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HomeMy WebLinkAboutCOD-058-09~~lIl~°~0~ Unfinished Business #2 ~~mRa:hs way REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINIST TION COMMITTEE Date: Monday, September 28, 2009 Report #: COD-058-09 File # By-law # Subject: SENIORS AND PHYSICALLY DISABLED SIDEWALKNVINDROW SNOW CLEARING Recommendations: It is respectfully recommended that the General Purpose. and Administration Committee recommend to Council the following: 1. THAT Report COD-058-09 be received; 2. THAT Council provide direction with respect to the provision of the senior's and disabled snow clearing services; 3. THAT, should Council elect to provide the service for the 2009-2010 season by means of contracted services the Manager of Purchasing be authorized to proceed with a bid solicitation process for the provision of the senior's and physically disabled sidewalk snow clearing service for all Clarington areas and report back with the bid results at the earliest possible date; 4. THAT Council provide direction with respect to the application of and the amount of an annual fee to be charged for the provision of the service; and 5. THAT Margaret H. Polman, and other interested parties on record, be advised of Council's decision. Submitted by: Reviewed by: .l'~G~d« arie Marano,. H.B.Sc., C.M.O., / / Franklin Wu, Director of Corporate Services /h~' Chief Administrative Officer MMIJDB1km CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905) 623-3379 F (905) 623-4169 REPORT NO.: COD-058-09 PAGE2 1. BACKGROUND AND COMMENT 1.1 At their meeting heild September 21, 2009, Council approved a General Purpose and Administration Committee resolution that staff investigate options for the senior's snow clearing program and provide information on the programs of neighbouring municipalities. (Resolution #GPA-511-09 -attached as Schedule "D"). 1.2 This report outlines the options available to the Municipality with respect to the Seniors Snow Clearing program as well as an overview of the programs offered by the neighbouring municipalities of Oshawa, Whitby, Ajax and Pickering. Based on available records and informal inquiries staff has also provided estimates of cost, staffing implications and outlined the timing issues associated with each option. 1.3 Although not a corgi service, for a number of years the Municipality has provided sidewalk and windrow snow clearing service using contracted forces to clear the snow from senior's sidewalks and remove windrows from driveways. The contracts have been established using the competitive bid process and a review of the files indicates that the competition for this, contract has been limited. For example, in 2006 when the contract was tendered there was only one bidder that bid all areas. There was a second bidder for Section 3 only, but the prices were slightly higher. The 2006 contract also included snow clearing services for municipally owned properties, additional sidewalks, municipal facilities, snow clearing from boulevards and trails and pathways as well as the senior citizens and physically disabled snow clearing. Overall, this contract was significant in size and was a challenge for any contractor given the number of sites to be serviced and the geographic coverage. 1.4 In 2009 the snow clearing requirements were divided into two tenders, one for the municipal properties, sidewalks and boulevards and the second for the senior's sidewalk snow clearing and bidders were given the option of bidding on one or any combination of areas being Courtice, Bowmanville and Newcastle and Rural Areas. As noted in Report COD-051-09 copy attached as Schedule 'A', response to the senior's snow clearing tender provided one acceptable bid for Courtice and Bowmanville areas only and it was not practiical to accept this bid given that there was no assurance that a second request for bid would result in submissions covering the Newcastle and Rural REPORT NO.: COD-058-09 PAGE3 1.5 Attached for inforr~nation is a tabulation of services provided by neighbouring municipalities (See Schedule C) 2. ANALYSIS 2.1 Essentially, there are three options available to the Municipality that deal with the senior's snow clearing service. The options are listed below and include a discussion on each option: a) Provide the service using contracted forces (past practice); b) Provide the service using municipal staff and equipment; or c) Let the current resolution stand. 