REPORT TO GENERAL COMMITTEE

 

 

 

 

 

TO:

Mayor and Members of Council

 

 

 

 

FROM:

Jerry Klaus, General Manager of Waterworks 

 

 

 

 

PREPARED BY:

Ernie Ting, Manager, Infrastructure

Claire Graham, Senior Buyer

 

 

 

 

DATE OF MEETING:

April 4, 2005

 

 

 

 

SUBJECT:

Tender Award - 031-T-05 Cathodic Protection of Iron Watermain

 

 

 

RECOMMENDATION:

THAT the report entitled “Tender Award - 031-T-05 Cathodic Protection of Iron Watermain” be received;

AND THAT tender 031-T-05 for Cathodic Protection of Iron Watermain be awarded to the sole bidder, C.P. Systems in their unit prices for an estimated annual amount of $297,780.00 exclusive of GST;

 

AND THAT a contingency of $25,000.00 excluding GST be established and that the Expenditure Control Policy guide the use of the contingency funds;

AND THAT the term of the contract shall be for one year effective May 1, 2005 to April 30, 2006 with an option to renew for three additional years;

AND THAT the General Manager of Waterworks and the Manager of Purchasing be authorized to extend the contract for an additional three years;

AND FURTHER THAT this project be funded from the Waterworks Department’s Capital Accounts 053 6150 6017 005 (2004 Cathodic Protection of Iron Watermains) and 053 6150 6663 005 (2005 Cathodic Protection of Iron Watermains).

All bids were issued in accordance with the Purchasing By-law 2004-341. The award is recommended to the sole bidder.  Staff have reviewed the bid documents and are satisfied that all terms, conditions, bid prices and specifications comply with the Town’s requirements.

Advertised, Place and Date

Electronic Network (ETN) on February 11, 2005

Bids Closed On

March 2, 2005

Number Picking Up Bid Documents

4

Number Responding To Bid

1

DETAILED PRICING INFORMATION

Contractor

Bid Price

C.P. Systems

$297,780.00

The unit bid price represents approximately a 1% increase over 2003 prices.

 

Staff contacted the other contractors who picked up the bid to find out the reason for not submitting a bid and were told that the intention was to submit a bid but they were not able to do so in time for the closing.

The evaluation criteria for this bid were based primarily on pricing, experience and capability. C.P. Systems meets these criteria based on their previous performance providing Cathodic Protection Services to the Town through the Town’s contractor, Taunton Construction Ltd, for the past 10 years. C.P. Systems has proven their capability and track record with respect to qualified staff, on time delivery of service and suitable equipment.

BACKGROUND

External corrosion of metallic watermain pipes is the leading cause of watermain breaks. Case studies of watermain breaks due to corrosion indicate an exponential rate of increase in breaks if no corrosion prevention is implemented. The Cathodic Protection of Iron Watermains is an annual preventive program for controlling corrosion to reduce costly watermain breaks and extend the pipe’s life expectancy. Auger method is used to install magnesium anodes that inhibit the corrosion of the metallic pipes. This method reduces the social impacts (surface and traffic disturbance, etc.) of conventional construction methods. This program minimizes service interruptions due to watermain breaks, optimises the service life of iron watermains and results in good customer service.

Within the last 12 years of a 20-year Cathodic Protection program, Waterworks has successfully completed 144 kms of watermain out of a total of 236 km metallic watermains, leaving the remaining 92 kms to be completed in the next 8 years. Since the program started, the number of watermain breaks has been constantly reduced every year from 163 in 1986 to 34 in 2004. This reduction of watermain breaks represents a minimum cost avoidance of $774,000 per year.

 

This year’s program includes 12.6 km. of iron watermains located at various locations in the Town as shown in the attached map. Anodes installed for corrosion protection have an estimated life of 20 years depending on various field conditions. In 2006, Waterworks will conduct an engineering field assessment of the remaining life and effectiveness of the installed anodes and the condition of the pipes to determine and adjust the volume of cathodically protected watermains accordingly.

 

FINANCIAL CONSIDERATIONS:

Funding for the 2005 Cathodic Protection of Iron Watermains is provided for in the following Waterworks Department’s 2004/2005 Capital Budget Accounts. 


 

Year

Account #

Account Name

Budget

Spent to Date

Budget Available

2004

053 6150 6017 005

2004 Cathodic Protection of Iron Watermains

$  436,900.00

$  287,021.14

$ 149,878.86

2005

053 6150 6663 005

2005 Cathodic Protection of Iron Watermains

$  200,000.00

-

$ 200,000.00

Total

$  636,900.00

$   287,021.14

$ 349,878.86

 

ENVIRONMENTAL CONSIDERATIONS:

None

ACCESSIBILITY CONSIDERATIONS:

None

ENGAGE 21ST CONSIDERATIONS:

This report is consistent with the following:

Infrastructure Management

To build, renew and strategically manage the Town’s infrastructure to meet the demands and expectations of the growing community.

Fiscal Stewardship

To ensure that resources are managed responsibly and taxpayers receive the best value for their money.

BUSINESS UNIT CONSULTED AND AFFECTED:

Purchasing Department has been part of the tending and award process. Upon receipt of the signed report, Purchasing Department will initiate the execution of a purchase order for the contract.

ATTACHMENTS:

·        2005 Watermain Cathodic Protection Project Locations

 

                                                                     __

Jerry Klaus, General Manager of Waterworks

 

 

 

 

 

Peter Loukes, Director of Operations & Asset Management

 

Jim Sales, Commissioner of Community & Fire Services

 

Q:\Commission Share\Operations and Asset Management\Reports\2005\Waterworks\Tender Award  031-T-05 Cathodic Protection of Iron Watermain.doc