HomeMy WebLinkAboutFCS-18-003 - P17-123 - Waterworks Repair Service
REPORT TO: Committee of the Whole
DATE OF MEETING: 2018-01-29
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: 2018-01-19
REPORT NO.: FCS-18-003
SUBJECT: P17-123 Waterworks Repair Services
______________________________________________________________________
RECOMMENDATION:
That Proposal P17-123 Waterworks Repair Services, be awarded to J. Weber
Contracting Ltd., Breslau, Ontario, at their proposed unit prices, for a one (1) year
term, with an option to renew for four (4) additional twelve (12) month terms.
BACKGROUND:
The City operates and maintains over 800 km of watermain, 7,100 water valves and
4,300 hydrants. Aging infrastructure causes watermain and valve failures to occur
frequently over the winter months. Frost moving deep into and leaving the ground
causes pipes to shift and already weak/aging pipes and valves will fail. The 5-year
average is 110 failures per year, with the majority occurring over the winter months. In
addition there are 2500 valves that are past their life expectancy of 40 years and these
valves need to be proactively replaced under non-emergency conditions.
Availability of safe drinking water is a necessity, which is often taken for granted until it
is unavailable. Kitchener Utilities strives to restore safe drinking water as soon as
possible to affected residents. This means completing watermain/valve repairs in a
timely fashion. This work is typically completed by Kitchener Utilities staff, but additional
resources in the form of contracted services are often required. These contingency
resources are required to ensure maintenance programs are completed, to ensure staff
are not working excessive hours and to ensure the City is complying with provincial
hours of service regulations and the City’s service policy.
*** 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:
Proposal was advertised publicly on the City of Kitchener website and the Internet
through the Ontario Public Buyers Electronic Tendering Information System. Documents
were downloaded by seven (7) interested parties and by the closing date of Monday
December 11, 2017, one (1) proposal had been received.
The following proposal was received:
J.Weber Contracting LimitedBreslau, ON
The proposals were rated on the following criteria:
Labour rates
Equipment and materials
Company capacity
Response times
The proposal was based on fixed hourly evening rates on an estimated representative
sampling of 40 watermain repairs per year.
The average annual spend over the past three (3) years was $136,000. The anticipated
spend for the first term of the contract is $150,000. The actual spend will depend on the
level of activity through the term of the contract.
The labour unit prices for waterworks repair services has increased 4% and the material
unit prices remain unchanged from the 2014 contract.
The proposal was reviewed by T. Gaber, Manager of Operations, M. Ryan, Supervisor
Loss Prevention and Maintenance and S. Rudak, Buyer, who concur with the above
recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this proposal (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 budget. The estimated surplus (D) will remain in
the account to fund similar work conducted by the City.
P17-123
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Waterworks Repair Services
Estimated Cost
Proposal P17-123 costs, including HST 169,500.00
less: HST rebate (16,860.00)
Net Cost Being Awarded 152,640.00 A
Total Estimated Cost for this Phase of Work $152,640.00 C
Funding Available
Valve Replacement 328,122.38
Total Budget for this Phase of Work $328,122.38 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) $175,482.38 D
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Lesley MacDonald, Acting Deputy CAO, Finance and
Corporate Services
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