportation Capital Works Budget would be approved at a level similar to the 1997 budget. However, based on the recommendations of the Budget Committee, the Transportation Capital Works Budget for the City of Toronto, which is scheduled to be approved by Council at its meeting on April 28, 1998, now does not include this project.

An unusual situation has arisen in which the "low bidder", Warren Bitulithic Limited, has indicated that it is willing to proceed with this project and be paid at a later date. This could occur next year as part of the 1999 Capital Works Program or later in 1998, if funds become available from the sale of property assets. This was proposed by the Budget Committee in order to provide funds for works which have had to be deferred as a result of the Budget Committee's recommendations to delete $18.4 million from the Capital Budget submission. Warren Bitulithic Limited has confirmed in writing that it will conform with all of the conditions in the original tender documents and that it will not seek any compensation for "late" payment. This proposal by Warren Bitulithic Limited does not violate the integrity of the "tender and award" process.

The Department is recommending that the proposal from Warren Bitulithic Limited be accepted because it is important to resurface and repair the drainage system for this section of the DonValleyParkway in 1998 for the following reasons:

(1)previous experience with the performance of the existing steel slag surface asphalt indicates that accelerated deterioration may occur during the next winter season. This situation would require unscheduled closures of the Don Valley Parkway to undertake emergency repairs; and

(2)the existing drainage facilities in their current state of disrepair are capable of being rehabilitated insitu with little or no disruption to the users of the Don Valley Parkway. Further deterioration may lead to open cut replacement of these facilities at a significantly higher cost and requiring additional closures of the Don Valley Parkway.

Funding is currently available in Capital Account No. C-TR029, Don Valley Parkway Rehabilitation. The Treasurer certifies that financing can be provided under the updated Debt and Financial Obligation Limit and that it falls within Corporate Debt Guidelines.

Recommendations:

It is recommended that:

(1)pre-budget approval of $2,700,000.00 be granted for the 1999 Capital Works Program or, alternatively, that funds be provided from the sale of property assets as outlined in this report;

(2)subject to approval of Recommendation No. (1), Contract No. T-42-98, for the resurfacing on the Don Valley Parkway at two locations, be awarded to Warren Bitulithic Limited who submitted the lowest price bid in the amount of $2,554,897.17;

(3)the appropriate City of Toronto officials be directed to take the necessary action to give effect thereto; and

(4)this report be forwarded to the Budget Committee.

Comments:

On March 5, 1998, the City Clerk's Department opened tenders for:

Contract No. T-42-98 -Don Valley Parkway Resurfacing at Two Locations

NumberName$ Amount

5Warren Bitulithic Limited2,554,897.17

1D. Crupi and Sons Limited2,569,306.89

6Dufferin Construction Company, 2,611,639.95

a division of St. Lawrence Cement Inc.

7Pave-Al Limited and Orlando Corporation2,613,676.89

4Graham Bros. Construction Ltd., Fairglen Excavating Ltd.,2,729,506.91

795208 Ontario Ltd., Graham Bros. Aggregate Ltd.

3Gazzola Paving Limited2,898,044.82

2Brennan Paving and Construction Limited2,921,347.98

The award is subject to receipt of a favourable report from the Fair Wage and Labour Trades Office regarding working conditions and wages of the recommended contractor and his sub-contractors, andalso from the Treasurer regarding the surety company which issued the Bid Bond and Agreement to Bond.

Scope of Work:

The work in this contract comprises the asphalt resurfacing of the Don Valley Parkway including the rehabilitation and/or replacement of catch basin connections, replacement of guiderail and attenuation systems and permanent pavement markings at the following locations:

(1)southbound from Don Mills Road to Beechwood Drive; and

(2)Don Mills Road ramps.

Conclusion:

Subject to City Council approving $2,700,000.00 for the 1999 Capital Works Program, Contract No.T-42-98 should be awarded to Warren Bitulithic Limited which submitted the lowest price bid for this Contract.

Contact Name and Telephone Number:

Mr. R. Burlie, P. Eng., Manager of Resurfacing, Metro Hall Office, 392-8322.