HomeMy WebLinkAboutFCS-13-170 - T13-084 - Snow Blowing Services - Cul de sacsStaff Report
I r finance and Corporate Services Department wvwuukitchenerra
REPORT TO: Committee of the Whole
DATE OF MEETING: 2013 -10 -28
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200
ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519 - 741 -2200 ext. 7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2013 -10 -22
REPORT NO.: FCS -13 -170
SUBJECT: T13 -084 — Snow Blowing Services of Cul de Sac Zones
RECOMMENDATION:
That Tender T13 -084 — Snow Blowing Services of Cul -de -Sac Zones, be awarded as follows:
Conestoga Contracting Group Inc., Elmira, Ontario, Zone 7, at their tendered hourly rate of
$209., plus H.S.T. of $27.17, for a total hourly rate of $236.17, plus standby rate of $1,000. per
month for five (5) months effective annually from November 2013 to March 2014 inclusive;
Forestell Inc., Guelph, Ontario, Zone 4, at their tendered hourly rate of $245., plus H.S.T. of
$31.85, for a total hourly rate of $276.85, plus standby rate of $1,000. per month, for five (5)
months effective annually from November 2013 to March 2014 inclusive;
McLellan Group, Brantford, Ontario, Zone 1, at their tendered hourly rate of $374., plus
H.S.T. of $48.62, for a total hourly rate of $422.62, plus standby rate of $1,000. per month for
five (5) months effective November 2013 to March 2014 inclusive, and Zones 2 and 9, at their
tendered hourly rate of $348., plus H.S.T. of $45.24, for a total hourly rate of $393.24, plus
standby rate of $1,000. per month for five (5) months effective annually from November 2013 to
March 2014 inclusive;
for three (3) years.
BACKGROUND:
The City retains contractor(s) for the provision of snow blowing cul -de -sacs and other roadways
within defined zones during full snow events. There are nine (9) zones each having 50 -60 cul -de-
sacs and based on historical data Operations expects each zone may take up to fourteen (14)
hours to complete, however, the actual time varies depending on the conditions encountered.
In 2011 nine (9) zones were awarded to four contractors. On September 17, 2013, Supply
Services received notice from one of the contractors of their intent to close business, the result
being the need to re- tender five (5) of the nine (9) zones, while maintaining end date alignment
with the 2011 Tender.
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The number of declared full snow events per season is four (4) to five (5), however, the actual is
dependent on snow loading and then called out by the Manager of Maintenance Operations.
The actual spend to service the five (5) zones over the past two (2) years was $117,144.66.
REPORT:
Tenders were advertised publicly on the City of Kitchener website and the Internet through the
Ontario Public Buyers Electronic Tendering Information System. Documents were downloaded
by fourteen (14) interested parties, and by the closing date of Thursday October 17, 2013, four
(4) tenders had been received.
The following tenders were received: Number of Zone(s) Bid Bid Price (Hr Rate)
Conestoga Contracting Group Inc. Elmira ON 1 $236.17
Forestell Inc. Guelph ON 4 $1,107.40
1488573 Ontario Inc., Snowman Kitchener ON 5 $1,186.50
McLellan Group Brantford ON 5 $2,150.39
The low bid received from 1488573 Ontario Inc., Snowman for Zones 1, 2, 4 and 9, does not
meet the specification for the operator to be facing the direction of travel while blowing snow.
The average hourly price for this requirement has increased 16% from the previous contract.
To compensate for increases in fixed costs, the Standby Rate will be increased each season
following season one of the contract by the percentage change in the Consumer Price Index (All
Items) — Ontario (CPI) for the month of July preceding each season from the same month of the
previous year. Rates will not be adjusted for negative CPI.
Additionally, a fuel price index adjustment will be applied monthly to the hourly rate payments.
These adjustments will be made when invoices are paid by the City.
The tender was reviewed by S. Berry, Manager of Maintenance Operations, 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:
Funding will be provided from Winter Maintenance — Snow and Ice Removal Services Operating
Budget.
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COMMUNITY ENGAGEMENT:
Potential vendors are informed of bid opportunities through the public posting of bid documents
as outlined in the City's Purchasing By -Law. Vendors, local media and the general public are
informed of purchasing recommendations to Council through the public reports which are
included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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