Report to: General committee Report Date: March 27, 2009

SUBJECT: Award of Tender # 071-T-09 2009 Relining of Cast Iron and Ductile Watermains

PREPARED BY: Ernie Ting, Ext: 3650

David Huynh Ext: 2400

Patti Malone Ext: 2239

RECOMMENDATION:

1) THAT the report entitled “Award of Tender # 071-T-09 2009 Relining of Cast Iron and Ductile Watermains” be received;

2) AND THAT the contract for 2009 Relining of Cast Iron & Ductile Iron Watermains be awarded to the lowest qualified priced bidder, Fer-Pal Construction Ltd. in the total amount of $948,891.49 exclusive of GST;

3) AND THAT a contingency in the amount of $94,889.00 exclusive of GST be established to cover any additional construction costs and that the General Manager of Waterworks be authorized to approve expenditure of this contingency amount up to the specified limit;

4) AND THAT this contract be drawn from the 2009 Capital Budget Account 053-6150-9285-005 “Cement Relining Iron Watermain” in the amount of $1,200,000.00;

5) AND THAT upon completion of the project the remaining funds be returned to the original funding source;

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

EXECUTIVE SUMMARY:

Not Applicable.

PURPOSE:

The purpose of this report is to award the contract for 2009 Relining of Cast Iron & Ductile Iron Watermains.

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

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

BACKGROUND:

A 20-year program to cement line cast iron and ductile watermains was approved and adopted by Council in 1997 to improve the water quality due to internal corrosion. The Town of Markham waterworks department identified in 1997 a total length of 82.0 km of unlined cast iron and ductile iron watermains requiring this relining. Since 1997, the Town has relined 67.0 km of watermains with 15.0 km remaining to be completed.

The 2009 cement relining plan will occur on the following streets: Main Street Unionville, Carlton Road, Stiver Court, Hemingway Crescent, Pomander Road, Emily Carr Street, Station Lane and Eureka Street. The location of these streets are shown on the attached map.

Approximately 3.6 of watermains will receive cement relining in 2009. It is estimated that the remaining 11.4 km of unlined watermains will be completed by 2012.

Cement relining program extends the life expectancy of the watermains and results in:

· Restoring water quality to meet the Ontario Ministry of Environment Drinking Water Quality Standards.

· Reducing in cost of watermains rehabilitation and replacement.

· Enhancing watermain life expectancy to +50 years.

· Improving supply capacity (better water flow) for domestic usage and fire demand.

· Minimizing unnecessary disturbance and inconvenience to water customers.

OPTIONS/ DISCUSSION:

Not applicable

BID INFORMATION:

Advertised, place and date	ETN
Bids closed on	March 25, 2009
Number of contractors picking up bid documents	5
Number of contractors responding to bid	4

DETAILED PRICING INFORMATION:

Company	Total Price, Excl GST
Fer-Pal Construction Ltd.	$ 948,891.49
Spinello Companies	$1,067,622.00
Main Rehabilitation Co Ltd	$1,067,787.00

The low bidder ($43,648.49 or 4.5% less than the recommended proponent) on bid opening was disqualified after review of bid. The bidder was disqualified on the basis that they did not meet the mandatory requirements and therefore, was non-compliant with the requirements of the Tender (including the Town’s General Terms and Conditions and Purchasing By-law).

Based on similar unit items in the 2008 contract, the pricing has decreased by an estimated amount of 7% due to favourable pricing received from the vendor.

The bid documents have been verified for accuracy and compliance with the tender specifications and staff are satisfied that all terms, conditions and bid prices comply with the Town’s requirements.

FINANCIAL CONSIDERATIONS:

The following table is a summary of the financial considerations for this report:
Original Budget and Account #	$1,200,000	053-6150 -9285- 005 Cement Relining Iron Watermain
Current Budget Available (unspent)	$1,200,000
Less Cost	($948,891)	Awarded to Fer-Pal Construction Ltd.
Less Contingency	($94,889)
Budget Remaining	$156,220

Upon completion of the project the remaining funds shall be returned to the original funding source. Note: The contract will be managed by internal staff. Therefore, no external contract administrative fees are required.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST 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.

DEPARTMENTS CONSULTED AND AFFECTED:

· Purchasing - Be part of the tendering and award process. Upon receipt of the signed report, Purchasing will initiate the execution of Purchase Orders for the Contract.

· Communication and Community Relations – Residents to be informed of the project schedule and work to be done on each street.

· Fire & Emergency Services– To be informed of limited fire flow during construction.

RECOMMENDED

BY: ________________________ ________________________

Jerry Klaus Peter Loukes

General Manager, Waterworks Director, Operation

________________________

Brenda Librecz

Commissioner, Community

& Fire Services

ATTACHMENTS:

· 2009 Cement Relining of Cast Iron and Ductile Watermains – Project Locations