GREATER VANCOUVER WATER DISTRICT (GVWD) BOARD OF DIRECTORS

Transcription

1 Meeting 3 of 6 GREATER VANCOUVER WATER DISTRICT (GVWD) BOARD OF DIRECTORS REGULAR BOARD MEETING Friday, July 27, :00 A.M. 28 th Floor Boardroom, 4730 Kingsway, Burnaby, British Columbia Membership and Votes A G E N D A 1 A. ADOPTION OF THE AGENDA 1. July 27, 2018 Regular Meeting Agenda That the GVWD Board adopt the agenda for its regular meeting scheduled for July 27, 2018 as circulated. B. ADOPTION OF THE MINUTES 1. June 22, 2018 Regular Meeting Minutes That the GVWD Board adopt the minutes for its regular meeting held June 22, 2018 as circulated. C. DELEGATIONS D. INVITED PRESENTATIONS E. CONSENT AGENDA Note: Directors may adopt in one motion all recommendations appearing on the Consent Agenda or, prior to the vote, request an item be removed from the Consent Agenda for debate or discussion, voting in opposition to a recommendation, or declaring a conflict of interest with an item. 1. UTILITIES COMMITTEE REPORTS 1 Note: Recommendation is shown under each item, where applicable. All Directors vote unless otherwise noted. July 19, 2018

2 GVWD Board Agenda July 27, 2018 Agenda Page 2 of Award of Contract Resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works That the GVWD Board authorize: a) award of a contract in the amount of up to $5,092,679 (exclusive of taxes) to BEL Contracting resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works; and b) the Commissioner and the Corporate Officer to execute the contract. 1.2 Award of Contract Resulting from RFP No : Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts That the GVWD Board authorize: a) award of a contract in the amount of up to $19,501,320 (exclusive of taxes) to Northwest Pipe Company for the Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts, resulting from Request for Proposal No ; and b) the Commissioner and the Corporate Officer to execute the contract. 1.3 Award of Contract Resulting from RFP No : South Delta Main No. 1 Replacement - Phase 3 That the GVWD Board authorize: a) award of a contract in an amount of up to $11,236, (exclusive of taxes) to Graham Infrastructure LP resulting from Request for Proposal No : South Delta Main No. 1 Replacement Phase 3; and b) the Commissioner and the Corporate Officer to execute the contract. 1.4 Award of Phase B, Construction Engineering Services for the Second Narrows Water Supply Tunnel That the GVWD Board authorize: a) award of Phase B, Construction Engineering Services in the amount of up to $15,424,430 (exclusive of taxes) to the Phase A consultant, McMillen Jacobs Canada Corporation, for the Second Narrows Water Supply Tunnel; and b) the Commissioner and the Corporate Officer to execute the required documentation. 1.5 Award of Phases 2 and 3, Construction Management Services for the Second Narrows Water Supply Tunnel That the GVWD Board authorize: a) award of Phases 2 and 3, Construction Management Services in the amount of up to $10,660,920 (exclusive of taxes) to the Phase 1 consultant, Mott MacDonald Canada Ltd., for the Second Narrows Water Supply Tunnel; and b) the Commissioner and the Corporate Officer to execute the required documentation. F. ITEMS REMOVED FROM THE CONSENT AGENDA G. REPORTS NOT INCLUDED IN CONSENT AGENDA

3 GVWD Board Agenda July 27, 2018 Agenda Page 3 of 3 H. MOTIONS FOR WHICH NOTICE HAS BEEN GIVEN I. OTHER BUSINESS J. BUSINESS ARISING FROM DELEGATIONS K. RESOLUTION TO CLOSE MEETING Note: The Board must state by resolution the basis under section 90 of the Community Charter on which the meeting is being closed. If a member wishes to add an item, the basis must be included below. L. RISE AND REPORT (Items Released from Closed Meeting) M. ADJOURNMENT/CONCLUSION That the GVWD Board adjourn/conclude its regular meeting of July 27, 2018.

4 GREATER VANCOUVER WATER DISTRICT BOARD OF DIRECTORS Minutes of the Regular Meeting of the (GVWD) Board of Directors held at 11:11 a.m. on Friday, June 22, 2018 in the 28 th Floor Boardroom, 4730 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Port Coquitlam, Chair, Director Greg Moore Vancouver, Vice Chair, Director Raymond Louie Belcarra, Director Ralph Drew Burnaby, Alternate Pietro Calendino for Director Derek Corrigan Burnaby, Director Sav Dhaliwal Coquitlam, Director Craig Hodge Coquitlam, Director Richard Stewart Delta, Director Bruce McDonald Electoral Area A, Director Maria Harris Langley City, Director Rudy Storteboom Langley Township, Director Charlie Fox Langley Township, Director Bob Long North Vancouver City, Director Darrell Mussatto North Vancouver District, Director Richard Walton Pitt Meadows, Director John Becker Port Moody, Director Mike Clay MEMBERS ABSENT: Anmore, Director John McEwen Burnaby, Director Colleen Jordan Delta, Director Lois Jackson Maple Ridge, Director Nicole Read Richmond, Director Malcolm Brodie Richmond, Director Harold Steves Surrey, Director Tom Gill (arrived at 11:11 a.m.) Surrey, Director Bruce Hayne Surrey, Alternate Director Mike Starchuk for Linda Hepner Surrey, Director Barbara Steele Surrey, Director Dave Woods (arrived at 11:11 a.m.) Vancouver, Director Adriane Carr Vancouver, Director Heather Deal Vancouver, Director Kerry Jang Vancouver, Director Andrea Reimer Vancouver, Director Gregor Robertson Vancouver, Director Tim Stevenson West Vancouver, Director Michael Smith Commissioner Carol Mason (Non-voting member) New Westminster, Director Jonathan Coté Surrey, Director Judy Villeneuve Tsawwassen, Director Bryce Williams STAFF PRESENT: Genevieve Lanz, Legislative Services Coordinator, Board and Information Services Chris Plagnol, Corporate Officer Minutes of the Regular Meeting of the (GVWD) Board of Directors held on Friday, June 22, 2018 Page 1 of 4

