request for proposal for lawss...lawss request for proposal 18-01 page 4 not necessarily be...

REQUEST FOR PROPOSAL

18-01

Engineering Design for New Emergency

Generators at LAWSS

Friday, March 30, 2018

LAWSS Request for Proposal 18-01

INVITATION TO SUBMIT PROPOSAL For the supply of: Engineering Design for New Emergency Generators at LAWSS

The complete request for proposal (RFP) is attached. The Stantec Study Report on Replacement of Emergency Generators at LAWSS Pictures of the existing generators, diesel storage tanks, air louvers, concrete pads, containment area, switch gear and emissions stack Should you have any questions regarding the document or process, please contact: Clinton Harper Water System Engineering Technologist, LAWSS 1215 Fort Street Sarnia, ON N7V 1M1 E-mail : [email protected] Phone: 519-344-7429 ext. 269 Fax: 519-344-4337


INFORMATION FOR PROPONENTS

1. Closing Time Proposals will be accepted until Thursday, May 17, 2018 at 02:00pm EST

2. Submission Proposals can be emailed to [email protected] or one unbound copy can be delivered to the address below. Proposal sent by fax or arriving after the close time and date will not be accepted. Clinton Harper Water System Engineering Technologist, LAWSS 1215 Fort Street Sarnia, ON N7V 1M1 E-mail: [email protected] Phone : 519-344-7429 ext. 269

3. Selection Criteria The selection criteria that will be used by LAWSS to evaluate the proposals are shown in the table below. It is the intent that these criteria be used in evaluating the proposals received. However, LAWSS shall be the sole judge as to the evaluation of proposals received. No correspondence shall be entered into regarding the evaluation of any proposal or its comparison to other proposals received. LAWSS reserves the right to alter or adjust the evaluation criteria should it be deemed necessary.

Criteria Maximum Score

Company experience and capability 20

Understanding of project and clarity of response 10

Company resources 20

Experience with similar projects 10

Extra value services 10

Total cost of project 30

TOTAL POSSIBLE POINTS 100

4. Acceptance and Award of Contract

LAWSS reserves the right to accept any proposal, in whole or part, that they feel most fully meets the selection criteria. Therefore, the lowest cost proposal or any proposal may


not necessarily be accepted. LAWSS shall evaluate each proposal received by the closing time and make evaluations and recommendations on an individual basis for acceptance.

5. Schedule The following is the anticipated schedule for the process. LAWSS reserves the right to amend the schedule at any time should it be necessary.

1 Closing Date for Proposal Receipt Thursday May 17, 2018

2 Project Award and Commencement Friday June 1, 2018

3 Expected Project Completion Date Thursday July 12, 2018

6. Clarification

Should a proponent find discrepancies in or omissions from this RFP, or should there be any doubt as to their meaning, inquiry should be made to the LAWSS Water System Engineering Technologist at 519-344-7429 ext. 269. Should a correction, explanation, or interpretation be necessary or desirable a written addendum will be issued to all Proponents. Addenda issued during the period prior to the closing date of the RFP are considered part of this RFP. Any questions posed will be provided to all registered bidders along with any responses issued. Questions may be posed until Tuesday, May 8, 2018. Questions should be sent via e-mail to [email protected]

7. Reservations LAWSS reserve the right to accept any proposal in whole or in parts thereof judged most satisfactory, without liability on the part of LAWSS. LAWSS reserves the right to reject any or all proposals. The lowest priced Proponent will not necessarily be awarded a contract. Proposals which are incomplete, conditional, obscure, or which contain irregularities may be rejected at the sole discretion of LAWSS.

8. Qualifications of Proponents LAWSS requires that all proponents will be able to furnish satisfactory evidence that they have the ability, experience, capital and resources to enable them to execute and complete the contract successfully. Personnel shall not be changed during the term of the project without the permission from LAWSS in writing to do so. All consultants and contractors must complete and submit the LAWSS Contractor/Consultant Pre-Qualification Form prior to the completion of any work for LAWSS and award of this project.

