Invitation to Tender General Contracting Services For Demolition of the Beachcomber Water Reservoir

Closing Date: Tenders must be received before 2:00 PM Pacific Time on May 5th, 2015

Closing location: Regional District of Nanaimo Regional and Community Utilities Second Floor 6300 Hammond Bay Road Nanaimo, BC V9T 6N2

Contact person: Gerald St. Pierre, P.Eng., PMP Project Engineer Water and Utility Services Phone 250-390-6751 [email protected]

Contents 1

Background ........................................................................................................................................... 1

2

Instructions to Bidders .......................................................................................................................... 2 2.1

Introduction .................................................................................................................................. 2

2.2

Non-Mandatory Site Meeting ....................................................................................................... 2

2.3

Submission of Tenders .................................................................................................................. 2

2.4

Contact and Requests for Information ......................................................................................... 3

2.5

Withdrawal.................................................................................................................................... 3

2.6

Acceptance of Tenders.................................................................................................................. 4

2.7

Definition and Form of Contract ................................................................................................... 4

2.8

Liability Insurance and Worksafe BC............................................................................................. 4

2.9

Modification of Terms................................................................................................................... 4

2.10

Ownership of Responses............................................................................................................... 4

2.11

Confidentiality of Information ...................................................................................................... 4

2.12

Tender Evaluation ......................................................................................................................... 5

3

Schedules .............................................................................................................................................. 6

4

Attachments.......................................................................................................................................... 7

1 Background The Beachcomber Water reservoir is a 6.4m diameter, 17.1m high, 120,000 Imperial Gallon, bolted steel reservoir located on Claudet Road in Nanoose Bay, B.C. A structural review and coating inspections of the reservoir completed in 2012/2013 determined that the structural integrity of the roof does not meet standards and requires replacement. The Technical Memoranda recommended that the roof be closed to maintenance personnel as it is no longer safe to stand on. See the Technical Memoranda attached as Appendix A. An additional review of all the reservoirs within the Nanoose Bay Peninsula Water Service area, completed in May 2013, recommended that the Beachcomber Reservoir be removed, and that additional reservoir storage be constructed at a different location. As such, the RDN is now inviting Tenders for the demolition and removal of the Beachcomber Reservoir.

1

2 Instructions to Bidders 2.1 Introduction The Regional District of Nanaimo (RDN) invites Tenders from qualified Contractors for the demolition of the Beachcomber Water Reservoir, as detailed herein and in accordance with the documents included and referenced within this Invitation to Tender (ITT). -

-

Demolition and removal of the Beachcomber Water Reservoir, including any and all equipment, materials, permits, safety measures, environmental protection, hazardous material remediation and planning required. This includes obtaining a demolition permit from the RDN. The structural pad underneath the reservoir should remain, and care should be taken to protect it from damage during the demolition of the reservoir. The reservoir base sections and all piping, electrical, and controls connections to the reservoir should be removed down to, capped and/or terminated at ground level. The reservoir site should be left in the same or better condition as it was prior to reservoir removal. The Work for this project will be completed using a CCDC 2 – 2008, Stipulated Price Contract. This ITT, any Addenda, and the Tenderer’s completed Tender Forms will become part of the Contract Documents between the RDN and the Successful Tenderer.

2.2 Non-Mandatory Site Meeting

A non-mandatory site meeting will be held on Thursday, April 23rd, 2015 at 9am at the project site located at 1955 Claudet Road, Nanoose Bay, B.C.

2.3 Submission of Tenders This section describes the expectations for Tender submission and the basis for evaluation. Tender layout and content should be in general alignment with these expectations to facilitate comparative evaluation. Before submitting Tenders, Tenderers must satisfy themselves about the nature and location of the work, local conditions, the professional services, equipment, technology and facilities needed for the execution of the work, and all other factors that might have a bearing on their Tender. Tenderers are fully responsible for obtaining all information required for the preparation of Tenders and the execution of the work. Tenderers are solely responsible for their own expenses in preparing and submitting Tenders, and for any meeting, negotiations, or discussions with the RDN or its representatives and consultants, relating to or arising from this ITT. Tenderers agree that by participating in the ITT process, and/or submitting a Tender, they have no claim for compensation.

