HomeMy WebLinkAboutCOD-063-09t/L • 11
LeaAing the way
REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE //
Date: Monday, November 2, 2009 ~~S ~ ~ C.~77 ~,~ ~G ~i~ " CP Q~ _Q
Report #: COD-063-09 File # By-law #
Subject: TENDER CL2009-41, FUEL TANK REQUIREMENTS AT VARIOUS
LOCATIONS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-063-09 be received;
2. THAT KLD Construction Limited, Ajax, ON with a total bid price of $389,085.00 (excluding
G.S.T.), being the lowest responsible bidder meeting all terms, conditions and
specifications of Tender CL2009-41, be awarded the contract for the Fuel Tank
Requirements at Various locations;
3. THAT funds required in the amount of $139,185.00 be drawn from the Operations 2009
Capital Budget Account 110-36-370-83677-7401 for Depot 42; and
4. THAT funds required in the amount of $249,900.00 tie drawn from the General Municipal
Reserve Fund for Hampton and Orono Operations Centre.
Submitted by:
Dire~Mf Corporate S;e • es
~7J~.fi1 i //~/n
N"a~icy l'~ylpJr, B.B./~l,`'C.a.,
Director of FinancelTreasurer
MMIJDBI6H
Reviewed by:
,~J Chief Administrative Officer
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169
REPORT NO.: COD-063-09
7. .BACKGROUND AND COMMENT
PAGE2
1.1 The Operations Department have budgeted for a fuel station at Depot 42 in the
2009 Capital budget.
1.2 In 2009 the Municipality of Clarington fuel supplier changed from Shell Canada
Products Limited to Petro Canada. At the time of the contract award, the new
supplier requested an inspection prior to delivering product, as per Ontario
Regulation 217/01.
1.3 The inspection revealed that the underground tanks do not meet the code
requirements. As per the Liquid Fuel Handling Code 2007, the Hampton and
Orono Operations Centre are not in compliance with the Technical Standards
and Safety Authority (TSSA) requirements. The tanks are single wall Fiberglas
Reinforced plastic (FRP) and do not have drop tubes and internal overfill devices.
There are no monitoring wells. The piping is single wall galvanized steel which
must be upgraded to meet current standards.
1.4 Petroleum Technical Services, our consultant for this project, prepared a report
which outlined the code deficiencies and provided options so that legal
compliance may be achieved.
1.5 Tenders were publicly advertised and called for the Fuel Tank Requirements at
Various Locations as required by the Operations Department. Subsequently,
two tenders and one no bid were received and tabulated as per Schedule "A"
attached.
2. ANALYSIS
2.1 The low compliant bid was submitted by KLD Construction Limited, Ajax,
Ontario.
2.2 The references for KLD Construction Limited, Ajax, Ontario have been
contacted and are satisfactory.
REPORT NO.: COD-063-09
3. FINANCIAL IMPLICATIONS
PAGE3
3.1 'The total funds of $389,085.00 required for Tender CL2009-41 Fuel Tank
Requirements at Various Locations exceed the Operations Department budget.
3.2 Funds in the amount of $200,000.00 have been allocated for the fuel station at
Depot 42, in the Operations 2009 Capital Account 110-36-370-83677-7401. The
bid submission was received in the amount of $139,185.00. As this is a growth-
related capital project funded 90% through development charges, the cost
savings cannot be reallocated to the other two tanks that are replacements.
3.3 Hampton and Orono Operations Centres were not included in the original budget.
As both locations do not meet the TSSA requirements, the existing fuel station(s)
need to be replaced. Funds in the amount of $249,900.00 are required in order
to replace the fuel stations and bring them into compliance.
3.4 It is recommended that the funding for the Hampton and Orono Operation Centre
come from the General Municipal Reserve Fund.
3.5 Queries with respect to department needs, specifications, etc., should be referred
to the Director of Operations.
4. CONCLUSION
4.1 After review and analysis of the bids by Purchasing and Operations, it was
mutually agreed that the bid from KLD Construction Limited, Ajax, Ontario be
recommended for the contract for Tender CL2009-41 Fuel Tank Requirements.
5. INPUT FROM OTHER SOURCES
5.1 This report has been reviewed for recommendation by the Purchasing Manager
with the appropriate departments and circulated as follows.
Concurrence: Operations Co-Ordinator
Attachments: Attachment 1 -Schedule "A", Bid Summary
REPORT NO.: COD-063-09
PAGE4
Schedule "A"
Bid Summary
Tender CL2009-41
BIi)F1fR Hampton S Orono .Optional -Depot 42
Operations Centre TOTAL BID
TOTAL BID (GST Excluded)
(GST Excluded)
KLD Construction Limited $249,900.00 $139,185.00
Ajax, ON
`Cannington Construction $364,030.00 $190,175.00
Gormely, ON
Canadian Tech Air Systems Inc no bid no bid
Scarborough, ON
non-compuant - no oia pond