9. Subcontracting Proponents must disclose any subcontractors that they propose to employ in the performance of this contract. Subcontractors are required to submit proof of WSIB and

mailto:[email protected]


insurance prior to working for LAWSS and prior to the award of this contract. Subcontractors may not be changed after award of the contract without written permission from LAWSS.

10. Sales Tax and Budget The proposal price shall include Harmonized Sales Tax (HST). LAWSS has budgets for the work defined in this document and reserves the right to change the scope of the RFP to bring the proposal price within the available budget limits. Should it be determined that changes in the scope of the RFP are of sufficient magnitude, then the owner shall cancel it. Then, at their discretion, LAWSS may commence a new process in order to complete the project within the available budget.

11. Payment The successful Proponent will be required to submit invoices on a monthly basis for progress completed to date. Payment of invoices, subject to any required or authorized deductions, will occur within 30 days of receipt of invoice.

12. Contract The successful Proponent will be required to enter into a formal written agreement with LAWSS that is suitable to both parties. In the event that the chosen supplier fails to act in good faith by refusing or failing to negotiate, or fails to fulfill the extent of the RFP, or to execute negotiated agreements within seven (7) business days of the award, the Proponent will be considered to have abandoned all rights and interest in the contract award and the award may be cancelled without penalty. The award may then be made to the next highest ranked Proponent or all proposals may be rejected at the sole discretion of LAWSS.

13. Supplier Status The successful Proponent shall be considered a supplier of services to LAWSS. At no time will the Proponent, or any individual acting for the proponent, be an employee of LAWSS.

14. Ownership of Documentation and Freedom of Information

The information submitted in response to this RFP will be treated in accordance with the relevant provision of the Municipal Freedom of Information and Protection of Privacy Act. The information collected will be used solely for the purposed stated in the RFP. The Proponent does, by the submission of a proposal, accept that the information contained in it will be treated in accordance with the process set out in the RFP. Proponents should clearly indicate in their submission which parts, if any, are exempt from disclosure under


the Municipal Freedom of Information and Protection of Privacy Act. Any submitted proposal shall immediately become the property of LAWSS.

15. Right to Amend Requirements Upon selection of a preferred Proponent, based on the information submitted in the proposal received, LAWSS reserves the right to work with the preferred Proponent or any Proponent to modify any of the proposal components outlined in the RFP that are agreeable to all parties through negotiation.

16. Costs to Prepare Proposals Proponents shall be responsible for the costs and expenditures necessary in order to prepare and submit a response to this RFP. LAWSS shall at no time be responsible for any preparation expense, regardless of how it was incurred and whether the request results in an award or not.


REQUIREMENTS FOR LAWSS

1. Project Background

Lambton Area Water Supplies System supplies potable water to about 100,000 people in Lambton County and is owned by six (6) municipalities in Lambton County. The current peak energy usage for LAWSS is at 2 MW while using about 60% of LAWSS’ peak drinking water treatment capacity. In 2016, the LAWSS water treatment plant used 9,661,666 kWh of energy. It is of note that LAWSS has two booster stations (East Lambton and West Lambton) and each of these have their own emergency generator. LAWSS currently has 4, 1 MW generators powered by diesel. These generators were installed in 1972 and are original to the water treatment plant. LAWSS has 2, 10,000 imperial gallon tanks along with 2 day tanks to feed the generators (each day tank has a capacity of 1110 L). These diesel storage tanks (inside and outside) were replaced in 2012 and should be included in the design of the new system. In 2012, LAWSS retained Stantec to complete a Standby Generator Study (Stantec Report). This study considers architectural limitations of the existing generator room as well as looked at the possibility of incorporating natural gas powered generators into the generator mix. LAWSS is seeking three (3) comprehensive bids for x4- 1 MW diesel generators, provided that they meet the entry and pad size limitations outlined in the Stantec Report. Limitations are to be confirmed by proponent. It is of note that LAWSS does not have access to natural gas and while there was some thought to bringing in a natural gas line for HVAC purposed this did not occur. Therefore, natural gas generators will not be considered moving forward. The existing concrete pads (6 pads with only 4 of the pads used), switch gear, air louvers and air emissions stack will also have to be considered as part of the project. It is expected that the switch gear will be replaced. It is hoped that the concrete pads and air louvers can be reused and repaired as required. It is also hoped that the existing air emissions stack can be reused. Plywood boards have been used to create a containment area around the diesel generators to meet regulatory requirements and this should be replaced by proper concrete walls to provide the necessary containment. It is also expected that the replacement of the generators and switch gear would be staged so that LAWSS has at least 2 MW of generator power at any one time.


