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TO: |
Mayor and Members of Council |
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FROM: |
Stan Bertoia, General Manager,
Construction & Utilities |
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PREPARED BY: |
Alan
Laver, Manager, Contracts & Utilities |
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DATE OF MEETING: |
May 3, 2004 |
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SUBJECT: |
Contract Award for Street Light
Maintenance-2004, Markham Hydro |
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RECOMMENDATION:
THAT the
report dated May 3, 2004, entitled “Contract
Award for Street Light Maintenance-2004, Markham Hydro” be received;
THAT
the tendering process be waived in accordance with Purchasing By-Law 143-2000,
Section 14 (1) which states “When any of the following conditions apply, the
Treasurer or designate and the Manager of Purchasing may, in consultation with
the appropriate Director, negotiate a Contract for the supply of goods and
services which shall be submitted to the Chief Administrator Office for final
approval”
(a) When,
in the judgment of the Manager of Purchasing and the appropriate Director,
goods are in short supply due to market conditions;
(b) Where there is only one source of supply for the goods to be
purchased;
(c) When
the extension of an existing contract would prove more cost-effective
or beneficial;
(d) Where a
project is privately funded but is administered by the Town;
(e)
Where the Town is acquiring specialized vehicles or equipment, such as
firefighting vehicles, equipment or buses, in which case the sources of supply
may be identified based on technical specifications prepared by the appropriate
department staff and staff of the Capital Assets Management Division, the
Manager of Purchasing in consultation with
the staff may negotiate purchases based on such specifications; or
(f) Where, for any reason, a call for tenders does not result in the successful award of a tender.
AND THAT the contract for Street Light Maintenance be
awarded to Markham Hydro for the one year period ending December 31, 2004 in
the amount of $398,060 ($425,922 with GST);
AND THAT funds are provided for in the proposed 2004
Construction and Utilities Operating Budget 720 720 5497.
PURPOSE:
The purpose of this report
is to award a contract to Markham Hydro for Street Light Maintenance for 2004.
BACKGROUND:
Markham
Hydro has been the provider of streetlight maintenance services for the Town.
The Town’s streetlight electrical supply circuits are now integrated into the
existing hydro system and require certified personnel (Journeyman Linemen) to
maintain any live portion of the system. The services provided include regular
repairs to damaged poles and fixtures, replacement of burned out bulbs,
underground and overhead supply line repairs and a yearly re-lamping and
cleaning program (2,500 lights for 2004).
The
integration of the streetlight electrical supply circuits with the hydro system
means that Markham Hydro personnel must be onsite to turn the power off and on
prior to and after, respectively, the maintenance work is performed. Award of the maintenance work to alternate
contractors would still require Markham Hydro personnel to be onsite. It is recommended that the Purchasing By-Law
be waived as it is cost beneficial to have only one work crew (Markham Hydro)
to control the power to the streetlights and to perform the work on the
streetlights.
Damage repairs and routine maintenance items such as bulb
replacements/relamping are based on estimates provided by Markham Hydro and
payments are made to Markham Hydro based on the actual certified cost for the
work.
The
Markham Hydro estimate for these services for the 2004 Operating Budget is
$398,060. The Finance Department has advised that in accordance with Purchasing
By-Law 143-2000, a purchase order in excess of $350,000 requires approval from
Council.
FINANCIAL
CONSIDERATIONS:
Staff recommend
that a contract for Street
Light Maintenance be awarded to Markham Hydro for the one year period ending
December 31, 2004 in the amount of $398,060 ($425,922 with GST). The total
contract including GST is noted pending legislation providing a 100% rebate of
GST to municipalities.
The estimate for these services in 2003 was $370,000 and
the actual cost was $402,000 including GST.
Funds are provided for in the proposed 2004 Construction
and Utilities Operating Budget 720 720 5497.
______________________________________ ___________________________________
Stan Bertoia, P.Eng. Peter Loukes, P.Eng.
______________________________
Jim Sales,
Q:\STRTSRV\TECHSRV\Util\ALAN
LAVER\Reports\079-S-04 Award Report - May 3.doc
