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  Business Items  Item #: 10.c.
Regular Council Meeting
Tender Award - Grove Drive Extension Project - Hales
Date: 09/14/2009  
Presenter: D Hales Submitted By: Planning & Infrastructure
Department: Planning & Infrastructure  
Information
Recommendation
That the Grove Drive east and west project be included in the 2009 capital budget and that the project be awarded to Border Paving in the amount of $4,355,501 with a total project budget of $5,940,501.
Purpose
To award a tender to construct two sections of Grove Drive
Background
At the February 13, 2009 Council meeting, Council authorized Administration to apply for funding under the Building Canada Fund - Communities Component program (generally known as the federal stimulus initiative). This grant was for infrastructure projects and would be equally funded by the federal government, the provincial government and the municipality applying for the grant. The City applied for this grant as an arterial road expansion project that included the following components:

Grove Drive east extension (to provide access to Jubilee Park and undeveloped residential areas east of Jubilee Park). This is proposed to extend future east to Pioneer as a rural gravel standard.

Grove Drive west extension (to provide access to the new catholic school and undeveloped residential areas around the school).

The expansion of Century Road from a two lane to a full four lane arterial road.

The City was successful with our application. Council awarded the contract for the Century Road portion of the project on May 5, 2009 to Lafarge construction and the project is underway with a projected opening later this fall. The two Grove Drive components were conditionally approved, under the condition that we submit an environmental assessment which was completed in the past months. Administration recently received all required approvals to proceed with the Grove Drive projects. Concurrent with the environmental study process, we completed detailed design on the projects and a public tender was issued which closed on July 7, 2009 with the following results:

Border Paving          $3,365,501
Lafarge Canada       $3,541,569
Carmacks                 $3,619,118
Sureway                  $3,785,429
Deford                     $3,804,622
Rulam                      $3,929,239
O’Hanlon                 $3,956,403
Standard General    $4,277,514
Earthwise                $4,423,638

The prices submitted are well less than anticipated. Based on the favourable prices received,  Administration is recommending upgrading Grove Drive from Century Road to just east of Greystone Drive. The estimated cost of this addition is $600,000.

A sketch is attached as schedule 1 illustrating the components and limits of the various components of the project.

Administration has worked with Border Paving on numerous similar projects and is confident of their ability to successfully complete this project.

Administration has also been working with the Catholic school division and their consultants on the development of the new high school west of Campsite Road. The school will require access from a collector road north of Grove Drive and west of the school site. Border Paving has agreed to extend their unit costs to complete this work. As the developer is not benefiting from this road, at this time, Administration is recommending that this section of road be included in the project to allow the school to construct the ultimate access to the site. The developer has agreed that when they require use of this road they will reimburse the City the entire amount the City paid to construct it. Administration will be presenting a development agreement for Council consideration documenting this obligation.

As the Building Canad Program did not exist at the time the 2009 budget was approved, this project was not included in the 2009 capital budget.  Administration is recommending that Council amend the 2009 capital budget in consideration of the recent grant funding approval.
Options
That council award the project.

That council not award the project.
Impacts/Consultation

N/A
Implementation/Communication
N/A
Core Strategies

Building Community
Planning for Growth
Fiscal Impact
Financial Considerations:

The total project costs are estimated as follows:

Grove Drive west extension                     $1,977,256
Grove Drive east extension                      $1,388,245
Collector Road                                             $390,000
Grove Drive twining – east of Century        $600,000
Sub Total – proposed Border contract      $4,355,501
Contingency                                                $430,000
Power and Street lighting (Fortis)               $615,000
Engineering and project management        $470,000
Material testing                                             $70,000
Total project cost                                      $5,940,501

The project will be funded partially by the Build Canada grant funding and remaining amount by the offsite road reserve.
Attachments
Grove

City Council and Committee of the Whole agendas and minutes are posted on the City of Spruce Grove website for information purposes only. These agendas may be changed at the discretion of Council by the addition or deletion of items. Anyone reviewing the draft agenda should do so on the understanding that it is subject to change by Council.

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