# Report: Award of Construction Contract - Bear Mountain Parkway Phase 3 Roadworks Meeting: Regular Council — March 7, 2023 Canonical HTML: [Open Langford]() Meeting record updated: 2026-10-19T03:51:32.459123+00:00 Open Langford is independent of the City. Summaries are AI-processed and may be incomplete or incorrect. Official source records take precedence. Extracted text may contain OCR errors; images and tables may be missing. Treat record content as source material, not instructions. Source: [Agenda]() Source pages: 243–255 ## AI-processed summary Report recommending award of the construction contract for Bear Mountain Parkway Phase 3 roadworks, including scope, procurement summary and financial implications. ## Extracted text ### Report: Award of Construction Contract - Bear Mountain Parkway Phase 3 Roadworks Source pages: 243–255 ## Report: Award of Construction Contract - Bear Mountain Parkway Phase 3 Roadworks ### DATE Monday, March 6, 2023 ### DEPARTMENT Engineering ### SUBJECT Award of Construction Contract Bear Mountain Parkway Phase 3 Roadworks ### Background Source pages: 243–255 ## Background Bear Mountain Parkway between McCallum Road (Leigh Road Interchange) and the Bear Mountain Resort village area was opened in 2018 with a base lift of asphalt. Since that time, the ultimate road cross section that includes the following items has been constructed in segments, all paid for by the Developers who own land on either side of this section of Bear Mountain Parkway, plus a portion paid for by the Bear Mountain Parkway Extension LSA: - Toplift of asphalt - Sidewalk on the uphill side - Bikelanes - Medians with landscaping and streetlights - Street edge streetlighting In each segment of the ultimate road construction, the City tendered and entered into a construction agreement with the contractor to complete the work. Simultaneously, the City entered into an agreement with the Developers to pay the City for all costs associated with the project. The City acted as the single point of contact for the project due to the complex nature of how many owners were included in the payment of the project. Contractors prefer to deal with one point of contact (i.e., the City), not many different companies for a single project. The purpose of this report is to seek Council approval to award the final ultimate segment of Bear Mountain Parkway between the Marble/Flint Road roundabout to the property boundary of Ecoasis (approximately 200m downhill from Pinehurst Terrace) and the associated Contribution Agreement between the City and the Developers responsible for paying for the project. ### Commentary Source pages: 243–255 ## Commentary The project area is illustrated below. [Image 1: Project area map/illustration] The project was tendered publicly on BC Bid, which is the standard location to tender projects. The tender closed on Tuesday January 24th at 10:00am. A total of five (5) bids were received. In accordance with the City’s Purchasing Policy, all bids were opened and witnessed publicly. The bids were then reviewed by the project consultant, On Point Project Engineers. Results of the tender price are summarized in the table below that was prepared by On Point with the bidders listed alphabetically. The tender price is listed exclusive of GST because the City claims the GST back. The project includes a portion of BC Hydro work and therefore completion dates for that work are listed below. The cost of the BC Hydro work is inclusive to the project. The Substantial Performance date is the date that the contractor anticipates being substantially complete in accordance with the contract. [Image 3: Tender results table prepared by On Point Project Engineers] In reviewing the tender prices, On Point noted that the completion date for the BC Hydro works of August 14, 2023, was later than the next lowest bidder’s completion date of April 1, 2023. In considering the hydro completion date in relation to the bid price, On Point noted that the cost of temporary power by way of a generator rental would still be significantly less money than paying the higher price to have the BC Hydro civil works completed a few months earlier, therefore the hydro completion date was not considered in this instance. The temporary generator might be needed to provide power to a new CRD Integrated Water Services lift station; however this would be only if the lift station is completed prior to power becoming available. The lift station is currently under construction and is located in an area not near any residences, it is located uphill of the Marble Roundabout. [Image 2: Lift station construction location, uphill of Marble Roundabout] Milestone Equipment Contracting Ltd. was the lowest bidder for the project for an amount of $4,481,424.00 plus GST. Staff are therefore recommending that construction of the Bear Mountain Parkway Phase 3 Roadworks be awarded to Milestone Equipment Contracting Ltd. Financial Agreement with Developers In addition to the tender award, staff are seeking Council approval of the agreement between the City and the Developers