HomeMy WebLinkAboutFCS-14-073 -T14-026 Sewer Safety Cross Bore Inspection ProgramStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2014 -05 -26
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200 ext.
7214
PREPARED BY: Steve Rudak, Buyer, 519 - 741 -2200 ext. 7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2014 -05 -05
REPORT NO.: FCS -14 -073
SUBJECT: T14 -026 - Sewer Safety Cross Bore Inspection Program
RECOMMENDATION:
That Tender T14 -026 Sewer Safety Cross Bore Inspection Program, be awarded to G -Tel
Engineering, London, Ontario at their tendered price of $479,156.50, plus H.S.T. of
$62,290.35, for a total of $541,446.85, with an option to renew for two (2) additional twelve (12)
month terms.
BACKGROUND:
The Sewer Cross Bore Prevention Program addresses the risk associated when a gas main or
service is installed by trenchless technologies. There is a potential with these technologies to
partially or completely pierce a sewer service. In response to this blockage the property owner
or their plumbing contractor attempts to unblock the obstruction by an abrasive means. These
methods could result in damage or even a failure in the gas piping, releasing gas into the sewer
line, quickly migrating to the attached building(s).
The City of Kitchener has been operating a Sewer Cross Bore prevention program since June
2012, as a requirement of the Technical Standards and Safety Authority. Within this tender are
two facets of the City of Kitchener, Sewer Cross Bore program:
The first is a risk assessment process conducted through a pre - installation survey. This process
is budgeted as part of the Capital New Service Program. The Capital New Service Program
includes other processes which have not been included as part of this tender, such as installing
new gas services and related meter sets, condo site gas mains, new subdivision gas mains, etc.
Since this is a TSSA requirement it is specifically budgeted and only that portion of the budget is
disclosed in the tender.
The second is a reactionary process to assist property owners that have a clogged sewer line,
to conduct a Sewer Safety Inspection prior to clearing the obstruction. This process is to
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eliminate the gas pipe as the possible cause of the sewer blockage. The cost of this process is
charged to Operations.
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 picked up by
nine (9) interested parties, and by the closing date of Thursday, March 20, 2014, one (1) tender
had been received.
The following tenders were received:
Bid Price
G -Tel Engineering London, ON. $541,446.85 *
The price has increased 60% from the previous contract.
The tender has been reviewed by L. Jones, Utilities Engineer, 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.
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FINANCIAL IMPLICATIONS:
The net cost for this proposal (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 project is included
within the approved operating and Capital budget. The estimated surplus (D) will remain within the
account to fund future purchases.
Financial Summary for Tender T14 -026
Sewer Safety Cross Bore Inspection Program
Estimated Cost
Proposal T14 -026 costs, including HST
less: HST rebate on tender
Net Cost Being Awarded
Costs Incurred to Date
Projected Costs
Estimated Cost
Budget
Sewer Safety Cross Bore Inspection Program 2014
Sewer Safety Cross Bore Inspection Program 2015
Capital New Services
Budget for this Purchase
Estimated Surplus /(Deficit) (B - C)
541,446.85
(62,290.35)
479,156.50
0
479,156.50 C
213,464.65
108,333.33
200,000.00
521,797.98 B
42,641.48 D
The Sewer Safety Cross Bore Inspection Program is part of the Operating and Capital Budgets. The
contract is for twelve months and spans two calendar years. The 2014 and 2015 Budget amounts
above, indicate a portion of Operating Budget relating to the program. The Capital amount exists
within the reconstruction budget for new services.
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
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