A5
                             ADMINISTRATIVE REPORT

                                            Date:  March 6, 1996
                                                Dept. File No.:  1.40.96.02


    TO:       Vancouver City Council

    FROM:     General Manager of Engineering Services

    SUBJECT:  Award of Contract No. 9601 for the Upgrading
              of the Chilco and Alberni Chlorinating Station

    RECOMMENDATION

         A.   THAT Contract No. 9601 for the Upgrading of Chilco and
              Alberni Rechlorination Station be awarded to the low bidder
              meeting specifications, CANEM SYSTEMS LIMITED in the amount
              of $237,005.00, being the total tender amount, including all
              options.

              No legal rights shall arise hereby and none shall arise until
              execution of the Agreement.

         B.   THAT funding for the Upgrading of the Chilco and Alberni
              Rechlorination Station project be provided from account
              17/35/4200/999 "Pressure Reducing Valve (PRV) Stations.

         C.   THAT the General Manager of Engineering Services be
              authorized to enter a contract with CANEM SYSTEMS LIMITED in
              the amount of $237,005.00, in consultation with the Director
              of Legal Services.

    COUNCIL POLICY

    Construction contracts over $200,000 are to be awarded by Council.


    PURPOSE

    The purpose of this report is to obtain Council approval to award
    Contract No. 9601 for the Upgrading of the Chilco and Alberni
    Rechlorination Station to the low bidder, CANEM SYSTEMS LIMITED.
    BACKGROUND

    The Waterworks capital plan provides for annual replacement of various
    PRV stations throughout the City.  These stations have reached the end
    of their service life to a point where some components are near
    failure.  The safe and proper operation of these stations is essential
    to provide a reliable supply of water for both domestic consumption and
    fire protection.

    The station at Chilco and Alberni Street operates as both a pressure
    regulating and chlorine level boosting facility.  The electrical and
    mechanical systems are aging poorly and have required an above average
    level of maintenance in the past years.  Therefore, the facility was
    identified as a high priority for modification and upgrading in the
    1995 Waterworks Capital Budget.

    CONSTRUCTION TENDERS

    Tenders for Contract No. 9601 for the upgrading of the Chilco and
    Alberni Rechlorination Station were opened on March 5, 1996, and
    referred to the General Manager of Engineering Services.  All tenders
    have been checked for completeness and accuracy.  A tabulation of the

    lump sum tendered prices is shown below with the lowest tender, meeting
    specification underlined.  The Consultants' estimated cost of the
    contract work, including the installation of the valves and related
    piping supplied by the City, was $350,000.00.

         CANEM Systems Limited                        $237,005.00

         Jain Contracting Limited                     $242,954.00

         Daryl-Evans Limited                          $256,754.69

         Besco Contracting Limited                    $314,818.61

    Each Contractor  has submitted  a total lump  sum tender price  for all
    work  under this  contact.   Also, as  requested, the  contractors have
    submitted a breakdown  in the lump  sum prices which  will be used  for
    computation of  interim payments.   The final cost of  the contract may
    vary  as a  result of  additions  and deletions,  and extra  or "force"
    account work if required.

    The tender  submitted by the  low bidder,  CANEM Systems Limited  is in
    accordance  with the  specifications in  the contract  documents.   The
    Contractor has submitted an acceptable construction schedule that meets
    the  City's requirements for  substantial completion of  the project by
    June 1, 1996.   The  tender documents required  a mandatory  pre-tender
    site meeting, which the contractor attended.  The supervisory personnel
    proposed  by  CANEM  Systems   Limited  have  the  appropriate  related
    experience  from similar projects and  it has been  confirmed that they
    have completed other projects in a satisfactory manner and on time.  As
    such, their qualifications are considered adequate for this contract.

    COST AND FUNDING

    This  project was  included  in the  1995  Waterworks Capital  Plan  to
    upgrade and replace various PRV and rechlorination stations.

    Funds  for  this  contract  are  available  in  account  17/35/4200/999
    "Pressure Reducing Valve (PRV) Stations.


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