2.2 Provide the service using contracted forces; i) In order to provide the services using contracted service, standard practice calls for formal public bid solicitations to secure the required prices necessary to proceed with an award. However, as noted in Report COD-051-09 interest in the contract has been limited. Should Council direct that a new process be undertaken to secure prices the process is further complicated by the limited time before the onset of winter. At present many of the contractors have either committed to contracts for the coming winter or they are in the process. Our requirements are also complicated by the significant gepgraphic area involved and the low level of need in the rural areas; approximately 82 locations in Newcastle, 24 in Orono and 43 in the rural hamlets of Newtonville, Leskard, Hampton, Burkton, Enniskillen, Kirby and Townline Road whereas Courtice has 223 locations and Bowmanville has 436 (808 in total). Given the extensive travel required to service these areas contractors are reluctant to undertake a contract of this nature or if they are interested, their prices will be high to reflect the travel. With respect to the timing, using the bid process would take approximately 6 do 8 weeks to draft, issue the bid documents, receive submissions, conduct evaluations and prepare a report to Committee and Council. Assuming bids could be obtained to provide services to all areas an award would likely not be made until late November. REPORT NO.: COD-058-09 PAGE4 ii) To complicate the situation, the Operations Department requires time to distribute letters to potential customers, obtain responses and determine the actual requirements for the season. This should not be done until it is certain that service can be provided. iii) The unknowns associated with this option are the number of responses that can be expected from the contractors and, if sufficient bids covering the Municipality consistently will be obtained to make an award possible. 2.3 Provide the service using municipal staff and equipment. i) As noted in Schedule `C', Oshawa, Whitby and Ajax provide the senior's snow clearing service as part of their annual program and the service is provided by municipal staff. ii) These programs, have been in place for some years and the three municipalities have acquired the necessary equipment needed for the service and aligned their staff to facilitate snow clearance. Regardless, they find it to be a challenge to meet the criteria established for snow clearance. Oshawa, for example, utilizes 9 pieces of equipment to clear approximately 2,420 sites and most of their clearance areas are centralized compared to those in Clarington which are widespread geographically. In addition, Oshawa utilizes staff from other divisions to supplement their operations work crews during the winter months. iii) If Clarington is to consider an in-house operation a significant investment in equipment and manpower would be required to cover the provision of additional service. This equipment would also include a means of transporting the snow removal equipment to the rural areas to keep travel time to a minimum. Staffing is also an issue as current staff struggle to maintain the existing level of service and work within the number of hours and limitations allowed by current legislation. Based on a preliminary review it is estimated that at least five snow clearing units plus trailers and towing vehicles for transportation would be required. In addition to the equipment requirements, the staffing needed to operate the equipment would have to be resolved. it is estimated that ten (10) additional staff would be required to accommodate the snow clearing needs. And depending on the current work load of existing supervisory staff, and additional supervisor may be required. Whether the REPORT NO.: COD-058-09 PAGES proposed staff are full time or temporary would have to be resolved as would the training and licencing to enable them to operate the equipment as assigned. Assuming temporary staffing could be used it is estimated that the cost of the staffing for approximately six months would be in the area of $265,000 plus benefits for straight time. Overtime for snow storms would add to this cost but an estimate is difficult to determine at this time. If full time staff were required and an additional supervisor was required the labour costs would increase significantly. iv) At the time of report preparation the best type of equipment has not been determined and.. as a result, the availability is an unknown. However, using the type of equipment utilized by other municipalities as an example it is estimated that the five (5) sidewalk snow removal units would be required at a cost of approximately $140,000 each and five (5) trailers would cost approximately $10,000 each. The five (5) pickup trucks .required to tow the trailers and also clear windrows are estimated at approx $40,000 each. In addition, a support unit would be required to provide the salt and sand needed by the snow clearing equipment. This would be estimated at $200,000. Total estimated equipment cost for start up for the first year would be in the area of $1,150,000 plus Retails Sales Tax or $1,242,200. In the event an additional supervisor is required it may be necessary to add an extra vehicle for transportation. Ais noted above the staffing requirements and cost would have to be finalized. The foregoing outlines the capital cost of the equipment. Once the equipment is acquired, it would require routine maintenance and repairs. At the time of report preparation these figures were not available but they are expected within the week. v) Should Council consider the in-house option it is recommended that it be explored for possible