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2015-06-10_Agenda Packet--Dossier de l'ordre du jourCity of Saint John Common Council Meeting Wednesday, June 10, 2015 Location: Common Council Chamber 1. Contract No. 2015 -6 - Milford Sewer Separation Phase III 2. Contract No. 2014 -19 — Greenhead Road Station "X" — Wastewater Lift Station Upgrades 3. Contract No. 2015 -5 Sanitary Sewer Structural Lining - University Avenue 4. HST Engagement Review — Ryan ULC REPORT TO COMMON COUNCIL M &C2015 -114 June 3, 2015 His Worship Mayor Mel Norton and Members of Common Council Your Worship and Members of Council: SUBJECT: Contract No. 2015 -6 — Milford Sewer Separation Phase III BACKGROUND C3,01) The pity of saim john The approved 2015 General Fund and Water & Sewerage Utility Fund Capital Programs includes a project for the construction of new storm sewers and renewal of sanitary sewers in the Milford area. This phase of the project will include work on River Hill Drive, Russell Hill Road, Gifford Road, and Silvermount Crescent. TENDER RESULTS Tenders closed on June 3, 2015 with the following results: 1. Fairville Construction Ltd., Saint John, NB $1,817,346.80 2. TerraEx Inc., Saint John, NB $1,840,197.09 3. Galbraith Construction Ltd., Saint John, NB $1,924,631.82 The Engineer's estimate for the work was $ 2,235,000 ANALYSIS The tenders were reviewed by staff and all tenders were found to be formal in all respects with the exception of the tender from Debly Enterprises Limited where the revised schedule of quantities issued in the addendum was not submitted by the contractor with their tender. The Debly Enterprises Limited tender was rejected by the Tender Opening Committee in accordance with General Specifications Division 2 — Instructions to Tenderers and Tendering Procedures Item 2.8.03 h). The tender from TerraEx Inc. contained an arithmetic error that required correction in accordance with specification article 2.11 (s) (i). The corrected tender result is indicated above. Staff is of the opinion that the low Tenderer has the necessary resources and expertise to perform the work, and recommend acceptance of their tender. M & C 2015 -114 June 3. 2015 Page 2 FINANCIAL IMPLICATIONS The Contract includes work that is charged against the 2015 General Fund and Water & Sewerage Utility Fund Capital Programs. Assuming award of the Contract to the low tenderer, an analysis has been completed which includes the estimated amount of wnrk that will i,,- performed by the Contractor and Others. The analysis is as follows: Budget Project net cost Variance (surplus) $1,994,645 $1,789,555 $ 205,090 POLICY - TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. RECOMMENDATION It is recommended that Contract No. 2015 -6: Milford Sewer Separation - Phase III be aw=arded to the low Tenderer, Fairville Construction Ltd., at the tendered price of $1,817,346.80(including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. Respectfully submitted, 4-1 Landers, P.Eng. Municipal Engineer Wm. Edward�Engg. Commissioner Transportation and Environment Brian Keenan, P. Eng. Engineering Manager 1 trick Woods, CGA Manager REPORT TO COMMON COUNCIL M & C 2015 -115 June 9, 2015 His Worship Mayor Mel Norton and Members of Common Council Your Worship and Members of Council: SUBJECT: The City of Saint "n CONTRACT 2014 -19: GREENHEAD ROAD STATION `°X" - WASTEWATER LIFT STATION UPGRADES BACKGROUND The approved 2014 Water & Sewerage Utility Fund Capital Program includes funding for the construction of the Greenhead Road Station "X" — Wastewater Lift Station Upgrades project. The work generally involves the removal of the existing concrete cover over the lift station wet well and construction of a new cast -in -place reinforced concrete slab foundation at the same location, along with associated pipe work. In 2014 the City purchased a lift station package to replace the existing Greenhead Road Station "X" Lift Station (M &C 2014 -124). This contract also includes the installation of the packaged lift station. 0 1010 0 01 914.111.34000 Tenders closed on June 09, 2015 with the following results, including HST: 1) Galbraith Construction Ltd., Saint John $185,797.99 2) Fairville Construction Ltd., Saint John $186,957.94 3) Terraex Inc., Saint John $3647990.00 The Engineer's estimate for the work was $191,000.00, including HST. ANALYSIS The tenders were reviewed by staff and all tenders were found to be formal with the exception of the tender submitted by TerraEx Inc. which contained an arithmetic error that required correction in accordance with specification article 2.11 (s) (i). The corrected tender result is indicated above. Staff is of the opinion that the low tenderer has the necessary resources and ability to perform the work. It is anticipated that this work will be completed by September 15, 2015. M &C2015 -115 June 09, 2015 Page 2 FINANCIAL IMPLICATIONS The Contract includes work that is charged against the 2014 Water & Sewerage Utility Fund Capital Program. Assuming award of the Contract to the low tenderer, an analysis has been completed which includes the purchased packaged lift station and the estimated amount of work that will be performed by the Contractor, City forces and others. The analysis is as follows: Budget $350,000 Project Net Cost $478,000 Variance (shortfall) $ 128,000 On May 11, 2015 Council adopted a recommendation to award contract 2015 -2 Sewer Cross Connections Supply and Install Check Valves which