2

One (1) complete hard copy of each Tender must be received before 2:00 PM, Pacific Time, on May5th, 2015 at the address on the front cover of this ITT. Tenders received after the Closing Date will be returned unopened. Tenders sent by facsimile (fax) or e-mail will not be accepted. Tenders should be submitted on the attached Tender Forms and be authorized by a signing officer of the Tenderer’s company. Tenders are to be submitted in sealed envelopes clearly marked with: 1. Name and address of the Tenderer 2. Demolition of the Beachcomber Water Reservoir 3. Closing 2:00 PM, Pacific Time, May 5th, 2015 There will a public opening for this Tender at 2:00 PM, Pacific Time, May 5th, 2015 at the address on the front cover of this ITT.

2.4 Contact and Requests for Information The contact person for the RDN is: Gerald St. Pierre, P.Eng., PMP Project Engineer, Water and Utility Services Office Phone: 250-390-6751 Email: [email protected] Any requests for information (RFI) related to this ITT are to be directed, in writing at least seven (7) calendar days prior to the Closing Date, to Gerald St. Pierre. Email contact is [email protected]. RFI’s and answers will be recorded and, where the information requested is not already clearly indicated, distributed via addendum posted to BC Bid at (www.bcbid.gov.bc.ca). It is the responsibility of the Tenderer to download and obtain any addenda posted. Information obtained from any other source is not official and should not be relied upon.

2.5 Withdrawal Tenders may be withdrawn prior to the deadline upon emailed notice to Gerald St. Pierre. Withdrawn Tenders may be replaced by alternative Tenders providing emailed notice of intent is delivered to Gerald St. Pierre at least 24 hours prior to the deadline for closing noted above. Tenders must remain valid for 60 days following the ITT closing date and time noted. Tenders are irrevocable after the closing date and time.

3

2.6 Acceptance of Tenders This ITT is not an agreement to purchase goods or services. The RDN is not bound to enter into a Contract with any Tenderer. Tenders will be assessed in light of the Tender review criteria. The RDN will be under no obligation to receive further information, whether written or oral, from any Tenderer. The offer of services will prevail whether accurate or not. The acceptance of any Tender may be subject to approval by the Board of the Regional District.

2.7 Definition and Form of Contract The receipt of an offer of services with a Tender will not constitute a contract. A contract will not be entered into until the RDN accepts a Tender and the RDN and the Tenderer enter into a full written Contract as a result of this ITT. Only after a contract is mutually agreed to and signed by both parties, will a Tenderer acquire any legal or equitable rights or privileges. Any Contract with the selected Tenderer will be substantially similar to the terms and conditions of the CCDC 2 – 2008, Stipulated Price Contract.

2.8 Liability Insurance and Worksafe BC The successful Tenderer is required to submit to the RDN a Certificate of Insurance, naming the RDN as additional insured, a Worksafe BC Notice of Project, and Worksafe BC Clearance Letter, prior to the RDN issuing a Notice to Proceed. Insurance requirements will be as per GC 11.1 of the CCDC 2 – 2008 Stipulated Price Contract. The successful Tenderer will be assigned, and assume the responsibilities of, the Prime Contractor for the project.

2.9 Modification of Terms The RDN reserves the right to modify the terms of this ITT, in its sole discretion, at any time up to five (5) working days prior to the noted closing date. The RDN reserves the right to cancel this ITT at any time without entering into a Contract.

2.10 Ownership of Responses All documents, including Responses, submitted to the RDN become the property of the RDN. The RDN is bound by the provisions of the Freedom of Information and Protection of Privacy Act. All Tenderers submitting Tenders pursuant to this ITT are advised that such Tenders will be treated as public documents and the contents of the same disclosed upon written request if required to do so pursuant to the Act.

2.11 Confidentiality of Information Information pertaining to the RDN obtained by the Tenderer as a result of participation in this ITT is confidential and must not be disclosed without written authorization from the RDN.

