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HomeMy WebLinkAboutFCS-13-152 - T13-030 - Sewer Pipe BurstingStaff Report I r finance and Corporate Services Department wvwuukitchenerra REPORT TO: Committee of the Whole DATE OF MEETING: 2013 -10 -07 SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200 ext. 7214 PREPARED BY: Larry Gordon, Director of Supply Services, 519- 741 -2200 ext. 7214 WARD(S) INVOLVED: 8, 9, 10 DATE OF REPORT: 2013 -09 -27 REPORT NO.: FCS -13 -152 SUBJECT: T13 -030 — Sewer Pipe Bursting RECOMMENDATION: That Tender T13 -030 — Sewer Pipe Bursting, be awarded to McGillivray Trenchless Limited, Kitchener, Ontario at their tendered price of $156,169.20, including provisional items and contingencies of $30,569., plus H.S.T. of $20,302., for a total of $176,471.20. BACKGROUND: The work required under this contract will consist of pipe bursting by static /pneumatic method, approximately 20 separate sanitary sewer laterals from the sewer main to the property line or inside the sewer cleanout. Subsequent to the CCTV camera inspections of sanitary sewer laterals, a priority list of the deteriorated sanitary sewer laterals has been created by the City Operations Staff. Staff reviews the available data to determine the rehabilitation methods for deteriorated sewer laterals. The sanitary sewer laterals selected for trenchless sewer lateral rehabilitation, under this contract, have met the criteria for the Pipe Bursting Method. The work will also include pipe bursting 60 meters of mainline 300 mm diameter storm sewer pipe to rectify a deficient piece of concrete storm pipe on Margaret Ave. The new Pipe Burst Pipe gives the old pipe new structural integrity that prolongs the life expectancy of the old pipe by up to 80 years. This method of construction requires minimal open cut digging and can be completed without any major disruptions to the traffic and local access. IL -1 REPORT: Tenders were advertised publicly on the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering Information System. Documents were downloaded by five (5) interested parties, and by the closing date of Thursday, September 26, 2013, one (1) tender had been received. The tenders were reviewed by R. Trussler, Engineering Construction Project Manager, who concurs with the above recommendation. The following tenders were received: PH Prira McGillivray Trenchless Limited Kitchener ON $176,471.20 * ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Theme: Financial Management Strategic Direction: Ensure responsible use of public funds within a supportive policy framework. The City of Kitchener's purchasing policies and practices ensure openness, fairness and transparency in the procurement of goods and services. IL -2 FINANCIAL IMPLICATIONS: In addition to the costs anticipated in this tender, the design and implementation of these types of projects typically involves city staff and resources from across the corporation. These costs are included in the line item "Projected Costs: Staff Time /Permitting /Material testing ", and will be itemized when they exceed $125,000. Included in this line item are staff time and expenses for all city staff in support of the project such as Engineering, Kitchener Utilities, and Transportation Planning. The line item also includes all regulatory permitting, geotechnical and material testing, detouring and traffic control, alternate access and parking requirements and any other miscellaneous costs. Projects utilizing in- house staff will include costs for inspection during construction and contract administration. The net cost for this tender (A), is fair and reasonable for a purchase of this scope and the upset limit is within the budget allowance (B) provided within the budget. Funding for this purchase is included within the approved capital budget. The estimated surplus (E) will remain within the project to fund future work. Tender T13 -030 Sanitary Sewer Pipe Bursting The total budget for all phases of this project is Estimated Cost for this Phase of Work Tender T13 -030 costs, including HST less: HST rebate on tender Net Cost Being Awarded Costs Incurred to Date Projected Costs: Staff Time /Permitting /Material Testing Total Estimated Cost for this Phase of Work Budget for this Phase of Work Sanitary Utility Transfer from SWM Maintenance Program $ 399,300.00 176,471.20 (17,553.41) 158,917.79 A 31,000.00 189,917.79 C 369,300.00 30,000.00 Total Budget for this Phase of Work 399,300.00 B Estimated Surplus /(Deficit) for this Phase of Work (B - C) 209,382.21 D Balance in account, net of encumbrances (209,270.53) Total Estimated Surplus /(Deficit) 111.68 E COMMUNITY ENGAGEMENT: Potential vendors are informed of bid opportunities through the public posting of bid documents as outlined in the City's Purchasing By -Law. Vendors, local media and the general public are informed of purchasing recommendations to Council through the public reports which are included with the Council agenda the week prior to the Council meeting. ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services IL -3