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HomeMy WebLinkAboutFCS-13-051 - T13-027 EAB Chemical InjectionREPORT TO: Staff Report Finance and Corporate Services Department DATE OF MEETING: SUBMITTED BY: PREPARED BY: WARD(S) INVOLVED: DATE OF REPORT: REPORT NO.: SUBJECT: RECOMMENDATION: Committee of the Whole 2012 -04 -15 Larry Gordon, Director of Supply Services, 2214 Ryan Scott, Buyer, 7216 1 -10 2012 -03 -28 FCS -13 -051 T13 -027 — EAB Chemical Injection wvmkitrhener ra That Tender T13 -027 — EAB Chemical Injection, be awarded to Davey Tree Expert Co. of Canada, Limited, Ancaster, Ontario, at their tendered price of $135,494.65, plus H.S.T. of $17,614.30, for a total of $153,108.95. BACKGROUND: In 2010, emerald ash borer (eab) an introduced tree pest was found in south Kitchener. Today, eab can be found across the city, and in five years it is projected that 80% of the city's ash tree population will be dead. As part of the city's eab strategy, and approved capital funding, the City will chemically inject about 750 healthy ash trees (greater than 30 cm in diameter) along city streets and active parkland this year. Injected trees are protected for two years, and will need to be re- injected every two years. The use of chemical injections to protect large healthy ash trees from eab is recognized as a cost effective tool that allows municipalities to better manage their removal costs, while at the same time preserving a part of the ash tree canopy which is currently providing important social, environmental and economic benefits to the community. REPORT: The tender was advertised publicly on the City of Kitchener website and on the Ontario Public Buyers Electronic Tendering Information System website. Documents were downloaded by sixteen (16) interested parties and by the closing date of Thursday March 21, 2013, three (3) tenders had been received. The following tenders were received: Davey Tree Expert Co. of Canada, Limited Ancaster ON Greenlawn Ltd. o/a Trugreen Mississauga ON Bid Price $153,108.95 $158,047.90 Iii) -1 Pinnacle Tree & Shrub Waterloo ON $189,964.87 The tender was reviewed by D. Schmitt, Environmental and Urban Forestry Project Manager, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Theme: Financial Management Strategic Direction: Ensure responsible use of public funds within a supportive policy framework. The City of Kitchener's purchasing policies and practices ensure openness, fairness and transparency in the procurement of goods and services. FINANCIAL IMPLICATIONS: The net cost for this tender (A), is fair and reasonable for a project of this scope and the upset limit is within the budget allowance (B) provided within the budget. Funding for this project is included within the approved capital budget. The estimated surplus (D) will remain within the account to fund future phases of the project. Financial Summary for Tender T13 -027 Total EAB budget in 10 year forecast 2013 Approved Budget Estimated Cost Tender T13 -027 costs, including HST less: HST rebate on tender Net Cost Being Awarded Projected Costs Estimated Cost 4,620,000.00 670,000.00 153,108.95 (15,229.60) 137, 879.35 A 137, 879.35 C Budget for this Phase of Work 184,608.00 B Estimated Surplus /(Deficit) (B - C) 46,728.65 D COMMUNITY ENGAGEMENT: Not applicable ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services 1 ii) - 2