4

2.12 Tender Evaluation The RDN reserves the right to reject any or all Tenders or to accept the Tender deemed most favorable in the interest of the District. The lowest priced or any Tender may not necessarily be accepted. Tenders will be evaluated based on the overall best value to the RDN. The decision as to what constitutes best value will be at the sole discretion of the RDN.

5

3 Schedules Schedule A – Tender Form Schedule B – List of Previous Contracts Schedule C – List of Subcontractors Schedule D – Proposed Work Schedule

6

ITT for Demolition of the Beachcomber Water Reservoir Regional District of Nanaimo

Schedule A – Tender Form (To be submitted with the Tender) The undersigned Tenderer, having carefully read and examined the Instructions to Tenderers, Tender Forms and Attachments, has complied with the Instructions to Tenderers and hereby offers to perform all the work, and provide all the labour, material and equipment under the provisions therein set forth for Demolition of the Beachcomber Water Reservoir at the: LUMP SUM TOTAL TENDER PRICE OF $___________________________________ (in Canadian Dollars) GST $____________________________________ TENDER PRICE PLUS GST $____________________________________

Substantial Performance: The Tenderer agrees to attain Substantial Performance of the Work within ___________ days after Contract award. Addenda: We acknowledge receipt of the following Addenda to the Tender documents: Addendum No. ____ dated: ____________________________ of: ______ pages Addendum No. ____ dated: ____________________________ of: ______ pages Addendum No. ____ dated: ____________________________ of: ______ pages Addendum No. ____ dated: ____________________________ of: ______ pages Signed and Authorized: Company Name: ____________________________

Contact Name and Title (please print)

Address: ___________________________________

_______________________________

__________________________________________

_______________________________

Phone: ____________________________________

Authorized Signature:

Fax: ______________________________________

_______________________________

Email: ____________________________________

Date: __________________________

ITT for Demolition of the Beachcomber Water Reservoir Regional District of Nanaimo

Schedule B – List of Previous Contracts (To be submitted with Tender) The Tenderer has recently undertaken and completed the contracts described below and authorizes the RDN to inquire as to the Tenderer’s performance on these contracts. Project

Owner/Contact

Description of Work Owner / Contact

____________________________

Phone _______________ Email Owner / Contact

____________________________

Phone _______________ Email Owner / Contact

_________________

____________________________

Phone _______________ Email Owner / Contact

_________________

____________________________

Phone _______________ Email Owner / Contact

_________________

____________________________

Phone _______________ Email Owner / Contact

_________________

_________________

____________________________

Phone _______________ Email

_________________

Date Completed

Value ($)

ITT for Beachcomber Water Reservoir Demolition Regional District of Nanaimo

Schedule C – List of Subcontractors (To be submitted with Tender) TENDER ITEM

TRADE

SUBCONTRACTOR NAME

PHONE NUMBER

ITT for Demolition of Beachcomber Water Reservoir Regional District of Nanaimo

Schedule D – Proposed Work Schedule (To be submitted with Tender) Indicate schedule below with major activities and their durations. DEMOLITION SCHEDULE (work days)

ACTIVITY 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

4 Attachments Appendix A – 1243 Technical Memorandum No. 1 and 1243 Technical Memorandum No. 2, Koers & Associates Engineering Ltd. Appendix B – Photographs of the Beachcomber Reservoir

Note: Neither design nor as-constructed drawings are available for this reservoir.

7

hj wilke CONSULTANTS

Phone: (250) 751-4130

2335 Marlborough Drive, Nanaimo, BC V9S 3J3

e-mail: [email protected]

16 October 2012 PROJECT: HJ Wilke Report #:

Nanoose (Claudet Road) Reservoir Interior Coating Assessment HJW_KOERS_NRD_Nanoose Res Interior_16OCT12.doc

