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2018-05-01 Growth Committee Agenda Packet - Open SessionCity of Saint John Growth Committee - Open Session AGENDA Tuesday, May 1, 2018 11:00 am 8th Floor Boardroom, City Hall 1. Call to Order Pages 1.1 Approval of Minutes - April 3, 2018 1 - 2 1.2 Progress on Population Growth 3-21 1.3 Development Practices 1.3.1 Infrastructure Approvals Process 22-44 1.3.2 Capital Program - Design, Tendering and Construction Management 45-77 1 Poeta Sy:1 City of Saint John Growth Committee Meeting Tuesday, May 1, 2018 Growth Committee Closed Session 1. Call to Order Si vous avez besoin des services en fran�ais pour une r6union de Conseil communal, veuillez contacter le bureau du greffier communal au 658-2862. Each of the following items, either in whole or in part, is able to be discussed in private pursuant to the provisions of subsection 10.(2)(4) of the Municipalities Act and Council / Committee will make a decision(s) in that respect in Open Session: 11:00 a.m., 8th Floor Boardroom, City Hall 1.1 Approval of Minutes 68(1) 1.2 Financial Matter 68(1)(c) 1.3 Financial Matter 68(1)(c) K Growth Committee Meeting Open Session April 3, 2018 MINUTES- OPEN SESSION GROWTH COMMITTEE MEETING APRIL 3, 2018 AT 12:30 P.M. 8T" FLOOR BOARDROOM, CITY HALL Present: Mayor D. Darling Deputy Mayor S. McAlary Councillor G. Lowe Councillor J. MacKenzie Councillor B. Armstrong Councillor R. Strowbridge Also Present: City Manager J. Trail Commissioner Growth and Community Development J. Hamilton Deputy Commissioner Growth and Community Development P. Ouellette Deputy Commissioner Building and Inspection Services A. Poffenroth Director Real Estate Services S. Carson Population Growth Manager D. Dobbelsteyn Planner J. Cyr CI Coordinator N. Moar Administrative Officer R. Evans 1. Meeting Called To Order Mayor Darling called the Growth Committee open session meeting to order. 1.1 Approval of Minutes 1.1.1 Minutes of March 15, 2018 Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that the minutes of March 15, 2018 be approved. MOTION CARRIED. Francis Power, Chair Develop SJ, Christine Comeau, Operations Coordinator Develop SJ, Leslie Magee, John Logan, and Peter Allaby, Develop SJ Board Members entered the meeting. 1.2 Develop SJ Presentation Francis Power and Steve Carson reviewed the submitted presentation highlighting the following: - First 90 days milestones - Strategic Model - Customer -Centric - Entrepreneurial Leadership - Business Portfolio Growth Committee Meeting Open Session April 3, 2018 - Rapid Lab Corporate Goals Moved by Deputy Mayor McAlary, seconded by Councillor Lowe: RESOLVED that the presentation from Develop SJ be received for information. MOTION CARRIED. Jeff Trail, Steve Carson, Francis Power, Christine Comeau, Leslie Magee, John Logan, and Peter Allaby withdrew from the meeting. 1.3 Smart Cities Challenge Milestone Update N. Moar presented the Smart Cities Milestone update referring to the submitted report. Moved by Councillor MacKenzie, seconded by Councillor Lowe: RESOLVED that the Smart Cities Challenge Milestone Update be received for information. MOTION CARRIED. Adjournment Moved by Councillor Armstrong, seconded by Councillor Lowe: RESOLVED that the open session meeting of the Growth Committee be adjourned. MOTION CARRIED. The open session meeting of the Growth Committee held on April 3, 2018 was adjourned at 1:25 p.m. Recording Secretary MOAr TA Q) 4--) Q 0 Q) E H 4--j 0 r� V 0 4--j Q 0 n M M OR LM .® plo t EL c U. 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N � O b.0� ro o Q v ra Jiro% '; 4-J N >` N U -0 -0 U -) )Ca -0 -0 � Ln N x N N Ln .N (/)a -- Q Ln � O �o —'" m Lr) r -i r,4tw b.0v CO > N r -I N M c -I (V M O p N µw�� '' '� �"" IIIIIIIIIIIII m N H Ln O Ln O Ln O N N rl r -I sAea ssauisn8 jo aagwnN •O .N E Ln w 0- E E O U ,µ Q w A O V .C- E E O U A to a --j E .O ro •— V � Q C6 U Q � m .O G E • _ �N Q O E v > Ln L^ O � W > U ' w .µ ,µ •O .N E Ln w 0- E E O U ,µ Q w A O V .C- E E O U A GROWTH COMMITTEE REPORT Report Date April 23, 2018 Meeting Date May 01, 2018 His Worship Mayor Don Darling and Members of the Growth Committee SUBJECT: Capital Programs — Design/Tendering/Construction Management OPEN OR CLOSED SESSION This matter is to be discussed in open session of the Growth Committee. AUTHORIZATION Primary Author Commissioners City Manager Brian Keenan Brent McGovern/ Michael Hugenholtz Jeff Trail RECOMMENDATION It is recommended that this report be received and filed. EXECUTIVE SUMMARY The purpose of this report is to provide the Growth Committee with an overview of the functions of the City's Municipal Engineering group and of the Design/Tendering/Construction processes utilized to complete projects under the approved Capital Programs. