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HomeMy WebLinkAboutFSD-044-21Clarington 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: September 27, 2021 Report Number: FSD-044-21 Submitted By: Trevor Pinn, Director of Financial Services/Treasurer Reviewed By: Andrew C. Allison, CAO Resolution#: GG-469-21, C-329-21, C-332-21, C-333-21, C-335-21 File Number: CL2021-24 By-law Number: Report Subject: Snow Clearing Services Recommendations: 1. That Report FSD-044-21 be received; 2. That GWS Landscaping Inc. having met all terms, conditions and specifications of CL2021-24 be awarded the contract for an initial three-year term for Snow Clearing Services for Municipal Facilities, Parking Lots, Sidewalks/Walkways, Crosswalks, Laneways, Trails/Pathways and Boulevard Snow Removal, throughout Courtice, Bowmanville, Newcastle & District Rural Areas; 3. That the funds required for the first -year term in the amount of $1,003,711.59 (Net HST Rebate) be drawn from the respective operating budgets; 4. That the Purchasing Manager in consultation with the Director of Public Works be authorized to extend the contract for up to two additional one-year terms pending satisfactory service, available funds, and subject to yearly rate increase based on the Consumer Price Index, All Items, Ontario, most recent issue; and 5. That all interested parties listed in Report FSD-044-21 and any delegations be advised of Council's decision. Municipality of Clarington Report FSD-044-21 Report Overview To request authorization from Council to award CL2021-24 Snow Clearing Services as required by the Municipality. 1. Background Page 2 1.1 Tender specifications for the provision of snow clearing services as required by the Municipality were prepared by the Public Works Department and provided to the Purchasing Services Division. The scope of work included additional trail and pathway clearing as requested by residents and approved by Council as well as reinstating the scope of work that was removed for the 2020-2021 winter season contract extension. 1.2 Tender CL2021-24 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. 2. Analysis 2.1 Fourteen companies downloaded the tender document. 2.2 The tender closed July 30, 2021. 2.3 Three bids were received in response to the tender call. 2.4 Of the eleven companies that downloaded the tender document but chose not to submit pricing: • Two companies do not provide this service; • One company advised that they did not have the resources to provide this service; • One company was a construction association; and • Seven companies did not respond to our request for information. 2.5 The bids were reviewed and tabulated by the Purchasing Services Division (see Attachment 1) and all submissions were deemed compliant. The results were forwarded to the Public Works Department for their review and consideration. Municipality of Clarington Page 3 Report FSD-044-21 2.6 After review and analysis by the Public Works Department and the Purchasing Services Division, it was mutually agreed that the low, compliant bidder, GWS Landscaping Inc. be recommended for the award of tender CL2021-24. 2.7 GWS Landscaping Inc. has satisfactorily supplied services to the Municipality of Clarington in the past and references did not need to be checked. 3. Financial 3.1 The total funds required for the first -year term in the amount of $1,003,711.59 (Net HST Rebate) exceeds the approved budget allocation and will require additional funding by the Municipality to be drawn from the respective operating budgets. Actual cost will vary depending on the types and number of call outs required throughout the winter season. 3.2 The cost escalation incurred with this award can likely be attributed to current market conditions and various issues associated with the COVID-19 pandemic. These effects include the very high cost of insurance, workers compensation, limited availability of temporary or part-time labour, reduced inventories of equipment and higher costs associated with machine and vehicle purchases. As with other contracts of this nature Clarington's geographic area also results in a smaller number of qualified bidders and reduced competition. Similar to the recent investigation into the contracting out of Road Snow Clearing, Public Works staff will endeavor to complete a future business case to determine if any financial or service level improvements can be achieved by bringing this legislated service in-house. 3.3 During the preparation of the updated contract specifications, it was identified that approximately 260 locations were included in the previous contract where snow clearing services should not be provided in accordance with by-law conditions. These locations predominantly include sidewalks that are fronting, adjacent or behind residential and commercial properties. The locations do not qualify for the senior's snow removal program and are not part of the separate contract for the service. To improve consistency and equality in the delivery of services for all Clarington resident's staff of the Public Works Department will further evaluate each of the identified locations and where necessary properly communicate with the residents or owners respecting the termination of services. By removing these quantities from the current contract award, significant operational savings have been recognized. 3.4 The tender document also includes the re -introduction of contracted provisions to clear and remove snow from the rear laneways located within the Brookhill Neighbourhood. Given that our previous contractors could not provide this level of service temporary staff needed to be hired for the past winter season at a cost of approximately $60,000 plus equipment to suitably perform the work. The contracted unit prices that have been Municipality of Clarington Report FSD-044-21 Page 4 submitted for the service will result in considerable savings when compared to in-house operations. 3.5 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 GWS Landscaping Inc. being the lowest compliant bidder be awarded the contract for Snow Clearing Services as required throughout the Municipality of Clarington, per the terms, specifications and conditions of Tender CL2021-24. Staff Contact: David Ferguson, Purchasing Manager, (905) 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-044-21 Page 5 Attachment 1 to Report FSD-044-21 Municipality of Clarington Summary of Bid Results Tender CL2021-24 Snow Removal Services Year One of a Potential Five - Bidder Year Total Bid (Net HST Rebate) GWS Landscaping Inc. $1,003,711.59 * Forest Ridge Landscaping 1,071,760.91 BJ Flint and Sons 1,739,397.93 * Due to the reduced availability of equipment in the current supply chain, Forest Ridge Landscaping submitted a request to withdraw their submission as they are unable to secure the additional equipment required to complete the contract in its entirety.