Interior Coating Assessment Harry Wilke, NACE Certified Coating Inspector #1195 visited the Claudet Road site on 16 October 2012 to assess the interior coating (lining) condition of the bolted steel reservoir. The reservoir was reported to have been in service since approximately 1974 (38 years). We were able to access the coated surface from the tank floor level only. We assessed, as far as possible, the upper sections of the tank interior visually through the use of binoculars. The lining of the reservoir is in good condition generally with localized exceptions as noted. The above-water portion of the tank interior and supporting structural steel and roof stiffeners showed large amounts of corrosion. We noted near complete wastage of some roof stiffeners. Structural Engineer, Dale Harrison, also made inspections of the tank interior and rood corrosion at the time of inspections and we will defer to his expertise and recommendations regarding the structural condition of the roof. INSPECTION RESULTS Lining is generally stained overall. The lower 16’ of tank had been power washed to allow for inspection of the surface. Dry Film Thickness (DFT) measurement made with Positector 6000 gauge returned 8.42mils average DFT ranging from a low of 4.5mils to a high of 11.6 mils. No destructive testing of the lining material was made. Adhesion appears to be excellent as evidenced by the lack of corrosion undercutting the coating film. We noted localized spot corrosion on the general plate surface in the form of 2mm to 5mm spots. For the lower 8’ section of the tank we noted 8 such spots. The underlying substrate at these spots showed no appreciable pitting or section loss. Within the channels associated with the bolts we noted random corrosion products on an estimated 5% of the bolts with some deformation of the channels in some instances. The upper portion of the tank wall could only be viewed from the tank floor and through the roof hatch. Based on the inspections from the tank floor, it is reasonable to assume that the condition of the lining, within the immersion zone, will be as good or better than that of the lower area. The tide-line area and above does exhibit more advanced corrosion and coating breakdown. In the above water-line zone we noted localized breakdown of the coatings at plate edges, interference items, such as level equipment brackets and the like. Tank roof structure is generally corroded with near complete failure of the protective coatings. As noted in previous inspections, replacement of the tank roof structural components is seen as the only remedy for ensuring structural integrity and safety. CONCLUSIONS Interior lining is generally sound and providing good corrosion protection with localized exceptions as noted. Some touch-up of localized corrosion may be considered to ensure long term structural integrity of the tank. However, the upper zone of the tank (top 8’ of walls and roof underside), show more generalized coating breakdown and corrosion that must be addressed over the next 18 months or so. Interior coating of roof structural components has failed generally. Localized section loss and some general wastage must be addressed to maintain structural integrity of the next 10+ years. There is no immediate risk of structural failure of the tank roof. However, there is risk in terms of worker safety and integrity of the water supply.

RECOMMENDATIONS 1. Review findings of structural inspections made by Dale Harrison, P.Eng regarding repair or replacement measures to be made to the roof structure and costing of same. 2. Signage should be placed immediately on the tank exterior access ladder stating that the roof is unsafe to support workers in the interim. 3. Seek budget pricing from coating contractors for spot touch up of the tank lining within the immersion zone. 4. Seek budget pricing from coating contractors for complete removal and relining of the upper 8’ of the tank walls. 5. Seek budget pricing from coating contractors for spot touch up of the tank exterior coating as recommended in the report of 26 July 2012. 6. Final course of action for remedial work must take into account the cost overall for repairing the tank coatings, linings and roof replacement versus replacement of the tank overall. Future needs for increased water storage capacity will need to be factored 7. Method of spot touch up – Interior. •

High pressure (8000-12000psi) water jetting of the entire liner surface to remove all contamination and corrosion products.

•

Spot prepare corrosion on the plate surfaces to SSPC SP11 (Power Tool Cleaning to Bare Metal with surface profile requirement). Feather spots to sound coating (plate). Note: water-jetted corrosion within bolts/channel areas to be coated without further SP11 surface preparation requirement.

•

Spot coat prepared areas on plate surfaces with one coat of NSF rated high solids epoxy such as Devoe BarRust 233H to DFT of 12 - 16mils. Also, thoroughly brush apply material into crevices, bolts and associated channel with same coating.

•

Abrasive blast upper zone of tank to SSPC SP10. Apply 2 coats of NSF rated high solids epoxy such as Devoe BarRust 233H to DFT of 12 - 16mils.

