HomeMy WebLinkAboutINS-13-108 - Subcontracting Services to Gas Pipeline ContractorStaff Re wry
Infrastructure 5er�rrres department www1itchener ra
REPORT TO: Committee of the Whole
DATE OF MEETING: November 25, 2013
SUBMITTED BY: Pauline Houston, Deputy CAO, Infrastructure Services,
519- 741 -2600 x 4646
PREPARED BY: Sylvie Eastman, P.Eng. Utilities Engineer, 519 - 741 -2600 X
4178
WARD(S) INVOLVED: All
DATE OF REPORT: October 23, 2013
REPORT NO.: INS -13 -108
SUBJECT: SUBCONTRACTING SERVICES TO GAS PIPELINE
CONTRACTOR
RECOMMENDATION:
That the Director of Utilities is hereby authorized to execute on behalf of the Corporation
of the City of Kitchener subcontractor safety documentation pertaining to Kitchener
Utilities gas main replacement projects; said documentation to be to the satisfaction of
the City Solicitor.
BACKGROUND:
In July 2013, the Ministry of Labour responded to a complaint against Kitchener Utilities' gas
pipeline construction contractor, Link -Line Contractors Ltd., regarding traffic management on
David Street. During the course of their investigation, the MOL determined that the Constructor
relationship between the City of Kitchener and Link -Line was unclear, and issued orders against
the City. The MOL subsequently agreed that City of Kitchener forces, including Kitchener
Utilities and paving crews, may act as subcontractor to the gas pipeline construction contractor,
who retains Constructor responsibilities, including responsibility for health and safety. The MOL
further determined that the requirement to subcontract applies only to gas main replacement
projects; the gas pipeline construction contractor is the Constructor for new gas main and
service installation projects.
REPORT:
When acting as a subcontractor to the gas pipeline construction contractor, the City of Kitchener
will provide subcontractor safety documentation and invoice for labour and equipment. The gas
pipeline construction contractor will invoice the City of Kitchener for the amount billed plus 20 %,
to cover their costs associated with Constructor responsibilities, including health and safety.
This will document the Constructor /subcontractor relationship in the event of any future
investigation by the MOL.
For the remainder of the 2013 construction season, Kitchener Utilities will perform activities
such as work on customer meters and abandoning gas mains that have been replaced, and the
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Staff Re wry
Infrastructure 5er�rrres department
www1itchener ra
gas pipeline construction contractor will repair concrete and asphalt pavement cuts with hot mix
asphalt.
When the new gas pipeline construction contract takes effect in approximately March 2014,
Kitchener Utilities will perform activities as noted above, and the City of Kitchener will perform
pavement restoration.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Using City of Kitchener forces to the extent practical relates to the Foundation Plan — Efficient
and Effective Government — Asset Management, Dependable Services by ensuring staff have
ongoing opportunities to work on the gas distribution system so they will be able to respond
efficiently in the event of an emergency.
FINANCIAL IMPLICATIONS:
Costs will be assessed on an ongoing basis. Significant financial impact is not anticipated
because the 20% contractor surcharge is expected to be offset by lower cost associated with
using City of Kitchener forces.
COMMUNITY ENGAGEMENT:
0 iT'.
ACKNOWLEDGED BY: Pauline Houston, Deputy CAO, Infrastructure Services Department
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