2. Project Requirements

LAWSS is looking for the following:

- Identification of three (3) bidders for generator replacement that can meet pad and entry limitations. Proponent to confirm pad and entry limitations.

- Engineering design including electrical, SCADA, and mechanical for generator and switch gear.

- Engineering design for civil work including pad construction and completion of containment area.

- Identify and recommended one repair option and one replacement option for the existing louver system.

- Complete all regulatory requirements, related to air, licence and permit updates. - Prepare tender documents including all requirements and comprehensive 5-year

maintenance contract. - Provide price for project supervision and inspection. - Include complete disposal of existing equipment off site. - provision to maintain uninterrupted power of at least 2MW throughout replacement

project. - A mandatory bidders meeting will be held at the WTP on Wednesday April 18,

2018 at 10:00 am

3. Proposal Submission LAWSS expects that the following information will be included in the submission:

• Resumes – for all key staff to be working on the job

• Cost – proposal should provide cost per tasks (include cost for initial 1-day meeting to gather all technical materials related to the project as well as a tour of WTP)

• Schedule – provide proposed schedule to complete the work with allocated staff

• Experience of proponent with similar projects

Lambton Area Water Supply System Water Treatment Plant

Standby Generator Replacement Study

Stantec Project 165500709

Prepared by: Goran Prgesa, EIT

Reviewed by: Srdjan (Sergio) Stevandic, M.E.Sc., P.Eng.

1 Sep 11, 2012 As per LAWSS comments

Draft Aug 8, 2012 Issued for Review

Rev Date Description

LAMBTON AREA WATER SUPPLY SYSTEM WATER TREATMENT PLANT

STANDBY GENERATOR REPLACEMENT STUDY Table of Contents

September 11, 2012

i

TABLE OF CONTENTS

1.0 OVERVIEW ..................................................................................................................................3

BACKGROUND ....................................................................................................................................... 3 1.1

SCOPE .................................................................................................................................................... 3 1.2

2.0 EVALUATION ..............................................................................................................................5

GENERATOR PHYSICAL SIZE LIMITATIONS ............................................................................................ 5 2.1

GENERATOR POWER REQUIREMENTS .................................................................................................. 5 2.2

GENERATOR MANUFACTURERS ............................................................................................................ 6 2.3

GENERATOR SIZING ANALYSIS .............................................................................................................. 6 2.4

OPTIONS ................................................................................................................................................ 7 2.5

3.0 BUDGET ......................................................................................................................................9

ELECTRICAL EQUIPMENT ....................................................................................................................... 9 3.1

CIVIL MODIFICATIONS ........................................................................................................................... 9 3.2

BUDGET SUMMARY............................................................................................................................. 10 3.3

4.0 RECOMMENDATIONS ............................................................................................................... 11


STANDBY GENERATOR REPLACEMENT STUDY Overview

September 11, 2012

3

1.0 OVERVIEW

Background 1.1

Stantec Consulting Ltd. (Stantec) was requested by the Lambton Area Water Supply System (LAWSS) to complete a detailed engineering study to assess possible combination types and sizes of diesel and natural gas fueled emergency power generators, for the replacement of the existing backup diesel generator set in the Emergency Power Room (EPR) at the LAWSS Water Treatment Plant (WTP). This document details the study done including evaluations in generator sets physical sizing, power capabilities, and cost. The study also incorporates recommendations on equipment selection to replace the existing standby generators at LAWSS WTP.

LAWSS WTP located in Sarnia, presently has an emergency standby power supply consisting of four (4) 1MW diesel generators that supplies the plant emergency power. This emergency power is required to run the existing plant base load including High Lift Pumps (HLP) and Low Lift Pump (LLP). The existing standby generator units including synchronizing and protection switchgear is original and approaching end of life.