implementation no sooner than the 2010-2011 season to allow time for the budgeting and acquisition of equipment and the resolution of staffing issues. The 2010 budgets for both operating and capital would also need to reflect the equipment acquisition costs end the staffing costs for snow clearing services. For clarification, it is not practicable to implement this type of program on short notice as equipment availability is limited, funding has not been provided and staffing would have to be resolved. For example a tractor unit takes approximately 8 weeks from date of order while a single axle truck with sander (support vehicle) can take up to one year for delivery. REPORT NO.: COD-058-09 PAGER 2.4 Let the current resplution stand. i) Based on the July resolution, this option was given consideration and adopted for the 2009-2010 season. If allowed to stand the seniors and the physically disabled will be required to make their own arrangements for the provision of the service. Their options will include the following: a. Make arrangeements to have the snow cleared by a friend or family member. There may be a nominal cost associated with this option. b. Arrange to have the snow cleared using a private contractor. This option will have a cost associated with the service. c. Some of the seniors may qualify for the snow removal services available through Community Care Durham. There is a cost associated with this option, but will probably be less than a private contractor. The use of this option is limited to those who qualify and may be further complicated by the limited resources available to Community Care Durham. 3. FINANCIAL IMPLICATIONS 3.1 With the exception of Option C, there is a significant cost associated with the provision of the service as follows: a) Provide the serviice using contracted forces to complete the work. Based on the unit prices provided in the last tender for the seniors snow clearing service it is estimated that the cost will be in the area of $88,000.00 per season assuming contractors are prepared to bid on the project. By comparison, the actual cost of the service during the 2008-2009 winter season was $59,886.13. This does not include munigipal administrative costs associated with contract management. b) Provide the service using municipal staff and equipment. As noted in section 2.3 above the estimated cost of equipment necessary to complete the wortlc is $1,150,000.00 plus staffing. The cost of equipment would be an initial capital ©utlay and beyond that there would be on-going maintenance and repair costs throughout the life of the equipment. In addition, there should be a contribution to the reserve for the eventual replacement of the equipment as it reaches the end of its life. This option holds a significant start up cost but once the initial outlay for equipment is out of the way the annual cost would be relatively REPORT NO.: COD-058-09 PAGE7 repair costs throughout the life of the equipment. In addition, there should be a contribution to the reserve for the eventual replacement of the equipment as it reaches the end' of its life. This option holds a significant start up cost but once the initial outlay for equipment is out of the way the annual cost would be relatively consistent depending on frequency of snow fall. Depending on the type of equipment selected, there is a possibility that some off the equipment could be equipped for use in the summer months however this would require further review to determine cost, Staffing requirements. c) Let the current resolution stand. From the municipalities perspective there is no monetary cost for this option. 3.2 In the past this service has been provided at no direct cost to those who qualify and register with the municipality. The cost to provide the service has been borne by the Municipality and paid for from operating accounts. This is similar to most of the area municipalities with the exception of Ajax who charges an annual fee of $100 to those receiving the service. Given the number of properties estimated for 2009-2010 at 808, a $100 charge for thee.. service would recover approximately $80,800.00. Not all of the costs associated with the work would be recovered but it would lessen the cost to the Municipality. 4. CONCLUSION 4.1 After review and analysis of the options, it is clear that there are three significant obstacles to the provision of the service for the 2009-2010 winter season. The first being the short time available to establish prices and contracts. The second is the availability of contractors prepared to undertake the work and the third is the cost of providing the service. 4.2 Should Council elect to provide the service using contracted services for the 2009-2010 winter season it is imperative that work begin immediately in order to have contracts in place before the winter season arrives. 4.3 Should Council decide that an in-house service is preferred, it is recommended that this option be considered for the 2010-2011 season or later. REPORT NO.: COD-058-09 PAGE8 4.4 Should Council conf~rm their decision to defer the service for the 2009-2010 season but provide the service i'n 2010-2011, direction is required as to how the service should be provided in 2010; i.e. contracted or by municipal staff and in so doing direct staff to prepare the 2010 operating and capital budgets accordingly. 