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT This report aligns with Council's priority for Valued Service Delivery, specifically as it relates to investing in sustainable City services and municipal infrastructure. REPORT INTRODUCTION The City's Municipal Engineering team is responsible to Saint John Water and Transportation and Environment Services for providing professional engineering and technical staff resources for engineering support, design and construction management for projects under the Capital Programs for the improvement of !1'7 -2 - municipal infrastructure and to ensure the integrity of the systems through implementation of sound engineering standards. The infrastructure categories under Saint John Water include Sanitary and Water and under Transportation & Environment include Storm & Transportation. Sound engineering design and construction management is essential to protect the environment, provide safe clean drinking water and to provide an efficient transportation network by constructing infrastructure that is built properly using sound engineering standards. The Professional Engineering team consists of an Engineering Manager, 4 Professional Municipal Engineers and Technologist support staff. Each Professional Engineer manages 8 design/tender/construction projects annually on average. The team meets bi-weekly to review progress on project design/ tendering and construction with a goal to discuss and remove any barriers to progress and to discuss project specifics to ensure consistency in decision-making. In addition to design / tendering / construction management, the following additional functions are completed by the Municipal Engineering team: — Asset Management — Investigate problems within the City's water, sanitary, storm and transportation systems and develop solutions — Prepare cost estimates for projects — Capital Program Planning / Budget Analysis / Reporting — Respond to requests from citizens — Organize and attend Public Information Sessions — Coordination with Provincial / Federal Governments on various initiatives including funding programs — Updating the General Specifications — Preparation of Request for Proposals for engineering services including evaluation of proposals — Project Management with Consultants — Program scheduling utilizing Microsoft Project — Preparation of Council Reports — Coordination and direction to support staff for field survey work, preparation of record drawings and updating the GIS Systems for asset management CAPITAL PROGRAMS — DESIGN Common Council has approved the 2018 Water and Sewerage Utility Fund Capital Program consisting of 21 projects totaling $6,499,000 and the 2018 General Fund (Storm and Transportation) Capital Program consisting of 11 projects totaling $6,570,000. Annual Capital Program planning is an ongoing process that starts with condition assessment of assets. The primary condition -3 - assessment mechanism for the sewerage systems is the CCTV Video Inspection Program and for the transportation systems is the Micropaver/PCI Program. Based on the condition assessments, projects are prioritized and the Utility Fund and General Fund recommended projects are coordinated to ensure they are completed efficiently. After Capital Program approval, the following stages (including a timeline based on a typical project of $500,000 budget) are necessary to move the projects through to construction: Design Engagement/Request for Proposal (RFP) 6 weeks Site Survey 2 weeks Project Design Period 10 weeks Project Approvals (minimum) 2 weeks Tendering and Award 6 weeks Construction Period 10 weeks Reinstatement 2 weeks Total 38 weeks or 9.5 months The Project Approvals can be more complex depending on the nature of the project and at minimum would be 2 weeks. For complex projects requiring a Certificate of Approval to Construct or an Environmental Impact Assessment or a Wetland or Water Course Alteration Permit can add several months to the approval period. These types of approvals from the Province usually require sealed final engineering drawings so the Project Approvals process would start following the Project Design Period. Property acquisition may also be required in order for the project to proceed and that process would normally start following the Project Design Period (as the limits of property acquisition need to be defined accurately) and the duration of the Property Acquisition is largely dependent on the co-operation of the current property owner and can take months and sometimes years to acquire property. The 2018 Capital Programs were approved by Council on October 2, 2017. Allowing the month of October to prepare a Capital Program Implementation Plan including drafting of RFP's for design services and to obtain budget numbers, etc., (to allow expenditures to start) would put the above typical project tender advertisement at early April and construction completion at mid- August 2018 providing there