5 A. ADOPTION OF THE AGENDA 1. June 22, 2018 Regular Meeting Agenda It was MOVED and SECONDED That the GVWD Board: a) amend the agenda for its regular meeting scheduled for June 22, 2018 by withdrawing item E2.1 Award of Contract Resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works; and b) adopt the agenda as amended. CARRIED 11:11 a.m. Directors Gill and Woods arrived at the meeting. B. ADOPTION OF THE MINUTES 1. May 25, 2018 Regular Meeting Minutes C. DELEGATIONS No items presented. It was MOVED and SECONDED That the GVWD Board adopt the minutes for its regular meeting held May 25, 2018 as circulated. CARRIED D. INVITED PRESENTATIONS No items presented. E. CONSENT AGENDA It was MOVED and SECONDED That the GVWD Board adopt the recommendations in the following items presented in the June 22, 2018 GVWD Board Consent Agenda: Budget - Status of Reserves 2.2 Watershed Reservoir Limnology Program Update CARRIED The items and recommendations referred to above are as follows: Budget - Status of Reserves Report dated June 7, 2018 from Phil Trotzuk, Chief Financial Officer, presenting to the GVWD Board the additional reserve applications and transfers for approval. Minutes of the Regular Meeting of the (GVWD) Board of Directors held on Friday, June 22, 2018 Page 2 of 4

6 Recommendation: That the GVWD Board approve the application and transfer of reserves related to the expenditures and provisions as set out in Schedule 1 of the report dated June 7, 2018, titled 2018 Budget - Status of Reserves. Adopted on Consent 2.1 Award of Contract Resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works Pursuant to item A1 Adoption of the Agenda, this item was withdrawn. 2.2 Watershed Reservoir Limnology Program Update Report dated May 15, 2018 from Jesse Montgomery, Program Manager, Environmental Management, Water Services, providing the GVWD Board with information on the water quality monitoring program for the Capilano, Seymour and Coquitlam Reservoirs. Recommendation: That the GVWD Board receive for information the report dated May 15, 2018, titled Watershed Reservoir Limnology Program Update. Adopted on Consent F. ITEMS REMOVED FROM THE CONSENT AGENDA No items presented. G. REPORTS NOT INCLUDED IN CONSENT AGENDA No items presented. H. MOTIONS FOR WHICH NOTICE HAS BEEN GIVEN No items presented. I. OTHER BUSINESS No items presented. J. BUSINESS ARISING FROM DELEGATIONS No items presented. Minutes of the Regular Meeting of the (GVWD) Board of Directors held on Friday, June 22, 2018 Page 3 of 4

7 K. RESOLUTION TO CLOSE MEETING It was MOVED and SECONDED That the GVWD Board close its regular meeting scheduled for June 22, 2018 pursuant to the Community Charter provisions, Section 90 (1) (e) as follows: 90 (1) A part of a board meeting may be closed to the public if the subject matter being considered relates to or is one or more of the following: (e) the acquisition, disposition or expropriation of land or improvements, if the board or committee considers that disclosure could reasonably be expected to harm the interests of the regional district. CARRIED L. RISE AND REPORT (Items Released from Closed Meeting) No items presented. M. ADJOURNMENT/CONCLUSION It was MOVED and SECONDED That the GVWD Board adjourn its regular meeting of June 22, CARRIED (Time: 11:12 a.m.) CERTIFIED CORRECT Chris Plagnol, Corporate Officer Greg Moore, Chair FINAL Minutes of the Regular Meeting of the (GVWD) Board of Directors held on Friday, June 22, 2018 Page 4 of 4

8 Section E 1.1 To: From: Utilities Committee Roy Moulder, Division Manager, Purchasing and Risk Management, Financial Services Murray Gant, Program Manager, Major Projects, Water Services Date: May 9, 2018 Meeting Date: June 14, 2018 Subject: Award of Contract Resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works RECOMMENDATION That the GVWD Board authorize: a) award of a contract in the amount of up to $5,092,679 (exclusive of taxes) to BEL Contracting resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works; and b) the Commissioner and the Corporate Officer to execute the contract. PURPOSE This report is to advise the GVWD Board of the results of Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works and to recommend award of the contract in the amount of up to $5,092,679 (exclusive of taxes) to BEL Contracting. BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the Board of Directors. This report is being brought forward to the Utilities Committee to consider a recommendation to the GVWD Board to award a contract for Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works. PROJECT DESCRIPTION As shown on Attachment 1, Mackay Creek and Grouse Creek are adjacent creeks located on lands owned in fee simple by GVWD which form part of the southwest slope of Grouse Mountain in the District of North Vancouver. This area is also home to Metro Vancouver Regional District s Grouse Mountain Regional Park which opened in July The Metro Vancouver Regional District has a license from GVWD to facilitate the regional park operation. The creeks follow steep terrain down the mountain and form alluvial fans near the base of the mountain. The lower end of the Grouse Grind trail is located on the Mackay Creek fan. Grouse Mountain ski area buildings as well as utilities (BC Hydro) and other infrastructure are present on the lower fan surfaces. Due to the potential for debris flows from these creeks, there is a risk to people and structures at the base of Grouse Mountain. The project intends to mitigate this risk through the construction of flexible debris flow barriers, enlarging and armouring an existing catchment basin, and implementing

