TO:

CHAIR AND MEMBERS
CIVIC WORKS COMMITTEE
MEETING ON MAY 14, 2019

FROM:

KELLY SCHERR, P.ENG., MBA, FEC
MANAGING DIRECTOR ENVIRONMENTAL AND ENGINEERING
SERVICES AND CITY ENGINEER

SUBJECT:

CONTRACT AWARD: TENDER NO. 19-27
THAMES VALLEY PARKWAY - NORTH BRANCH CONNECTION
(RICHMOND STREET TO ADELAIDE STREET)

RECOMMENDATION
That, on the recommendation of the Managing Director, Environmental and Engineering
Services and City Engineer, the following actions BE TAKEN with respect to the
Thames Valley Parkway North Branch Connection project:
(a)

the bid submitted by J-AAR Excavating Limited at its submitted tendered price
of $6,277,802.15 (excluding HST), for said project BE ACCEPTED; it being
noted that the bid submitted by J-AAR Excavating Limited was the lowest of
six (6) bids received and meets the City's specifications and requirements in
all areas;

(b)

Additional fees for Stage 3 and Stage 4 Archaeological Investigation work to
be completed by Dillon Consulting Limited in the amount of $75,000 (excluding
HST) BE APPROVED; it being noted that this work is required under the
Ontario Heritage Act;

(c)

Dillon Consulting Limited, BE AUTHORIZED to carry out the resident
inspection and contract administration in the amount of $475,635 (excluding
HST), in accordance with Section 15.2 (g) of the Procurement of Goods and
Services Policy;

(d)

the financing for this project BE APPROVED as set out in the Sources of
Financing Report attached hereto as Appendix A;

(e)

the Civic Administration BE AUTHORIZED to undertake all the administrative
acts that are necessary in connection with this project;

(f)

the approval given herein BE CONDITIONAL upon the Corporation entering
into a formal contract for the material to be supplied and the work to be done
relating to this project (Tender 19-27); and,

(g)

the Mayor and City Clerk BE AUTHORIZED to execute any contract or other
documents, if required, to give effect to these recommendations.

PREVIOUS REPORTS PERTINENT TO THIS MATTER
•

Civic Works Committee – February 21, 2018 – Ontario Municipal Commuter
Cycling (OMCC) Program Transfer Payment Agreement;

 •

•
•

Civic Works Committee – August 29, 2017 – Thames Valley Parkway North
Branch Connection, Detailed Design and Tendering, Appointment of
Consulting Engineer;
Community and Protective Services Committee – July 19, 2016 – Thames
Valley Parkway North Branch Connection, Class Environmental Assessment;
Community and Protective Services Committee – August 25, 2014 –
Richmond to Adelaide Street North, Thames Valley Parkway, Environmental
Assessment Study, Appointment of Consulting Engineer.

COUNCIL’S 2019-23 STRATEGIC PLAN
The following report supports the Strategic Plan through the strategic focus areas of
“Strengthening our Community” and “Building a Sustainable City”. The Thames Valley
Parkway North Branch Connection (TVP-NBC) will promote well-being, health and
safety while enabling Londoners to move around the city safely and easily in a manner
that meets their needs. The project recognizes and protects the natural environment
consistent with provincial policies and the City’s Official Plan.
DISCUSSION
Purpose
This report recommends the award of a construction tender to J-AAR Excavating
Limited and the award of contract administration to Dillon Consulting Limited for the
TVP-NBC project which will create a new park pathway linkage between Richmond
Street North and Adelaide Street North along the North Branch of the Thames River
(see Figure 1). Additional fees to meet the archeological investigation requirements of
the Ontario Heritage Act are also included in this report.
Figure 1: Location Map

Background
The City’s Thames Valley Parkway (TVP) is described in London’s Official Plan as “one
of London’s most valuable assets for generating our prosperity” and it is expected to
play a “major role in helping London to attract a quality labour force and investment in

 our city”. The TVP has been developed over the past 30 years providing 42km of
recreational pathway along the three branches of the Thames River. There is an
additional 120km of secondary pathways connecting neighbourhoods to the TVP. This
extensive network of pathways supports a safe, free and fully accessible form of
mobility and active living which is consistently identified as a high priority by Londoners.
The TVP is a key part of the City’s active transportation network with several linkages to
the on-road bike system. As extensive as this network has become, we still have gaps
which need to be filled, as outlined in the City of London’s Bicycle Master Plan, in order
to better serve Londoners.
This project will complete the highest priority gap within the City’s TVP, a one kilometer
stretch between Richmond Street North and Adelaide Street North and it will link more
than 50,000 Londoners in the north-east to the existing TVP, while also fulfilling
recommendations made in a number of City Policy and Master Plan documents
including, but not limited to:
•
•
•
•
•
•
•

