HomeMy WebLinkAboutTR-19-89 ^
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TOWN OF NEWCASTLE
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REPORT File -�
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Res. #
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' ��^^'~~` GENERAL PURPOSE 6 ADMINISTRATION MEETING
DATE: February 6, 1989
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REPORT '' ~ ' ~`~- ^^
SUB,JEC^ ^
PRE-BUDGET TENDERING
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
l. That report TB-I9-89 be received; and
2. That approval be given to proceed with the following pre-budget
tendering or purchases as identified by each department:
PROJECT COST FUNDING
(estimated) (estimated)
A) Public Wncko;
l. Ontario St.
reconstruction -King to Liberty 860"000 Levies/subsidy/tax
2. Nash Rd.
reconstruction Windsor VaI.Pl.
to Tcullo Bd. 700,008 Lot levies
3. Street Flusher 100,000 Garbage Eq. Reserve
B) Community Services:
l. Soper Creek Pock.
floodlights/transformer 96,000 Lot levies
2. Bowmauville Rec. Complex. 88,000 Lot levies
floodlights/transformer
3. Park Maintenance.
3/4 ton pick up truck 20'000 Lot levies
TR-19-89 Page 2
4. Bowmanville Rec.Complex
Field Drainage (Catch Basins) 45,000 Lot levies
Folding partitions 55,000 Tax levy
5. Cemeteries
Front Mount Riding Mower 19,000 Tax levy
6. Park Maintenance
Front Mount Riding Mower 19,000 Tax levy
C) Treasury:
1. Administrative Facility.
Workstation components - Treasury 11,168 Lot levies (Admin.)
if if -Clerk 5,585 Lot levies (Admin.)
(purchase - not tendered)
2. Computer Equipment.
printers/P.C.'s 20,000 EDP Reserve-Finance
BACKGROUND & COMMENTS:
The 1989 Budget is tentatively scheduled to be brought to council for
consideration and deliberations in late February - Capital, and late March
to early April - Current.
It is recommended that consideration be given to approval of an early tender
call in advance of the 1989 budget in order to take advantage of possible
savings which might result from the competitive situation that exists in the
road construction industry.
In addition to potential savings, the early tender call results in
performance of work early in the season. This is particularly important
with respect to roads and parks and recreation. With the late passage of
the budgets, the ordering of equipment or tendering of projects is brought
into the second quarter of the year with the work or equipment installation
following that. Often the public are not afforded the benefit of the
current year's projects until that year is nearly complete. Early tender
call would also reduce the volume of year end carry over of incomplete
projects into the next budget year.
There is less disruption to traffic occurring on early tender calls since
the bulk of the work would be complete before the heaviest traffic time of
summer. Likewise there is less general disruption to the public if
equipment is installed before the busy summer months.
The tendering process requires that Council approve the staff recommended
selection, so the final decision in these matters will be by Council resolution.
. . .3
TR-19-89 Page 3
The intention is to bring forward the 1990 budget for staff preparation in
the last quarter of 1989, so that it would be ready for presentation to
Council in January of 1990. This will eliminate the need for early
tender/purchase call on an annual basis.
Attached is a summary from each department to add further to the
justification for approval of an early tender call/purchase.
Public Works Department
The road construction projects total $1,560,000. which represents 37.7 % of
the total proposed road program for 1989 of $4,137,000. The proposed impact
on the tax levy for these particular projects would be approximately $70,000,
which represents 4% of the project cost for early tender.
The street flusher is a new piece of equipment which is needed to meet the
demands of street cleaning on existing roads and new subdivisions. The
estimated cost of a street flusher is $100,000. which represents 12.3% of
the proposed equipment purchases for 1989 of $810,000. If the order for the
equipment is not placed until after the budget is passed, it will not be
received in time to meet the summer demands. If approved, the purchase
would be from the Garbage Equipment Reserve, and therefore would not impact
the current tax levy.
Community Services Department
Community Services requires approval for early purchase of equipment if they
are to be available for use during the peak summer months.
Treasury
Under the classification of the Administrative Improvement, the Treasury
Department and the Clerk's Department both require workstation components,
namely worksurfaces, to complete the rearrangements of the Departments to
accomodate both on the first floor. The delivery time on these units is
from 10-12 weeks. To wait until the budget is passed would result in the
equipment possibly being received in July. The early tender call would just
allow the equipment to be ordered. Because the combined amount is in excess
of $15,000. the purchasing by-law would necessarily be waived on this
purchase.
The computer services equipment that was budgeted for from 1988 Reserve Fund
monies is currently being tendered. In order to take advantage of the volume
discount available and to complete the 1988 EDP requirements staff is suggesting
use of the Computer Equipment - Finance Reserve balance of $20,000 to add to the
$73,000 budgeted for in the 1988 Capital Budget.
Respectfully submitted, Recommended for presentation
to the Committee
a ie A. Marano, wrenc E Kotseff,
Acting Treasurer. Chief m'nistrative Officer.
MAM/pp