9 Award of Contract Resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works Utilities Committee Regular Meeting Date: June 14, 2018 Page 2 of 3 measures for seasonal parking lot closures in a portion of Grouse Mountain Resort s upper parking lot. The work consists generally of the supply and installation of all materials, equipment and labour related to the construction of the mitigation works. During construction of the debris flow mitigation works, public access to Grouse Mountain Regional Park will be maintained. The trails within the Park, including the Grouse Grind, will remain open and accessible to the public. There may be times, however, when short sections of the lower part of the trail may need to be temporarily rerouted to maintain public safety. As a result of a Request for Qualifications (RFQ No ) that was publicly advertised on Metro Vancouver s and BC Bid websites, three experienced contractors were invited to respond to an Invitation to Tender (Tender No ) for construction of the Mackay Creek and Grouse Creek Debris Flow Mitigation Works. The Tender was issued on March 29, 2018 and closed on May 4, The following sole compliant bid was received (exclusive of taxes): Contractor Total Tender Price (exclusive of taxes) BEL Contracting $5,092,679 Two bids were received and reviewed for completeness by staff from the Purchasing and Risk Management Division, Financial Services Department. One tenderer submitted a bid using an outdated Schedule of Quantities and Prices and was deemed non-compliant by staff from Purchasing and Risk Management and Legal Services and therefore incapable of acceptance. BEL Contracting s submission used the correct Schedule of Quantities and Prices and contained no errors or omissions. Consequently, BEL s tender price of $5,092,679 was determined to be the sole compliant bid. The third shortlisted contractor advised staff, during the tendering phase, that they were no longer in a position to submit a bid due to other contractual commitments. ALTERNATIVES 1. That the GVWD Board authorize: a) award of a contract in the amount of up to $5,092,679 (exclusive of taxes) to BEL Contracting resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works; and b) the Commissioner and the Corporate Officer to execute the contract. 2. That the GVWD Board terminate Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works and direct staff to report back to the GVWD Board with options for an alternate course of action.

10 Award of Contract Resulting from Tender No : Construction of Mackay Creek and Grouse Creek Debris Flow Mitigation Works Utilities Committee Regular Meeting Date: June 14, 2018 Page 3 of 3 FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, a contract will be awarded to the sole compliant tenderer, BEL Contracting, in the amount of up to $5,092,679 (exclusive of taxes) to complete construction of the Mackay Creek and Grouse Creek Debris Flow Mitigation Works. While the tender price from BEL Contracting exceeds the Engineer s estimate for the work, there is sufficient contingency within the project budget to accommodate the recommended award. A separate $2.0 million contribution from the Province, which is currently being held by the District of North Vancouver, will be applied to reduce the overall cost of this project to GVWD. The GVWD Board has the choice not to proceed with Alternative 1, however, staff will need further direction in relation to the project. Alternative 2 will result in delays to the project schedule, resulting in increased risk for potential debris flows in Mackay Creek and Grouse Creek. SUMMARY / CONCLUSION The Invitation to Tender (Tender No ) was issued for Construction of the Mackay Creek and Grouse Creek Debris Flow Mitigation Works. BEL Contracting was confirmed as the sole compliant tenderer. It is recommended that the GVWD Board authorize the Commissioner and the Corporate Officer to award and execute a contract with BEL Contracting in the amount of up to $5,092,679 (exclusive of taxes). Attachment: 1. Mackay Creek and Grouse Creek Debris Flow Mitigation Works Site Plan

11 ATTACHMENT 1 Mackay Creek and Grouse Creek Debris Flow Mitigation Works Site Plan Grouse Creek PARKING LOT PROJECT AREA PARKING LOT B Seasonal parking closures PARKING LOT A RED SKYRIDE BLUE SKYRIDE Temporary construction area GROUSE MOUNTAIN REGIONAL PARK CAPILANO WATERSHED PARKING LOT C WAY GREENE NANCY PARKING LOT D BADEN POWELL TRAIL EAST WORK AREA Raised bank WEST WORK AREA Flexible metal nets GROUSE G RIND TRAIL BCMC ROUTE Mackay Creek DISTRICT OF NORTH VANCOUVER DR GROUSEWOODS Temporary construction area POWERLINE TRAIL