5. PROCEDURAL MIyTTERS 5.1 On July 13, 2009, Council passed a resolution which cancelled the Senior Snow Clearing Program for the 2009/2010 season. As this was an action of Council, the General Purpose and Administration Committee cannot reconsider that decision. Report COD-058-09 is included on the General Purpose and Administration Committee for the purpose of generating discussion in light of the resolution Committee passed on September 14 which was approved by Council on September 21, 2009. 5.2 Following the discussion on the matter, should it be Council's wish to reconsider the earlier decision of Council to cancel the program, it would be appropriate to table Report COD-058-09 to the Gouncil meeting of October 5, 2009. The report would be included on the Council agenda under the heading "Unfinished Business". It will be necessary for a Notice of Motion to'be provided to the Municipal Clerk for inclusion on that agenda that will allow for the reconsideration of Resolution #C-452-09. Should the reconsideration motion carry by the required 2/3 vote (i.e., 5 members), the item is back up for discussion and can be defeated at that point. That would then pave the way for the tabled report to be considered under Unfinished Business. 6. INPUT FROM OTHER SOURCES 6.1 This report has been reviewed for recommendation by the Purchasing Manager with the appropriate departments and circulated as follows. Concurrence: Operations Co-Ordinator Information: Director' of Finance/Treasurer Attachments: Schedule "A", Report COD-051-09 Schedule "B", Council Resolution # C-452-09 Schedule "C", Neighbouring Municipalities Survey Schedule "D", General Purpose and Administration Resolution #GPA-511-06 ~~o leading the 4V'ay `J SCHEDULE "A" REPORT CORPORATE SERVICES DEPARTMENT Meeting: COUNCIL , ~ -~ ~. - ~~s a-coq Date: July 13, 2009 Report #; COD-051-09 File # By-law # Subject: Senior Snow Clearing Tender -Deferral of Service 2009-2010 Season Recommendations: it is respectfully recommended that Council approve the following: i. THAT Report COD-O51-09 be received; 2. THAT Council provide direction on the following options: A) THAT based on the potential for incomplete service for the Senior Snow Clearing Program due to tender bids for part of the municipality only, Council consider deferral of the program for the winter 2009-2010 season; THAT B.J. Flint, be advised that the tender for the 2004/2010 Senior Snow Clearing Program is cancelled; and THAT in light of the current economic climate resulting in budgetary restraints the 2010 budget deliberations considers the future of this non-core service provision for the 2010/2011 winter season. OR: B) THAT a re-tender for Section 3 Newcastle and surrounding area (including Newtonville, Tyrone, Kendal, Hampton etc.) be issued with the additional provisions made to secure the prices for section 1 & 2 as described in the report; and 3. THAT the low bidder, D & F Snow Removal, be advised that their bid for Senior Snow Removal program and other service programs, is rejected on the basis of unacceptable past service, until such time as there is proof that their service meets acceptable Municipal standards ; SCHEDULE "A" REPORT NO.: COp-051-Q9 PAGE2 Submitted by: _ Marie Marano, H.i3.Sc., C.M.O., Director of Corporate Services MM~gj 40 TEMPERANCE STRF~T, Reviewed by: ~ ~-~^•`~-'C.-!~-'U 6t, Franklin Wu, Chief Administrative Officer ONTARIQ OF Tt1E ClARINGTON SCHEDULE "A" REPORT NO.: COD-U51-09 PAGE 3 BACKGROUND 1,0 Tender -Senior Snow Clearing Program - 2009/2010 Winter The tender for the Senior Snow Gearing Program for windrows and sidewalks ttrree year program covering 2004 to 2011 has just been received and reviewed. The tender was set to allow bidding on a three year term based on satisfactory service and pricing and it allowed bidding on all or part of the municipality so that the award could be made to one or multiple vendors. The Municipality was divided into three sections: Section 1 Courtice, Section 2 Bowmanville, and Section 3 Newcastle & Surrounding Areas. The total tender value is approximately $87,000 annually and it includes snow clearing for approximately 715 IOCatI0n5. The low bidder, D & F Snow Removal, bid an each of the three sections. This vendor's contract for by-law snow clearing was terminated through report COI7- 23-09 due unsatisfactory service level. It is therefore not recommended far award of this contract. Although bid rejection for unsatisfactory past pertormance is permitted by the Purchasing By-law, it requested that Council confirm the rejection of the a & F bid. TI7e second low bidder B.J.Flint, submitted a bid only on Section 1 Courtice, and Section 2 Bowmanviile. The bid prices are secure for a period of 90 days from the tender opening on ]une 30, 2009. Although the senior snow/sidewalk clearing program is not a core municipal responsibility, awarding