The London Plan;
London ON Bikes Cycling Master Plan EA;
Smart Moves 2030 Transportation Master Plan EA;
Age Friendly London Action Plan;
Thames Valley Corridor Plan;
London Strengthening Neighbourhoods Strategy;
Parks and Recreation Strategic Master Plan

An Environmental Assessment (EA) was completed in July 2016 which reviewed and
identified the preferred routing for this connection (See Figure 1). The preferred
alignment includes the construction of two new steel bridges to cross the Thames River,
and easement agreements across three private properties (ie: Sisters of St. Joseph,
Boy Scouts of Canada and University of Western Ontario).

Construction Considerations
There will be three points of construction access. The westerly access point will be
through Ross Park, off of Richmond Street North, for the access to the south side of the
River at the west end of the project. The easterly access will be through the driveway
entrance to the North London Athletic Fields off of Adelaide Street North for access to
the south side of the river at the east end of the project. Access to the north side of the
Thames River will be through an existing watermain easement that extends southerly
from Windermere Road down the east side of the Scouts Canada property and portions
will be through the west side of Western’s property.
This project will also construct a permanent pedestrian/EMS access along an existing
City owned ROW between two residential properties from Tetherwood Boulevard to the
TVP on the north side of the river. This access will be constructed in 2020, and it will
not be used as construction access.
Easement agreements are in place with the three private property owners impacted on
the north side of the Thames River, and they will be kept informed of the progress of the
project.
Construction is anticipated to begin on the temporary access road off of Windermere
Road in June 2019 to access the area on the north side of the river. Construction on
the pathway alignment itself will begin in September 2019 (after the bird nesting
windows close). The fabrication and construction of the two pedestrian bridges will
occur over the winter, with installation to likely occur in the spring of 2020. Substantial
completion of the project is scheduled by end of September 2020.

 Natural Heritage
The Environmental Impact Study completed for this project anticipated no net impact
and included input from the UTRCA, MNRF, EEPAC and the City Ecologists. The
detailed design completed for this project has incorporated all EIS recommendations
and contract administration will include monitoring by qualified ecologists during and
post construction to ensure successful implementation of all EIS recommendations.
Archeological Investigation
The City of London takes a proactive role in the management of archaeological sites
and areas of archaeological potential. As the conservation of archaeological significant
features is a matter of Provincial interest, the City, as proponent and approval authority,
has a responsibility to ensure the appropriate processes are followed. As a result, the
City has implemented an Archaeological Management Plan (2017) to identify areas of
archaeological potential requiring assessment by an archaeologist in advance of
development or site alteration.
The City included Stage 1 and Stage 2 archaeological assessments within the scope of
work for the detailed design assignment of the project. Stage 3 and Stage 4
assessments are not always required, or may only be necessary in localized areas
within a projects limits.
The Stage 1 and 2 archaeological assessments completed for the TVP-NBC have
identified one potentially significant archaeological site which will require, at minimum,
Stage 3 archaeological assessment. A Stage 3 archaeological assessment generally
expands on the fieldwork undertaken during Stage 2 to determine the extent and
cultural affiliation of an archaeological site. If required, a Stage 4 archaeological
assessment would conserve a significant archaeological site either in situ through the
implementation of avoidance and protective measures (for example, a buffer zone) or
documentation and excavation.
The tendered contract has stipulated that work in Stage 3 and 4 areas cannot
commence until after September 1st, 2019 in order to allow sufficient time for these
investigations to be completed. The requirement for Stage 3 and Stage 4 assessments
were unpredictable and required fees not part of the original detailed design
assignment. Civic administration is recommending the detailed design assignment
contract with Dillon Consulting Limited be increased by $75,000 to cover the costs
associated with the completion of the required archaeological assessments for this
project.
Tender Summary
Tenders for the Thames Valley Parkway – North Branch Connection project (T19-27)
were opened on Wednesday, March 20, 2019. Six (6) contractors submitted tender
prices as listed below (excluding HST).

