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HomeMy WebLinkAboutTR-72-88 TOWN OF NEWCASTLE REPORT File # Res. By-Law # MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: September 19, 1988 REPORT #: . TR-72-88 FILE #: SUBJECT: TENDER NO. T88-21, UNDERGROUND FUEL STORAGE TANKS RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That this report be received; and 2. That S. DeMelis Construction and General Contractors Ltd. , Maple, Ontario, with a total bid of $20,269.16, being the lowest responsible bidder meeting all terms, conditions and specifications of Tender No. T88-21, be awarded the contract to supply, deliver and install one (1) only 2000 gallon and one (1) only 1000 gallon Underground Fuel Storage Tanks, associated piping, pump island and two (2) pumps as required by the Department of Public Works; and 3. That the required funds be drawn from the 1988 Public Works Equipment Reserve. BACKGROUND AND COMMENT: A tender was publicly advertised and invited for the supply, delivery and installation of one (1) only 2000 gallon and one (1) only 1000 gallon Under- ground Fuel Storage Tanks, associated piping, pump island and two (2) pumps at the Public Works Depot in Orono. l Page - 2 - TR-72-88 TENDER NO. T88-21, UNDERGROUND FUEL STORAGE TANKS Tenders were received and tabulated as follows: Bidder Bid Amount Bid Amount Option "A" Option "B" (Fibreglass) (Steel Tank with Cathodic Protection) S. DeMelis Construction and General Contractors Ltd. $201,269.16 $18,935.41 Maple, Ontario KLD Construction Ltd. $24,1101.00 $22,1801.001 Ajax, Ontario Oilco Maintenance Company Inc. $30,075.26 $28,779.26 Oshawa, Ontario A fourth bid was received from Rocon, Mississauga, Ontario, however, was returned unopened, as it was received past the closing time and date. In accordance with the Gasoline Handling Act, all steel tanks that do not have cathodic protection must be replaced by the year 1990. In comparing Option "A" with Option "B", Option "A" is recommended for the following reasons: 1. No maintenance cost involved with fibreglass tank. The steel tanks with cathodic protection require yearly inspections and maintenance by outside contractors. 2. Abundance of salt in the Public Works Yards which is highly corrosive to steel. 3. The fibreglass tanks are adaptable to relocation without damaging the tanks where as the cathodic protection on the steel tanks is easily damaged and is therefore very difficult to relocate. 4. All Ministry of Transportation tenders for storage tanks specify fibreglass only. The required funds will be drawn from the 1988 Public Works Equipment Reserve from which there are adequate funds available. The Treasurer has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc. should be referred to the Director of Public Works. Page - 3 TR-72-88 TENDER NO. T88-21, UNDERGROUND FUEL STORAGE TANKS After further review and analysis of the bids by both Purchasing and Public Works, it was mutually agreed that the low bid, Option "A", from S. DeMelis Construction and General Contractors Ltd. , Maple, Ontario, be recommended for the contract award. The subject firm is a reputable contractor with substantial experience in this type of installation. Respectfully submitted, Recommended for presentation to the Committee, LW 5:R. Blanchard, Lawrence 4,, Aotseff, Treasurer. Chief A iIttrative Officer. W.A. Evans, P. Eng., Director of Public Works. LAB/hjm