HomeMy WebLinkAboutFCS-15-056 -T15-013 Closed Circuit TV Inspection of Gravity Sewers
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015-04-13
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200 ext.
7214
PREPARED BY: Laurie Stecho, Supervisor of Purchasing, 519-741-2200 ext.
7089
WARD(S) INVOLVED: All
DATE OF REPORT: 2015-03-30
REPORT NO.: FCS-15-056
SUBJECT: T15-013 Closed Circuit TV Inspection of Gravity Sewers
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-013 Closed Circuit TV Inspection of Gravity Sewers, be awarded to
Benko Sewer Service (a division of Badger), London, Ontario, at their adjusted tendered
price of $316,748.20, plus HST of $41,177.27, for a total of $357,925.47.
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 and storm 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.
The CCTV program is an annual program that has been operating since 1996. Currently the
sanitary network is operating on a 12 year inspection cycle, while the storm network is operating
on a 10 year cycle.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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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 seventeen (17) interested parties, and by the closing date of Thursday March 26, 2015, three
(3) tenders had been received.
The following tenders were received:
Bid Price Adjusted Price
Benko Sewer Service, Div. of Badger London ON $357,925.90 $357,925.47 *
Nieltech Service Kitchener ON $415,449.22
Capital Sewer Services Inc. Hamilton ON $929,183.00
A mathematical error was discovered when adding the HST cost to the total bid price. The
adjusted price still qualifies Benko Sewer Service as the lowest bidder.
The per metre price for CCTV Inspection of Gravity Sewers has remained the same from the
2014 contract.
Tenders were 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.
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 in the account to fund
additional inspections in 2015, with any remainder to be used towards the 2016 CCTV program.
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Tender T15-013
CCTV Inspection of Gravity Sewers
Estimated Cost for this Phase of Work
Tender T15-013 costs, including HST 357,925.47
less: HST rebate on tender (35,602.48)
Net Cost Being Awarded 322,322.99 A
Projected Costs: Staff Time/Permitting/Material Testing 2,750.00
Total Estimated Cost for this Phase of Work 325,072.99 C
Budget for this Phase of Work
Sanitary Utility 148,050.00
Storm Water Utility 145,475.00
Recovery from Various Reconstruction Projects 57,000.00
Total Budget for this Phase of Work 350,525.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) 25,452.01 D
Balance in account, net of encumbrances 31,917.40
Estimated Surplus/(Deficit) 57,369.41 E
COMMUNITY ENGAGEMENT:
INFORM - 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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