ADMINISTRATIVE REPORT

Date: November 30, 1999
Author/Local: Bill Aujla, 6241
RTS No. 1038
CC File No. 1805

Council: December 14, 1999

TO: Vancouver City Council

FROM: General Manager of Engineering Services

SUBJECT: Award of Contract No. 9921 for the Construction of a Pressure Reducing

Valve (PRV) Station at 1^st Avenue and Rupert Street

RECOMMENDATION

A. THAT Contract No. 9921 for the Construction of a Pressure Reducing Valve Station at 1^st Avenue and Rupert Street be awarded to the low bidder meeting the contract requirements, Ponte Bros. Contracting Ltd., for a total tender price of $375,056.40 (GST included); with funding available from the 1999 Capital PRV Stations Replacement Program (order group C07E1C).

B. THAT the General Manager of Engineering Services, in consultation with the Director of Legal Services, be authorized to enter into a construction services contract with Ponte Bros. Contracting Ltd., for Contract No. 9921, for the construction of a PRV station at 1^st Avenue and Rupert Street.

C. THAT the bid bonds of the unsuccessful tenderers be returned upon execution of the construction services contract.

COUNCIL POLICY

Construction contracts over $300,000 must be awarded by Council.

Contracts are awarded on the basis of best value for fee.

PURPOSE

The purpose of this report is to obtain Council approval to award Contract No. 9921, for the construction of a PRV station at 1^st Avenue and Rupert Street, to the low bidder - Ponte Bros. Contracting Ltd.

BACKGROUND

The Waterworks 1997 - 1999 Capital Plan, approved by Council, includes funding for the PRV replacement program. This program was initiated to replace those PRV stations throughout the city that are past the end of their service life. To date, 16 of the City’s 29 PRV stations, approximately 55%, have been replaced or significantly updated.

The planned replacement of the PRV station at 1^st Avenue and Rupert Street will complete the City’s current requirements under the PRV replacement program. This PRV chamber is past its service life: all piping within the chamber needs to be replaced, the pressure regulating valves have a high maintenance history (the emergency 10" pressure reducing valve within the chamber has been out of commission for approximately three years), and there is inadequate access and headroom, as well as insufficient lighting and heating, for staff to perform their maintenance duties. The proper operation of this PRV station is essential to provide a reliable supply of water for both domestic consumption and fire protection within the City’s 490 Pressure Zone.

DISCUSSION

A detailed design and tender documents were prepared by Omni Engineering Inc. (the Consultant) for the new PRV chamber noted above. The work will be administered under a lump sum/unit price construction services contract. Lump sums for each tender item and unit prices are used to calculate interim progress payments to the contractor.

Eleven contract bidders submitted complete tender packages, including bonding requirements. A summary of the bids received follows:

Contractor Bid Prices

1. Ponte Bros. Contracting Ltd. $375,056.40~
2. LUPS Contractors Ltd. $413,777.56
3. Merletti Construction Ltd. $428,980.12
4. C.A.P. Ventures Ltd. $433,992.00
5. Westport Construction Group $442,124.00~
6. Aquatec Construction Ltd. $449,025.50
7. Sandpiper Contracting Ltd. $450,898.00
8. Civil Construction Co. $454,750.00
9. Tritech Industries Ltd. $459,672.00
10. Tehcon Construction Ltd. $495,871.17
11. BGM Construction Ltd. $541,730.30

~ After correction of minor addition errors in bidder’s total.

The low bidder, Ponte Bros. Contracting Ltd., appears qualified to construct the new PRV chamber based on their satisfactory completion of other waterworks projects. This contractor is currently working for the City of Vancouver for the replacement of distribution watermains past their service life (Contract No. 9906). To date, their performance has been very good with respect to both their quality of work and their dealings with members of the public. Therefore, staff recommend that Ponte Bros. Contracting Ltd. be awarded Contract No. 9921 for the construction of the new PRV chamber noted above.

FUNDING AND COST

The low bid for Contract No. 9921 is within the Consultant’s preliminary contract estimate of $386,163.00. The total cost estimate for the work, which includes the contract price, 10% overhead, and cost of related City work, is $425,000. The final cost of the contract will vary from the bid price because the estimated quantities of work for unit price items may be different than the actual quantities of work. Funds for this project are available from the PRV Stations Replacement Program (order group C07E1C).

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(c) 1998 City of Vancouver