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HomeMy WebLinkAboutOES 39-08 Ciiq 01 REPORT TO EXECUTIVE COMMITTEE 4 6 Report Number: OES 39-08 Date: November 10, 2008 From: Everett Buntsma Director, Operations & Emergency Services Subject: Facility Snow Removal - Quotation No. Q-69-2008 File: A-1440 Recommendation: 1. That Report OES 39-08 regarding Facility Snow Removal be received; 2. That Quotation No. Q-69-2008 submitted by C&R Paving Inc. for Snow Clearing and Salting Service - Facility Parking Lots Schedule A in the amount of $89,000 plus GST for Year 1 and $95,500 plus GST for Year 2 and Schedule C (hourly rates) Year 1 and Year 2 be accepted; and 3. That the appropriate City of Pickering officials be authorized to take necessary action to give effect thereto. Executive Summary: Quotations have been received for the provision of Snow Clearing and Salting services at the Facility Parking Lots for a two year term to commence November 18, 2008. Staff recommend acceptance of the low bid submitted by C&R Paving Inc. for the 2008- 2009 winter season. Financial Implications: 1. QUOTATION AMOUNT Q-69-2008 GST Total including GST GST Rebate Total $184,500 9,225 193,725 ( 9,225) $184,500 Report OES 39-08 Subject: Facility Snow Removal 4 7 - Quotation No. Q-69-2008 November 10, 2008 Page 2 2. APPROVED SOURCE OF FUNDS Facilities Operations Current Budget Year 1 (November 18, 2008 - April 30, 2009): Civic Complex East Shore (Seniors) Don Beer Community Centres Recreation Complex - Central Core - Pool - Arena Year 1 Total Year 2 (November 1, 2009 - April 30, 2010): Civic Complex East Shore (Seniors) Don Beer Community Centres Recreation Complex - Central Core - Pool - Arena Year 2 Total $184,500 maximum over 2 years 2124-2435 $ 8,000 2572-2435 6,750 2715-2435 10,500 2719-2435 21,250 2731-2435 14,200 2733-2435 14,100 2735-2435 14.200 $89,000 2124-2435 $ 9,000 2572-2435 7,000 2715-2435 11 ,000 2719-2435 23,500 2731-2435 15,000 2733-2435 15,000 2735-2435 15.000 $95,500 The total annual cost of the current contract for Year 1 amounts to $89,000 plus GST. Year 2 has an increase in annual costs in the amount of $6,500 plus GST, which will be reflected in the annual operating budget for the 2010 forecast. The extension of Year 2 of the contract to the contractor is contingent upon satisfactory performance in Year 1, budget, City's requirement and acceptable rates to be reviewed by the City in 2009. Sustainability Implications: Not Applicable. Background: Quotations for Q-69-2008 were received on October 14, 2008. Twelve (12) companies were invited to participate, and four (4) have responded by the closing deadline. Quotations shall be irrevocable for 60 days after the official closing date and time. CORP0227-07/01 revised Report OES 39-08 November 10, 2008 Subject: Facility Snow Removal Quotation No. Q-69-2008 48 Page 3 The quotation summary is as follows: P' . 5 h d I A F Tf GST E t r1cmg - c e ue - aCI lies - x ra Bidder Facilities Year 1 Year 2 C&R PavinQ $89,000.00 $95,500.00 CSR Services $93,500.00 $93,500.00 Gerrits Property Service $91,775.00 $96,165.00 Lloyd's LandscapinQ $152,613.75 $160,244.00 References for the low bidder have been checked and are determined to be satisfactory. The Health and Safety Policy, Clearance Certificate issued by Workplace Safety and Insurance Board and the WSIB Cost and Frequency Record as submitted by C&R Paving Inc. have been reviewed by the Coordinator, Health & Safety and are deemed acceptable. This year's' service contract for snow removal and salting has been significantly re- worked to better represent a "best practice" approach. Two of the major revisions to the contract are as follows: 1. The provision of salting has been incorporated with the snow removal contractor. In this way, the one contractor is responsible for the site and this eliminates coordination issues with the Operations Centre. 2. The contract has been revised from a "per event" basis to a flat rate seasonal contract. This provides a firm revenue stream for the contractor, and allows the contractor to assume the risk on the number and severity of storm events. As a result of the seasonal contract approach, the City actually attracted four contractors to bid this contract, three of whom were very competitive. On a go forward basis, this type of service contract arrangement will provide the City with an accountable method of monitoring this work. It is difficult to compare previous budgets, as they were based on "call-outs". This contract method represents a marginal increase of $14,000 annually but also includes the salting which was not budgeted for previously. This methodology will also provide the City with a fixed annual cost which is not affected by uncertainty due to varying winter conditions. The proposed 2009 draft current budget has been revised to reflect these costs. The Manager, Supply & Services concurs with this recommendation. Attachments: Not Applicable. CORP0227-07/01 revised Report OES 39-08 November 10, 2008 Subject: I;. 49 Facility Snow Removal Quotation No. Q-69-2008 Page 4 Prepared By: r;t?J Tony Prevedel Division Head, Facilities Operations Everett Buntsm Director, Operations & Emergency Services ~~. Gillis Paterson Directo Corporate Services & Treasur r I Vera A. Fe emacher, CPP, CPPO, CPPB, CPM, CMM III Manager, Supply & Services TP:lg Copy: Chief Administrative Officer Recommended for the consideration of Pickering City \ /1 CORP0227-07/D1 revised