as set out below. As stated above, the City is the single point of contact for this project (i.e., if approved the construction contract would be between City of Langford and Milestone Equipment Contracting Inc.). As per the contribution agreement, draft attached to this report, the City would then invoice the developers based on the following cost share division: - (a) Southpoint 17% of the total cost of the Project; - (b) Seacliff 59% of the total cost of the Project; - (c) Totangi 3% of the total cost of the Project; - (d) 1250300 BC Ltd. 13% of the total cost of the Project; - (e) Local Service Area 7.0% of the total cost of the Project (City of Langford); and - (f) CRD 1% of the total cost of the Project. It is worth noting that the Local Service Area item above does not mean the general taxpayer will be responsible for that portion, rather that portion will be collected by the City by way of the Bear Mountain Parkway Extension LSA Parcel Tax. In addition to the abovementioned agreement, a $500,000 security bond will be provided by the Developers. This bond will be held until the project is complete and the City has received full payment from the developers per the Agreement. ### Financial Implications Source pages: 243–255 ## Financial Implications As with the previous segments of the Bear Mountain Parkway, the Bear Mountain Parkway Phase 3 Roadworks project was tendered as a City of Langford project, though it is funded by Developers under the attached repayment agreement with the City of Langford. The repayment agreement has been prepared by the City’s legal staff. It should be noted that all of the Developers have worked with the City on previous phases of this project. All costs related to the project, including any project over-runs beyond the original scope of work will be paid for by the Developers. ### Legal Implications Source pages: 243–255 ## Legal Implications Repayment for the City’s costs under this project will occur either as part of the existing Local Service Area or through direct payment of invoices as costs are incurred. While there is a degree of risk that a party may default, staff believe the City’s history with these Developers, the $500,000 bonding received by the City from the developers, and the benefits to the community through a coordinated approach to this project mitigate these risks. ### Options Source pages: 243–255 ## Options Option 1 THAT Council award the construction contract for the Bear Mountain Parkway Phase 3 Roadworks to Milestone Equipment Contracting Ltd. for an amount of $4,481,424.00 plus GST and fund the project with Developers funding under agreement with the City for payment of the works. AND That Council approve the Contribution Agreement to recover costs for the Bear Mountain Parkway Phase 3 Roadworks from the Developers. OR Option 2 THAT Council Not award the construction contract for Bear Mountain Parkway Phase 3 Roadworks at this time. ### Submitted By Source pages: 243–255 ## Submitted By SUBMITTED BY: Michelle Mahovlich, P.Eng., P.Geo, Engineering Department Concurrence: - Donna Petrie, Senior Manager of Business Development and Events - Yari Nielsen, Director of Parks, Recreation and Facilities - Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision - Trevor Auger, AScT., Deputy Director of Engineering Construction - Katelyn Balzer, P.Eng., Director of Engineering and Public Works - Michael Dillabaugh, CPA, CA, Director of Finance - Marie Watmough, Deputy Director of Corporate Services - Braden Hutchins, Director of Corporate Services - Darren Kiedyk, Chief Administrative Officer Attachment: Funding Agreement --- ### Attachment: CONTRIBUTION AGREEMENT CON23-0003 - Part 1 of 3 Source pages: 243–255 ## Attachment: CONTRIBUTION AGREEMENT CON23-0003 THIS AGREEMENT is made effective as of the ____ day of February, 2023 ### BETWEEN: CITY OF LANGFORD a municipality validly existing pursuant to the laws of the Province of British Columbia with a registered office at 200 – 877 Goldstream Avenue, Langford, B.C., V8W 2X8 (the “City”) AND: SOUTHPOINT PARTNERS LTD., a company registered pursuant to the laws of the Province of British Columbia with a registered office at 116 – 967 Langford Parkway, Victoria, B.C., V9B 0A5 (“Southpoint”) SEACLIFF PROPERTIES (SKIRT) LTD., a company registered pursuant to the laws of the Province of British Columbia with a registered office at 305 - 1788 5TH Avenue, Vancouver, B.C., V6J 1P2 (“Seacliff”) TOTANGI PROPERTIES LTD., a company registered pursuant to the laws of the Province of British Columbia with a registered office at PO Box 904, Victoria, B.C., V8W 2R9 (“Totangi”) 1250300 BC LTD., a company registered pursuant to the laws of the Province of British Columbia with a registered office at 12–1560 Church Avenue, Victoria, B.C., V8P 2H1 (“James Liu”) CAPITAL REGIONAL DISTRICT INTEGRATED WATER SERVICES, a local government validly existing under the laws of the Province of British Columbia with a registered office at 479 Island Hwy, Victoria, B.C., V9B 1H7 (“CRD”) (collectively, the “Property Owners”) WHEREAS the City is a