are no interruptions to the time line. Certain municipalities (Fredericton) rely entirely on external consultants for design while Saint John has in the past and as is planned for 2018 rely on a combination of external consultants and internal staff to complete the design packages. Of the 32 approved 2018 projects, the Municipal Engineering team will be designing 23 of the projects and will rely on external consultants for 9 projects. Fredericton has a similar size Capital Program (approximately $13 Million) to that of Saint John and chooses to utilize external consultants for the majority of the project designs. Their design procurement process allows for Fredericton to engage consultants without any competitive process and therefore consultant engagement can be accomplished quickly. Conversely, the Saint John procurement process for external design services can take 6 to 7 weeks from start of RFP process to Council approval and signing of Agreement. The Fredericton model also allows for the various project designs to be completed concurrently as each project can have a separate consultant design team. Consultants are paid on an hourly basis with funds drawn from a project design pool of funding so Fredericton staff do not need to wait for individual Capital Project approvals to start design work. The Fredericton model would come at a higher external cost as the $13 Million program would ultimately require external Engineering Services at approximately 20% of the overall Capital Program envelope which equates to $2.6 Million in engineering fees. In contrast, Saint John plans to design and tender $5.3 Million worth of projects utilizing internal design staff while utilizing primarily external staff for inspection. The amount not being paid out to external consultants by completing the design work and overall project management internally amounts to approximately $800,000 ($5.3 Million x 15%). The cost of 4 staff engineers and 4 technologists which make up the design area of Municipal Engineering including wages and benefits amounts to approximately $750,000. The advantage to utilizing internal staff for design work is that the staff are also available to complete other work tasks as were detailed in the Introduction section of this report. Saint John has engaged external consultants for the remainder of the $7.7 Million of Capital Program projects, plus inspection services for the internal design projects at an engineering fee of approximately $1.8 Million. The typical charge out rate for external engineering consultant staff is approximately 2.5 times the City's internal rate (wages + benefits) which is standard for private sector companies in order to cover overhead costs and profit. There is a significant financial advantage to completing as much design work internally as possible but with only 4 Internal Design Teams, not all project designs can be completed concurrently. For the 2018 internal design projects, it is estimated that each team would require approximately 26 weeks of design time. !E:3 -5 - This means that tendering of projects for 2018 will need to continue into April and May. This has some advantages as the startup dates for construction can be staggered to avoid too much concentrated construction on City streets at one time, therefore reducing traffic issues. Other municipalities like Fredericton that rely totally on external consultants for design would still require a significant complement of internal staff to engage and carry out administrative work with the external consultants. Staff are of the opinion that utilizing internal staff for a portion of the design work is more economical overall. Staff have not noted any significant cost increases in tendered amounts by extending the tendering into April/May. The tendered amounts for 2017 projects were evaluated against the Engineers' Estimate and the percentage (tendered amount _ Engineers' Estimate) remained fairly consistent into April/May/June and are comparable to earlier in the season at around 90%. In summary, staff are of the opinion that the Saint John model of utilizing a combination of internal staff and external consultants for design work is more cost effective overall than utilizing external consultants exclusively. CAPITAL PROGRAM -TENDERING Each year the City advertises tenders for a number of projects under the Capital Program. In 2017 the Municipal Engineering group advertised 18 tenders with two of the 2017 projects being held up from tendering due to property acquisition and one project tender delayed due to an EIA process (see table below). Under the 2018 Capital Program there are 13 projects to be advertised for tender as shown in the following table. !Loll -6- 2017 Project Tenders Held Up (due to environmental approvals and/or property acquisition) Design By Project Budget Date for Tender Comment