12 Section E 1.2 To: From: Utilities Committee Roy Moulder, Division Manager, Purchasing and Risk Management, Financial Services Goran Oljaca, Director, Engineering and Construction, Water Services Date: June 22, 2018 Meeting Date: July 12, 2018 Subject: Award of Contract Resulting from RFP No : Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts RECOMMENDATION That the GVWD Board authorize: a) award of a contract in the amount of up to $19,501,320 (exclusive of taxes) to Northwest Pipe Company for the Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts, resulting from Request for Proposal No ; and b) the Commissioner and the Corporate Officer to execute the contract. PURPOSE This report is to advise the GVWD Board of the results of Request for Proposal (RFP) No : Supply and Delivery of Steel Pipe for Water Services Construction Contracts, and to recommend award of the contract in the amount of up to $19,501,320 (exclusive of taxes) to Northwest Pipe Company. BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the Board of Directors. This report is being brought forward to the Utilities Committee to consider a recommendation to the GVWD Board to award a contract for Supply and Delivery of Steel Pipe for 2019 Water Services Construction Projects. This report is being brought forward at this time in order to maintain the respective project schedules given the long lead time for supply and delivery of large diameter steel water pipe. PROJECT DESCRIPTION As shown on Attachment 1, the three (3) main projects included as contract items in RFP for supply and delivery of steel pipe include: Douglas Road Main No. 2 (Vancouver Heights Section) Port Mann Main No. 2 (South); and Whalley Main. Douglas Road Main No. 2 (Vancouver Heights Section) is located in the City of Burnaby and consists of approximately 2.0 km of 1.5 m diameter water main between the Vancouver Heights Reservoir and Pump Station and Beta Avenue/Albert Street. This main is required to increase the capacity and

13 Award of Contract Resulting from RFP No : Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts Utilities Committee Regular Meeting Date: July 12, 2018 Page 2 of 3 reliability of supply between the Vancouver Heights Reservoir in Burnaby and the Westburnco Reservoir in New Westminster. Port Mann Main No. 2 (South) is located in the City of Surrey and consists of approximately 3.1 km of 1.5 m diameter water main, from the south end of the Port Mann Water Supply Tunnel to the Whalley Reservoir. This main is required to meet growth south of the Fraser River. Whalley Main is also located in the City of Surrey and consists of approximately 2.0 km of 1.5 m diameter water main from the Whalley Reservoir to Whalley-Kennedy Link Main. This main is also required to meet growth south of the Fraser River. The RFP also included two provisional items related to short pre-build projects for the Central Park Main Replacement (Maywood Street Pre-build) in Burnaby and the Kennedy Newton Main Prebuild in Surrey. The funding associated with the construction of these two projects is included in the 2019 GVWD Long Range Plan. Proposals were only considered from the Respondents advanced following Request for Qualifications (RFQ) No Supply and Delivery of Steel Pipe for Potable Water that was publicly advertised on Metro Vancouver s and BC Bid websites. RFQ No closed on February 25, The three (3) prequalified Respondents (the Proponents ) are (in alphabetical order): Ameron Water Transmission Group Mid America Pipe, Fabricating & Supply Co. Northwest Pipe Company The RFP closed on June 14, 2018 and one proposal was received from Northwest Pipe Company. Northwest Pipe s proposal met all of the technical requirements and their prices are summarized below (exclusive of taxes). Proponent Contract Items Provisional Items Total Cost Northwest Pipe Company $19,501,320 $3,939,857 $23,441,177 It is intended that the contract items be awarded at this time and the provisional items be awarded through an amendment to the Purchase Order after the allocated project funds are approved as part of the 2019 GVWD Budget. ALTERNATIVES 1. That the GVWD Board authorize: a) award of a contract in the amount of up to $19,501,320 (exclusive of taxes) to Northwest Pipe Company, for the Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts, resulting from Request for Proposal No ; and b) the Commissioner and the Corporate Officer to execute the contract. 2. That the GVWD Board terminate RFP No , Supply and Delivery of Steel Pipe for 2019 Water Services Construction Projects, and direct staff to report back to the GVWD Board with options for an alternate course of action.

14 Award of Contract Resulting from RFP No : Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts Utilities Committee Regular Meeting Date: July 12, 2018 Page 3 of 3 FINANCIAL IMPLICATIONS As of July 1, 2018, the cost associated with the supply of steel pipe is being impacted by recently imposed steel tariffs that were not accounted for when the respective project budget estimates were developed for product procurement. The Proponents were asked to include these tariffs in their proposal pricing and the recommended contract award includes the appropriate steel tariffs. Should the steel tariffs be reduced or eliminated by the time delivery occurs in 2019, mechanisms are in place for GVWD to benefit from those actions. While the proposal price from Northwest Pipe Company exceeds the Engineer s estimate for the work, due primarily to the new steel tariffs, there is sufficient contingency within the respective project budgets to accommodate the recommended award. If the GVWD Board approves Alternative 1, a contract will be awarded to Northwest Pipe Company, in an amount of up to $19,501,320 (exclusive of taxes), for the contract items. The Purchase Order will be amended to include the provisional items once the allocated project funds have been approved. Due to the variability in steel prices over the past several months, the contract document has accounted for a steel price escalation or de-escalation based on the American Metal Market Hot Rolled Coil Midwest index. This index will be applied to the provisional items should a change in material prices affect the supply of steel pipe. The GVWD Board has the choice not to proceed with Alternative 1, but staff will need further direction in relation to the steel pipe procurement for the projects. Alternative 2 may result in additional costs due to steel price escalation and will also lead to delays to the respective project schedules that will impact the development of additional capacity for long term growth and replacement of aging existing infrastructure to improve the reliability of supply. SUMMARY/CONCLUSION A Request for Proposal was issued for the Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts, and Northwest Pipe Company was the only supplier that submitted a proposal. Based on the evaluation of the proposal in response to RFP No : Supply and Delivery of Steel Pipe for 2019 Water Services Construction Contracts, it is recommended that the GVWD Board authorize the award of a contract to Northwest Pipe Company in the amount of up to $19,501,320 (exclusive of taxes) and the Commissioner and the Corporate Officer to execute the contract. Attachments 1. Locations Map for 2019 Water Services Construction Contracts

