HomeMy WebLinkAboutCST 19-11cial o~
PICKERIN
Report To
Executive Committee
Report Number: CST 19-11 64
Date: May 9, 2011
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Tender No. T-3-2011
- Supply and Delivery of Computer and Network Equipment
Recommendations:
That Report CST 19-11 regarding the supply and delivery of computer and
network equipment as provided for in the approved 2011 Capital and Current
Budgets be received;
2. That Tender No. T-3-2011 submitted by Venture Computers for Server Option
Model 2 ($8,830), Server Memory ($2,456) and VMware Enterprise Server
Software ($5,936) for a total cost of $17,222.00 plus HST be approved;
3. That Tender No. T-3-2011 submitted by Ederick Associates Inc. for PC (Optional
Model 2) ($41,841.80) and SAN Tape Backup ($16,065.89) for a total cost of
$57,907.69 plus HST be approved;
4. That Tender No. T-3-2011 submitted by Acrodex Inc for Laptop and Docking
Stations for a total cost of $18,661.56 (includes an additional Notebook and
Docking Station and Toughbook and Port Replicator) plus HST be approved;
5. That Tender No. T-3-2011 submitted by Conpute for PC Workstations
($5,443.80), ViewSonic LED ($3,769.66) and Cisco Switches ($92,490.38
includes an additional switch) at a total cost of $101,703.84 plus HST be
approved;
6. That the total gross project cost of $220,909.45 (HST included) and the total net
project cost of $198,935.81 (after HST rebate) be approved;
7. That Council authorizes the Director, Corporate Services & Treasurer to finance
the project from the approved Information Technology 2011 Capital and Current
Budgets from property taxes; and,
8. That the appropriate officials of the City of Pickering be authorized to take
necessary action to give effect thereto.
Report CST 19-11
May 9, 2011
Subject: Tender No. T-3- 2011
65 Supply and Delivery of Computer and Network Equipment Page 2
Executive Summary: This tender includes the majority of the 2011 Information
Technology Capital Budget items as approved by Council. The majority of the
equipment is to be considered replacements for existing equipment at the end of their
life cycles. Tender No. T-3-2011 was issued on Wednesday, March 2, 2011 and closed
on Wednesday, March 16, 2011 with nine (9) bidders responding. The total gross
project cost is estimated to be $220,909.45 (including HST) and a total net project cost
of $198,935.81 (net of HST rebate). _ .
The tender allows for acceptance in whole or in part, by items, or in groups of items to
one or more bidders. Therefore, in order to maximize the best pricing, the lowest bid
per item is recommended -for acceptance. This approach has resulted in additional
savings to the City..
The City's Purchasing Policy requires staff to report to Council on the results of a public
tender. In accordance with Purchasing Policy Item 04.07 (revised 2007) a public tender
exceeding $108,000 is subject to Council approval.
The tender includes funds to replace 50 PCs, which translates into a PC replacement
cycle of 5 years. Based on a recent survey of surrounding municipalities this cycle is on
the outer edge of the typical replacement cycle. However, to ensure the City is
maximizing its resources, a committee has been formed to undertake a review of the
PC replacement cycle to determine if an adjustment is required. The review is expected
to be completed by the fall in time for the 2012 budget. In the meantime, the tendered
replacements are required to ensure the ongoing operation of City business.
Report CST 19-11 May 9, 2011
Subject: Tender No. T-3- 2011
Supply and Delivery of Computer and Network Equipment Page 3
66
Financial Implications:
1. TENDER AMOUNT
A summary of the computer and network equipment to be supplied by the four bidders is as
follows:
T-3-2011 Supply and Delivery of Computer and Network Equipment
Ederick
Venture Associates
Description Computers Inc. Acrodex Inc. Conpute
Server Option Model 2
Server Memory
VMware Enterprise Server
Software
PC (Optional Model 2)
Laptop and Docking
Stations
PC Workstation
ViewSonic LED
Cisco Switches (1+4)
including an additional
switch
SAN Tape Backup
Total
HST (13%)
Gross Costs including
HST
Less HST Rebate (11.24%)
Net Cost to City
8,830.00
2,456.00
5,936.00
41, 841.80
18,661.56
5,443.80
3,769.66
Total
8,830.00
2,456.00
5,936.00
41,841.80
18,661.56
5,443.80
3,769.66
92,490.38
92,490.38
16,065.89
16, 065.89
17,222.00
57,907.69
18,661.56
101,703.84
195,495.09
2,238.86
7,528.00
2,426.00
13,221.50
25,414.36
19,460.86
65,435.69
21,087.56
114,925.34
220,909.45
(1,935.75)
(6,508.82)
(2,097.56)
11,431.51
21, 973.64
17.525.11
58.926.87
18.990.00
103.493.83
198.935.81
Report CST 19-11 May 9, 2011
Subject: Tender No. T-3- 2011
67 Supply and Delivery of Computer and Network Equipment Page 4
9 APPROVFn SOURCE OF FUNDS
Information Technology-Capital and Current Budgets
Source of Funds -
Property Taxes
Project Code
Description of Projects
Budget
Required
Capital
5206.1103.6175
Server & VMware Server Software
$20,000
$15,025.88
5206.1101.6175
PC
43,250
42,578.22
5206.1107.6190
PC AutoCAD (1)
32,600
5,539.61
5206.1106.6177
Cisco Switches (2)
80,000
94,118.21
5206.1105.6175
SAN Tape Backup
24,000
16,348.65
Current
2196.5975.0000 Server Memory (3) $15,500 $2,499.23
2196.5975/5978 Laptop and Docking Stations 19,800 18,990.00
2196.5975.0000 ViewSonic LED 5,500 3,836.01
Total 124Q.650
Note:
(1) The PC AutoCAD system used by the City has a hardware and software component. The
tender price referenced above is for hardware only and the software purchase will be made later
this year for an estimated additional cost of $24,422.