PHOTO 1 – Typical of corrosion within channel and bolt head area. Such areas are to be cleaned from multiple angles using high pressure water jetting and then thoroughly coated by smearing suitable NSF epoxy material into cracks and crevices from which the corrosion products originated. Ensure full coverage and coating thickness is achieved.

PHOTO 2 – Typical of localized corrosion seen of plate surface. In this case approximately 2mm. Such areas are to be prepared to SSPC SP11 using power tools. Ensure feathering of coating and surface abrading of surrounding area to be coated. Apply one coat spot touch up coat of suitable NSF epoxy material to recommended DFT.

End of Report HJWilke

January 8, 2013 File: 20102730.00.E.12.00.03 Mr. Mitchell Brook Koers & Associates Engineering Ltd. 1994 Memorial Drive Parksville, BC V9P 2G8

Re:

REGIONAL DISTRICT OF NANAIMO BEACHCOMBER RESERVOIR STRUCTURAL CONDITION SURVEY

Dear Mr. Brook: 1

PROJECT BACKGROUND Associated Engineering was retained by Koers & Associates Engineering Ltd., to inspect the Beachcomber Water Reservoir owned by the Regional District of Nanaimo. The Beachcomber Reservoir is a 6.4 m diameter x 17.1 m high bolted-steel standpipe, constructed circa 1977 with a 3 storage capacity of 540 m (~120,000 Imperial Gallons). The reservoir is located at 1955 Claudett Road, approximately 4 km north of Nanoose Bay. The reservoir provides water storage for the Nanoose Bay Peninsula Community Water Supply. Associated Engineering was retained to conduct a structural condition survey of the roof of the tank due to the advanced state of corrosion identified during a previous inspection.

2

RESERVOIR DESCRIPTION No record drawings were available from the client. We contacted Stanco Projects, who constructed the tank, and they identified the reservoir as their project number S-77-105. They supplied us with some typical details for this size of tank but were not able to locate the original design drawings. The epoxy-coated bolted steel standpipe consists of an embedded steel starter ring plus seven rings for an overall height of 17.1 m. The roof consists of steel pie-shaped panels bolted together to form a “nominal” cone shape with radial slope from the centre to the perimeter. The bottom shell ring, or “starter ring” is embedded in a concrete slab foundation, located at grade.

P:\20102730\00_Koers_BCID_Res\Engineering\12.00_Inspections\03_Beachcomber_Res\Ltr_Koer_Beachcombreserv_Structsurvey_20130108_Dbh.Doc

January 8, 2013 Mr. Mitchell Brook Koers & Associates Engineering Ltd. -2There is one low-level access hatch in the bottom ring, one exterior galvanized steel ladder with mid-height platform, one access / viewing hatch in the roof and a screened vent at the centre of the roof. The vent is supported separately from the remainder of the roof by two channels, which span between the walls of the tank. There is an internal overflow, one high-level outlet, which appears to be jetted horizontally, and an outlet. No geotechnical information was available; however, we observed no noticeable settlement of the concrete foundation. 3

RESERVOIR STRUCTURAL INSPECTION The interior and roof of the reservoir was inspected by Dale Harrison, P.Eng., of Associated Engineering on October 16, 2012. The inspection was conducted with the assistance of the District staff. Mr. Harry Wilke, of H.J. Wilke Consultants, and Mr. Mitchell Brook, P.Eng., of Koers & Associates were also in attendance. Although we personally did not inspect the reservoir with water in it, the District staff reported that there were a few minor weeps observed while the tank is in service. The tank exterior has some minor staining at locations which were reported to leak. The foundation slab appears to be in fair to good condition with only minor cracks observed on the exterior. The tank shell appears to be in fair condition with some deterioration of the interior coating, and visible corrosion of the bolts on the interior. The reported leaks may indicate that the sealant between the panels has lost some of its elasticity due to age. The underside of the roof has severe corrosion (see attached photos) and the roof radial stiffeners have completely corroded through in at least one location. The roof panels have corroded completely through at the joint with the vent and daylight is visible between the vent and the roof panels. We did not conduct a seismic or structural assessment of the reservoir. However, based on our condition survey the roof has corroded to the point which it is dangerous to be on the roof and we recommend closing the roof to maintenance personnel and posting a no entry sign.

