April 9, 1998

 To:Works and Utilities Committee

 From:Commissioner of Works and Emergency Services

 Subject:Watermain Cleaning and Cement Lining

at Various Locations in the Etobicoke District

Contract EB9801WS

  Purpose:

 The purpose of this report is to award Contract EB9801WS for Watermain Cleaning and Cement Lining in the Etobicoke District.

 Funding Sources, Financial Implications and Impact Statement:

 This project is included in the 1998 Capital Budget for the Water and Wastewater Program and award is subject to Council approval of this Budget. Funding approval was also given by the former City of Etobicoke under their 1998 Capital Budget.

 Recommendations:

 It is recommended that:

 (1)Contract EB9801WS for Watermain Cleaning and Cement Lining at various locations in the Etobicoke District be awarded to Cormar Contracting Ltd. for the total tendered price of $2,383,404.14 including the Goods and Services Tax, and;

 (2)The appropriate City officials be authorized to take the necessary action to give effect thereto .

 Council Reference/Background/History:

 On March 18, 1998, the Clerk=s Division of the Corporate Services Department, opened the following tenders for Contract EB9801WS.

 Tenderers 4, 6 and 7 made minor arithmetic errors and corrections have been made according to the terms of the tender documents, to arrive at their respective total prices as outlined above.

 This tender is a unit price tender and in reviewing the Form of Tender submitted by the lowest bidder, Fer-Pal Construction Ltd., representatives of this Department found gross unbalancing of certain tender items. In the tender documents, it is specified that a tender containing unbalanced prices which likely affect adversely the interest of the City, may be rejected.

 Unbalanced bidding is exemplified in the lowest tenderer=s bid for unshrinkable backfill (tender item 2a, est. quantity 4000m3) at $1.00 per m3 whereas the average bid of the next two low tenderers is $42.00 per m3. (City=s est. $45.00 per m3.) For another form of backfill using granular material (tender item 2b, est. quantity 900m3) the lowest tenderer=s bid is $43.00 per m3 whereas the average bid for the next two low tenderers is $23.50 per m3. (City=s estimate $43.00 per m3.)

 Other examples include:

 (a)clear water service (tender item 14, est. quantity 25 units) lowest tenderer=s bid $1.00 per unit, average bid of next two low tenderers is $450.00 per unit. (City=s estimate, $500.00 per unit.)

  (b)Repair curb box and rod (tender item 18, est. quantity 550 units) lowest tenderer=s bid $1.00 per unit. Average bid of next two low tenderers $290.00 per unit. (City estimate, $250.00 per unit.)

 (c)Repair curb box and rod by excavation (tender item 19, est. quantity 40 units). Lowest tenderer=s bid $1.00 per unit. Average bid of next two low tenderers $450.00 per unit. (City=s estimate $800.00 per unit.)

 Furthermore, the same has been thoroughly reviewed by staff and they concur with the solicitors= opinion and in addition given the nature of public tendering process and that there will be no change in the scope of the work for retendering purposes, recommend that the tender be awarded to the second lowest tenderer, Cormar Contracting Ltd.

 Both Fer-Pal Construction Ltd. and Cormar Contracting Ltd. have worked in Etobicoke on this type of work and we are satisfied that either company has the capabilities to carry out the work as specified. The tender deposit cheques for the above two companies are still being held.

 Comments and/or Discussion and/or Justification:

 This contract is the first phase of the proposed 1998 Programme to clean and line approximately 45 kilometres of existing cast iron watermains within the Etobicoke District. The project is the continuation of a long term plan to rehabilitate the City=s water distribution system to provide the highest quality of potable water and improve water supply especially for fire flow purposes all by removing the rust turbicles from the interior walls of the watermain pipe and reline with cement mortar.. The plan is in accordance with the 1986 Report on the City of Etobicoke Water Distribution System and adopted by the former City of Etobicoke Council.

 In Contract EB9801WS the watermains to be cleaned and lined are generally in five areas as follow:

 Area 1:Long Branch Area south of Lakeshore Boulevard (included) from 23rd Street to 25th Street (included) and from 33rd Street to 36th Street.

 Area 2:South of Q.E.W. and west of Royal York Road north of Hay Avenue (included) and east of Ourland Avenue.

 Area 3:West of Royal York Road, north of Norseman Street and also bounded by Leamington Avenue and Fernalroy Boulevard (included).

 Area 4:West of Mimico Creek, north of Van Dusen Boulevard, east of Islington Avenue and south of Bloor Street including these streets.

 Area 5:Bounded by but not including Prince Edward Drive, The Kingsway and Royal York Road and Bloor Street (included).

 Conclusions:

 It is concluded that Contract EB9801WS be awarded to Cormar Contracting Ltd., for Watermain Cleaning and Cement Lining at various locations within the City of Toronto, Etobicoke District.

 Contact Name:

 Mr. T. Ellerbusch, P.Eng., Telephone No.: 416-394-8399, Fax No.: 416-394-8942

 B.H. GutteridgeM.G. Thorne, P.Eng.

Commissioner of Works and Emergency ServicesInterim Functional Lead

Water & Waste Water