(2) The City uses eight switches to maintain its network infrastructure. There are to be two
Cisco switches for every electrical closet. As a result of unanticipated favourable pricing and
overall savings, the number of switches was increased from three to four with the balance to be
included in the 2012 budget.
(3) There may still be additional upgrades required to the server memory after the project is
complete. The estimated cost of these upgrades are not expected to exceed $9,900.
Report CST 19-11 May 9, 2011
Subject: Tender No. T-3- 2011 68
Supply and Delivery of Computer and Network Equipment Page 5
3_ ESTIMATED PROJECT COSTING SUMMARY
T-3-2011
HST (13%)
Total Gross Project Cost
HST Rebate (11.24%)
Total Net Project Cost
$195,495.09
25,414.36
220,909.45
(21,973.64)
$198,935.81
Net project cost under (over) approved funds, after inclusion of additional purchases
identified in notes, is estimated to be $7,393.
Sustainability Implications: This report does not contain any sustainability
implications.
Background: As part of the normal computer equipment maintenance cycle,
Tender No. T-3-2011 was issued on Wednesday, March 2, 2011, and closed on
Wednesday, March 16, 2011, with nine (9) bidders responding. The tender was for the
supply and delivery of computer and network equipment. Four suppliers were chosen
to provide the replacement equipment, based on lowest bid per item. They are Venture
Computers of Canada Inc., Ederick Associates Inc., Acrodex Inc. and Conpute.
Fifty-five (55) PCs are being purchased, with five (5) of these being directed to new
hires. The fifty PCs constitutes a replacement of approximately 20% of the installed PC
base. In addition, due to lower than expected costs and savings identified, the original
estimate for 3 Cisco switches was increased to 4 to accommodate replacement for 2
electrical closets. Additionally, it is projected that $7,393 will remain unspent once the
replacement exercise has been completed.
Installation of the equipment will be performed by Information Technology staff.
Upon careful examination of all tenders and relevant documents received, the
Corporate Services Department recommends the acceptance of the low bids as
submitted by Venture Computers of Canada Inc., Ederick Associates Inc., Acrodex Inc.
and Conpute for Tender No. T-3 -2011. The total gross cost in the amount of
$220,909.45 (HST included) and that the total net project cost of $198,935.81 be
approved.
This report has been prepared in conjunction with the Manager, Supply & Services who
concurs with the foregoing.
Report CST 19-11 May 9, 2011
Subject: Tender No. T-3- 2011
69 Supply and Delivery of Computer and Network Equipment Page 6
Attachments:
1. Supply & Services Summary memo dated March 22, 2011
J2
=:e 114
4nCa Kong, CGA
Senior Financial Analyst -
Capital & Debt Management
Copy: Chief Administrative Officer
Prepared By:
Jon S rms
Manger, Information Technology
Approved / Endorsed By:
Gillis A. Pat son
Director, Co orate Services & Treasurer
Vera A. Felgeri~&her
CSCMP, CPPO, CPPB, C.P.M., CMM III
Manager, Supply & Services
Recommended for the consideration
of Pickering City/jouncil A
Tony Prevedel, P.Eng.
