GUELPH/ERAMOSA – Council here has approved the resurfacing of two roads and a multi-sport court for a total project cost of $212,460, slightly over the approved budget for the work.
On April 4, council received a report on tender results for the resurfacing of Kaine Hill Drive and Milton 2nd Line, which also included a provisional item for the resurfacing of a multi-sport court at Lloyd Dyer Park – a parks and recreation project.
Council awarded the tender for the resurfacing of the two roads to Armstrong Paving and Materials Group Ltd. for $197,061, including HST, and approved the completion of the resurfacing of the multi-sport court, which is included in the total tender price and funded by the approved parks and recreation budget for 2022.
Council also approved the allocation of $18,000 from the Ontario Community Infrastructure Fund (OCIF) grant funding reserve to complete the public works projects.
Public works director Harry Niemi noted the 2022 budget included separate capital projects for the resurfacing of Kaine Hill Drive and Milton 2nd Line.
As the projects are similar, they were combined into a single tender and a provisional item was added for the paving of the multi-sport court at Lloyd Dyer Park.
“It was provisional just to hopefully secure some decent pricing for parks to get that multi-sport court done,” Niemi explained.
The parks and recreation capital project list included upgrades to the existing asphalt surface, including resurfacing, line painting, basketball nets and upgraded lighting.
Only the paving portion of the parks and recreation project was included in the tender.
The notice of tender for the projects was posted to the township website and six bids were received prior to closing on March 24.
The township’s consultant, R.J. Burnside and Associates Limited, reviewed the tenders and recommended approving the low tender submitted by Armstrong Paving and Materials Group Ltd. for $197,061.
Looking at the financial impact, Niemi noted the township is slightly over-budget for the public works component.
As part of the 2022 budget, Kaine Hill Drive resurfacing was approved at $46,000, with Milton Second Line resurfacing listed at $134,000 for a total project cost of $180,000.
Under the 2022 budget, resurfacing for the Lloyd Dyer multi-sport court was approved in the parks and recreation budget for $15,000, pushing the total approved budget cost to $195,000.
After approving the low bid from Armstrong paving at $197,061, the total project cost tops out at $212,460 after design and construction inspection costs – roughly $18,000 over the budgeted amount.
While the tendered price is within the combined approved budget for all three components, Niemi noted “we were $18,000 short taking into account non-recoverable HST and an estimate on the engineering and inspection costs associated with it.
“Again, not unexpected based on the two previous bridge projects, we’re seeing that trend,” he added. “The [asphalt cement] index is up there with fuel and everything.”
“We are going to see this trend with the inflation and so forth,” Mayor Chris White responded.
“It’s great to have these departments doing these collaborations; it makes absolute sense for residents and taxpayers so it’s nice to see a practical example of it in front of us.”
Staff recommended the projects proceed as both roads have been identified as needing resurfacing through asset management planning.
“Staff would like to move forward with these and is requesting council approval to increase the funding for these,” Niemi said, referring to the increased cost above the approved $180,000.
Council approved the resurfacing for all three projects, awarding the contract to Armstrong Paving and Materials Group Ltd., and approved the additional funding from the OCIF reserve to complete the public works portion.
Funding for the projects was approved from a combination of the OCIF reserve, resurfacing reserves and the funding from parks and recreation.