identified a $144,000.00 budget surplus for the project. It is proposed to utilize the Contract 2015 -2 budget surplus to offset the $128,000.00 budget variance for the Greenhead Road Station "X" — Wastewater Lift Station Upgrades project. POLICY — TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. RECOMMENDATION It is recommended that Contract 2014 -19: Greenhead Road Station "X" — Wastewater Lift Station Upgrades, be awarded to the low tenderer, Galbraith Construction Ltd., at the tendered price of $185,797.99 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common Clerk be authorized to execute the necessary contract documents. Respectfully submitted, IA" 3 Pierre LeBlanc, P. Eng. Brian Keenan, P. Eng. Municipal Engineer Engineering Manager i� Wm. Edwards, VEng. J. atrick Woods, CGA Commissioner qty Manager Transportation and Environment 3 REPORT TO COMMON N C UNCIL M & C 2015 -116 June 9, 2015 His Worship Mayor Mel Norton and Members of Common Council Your Worship and Members of Council: e The City of Saint John SUBJECT: Contract No. 2015 -5 Sanitary Sewer Structural Lining — University Avenue BACKGROUND The approved 2015 Water & Sewerage Utility Fund Capital Program includes a project for Phase 1 of the structural lining of the Sanitary Sewer on University Avenue from Millidge Avenue to Royal Parkway. This work includes generally of the rehabilitation of 700 m of 450 mm concrete pipe. In addition there will be some isolated excavation work to install a new manhole, as well as rehabilitate several manholes in the University Avenue area. The sewer will be rehabilitated by installing a resin impregnated flexible tube which will be inverted into the existing concrete pipe by use of a hydrostatic head or air pressure. This cured - in -place pipe [CIPP] lining method will follow ASTM Standard F1216 -09 Standard Practice for Rehabilitation of Existing Pipelines and Conduits by Inversion and Curing of Resin Impregnated Tube. The work to be performed shall include all labour, equipment, tools, materials, engineering design and supervision to structurally rehabilitate the sewers by cured -in -place pipe (CIPP) lining method, including reinstatement of service connections. The work includes all sewer cleaning, preparation, CCTV inspections and any required flow control and/or flow bypass necessary for CIPP rehabilitation. TENDER RESULTS Tenders closed on June 9, 2015 with the following results: 1. Capital Sewer Services Inc., Hamilton, Ont $458,152.85 2.Trenchless Solutions Inc., Moncton, NB $459,022.95 3.lnsituform Technologies Ltd., Hamilton, Ont $682,068.00 The Engineer's estimate for the work was $ 857,800 M &C2015 -116 June 9, 2015 Page 2 ANALYSIS The tenders were reviewed by staff and all tenders were found to be formal in all respects. Staff is of the opinion that the low tenderer has the necessary resources and expertise to perform the work and recommend acceptance of their tender. FINANCIAL IMPLICATIONS The Contract includes work that is charged against the 2015 Water & Sewerage Utility Fund Capital Program. Assuming award of the Contract to the low tenderer, an analysis has been completed which includes the estimated amount of work that will be performed by the Contractor and Others. The analysis is as follows: Budget $ 870,000 Project net cost $ 458,900 Variance (surplus) $ 411,100 POLICY — TENDERING OF CONSTRUCTION CONTRACTS The recommendation in this report is made in accordance with the provisions of Council's policy for the tendering of construction contracts, the City's General Specifications and the specific project specifications. RECOMMENDATION It is recommended that Contract No. 2015 -5: Sanitary Sewer Structural Lining - University Avenue be awarded to the low Tenderer, Capital Sewer Services Inc., at the tendered price of $458,152.85 (including HST) as calculated based upon estimated quantities, and further that the Mayor and Common CIerk be authorized to execute the necessary contract documents. Respectfully submitted, Joel Landers, P.Eng. Municipal Engineer Wm. Edwards, P. ng. Commissioner Transportation and Environment Brian Keenan, P Eng. Engineering Manager L atrick Woods, CGA City Manager M &C- 2015 -113 June 3, 2015 His Worship Mayor Mel Norton and Members of Common Council Your Worship and Councillors: SUBJECT: HST Engagement Review — Ryan ULC BACKGROUND: city of saint john The City of Saint John is entitled to a Municipal Rebate of 73.6246% of the HST it pays and 100% refund of the HST on commercial activities. Sales tax is complex and constantly changing, which can often be a financial risk for many organizations, the City included. The City has multiple challenges when it comes to sales tax, such as the treatment of grants versus a service, determining a percentage of commercial use versus noncommercial use of certain assets the City owns and self- assessment of sales tax. In these times of economic challenges, budget constraints and scarce resources, it is extremely important that the City ensures that all risks are minimized around sales tax and to ensure that all eligible rebates and refunds are claimed. The Finance Department has met with Ryan ULC, a tax consulting and services firm, to preform a review that would best meet the City's needs. The services Ryan ULC will provide include: Comprehensive review of sales tax to identify that all rebate opportunities have been taken, recover any overpayments if they exist and assist in identifying any