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TO: |
Mayor and Members of Council |
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FROM: |
Andy Taylor, Commissioner of Corporate Services Barb Cribbett, Treasurer |
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PREPARED BY: |
Ivy Ho, Purchasing Supervisor |
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DATE OF MEETING: |
December 8, 2003 |
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SUBJECT: |
#11 Staff Awarded Contracts for the period from October 27 to November 17, 2003 |
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RECOMMENDATION:
THAT the report entitled “Staff Awarded Contracts for the period from October 27 to November
17, 2003” dated December 8, 2003 be received for
information only.
PURPOSE:
To inform
Council of contracts awarded by staff for the period from October 27 to
November 17, 2003 as per
Purchasing By-Law 143-2000.
EXECUTIVE SUMMARY:
Council
at its meeting of August 29, 2000 approved By-Law 143-2000, A By-Law
Establishing Purchasing, Service and Disposal Regulations and Policies. The By-Law delegates authority to staff to
award contracts up to a value of $350,000.00 and to negotiate contracts when
the extension of existing contracts would prove more cost effective or
beneficial. It also stipulates that a
monthly information report be submitted by the Treasurer to the Finance &
Administrative Committee on all contracts awarded by staff from $50,000.00 to
$350,000.00.
BACKGROUND:
During the period from October 27 to November
17, 2003, 9
contracts were awarded as listed in Table “A”.
Table “A”
|
Qty. |
Award Details |
|
3 |
Lowest priced bidder |
|
1 |
Split award to various
qualified bidders |
|
2 |
Contract Extended |
|
2 |
Sole Bidder |
|
1 |
Highest Financial Return |
SUMMARY OF CONTRACTS AWARDED
$50,000.00 - $350,000.00
1. 177-T-03 Washroom Renovations, Milliken Mills Community Centre
- In November, the
Commissioner of Community and Fire Services approved the award of tender
177-T-03 Washroom
Renovations at Milliken Mills Community Centre to the lowest qualified bidder, Inter-All Ltd. for in their tender
amount of $64,735.00 inclusive of 7% GST ($62,315.00 inclusive of 3% GST).
- Funds for tender
177-T-03 titled Washroom Renovations at Milliken Mills
Community Centre
were provided for in Recreation Services Department’s 2003 Capital
Budget account # 70 6150 5066 005, Milliken Mills Community Centre
Renovate Arena Washrooms and 70 6150 5067 005 Milliken Mills Community
Centre Renovate Washrooms in the total amount of $70,000.00.
- Upon payment of all final invoices, the remaining balance of
$5,357.20 in Recreation
Services Department’s 2003 Capital Budget account # 70 6150 5066 005,
Milliken Mills Community Centre Renovate Arena Washrooms will be transferred back to the original source of
funding.
· DETAILED PRICING INFORMATION
Four companies submitted qualified bids and one company was disqualified for failing to meet the mandatory bonding requirements.
|
Company |
Price Inclusive of 7% GST |
Price Inclusive of 3% GST |
|
Inter -All |
$64,735.00 |
$62,315.00 |
|
Klescon |
$74,365.00 |
$71,585.00 |
|
Dontex |
$86,349.00 |
$83,121.00 |
|
Deciantis |
$89,238.00 |
$85,902.00 |
|
Budget Available |
Spent and Committed as of November 6, 2003 |
Budget Charge 3% GST |
Budget
Remaining |
GL Number |
GL Name |
|
$34,000.00 $36,000.00
$70,000.00 |
$ 0.00 |
$31,672.20 $30,642.80
$62,315.00 |
$ 0.00 $ 5,357.20 $ 5,357.20 |
70 6150 5067 005 70 6150 5066 005 |
Milliken Mill CC - Renovate Washrooms,
Milliken Mill CC – Renovate Arena Washrooms
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2. 193-T-03 Steeles Avenue Watermain
Replacement, Victoria Park Avenue to Esna Park Drive
· In November, the Chief Administrative Officer exercised his authority to approve contracts in excess of $350,000 during Council’s lame duck period from September 29 to
December 2, 2003 as approved by Council at its September 16, 2003 meeting.
- The Chief
Administrative Officer approved the award of tender 193-T-03 Steeles
Avenue Watermain Replacement, Victoria Park Avenue to Esna Park Drive to the lowest priced bidder, Drainstar
Contracting Ltd. in their tender amount of $453,999.93 inclusive of
$40,000 contingency and 7% GST ($437,027.97 inclusive of $40,000 contingency
and 3%GST).
- Funds for tender
193-T-03 Steeles Avenue Watermain Replacement, Victoria
Park Avenue to Esna Park Drive
were provided for in 2002 Waterworks Capital Budget, Account
No. 053 6150 4890 005, Watermain Construction and Replacement.
- The remaining funds of $1,117,517.73 in 2002 Waterworks Capital
Budget, Account No. 053 6150 4890 005, Watermain Construction and
Replacement will be made available for other construction work.