CONTRACTOR

SUBMITTED
TENDER PRICE
($)

CORRECTED
TENDER PRICE
($)

1.

J-AAR Excavating Limited

$6,277,802.15

---

2.

L82 Construction Ltd

$6,472,705.38

---

3.

Frank Van Bussel and Sons
Ltd.

$6,757,674.32

---

 4.
5.
6.

Sierra Bridge Inc.
McLean Taylor Construction
Limited
Dufferin Construction
Company

$7,026,604.25
$7,098,866.53
$7,597,473.30

-------

All tenders have been checked by Dillon Consulting Limited and the Environmental
and Engineering Services Department and include a $600,000 contingency. The
results of the tendering process indicates a competitive process. The tender estimate
prior to tender opening was $6,539,000 (excluding HST).
Contract Administration
The City previously procured Dillon Consulting Limited as the consultant to undertake
the Class ‘C’ Environmental Assessment (EA) and detailed design of this project in
accordance with the Procurement of Goods and Services Policy.
With the consultant’s knowledge of the project, Dillon Consulting Limited was invited
to submit a proposal to carry out the contract administration and resident supervision.
Staff have reviewed the fee submission in detail considering the various activities and
related hourly rates provided. The amount of time allocated to each project task is
consistent with prior projects of a similar nature that have been awarded through a
competitive process.
The continued use of Dillon Consulting Limited on this project for contract
administration is of financial advantage to the City due to the fact the firm has specific
knowledge of the project and has undertaken work for which duplication would be
required if another firm were to be selected.
In accordance with Section 15.2 (g) of the Procurement of Goods and Services Policy,
Civic Administration is recommending that Dillon Consulting Limited be authorized to
carry out the remainder of engineering services as construction administrators to
complete this project for a fee estimate of $475,635 (excluding HST). These fees are
associated with the inspection services necessary to ensure the City receives the
construction product specified.
The City’s requirement for the creation of record drawings following construction
requires the reviewing engineer to seal them on the basis of field verification and
ongoing involvement. This requirement triggers consultant accountability for the
design. Consequently, the continued use of Dillon Consulting Limited who created and
sealed the design drawings is required in order to maintain this accountability process.
The approval of this work will bring the value of the overall consulting assignment to
$1,288,329.50 (excluding HST) including the environmental assessment, detailed
design, archeological assessments and construction administration services.
Financial Considerations
The Thames Valley Parkway-North Branch Connection project is receiving
contributions from provincial government and other sources through the following
programs:
Ontario Municipal Cycling Infrastructure Program (OMCIP)

$ 3,303,752

Contribution from London Community Foundation (LCF)

$ 25,000
Total:

$ 3,328,752

 The February 21, 2018 report to Civic Works Committee estimated the updated total
cost for this project at $6.6 million including detailed design, construction and contract
administration costs. As part of the report, it was recommended that the $3,303,752
from the Ontario Municipal Commuter Cycling (OMCC) Program be allocated to this
project. Council agreed and this money was added to the $3,273,868 million in funds
already available for the project. It should be noted, OMCC funding must be used by
the end of December 2020. Therefore the award of this contract at this time provides an
opportunity for the City to construct this priority infrastructure with less City funding
required. With the reallocated OMCC funding, available funds budgeted for this project
are $6,577,620.
Inclusive of detailed design, contract administration, Stage 3 and Stage 4
archaeological investigations and construction costs, the total project cost is
$7,479,433 (including HST and excluding EA costs of $234,372). This exceeds the
February 2018 estimate by $901,813. (including HST).
Some design changes were encountered following the EA including widening the two
bridge structures from 3.0m to 4.0m to better accommodate the clearance for
maintenance and emergency vehicles along the parkway. Additionally, the project
includes many unique components such as multiple access locations, temporary access
to facilitate construction through private properties (with permission), restricted work
areas in some locations due to environmental constraints, tree and scour protection.
Allowances were made for these at the EA phase, but through the detailed design
process as the design, analysis and approvals were completed the actual costs were
higher than allowed for in the EA.
The overall design team has worked collaboratively to review and economize the design
as much as possible. The approach to the bridge design has emphasized repetition and
simplicity, to allow economies of scale to be realized in the bid price for the two bridges.
Cost effective design elements have been favoured over enhanced design elements.
A factor beyond the City’s control is that the price of steel is quite volatile. The cost of
steel has risen considerably since the EA was finalized in 2016 accounting for most of
this cost increase. Over a two year period, between July 2016 and October 2018, the
commodity price more than doubled. Note, this increase in steel is a straight material
cost, but often influences bid prices for labour and equipment as a representation of
market demand.
The price increase of steel is based on world markets and may be influenced by tariffs
and trade discussions in the media, as well as economic growth around the world.

