Report to: General Committee Date Report Authored: September 22, 2010
SUBJECT: 029-T-07 Contract Extension for Routine & Emergency Sewer and Watermain Repairs
PREPARED BY: Eddy Wu, ext. 2737
Patti Malone, ext. 2239
RECOMMENDATION:
1) THAT the report entitled “029-T-07 Contract Extension for Routine & Emergency Sewer and Watermain Repairs” be received;
2) AND THAT contract 029-T-07 for Routine & Emergency Sewer and Watermain Repairs be extended to Finch Paving (1993) Inc. for an additional one (1) year (January 1, 2011 to December 31, 2011) at the same 2010 itemized pricing in the estimated contractual value totalling $860,714.00 inclusive of HST;
3) AND THAT the tendering process be waived in accordance with Purchasing By-Law 2004-341, Part II, Section 7 (1) (c) which states “when the extension of an existing contract would prove more cost-effective or beneficial”;
4) AND THAT various 2011 operating budget accounts allocated for these contracted services be the same as the 2010 budget amount and as listed in Table 1 under Financial Considerations in the amount of $860,714.00 inclusive of HST;
5)
And THAT the 2011 budget allocated for these contracted
services is the same as the 2010 budget amount;
6) AND THAT the remaining balance be applied to other waterworks projects;
7) AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
Not applicable
PURPOSE:
The purpose of this report is obtain approval to extend contract 029-T-07 “Routine & Emergency Sewer and Watermain Repairs” for an additional one (1) year at the same 2010 itemized pricing.
BACKGROUND:
The Routine and
Emergency Sewer and Watermain Repairs contract is an essential service for the
immediate repair of watermain breaks to restore the system to service for fire
and domestic needs. It also includes emergency sewer repairs to mitigate sewer
backups into homes, properties and the environment.
The contract requires
the contractor to be on call to the Town of
OPTIONS/ DISCUSSION:
In June 2007, Council approved the award of contract 029-T-07 to the lowest priced bidder, Finch Paving (1993) Inc. (Finch Paving) for a period of 3 ½ years (July 1, 2007 – December 31, 2010). However, the bid document (029-T-07) and bid submissions included a 4 year contractual term (July 1, 2007 - June 30, 2011).
Staff is seeking approval to award the contract for the 6 month period (Jan 1, 2011 – June 30, 2011) as per original bid documents and submission with a further 6 month extension (July 1, 2011 – December 31, 2011) under the Town’s Purchasing By-law 2004-341, Part II, Section 7 (1) (c).
The additional 6 month extension (July 1, 2011 – December 31, 2011) is beyond the original contract term and provides staff the ability to award a new contract in 2012 by fiscal year (Jan. – Dec.). Additionally, under contract 029-T-07, Finch Paving’s 4 year contractual pricing was 16% lower than the 2nd lowest priced bidder and this extension will provide the Town the ability to maintain the current 2010 itemized pricing for 1 additional year.
Also, during the term of contract 029-T-07, Finch Paving as per the bid submission had an annual increase of 3% or approximately $40,000 per year, with this extension in 2011, Finch Paving will forgo this annual increase (3%). In addition, staff have also received confirmation that Finch Paving will provide a one-time rebate to the Town of $26,000 to offset early escalated prices during this contract (2007-2010).
Staff believe by extending this contract for the full 1 year will minimize any increase for this portion of work in 2011. Finch Paving have been providing this service since 1998 and has been the low bidder on all bid calls since this date. In 2007, they were 16% lower than the 2nd lowest bidder.
FINANCIAL CONSIDERATIONS AND TEMPLATE:
The financial considerations for this report are outlined in the following table. The 2011 budget is pending operating budget approval.
|
2011 CONTRACTED SERVICES’ ACCOUNTS ALLOCATION |
|||||
|
Year |
Account
Number |
Account
Name |
Budget
Amount |
Budget
Allocated to Routine & Emergency Repairs |
Budget
Remaining |
|
WATER |
|||||
|
2011 |
760-100-5300 |
W1BRK Construction |
$341,978.00 |
$262,037.00 |
$79,941.00 |
|
2011 |
760-111-5300 |
W1TDR Construction |
$195,000.00 |
$124,685.00 |
$70,315.00 |
|
2011 |
760-112-5300 |
W1TDI Construction |
$32,897.00 |
$26,933.00 |
$5,964.00 |
|
2011 |
760-113-5300 |
W1TDV Construction |
$100,000.00 |
$48,000.00 |
$52,000.00 |
|
2011 |
760-114-5300 |
W1TDC Construction |
$64,966.00 |
$66,915.00 |
-$1,949.00 |
|
2011 |
760-115-5300 |
W1TDH Construction |
$139,885.00 |
$130,082.00 |
$9,803.00 |
|
|
|
Sub-total |
$874,726.00 |
$658,652.00 |
$216,074.00 |
|
SEWER |
|||||
|
2011 |
760-500-5300 |
S1BRK Construction |
$44,535.00 |
$40,871.00 |
$3,664.00 |
|
2011 |
760-510-5300 |
S1TDM Construction |
$214,135.00 |
$20,559.00 |
$193,576.00 |
|
2011 |
760-511-5300 |
S1TDR Construction |
$100,078.00 |
$88,580.00 |
$11,498.00 |
|
2011 |
760-512-5300 |
S1TDI Construction |
$32,486.00 |
$28,961.00 |
$3,525.00 |
|
2011 |
760-560-5300 |
S1MAN Construction |
$22,418.00 |
$23,091.00 |
-$673.00 |
|
|
|
Sub-total |
$413,652.00 |
$202,062.00 |
$211,590.00 |
|
|
|
TOTAL |
$1,288,378.00 |
$860,714.00 |
$427,664.00 |
Note: The 2011 budget allocated for these contracted services is the same as the 2010 budget amount.
HUMAN RESOURCES CONSIDERATIONS
Not applicable
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not applicable
BUSINESS UNITS CONSULTED AND AFFECTED:
Not applicable
ATTACHMENTS:
Not applicable
RECOMMENDED
BY:
