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HomeMy WebLinkAboutFCS-14-060 - T14-020 CCTV Inspections of Gravity Sewers REPORT TO:Committee of the Whole DATE OF MEETING: 2014-03-31 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: N/A DATE OF REPORT: 2014-03-19 REPORT NO.: FCS-14-060 SUBJECT: T14-020 – Closed Circuit T.V. Inspection of Gravity Sewers RECOMMENDATION: Badger That Tender T14-020 – Closed Circuit T.V. Inspection of Gravity Sewers, be awarded to Daylighting Ltd. (Division – Benko Sewer Service), London, Ontario, at their tendered price of $412,663.82, including contingencies of $14,000., plus H.S.T. of $53,646.30, for a total of $466,310.12. BACKGROUND: The City Of Kitchener has operated an annual program of sanitary sewer inspection using CCTV methods and equipment since 1997. This inspection process collects and records information about the current condition and performance of the City's sanitary and storm sewer network. This information is then used in assessing and prioritizing future maintenance programs, rehabilitation programs, and reconstruction projects for the City's sanitary sewer system. Without this information, the selection and prioritization process for these works would have to be completed with little or no understanding of the actual conditions of the sewer network, which would be considered a very undesirable methodology for such processes. This inspection process is of high value in this regard, as it is the only reliable, accurate, and economically feasible method of observing and recording the conditions of the sewer network for later analysis. 1. v. - 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 thirteen (13) interested parties, and by the closing date of Thursday March 13, 2014, two (2) tenders had been received. The following tenders were received: Bid Price Badger Daylighting Ltd. (Division – Benko Sewer Service) London ON $466,310.12 * Capital Sewer Services Inc. Hamilton ON $725,838.38 The price for Closed Circuit T.V. Inspection of Gravity Sewers has increased 24% from the previous contract. The tender was reviewed by C. Leishman, Asset Management Technician, who concurs with the above recommendation. 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. 1. v. - 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 but the upset limit exceeds the budget allowance (B) provided within the budget. The balance in this account is sufficient to fund the shortfall. The estimated surplus (E) will remain within the project to fund future work. Tender T14-020 CCTV Inspection of Gravity Sewers The total budget for all phases of this project is $ 321,944.00 Estimated Cost for this Phase of Work Tender T14-020 costs, including HST 466,310.12 less: HST rebate on tender (46,383.39) Net Cost Being Awarded 419,926.73 A Projected Costs: Staff Time/Permitting/Material Testing 5,000.00 Total Estimated Cost for this Phase of Work 424,926.73 C Budget for this Phase of Work Sanitary Utility 141,000.00 Storm Water Utility 132,250.00 Halls Lane (52000585) 4,759.68 Pandora Ave (52000781) 2,505.35 Mill Street (52000607) 8,929.83 Iron Horse Trail (52000549) 843.21 Brock Street (52000580) 3,410.03 External Recoveries from Developers 28,245.78 Total Budget for this Phase of Work 321,943.88 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) (102,982.85) D Balance in account, net of encumbrances 118,156.76 Estimated Surplus/(Deficit) 15,173.91 E 1. v. - 3 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 1. v. - 4