HomeMy WebLinkAboutFIN-18-028 - T18-111 Rebuild Salt Conveyor and Preventive Maintenance Programl
Staff Report K u
Financia! Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2018-09-10
SUBMITTED BY: Laurie Stecho, Supervisor of Purchasing, 519-741-2200 ext. 7089
PREPARED BY: Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD (S) INVOLVED: N/A
DATE OF REPORT: 2018-08-28
REPORT NO.: FIN -18-028
SUBJECT: T18-111 Rebuild Salt Conveyor and Preventive Maintenance Program
RECOMMENDATION:
That Tender T18-111 Rebuild Salt Conveyor and Preventive Maintenance Program, be
awarded to Donkers Millwrighting Services, St. George, Ontario, at their tendered price of
$139,190.59, including a five (5) year preventative maintenance program of $15,508., and
contingencies of $5,000., plus H.S.T. of $18,094.78, for a total of $157,285.37.
BACKGROUND:
The salt conveyor is located at the Kitchener Operations Facility (KOF). Since its installation in
October 2010, the salt conveyor has received maintenance to keep it operational, but it has now
come to the end of its useful life and requires a significant overhaul.
This tender is for the complete rebuild of the entire conveyor system including some
modifications for improvement to flow rate and reach, as well as a five (5) year preventive
maintenance program running from from October 1, 2018 to September 30, 2023.
REPORT:
Tenders were advertised publicly on the City of Kitchener website. Documents were downloaded
by five (5) interested parties and by the closing date of Monday August 20, 2018, three (3)
tenders had been received.
The following tenders were received:
Donkers Millwrighting Services St. George ON
Rassaun Services Inc. Simcoe ON
Mitchell Mill Systems Canada Newton ON
Bid Price
$157,285.37*
$170,568.40
$229,448.76
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
The tender was reviewed by C. Cook, Supervisor Operations, who concurs with the above
recommendation.
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:
The net cost for this Tender (A), is fair and reasonable for a project of this scope and the upset
limit is within the funding available (B) for this project. The operating costs are for the 5 -year
preventative maintenance program. Funding for the capital refurbishment and the multi-year
preventative maintenance program is included within the budget. The estimated surplus (D) for
capital costs will remain in the KOF general provision account for other priority items at the facility
and the estimated surplus (D) for operating will be closed out to the tax stabilization reserve
fund.
Estimated Cost
Tender T18-111 costs, including HST
less: HST rebate on tender
Net Cost Being Awarded
Estimated Cost
Budget for this work:
Capital budget
Operating budget
Total Budget:
2018-2023
Capital Operating Total
139, 761.33 17, 524.04 157, 285.37
13,901.92) (1,743.10) (15,645.02
125, 859.41 15, 780.94 141, 640.35 A
125, 859.41 15, 780.94 141, 640.35 C
140, 000.00
140, 000.00
16, 000.00 16, 000.00
140, 000.00 16, 000.00 156, 000.00 B
Estimated Surplus/(Deficit) (B- C) 14,140.59 219.06 14,359.65 D
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department