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Staff Report
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Report To: General Government Committee
Date of Meeting: March 8, 2021 Report Number: FSD-012-21
Submitted By:
Reviewed By:
File Number:
Trevor Pinn, Director of Financial Services
Andrew C. Allison, CAO
CL2018-25
Report Subject: High Float Resurfacing
Recommendations:
1. That Report FSD-012-21 be received;
Resolution#: GG-244-21
By-law Number:
2. That the Purchasing Manager in consultation with the Director of Public Works be
given the authority to extend contract CL2018-25 High Float Resurfacing for an
optional one-year term;
3. That Miller Paving Limited be awarded the optional one-year extension to their
contract CL2018-25 for High Float Resurfacing for an approximate value of
$3,942,300 (Net HST Rebate);
4. That pending satisfactory performance, the Purchasing Manager in consultation with
the Director of Public Works be given the authority to extend the contract for a
second optional one-year term;
5. That the estimated funds required for the first optional one-year term in the amount
of $3,942,300 (Net HST Rebate) be funded by the Municipality as provided. The
estimated funds required for the second optional one-year term will be included in
future budget accounts. The funding required for the first optional one-year term will
be funded from the following accounts:
Description
Account Number
Amount
Rural Roads Resurfacing (2020)
110-36-330-83680-7401
$42,300
Rural Roads Resurfacing (2021)
110-36-330-83680-7401
$3,900,000
6. That all interested parties listed in Report FSD-012-21 and any delegations be
advised of Council's decision.
Municipality of Clarington
Report FSD-012-21
Report Overview
Page 2
To request authorization from Council to award up to two additional optional one-year terms
of contract CL2018-25 for High Float Resurfacing with Miller Paving Limited.
1. Background
1.1 In 2018, the Chief Administrative Officer approved the award of the first three years of
contract CL2018-25 for High Float Resurfacing to Miller Paving Limited in accordance
with the Summer Recess Procedure (Purchasing By -Law 2015-022 S.73). See link to
Report PS-009-18 which was included in Report COD-028-18 Contract Awards During
Council Recess.
1.2 The contract was for an initial three-year term from 2018 to 2020 and had the option of
extending up to two additional one-year terms in 2021 and 2022.
1.3 In view of Summer Council Recess, the contract was approved for the initial three-year
term with the Municipality retaining the option to extend the contract for up to two
additional one-year terms pending Council approval.
2. Analysis
2.1 This contract extension falls within the 2021 high float resurfacing budget.
2.2 Miller Paving Limited's pricing and performance has been satisfactory under this
contract for the past three years.
3. Financial
3.1 The estimated funding for the two optional additional one-year terms is $7,442,300 (Net
HST Rebate). The funding required for the first optional one-year term is $3,942,300
(Net HST Rebate). The work will be funded from the 2021 approved budget allocation
as provided, and unexpended capital funds from the 2020 budget. The estimated
funding required for the second optional one-year term will be included in future budget
accounts. The funding required for the first optional one-year term will be funded from
the following accounts:
Description
Account Number
Amount
Rural Roads Resurfacing (2020)
110-36-330-83680-7401
$42,300
Rural Roads Resurfacing (2021)
110-36-330-83680-7401
$3,900,000
Municipality of Clarington
Report FSD-012-21
Page 3
3.2 Pricing submitted for High Float Resurfacing remained firm for the first three contract
years. For the two additional optional years, the unit prices will be adjusted at the time
of contract start by the annual percentage change in the most recent issuance of the
Consumer Price Index (CPI), All Items, Ontario as published by Statistics Canada and
the pricing will remain firm for the contract year.
3.3 At time of approval in 2018, the total estimated contract value for the first three contract
years was $6,690,000 (Net HST Rebate). The annual budget for rural roads resurfacing
increased from the 2018 amount in 2019 and 2020, and in 2019, this contract was one
of the approved projects for the use of additional one-time Federal Gas Tax funding.
See link to Report FND-020-19 regarding the additional Federal Gas Tax funding. With
the additional funding, the approximate three-year contract value is $8,973,852 (Net
HST Rebate).
3.4 The total estimated contract value for the potential five-year contract is $16,416,152
(Net HST Rebate).
4. Concurrence
This report has been reviewed by the Director of Public Works who concurs with the
recommendations.
5. Conclusion
It is respectfully recommended that approval be granted to extend contract CL2018-25
High Float Resurfacing for up to two additional optional one-year terms with Miller
Paving Limited.
Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 ext. 2209 or
dferguson@clarington.net.
Attachments:
Not applicable.
Interested Parties:
List of Interested Parties available from Department.