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HomeMy WebLinkAboutFCS-17-190 - T17-073 Sewer Safety Cross Bore Inspection Program REPORT TO: Committee of the Whole DATE OF MEETING: 2017-12-11 SUBMITTED BY: Michelle Palmer, 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: 2017-12-01 REPORT NO.: FCS-17-190 SUBJECT: T17-073 Sewer Safety Cross Bore Inspection Program ___________________________________________________________________________ RECOMMENDATION: That Tender T17-073 Sewer Safety Cross Bore Inspection Program (Emergency & Provisional Work), be awarded to Tierra Geomatic Services Inc.,Markham, Ontario, at their tendered price of $179,320., plus H.S.T. of $23,311.60, for a total of $202,631.60,for emergency and provisional work, for a one (1) year term, with an option to renew for four (4) additional twelve (12) month periods. BACKGROUND: The City has been operating a sewer safety cross bore inspection program since June 2012, as a requirement of the Technical Standards and Safety Authority. The sewer safety cross bore inspection programaddresses the risk of creating a sewer cross bore scenario prior to installation of a gas main by trenchless technologies or that a sewer cross bore condition exists and is the cause of a sewer blockage.A utility sewer cross bore happens when a natural gas pipe has been inadvertently installed partially or completely through asewer pipe.Asewer cross bore tends to happen when utilities are installed using trenchless drilling.Sewer cross bores pose a danger because the equipment used to unblock a sewer can easily penetrate a natural gas pipe and lead to the dangerous release of natural gas to attached building(s). The sewer cross bore program includes two components: Non-Emergency Work: risk assessment process conducted through a pre- installation survey; *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1.i - 1 Emergency Work: reactionary process (when there is an obstruction in the sewer line) to conduct a sewer safety inspection to eliminate the gas pipe as the possible cause of the sewer obstruction. The tender is based on fixed unit prices on an estimated representative sampling of sewer safety cross bore work purchased over the previous year. Although the tender included emergency and non-emergency services the City is awarding only the emergency services. The average annual spend over the past three (3) years for emergency work was $233,828.03. The actual spend will depend on the level of activity throughout the term of the contract. REPORT: The value of this purchase falls below the Council approval threshold of the new purchasing bylaw, however it is being brought forward because of the new Purchasing Bylaw clause 170.20.7 - completed by the effective date of this By-law shall be completed in accordance with the terms of the previous Chapter 170 of The City of Kitchener Municipal Code as if it were 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 twelve (12) interested parties and by the closing date of Thursday October 5, 2017, three (3) tenders had been received. The following tenders were received: Bid Price Bid Price (Non-Emergency) (Emergency & Provisional) Tierra Geomatic Services Inc. Markham ON $264,250.50 $202,631.60* G-Tel Engineering Inc. London ON $218,171.92 $260,871.46 Complete Locating Services Inc. Cambridge ON $353,125.00 $497,200.00 The price for sewer cross bore inspection (emergency work) has decreased 1.2% from the 2014 tendered pricing. The tendered pricing received for non-emergency inspection exceeded the budget. Upon further review, staff believe that if the non-emergency work is combined with infrastructure locate services to gain efficiencies, then costs would be within budget. The non-emergency work will be re-tendered with the infrastructure locate services in 2018. 1.i - 2 The tender was reviewed by L. Jones, Gas Engineer, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: vision through the delivery of core service. FINANCIAL IMPLICATIONS: The net cost for this tender (A), is fair and reasonable for a project of this scope and the upset limit is within the funding available (B) for this project. Funding for this project is included within the approved capital and operating budgets. The estimated surplus (D) will remain within the account to fund non-emergency services. T17-073 Sewer Safety Cross Bore Inspection Program(Emergency Services) Estimated Cost for this project Tender T17-073 costs, including HST(Emergency Services)$202,631.60 less: HST rebate(23,311.60) Net Cost Being Awarded$179,320.00A Projected Costs - Total Estimated Cost $179,320.00C Budget for this project Sewer Safety Cross Bore Inspection Program 2018310,000.00 Total Budget $ 310,000.00 B Estimated Surplus/(Deficit) for this Phase of Work (B -C)$ 130,680.00D Total Estimated Surplus/(Deficit) $ 130,680.00E COMMUNITY ENGAGEMENT: INFORM advance of the council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: Not applicable 1.i - 3 ACKNOWLEDGED BY: Lesley MacDonald, Acting Deputy CAO, Finance and Corporate Services 1.i - 4