April 7, 1998

 TO:Works and Utilities Committee

 FROM:Commissioner of Works and Emergency Services

 SUBJECT:Cogeneration Facility

Humber Treatment Plant

Contract WPC-11-97

  Purpose:

 The purpose of this report is to award Contract WPC-11-97 for the installation of previously purchased new gas engines and air blowers including all associated electrical and mechanical work for the cogeneration project at the Humber Treatment Plant.

 Funding Sources:

 On August 12, 1992 Metropolitan Council, adopted Clause No. 17 of Report No. 17 of the Works Committee, approving funding for the cogeneration project at the Humber Treatment Plant. Financing for the cogeneration project was previously approved and funds are available in the Water Pollution Control Capital Account No. C-WP115, Humber Treatment Plant.

 Recommendations:

 It is recommended that:

 (1)Contract WPC-11-97 for the installation of previously purchased new gas engine generation units and electric air blowers including all associated electrical and mechanical work for the cogeneration project at the Humber Treatment Plant, be awarded to Comstock Canada Ltd., for the Total Lump Sum Price of $16,798,000.00 including the Goods and Services Tax and a Schedule of Prices Allowance of $22,860.00 for potential additional work; and

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

 Background:

On March 19, 1998, the City Clerk's Office of the Corporate Services Department opened the following tenders for Contract WPC-11-97:

 *Tenderers Nos. 3 and 1 made arithmetical errors in the Schedule of Prices. As per the terms of the tender documents, the amounts for both the Schedule of Prices and the Total Lump Sum Price have been adjusted accordingly.

 Representatives of this Department and our consultants have met and reviewed the tender with the lowest tenderer, Comstock Canada Ltd. (Comstock). Clarification was required on some technical aspects of the tender submission by Comstock. Comstock subsequently submitted additional information and clarification respecting the said tender, in writing, which satisfies the Works and Emergency Services and Legal Departments that all requirements of the tender documents have been met. We are satisfied that this company has the capability to carry out the work as specified. Comstock has successfully completed other work for the Department in the past.

 This Contract was originally tendered in July/August 1997 at which time only one tender was received in the amount of $21,763,800.00. This amount was approximately 40% over the pre-tender estimate which was primarily attributed to unfavourable market conditions created by a very high volume of tendering activity at that time. As a result, staff recommended that the contract not be awarded at that time, that the scope of work be reviewed and adjusted, and that the contract be retendered at a later date under more favourable market conditions. By adoption of Clause No. 13 of Report No. 12 of the Environment and Public Space Committee on September 24, 1997 Council approved the retendering of the project. The scope of work was subsequently reviewed, split into two contracts and retendered. This action has resulted in an overall reduction of $4,236,934.00 in the tendered value for the installation contract and brings the overall cost of the cogeneration project within the amounts budgeted in the Capital Works Program.

 The Fair Wage Office has advised that Comstock and their named subcontractors maintain wage rates, working conditions, and collective agreements conforming to City of Toronto requirements.

 The Commissioner of Finance has approved the proposed bonding company.

  Comments and Justification:

 This Contract is the last of a four part project, the other three being: (a) the supply of new air blowers, (b) the supply of new gas engine generation units, and (c) the construction of an electrical substation building and associated buried electrical concrete encased duct banks all required for the cogeneration project. The supply of new electric air blowers under Contract WPC-9-94 and new reciprocating gas engine generation units under Contract WPC-10-94 were awarded by Metropolitan Council on April 5, 1995 by adoption of Clause No. 22 and Clause No. 21 respectively of Report No. 5 of the Environment and Public Space Committee. The construction of the electrical substation building and associated duct banks under Contract WPC-10-97 is expected to be awarded in April 1998 by the newly established Bid Committee. The contract award values for the air blowers, the cogeneration units, and the electrical substation building are $2,576,913.00, $13,197,038.00, and $728,866.00 respectively. The air blowers and cogeneration equipment have been delivered and are currently in storage awaiting to be installed under this current installation contract, WPC-11-97.

 The project, as a whole, is required to upgrade/modify the existing cogeneration plant replacing aged equipment in service since 1958 and to utilize increased digester gas production for supplying electrical and heat energy and process air for sewage treatment purposes.

 Conclusions:

 It is recommended that Contract WPC-11-97 should be awarded to Comstock Canada Ltd. for the installation of new gas engine generation units and electric air blowers including all associated electrical and mechanical work for the cogeneration project at the Humber Treatment Plant.

 Contact Name and Telephone Number:

 Mr. A. Pagnanelli, P.Eng., Senior Project Engineer, Management & Technical Services Division

Telephone No.: (416) 392-8854

Fax No.: (416) 392-4594

e-mail: anthony_pagnanelli@metrodesk.metrotor.on.ca

B.H. GutteridgeM.G. Thorne, P.Eng.

Commissioner of Works Interim Functional Lead

and Emergency ServicesWater and Waste Water

 AP/ph 1021.30-49