P:\20102730\00_Koers_BCID_Res\Engineering\12.00_Inspections\03_Beachcomber_Res\Ltr_Koer_Beachcombreserv_Structsurvey_20130108_Dbh.Doc

January 8, 2013 Mr. Mitchell Brook Koers & Associates Engineering Ltd. -34

RESERVOIR RETROFIT / REPLACEMENT OPTIONS We evaluated two options: a.

Replace the Roof: Mr. John Greig, of Stanco Projects, has prepared a cost estimate for removing the existing roof and top shell ring (see attached quote). Stanco would install a perimeter scaffold around the tank, unbolt the upper ring and remove the existing roof and upper shell ring. A new roof and upper shell ring would be assembled on the ground and lifted into place. The replacement of the roof, plus implementation of the coating repairs recommended by Mr. Wilke, should provide a life expectancy of 15 to 20 years. The conceptual estimated cost to replace the roof is as follows: ITEM

COST

Roof Replacement and Upper Stave (see attached Stanco Projects quote) Touch-up of the coating (to be confirmed) Engineering Sub-Total:

$117,800 $29,500

Total (not including HST):

$147,300

25% Contingency

b.

$75,800 $30,000 $12,000

New Bolted Steel Tank: The existing reservoir could be replaced with a new tank constructed beside the existing tank, or, if the existing tank can be removed from service for two or three months the existing tank and foundation could be demolished, and a new concrete foundation and bolted steel tank constructed at the same location. We do not have any details of the existing foundation; however, we anticipate that the existing foundation will not be able to meeting the current seismic standards, and therefore would have to be replaced.

P:\20102730\00_Koers_BCID_Res\Engineering\12.00_Inspections\03_Beachcomber_Res\Ltr_Koer_Beachcombreserv_Structsurvey_20130108_Dbh.Doc

January 8, 2013 Mr. Mitchell Brook Koers & Associates Engineering Ltd. -4We have not obtained a quote for the new bolted steel tank, however based on unit price rates from recent projects we estimate that a new tank and foundation will cost in the order of $250,000 to $350,000 plus HST. A new bolted glass-lined tank with cathodic protection should provide a life expectancy of 30 to 40 years. 5

RECOMMENDATIONS We recommend that the District close the roof to all personnel until the roof is replaced or the existing tank is replaced with a new tank.

If you have any questions, please call either George de Ridder or me. Yours truly, Prepared by:

January 8, 2013

Dale B. Harrison, P.Eng. Senior Structural Engineer

Reviewed by:

January 8, 2013

George de Ridder, M.S., C.Eng., FIStructE, P.Eng. Discipline Leader – Civil Structural

DBH/GDR/skn Attachments: Photo Sheets Stanco Report

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Beachcomber Reservoir Photos

Stain

Elevation of Beachcomber Tank

Stain from Exterior Weep

Connection to Vent completely corroded through

Roof and Roof Vent – Corrosion at Interface

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Beachcomber Reservoir Photos

Roof Stiffener Severely Corroded

Underside of Roof viewed from Roof Hatch- Corroded stiffeners

Overflow Roof Vent

Roof Hatch

Inlet Nozzle

Underside of Roof viewed from Inside Tank

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391 Horsesho oe Way, Richm mond, B.C., V7A V 4X6 123 Dire ect Line: 604--248-8068 12 Deccember 19, 201 Asssociated Engine eering 892 27 McLarey Ave enue Blacck Creek, BC V9JJ 1A3 Attn n: Mr. Dale Harrrison, P.Eng. Re: Roof replacem ment for Beachcomber Reserv voir Nanaimo, BC.

ms to be repla aced – Material supplied to site s Item 1.

One 21’ diameter d 3/16” plate deck ass sembly for 45 PSI P load

$ 14,007.00.

2.

d two channel style se elf support deck structure One 21’ diameter

$ 3,015.00.

3.

hroom free air vent v with insect screen One 20” diameter mush

$

446.00.

4.

One 20” diameter by 3’ high vent extension neck

$

795.00.

