Finance & Administrative Committee
	TO:	Mayor and Members of Council
	FROM:	Stan Bertoia, General Manager, Construction & Utilities
	PREPARED BY:	Ernie Ting, Manager, Infrastructure
	DATE OF MEETING:	2004-Apr-05
	SUBJECT:	Contract T34-98WW Routine & Emergency Sewer/Watermain Repairs Contract Extension

RECOMMENDATION:

THAT the report entitled “Contract T34-98WW, Routine & Emergency Sewer/Watermain Repairs, Contract Extension” be received;

AND THAT “Contract T34-98WW, Routine & Emergency Sewer/Watermain Repairs, Contract Extension” be extended from April 1, 2004 to May 31, 2004 to the current contract provider, Finch Paving Ltd.

AND THAT Blanket Purchase Order B2 35 for Finch Paving be increased in a total amount of $144,450.00 inclusive of 7% GST ($135,000.00 inclusive of 3% GST) for the period January 1, 2004 to May 31, 2004;

PURPOSE:

The purpose of this report is to extend the expiry date of contract T34-98WW from March 31, 2004 to May 31, 2004 and to increase the upset limit of Blanket Purchase Order B2 35 to accommodate the costs of routine and emergency repair requirements up to this period.

BACKGROUND:

Contract T34-98WW was awarded to Finch Paving for the Routine and Emergency Sewer/Watermain Repairs for a period of two years from April 1, 2002 to March 31, 2004 in the amount of $409,000.00 inclusive of 7 % GST (393,710.27 inclusive of 3% GST). An increase to the blanket in the amount of $250,000.00 inclusive of 7% GST (240,654.19 inclusive of 3%) was approved in May 2003 for a total award amount of $659,000.00 inclusive of 7% GST ($634,364.46).

OPTIONS/DISCUSSION:

To date, purchase order number B2 35 has been fully expended. The following is the cost estimate of future work requirements for the period ending May 31, 2004.

Description	Estimate	Explanation
Emergency and Routine Repairs	$144,450.00 incl. 7% GST (Estimate based on 2003 Actual)	For details please refer to Attachment “A”

The 2004/2005 contract is being tendered and will closed on March 24, 2004. The new contract will be in effect after the expiration date of May 31, 2004 of the existing contract.

FINANCIAL CONSIDERATIONS:

The major scope of this contract is emergency repairs of watermain breaks and sanitary sewers. The contract cost over-run is a result of increased number and cost of emergency and routine repairs. The increased cost of repairs was partially due to severity of several breaks and change in repair procedures in order to comply with water quality regulation. Increased inspection of appurtenances found a number of repairs necessary to minimize risks and liabilities. These contributed to the increased number of repairs for hydrants, valves and sanitary sewer services adding more cost under this contract. Waterworks 2004 Operating Budget request has been increased to reflect the increased cost in 2003.

The Finance Department has reviewed this report and concur with its content.

APPROVED BY:

Stan Bertoia, P. Eng.	Jim Sales
General Manager, Construction and Utilities	Commissioner, Community and Fire Services
Peter Loukes, P. Eng.
Director, Operations and Asset Management

Q:\Commission Share\Works\WATERWORKS\REPORTS\t34-98WW Contract Extension Award Report 0411.doc