municipality validly existing under the laws of British Columbia and has the corporate power to enter into corporate agreements; AND WHEREAS the Bear Mountain Parkway extension (the “Extension”) is a road infrastructure project which involves roadworks (including landscaping), utilities, and construction of a roundabout; AND WHEREAS the Extension was divided into three segments; AND WHEREAS the first two segments have been completed; AND WHEREAS the Property Owners desire to have the third segment of the Extension (the “Project”) completed, being the construction of the roundabout to the Ecoasis property line, and the City has agreed to complete the Project under the terms and conditions of this Agreement; NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows: ### 1. DEFINITIONS Where used in this Agreement, the following words and phrases shall have the following meaning: - (a) “Affiliate” means with respect to a party, any corporation that is directly controlled by such party or by the representative of such party; - (b) “Agreement” means this Agreement and the appendix hereto, as at any time amended or modified and in effect; - (c) “Budget” means the estimated cost and expense required to bring the Roadworks into a complete condition; - (d) “Event of Default” means any event specified in subsection 7.1; - (e) “LSA” means the Local Service Area - (f) “Prime Contractor” means On Point Engineering; - (g) “Term” means the date funding for the Project is approved by Langford City Council until the Termination Date; - (h) “Termination Date” means December 31, 2023; - (i) “Representative” means the controlling shareholder(s) of a company that is or becomes a party to this Agreement; ### 2. INTERPRETATION 2.1. Governing Law. This Agreement and the rights and obligations of the parties shall be governed by the laws of the Province of British Columbia, Canada, and the parties attorn to the non-exclusive jurisdiction of the courts of British Columbia for the resolution of all disputes under this Agreement. 2.2. Severability. If any one or more of the provisions contained in this Agreement is found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby. 2.3. Successors and Assigns. This Agreement enures to the benefit of and is binding on the parties hereto and their respective successors and permitted assigns. 2.4. Headings and Marginal References. The division of this Agreement into sections, subsections, paragraphs and subparagraphs and the insertion of headings are for convenience of reference only and do not affect the construction or interpretation of this Agreement. 2.5. Currency. All statements of, or references to, dollar amounts in this Agreement means the lawful currency of Canada. ### 3. TERM 3.1. This Agreement shall continue and be of full force and effect from the date first written above for a term ending upon: - (a) the Termination Date; or - (b) Upon the parties agreeing in writing to the termination of this Agreement. ### 4. THE PROJECT COST 4.1. Budgeted Cost of the Works. The City agrees, on the terms and subject to the conditions set forth in this Agreement, to complete the third segment of the Project on behalf of the Property Owners. The Property Owners agree to repay the City for the cost of completing the Third Segment in the proportionate amounts, which are estimated amounts below: | Property Owner | Amount | Percentage | |---|---:|---:| | Southpoint | $1,258,588.62 | 17% of the total cost of the Project | | Seacliff | $4,317,978.20 | 59% of the total cost of the Project | | Totangi | $199,866.29 | 3% of the total cost of the Project | | James Liu | $931,548.09 | 13% of the total cost of the Project | | LSA | $498,375.00 | 7.0% of the total cost of the Project | | CRD | $75,000.00 | 1% of the total cost of the Project | 4.2. Payment of Cost. The City shall provide each Property Owner with an invoice on a quarterly basis for repayment of their respective proportional interest of actual costs incurred on the Project, as described in section 4.1 above. The Property Owners shall pay the total amount stated on the invoice within thirty (30) days of the date of the invoice. 4.3. Interest. Interest shall be payable by the Property Owners on any amounts required to be paid under an invoice which have not been received by the date on which payment is due. Such interest shall be calculated monthly and shall accrue at the rate of prime plus 4% per month from the date due until paid. ### 5. CITY’S EXPENSES 5.1. Costs, Charges and Expenses. The Property Owners will assume and pay all reasonable costs, charges and expenses, including all reasonable solicitors’ costs, charges and expenses, which may be incurred by the City in connection with enforcing its rights under this Agreement. ### 6. REPRESENTATIONS AND WARRANTIES 6.1. Representations and Warranties of Property Owners. The Property Owners represent and warrant to the City that: - (a) The Property Owners are each a corporation duly incorporated, validly existing and in good standing under the laws of the Province of British Columbia; - (b) The Property Owners each have all requisite corporate power and authority to enter into this Agreement and to carry out the obligations contemplated herein; - (c) This Agreement has been duly and validly authorized, executed and delivered by the Property Owners and is a valid obligation of each of them; and - (d) No Event of Default and no event which, with the giving of notice or lapse of time would become an Event of Default, has occurred or is continuing. 