COMMITTEE OF THE WHOLE REPORT: Pedestrian Street Lighting Project – Direct Award
A report recommending the direct award of a pedestrian street lighting contract and the deferral of one intersection's improvements due to budget constraints.
TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE REPORT
TO: Committee of the Whole DATE: July 5, 2022 FROM: Ivan Leung, P.Eng, Director of Engineering MEETING DATE: July 12, 2022
Pedestrian Street Lighting Project – Direct Award
RECOMMENDATION:
THAT the Committee recommend to Council that staff move forward with the Pedestrian Street Lighting Improvement project for both roundabouts on Helmcken Road and defer the improvements at the Chilco Road/Lund Road intersection to next year;
AND THAT the 2022 Pedestrian Street Lighting Improvement project be awarded to Victoria Contracting & Municipal Maintenance Corporation (VCMMC) in the amount of $99,575 plus GST.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
DIRECTOR OF FINANCE’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To present construction options to the Committee of the Whole regarding this year’s pedestrian lighting improvements project (Capital Project C-108)
BACKGROUND:
As part of the 2022-2026 Financial Plan a pedestrian lighting improvement project was approved for the following locations:
- Helmcken Road – Vickery Road Roundabout
- Helmcken Road – Pheasant Lane Roundabout
- Chilco Road at Lund Road – Intersection
At the time of budget approval the estimated capital cost to improve pedestrian lighting at these locations was $99,000.
Per the Town’s purchasing policy staff began obtaining quotes for the supply and installation of the streetlights. Upon review it became clear that construction costs were going to be well beyond the project budget. Quotes from the Town’s roads and electrical maintenance contractors, Victoria Contracting Municipal Maintenance Corporation (VCMMC) and Raylec Power Inc respectively, quoted approximately 24% higher than the project budget.
For small electrical projects, both VCMMC and Raylec Power Inc provide best value for money. They are our maintenance contractors for the Town. As such, they are vehemently aware of the site challenges of this project area. They regularly conduct maintenance work on Helmcken Road throughout the year.
As quotes from VCMMC and Raylec Power Inc were already significantly higher than budgeted staff agreed that quotes from other companies would not result in substantially lower costs.
DISCUSSION:
Based on revised cost estimates from the electrical design engineer and quote from VCMMC staff is recommending the following option:
Defer the Chilco / Lund Road improvements to next year and Direct Award this year’s pedestrian street lighting project to VCMMC.
This option would bring the construction costs approximately to budget ($99,575 plus GST). While deferring means that the Chilco / Lund intersection improvements will be delayed to next year, it would also mean that both of the Helmcken Road Roundabouts will see improvements this year.
Furthermore, these improvements on Helmcken Road would coincide with a peripheral street lighting project in the vicinity, the street lighting LED program (C-065). This means that, holistically, the roundabouts and the direct surrounding area receive lighting improvements this year.
An alternative option is to undergo a public tender process. While this would mean the potential for more bidders, it would also mean that the original quote provided by VCMMC would be void and there is potential for more funds being required to accommodate any bids higher than budgeted.
Staff recommends that the Pedestrian Street Lighting Improvements for Helmcken Road be direct awarded to VCMMC as it reflects best value for money, especially when timed simultaneously with the LED improvements in the vicinity.
ALTERNATE RECOMMENDATION:
THAT the Committee of the Whole recommend that staff pursue a competitive bid process for the Pedestrian Street Lighting Improvement project.
RECOMMENDATION:
THAT the Committee recommend to Council that staff move forward with the Pedestrian Street Lighting Improvement project for both roundabouts on Helmcken Road and defer the improvements at the Chilco Road/Lund Road intersection to next year;
AND THAT the 2022 Pedestrian Street Lighting Improvement project be awarded to Victoria Contracting & Municipal Maintenance Corporation (VCMMC) in the amount of $99,575 plus GST.
SUBMITTED BY: I. Leung, Director of Engineering
REVIEWED BY: K. Anema, Chief Administrative Officer
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