Chief Administrative Officer
W/ 26, 2.o r/
PicKERING
1811 BICENTENNIAL 2011
AT YACrif j iti i4-J- i U i\'CEPORT 7`.~q,.JJ
?O
To: Gil Paterson
Director, Corporate Services & Treasurer
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Manager, Information Technology
Subject: Tender No. T-3-2011
Tender for Supply and Delivery of Computers & Network Equipment
Closing: Wednesday, March 16, 2011
- File: F-5400-001
Memo
March 22, 2011
Tenders have been received for the above project. Sixteen (16) bidders were invited to
participate and an advertisement was posted on the City's website. Nine (9) bidders
responded and submitted a tender for this project. One (1) addendum was issued on this
project. ,
A copy of the Record of Tenders Opened and Checked used at the public.tender opening is
attached. Tenders shall be irrevocable for 60 days after the official closing date and time.
Copies of the tenders are attached for your review along with the summary of costs. Pricing
shown on the summary is exclusive of taxes.
Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit
prices and extensions; unit prices shall govern and extensions will be corrected accordingly,
which has been done.
The following clauses in the tendering instructions were utilized in reviewing the bids.
Reference: Information-to Bidders Item No. 5:
The bidder may bid on any or all sections - Section 1, Section 2, Section 3, Section 4, and/or
Section 5 as stated on Specification pages 14 to 18 - but the Section(s) must be bid
completely - or the bid will be rejected.
March 22, 2011
Tender for Supply and Delivery of Computers &
Page 1
Network Equipment
71
Reference: Information to Bidders Item No. 22:
Substitutions within the same brand based on product changes are allowed subject to City's
approval and all requests for substitutions must be explained in writing and submitted by
facsimile to 905.420.5313 to the attention of Supply & Service before 12:00 noon local time
Thursday, March 10, 2011. The City's decision to allow or not allow the substitution(s) will be
stated in an ADDENDUM within approximately 2 days. The City's decision will be final.
There were no substitutions requested by bidders by the deadline and, therefore, no
substitutions allowed by the City in Addendum No. 1.
BIDDER
Reference
GenX Solutions
Automatic rejection - Addenda not acknowledged. Reference:
Purchasing By-law No. 5900-01, Procedure No. PUR 010-001,
10.04, Items 7-(12), Information to Bidders - Item 3(b), 16, 17,
18, 26, 27, Addendum #1, Advertisement and Website.
NCI (Net Cyclops Inc.)
Automatic rejection - Addenda not acknowledged. Reference:
Purchasing By-law No. 5900-01, Procedure No. PUR 010-001,
10.04, Items 7-(12), Information to Bidders - Item 3(b), 16, 17,
18, 26, 27, Addendum #1, Advertisement and Website.
Conpute
Section 3, Item No. A, B and D - rejected - equivalent product
part/model number (substitution) stated without approval by the
City. Reference: Purchasing By-law No. 5900-01, Procedure No.
PUR 010-001, 10.04, Items 7-(7), 7-(15), - Information to
Bidders, Item 3(b), 16, 23, 24, 25; Specifications, Item 1 b
MIAD Information
Section 3, Item No. B - rejected - equivalent product part/model
number (substitution) stated without approval by the City.
Reference: Purchasing By-law No. 5900-01, Procedure No.
PUR 010-001, 10.04, Items 7-(7), 7-(15), - Information to
Bidders, Item 3(b), 16, 23, 24; 25; Specifications, Item 1 b
Venture Computers of
Section 3, Item No. D - rejected - equivalent product part/model
Canada Inc.
number (substitution) stated without approval by the City.
Reference: Purchasing By-law No. 5900-01, Procedure No.
PUR 010-001, 10.04, Items 7-(7), 7-(15), - Information to
Bidders, Item 3(b), 16, 23, 24, 25; Specifications, Item 1 b
March 22, 2011 Page 2
Tender for Supply and Delivery of Computers &
Network Equipment
Reference: Information to Bidders - City's Rights - Item 17 includes: 72
The City reserves the right to:
(e) accept the tender in whole or in part, by items, or in groups of items to one or more
bidders,
As the tendering document allows entire sections to be awarded separately, the most cost
effective award would be:
Section 1:
Venture Computers of Canada Inca- (Models 1 & 2)
Section 2:
Venture Computers of Canada Inc. - (Server License and Software)
Section 3:
Ederick Associates Inc. - (PC - Optional Model 1, PC Workstation, ViewSonic,LED)
Ederick Associates Inc. - (PC - Optional Model 2)
Acrodex Inc. - (Laptop and Docking Station)
Section 4:
Conpute - (Cisco Switches)
Section 5:
Ederick Associates Inc. = (SAN Tape Backup)
Please include the following items in your Report to Council:
(a) without past work experience, if reference information is acceptable;
(b) the appropriate account number(s) to which the.equipment is to be charged;
(c) the budget amount(s) assigned thereto;
(d) Treasurer's confirmation of funding;
(e) related departmental approvals;
(f) any reason(s) why the low bids are not acceptable; and
(g) related comments specific to the project.
