Report to: GENERAL COMMITTEE                                     Report Date: March 18, 2009

 

 

 

SUBJECT:                          Tender Award 045-T-09 Cathodic Protection of Watermains

 

PREPARED BY:               Ernie Ting, Ext.3650

                                            Patti Malone,Ext.2239

 

 

 

RECOMMENDATION:

1)  THAT the report entitled “Tender Award 045-T-09 Cathodic Protection of Iron Watermains” be received;

 

2) AND THAT tender 045-T-09 for Cathodic Protection of Iron Watermains be awarded to the lowest priced bidder, C.P. Systems in their unit prices for an estimated annual amount of $409,164.50 exclusive of GST;

 

3) AND THAT a contingency amount of $40,800.00 exclusive of GST be established and that General Manager of Waterworks be authorized to approve expenditure of this contingency amount up to the specified limit in accordance with the Expenditure Control Policy;

 

4) AND THAT the term of the contract shall be for one year effective May 1, 2009 to April 31, 2010 with an option to renew for three additional years;

 

5) AND THAT the General Manager of Waterworks and the Manager of Purchasing be authorized to extend the contract for an additional three years, based on the same terms, conditions and budget approval;

 

6) AND THAT this project be funded from the Waterworks Department’s Capital Account 053 6150 9286 005 (2009) Cathodic Protection of Iron Watermains;

 

7) AND THAT subject to the extension of the tender award, staff be authorized to amend the award amount for the three additional years, to reflect change to project for Cathodic Protection of Iron Watermains approve through council during the annual budgeting process.

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution;

 

1. Purpose   2. Background   3. Discussion   4. Financial   5. Others (Strategic, Affected Units)   6. Attachment(s)

 

 

PURPOSE:

The purpose of this report is to obtain approval to award the contract for the cathodic protection of watermains.

 

 

 

BACKGROUND:

External corrosion of iron watermain pipes is the leading cause of watermain breaks.  The Cathodic Protection of Iron Watermains is an annual preventive program for controlling corrosion to reduce costly watermain breaks and to extend pipe life expectancy.  Auger method is used to install magnesium anodes that inhibit the corrosion of the iron pipes.  Anodes installed for corrosion protection has an estimated life of 20 years depending on various field conditions.

 

Within the last 15 years of a 20-year cathodic protection program, Waterworks has successfully completed 194km out of a total of 236km iron watermains.  Since the program started, the number of watermain breaks has been constantly reduced every year from 163 in 1986 to 28 in 2008.  This reduction of watermain breaks represents minimum $774,000 savings per year.

 

This year 2009 program includes 12.3km of iron watermains located at various locations in the Town as shown in the attached map.

 

OPTIONS/ DISCUSSION:

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

BID INFORMATION: 

 

Advertised, Place and Date

ETN (Electronic Tendering Network)

Bids Closed On

March 13, 2009

Number Picking Up Tender Document

8

Number Responding To Bid

3

 

DETAILED PRICING INFORMATION

 

Bidder

 

Price  (Exclusive of GST) *

CP System

$409,164.50

Global Cathodic Protection

$582,761.00

Trisan Construction

$1,008,284.20

* The award amount includes Part I (Watermain Cathodic Protection) and Part II (Provisional items) of the tender document.

Note: The bid prices for Part I of this contract are approximately 2% lower than the 2005-2008 contractual pricing.

 

C.P. Systems has been the successful proponent for this contract in the past and has proven their capability and track record with respect to qualified staff, on time delivery of service, suitable equipment and competitive contract unit prices.

 

FINANCIAL TEMPLATE

 

The following table is a summary of the financial considerations for this report:

 

 

 

 

 

Original Budget and Account #

 

$450,000

 

053 6150 9286 005  Cathodic Protection of Iron Watermains

Current Budget Available (unspent)

 

$450,000

 

 

Less Cost

 

($409,165)

 

Awarded to C.P. Systems

Less Contingency

 

($40,800)

 

 

Budget Remaining

 

$36

 

 

 

 

ALIGNMENT WITH STRATEGIC PRIORITIES:

Not Applicable

 

DEPARTMENTS CONSULTED AND AFFECTED:

Purchasing Department has been part of the tendering and award process.  Upon receipt of the signed report, Purchasing Department will initiate the execution of Purchase Orders for the Contract.

 

 

RECOMMENDED

                            BY:    ________________________          ________________________

                                      Jerry Klaus                                      Brenda Librecz

                                      General Manager, Waterworks           Commissioner, Community

                                                                                                & Fire Services

 

 

 

 

ATTACHMENTS:

 

·        2009 Watermains Cathodic Protection – Project Locations