Finance & Administrative Committee
	TO:	Mayor and Members of Council
	FROM:	Paul Ingham, General Manager, Operations
	PREPARED BY:	Bob Walter, Manager, Road Maintenance Claire Graham, Senior Buyer
	DATE OF MEETING:	2004-Jun-28
	SUBJECT:	Tender Award - 074-T-04 Pavement Markings

RECOMMENDATION:

THAT the report titled “Tender Award – Pavement Markings” be received;

AND THAT tender 074-T-04 Pavement Markings be awarded to the lowest acceptable bidder, Guild Electric Limited. in their unit prices (Appendix A) totalling an estimated $501,624.12 inclusive of 7% GST ($468,807.60 exclusive of GST) for a period of three years effective July 1, 2004

AND THAT the expenditure for 2004, estimated at $167,208.04 inclusive of 7% GST ($156,269.20 exclusive of GST) be provided from the Operations Departments Operating Account # 700 505 5307.

AND THAT the balance of funds in the estimated amount of $84,613.80 will be monitored and used as required in accordance with the Expenditure Control Policy and Purchasing By-law.

AND THAT the following 2005 –2006 estimated costs (exclusive of GST) be provided for within the respective years’ budget submission for the Operations Department:

· 2005 $156,269.20

· 2006 $156,269.20

AND FURTHER THAT the 2005 and 2006 budgets/purchase orders will be adjusted for growth (increase in kilometers of roadway requiring pavement markings) based on the approved budget for that year.

PURPOSE:

The purpose of this report is to award the contract for Pavement Markings, Tender 074-T-04.

BACKGROUND:

Provincial legislation provides that pavement markings may be placed by the road authority having jurisdiction. Pavement markings and delineation serve an advisory or warning function, and complement other traffic control devices. They provide drivers with a preview of upcoming changes in the roadway, especially at night. Good markings and delineation generally results in better driver performance and greater driver comfort.

The Operations Department applies pavement markings once in the summer followed with a second application in the fall to areas where traffic volumes are higher and the markings may become less visible. The second application provides additional visibility to the driver through the winter months.

DISCUSSION:

All bids were issued in accordance with the purchasing by-law 143-2000. Staff has reviewed the bid documents and is satisfied that all terms, conditions, bid prices and specifications comply with the Town’s requirements.

Advertised, place and date	Electronic Network (ETN)
Bids Closed on	May 31, 2004
Number picking up bid documents	4
Number responding to bid	3

SUMMARY OF BID

Contractor	Total Price (Inclusive of 7% GST)	Total Price (Exclusive of GST)	Three Year Contract Award (Exclusive of GST)
Guild Electric	$167,208.04	$156,269.20	$468,807.68
Almon	$167,669.00	$156,700.00	$470,100.00
KDN	$191,940.88	$179,384.00	$538,152.00

The award of this tender is being recommended to the lowest acceptable bidder Guild Electric. Staff is confident that Guild Electric will provide satisfactory service.

FINANCIAL CONSIDERATIONS:

It is recommended that tender 074-T-04 Pavement Markings be awarded to the lowest acceptable bidder, Guild Electric Limited. in their unit prices (Appendix A) totalling an estimated $501,624.12 inclusive of 7% GST ($468,807.60 exclusive of GST) for a period of three years effective July 1, 2004.

Funds for the expenditure for 2004, estimated at $167,208.04 inclusive of 7% GST ($156,269.20 exclusive of GST) will be provided from the Operations Departments Operating Account # 700 505 5307. Compared to the previous contract, the unit prices, in most cases, have decreased. As a result, there is a projected favourable variance in the pavement marking account (700 505 5307) as shown on the next page.

Account Number	Budget	Spent to Date	Budget Available	2004 Expenditures	Balance Remaining
700 505 5307	$240,883.00	$ -	$ 240,883.00	$ 156,269.20	$ 84,613.80

After the award, the balance of funds of $84,613.80 is projected to be reduced to approximately $54,000 by year-end due to planned installation of reflective devices ("cat eyes") for road realignment & other activities. The use of the remaining balance will be monitored and used as required in accordance with the Expenditure Control Policy and Purchasing By-law. The anticipated savings from the award of this contract may be used to offset 2004 & future (2005 & 2006) Winter Maintenance expenditures.

The 2005 – 2006 estimated costs (exclusive of GST) will be provided for within the respective years’ budget submission for the Operations Department:

· 2005 $167,208.04

· 2006 $167,208.04

The 2005 and 2006 operating budgets will be adjusted for growth (increase in kilometers of roadway) based on the approved budget for that year.

Attachment: Appendix A

APPROVED BY:

Paul Ingham	Jim Sales
General Manager, Operations	Commissioner, Community and Fire Services
Peter Loukes, P. Eng.
Director, Operations and Asset Management

Q:\Finance and Administration\Finance\Purchasing\2004 File Management\Contract Management\074-T-04 Pavement Markings\074-T-04 Award Report.doc