March 22, 2011 Page 3
Tender for Supply and Delivery of Computers &
Network Equipment
73
Please do not disclose any information to enquiries except you can direct them to the City's
website for the unofficial bid results as read out at the public tender opening. Bidders will be
advised of the outcome in due course.
If you require further information, please feel free to contact me or a member of Supply &
Services.
r
VAF/jg
Attachments
March 22, 2011 Page 4
Tender for Supply and Delivery of Computers &
Network Equipment
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PICKERING
Report To
Executive Committee
Report Number: CST 20-11
Date: May 9, 2011
76
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Investment Portfolio Activity for the Year Ended December 31, 2010
Ontario Regulation 292/09 under the Municipal Act, 2001
Recommendation:
That Report CST 20-11 of the Director, Corporate Services & Treasurer regarding
Investment Portfolio Activity for the Year Ended December 31, 2010 be received for
information.
Executive Summary: The following report and attachments represent a summary
of the investment activity and year end balance in the portfolio. Investment activity for
the year 2010 totaled approximately $210.6 million with a year end balance in the
portfolio of approximately $68.6 million. Current Fund investments are limited to one
year or less and Reserve Funds to 10 years or less under the Council approved policy.
As discussed below and as confirmed by the attached Performance Report from BMO
Nesbitt Burns, the return on the City's portfolio has slightly declined from prior year.
However, returns compare favourably to market benchmarks. Over the last decade, the
City's returns have generally exceeded, sometimes significantly, comparative
benchmarks.
Financial Implications: Total investment income, including bank account interest
for 2010 was $1.1 million (2009 - $1.6M) of which $208,000 (2009 - $171,000) was for
the Current (Operating) Funds. The balance of the income was allocated to the various
reserve funds.
Sustainability Implications: This report does not contain any sustainability
implications.
Background: The City's investment portfolio is comprised of two main areas:
Reserve Funds and balances available in the Current Fund when not required to meet
current operating expenditures. This latter balance can vary greatly depending upon
many factors including the timing of the receipt of property taxes and levy payments to
the School Boards and the Region. Investments are undertaken as one consolidated
pool of funds and interest earned is credited back to the appropriate funds.
sport CST 20-11 Date: May 9, 2011
Subject: Investment Portfolio Activity for the Year Ended Page 2
December 31, 2010
Ontario Regulation 292/09 under the Municipal Act, 2001
The.Treasurer of the City of Pickering is obligated to report certain information and
opinions under Provincial Regulation 292/09 to Council. The attached schedules are
also included as part of the information requirements. The portfolio balance at
December 31, 2010 of $68.6 million (2009 - $62.1 M) is higher than the prior year
primarily due to the receipt of debenture proceeds of just over $4.0 million received in
the middle of October. These funds were for a number of projects that were already
underway or completed and had resulted in a reduction in the short-term funds
available for investing while awaiting the Region to go to market. The further increase
in the overall balance is due to the timing of the receipt and use of funds related to the
Federal Gas Tax instalment of $1.3 million received in the middle of November and
supplementary tax billing of $1.6 million due October 28 & 29, November 29 & 30 and
December 15. This resulted in a short-term investment balance at the end of 2010 of
$34.0 million (2009 - $27.6M). The overall increase in the Reserve Fund balances of
approximately $2.3 million contributed to an increased long-term investment balance of
$33.4 million (2009 - $32.2M).
The return on the portfolio slightly declined in 2010 with a weighted yearly rate of return
of 1.25% (2009 - 1.54%) on the combined short-term and long-term investments
excluding interfund investments. The economy continued to be sluggish during 2010
which kept the average short-term rate of return below 1.0%. The City's portfolio was
somewhat protected by having a favourable mix between the short-term (highly liquid)
and longer term investments, in addition to taking advantage of selling some bonds
early when they were selling at a premium and recognizing a monetary gain.
Investment parameters are much narrower for the City than permitted for money
market funds due to the Municipal Act and Regulations limiting the selection of qualified
investments for municipal entities. However, notwithstanding these restrictions, the
annual return of 1.25% still out performed the annual returns for the CIBC World
Markets 91-Day T-Bill Index (0.4%) and the Morningstar Canadian Money Market
Mutual Fund Index (0.3%). These returns are deemed comparative benchmarks for
reviewing the portfolio's performance and considered the standard for analysis of
investment funds in the industry.
The average return on interfund investments was 3.7% (2009 - 3.5%).
Of the year end total portfolio of some $68.6 million, approximately $33.4 million or
48.7% were external long-term investments and approximately $1.1 million or 1.6%
were Interfund Investments (Internal Loans). The balance of approximately $34.0
million is short-term investments of 90 days or less.
All investments were made in accordance with the Investment Policy approved by
Council.