Scope 1.2

The scope of this study is to find suitable like replacements to the existing four 1MW standby diesel generators to run the existing plant load. In finding suitable like replacements for the existing backup generator set, considerations will be given to existing space constraints, power demands, and LAWSS needs and requirements.

Our study will encompass the following:

Review of available architectural features to determine space and entryway limitations for equipment transfer along the access route and into the EPR, including space considerations inside the EPR;

Confirmation of the above with a site inspection and measurements of critical spaces, pads, and doorways;

Determine critical power requirements for the standby power supply, including that for system start-up and continued operation modes;

Search online catalogues and contact power equipment suppliers (Cummins, Koehler, MTU Onsite) directly for generator sets power capacities, diesel and natural gas fuel requirements, and related equipment that will fit the space constraints to deliver the critical power requirements to the WTP;

Assemble the generator and associated equipment sets to meet the above criteria;


STANDBY GENERATOR REPLACEMENT STUDY Overview

September 11, 2012

4

Confirm synchronization controllers and switchgear alternatives;

Confirm starting requirements and step loading of each proposed alternative;

Confirm breaker and utilization voltage alternatives and installation location options and alternates;

Develop capital, operational, and construction budget estimates;


STANDBY GENERATOR REPLACEMENT STUDY Evaluation

September 11, 2012

5

2.0 EVALUATION

The following section of this document describes the constraints and criteria used for the evaluation part of the report.

Generator Physical Size Limitations 2.1

Size limitations to new equipment selection will take into consideration the physical generator sizes so as to fit through existing doorways, and to be seated on existing concrete pads.

Based on existing architectural drawings and on-site measurements, it was found that maximum generator physical sizes are to be limited in order to be able to transfer new equipment to the EPR and have proper seating on the existing concrete pad within the EPR. These constraints were found to be:

Entryway limitation 2.1m (H) x 1.8m (W) (with door frame) 2.2m (H) x 1.9m (W) (with removal of door frame)

Pad size limitation 4.1m (L) x 1.4m (W)

Generator Power Requirements 2.2

In order for the standby generators to be able to adequately supply the WTP, overall load demands need to be considered. The overall power requirements for the standby generators are dependent upon the plant base power requirements, and the inclusion of the starting and running of pump at the WTP.

Plant base load is supplied with two (2) 1.5MVA distribution transformers, operating at 600Y/347V secondary, and are typically loaded 33-50% (1.00 to 1.50 MVA). For the purpose of the study, the base load is estimated at 1.2 MW with 0.9PF.

Ideal operational start-ups would involve sequential starting of motors (largest first) to minimize the negative starting effect of voltage sag; however this may be dictated by operational requirements.

Please note that 1400 HP high lift pumps (HLP1, HLP4, and HLP8) are not used in operation due to the size vs demand requirements, and thus were not included in this study as per discussion with OCWA and LAWSS operational staff.

Not all of the remaining pumps would be operating at the same time. Pump operation will be dependent on WTP process requirements and therefore this study will assume operations running based on the table below using combination of the larger pumps at the high lift (HLP2 and/or HLP6) and low lift (LLP2 and/or LLP5).



September 11, 2012

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The following starting sequences were used in the evaluation of step loading as per discussion with OCWA and LAWSS operational staff:

Demand Load Sequence Total (Running) Demand

Winter (Low) 1200kW/0.9 PF base load 2.13 MW

Start and run 450HP pump (LLP2 or LLP5)

Start and run 800HP pump (HLP2 or HLP6)

Summer (High) 1200kW/0.9 PF base load 2.95 MW

Start and run 450HP pump (LLP2 or LLP5)


Start and run 300HP pump (LLP4)


Generator Manufacturers 2.3

Several generator manufacturers were analyzed, Cummins, Kohler and MTU Onsite, having only diesel, or natural gas and diesel models. The following table summarizes the manufacturers and models analyzed; each model fits all power and space requirements as outline in this report. Each model is equipped with remote water-cooled heat exchangers.

Size Type Cummins Kohler MTU Onsite

1.0 MW Diesel DQFAD REOZMD

1.5 MW Diesel DQGAB REOZMD

725 kW Natural Gas (rich-burning) GLFC -

Please note that Caterpillar (CAT) generators have not been used in the analysis due to the recent local labour events, notwithstanding, CAT may have both diesel and natural gas engines of the power and physical characteristics to fit the requirements which can be analyzed at the details design stage if LAWSS wishes to include them in the acceptable manufacturer list.

