HomeMy WebLinkAboutOPD-002-11REPORT
OPERATIONS DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: February 28, 2011 Resolution#: ~PA- / 83--// By-lavu#: N/A
Report: OPD-002 -11 File:
Subject: TENDER NO. CL2010-23 DRIVEWAY TIE-INS -AMENDMENT
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report OPD-002-11 be received for information and confirmation of
funding for additional work.
Submitted by:
Frederi J. Ho th,
B.A., R.D.M.R., R. .F.A.
Director of Operations
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Reviewed by:
Franklin Wu,
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.: OPD-002-11
PAGE 2
1.0 BACKGROUND AND COMMENT
1.1 At their meeting of June 21, 2010 Council passed a resolution approving the
award of a contract to Melrose Paving Company, Etobicoke for the provision of
driveway tie-ins with an annual value of $46,400.02. There is provision in the
agreement to extend the contract for a second and third year subject to
satisfactory service and acceptable pricing. A copy report COD-034-10 is
attached as Schedule "A".
1.2 In December 2010 it was discovered that the value of the contract had exceeded
the amount stated in the original report COD-034-10 by a significant amount.
This was a result of additional funds being approved for rural roads after the
2010 budget was approved. As noted the contract amount provided in the tender
was $46,400.00 net of HST rebate and actual expenditures to date are estimated
at $80,062.00 net of HST rebate.
2.0 ANALYSIS
2.1 For clarification, the original report COD-034-10 referenced a contract amount that
was based on the estimated work proposed for 2010. However, the bid
document made provision for an adjustment in quantities based on additional
work that was required after award of the contract. By the same token the
contract also alerted the bidders that we do not guarantee the amount of work
listed in the estimates.
2.2 The purpose of this report is to provide updated information on the value of the
contract not only for 2010 but also to advise that the subsequent years may also
experience increased work. Should this occur the agreement will be closely
monitored to ensure that adequate funding is in place and costs are allocated to
the appropriate accounts. Where it is anticipated that budgets will be
exceeded/depleted as a result of the extra work the required approvals will be
sought in accordance with corporate policy.
REPORT NO.: OPD-002-11
PAGE 3
2.3 Steps are being taken to improve the level of scrutiny that this type of contract is
subjected to ensure that budgets are monitored and contractors do not complete
additional work that is not in line with the approved budget.
3.0 FINANCIAL
3.1 A review of the expenditures, although in excess of the estimates provided in the
contract, revealed that the funding for the extra work was authorized by the
Operations Department budget as follows:
Account Expenditure
Total Expenditure against this contract $80,062.84
Fundina Source
Rural Road Resurfacing Account #
110-36-330-83680-7401: $19,635.31
Resurfacing Pavement Account #
100-36-381-10250-7163: $41,279.83
Bridge Maintenance
100-36-380-10200-7112 $ 9,794.30
Catchbasin Repairs
100-36-380-10245-7163 $ 6,427.80
Winter Maintenance -Other
100-36-383-10305-7112 $ 2,925.60
Total $80,062.84
The invoices have been reviewed and expenses allocated to the correct
accounts, as listed above.
4.0 CONCLUSION
4.1 The purpose of this report is to clarify the scope of contract for the driveway tie-in
services contract. Although a value is provided for the purpose of award, the
contract includes provision for the completion of additional work based on the
REPORT NO.: OPD-002-11
PAGE 4
unit prices contained in the contract. There is also provision in the contract to
protect the municipality should the quantity of work fall short of the estimate.
4.2 As noted in the Financial Section, funding is provided in the annual operating
budget under the Pavement Resurfacing Account. However, when the driveway
tie in is a result of the Capital rural road resurfacing contract than the funding for
this extra work shall be taken from the capital program.
4.3 Queries with respect to department needs, specifications, etc., should be referred
to the Director of Operations.
5.0 INPUTS FROM OTHER SOURCES
5.1 This report has been reviewed for recommendation by the Director of Finance and
Purchasing Manager, with the appropriate departments and circulated as follows.
Concurrence: Director of Finance
Purchasing Manager
Attachments:
Schedule "A" -COD-034-10
ATTACHMENT NO.: 1
REPORT NO.: OPD-002-11
•
~~1"Lg REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: June 21, 2010
Resolution #:
Report #: COD-034-10 File #_ By-law # N/A
Subject: TENDER NO. C12010-23 -DRIVEWAY TIE-INS
Recommendations:
It is respectfully recommended "that the General Purpose and Administration Committee
recommend to Council the following:
THAT Report COD-034-10 be received;
2. THAT Melrose Paving Company, Etobicoke, Ontario, with a total bid in the amount of
$46,400.02 (net of H.S.T. Rebate), being the lowest responsible bidder meeting all
terms, conditions and specifications of Tender CL2010-23, be awarded the contract
for Driveway Tie-Ins, as required by the Municipality of Clarington, Operations
Department;
3. THAT pending satisfactory pricing and service the contract be extended for a second
and third year; and
4. THAT the funds expended be drawn from the Operations Department Annual
.Operating Budget Account 100-36-381-10250-7163 Pavement Resurfacing.
Submitted by: Reviewed hy:
ie Marano, H.B.Sc., C.M.O., ankiin Wu,
Director of Corporate Services ~ Chief Administrative Officer
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CORPORATION OF THE MUNiCIPgLITY OF Ct-ARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: COD-034.10
1.0 BACKGROUND AND CdMMENT
PAGE 2
1.1 Tender CL2010-23 Driveway Tie-fns was advertised and issued with bids being
received as per Schedule "A" attached.
1.2 The term of this contract is for a period of up to three years with annual renewal
subject to acceptable pricing and the provision of satisfactory service.
2.0 ANALYSIS
2.1 After review and analysis of the bids by the Operations Department and Purchasing,
it was mutually agreed that the low bidder Melrose Paving Company, Etobicoke,
Ontario, be awarded the contract for Driveway Tie-lns.
2.2' Melrose Paving Company has provided similar services to the Municipality of
Clarington for a number of years and the level of service has been satisfactory
2.3 Queries with respect to the department needs, specifications, etc, should be referred
to fhe Director of Operations.
3.0 FWANCIAL
3.1 The total funds required for Tender CL2010-23 Driveway Tie-Ins are included in the
Operations Department Annual Operating $udget Account 100-36-361-10250-7163
Pavement Resurtacing.
3.2 For the information of Council, the unit pricing remains the same as the 2009 rate.
3.3 The contract will be monitored to ensure fhe service level is maintained and rates
applied correctly.
REPORT NO.: COd-03M10
4.0 CONCLUSION
PAGE 3
4.1 To award the contract to Melrose Paving Company, Etobicoke, Ontario for the
Driveway Tie-ins.
5.0 INPUT FROM OTHER SOURCES
5,1 This report has been reviewed by the Purchasing Manager, with the appropriate
department and circulated as follows:
Concurrence: Director of Operations
Attachments:
Attachment 1 -Schedule "A", Bid Summary
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CORPORATE
Etobicoke,
Port Perry, ON
Toronto, ON
REPORT
SERVICES DEPARTMENT
Schedule "A"
Bid Summary
Tender CL2010-23
Burlington, ON