5.

One 24” square hillside roof hatch

$

727.00

6.

d 12GA A 1RV top stave e ring assembly One 21’ diameter

$ 10,045.00

7.

d chime e hardware ass sembly One 21’ diameter

$ Total materia als

387.00

$ 29,422.00

bour to change e out the roof Lab       

Construc ct new ring and roof beside the existing tank k Install scaffolding aroun nd existing tank k at 44’ height Attaching g lifting lugs to top of existing tank Lift top ring and roof to ground Lift new top t ring and roo of into place Bolt up new top ring Dismantle old roof and top ring

All a above mentioned work using a 4 man crew

$28,100.00

ditional rentals and costs Add    

Crane for all lifting nstalling scaffo olding JLG for in Trucking sts Ferry cos

Cossts for additiona al items Clarifications and d exceptions     

Draining of the reservoir prior to start of o work will be by others. All water to be provided d and pumped by b others. Reservoir may be off th he system for as much as 1 week w Disconne ecting any utilities required forr completing th he work is by otthers. Disconne ecting and reco onnecting of an ny piping is by others. o

Bea achcomber Reservoir R – Na anaimo – Quo ote # Q1014 Revvision 2012-12-19 1

$18,250.00

   

Filling of the reservoir is s to commence e as soon as th he new items arre in place. Chlorinattion is by others s. All pricing g is in Canadia an Dollars with applicable taxe es extra. Any items not specifically mentioned are a not included d.

If yo ou require clarification please e give me a calll Besst regards,

Joh hn Greig President – STT Stanco S Tanks

123 391 Horseshoe Way Rich hmond, BC, Ca anada V7A A 4X6 Pho one: 604-248-8 8068 Mob bile: 604-910-3 3113 Ema ail: jgreig@stts stanco.com Website: www.stts stanco.com

Bea achcomber Reservoir R – Na anaimo – Quo ote # Q1014 Revvision 2012-12-19 2

GENERA AL TERMS OF SALE 1. Scope. Thes se General "Equipment"), refe erred to in ("Se eller’s Docume entation"). conditioned on Pu urchaser’s doccuments.

Terrms of Sale govern the purch hase and sale o of the equipme ent and related d services, if any (collectively y, Seller’s sales con ntract, purchas se order, quota ation, proposall, or acknowled e case may be e dgment, as the Wh hether these te erms are includ ded in an offerr or an accepta ance by Sellerr, such offer orr acceptance is ass sent to these terms. t Seller rejects all add ditional or diffe erent terms in any of Purcha aser’s forms or o