Generator Sizing Analysis 2.4

Power simulation calculations were used to determine that voltage drops and generator size were within acceptable levels during minimal power load (base load) to run the WTP, as well as during starting and running of various HLPs and LLPs.

All pump motors were assumed to have sub-transient and transient reactance x”=x’=17%, starting across the line with starting PF=0.25, and running PF=0.9.

Based on running and starting (block loading) power simulations, the following generators satisfy starting and running requirements for Winter (Low) and Summer (High) Demand:



September 11, 2012

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Demand Generator Configuration

Winter (Low) 3 x 1.0MW Diesel Generators

2 x 1.5MW Diesel Generators

5 x 725kW Natural Gas Generators

Summer (High) 4 x 1.0MW Diesel Generators

3 x 1.5MW Diesel Generators

6 x 725kW Natural Gas Generators

Please note that natural gas units are designed for prime power applications, with limited block loading capabilities, thus, larger units are required to satisfy starting requirements then diesel units.

Options 2.5

Based on running power simulations and taking into account the existing constraints at the LAWSS WTP, the following five options were concluded as viable replacement alternatives to the existing standby generators; the layout is shown in Figure 1.

Option Generator Configuration Starting Demand Running Demand

1 4 x 1.0MW Diesel Generators High High

2 3 x 1.5MW Diesel Generators High High

3 6 x 725kW Natural Gas Generators High High

41 3 x 725kW Natural Gas Generators - Low

3 x 1.5MW Diesel Generators High High

Combined Operation - High

52 3 x 725kW Natural Gas Generators - Low

2 x 1.5MW Diesel Generators Low High

Combined Operation High High

Options 1 through 3 have sufficient cumulative size to satisfy high summer demand load starting demand sequence.

Options 4 and 5 are hybrid combinations, where diesel generators would be used to start the plant, and run for high demand power outages, or when natural gas supply is disrupted; natural gas units would provide backup power for prolonged continues operation under low demand (winter demand or for most of the plan power requirements). Typically, after successful startup, natural gas units would be brought on line and diesel units switched off during low demand; for high demand both diesel and natural gas would be running together.

1 Diesel generators are used to start high demand load sequence 2 Both natural gas and diesel required to start high demand load sequence



September 11, 2012

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Option 5 is derivative of Options 4. In this option, decreased installed diesel backup power provides for most of the power demand outages startup sequences; natural gas units would augment starting requirements under high demand load sequence. Running load sequence remains as in Options 4.

Figure 1: EPR Layout with Various Options


STANDBY GENERATOR REPLACEMENT STUDY Budget

September 11, 2012

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3.0 BUDGET

Costs associated with each proposed 5 options will vary in the type of generator used and fuel associated, as well as the necessary civil work. The following section provides a brief overview of what consideration in the budget pricing and the total estimated budget for the proposed options.

Electrical Equipment 3.1

All options include the cost of cables required for the interconnection of electrical equipment.

Estimated generator budget price include generator, alternator, generator controller, water-cooled heat exchangers, expansion tanks, battery, battery charger, exhaust flex connector, exhaust silencer, freight, and site commissioning.

Estimated switchgear budget price includes equipment required for the operation of the generators including synchronizing controller, power circuit breakers, protective relays, current transformers (CT) and potential transformers (PT).

Estimated installation budget price include materials and labour required for the installation of electrical equipment used, including power and control cables.

Civil Modifications 3.2

Each option requires some type of civil modifications. In the cases where lager power generators were used constraints could not be kept. These modifications are outlined in the following section.

Existing concrete pads within the EPR will need to be modified (expanded) for the natural gas and 1.5 MW diesel generator to be seated sufficiently. Estimated budget price for options 2 through 5 include material and labour required for the expansion of the existing concrete pads to allow for proper seating of the newly installed generator sets.