 $ (CAD) / Metric Tonne

Figure 2: Steel Commodity Price Trend

Source: https://tradingeconomics.com/commodity/steel (accessed March 25, 2019)
In general, City staff have noticed considerable increases in construction costs on
infrastructure projects, indicating an overall upward trend in construction costs. This
increase may be due to the amount of infrastructure work currently available regionally,
thus creating a less competitive market.
Financial Planning and Business Support have worked with Parks Planning to secure
the additional funds from appropriate sources to proceed with construction. To
accommodate this high priority and much needed project within the existing capital
funding envelope for park pathways and bridges, the following projects have been
adjusted: defer a boardwalk upgrade in Lambeth Centennial Park and reprioritize this
project for 2020, and; utilize existing funding from the future TVP pathway link from
Byron to Riverbend, as the EA has not been completed. Upon completion of the EA,
this funding may need to be re-budgeted, depending on the preferred solution.
Anticipated annual operating cost to budgets in 2021 and subsequent years, associated
with the additional infrastructure is summarized below:
Service Area
Roadside Operations
Parks Operations

Increase in Annual
Operating Costs
$ 4,000
$29,000

Anticipated additional annual parks operating costs associated with this Park
infrastructure is estimated at $29,000/year and Roadside Operations at $4,000/year.
These operating costs may be eligible for assessment growth funding in the future.
A detailed source of financing accompanies this award report in Appendix A.

 CONCLUSION
Civic Administration has reviewed the tender bids and recommends J-AAR Excavating
Limited be awarded the contract for the Thames Valley Parkway, North Branch
Connection project.
Additional funds are required to complete the Stage 3 and Stage 4 Archeological
Investigations in compliance with the Ontario Heritage Act.
Dillon Consulting Limited has demonstrated an understanding of the City requirements
for this project, and it is recommended this firm be the consulting engineer for the
purposes of 2019-2020 contract administration and inspection services as it is in the
best financial and technical interests of the City.
Anticipated additional annual parks operating costs associated with this Park
infrastructure is estimated at $29,000/year and Roadside Operations at $4,000/year.

Acknowledgements
This report was prepared with assistance from Stephanie Wilson, Jeff Bruin and Andrew
Macpherson of Parks Planning and Operations, Alan Dunbar and Janice Brown of
Financial Planning and Business Support, Kyle Gonyou, Heritage Planner, Jane Fullick
C.E.T., Senior Technologist and Karl Grabowski, Transportation Design Engineer of the
Transportation Planning and Design Division.
PREPARED BY:

PREPARED BY:

GARFIELD DALES, P. ENG.
TRANSPORTATION ENGINEER
TRANSPORTATION PLANNING AND
DESIGN

SCOTT STAFFORD
MANAGING DIRECTOR, PARKS AND
RECREATION

REVIEWED AND CONCURRED BY:

RECOMMENDED BY:

DOUG MACRAE, P. ENG., MPA
DIRECTOR, ROADS AND
TRANSPORTATION

KELLY SCHERR, P. ENG., MBA, FEC
MANAGING DIRECTOR,
ENVIRONMENTAL AND ENGINEERING
SERVICES AND CITY ENGINEER

Attachment:
cc:

Appendix A – Source of Financing

Andrew Macpherson, Parks Planning and Operations
Jeff Bruin, Parks Planning
Alan Dunbar, Financial Planning and Business Support
Janice Brown, Financial Planning and Business Support
Sabrina Stanlake-Wong, Dillon Consulting
Anibal Santos, J-AAR Excavating Limited