Report to: General Committee Report Date: March 17, 2008

SUBJECT: Award of Contract # 011-S-08 Laboratory Sampling Analysis

PREPARED BY: Amit Sobti, Extn 2239

Karen Dennison, Extn 2519

RECOMMENDATION:

THAT the report entitled “Award of Contract # 011-S-08 Laboratory Sampling Analysis” be received;

AND THAT the contract for # 011-S-08 Laboratory Sampling Analysis be awarded to the preferred supplier York Durham Regional Laboratory in the estimated contract value of $534,477.00 exclusive of GST for a period of three (3) years;

And that the tender process be waived in accordance with Purchasing Bylaw 2004-341, Part 11, Section 7(1) h which states “where it is necessary or in the best interest of the Town to acquire non-standard items or Professional Services from a preferred supplier”;

AND THAT funds for this contract for the 2008 period be drawn from the 2008 Operating Budget Accounts as listed under financial considerations in the estimated amount of $178,159.00 exclusive of GST:

And that the following 2009-2010 estimated amounts be provided for within the respective years budget submission for the Waterworks Department;

• 2009                $178,159.00
• 2010                $178,159.00
  
  

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

Not applicable

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this report is to obtain Council approval to award contract # 011-S-08 Laboratory Sampling Analysis.

BACKGROUND:

On June 14, 1988 the Ministry of the Environment (MOE) advised all York Municipalities to seek alternate means of doing microbiological analyzing of water samples. Neither Region of York nor Durham was in a position to provide the services to the Town at the time. On July 14, 1992 Council approved the use of York-Durham Regional Environmental Laboratory (YDREL) as outlined in the report dated June 2, 1992, copy of report attached. Since this time, the York Durham Regional Environmental Laboratory has been the preferred supplier for the Town’s microbiological analyses. The YDREL is pre-approved by the MOE for use by the Town of Markham. The Town of Markham is legislated to comply with regulatory sampling of its water distribution system for water quality assurance.

OPTIONS/ DISCUSSION:

The laboratory sampling analysis award is being recommended to the preferred supplier, YDREL, due to the following reasons:

• Past Performance, Reliability and Quality of Service: The YDREL has been providing good quality and reliable service to the Town for the past 16 years. Considering the criticality of the sampling analysis and test results, it is important that the Town minimize it’s water quality and safety risks by ensuring that reliable and accurate analyses are undertaken and correct documentation is received from the sampling laboratory. YDREL is jointly owned and operated by the Region of York and Durham Region and staff is confident in ensuring that quality, accuracy and service delivery standards are met.
• Comparable Price: The prices charged by the YDREL for various tests are comparable to other MOE approved laboratories within the GTA region. Staff conducted market research to ascertain price variances by contacting (2) two other MOE approved laboratories within the GTA. Prices from (1) one laboratory were comparable, whilst the other laboratory was charging approximately 25-35% lower cost estimates. However, considering that similar laboratories have, in the past, been fined for failure to report adverse drinking water quality results, the risk factor outweighs the price differential.
• Proximity to the Town: The nature of the business requires frequent laboratory visits by staff (2 -3 times per week) to ensure that the water quality being tested is not compromised by sample delivery time. Considering that the YDREL is the closest MOE approved laboratory to the Town Civic Centre (36kms approx.), this augments the process of sampling and enhances analysis and quality information leading to the provision of better service to our residents. The above noted other MOE approved laboratory is approx. 18kms further than YDREL and considering the frequency of staff trips, this would lead to mileage savings of approx. $5,600 a year and reduced vehicle gas emissions.

Under the existing contract, the annual cost for this service is approximately $114,159. Waterworks distribution system sampling requirements have increased due to an expanding system, implementation of a community lead testing program (legislated under O. Regulation 170/03) and as well implementation of an expanded waste water system sampling program in the amount of an additional $64,000 totalling $178,159. This amount was included in the 2008 budget submission.

One part of the cost reflected in the budget includes legislated sampling costs which may vary in accordance with either system or regulation needs. The other part is new system sampling from new developments and capital projects. The latter cost is recovered from reciprocal sampling charges to the developers or contractors.

The increase of $64,000 in the laboratory budget reflects the following:

· An expanded waste water effluent by-law compliance program ($30,000)

· Newly legislated Community Lead Testing program ($18,000)

· Increase in Waterworks Regulatory sampling program (new sampling stations will be coming on-line) ($6,000)

· Increased distribution system maintenance testing ($5,000)

· Allowance for potential laboratory fee increase ($5,000). Note - The YDREL did not increase fees to the Town of Markham over the previous three years and are keeping fees constant for 2008. The budget increase is an allowance for potential fee increases in year 2009.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

The following table is a summary of the financial considerations for this report:
Original Budget and Account #	$178,159	Various - As listed below
Current Budget Available (unspent)	$178,159
Less Cost	($178,159)	Awarded to York Durham Regional Laboratory
Budget Remaining	$0

Account	Description	2008 Operating Budget	Cost of Award	Budget Remaining
760 160 4530	Water/Sewer Materials	$6,546	$6,546	-
760 160 5343	Reg. Lab Chgs	$67,500	$67,500	-
760 160 5342	Reg. Lab Chgs	$84,113	$84,113	-
760 530 5343	Reg. Lab Chgs	$20,000	$20,000	-
		$178,159*	$178,159*	-

 * Annual operating budget and cost of award needed for 3 years (2008-2010); budget and award amount contingent on 2009 and 2010 operating budget approval.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not Applicable

ENGAGE 21^ST CONSIDERATIONS:

The Laboratory Sampling Analysis Contract is consistent with the Town’s corporate goals of Infrastructure Management and Quality Community.

The program enhances several key Waterworks service delivery components:

· Proactive and preventative strategies to identify and manage risks to public health;

· Continuous Improvement of Waterworks activities and service delivery;

Infrastructure Management:

The Laboratory analyses undertaken are a prerequisite to Markham’s building, renewing and strategically managing the Town's infrastructure to meet the demands and expectations of a growing community including the provision of safe drinking water.

Managed Growth:

Provide a framework for the timely delivery of well-planned new communities that are phased and coordinated with the provision of infrastructure, a component of which involves the water distribution system. Timely and accurate Laboratory testing and analysis of drinking water is necessary in the provision of safe quality water to residents.

BUSINESS UNITS CONSULTED AND AFFECTED:

Finance and Purchasing have been consulted.

RECOMMENDED

BY: ________________________ ________________________

Jerry Klaus, General Manager, Peter Loukes, Commission Lead,

Waterworks Operations and Asset Management

ATTACHMENTS:

None