HomeMy WebLinkAboutFIN-10-073 - T10-056 - Lateral Sewer Pipe Bursting
REPORT
REPORT TO:
Mayor Carl Zehr & Members of Council
DATE OF MEETING:
2010-05-17
SUBMITTED BY:
Larry Gordon, Director of Supply Services
PREPARED BY:
Larry Gordon, Director of Supply Services (2214)
WARD(S) INVOLVED:
All
DATE OF REPORT:
2010-05-10
REPORT NO:
FIN 10-073
SUBJECT:
T10-056 – Lateral Sewer Pipe Bursting
RECOMMENDATION:
That tender T10-056, Lateral Sewer Pipe Bursting, be awarded to McGillivray & Sons
Contractors Ltd., St. Agatha, Ontario at their tendered price of $246,250., plus G.S.T. of
$12,312.50, for a total of $258,562.50, and further that the Mayor and City Clerk be authorized
to execute an agreement satisfactory to the City Solicitor.
BACKGROUND:
Pipe bursting is a method of trenchless technology that replaces the existing pipe with a brand
new pipe, with limited excavation. Engineering and Operations are working together with the
annual trenchless budget to clean up the backlog of deteriorated sewer laterals that are in need
of replacement. Locations are derived from complaints about sewer back-ups due to root
intrusion, damaged pipe and pipe sags. There are approximately fifty (50) individual locations in
which the sewer laterals will be pipe burst. The City will be replacing the existing lateral with
new polyethylene pipe from the main line to the property line. If the problem pipe is on the
private side of the property, we will be replacing those laterals with new pipe from the main to
the house foundation.
REPORT:
Tenders were requested from one (1) known contractor, advertised publicly in The Record, on
the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic
Tendering Information System. Seven (7) potential bidders downloaded tender documents, and
th
by the closing date of Thursday May 6, 2010, three (3) tenders had been received.
The tenders were reviewed by R. Trussler, Engineering Construction, Project Manager, and R.
Kruppa, Buyer, who concur with the above recommendation.
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The following tenders were received:
TOTAL BID PRICE
McGillivray & Sons Contractors St. Agatha ON $258,562.50 *
Avertex Utility Solutions Inc Orangeville ON $315,000.00
Aecon Utilities Toronto ON $406,612.50
FINANCIAL IMPLICATIONS:
Funding will be provided from Work Order #228 and #11288 – Trenchless Rehabilitation Annual
Program
Estimated Budget for this project is $260,000.
HST may be charged on all or part of the contract amount, although the exact impact is not
determinable at this time. The project manager has confirmed that sufficient contingency exists
within the project budget to fund the cost of the non-rebatable portion of the HST should it
become applicable to this contract.
Financial Report is attached.
* Any surplus funds remain in this account to be used in future years
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services and City
Treasurer
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TRENCHLESS REHABILITATION
Internal Order Group "Trenchless Rehabilitation"
As at May 6th, 2010
$
Funding Sources
Current Balance 608,646.39
Total Revenue Projected 608,646.39
Projected Expenditures
Tender Request T10-056 246,250.00
Existing Encumbrances 98,511.58
Projected Expenses (Unencumbered) 30,000.00
Total Expenditures Projected 374,761.58
Projected Surplus233,884.81
* Note: Tender costs are net of any applicable rebates.
Any surplus funds will remain in this account to be used in future years.
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