Staff Report: Packers Pump Station Tender Update

TOWN OF VIEW ROYAL COUNCIL REPORT

TO: Council DATE: July 12, 2023 FROM: Ivan Leung, P.Eng, Director of Engineering & Parks MEETING DATE: July 18, 2023

PACKERS PUMP STATION TENDER UPDATE

RECOMMENDATION:

THAT staff be permitted to award the tender of construction works to the successful bidder if the bid is within existing project budget;

AND THAT if the successful bid causes the project to exceed budget, that a Special Council meeting be held in August to address the budget issue.

PURPOSE:

The purpose of this report is to provide information on staff’s next steps in awarding the Packers Pumpstation tender works.

TIME CRITICAL:

The tender for this project is currently scheduled to close on July 21, 2023.

EXECUTIVE SUMMARY:

Given the scheduled tender closing date of July 21, 2023, and the delayed award that would be required if kept to the September 5, 2023 regular Council meeting, staff recommend awarding the project to the successful bidder earlier to mitigate delays. Staff recommend that:

1. Should the acceptable bid render the project within existing budget, that Staff administer the execution of the award to the successful proponent;
2. Should the acceptable bid cause the project to exceed the existing budget, that a Special Council meeting in August be held so that Staff can inform Council of potential options.

BACKGROUND:

This project is part of an ongoing lift station upgrade program to maintain smooth uninterrupted services to its sanitary sewer system. This particular project will address short term priorities as well as improve hydraulics to extend the capacity life of the downstream system by:

• Reconfiguring the sanitary sewer forcemain to optimize the efficiency of the pumpstation;
• Installing a new valve chamber to allow for easier, safer maintenance while increasing the service life of the valve and flow meter;
• Installing a new Electric Kiosk to monitor and control the pump station more accurately and efficiently.

The budget for this project is scheduled for 2023: up to $670,000 that includes construction, inspection, and contract administration costs. The tender was issued on June 27, 2023 with a scheduled closing date of July 21, 2023.

DISCUSSION:

Given the project budget and in keeping with Purchasing Policy 1600-021, Council is required to execute the award of this tender. However, with the tender closing date being July 21, 2023, a long delay is anticipated as the next subsequent Council meeting is scheduled for September 5, 2023 (46 days apart).

The impacts of a delayed award in early September can include but is not limited to:

• Delay of project completion – the current Substantial Performance of the Work deadline is November 24, 2023. Delaying the start date would push the completion date to later in the year and potentially into the new year;
• As a result of a delayed completion date, the project could enter the winter months that can observe more inclement weather. This diminishes optimal construction conditions that could result in reduced efficiencies in the work;
• Tenders are typically irrevocable and open for acceptance for a period of 60 calendar days, as is the case for this tender. Taking the 46 days into account, staff believe that the remaining 14 days time to execute the award can be potentially tight.

As a result, staff recommend that the award of the tender be executed earlier and as soon as allowable post tender closure. Staff recommend this to be done as follows:

1. Should the acceptable bid render the project within existing budget, that Staff administer the execution of the award to the successful proponent;
2. Should the acceptable bid cause the project to exceed the existing budget, that a Special Council meeting in August be held so that Staff can inform Council of potential options, followed by a recommendation for consideration.

FINANCIAL IMPLICATIONS:

There are currently no financial implications unless a Special Council meeting in August is required to address the budget.

ALTERNATIVES:

Council may consider the award of the tender to take place at the regular scheduled Council meeting on September 5, 2023. However, staff do not recommend this given the impacts of such a delay described above.

Council could also be polled to receive email approval of award of an acceptable bid.

CONCLUSION:

There are potential impacts to the Packers Pumpstation Upgrades project if the award is delayed until the September 5, 2023 regular Council meeting. Such impacts include delays to construction completion, inefficiencies to the work program, and the relatively tight timelines to execute award.

Staff recommend that the award be executed as soon as allowable. Staff recommend that they execute the award if the successful bid is within project budget. If the successful bid is above budget, then staff recommend that a Special Council meeting be held in August to address the budgetary issue.

ATTACHMENTS:

Project Summary C-115 – Packers Pump Station Upgrade