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HomeMy WebLinkAboutFCS-14-087 - T14-044 EAB Chemical InjectionStaff Report rTC.�r R finance and Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2014 -05 -26 SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200 ext. 7214 PREPARED BY: Ryan Scott, Buyer, 519 - 741 -2200 ext.7216 WARD(S) INVOLVED: All DATE OF REPORT: 2014 -05 -08 REPORT NO.: FCS -14 -087 SUBJECT: T14 -044 — EAB Chemical Injection RECOMMENDATION: That Tender T14 -044 — EAB Chemical Injection, be awarded to Greenlawn Ltd. o/a Trugreen, Cambridge, Ontario, at their tendered price of $96,682.56, plus H.S.T. of $12,568.73, for a total of $109,251.29, with an option to renew for two (2) additional injection seasons. 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 623 healthy ash trees (greater than 28 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. The average annual spend over the past two (2) years was $95,836.31. 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 ten (10) interested parties, and by the closing date of Thursday May 5, 2014, four (4) tenders had been received. The following tenders were received: Greenlawn Ltd. o/a Trugreen Davey Tree Expert Co. of Canada, Limited Treescape Tree Care Professionals Ltd. Pinnacle Tree Cambridge ON Ancaster ON Ennismore ON Waterloo ON Bid Price $109,251.29 $114,699.52 $114,699.52 $139,073.17 The tender was reviewed by A. Buitendyk, Urban Forest Technologist, 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 T14 -044 Total EAB budget in 10 year forecast 2014 Approved Budget Estimated Cost Tender T14 -044 costs, including HST less: HST rebate on tender Net Cost Being Awarded Projected Costs Estimated Cost Budget for this Phase of Work Estimated Surplus /(Deficit) (B - C) 4,620,000.00 670,000 00 109,251.29 (10,867.12) 98,384.17 A 98,384.17 C 184,608.00 B 86,223.83 D I.M. - 2 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