15 ATTACHMENT 1 District of North Vancouver Vancouver Heights Reservoir Douglas Road Main No.2 (Vancouver Heights Section) Village of Anmore Locations Map for 2019 Water Services Construction Contracts City of Port Moody Burnaby Mountain Reservoir Burnaby Mountain Tank Reservoir City of Burnaby City of Coquitlam Cape Horn Reservoir Central Park Reservoir Westburnco Reservoir Central Park Main Replacement (Maywood Street Prebuild) City of New Westminster Port Mann Main No.2 (South) Whalley Main Whalley Reservoir City of Richmond Kennedy Reservoir Hellings Tank Reservoir City of Surrey City of Delta Kennedy Newton Main Prebuild Newton Reservoir Kilometers Legend MV Pump Station MV Reservoir MV Water Main

16 Section E 1.3 To: From: Utilities Committee Roy Moulder, Division Manager, Purchasing and Risk Management, Financial Services Goran Oljaca, Director, Engineering and Construction, Water Services Date: June 26, 2018 Meeting Date: July 12, 2018 Subject: Award of Contract Resulting from RFP No : South Delta Main No. 1 Replacement - Phase 3 RECOMMENDATION That the GVWD Board authorize: a) award of a contract in an amount of up to $11,236, (exclusive of taxes) to Graham Infrastructure LP resulting from Request for Proposal No : South Delta Main No. 1 Replacement Phase 3; and b) the Commissioner and the Corporate Officer to execute the contract. PURPOSE This report is to advise the GVWD Board of the results of the Request for Proposal No : South Delta Main No. 1 Replacement Phase 3, and to recommend award of the contract in the amount of up to $11,236, (exclusive of taxes) to Graham Infrastructure LP to enable the South Delta Main No. 1 Replacement Phase 3 project, excluding the work associated with the Railway Crossing, to proceed to completion. BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts that exceed a value of $5 million require the approval of the GVWD Board of Directors. This report is being brought forward to the Utilities Committee to consider a recommendation to the GVWD Board to award a contract for South Delta Main No. 1 Replacement Phase 3. PROJECT DESCRIPTION The existing South Delta Main No. 1, built in 1966, is being replaced, in stages, between 34B Avenue and 12th Avenue to increase the capacity and reliability of supply to South Delta and Tsawwassen First Nation. As shown in the Attachment to this report, Phase 3 of this project consists of approximately 1,600 meters of 900mm (36-inch) diameter welded steel pipe to be constructed along 53rd Street/Arthur Drive between 34B Avenue and 28th Avenue. The work is being coordinated with the City of Delta s road improvement project on 53rd Street in order to reduce overall project costs and minimize impacts to the public. As a result of the Request for Qualifications, RFQ No , five experienced contractors were shortlisted and invited to respond to RFP No The RFP closed on June 20, 2018 and three contractors responded. Prices are summarized in Table 1 below (exclusive of taxes):

17 Table 1: Proposals Received Award of Contract Resulting from RFP No : South Delta Main No. 1 Replacement - Phase 3 Utilities Committee Regular Meeting Date: July 12, 2018 Page 2 of 4 Contractor Part A Part B Total Proposal Price (exclusive of taxes) Graham Infrastructure LP $10,553, $3,556, $14,110, JJM Construction Ltd. $11,026, $4,398, $15,425, Pedre Contractors Ltd. $13,277, $5,633, $18,911, The technical component of the proposals was evaluated by staff from Water Services and the financial component was evaluated by staff from the Purchasing and Risk Management Division. The proposal submitted by Graham Infrastructure LP received the highest overall score. The RFP No included two sections of the project as follows: Part A Installation of 1,210m of 900mm diameter water main within the road right-of-way along 28th Avenue and 53rd Street, the 28th Avenue cross-over valve chamber and approximately 375m of 1,050mm diameter HDPE drainage pipe for the City of Delta. Part B Trenchless crossing installation of 374m of 900mm diameter water main under B.C. Rail railway and Deltaport Way at the 53rd Street overpass and other provisional items related to Part A. The Railway Crossing portion of Part B was included as a provisional item considering that the necessary crossing permits and property rights have not yet been finalized. This report is being brought forward at this time, prior to receipt of the Railway Crossing permits and property rights approvals, in order to maintain the project schedule, which has been coordinated with the City of Delta s upcoming road improvement project on 53rd Street. The breakdown of the prices for the South Delta Main No. 1 Replacement Phase 3 project that can proceed immediately, and provisional items that require Railway Crossing permit resolution, are presented below: Table 2: Proposal Price Breakdown Item Description Cost 1 Works to be awarded - Part A $10,553, Works to be awarded - Part B (Provisional items related to Part A) $682, Total (exclusive of taxes) for initial award $11,236, Provisional Items (Part B - trenchless crossing installation of 374m of 900mm diameter water main) pending Railway Crossing permit approval $2,873, Total (exclusive of taxes) $14,110,098.22

