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HomeMy WebLinkAboutFIN-20-026 - T20-027 Closed Circuit Television (CCTV) Inspection of Gravity SewersREPORT TO:Committee of the Whole DATE OF MEETING:2020-03-23 SUBMITTED BY:Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY:Polina Semenov, Procurement Specialist,519-741-2200 ext. 7037 WARD (S) INVOLVED:Wards1, 2, 3, 4, 5, 6, 8, 9, 10 DATE OF REPORT:2020-03-05 REPORT NO.:FIN-20-026 SUBJECT:T20-027Closed Circuit Television (CCTV) Inspection of Gravity Sewers __________________________________________________________________________________________ RECOMMENDATION: That Tender T20-027 Closed Circuit Television (CCTV) Inspection of Gravity Sewers, be awarded to Dambro Environmental Inc.,Oakville, Ontario, at their tendered price of $898,953.70,including contingencies of $30,000plus H.S.T. of $116,863.98 for a total of $1,015,817.68,for three(3) year term. 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 processis 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 average annual spend overathree (3) yearperiodis$300,000,before taxes. The actual spend will depend on the level of activity throughout the term of the contract. REPORT: Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded by sixteen(16) interested parties and by the closing date of Tuesday February 18, 2020,nine (9) tenders had been received. ***This information is available in accessible formats upon request. *** Please call 520-741-2345 or TTY 1-866-969-9994for assistance. 6.f-1 The following tenders were received: Bid Price Dambro Environmental Inc. Oakville ON$1,015,817.68* Infrastructure IntelligenceServices Inc.Milton ON$1,128,250.70 Nieltech Services Ltd. Cambridge ON$1,131,031.36 Pipetek Infrastructure ServicesIncBurlington ON$1,158,201.19 Wessuc Inc. BrantfordON$1,198,086.57 Hurricane SMS Inc. AmherstburgON$1,213,780.18 Sewer Technologies Inc. Port Perry ON$1,284,149.88 Badger Daylighting LP Toronto ON$1,873,925.10 Clearwater Structures Inc. Ajax ON$1,963,282.29 The price for CCTV Inspection has increased 0.4% from the 2019 contract. The tender was reviewed by C. Leishman, Operations Technician, Sanitary and Stormwater Utilities, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the the delivery of core service. 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. As this is a three year contract, the budget shown represents amounts for 2020 to 2022. The estimated surplus (E) will be proportionately returned to the Sanitary and Storm Capital Reserve accounts upon completion of the three year contract. 6.f-2 Tender T20-027 CCTV Inspection of Gravity Sewers Estimated Cost for this Work Tender T20-027 costs, including HST1,015,817.68 less: HST rebate on tender(101,042.35) Net Cost Being Awarded914,775.33 A Projected Costs: Staff Time/Permitting/Material Testing 4,500.00 Total Estimated Cost for this Work$919,275.33 C Budget for this Work Sanitary Utility (2020-2022)596,000.00 Storm Water Utility (2020-2022)299,000.00 Total Budget for this Work$895,000.00 B Estimated Surplus/(Deficit) for this Work (B -C) (24,275.33)D Balance in account, net of encumbrances238,728.79 Estimated Surplus/(Deficit)$214,453.46 E COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department 6.f-3