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Home My WebLink AboutFSD-018-21Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: March 29, 2021 Report Number: FSD-018-21 Submitted By: Trevor Pinn, Director of Financial Services/Treasurer Reviewed By: Andrew C. Allison, CAO Resolution#: GG-270-21, C-140-21 File Number: CL2021-5 By-law Number: Report Subject: Grass Cutting and Median Maintenance Services Recommendations: 1. That Report FSD-018-21 be received; 2. That Howe's Your Yard with an estimated annual bid amount of $537,700 (Net HST Rebate) being the lowest compliant bidder meeting all terms, conditions and specifications of tender CL2021-5 be awarded the contract for an initial three-year term for Grass Cutting and Median Maintenance Services, as required by the Public Works Department; 3. That pending satisfactory performance, the Purchasing Manager, in consultation with the Director of Public Works be given the authority to extend the contract for this service for up to two additional one-year terms; 4. That the estimated funds required for the first -year term in the amount of $537,700 (Net HST Rebate) be funded by the Municipality as provided. The funds required for the second -year term and the third -year term in the estimated amount of $1,075,400 (Net HST Rebate) will be included in future budget accounts. The funding required for the initial one-year term will be funded from the following accounts: Description Account Number Amount Parks Maintenance — Contract — Grass Cutting 100-36-325-10115-7155 $537,700 5. That all interested parties listed in Report FSD-018-21 and any delegations be advised of Council's decision. Municipality of Clarington Report FSD-018-21 Report Overview To request authorization from Council to award CL2021-5 Grass Cutting and Median Maintenance Services. 1. Background Page 2 1.1 Tender specifications for Grass Cutting and Median Maintenance Services were prepared by the Public Works Department and provided to the Purchasing Services Division. 1.2 The tender was divided into two separate sections, Part A: Grass Cutting and Part B: Median Maintenance Services. Bidders had the option of bidding on one or both sections with the award going to the lowest compliant bidder of each section. 1.3 Tender CL2021-5 was issued by the Purchasing Services Division and advertised electronically on the Municipality's website. Notification of the availability of the document was also posted on the Ontario Public Buyer's Association website. 1.4 Twenty-two plan takers downloaded the tender document. 2. Analysis 2.1 The tender closed on February 19, 2021. 2.2 Five bids were received in response to the tender call. 2.3 Of the seventeen companies who downloaded the tender document but chose not to submit pricing: • Two companies were unable to quote competitively; • Two companies were located too far away to bid competitively; • One company preferred digital bidding; • One company was a Construction Association; • One company was newly formed and unable to obtain required financing; • One company cannot meet delivery/completion requirements; • One company cannot handle due to present workload; and • Eight companies did not respond to our request for information. Municipality of Clarington Report FSD-018-21 Page 3 2.4 The bids were reviewed and tabulated by the Purchasing Service Division (see Attachment 1) and one bid was deemed non -compliant. The results were forwarded to the Public Works Department for their review and consideration. 2.5 All bids received exceeded the 2021 allotted budget amount. The lowest bid for both Part A: Grass Cutting and Part B: Median Maintenance Services was from Howe's Your Yard Inc. 2.6 After review and analysis by the Public Works Department and the Purchasing Services Division, it was mutually agreed that non -priority items could be removed from the scope of work to bring the cost within budget. In keeping with the terms and conditions of the tender document, the Purchasing Services Division in consultation with the Public Works Department negotiated scope and price reductions with Howe's Your Yard Inc. Some areas where cost savings were found are: • Removing spring park cleanups from Part A: Grass Cutting and adding it as a provisional as -needed item. Removing weekly watering, fertilizing and weeding from Part B: Median Maintenance Services and adding it a provisional as -needed item. • Removing fall mulch requirements from Part B: Median Maintenance Services. 2.7 Howe's Your Yard Inc.'s original bid price of $587,695.81 (Net HST Rebate) was reduced by $49,956.87 (Net HST Rebate) for a new overall bid price of $537,738.94 (Net HST Rebate). There was also funds from underbudget amounts in other Park accounts or the Tax Rate Stabilization Reserve Fund in the amount of $85,300 (Net HST Rebate) to cover the shortfall. 2.8 After further review and analysis by the Public Works Departments and the Purchasing Services Division, it was mutually agreed that the low compliant bidder, Howe's Your Yard Inc. be recommended for award of contract CL2021-5 Grass Cutting and Median Maintenance Services. 2.9 Howe's Your Yard Inc. has successfully completed work for the Municipality in the past. 3. Financial 3.1 The annual estimated funding required for this work is $537,700 (Net HST Rebate). The approved budget for this work is $452,400 (Net HST Rebate) thereby leaving a shortfall of $85,300 (Net HST Rebate) to complete the work. The funds from underbudget amounts in other Park accounts or the Tax Rate Stabilization Reserve Fund are requested to be applied to this work to cover the shortfall. If approved, the funds required for the first contract year will be expensed by the Municipality as provided. The funds required for the second -year term and the third -year term in the estimated amount of $1,075,400 (Net HST Rebate) will be included in future budget accounts. Municipality of Clarington Report FSD-018-21 Page 4 Description Account Number Amount Parks Maintenance — Contract — Grass Cutting 100-36-325-10115-7155 $537,700 3.2 Pricing submitted for Grass Cutting and Median Maintenance Services is to remain firm for the first year of the contract. Should the contract be extended for additional years, the unit prices would be adjusted on the anniversary date of the contract award 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 The total estimated contract is for three years plus two optional additional years and is approximately $2,688,500 (Net HST Rebate). 3.4 Queries with respect to the department needs should be referred to the Director of Public Works. 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 Howe's Your Yard Inc. being the lowest compliant bidder be awarded the contract for Grass Cutting and Median Maintenance Services as per the terms and conditions of Tender CL2021-5. Staff Contact: David Ferguson, Purchasing Manager, 906-623-3379 Ext 2209 or dferguson@clarington.net. Attachments: Attachment 1 — Summary of Bid Results Interested Parties: List of Interested Parties available from Department. Municipality of Clarington Report FSD-018-21 Page 5 Attachment 1 to Report FSD-018-21 Municipality of Clarington Summary of Bid Results Tender CL2021-5 Grass Cutting and Median Maintenance Services Bidder One -Year Total Bid (Net HST Rebate) Potential Five -Year Total Bid (Net HST Rebate) BJ Flint and Sons* (Part A) $202,647.51 $1,013,237.55 Pro Lawn Landscaping Ltd. (Part B) $449,394.02 $2,246,970.09 GWS Landscaping Inc. (Part A) $489,444.13 $2,447,220.64 Howe's Your Yard (Part A and Part B) $537,738.94 $2,688,694.70 Forest Ridge Landscaping* (Part A and Part B) $1,304,629.15 $6,523,145.75 Notes: CL2021-5 was divided into Part A: Grass Cutting and Part B: Median Maintenance Services. Bidders could bid on one or both sections. Bidders marked with * were deemed non -compliant.