18 Award of Contract Resulting from RFP No : South Delta Main No. 1 Replacement - Phase 3 Utilities Committee Regular Meeting Date: July 12, 2018 Page 3 of 4 Item 2 noted above in Table 2 will be awarded, through an amendment to the contract, after the required permits and property rights are secured. ALTERNATIVES 1. That the GVWD Board authorize: a) award of a contract in an amount of up to $11,236, (exclusive of taxes) to Graham Infrastructure LP resulting from Request for Proposal No : South Delta Main No. 1 Replacement Phase 3; and b) the Commissioner and the Corporate Officer to execute the contract. 2. That the GVWD Board terminate RFP No : South Delta Main No. 1 Replacement Phase 3 and direct staff to report back to the GVWD Board with options for an alternate course of action. FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, a contract will be awarded to Graham Infrastructure LP for Item No. 1 noted above in Table 2 in the amount of up to $11,236, (exclusive of taxes) to complete this portion of the project work. The proposal from Graham Infrastructure LP is the highest ranked and lowest price proposal. The total contract value, including the provisional items in Part B related to the Railway Crossing is anticipated to be $14,110,098.22, which is within the overall project budget. Through a cost sharing agreement, the City of Delta will reimburse GVWD for the cost attributable to the City of Delta s work. The GVWD Board has the choice not to proceed with Alternative 1, but staff will need further direction in relation to the project. Alternative 2 will result in a delay to the project schedule and increase costs for storage of the welded steel pipe which has been purchased under a separate supply contract. This alternative will also affect the schedule for the City of Delta s proposed road improvements on Arthur Drive/53rd Street as the respective projects are being jointly coordinated. SUMMARY/CONCLUSION A Request for Proposal was issued for the South Delta Main No. 1 Replacement Phase 3 and Graham Infrastructure LP was identified as offering the highest scored and lowest price proposal. The Request for Proposal included two sections of the project: Part A Installation of 1,210m of 900mm diameter water main within the road right-of-way along 28th Avenue and 53rd Street, the 28th Avenue cross-over valve chamber and approximately 375m of 1,050mm diameter HDPE drainage pipe for the City of Delta. Part B Trenchless installation of 374m of 900mm diameter water main under B.C. Rail railway and Deltaport Way at the 53rd Street overpass and other provisional items related to Part A. Part B works related to the Railway Crossing will be awarded through an amendment to the contract after the required permits and property rights are secured. This arrangement allows the water main

19 Award of Contract Resulting from RFP No : South Delta Main No. 1 Replacement - Phase 3 Utilities Committee Regular Meeting Date: July 12, 2018 Page 4 of 4 installation within the City of Delta roads to proceed so that road reconstruction can be completed as scheduled. Based on the evaluation of the proposals in response to RFP : South Delta Main No. 1 Replacement Phase 3, it is recommended that the Board authorize the Commissioner and the Corporate Officer to award and execute a contract to Graham Infrastructure LP in the amount of up to $11,236, (exclusive of taxes). Attachment 1. South Delta Main No. 1 Replacement Phase 3 Key Plan

20 ATTACHMENT 1 Corporation of Delta SOUTH DELTA MAIN No. 1 SOUTH DELTA MAIN No. 2 PHASE 3 Tsawwassen First Nation Boundary PHASE 2 Complete South Delta Main No. 2 Georgia Strait Tsawwassen Mills Shopping Mall PHASE 1 Complete PHASE 2 Complete 12 Ave Boundary Bay South Delta Main No. 2 SCALE: N.T.S. GREATER VANCOUVER WATER DISTRICT SOUTH DELTA MAIN No. 1 REPLACEMENT - PHASE 3 KEY PLAN GJ/06/18 X-C-230A/W-3181

21 Section E 1.4 To: From: Utilities Committee Roy Moulder, Division Manager, Purchasing and Risk Management, Financial Services Frank Huber, Director, Major Projects, Management Systems and Utility Services, Water Services Date: June 8, 2018 Meeting Date: July 12, 2018 Subject: Award of Phase B, Construction Engineering Services for the Second Narrows Water Supply Tunnel RECOMMENDATION That the GVWD Board authorize: a) award of Phase B, Construction Engineering Services in the amount of up to $15,424,430 (exclusive of taxes) to the Phase A consultant, McMillen Jacobs Canada Corporation, for the Second Narrows Water Supply Tunnel; and b) the Commissioner and the Corporate Officer to execute the required documentation. PURPOSE This report is to request authorization by the GVWD Board to award Phase B Construction Engineering Services to the Phase A consultant, McMillen Jacobs Canada Corporation (McMillen Jacobs) for the Second Narrows Water Supply Tunnel Project in the amount of up to $15,424,430 (exclusive of taxes). BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the GVWD Board of Directors. For multi-phase consultancy contracts, the Policy provides that the value of the contract is the anticipated total value of the services to be provided over all phases, excluding taxes. The current contract was initially awarded in 2015 to the project consultant, McMillen Jacobs for detailed design of the Second Narrows Water Supply Tunnel and now requires GVWD Board approval to proceed with Phase B, Construction Engineering Services. This report is being brought forward to the Utilities Committee to consider a recommendation to the GVWD Board to authorize award of Phase B, Construction Engineering Services, prior to proceeding to the construction stage of the Second Narrows Water Supply Tunnel Project. PROJECT DESCRIPTION The Second Narrows Water Supply Tunnel will replace existing marine crossings of Burrard Inlet and provide improved seismic resiliency for the GVWD s water transmission system, increased capacity to meet future demand, and long term scour protection. The existing Second Narrows Crossings No. 1, 2, and 3 constructed in 1948, 1954 and 1978, respectively, cross under Burrard Inlet between North

