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HomeMy WebLinkAboutCSD-11-002 - Waiving of Purchasing Bylaw - Crematorium RetortREPORT TO: Mayor and Members of Council DATE OF MEETING: January 10, 2011 SUBMITTED BY: Keith Baulk, Director of Enterprise, 2393 PREPARED BY: Lorelei Eckel-Braun, Manager of Cemeteries, 2964 WARD(S) INVOLVED: All DATE OF REPORT: December 20, 2010 REPORT NO.: CSD-11-002 SUBJECT: WAIVING OF PURCHASING BYLAW -CREMATORIUM RETORT RECOMMENDATION: That the City's Purchasing Bylaw be waived in regards to maintenance repairs to the crematorium retort unit at Williamsburg Crematorium; and that Commercial Burner Maintenance Limited be awarded the contract to complete the rebuild of the Williamsburg Crematorium retort unit at the quoted price of $29,860.00 + HST. BACKGROUND: As part of the ongoing maintenance of the crematorium retort unit, a complete dismantling and rebuilding of the unit is required at approximately 5 year intervals. The previous rebuild was completed in June 2005. REPORT: In order to ensure the continued successful operation of the crematorium, service work is required on the unit in early 2011. It is a very specialized type of repair work, and in staff's opinion, there is only one qualified company in southern Ontario able to supply this service. We need to ensure that funeral homes and the families that we serve are completely satisfied with the level of cremation service that we provide. Due to the fact that the City has only one cremation unit, it is critical that the unit is repaired on time and in a manner that ensures flawless functionality going forward. There are no local companies and few companies that provide this service to Ontario crematoriums. Commercial Burner was awarded the contract in 2005 when this work was tendered. The only other company that responded to that tender call was a company that had experience only with brick installation and no crematorium work. Commercial Burner has done excellent work and staff has confidence in their ability to provide the service required. In dealing with the other two service providers in the past, there were issues of flawed repairs and a failure to adhere to required timelines. As a result, additional expenses were incurred from ongoing maintenance issues, dissatisfied customers and the loss of business. In this industry, that is unsatisfactory. In addition, there are liability issues that can arise both with customers and with the Ministry of the Environment. Much of this liability is mitigated because Commercial Burner does not use any sub trades. All of the work is completed by their staff who possess the correct gas and electrical licences/certifications. Other municipalities and private companies have agreed that tendering does not pay off in this circumstance. The outcome of choosing another provider who may be a low bidder often costs more because additional funds are spent on following up or correcting unsatisfactory work. It is our opinion that Commercial Burner is the only company that has to competency to provide the long term reliability in this very specialized field. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Part of Efficient and Effective Government foundation incorporates financial management and customer service. By using Commercial Burner, the City is prudent in its management of its finances as additional funds are not used to correct unsatisfactory work. An additional benefit is improved customer service as the cremation unit will encounter less downtime and delays. FINANCIAL IMPLICATIONS: The repair has been allocated within the capital budget for 2011. The total quoted cost is $29,860 plus HST, which represents an increase of $3,260 from 2005. COMMUNITY ENGAGEMENT: Not applicable. ACKNOWLEDGED BY: Jeff Willmer, Deputy CAO Community Services Department