2. Payment. Pu urchaser shall pay p Seller the full f purchase price p as set fortth in Seller’s Documentation. Where appliccable, payments sha all become due e upon notifica ation to the Pu urchaser by the e Seller that ccompletion of a stage of prod duction of the Equipment, as provvided Seller’s Documentation n has been achieved. Unless s Seller’s Docu umentation pro ovides otherwisse, freight, storrage, insurance e and d all taxes, duties or other gov vernmental cha arges relating to t the Equipme ent shall be pa aid by Purchase er. If Seller is required to pay anyy such charges s, Purchaser shall s immediate ely reimburse Seller. All pa ayments are d due within 30 days after recceipt of invoice e. Purrchaser shall be e charged the lower of 1.5% interest per month m or the ma aximum legal rrate on all amo ounts not receiived by the due date e and shall pay all of Seller’s s reasonable costs c (including g attorneys’ fe ees) of collectin ng amounts du ue but unpaid. All orders are e sub bject to credit approval. ns and specificcations), estimates, prices, n notes, electronic 3. Ownership off Materials. All devices, designs (including drawings, plan a and other do ocuments or in nformation prepared or disclo osed by Sellerr, and all relatted intellectual property rightts, shall remain data Selller’s property. Seller grants Purchaser a non-exclusive, non-transferab n ble license to u use any such m material solely for Purchaser’s use e of the Equipm ment. Purchase er shall not disc close any such material to thi rd parties witho out Seller’s prio or written consent. eller shall not implement any y changes in th he scope of wo ork described iin Seller’s Doccumentation un nless Purchase er 4. Changes. Se and d Seller agree in writing to th he details of th he change and d any resulting g price, schedu ule or other co ontractual modifications. This includes any chan nges necessita ated by a chan nge in applicab ble law occurrin ng after the efffective date off any contract including these e term ms. 5. Warranty. Su ubject to the fo ollowing sentence, Seller wa arrants to Purcchaser that the e Equipment sh hall materially conform to the desscription in Seller’s Documenttation and shall be new and free from defe cts in material and workmanship. The fore egoing warranty sha all not apply to any a Equipmentt that is specifie ed or otherwise e demanded byy Purchaser an nd is not manuffactured or selected by Sellerr, as tto which (i) Seller hereby assiigns to Purchas ser, to the exte ent assignable, any warranties made to Seller and (ii) Selle er shall have no othe er liability to Pu urchaser underr warranty, tortt or any other legal theory. Iff Purchaser givves Seller prom mpt written notiice of breach of o this warranty within 18 months from f Delivery or o one (1) yearr from accepta nce, whicheve er occurs first (tthe "Warranty Period"), Selle er sha all, at its sole option o and as Purchaser’s P sole remedy, adjust, repair or rreplace the item m or any affeccted part of the e Equipment, or o refu und the purchase price. Purch haser specifica ally agrees thatt it shall assum me all responsib bility and expense for remova al, reinstallation and d freight in con nnection with th he foregoing. If I Seller determ mines that anyy claimed breacch is not, in fa act, covered byy this warranty y, Purrchaser shall pa ay Seller its the en customary charges c for any repair or rep lacement made e by Seller. Seller’s warrantyy is conditioned d on P Purchaser’s (a) operating and d maintaining the Equipment in accordance with Seller’s in nstructions, (b)) not making an ny unauthorized d repa airs or alteratio ons, and (c) not n being in de efault of any payment obliga tion to Seller. Seller’s warrranty does not cover damage e caused by chemic cal action or ab brasive materia al, misuse or im mproper installlation (unless iinstalled by Se eller). The fore egoing warranty d conditions sh hall extend to replacement r pa arts furnished by the Seller h hereunder, exccept that the w warranty on succh replacemen nt and partts shall be limiited in scope and a expiration to the warranty y on the origin nal Equipment. The warrantie es set forth in tthis section are e Selller’s sole and exclusive e warra anties. Seller makes m no othe er warranties off any kind, exp press or implied, including wiithout limitation n, anyy warranty of merchantability or o fitness for pu urpose. 6. Indemnity. Seller S shall inde emnify, defend d and hold Purrchaser harmle ess from any cclaim, cause off action or liability incurred by Purrchaser as a re esult of third pa arty claims for personal injury y, death or dam mage to tangib ble property, to the extent cau used by Seller's neg gligence. Selle er shall have th he sole authoritty to direct the defense of an nd settle any in ndemnified claiim. Seller’s ind demnification is conditioned on Purchaser (a) promptly, p within the Warrantty Period, notiifying Seller o of any claim, a and (b) provid ding reasonable e coo operation in the e defense of any claim. 7. Force Majeurre. Neither Se eller nor Purcha aser shall have e any liability ffor any breach (except for brreach of payment obligations s) caused by extrem me weather or other o act of Go od, strike or oth her labor shorta age or disturba ance, fire, accident, war or ciivil disturbance e, dela ay of carriers, failure f of norma al sources of su upply, act of go overnment or a any other cause e beyond such party's reason nable control. knowledges tha at the informatio on contained in n this proposal is confidential,, and undertake es and agrees that it shall 8. Recipient ack ep this information in strict con nfidence, use such s confidentia al information ssolely for the p purpose of revie ewing and evalluating the kee prop posal, and not in furtherance of any other bu usiness, nor for its own beneffit, profit, advan ntage or gain, n nor disclose this confidential info ormation to any y third party with hout the prior written w consentt of STT Stanco o.

Bea achcomber Reservoir R – Na anaimo – Quo ote # Q1014 Revvision 2012-12-19 3