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HomeMy WebLinkAboutFCS-16-124 - T16-025 Supply and Delivery of Aggregates and Pickup and Disposal of Scrap Product REPORT TO: Committee of the Whole DATE OF MEETING: 2016-08-29 SUBMITTED BY: Michelle Palmer, Director of Supply Services 519-741-2200 ext. 7214 PREPARED BY: Adam Buchholtz, Buyer, 519-741-2200 ext. 7217 WARD(S) INVOLVED: N/A DATE OF REPORT: 2016-08-09 REPORT NO.: FCS-16-124 SUBJECT: T16-025 Supply and Delivery of Aggregates and Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads ___________________________________________________________________________ RECOMMENDATION: That Tender T16-025 Supply and Delivery of Aggregates and Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads be awarded as follows; Supply and delivery of aggregates, Schedule “A”, be awarded to Summit Aggregates KW Inc, Ayr, Ontario, at their tendered price of $150,330., plus H.S.T. of $19,542.90, for a total of $169,872.90; and, Pickup and disposal of scrap asphalt, concrete and mixed loads, Schedule “B”, be awarded to Kieswetter Excavating Inc., St. Clements, Ontario, at their tendered price of $278,400., plus H.S.T. of $36,192., for a total of $314,592. for a one (1) year term, with an option to renew for two (2) additional twelve (12) month terms. BACKGROUND: The City requires the services of company to supply and deliver aggregates and to pick up and dispose of scrap asphalt, concrete and mixed loads from our Kitchener Operations Facility. Aggregates are used for winter road maintenance (sand), trail resurfacing, pipe bedding, watercourse maintenance, road base repairs and sidewalk mud jacking. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1.i. - 1 Pick up, removal and disposal of scrap asphalt, concrete and mixed loads, is generated through normal operational activities, including, sidewalk and curb repairs, road repairs and maintenance activities. This tender is based on fixed unit prices on an estimated representative sampling of aggregates purchased and disposals processed over the previous year. The average annual spend on aggregates over the past two (2) years was $22,352., before taxes. Due to the utilization of new material rather than the storing and processing of scrap material the volume to be purchased is expected to increase from previous years. The cost increase from the planned volume of new material and the cost for disposal will be offset by the cost historically spent on the contracted processing of the scrap material and the operation of Battler yard. The actual spend will depend on the level of activity throughout the term of the contract. 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 five (5) interested parties, and by the closing date of Thursday May 19, 2016, two (2) tenders had been received. The following tenders were received: Bid Price Bid Price Schedule “A” Schedule “B” Summit Aggregates KW Inc. Ayr ON $169,872.90 * No Bid Kieswetter Excavating Inc. St Clements ON No Bid $314,592.00* The price for aggregates in Schedule “A” has increased 15% from the 2015 contract based on comparable items. Schedule “B” pick up and disposal services is a newly outsourced/tendered item as the City is finding it difficult to sell recycled aggregate products. For instance, the City recently attempted to sell 10,000 metric tonnes of 5/8” recycled asphalt product through the tendering process, as well as on a municipal purchasing website. Both of these processes came back with no bids for the product. The tender was reviewed by C. Heise, Interim Manager Roads and Maintenance, C. Cook, Supervisor Roads, M. Kasunic, Supervisor Utilities Operations and A. Buchholtz, Buyer, who concur with the above recommendation. 1.i. - 2 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: Funding will be provided from various operating accounts as required. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: Not applicable ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services 1.i. - 3