Natural Gas Piping: Natural gas generators require addition of a natural gas line to fuel it. Estimated budget price for options 3 through 5 include installation and materials to bring a suitable Natural Gas supply line to the EPR to fuel the Natural Gas generator at a minimum of 7 psi inside the EPR. The cost of bringing natural gas supply outside the plant is not included in the budget.

Estimated HVAC upgrades budget price for options 3 through 5 include modifications to existing HVAC to allow for increased ventilation demand of the new natural gas generator equipment.


STANDBY GENERATOR REPLACEMENT STUDY Budget

September 11, 2012

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Budget Summary 3.3

After reviewing generator specifications and communications with manufacturers the following estimated budgets are listed below for each option, all amounts in $1,000, TNIP.

Option3 GEN4 SWG5 INST6 CIVIL PIPING7 HVAC8 TOTAL

1 4 x 1MW[D] $1,400 $300 $370 $0 $0 $0 $2,070

2 3 x 1.5MW[D] $1,275 $275 $320 $45 $0 $0 $1,915

3 6 x 725kW[NG] $3,300 $350 $450 $90 $150 $50 $4,390

4 3 x 725kW[NG] 3 x 1.5MW[D]

$2,925 $350 $560 $90 $150 $50 $4,125

5 3 x 725kW[NG] 2 x 1.5MW[D]

$2,500 $325 $480 $75 $150 $50 $3,580

The following figure illustrates total stand-by power in MW for all options compared to total cost in ($1,000,000).

3 D – Diesel, NG – Natural Gas 4 Generator Supply 5 Synchronizing and protection switchgear supply 6 Generator and switchgear installation, commissioning and startup 7 Natural Gas Piping 8 HVAC modifications for NG units

0

1

2

3

4

5

6

7

8

1 2 3 4 5

Total Standby Power (MW)

Cost($Million)


STANDBY GENERATOR REPLACEMENT STUDY Recommendations

September 11, 2012

11

4.0 RECOMMENDATIONS

Taking into consideration existing physical size constraints, starting and running power requirements, and costs associated with each of the five options considered, Option 2, using 3 x 1.5MW diesel generator units, provides minimal budget cost for like replacement of existing standby generators at LAWSS WTP, with some additional capacity for future load growth (approximately 0.5MW), while satisfying requirements for present summer high power demand (starting and running). This option does require some civil modification (generator pad modifications), however, minimal.

Option 3, using 6 x 725kW natural gas units, satisfies running demand load profile, however, has limited block starting capabilities, as it is designed for prime power application. It also requires highest capital expenditure. Finally, having only natural gas generators may not necessarily provide stand-by power needed, such is in the case of the natural gas disruption.

Option 5 and 6, using a combination of 3 x 725kW natural gas and 3 or 2 x 1.5MW diesel generator units can provide the benefits of secured diesel generators for stand-by power requirements coupled with high starting demand capabilities, as well as cost benefit if operating natural gas units. Either option has significant margin for future load growth. However, Option 5, the recommended hybrid option, provides for most cost effective solution having natural gas generator mix.

In summary, Option 2 using 3 x 1.5MW diesel generator units, Option 5 using mix of 3 x 725kW natural gas and 2 x 1.5MW diesel generator units, are found to be two recommended options for “diesel only” and “diesel / natural gas mix” options; “natural gas only option cannot be recommended as it does not provide “true” stand-by capabilities, such is in the case of the natural gas disruption.

A B C D E F G H I J K L M N O P Q R

1

2

3

4

5

6

7

8

9

10

11

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13

14

27.6 KV OUTDOOR SWITCHGEAR

OUTDOORINDOOR

27.6 kV, 3ØINCOMING SERVICE

TR-1A TR-2B

BAY #4 BAY #3 BAY #2 BAY #1

4.16 KV SWITCHGEAR

4.16 KV MOTOR CONTROLLERSGROUP 'A'

4.16 KV MOTOR CONTROLLERSGROUP 'B'

EMERGENCY POWER SUPPLYCONTROL PANEL

WWP HLP-3 HLP-2 HLP-8 LLP-2 LLP-4 HLP-1 HLP-4 HLP-6 LLP-3 LLP-5GEN 5 GEN 4 GEN 3 GEN 2

GND. RESISTOR

TR-B

METERINGCUSTOMER

IN SUBSTATION

VT-F2/3

CT-F1/3

GND. RESISTOR

600A BUS

2000A BUS 1200A BUS 2000A BUS

1200A BUS 1200A BUS1200A BUS

SA

SA


[OPTION 1]