Website Ad Closing Date City Morna Hgts/Greenwood $3,000,000 Apr 10 May 1 Tender WWTF's advertised. Complex EIA was required CBCL MRG Forcemain X -Y $850,000 May 8 May 29 Dates tentative due to ongoing property acquisition City Hanover Street Storm $400,000 May 8 May 29 Dates tentative due to ongoing property acquisition 2018 Projects Tendered City Leinster Street $630,000 Mar 6 Mar 27 Project awarded Reconstruction City Asphalt $6,000,000 Mar 13 Apr 3 Project awarded Resurfacing/Curbs & Sidewalk City Sandy Point Road Storm $115,000 Mar 20 Apr 10 Project awarded Sewer City Visart Street $620,000 Mar 27 Apr 17 Project awarded Reconstruction CBCL Musquash Pumping $2,550,000 Apr 3 May 1 Tender advertised Station — Electrical Substation CBCL Westgate Park Storm $700,000 Apr 24 May 14 Tender advertised Sewer City Glen Road —Water, $450,000 Apr 24 May 15 Tender advertised Sanitary City Rockland Road $1,010,000 May 1 May 22 Tender advertised Reconstruction 2018S pecialty Projects —Tender Schedule City Sewer Lining — Currie $505,000 Apr 24 May 15 Work at each Ave/Jack's Field/Mill location to be of St/Paddock St short duration (2- 3 Days) City Watermain Cleaning & $1,360,000 May 15 June 5 Work to be Lining Phase 15 carried out at various locations with work at each site to be of short duration (2-3 Days) Dillon Ocean Drive Pump Station $265,000 May 29 Jun 19 Generator will Generator need to be ordered. Good opportunity for off street fall work TBD Carpenter Place WWPS— $400,000 Jul 17 Aug 7 Pumps will need Pumps to be ordered. Good opportunity for late fall work inside facility City Crack Sealing $100,000 Jul 17 Aug 7 Best results when cracks sealed in the fall 6119] Staff focused on tendering the larger scope 2018 projects first which included Leinster Street, Asphalt Resurfacing, Visart Street and Musquash Pumping Station - Electrical Substation. Three more projects which involve traditional excavation - Westgate Park, Glen Road and Rockland Road - are proposed to be advertised for tender in April with the tenders closing in May. These are the last three 2018 tenders that utilize the services of the traditional excavation contractors and given recent tender pricing, staff is confident that the City will continue to receive competitive tender pricing on these three remaining traditional excavation contracts when they close. There are also five specialty type projects (with only the Watermain Cleaning & Lining project requiring some minor excavation) that will be tendered over the next few months and they include Watermain Cleaning & Lining, Sewer Lining, Ocean Drive PS Generator, Carpenter Place WWPS Pumps and Crack Sealing. The specialty projects have tender dates towards the end of the schedule as work at each of the sites will be of short duration. With the early October approval of the 2018 Capital Programs it has allowed for an earlier tender release when compared to previous years. For example, in 2017, 60% of the tenders were advertised and closed by the end of June while for 2018, 85% of the tenders will have been closed. In order to further improve the tendering time line in the future the City of Saint John should continue to utilize the direct engagement procedure for external engineering consultants for specific projects and to approve a separate Engineering Investigation & Design line item in future Capital Programs that would allow design expenditures to occur year round. Staff will include this in the draft capital budget for 2019 for Council's consideration. CAPITAL PROGRAMS -CONSTRUCTION MANAGEMENT The Engineer having placed their engineering seal on the design drawings has a personal professional obligation to ensure not only that the design meets the standards but also that the final constructed systems will function as the design intended. This is why it is critically important that the Engineer have full authority related to the project design and construction to ensure the final project functions as the design intended and to ensure the safety of the public. An important aspect of a project is the Construction Management and Inspection (CMI) component. CMI plays a critical role in delivering quality construction projects. The project inspector assigned to the site and reporting to the Engineer must be diligent in ensuring that the project is constructed in accordance with the approved plans and specifications. The City of Saint John has adopted a document entitled Construction Inspection Guidelines to provide guidance to inspectors working on projects for the City of Saint John. In addition to this document, the inspector must familiarize themselves with the City of Saint John 51 MI General Specifications, applicable bylaws and regulations, permits and the drawings and specifications for the project. The inspector must ensure that the approved drawings, specifications, permits, etc., are