22 Award of Phase B, Construction Engineering Services for the Second Narrows Water Supply Tunnel Utilities Committee Regular Meeting Date: July 12, 2018 Page 2 of 3 Vancouver and Burnaby and are buried in relatively shallow trenches, covered with riprap scour protection. Previous seismic vulnerability studies found that the existing crossings are vulnerable to failure during a moderate earthquake. Construction engineering services are required by the Corporation to oversee and monitor the project construction to ensure it is completed in conformance with design drawings and in conformance with all applicable codes and standards. Some of the key construction engineering services include: Assisting the Corporation during the procurement stage; Reviewing contractor and vendor shop drawings and submittals; Providing all necessary field engineering and inspection services during construction to ensure conformity to the design, quality assurance, claims mitigation, and adherence to contract requirements; Providing drawing and specification updates as required; Preparing record drawings, construction summary report and operations and maintenance manuals at the end of construction. In response to Request for Proposal (RFP) No , proposals were received from two pre-qualified firms for provision of consulting engineering services for Phase A, Detailed Design, Phase B, Construction Engineering, and Phase C, Construction Management Services (optional). McMillen Jacobs was identified as offering the highest ranked proposal. Following negotiations, McMillen Jacobs was awarded Phase A, Detailed Design for $9,740,595 (exclusive of taxes). Since the award of Phase A, ten (10) change orders totaling an amount of $1,316,162 or 13.5% of the original contract value have been issued due to unforeseen changes in project scope, supplemental geotechnical and environmental exploration and analysis, and additional assistance with the acquisition of permits and approvals. The revised total value of the contract for Phase A services is $11,056,756 (exclusive of taxes). On May 31, 2018, McMillen Jacobs provided an estimated cost of $15,424,430 (exclusive of taxes) for Phase B Construction Engineering Services. This is higher than the original proposed amount ($10,769,166) due to an increase in the estimated duration of the Construction Engineering Phase from 54 months to 72 months. The initial 54-month construction duration was estimated prior to completion of the detailed design and development of the construction schedule. The main drivers for the increase in schedule include increased durations for certain construction tasks including tunnel and shaft construction, pipeline installation and backfill, and valve chamber construction. Additional costs are also required to cover updated hourly rates relative to those quoted in 2015, which were allowed for under the requirements of RFP No. 14, 214, and inclusion of an allowance for engineering services during the pipe tie-in work and site restoration which was not part of the scope of work in the original RFP.

23 Award of Phase B, Construction Engineering Services for the Second Narrows Water Supply Tunnel Utilities Committee Regular Meeting Date: July 12, 2018 Page 3 of 3 ALTERNATIVES 1. That the GVWD Board authorize: a) award of Phase B, Construction Engineering Services in the amount of up to $15,424,430 (exclusive of taxes) to the Phase A consultant, McMillen Jacobs Canada Corporation, for the Second Narrows Water Supply Tunnel; and b) the Commissioner and the Corporate Officer to execute the required documentation. 2. That the GVWD Board terminate the contract with McMillen Jacobs Canada Corporation resulting from RFP No : Consulting Engineering Services for the Second Narrows Water Supply Tunnel, and direct staff to report back to the GVWD Board with options for an alternate course of action. FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, Award of Phase B, Construction Engineering Services, an amount of up to $15,424,430 will be added to the contract with McMillen Jacobs Canada Corporation. The total value of the contract for all phases is anticipated to be $26,481,186 (exclusive of taxes). This amount is within the $430 million budget allotted for construction of the Second Narrows Water Supply Tunnel Project. The GVWD Board has the choice not to proceed with Alternative 1 but staff would need further direction in relation to the project. Alternative 2 will result in a delay to the project schedule and is anticipated to add additional costs to the overall project. SUMMARY / CONCLUSION Construction engineering services are required by the Corporation to oversee and monitor this technically challenging project to ensure it is completed in conformance with design drawings and in conformance with all applicable codes and standards. A Request for Proposal was issued for design services for the Second Narrows Water Supply Tunnel and McMillen Jacobs Canada Corporation was identified as the highest ranked proponent. As Phase A nears completion, staff have identified that the total anticipated value of the contract for Phase B, Construction Engineering Services will exceed the original estimated fee of $10,769,166. This is the result of changes to the estimated duration of the construction schedule, increased hourly rates relative to those quoted in 2015, and inclusion of an allowance for engineering services during the pipe tie-in work and site restoration which were not included in the original proposal submission. It is recommended that the GVWD Board authorize the award of Phase B, Construction Engineering Services in the amount of up to $15,424,430 (exclusive of taxes) to McMillen Jacobs Canada Corporation, and authorize the Commissioner and Corporate Officer to execute the required documentation

24 Section E 1.5 To: From: Utilities Committee Roy Moulder, Division Manager, Purchasing and Risk Management, Financial Services Frank Huber, Director, Major Projects, Management Systems and Utility Services, Water Services Date: June 7, 2018 Meeting Date: July 12, 2018 Subject: Award of Phases 2 and 3, Construction Management Services for the Second Narrows Water Supply Tunnel RECOMMENDATION That the GVWD Board authorize: a) award of Phases 2 and 3, Construction Management Services in the amount of up to $10,660,920 (exclusive of taxes) to the Phase 1 consultant, Mott MacDonald Canada Ltd., for the Second Narrows Water Supply Tunnel; and b) the Commissioner and the Corporate Officer to execute the required documentation. PURPOSE This report is to request authorization by the GVWD Board to award Phases 2 and 3 Construction Management Services to the Phase 1 consultant, Mott MacDonald Canada Ltd. (Mott MacDonald) for the Second Narrows Water Supply Tunnel Project in the amount of up to $10,660,920 (exclusive of taxes). BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the GVWD Board of Directors. For multi-phase consultancy contracts, the Policy provides that the value of the contract is the anticipated total value of the services to be provided over all phases, excluding taxes. The current contract for Construction Management Services was initially awarded in 2017 to Mott MacDonald, for Phase 1, Pre-Construction, and now requires GVWD Board approval to proceed with Phase 2, Construction and Phase 3, Post-Construction. This report is being brought forward to the Utilities Committee to consider a recommendation to the GVWD Board to authorize award of Phase 2 and Phase 3, Construction Management Services, prior to proceeding to the construction stage of the Second Narrows Water Supply Tunnel Project. PROJECT DESCRIPTION The Second Narrows Water Supply Tunnel will replace existing marine crossings of Burrard Inlet and provide improved seismic resiliency for the GVWD s water transmission system, increased capacity to meet future demand, and long term scour protection. The existing Second Narrows Crossings No. 1, 2 and 3, constructed in 1948, 1954 and 1978, respectively, cross under Burrard Inlet between North Vancouver and Burnaby and are buried in relatively shallow trenches, covered with riprap scour

