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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 m-q:z -0 (D (D 3 N CD p N Cn N O v Q CD (D O n O C .-r CD 90 z (D 9 O >y CC] CD cn c/) cn - o • cn m o o co D z ; ; cn cn < cn C) cu D z ; cn mD m mEn m o CD m o m o (D m , CD 0 M C/ ) Q-0 Co (D Z 0 Z CL M ~ . 0 z < CD Cn r B n n C) z (D (D O z U) cn C!J O z co :3 7 Cn O O S C O O W m " N < < < (D (n 0 :3 70 o 70 7C) X CD (D CD (D (D 0 N O C m C) 7 o O O :3 C O O p C2 ' a) CU . (j) CD (D (D _0 _0 m o o - o ° o D (D . 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Z a N U FW- q U r O N d M U ~ Q) O N Z ,C C N O L C U Q N rte.. cu O a m U) a .Q m U O c a~ N cri CF) C O :zz a~ F- _ i . w E 4 r-J _ . r ~ a (a O C W Y t~ ^ r r y O` Q fn ; . . n N _ Q U LA t?" C\j Q i- J U tel.- p. G f ..1 U, Q e q Z a~ o J U cn O z c ca o r- m y N c _ = 47 1- _0. m x . o _0 M c a) Q v U) X E _ : o U) E c c - Q U 0 W ( 7 .o U N 4 a c co 0 a O O U vi O U N 0 O O C O U i a C O C b a m .c 4 U O N ,c a~ Of w F O eLtLf D¢► 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.