adhered to by the contractor. It is important that the inspector keep good notes and records in the form of daily reports. The City will for certain projects be utilizing external consultant inspectors. The engineering design drawings are prepared under the direction of the Engineer who is responsible for reviewing, approving and placing their personal professional engineering seal on the engineering drawings prior to tendering. The Engineer has a Professional obligation for the standard of the design and to ensure quality construction work. The General Specifications defines the Engineer as follows: "ENGINEER" includes the Chief City Engineer, or any Engineer who is employed by the City and has been designated by the Chief City Engineer to act on his behalf, or a Consultant which has been retained in writing by the Chief City Engineer or the Engineer acting on behalf of the Chief City Engineer. Each contract will have a designated City Engineer as identified in Division 1 of the contract. Ultimately, the responsibility of the City Engineer is to ensure that the construction work is completed to a high standard, meeting all the requirements of the contract. The Engineer is to be fair to the contractor in their decisions but ultimately is responsible to the City and the taxpayers/ratepayers to ensure quality work. The authority of the Engineer is defined in the General Specifications as follows: The Engineer has full authority to define the meanings of the Drawings and other Contract Documents. The Engineer, either personally or through the Engineer's Representative, shall be the sole judge of the workmanship and materials in respect of both quality and quantity and has full powers to examine, inspect and approve or reject materials, methods of procedure and workmanship provided or used in the execution of the Contract and to determine whether or not materials and workmanship are of the character required by the intent and meaning of the Drawings and other Contract Documents. The Contractor must promptly and efficiently comply with all orders, directions and instructions given at any time by the Engineer with respect to the work. If the Contractor disagrees with any order, direction or instruction given at any time by the Engineer, he shall perform the Work as instructed and shall serve notice in accordance with the Disputes -Arbitration section of the General Specifications. The Contractor shall also, where he intends to submit a claim for 61► -9 - additional time or money arising out of the construction of the work, give written notice of his intention to claim. The Engineer shall, upon receipt of a Notice of Claim, render a decision in writing to the contractor. Should the contractor be dissatisfied with the Engineer's decision, he can request that the dispute be referred to a Board of Arbitration. The duties of the Engineer's Representative (Inspector) are defined in the General Specifications as: To watch over and supervise the work and also to supervise the testing and examination of all materials to be used, or workmanship employed, in connection with the work. The Engineer's Representative does not have any authority to relieve the Contractor of any of the Contractor's duties or obligations under the Contract, to order any work involving delay or extra cost to the City or to make variations in the work. Failure of the Engineer's Representative to disapprove any work or materials shall not prevent the Engineer from disapproving such work or materials. The Engineer has the authority to order variations or changes to the form, quality or quantity of the work. The Engineer shall determine whether all such work shall be valued using the Schedule of Quantities and Unit Prices (tendered unit prices). Monthly measurements of the work being carried out under the Contract shall be made jointly by the Engineer's Representative and the Contractor's Representative at the end of each calendar month. At the end of each month, the contractor shall submit to the engineer, for verification of the measurement, a fully itemized statement showing the estimated value of the work executed up to the end of the month. The City of Saint John has tendered over 500 contracts in the last 25 years and staff can only recall one contract where the amount of payment respecting contractor claims was in dispute that was subject to an Arbitration process. In this particular Arbitration, the Board ruled much closer to the Engineer's decision than the amounts claimed by the contractor. There have also been three contract matters referred to litigation over disputes in quality of work over the last 25 years. So in summary, it is very rare that the Engineer and contractor would require an Arbitration Board (or any third party for that matter) to settle a dispute regarding claims for extra work or contract quantities. 