GEN 1 GEN 2 GEN 3 GEN 4 GEN 1 GEN 2 GEN 3 GEN 1 GEN 2 GEN 3 GEN 4 GEN 5 GEN 6 GEN 1 GEN 2 GEN 3 GEN 4 GEN 5


[OPTION 2]


[OPTION 4]


[OPTION 5]

TR-A

GEN 1 GEN 2 GEN 3 GEN 4 GEN 5 GEN 6


[OPTION 3]

LICENCE AGREEMENT THIS LICENCE AGREEMENT made on this twenty seventh day of February 2018 BETWEEN

LAMBTON AREA WATER SUPPLY SYSTEM (hereinafter called "LAWSS")

and

OF THE FIRST PART HER MAJESTY THE QUEEN in right of Canada,

represented herein by the Minister of Fisheries and Oceans Canada (hereafter called "DFO") THIS AGREEMENT states that both parties hereby covenant and agree, as follows:

1. DEFINITIONS: In this Licence Agreement "DFO" means the Minister of Fisheries and Oceans Canada and includes any person authorized by the Minister of Fisheries and Oceans Canada to act on his behalf. "Building" means the Lambton Area Water Supply System Building also referred to as "LAWSS" and having a municipal address of 1215 Fort Street, in the City of Sarnia, in the County of Lambton, in the Province of Ontario. "Licensed Site" means approximately 37.20 square metres on the rooftop of the Building. "System" means a Marine Traffic Radar System.

2. PERMISSION PREVIOUSLY GRANTED:

Ontario Clean Water Agency (OCWA) previously granted permission to DFO to erect the System on approximately 37.20 square metres on the rooftop of the Building; to install or cause to be installed such electrical power, monitoring and related equipment as may be necessary for the operation of the System; and to enter upon the Licensed Site for the purposes of designing, installing, operating, testing and maintaining the System. LAWSS is the successor of OCWA with respect to this facility.

3. TERM OF LICENCE: This Agreement is for a term of five (5) years, commencing on the first (1) day of April, 2018 and ending on the thirty first (31) day of March, 2023. The Lessor may grant the Lessee, if the latter is not in breach of the terms of this agreement, the faculty of extending this Lease for an additional period of five (5) years. In order to make use of this extension option, the Lessee must submit written notice of its intention to extend this Lease to the Lessor at least ninety (90) days before the expiry of the term provided.

The Lessee acknowledges that this Lease does not entail any automatic renewal or guarantee of renewal or long-term occupancy, even if the Lessee has not breached this agreement.

4. FEE PAYABLE: For the permission hereby granted DFO will pay to LAWSS a fee in the sum of SEVEN THOUSAND ($7,000.00) Dollars per annum, payable in advance, on the 1st day of April starting in 2018 and each subsequent year for the life of this agreement. Further, if the assigned amount of SEVEN THOUSAND ($7,000.00) Dollars is not paid in a timely fashion, the fee will be increased to NINE THOUSAND ($9,000.00) Dollars per annum.

LAWSS shall issue an invoice to:

Canadian Coast Guard Central and Arctic Region Marine Communication Traffic Services Attention: Administrative Assistant

105 Christina Street South Sarnia, Ontario N7T 7W1 Please quote: Project EWT 8055 - 517

5. LICENCE NOT TRANSFERABLE:

No transfer of this Agreement or of any rights hereunder shall be made by DFO.

6. INSTALLATION AND MAINTENANCE:

The work connected with the erection, maintenance and operation of the System shall be

carried on, under and in accordance with the control and direction of LAWSS and shall be

done in all respects to its satisfaction and at the sole cost and expense of DFO.