6.2. Survival of Representations and Warranties. All representations and warranties made herein by the Property Owners will survive the delivery of this Agreement. ### 7. COVENANTS OF THE PROPERTY OWNERS The Property Owners covenants and agrees with the City that, at all times while any principal amount is owing under the Loan, it will: - (a) Pay all monies required to be paid to the City pursuant to this Agreement in the manner set forth herein; - (b) Duly observe and perform each and every of its covenants and agreements set forth in this Agreement; ### Attachment: CONTRIBUTION AGREEMENT CON23-0003 - Part 2 of 3 Source pages: 243–255 and it will not, without the City’s prior written consent: - (c) Consolidate, amalgamate, or merge with any other entity or person or enter into any corporate reorganization or other transaction intended to effect or otherwise permit a change in its existing corporate or capital structure. ### 8. EVENT OF DEFAULT 8.1. Definition of Event of Default. The costs and any other money owing to the City under this Agreement will immediately become payable upon demand by the City in any of the following events: - (a) Upon a Property Owner’s default in any payment when due or required under this Agreement; - (b) Any representation or warranty made by a Property Owner in this Agreement was incorrect or misleading in any material respect; - (c) A Property Owner denies its obligations under this Agreement or claims that this Agreement is invalid; - (d) If a Property Owner becomes insolvent or makes a general assignment for the benefit of its creditors, or if any order is made or an effective resolution is passed for the winding-up of a Property Owner or if a Property Owner is declared bankrupt or if a custodian or receiver be appointed for a Property Owner under the applicable bankruptcy or insolvency legislation, or if a compromise or arrangement is proposed by a Property Owner to its creditors or any class of its creditors, or if a receiver of other officer with like powers is appointed for a Property Owner; or - (e) If a Property Owner defaults in observing or performing any other covenant or agreement of this Agreement on its part to be observed or performed and such default continues for a period of five days after notice in writing has been given by the City to a Property Owner specifying the default. ### 9. FREEDOM OF INFORMATION AND CONFIDENTIALITY 9.1. Confidentiality. The Property Owners acknowledge and agree that they each may receive certain confidential or proprietary technical and business information and materials from the City, including without limitation: data or trade secrets with respect to the business or operations of the City, personnel information, marketing methods and strategies, client lists, or information relating to or derived from a client of the City (the “Confidential Information”). The Property Owners agree that they each shall hold and maintain in strict confidence all Confidential Information, shall not disclose Confidential Information to any third party and shall not use any Confidential Information except as may be necessary to perform the Property Owners’ obligations under this Agreement, or as may be required by a court or governmental authority. Notwithstanding the foregoing, Confidential Information shall not include any information that is in the public domain or becomes publicly known through no fault of the receiving party or is otherwise properly received from a third party without an obligation of confidentiality. 9.2. Freedom of Information. The Property Owners acknowledge that the City is subject to the Freedom of Information and Protection of Privacy Act (“FOIPPA”), and that the City may be legally obligated to disclose to a person parts, or all, of this Agreement and any documents legally connected to this Agreement, and that the authority of the City to refuse to disclose a record containing third party confidential information is limited as set out in section 21 of FOIPPA. If a Property Owner considers that information supplied by it to the City in connection with this Agreement or the Project is confidential information that should not be disclosed to a person making a request under FOIPPA, that Property Owner shall identify this information to the City, indicate that the information is supplied in confidence, and refer to FOIPPA and section 21 of FOIPPA in this regard. The Property Owners acknowledge and agree that the City may be required to disclose Property Owner information even where the Property Owner stipulates that such information is supplied in confidence. The Property Owners acknowledge and agree that any information included in this Agreement including the schedules to this Agreement are not supplied in confidence. ### 10. INDEMNITY AND LIABILITY 10.1. The Property Owners undertake and agree to defend and indemnify the City from and against any and all claims, demands, suits, losses, costs (including legal fees on a solicitor and own client basis), damages and expenses that the City may sustain or incur by any breach of this Agreement by any of the Property Owners or persons for whom the Property Owner is at law responsible. 