6V -10 - DESIGN & CONSTRUCTION —SPECIFICATIONS The City of Saint John relies on the following engineering standards to ensure the long-term integrity of the City's water, sanitary, storm and transportation systems: • City of Saint John General Specifications (Approved & Adopted by Common Council) • City of Saint John Storm Drainage Design Criteria Manual (Approved & Adopted by Common Council) • Atlantic Canada Guidelines for the Supply, Treatment, Storage, Distribution, and Operation of Drinking Water Supply Systems • Atlantic Canada Wastewater Guidelines Manual • Canada -wide Strategy for the Management of Municipal Wastewater Effluent endorsed by the Canadian Council of Ministers of the Environment (CCMA) • Transportation Association of Canada Geometric Design for Canadian Roads • National Building Code of Canada • Canadian Electrical Code The General Specifications have been approved & adopted by Council and are in place to protect the public's interest. The General Specifications are the primary design and construction document that is utilized by the Engineers and contractors. The General Specifications are a user friendly document that includes the technical standards as well as the work flow processes to be followed under the terms of the contract between the City and the contractor. The City of Saint John General Specifications exist to provide the contractors with requirements for bidding and/or working on City of Saint John construction projects. The General Specifications are to be used in conjunction with individual contract specifications and recognized authorities governing the safe practices for municipal engineering. Each year the General Specifications are revised and updated based on comments/suggestions from all stakeholders including City staff Engineers, City Operations staff, contractors, developers, engineering consultants and other City departments. Stakeholders are encouraged (by letter posted on City's website with the General Specifications — see attached) to submit comments/suggestions to a designated staff Engineer to assist in enhancing the current General Specifications. The comments/suggestions are reviewed and the ideas considered for future revisions to the General Specifications document. 6'i! -11 - Once the annual draft General Specifications revisions are completed, they are sent out to the Saint John Construction Association (SJCA) office to be distributed to and reviewed by SJCA contractors. A reasonable amount of time is provided for the SJCA review and the contractors are invited to an annual meeting at 175 Rothesay Avenue to discuss any comments they may have on the proposed revisions and an opportunity is also provided to discuss any "construction administrative" matters that the construction contractors may wish to raise. Over the past 12 years, participation at the annual meeting has been good with attendees from NRB Construction Company Ltd., Classic Construction Ltd., Galbraith Construction Ltd., Fairville Construction Ltd., Terraex Inc. and Gulf Operators Ltd. The dialogue has been good and the outcome very successful. Of the major Saint John area contractors notably not choosing to attend and participate is Debly Enterprises Ltd. Some examples of comments/suggestions from the contractors that have been adopted into the General Specifications are as follows: • Utilize a standard City form for extra work claims • Establish pre -construction meetings, followed by weekly or bi-weekly site meetings • Staggered tender closings, Tuesday and Wednesday when multiple tenders are closing in a given week • Adopt adjustable style manhole covers in General Specifications • Adjust typical sanitary manhole standard drawing in General Specifications to show benching at 2/3 height of pipe diameter • Adjust allowable markup on extra work from 10% to 15% to adequately cover overhead costs and to align with industry standard • Revise standard tender form so that HST is added at the end of tender form as opposed to including the HST in each individual unit price • Allow the contractor to be responsible for Quality Control testing of the concrete and soils • Implement mandatory New Brunswick Construction Safety Association certification for safety programs of all bidding contractors • Introduce a liquid asphalt price adjustment clause for changes in index greater than 10% and then later adjusted the clause to 5% • Include list of manhole raising requirements with asphalt resurfacing project specifications • Request Saint John Police to monitor vehicle speed through construction sites • Include the Construction Association in the circulation of draft proposed General Specification revisions for review and comment prior to adoption as final 6191 -12 - The next cycle of proposed General Specification revisions are going to be released in the coming weeks to the