underlying issues and improving processes. • Provide tax advice for any critical issue that City may have on sales tax treatments of certain transactions. Training to keep staff up to date on tax issues and changes. M &C- 2015 -113 -2- dune 3, 2015 ANALYSIS: The cost of this review engagement is a contingency based fee structure to mitigate the cost to the City. The term of the agreement is for two years. The fee structure is based on tax rebates, refunds and credits, which the City receives from taxing authorities and/or vendors: 35% of savings up to $50,000: and 30% of savings over $50,000.00 This Agreement was previously reviewed by the Legal Department and the Purchasing Department and they have indicated that there are no concerns arising from their review of this agreement. RECOMMENDATION: It is recommended that 1. The City of Saint John enter into a "Sales Tax Review Agreement" with Ryan ULC. 2. The Mayor and Common Clerk be authorized to execute the necessary documents. Respectfully su Craig Lavigne, , C , H.B.Com Assistant Co roll GT§ory�ans, CPA, CGA, MBA Commi i e of Finance and Administrative Services ick J. Woods, CPA, CGA, City Manager Sales Tax Review Agreement between Ryan ULC (hereinafter called "Ryan') —and — City of St. John (hereinafter called 'the Client") THE PARTIES HERETO COVENANT AND AGREE AS FOLLOWS: 1. The Client permits Ryan to review all of its relevant accounting records in order that Ryan may determine what, if any, possibility exists of reducing the Client's federal and provincial sales taxes, including fuel and excise taxes, paid or payable for all periods open by law. Our engagement will include a review of audit exceptions scheduled by federal or provincial taxing authorities after the Client's tax, finance, or accounting department personnel have completed their own internal audit review. Our review of scheduled audit exceptions will begin only after receiving authorization from the Client. 2. On completion of such review, Ryan shall prepare appropriate refund claims and applications necessary to recover overpayments. 3. In consideration of Ryan providing the above services, the Client agrees to pay Ryan and hereby assigns to Ryan, the following fees for tax refunds, credits, or reductions, including interest and penalties, which the Client receives from taxing authorities and /or vendors: 35% of savings up to $50,000; and 30% of savings over $50,000. The Client agrees that Ryan's fees shall be based upon the gross amounts attributable to Ryan and shall not be reduced by any existing liabilities of the Client that may be applied or offset against such amounts. Our fee for refunds or credits will be invoiced upon receipt by the Client or upon approval by the taxing authority, if applicable, and is due and payable within thirty (30) days of receipt of any refunds or credits. Our fee for reductions of any audit assessment, including interest and penalty, will be invoiced upon approval by the taxing authority and is due and payable within thirty (30) days. If the Client obtains any tax refunds, credits, or reductions using Ryan work products for any other locations or entities, the Client agrees to notify Ryan and pay Ryan as outlined herein. 4. In the event no refund of any kind is effected through the services of Ryan as aforesaid, no fee of any kind shall be due or payable by the Client to Ryan. i un li L� 5. In the event of a government reassessment, audit or other challenge of a claim prepared by Ryan (each a "reassessment"), then Ryan will repay all fees received relating to such reassessment, including related penalties and the appropriate share of interest charges, calculated to the date of the reassessment; provided that, in the event of a reassessment, the Client will provide prompt notice of the reassessment within a reasonable time to allow Ryan to defend its claims. The Client agrees that Ryan shall be provided with the right to challenge any such government reassessments at its own expense. 6. Each party agrees to keep confidential all information disclosed by the other party, and use the same only for the purposes of the services to be performed hereunder. The foregoing confidentiality obligations shall not apply to the information of either party that (1) is already publicly known at the time of disclosure; (2) becomes publicly known after disclosure through no fault of the recipient; (3) is already known to recipient at the time of disclosure; (4) is subsequently disclosed to recipient by third parties having no obligation of confidentiality to discloser; or (5) is independently developed or learned by recipient without use of or reference to the confidential information of the discloser. 7. This agreement shall remain in effect for the period required to complete these services. 8. Ryan agrees to extend their support services to the Client (see Ryan support services listing) following the completion of the review, for a period of up to 2 years, on condition that the Client retains its active status. Ryan will not be responsible for errors or omissions and expressly disclaims all and any liability in connection with the use of these services. 9. The Client also permits Ryan to review for accounts payable overpayments on the same basis as outlined in paragraphs 1 to 7 above. :3 Yes ❑ No Authorized Signature for the Client Authorized Signature for Ryan Eve Ashton Name Name Director, Business Development Title Title .k,. 1 l3 Ll Date Date '