the contract for only part of the Municipality would not be recommended as it is inconsistent with the normal practice for delivery of services. The third bid was rejected as anon-compliant bid as it was submitted without accompanying bid deposit. The prices on the non-compliant bid were significantly higher than either of the other two bids. 2.0 The Options The options at this point are as fo8ows: a} Re-tender for Section 3 Newcastle and surrounding area {including Newtonville, Tyrone, Kendal, Hampton etc.). It is not expected that B.J. Flint would bid on this tender since they chose not to bid on the first tender: The situation is complicated by the necessity to not award the Courtice & Bowmanville quotes in case there were no bids received on the second tender, and we would be bound by contract for service to only part of the Municipality. In addition by going out for the second tender, in order to hold the existing bid for Section i & 2, it would require asking B,J. Flint to hold their prices for another 60 to 90 SCHEDULE"A" REPORTNO.: COD-051-09 PAGE 4 days to allow possible bids for section 3 to be considered at the same time, and either award al( three sections, or cancel at that time if there are no bids received. if no bids are received, and B.). Flint has in good faith held their prices firm, cancellation at that late date could have prevented B.7. Flint to have secured Other job op~rtunities. The tender is for a three year term and as such award would commit the service for the next three winters, to the 2011/2D12 season. b} The potential budget impact resulting from the current economic climate may require adjustment to service levels, possibly even extending to certain employment impact. In view of the service being aver and above the care service levels, and the lack of comprehensive response to the open and transparent bidding opportunity, it may be appropriate to consider deferral of the program until the service can be deliberated in the 2DiD budget discussions. 3.0 Canclasion Council is requested to provide direction on option a} or b} as outlined above. SCHEDULE "B" Council Meeting Minutes - 34 - July 13, 2009 Resolution #C-452-09 Moved by Councillor Hooper, seconded by Councillor Novak THAT Report COD-051-09 be received; THAT based on the potential for incomplete service for the Senior Snow Clearing Program due to tender bids for part of the municipality only, Council consider deferral of the program for the winter 2009-2010 season; THAT B.J. Flint, be advised that the tender for the 2009/2010 Senior Snow Clearing Program is cancelled; THAT in light of the current economic climate resulting in budgetary restraints the 2010 budget deliberations consider the future of this non-core service provision for the 2010/2011 winter season; and THAT the low bidder, D & F Snow Removal, be advised that their bid for Senior Snow Removal program and other service programs, is rejected on the basis of unacceptable past service, until such time as there is proof that their service meets acceptable Municipal standards. "MOTION CARRIED" (See following motion) Resolution #C-453-09 Moved by Councillor Trim, seconded by Councillor Robinson THAT Report COD-051-09 be tabled until after the Special Council meeting scheduled for August 31, 2009. "MOTION LOST" The foregoing Resolution #C-452-09 was then put to a vote and CARRIED. Resolution #C-454-09 Moved by Councillor Woo, seconded by Councillor Trim THAT Report FND-018-09 be received; and THAT the 2008 Draft Audited Financial Statements be approved. "CARRIED" SCHEDULE "C' W rH V z ~. 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C n ao m O .~ N ti N v m a SCHEDULE "D" General Purpose and Administration Committee Minutes September 14,.2009 TENDER CL2009-40, SNOW CLEARING & WINTER MAINTENANCE OF MUNICIPAL PROPERTY, SIDEWALKS 8~ PARKING LOTS FOR NEWCASTLE 8~ SURROUNDING AREAS Resolution #GPA-511-09 Moved by Councillor Robinson, seconded by Councillor Trim THAT Report COD-053-09 be received; THAT Birds Property Management and Grounds Control, Hampton, ON with a total bid price of $56,979.60 (excluding G.S.T.), being the lowest responsible bidder meeting all terms, conditions and specifications of Tender CL2009-40, be awarded the contract for the Snow Clearing & Winter Maintenance of Municipal Property, Sidewalks & Parking Lots for Newcastle & Surrounding Areas; THAT pending satisfactory pricing and service the contract be extended for a second and third year; and THAT the funds expended be drawn from the Operations, Emergency Services, Community Services and Clerks Department(s), 2009 Operating Budget(s). CARRIED SENIOR SNOW CLEARING OPTIONS Resolution #GPA-512-09 Moved by Councillor Foster, seconded by Councillor Robinson THAT staff be requested to investigate options for a senior snow clearing program including programs in neighbouring municipalities. CARRIED FINANCE DEPARTMENT REPORT ON REVENUE SENSITIVE TO ECONOMIC CONDITIONS -JUNE 2009 Resolution #GPA-513-09 Moved by Councillor Novak, seconded by Councillor Trim THAT Report FND-019-09 be received for information. CARRIED -13-