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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