25 Award of Phases 2 and 3, Construction Management Services for the Second Narrows Water Supply Tunnel Utilities Committee Regular Meeting Date: July 12, 2018 Page 2 of 3 protection. Previous seismic vulnerability studies found that the existing crossings are vulnerable to failure during a moderate earthquake. Construction management services are required by the Corporation to oversee the project team with the goal of effectively managing the schedule, budget and technical requirements. The construction management consultant is to apply and integrate comprehensive project controls to manage schedule, cost, scope, quality, risk and safety. Some of the key construction management services include: Phase 2: Construction Activities/Contract Administration Provide full-time on-site construction management and contract administration duties Document management and tracking of submittals and RFI s Cost control Document construction progress and activities and provide regular progress reports Facilitate regular site meetings Liaise with permitting agencies and monitor compliance with permit conditions Assist with claims and dispute resolution. Phase 3: Post-Construction Activities Prepare contract completion report Coordinate compilation of record drawings Resolve outstanding claims Conduct and document a formal Lessons Learned task. Request for Proposal (RFP) No was issued on March 21, 2017, and was publicly advertised on Metro Vancouver and BC Bid websites. The RFP closed on April 27, 2017, and proposals were received from four firms. Mott MacDonald was identified as offering the highest ranked proposal. Following negotiations, Mott MacDonald was awarded Phase 1, Pre-Construction for $454,231 (exclusive of taxes). Since the award of Phase 1, two (2) change orders totalling an amount of $248,069 or 54% of the original contract value have been issued due to minor modifications to the project scope and increased services associated with an unforeseen delay in contractor procurement resulting in services extending over an additional five-month duration. The revised total value of the contract for Phase 1 services is $702,300 (exclusive of taxes). On June 5, 2018, Mott MacDonald provided an updated budget estimate to cover the remaining scope of Construction Management services. As summarized in Table 1, the estimated total cost for the combined Phase 2, Construction and Phase 3, Post-Construction phases remains unchanged from the original negotiated price of $10,660,920 (excluding tax). Table 1: Comparison of Original and Updated Cost for Phases 2 and 3 Original Negotiated June 2018 Difference Price Updated Budget Phase 2 - Construction $10,146,478 $10,094,724 ($51,754) Phase 3 - Post-Construction $514,442 $566,196 $51,754 Total (excluding tax) $10,660,920 $10,660,920 $0

26 Award of Phases 2 and 3, Construction Management Services for the Second Narrows Water Supply Tunnel Utilities Committee Regular Meeting Date: July 12, 2018 Page 3 of 3 ALTERNATIVES 1. That the GVWD Board authorize: a) award of Phases 2 and 3, Construction Management Services in the amount of up to $10,660,920 (exclusive of taxes) to the Phase 1 consultant, Mott MacDonald Canada Ltd., for the Second Narrows Water Supply Tunnel; and b) the Commissioner and the Corporate Officer to execute the required documentation. 2. That the GVWD Board terminate the contract with Mott MacDonald Canada Ltd. resulting from RFP No : Construction Management Services for the Second Narrows Water Supply Tunnel, and direct staff to report back to the GVWD Board with options for an alternate course of action. FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, an amount of up to $10,660,920 will be added to the contract with Mott MacDonald Canada Ltd. The total value of the contract for all three (3) Phases is anticipated to be $11,363,220 (exclusive of taxes). This amount is within the $430 million budget allotted for construction of the Second Narrows Water Supply Tunnel. The GVWD Board has the choice not to proceed with Alternative 1 but staff would need further direction in relation to the project. Alternative 2 will result in a delay to the project schedule and is anticipated to add additional costs to the overall project. SUMMARY / CONCLUSION A construction management consultant is required for the Second Narrows Water Supply Tunnel to oversee and ensure the successful execution of this technically challenging and complex project that involves tunnelling deep under Burrard Inlet. A Request for Proposal was issued for construction management services for the Second Narrows Water Supply Tunnel. The contract for Phase 1, Pre-construction Services was initially awarded on July 28, 2017 to the highest ranked proponent, Mott MacDonald Canada Ltd. As Phase 1 nears completion, staff have identified that a budget of $10,660,920 is required to cover provision of Phase 2 and Phase 3, Construction Management Services which is unchanged from the original negotiated price. It is recommended that the GVWD Board authorize the award of Phases 2 and 3, Construction Management Services in the amount of up to $10,660,920 (exclusive of taxes) to Mott MacDonald Canada Ltd., and authorize the Commissioner and Corporate Officer to execute the required documentation