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Home My WebLink AboutTR-077-00 -,- ON: TR-77-00 , THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON '" REPORT Date: General Purpose and Administration Committee File # rJ g i/':- Monday December 11,2000 Res. #(,PA- L{1.:). ~() 0 Meeting: Report #: TR-77-00 FILE#: By-law # Subject: TENDER CL2000-28, SNOW CLEARING AND WINTER MAINTENANCE OF SIDEWALKS AND PARKING LOTS RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-77-00 be received; 2. THAT D & F Snow Removal, Bowmanville, Ontario, with a total bid price per call-out in the amount of $6,437.50 (plus G.S.T.), Option 1, be awarded the contract to provide snow clearing and winter maintenance as required by the Municipality of Clarington for the 2000/01, 2001/02 and 2002/03 winter seasons; and 3. THAT D & F Snow Removal, Bowmanville, Ontario with a total bid price per call-out, or on an "as required basis" in the amount of $31 ,750.00 (plus G.S.T.), Option 2, be awarded the contract to provide snow clearing and winter maintenance required by the Municipality of Clarington for the 2000/01, 2001/02 and 2002/03 winter seasons; and 4. THAT the funds expended be drawn from the 2000,2001, 2002 and 2003 winter maintenance budgets, for the respective departments; FORTHWITH BACKGROUND AND COMMENT: Tenders were publicly advertised and called for the snow clearing and winter maintenance of sidewalks and parking lots within the Municipality of Clarington as required by the Department of Public Works. Also included in the contract is the Senior Citizens and Physically Disabled sidewalk snow clearing, sand/salting and driveway windrow removal. Note, the terms and conditions of the tender specified that the Senior Citizen Program is provided at the direction of Council, therefore there is no financial penalty incurred should Council decide to discontinue the program. 819 . REPORT NO.: TR-77-00 PAGE 2 Although the contract includes the requirements of Public Works, (Operations and Property Division), Fire and Community Services, the call-out and monitoring is the responsibility of the Department of Public Works. In order to ensure that all potential bidders understood the tender specifications and general conditions, a pre-tender meeting was held on Monday, October 23, 2000. The general conditions of the tender stipulated that all contractors bidding on the tender must attend the meeting and that failure to do so would disqualify their bid submission. The tender this year, provided for 3 options as follows: Option 1 - Same as in previous years, includes Municipal sidewalks, parking lots, walkways, school crossings and the Senior Citizens Program. Option 2 - Includes sidewalks with limited or no boulevard between the sidewalk and road, as per Report WD-50-99. Option 3 - Includes all sidewalks in the Municipality. This contract will commence on December 11, 2000 and will expire on April 1, 2003. The following contractors attended the pre-tender meeting: 1) G.W.S. Landscaping, Bowmanville; 2) D & F Landscaping, Bowmanville; 3) Tom's Landscaping Maintenance, Oshawa, Ontario, and 4) Pro Lawn Landscaping, Orono, Ontario Subsequentl ,tenders were received and tabulated as follows: D & F Snow Removal Bowmanville, ON Tom's Landscaping $22,865.69** $480,440.00** *Bid amended - error in addition **Bid amended - error in extension OPTION 3 $8,063.26 Additional to this is, Parking lots, walkways and school crossings $58,900.20 Due to the number of locations and sections within this contract, as well as the additions and deletions made each year, it is difficult to state an overall price increase or decrease. However, upon review of the unit prices for snow clearing, the price bid represents an increase of approximately 128 % to +500 %. This is a change from the previous contract where the competition from potential suppliers was such that we 820 .~ REPORT NO.: TR-77-00 PAGE 3 Due to the number of locations and sections within this contract, as well as the additions and deletions made each year, it is difficult to state an overall price increase or decrease. However, upon review of the unit prices for snow clearing, the price bid represents an increase of approximately 128 % to +500 %. This is a change from the previous contract where the competition from potential suppliers was such that we experienced an overall 0% increase/decrease. The reasons for the high price increase, lack of competition and large difference between the two bids are as follows: (1) The contract is too large for some of the smaller local companies. (2) The equipment investment is substantial. (3) Previous suppliers of this service are more familiar with the associated risks, costs, etc. (4) One of the previous service providers for The Municipality of Clarington of this contract declined to bid, thereby reducing the competition. (5) Increase in price of fuel. In order to address these concerns for future contracts, staff will be investigating and taking appropriate action to make the Snow Removal Contract more attractive for potential bidders. For example: 1) Allow bidders to bid on sections rather than entire contract. 2) Tender in late spring or early summer. The actual remittance for snow removal services over the 1999/2000 season, totals approximately $100,000.00. Based on the substantial price increases experienced this year, the 2001 budget implications are as follows: Option 1 - $6,437.50 x 40 call-outs (estimated) = $257,500.00 (Total cost. All Departments.) Option 2 - $31,750.00 x 3 call-outs (estimated) = $95,250.00 (Total cost additional work, Public Works only.) Option 3 - $11,080.00 ($8,063.26 + cost of sidewalks, parking lots, walkways, school crossings) x 40 call-outs (estimated) = $472,000.00 Note, the past two winter seasons the number of call-outs has been less than 30 per season. 821 .. REPORT NO.: TR-77-00 PAGE 4 The option of including all sidewalks as part of this contract, (Option 3), is provided for consideration. However, based on the high prices submitted, it is Staff's recommendation that this alternative not be considered at this time. The Public Works Department will remove snow at areas without adequate snow storage space between the street and sidewalk, but only after all streets have been maintained and after snow is removed for the three (3) Business Improvement Areas. The snow removal for inadequate boulevards is based on a list compiled and continually updated by Public Works. Option 2 was considered in the event of an emergency and for a large quantity of snow accumulated within an unusually short period of time. In this instance, Public Works may call out the contractor to assist with snow removal from boulevard areas. The costs for Option 2 are identified in the current Winter Control Budget of Public Works. After further review and analysis of the tenders by both the Public Works Department and Purchasing, it was mutually agreed that D & F Snow Removal, Bowmanville, Ontario, be recommended for the contract to provide snow clearing and winter maintenance; Option I. The Treasurer has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc., should be referred to the Director of Public Works. The subject firm has worked satisfactorily for the Municipality of Clarington during the previous three (3) year contract. Reviewed by, arie Marano, H.BSc., AMCT., Treasurer d~-~ Franklin Wu, M.C.I.P.,R.P.P., Chief Administrative Officer ~1/r-L/ Stephen A. Vokes, P. Eng. Director of Public Works MM*LAB*eo*km 822