Report to Council - View Royal Park Stormwater Management Construction Award

BACKGROUND:

The original project scope (C-035) involved proposed upgrades to the park’s drainage system. Specifically, the works included:

• Improvements to the drainage swale along the west side of the park (improved grading, wider swale and shallower slopes).
• Enhancement and restoration of these swales by removing invasive plantings and replacing with native species (riparian improvements).
• Preserving existing trees in the project area and planting new trees
• Subject to federal funding, the installation of a constructed wetland and a saltwater marsh.

The above noted works were considered a priority item for View Royal Park as summarized in the View Royal Park Master Plan (Section 9.0). This was also reflected in project summary C-035.

DISCUSSION:

Staff tendered the proposed works in full through public bid in early February, which subsequently closed on March 9, 2023. All bids were found to be over the project budget ($232,800.00) as follows:

• Michell Excavating Ltd: $603,323.00
• Northridge Excavating Ltd: $1,515,400.00

The public Tender was subsequently cancelled given the high bids being above Town budget.

Following the cancellation of the Tender, the Town has two available options to commence the project in the future:

Option 1: Cancel Tender and re-tender at a later date once financing is secured or scope is reduced to meet budget.

Option 2: Cancel Tender and negotiate a reduction in scope with the lowest bidder. Post-bid negotiations are allowable under the Canadian Construction Documents Committee (CCDC) Tender documents, which this Tender is based on.

Following the cancelation of the initial Tender, staff were in the process of exercising Option 1. However, upon discussions with the Town’s civil consultant, as well as general discussions with industry, staff were compelled to investigate Option 2 for the following reasons:

• Given the pace of construction in the region, reducing scope to meet budget may yield the same result as Option 2 but with the added re-tendering costs and delays.
• Upon review with the Town’s civil consultant, the stormwater management design is in a favourable position to be phased in a manner that allows the most important works to be done within this year’s budget, and the remaining works can be done at a later date as part of future budgeting.
• Option 2 will reduce consultant costs and staff time as a re-tender period would not be required.

Staff have identified the northern portion of the project as one of the highest priorities for the Project: this section provides flow control (the treatment and buffering of peak flows) that directly discharges into Craigflower Creek. The works would improve storm water quality and could reduce potential flood related erosion of stream banks: an issue that could be further exasperated with the effects of climate change. Staff consider that focusing on this section of the project would reduce the construction costs to meet this year’s budget.

Staff reviewed other possible cost reduction methods to keep the project below budget. This includes partnering with Greater Victoria Green Teams (GVGT) to plant approximately 250 trees and/or shrubs as part of their TD Tree Days grant application. The award of the grant is currently still in progress, but GVGT did receive this grant last year and were able to plant the same number of trees within Garry Oak Meadows Park in View Royal. Transferring the planting responsibilities of these trees to GVGT would result in lower construction costs because the tree planting works would be covered by grant funds, resulting in a reduction in scope for the civil contractor’s stormwater management and landscaping work.

In accordance with Option 2 and reducing the scope of stormwater management and landscaping work to the northern area identified in Figure 2, staff requested a revised quote from Michell Excavating Ltd., whom was the lowest bidder during the tender process by a significant margin. The revised quote was submitted to the Town in the amount of $189,703 plus GST - within this year’s project budget.

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

The stormwater management improvements are consistent with two of the Town’s initiatives and strategies regarding climate change:

• Strategic Plan 2019-2022: Environmental Stewardship – supporting community preparation for climate change impacts with respect to storm surge and other extreme weather events.
• View Royal Community Climate Action Strategy: Upgrading community infrastructure like storm water to enhance resiliency and adapt to potential impacts of climate change (heavy precipitation and extreme weather events). Utilizing and restoring natural infrastructure to minimize storm water runoff. Maintaining, preserving and expanding the urban tree canopy.

By improving stormwater management and landscaping in key corridors within View Royal Park this year, Craigflower Creek can see immediate improvements to water quality and discharged flows from the park. Flow control measures would be immediately introduced as part of this project, buffering higher peak flows that are attributed to the effects of climate change.

Partnering with GVGT as part of a tree planning program also continues to foster environmental stewardship within the community. Greater Victoria Green Teams has been part of a vital team in gathering volunteers to remove invasive species and to plant trees in View Royal, the latter which GVGT has seen more participation in.

FINANCIAL IMPLICATIONS:

A phased approach is required for the Project to maintain the Town’s capital budget. Construction costs have inflated over the last couple of years; as a result, staff have had to revisit this project to manage expectations and recommend options that reflect best value for money. This phased approach is a suitable balance between what the budget allows, and what the works can maximize from an environmental standpoint.

Furthermore, by phasing the works, staff would be able to monitor the new installation and assess whether any adjustments can be made in future phases to (1) reduce operational costs, and (2) optimize the design.

Staff have also identified the constructed wetland and saltwater marsh as high priority projects. These are currently funding dependant and the Town is still awaiting a response from the Federal Government regarding the outcome of its Natural Infrastructure Grant.

ALTERNATIVES:

Council could elect to re-tender the project at a later date. However, the additional tendering time may put construction further into the Fall 2023, which could pose unfavourable construction conditions and carryover of project completion to 2024.

CONCLUSION:

With regional construction still holding strong, the Town investigated whether Option 2: negotiating a reduced scope with the lowest bidder, was an amenable solution. The benefits of this option included (1) seeing the installation of stormwater improvements in key areas, thus providing a maximum benefit, (2) maintaining Town relationships with environmental stewards and capitalizing on grant programs that benefit the project, and (3) keeping project within budget.

Staff will continue to monitor stormwater management areas not included in the first phase of construction and determine if any optimization of the design could be done to reduce capital and maintenance costs.

As a result, staff recommend that Phase 1 of the stormwater management project (northern section discharging directly into Craigflower Creek) be awarded to Michell Excavating Ltd. in the amount of $189,703 plus GST.

ATTACHMENTS:

Project Summary C-035: View Royal Park Development