7. REPAIRS:

If any damage is occasioned to the property of LAWSS or any part thereof, or works

connected therewith, by reason of, or on account of, the permission hereby given, DFO

shall immediately upon notice thereof from LAWSS given, either verbally or in writing,

repair, rebuild, replace or restore the damaged property to the entire satisfaction of

LAWSS; or LAWSS, may, at its option, repair, rebuild, replace or restore such damaged

property in which case, DFO shall, upon demand, forthwith repay and reimburse LAWSS for

all costs and expenses connected therewith or incidental thereto.

8. CONSTRUCTIONS:

All structures, erections, materials, supplies, articles, effects and things, at any time

constructed, erected, laid, brought, placed or made upon the lands of LAWSS shall be

entirely at the risk of DFO in respect of loss, damage, injury, destruction or accident from

whatsoever cause arising, unless such damage or injury is due to the negligence of any

officer or servant of LAWSS while acting within the scope of his or her duties or

employment.

9. ADDITIONAL EQUIPMENT:

No additional equipment, power-consuming or otherwise, is to be placed in the Building

without prior written approval from LAWSS.

10. COMPLIANCE WITH REGULATIONS:

DFO shall in all respects abide by and comply with all lawful rules, regulations and by-laws of

municipalities and other governing bodies, in any manner affecting this Licence.

11. INDEMNITY:

DFO shall indemnify and save harmless LAWSS from and against all claims and demands,

loss, costs, expenses, damages and injury in any manner based upon, arising out of or in

connection with the existence of this Licence Agreement or anything done or maintained

hereunder, unless such damage or injury is due to the negligence of any officer or servant

of LAWSS while acting within the scope of his or her duties or employment.

12. TERMINATION:

This Licence Agreement may be terminated at any time by either party hereto upon sixty (60) days' notice in writing, and such notice shall be delivered:

(a) in the case of notice by LAWSS to DFO, by registered mail addressed to: Fisheries and Oceans Canada

Attention Real Property Leasing Officer 520 Exmouth Street Sarnia, Ontario N7T 8B1

(b) in the case of notice by DFO to LAWSS, by registered mail addressed to:

Lambton Area Water Supply System 1215 Fort Street Sarnia, Ontario N7V 1M1

and thereupon after the expiration of such period of notification, this Licence Agreement shall be determined and ended, and DFO shall, if required by LAWSS, forthwith remove from the premises of LAWSS, unless otherwise specifically provided, the System and all supplies, articles, equipment, materials, effects and things at any time brought or placed thereon or therein by DFO, and shall also to the satisfaction of LAWSS repair all and every damage and injury occasioned to the premises by reason of such removal or in the performance thereof, but DFO shall not, by reason of any action taken of thing performed or required under this clause by entitled to any compensation whatsoever.

13. DIFFERENCES:

All matters of difference arising between LAWSS and DFO in any manner connected with or

arising out of this Licence Agreement whether as to interpretation or otherwise shall be

determined by LAWSS.

14. HEADINGS:

Any note appearing as a heading in this Agreement has been so inserted for convenience

and reference by and of itself cannot define, limit or expand the scope of meaning of the

present Agreement or any of its provisions.

15. ENTIRE AGREEMENT:

This Agreement shall be deemed to constitute the entire Agreement between LAWSS and

DFO hereto with respect to the subject matter hereof and shall supersede all previous

negotiations, representations and documents in relation hereto made by any party to this

Agreement.

Signature page to follow

IN WITNESS WHEREOF, THE PARTIES HAVE SIGNED AND APPROVED THE PRESENT LEASE, IN TWO COUNTERPARTS, ON THE DATES AND AT THE PLACES INDICATED.

The representative of HER MAJESTY THE QUEEN IN RIGHT OF CANADA signing in Sarnia, Province of Ontario.

IN THE PRESENCE OF: HER MAJESTY THE QUEEN IN RIGHT OF CANADA

(Lessee)

_______________________ Name: Nathalie Drew Witness

_______________________ Name: Eric Sands Regional Director Real Property, Safety and Security Duly authorized

_______________________ Date The representative of Lambton Area Water Supply signing in Sarnia, Province of Ontario.

IN THE PRESENCE OF: Lambton Area Water Supply

(Lessor) _______________________ Name: Witness

_______________________ Name: Mayor Beverly Hand Chair-LAWSS Joint Board of Management Duly authorized

_______________________ Date

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