SJCA for review and comment to be followed by a request for the contractors to attend the City's annual General Specifications meeting. A forecast of the upcoming tender advertisements will be provided at the meeting. CONSTRUCTION RISK The City of Saint John primarily utilizes unit price tenders for municipal projects. This method is less risky for the contractor as if the quantity of work fluctuates, the contractor is paid for the actual measured quantity of units at the tendered unit price. There is a process under the General Specifications for managing changes to the work for unforeseen or extra work not covered by unit prices which is another mechanism to reduce risk to a contractor involving unforeseen work. An example of unforeseen work that is becoming more common is when a contractor encounters soil contaminated by hydrocarbons during the course of excavation. The contractor has been and will continue to be compensated for proper treatment of the soil by specialty environmental contractors. Another example of a mechanism to reduce risk for contractors that was adopted several years ago, involves the liquid asphalt component of the asphalt mix. It was recognized a few years back that the price for liquid asphalt was fluctuating significantly month to month so a Specification Clause was adopted where payment for the liquid asphalt component would be adjusted to the cost of the product at the time the asphalt was mixed and placed. This is a two-way mechanism so if the liquid asphalt price goes down the City saves money on the tendered price but if the liquid asphalt price goes up the contractor is compensated accordingly. The City also reduces risk to contractors by obtaining environmental approvals in advance and including the conditions/construction requirements with the contract tender documents. CONCLUDING COMMENTS Municipal Engineering staff currently have to wait until specific projects are approved in a Capital Program before making expenditures for external design services. In order to further advance the cycle to earlier release of tenders the City of Saint John should establish a separate Engineering Investigations & Design line item in future Capital Programs in an amount sufficient to allow design work to proceed earlier and continue year round as required. 67� -13 - SERVICE AND FINANCIAL OUTCOMES The City's Municipal Engineering team is a group of highly professional dedicated individuals who are working diligently in a cost effective manner in the best interest of the City, taxpayers and ratepayers. Much of the work they do involves renewal of existing infrastructure to support Council's priorities. They also support other important priorities such as asset management which is critical to the long-term financial stability of the City. A review of the 2017 tendered projects shows the pricing on average coming in at approximately 90% of the Engineer's estimate and the trend is continuing for 2018 tendered projects. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS This report has been reviewed with the City's Finance and Administration Division. ATTACHMENTS General Specifications — Stakeholders Letter 61FA To All Stakeholders: July 17, 2017 This letter is to inform all stakeholders (users) of the City of Saint John General Specifications that the 2017 revisions were approved as of July 10, 2017. The revised document is effective as of July 17, 2017. These revised Specifications are to be used in conjunction with individual contract specifications and recognized authorities governing safe practices Or municipal engineering. The Specifications, including the revisions, have been prepared to provide the user with We requirements for bidding and/or working on City of Saint John construction projects. Comments and/or suggestions from users that will assist in enhancing the current Specifications are welcomed and should be made in writing to Susan Steven -Power, P.Eng. It is the intention of City staff to review all comments and/or suggestions received, to consult on those ideas and to consider the submissions for future revisions to the General Specifications document. The 2017 General Specifications are available online at: www.saintjohn.ca. To view or download a copy of the document, select the Tenders and Proposals link and click the 2017 General Specifications file, found under the Resources section. A list of the sections revised for 2017 is included at the front of the document. The City of Saint John looks forward to working with you in utilizing this Specification and providing high-quality, cost-effective service to and for the citizens of Saint John. Yours truly, F) c Brian Keenan, P. Eng. Chief City Engineer c. City Manager Common CIerk Purchasing Agent P.O. Box 1971 C.P. 1971 Saint John, NB Saint John, N. -B. 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