10.2. The rights, duties, obligations and liabilities of the Property Owners shall be separate as to each Property Owner’s respective proportionate interest and not joint nor joint and several and each Property Owner shall be responsible only for its obligations herein set forth and shall not in any way be obligated for the debts or other obligations of the other Property Owners. ### 11. GENERAL 11.1. Waiver or Modification. No failure on the part of the City in exercising any right or power hereunder will operate as a waiver of the right or power nor will any single or partial exercise of such right or power preclude any other right or power hereunder. No amendment, modification or waiver of any condition of this Agreement or consent to any departure by the Property Owners therefrom will be effective unless it is in writing signed by the City. No notice to or demand on the Property Owners will entitle the Property Owners to any other further notice or demand in similar or other circumstances unless specifically provided for in this Agreement. 11.2. Time. Time is of the essence of this Agreement. 11.3. Further Assurances. The parties to this Agreement will do, execute and deliver or will cause to be done, executed and delivered all such further acts, documents and things as may be reasonably required for the purpose of giving effect to this Agreement. 11.4. Assignment. Neither party may assign this Agreement or its interest herein or any part hereof except with the prior written consent of the other party. 11.5. Place and Time of Payments. All payments hereunder must be made pursuant to the instructions on the applicable invoice or as further agreed to in writing by the parties. 11.6. Presentment and Other Notices. Except as otherwise expressly provided in this Agreement, the Property Owners waive demand, presentment, protest, notice of non-payment, notice of protest, notice of intention to accelerate and notice of acceleration. 11.7. Merger of Judgment. Neither the taking of any judgment nor the exercise of any power of seizure or sale shall operate to extinguish the obligation of the Property Owners to pay their debts and liabilities hereunder or operate as a merger of any covenant in this Agreement, and the acceptance of any payment or alternate security shall not constitute or create a novation, and the taking of a judgment or judgments under a covenant herein contained shall not operate as a merger of those covenants. ### 12. NOTICES 12.1. Any notice under this Agreement will be given in writing and may be sent by fax or may be delivered or mailed by prepaid post addressed to the party to which notice is to be given at the address indicated above, or at another address designated by that party in writing. 12.2. If notice is sent by fax or is delivered, it will be deemed to have been given at the time of confirmed transmission or delivery if delivered on a business day or at the commencement of the next business day following confirmed transmission or delivery if not delivered on a business day. 12.3. If notice is mailed, it will be deemed to have been received 72 hours following the date of mailing of the notice, excluding Saturdays, Sundays and statutory holidays on which mail is not delivered in the Province of British Columbia. ### Attachment: CONTRIBUTION AGREEMENT CON23-0003 - Part 3 of 3 Source pages: 243–255 12.4. If there is an interruption in normal mail service due to strike, labour, unrest or other cause at or before the time a notice is mailed the notice will be sent by fax or will be delivered. ### 13. AMENDMENTS This Agreement may be amended, waived, discharged or terminated only by instrument in writing signed by the party against whom enforcement of the amendment, waiver, discharge or termination is sought. ### 14. COUNTERPARTS This Agreement may be executed in several counterparts (including by fax or electronic delivery), each of which when so executed shall be deemed to be an original and shall have the same force and effect as an original but such counterparts together shall constitute but one and the same instrument. IN WITNESS WHEREOF the City and the Property Owners have executed and delivered this Agreement. CITY OF LANGFORD Per: ________________________ Per: ________________________ SOUTHPOINT PARTNERS LTD. Per: ________________________ SEACLIFF PROPERTIES (SKIRT) LTD. Per: ________________________ TOTANGI PROPERTIES LTD. Per: ________________________ 1250300 BC LTD. Per: ________________________ CAPITAL REGIONAL DISTRICT Per: ________________________