· DETAILED PRICING INFORMATION
Nine companies picked up the
bid document and four companies submitted qualified bids.
|
Companies |
Inclusive of $40,000 contingency & 7% GST |
Inclusive of $40,000 contingency & 3% GST |
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Drainstar Contracting Ltd |
$453,999.93 |
$437,027.97 |
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F.D.M Contracting Co. Ltd |
$524,342.80 |
$504,741.20 |
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Advice Contracting |
$531,839.22 |
$511,957.38 |
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Aecon Utilities |
$564,588.71 |
$543,482.59 |
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Budget Available |
Spent and Committed as of November 3, 2003 |
Budget Charge 3% GST |
Budget
Remaining |
GL Number |
GL Name |
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$1,709,800.00 |
$ 437,027.97 |
$1,117,517.73 |
053 6150
4890 005
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Watermain
Construction & Replacement
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3. 149-T-03 Markham Civic Centre
Exterior Wall Repairs
- In November, the Chief Administrative Officer
approved the award of tender 149-T-03
for the Markham Civic Centre Exterior Wall Repairs Phase 1 to the lowest
priced bidder, Royal Fort Construction Ltd. in their tender amount of
$138,942.18 inclusive of 7% GST ($133,748.08 inclusive of 3% GST).
- A contingency fund of $13,894.22 inclusive of 7% GST ($13,374.81
inclusive of 3% GST) was established and that the Expenditure Control
Policy will guide the use of the contingency funds.
- Funds for this project were provided for in the Asset Management’s
2002 Capital Account #56 5350 4705 005, Civic Centre Curtain Wall Repairs
and 2003 Capital Account # 56 6150 5001 005, Civic Centre – Improvements.
- The balance of funds in the estimated amount of $861,628.13 in
Asset Management’s 2003 Capital Account 056 6150 5001 005, Civic Centre
Improvements remain dedicated for future phases of Civic Centre repairs
and replacements and the 2002 Capital Account #056 5350 4705 005, Civic
Centre Curtain Wall Repairs will be closed upon payment of all invoices.
- The approved budget for this initiative was $284,500 compared to
an actual cost of $155,996.08 for the lowest bid price as well as for the
consultant to complete and review the tender document. Asset Management has requested that the
balance of funds remain in the Civic Centre Improvement capital project
pending completion of other works as identified in the project.
· DETAILED PRICING INFORMATION
Thirteen
companies picked up the bid document and ten companies submitted qualified
bids.
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Contractor |
Total
Price (Inclusive of 7% GST), Less Item 3.8 |
Total
Price (Inclusive of 3% GST) Less Item
3.8 |
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Royal Fort Construction |
$138,942.18 |
$133,748.08 |
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Brook Restoration Ltd. |
$196,880.00 |
$189,520.00 |
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Maresco Limited |
$206,983.48 |
$199,245.78 |
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Roma Structural Restoration |
$207,412.81 |
$199,659.06 |
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Wall Tech Restoration Inc |
$216,514.50 |
$208,420.50 |
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Colonial Building Restoration |
$230,638.50 |
$222,016.50 |
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Dominion Caulking Ltd. |
$230,381.70 |
$221,769.30 |
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Phoenix Restoration |
$238,788.21 |
$229,861.55 |
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Holl Restoration Inc. |
$225,869.51 |
$217,425.79 |
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Maxim Group |
$257,446.82 |
$247,822.64 |
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Budget Available |
Spent and Committed as of October 17, 2003 |
Budget Charge 3% GST |
Budget
Remaining |
GL Number |
GL Name |
|
$
978,000.00 $ 84,500.00 $1,062,500.00 |
$49,103.67 $ 4,645.31
|
$
53,893.39 $
13,374.81 Contingency $
67,268.20 $
79,854.69 $147,122.89 |
$861,628.13 $ 0.00 $861,628.13 |
56 6150 5001 005 56 5350 4705 005
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Civic Ctr. Improvements
Curtain Wall Repairs |
4. 143-T-03 for Hired Tandem and
Tri-Axle Trucks on an “as and when” required Basis
·
In November, the Chief
Administrative Officer exercised his authority to approve contracts in excess
of $350,000 during Council’s lame duck period from September 29 to
December 2, 2003 as approved by Council at its September 16, 2003 meeting.
· The tender was called for the Hiring of Tandem and Tri-Axle Trucks on an “as and when” required basis to haul materials from 555 Miller Avenue to various landfill sites. The hourly rate is fixed by the Town and is inclusive of an operator as per Table A.
|
TABLE A |
Hourly Rate (Inclusive of 7% GST) |
Hourly Rate (Inclusive of 3% GST) |
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1 |
Minimum 15 cu.
Yd. Capacity Tandem Truck With Operator |
$55.00 |
$51.40 |
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2 |
Minimum 22 cu.
Yd. Capacity Tri-Axle Truck With Operator |
$65.00 |
$60.75 |
- The
Chief Administrative Officer approved splitting the award of tender
143-T-03 Hired Tandem and Tri-Axle Trucks on an “as and when” required
Basis to the companies listed on Table B at an hourly rate set by the
staff, totalling an estimated $658,621.34, inclusive of 7% GST
($634,000.00 inclusive of 3% GST) for a period of two years.
· TABLE B outlines the number of units (11 tandem trucks and 8 tri-axle trucks) available for hire from each of the companies.
TABLE B
Contractor
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# of Tandem Trucks |
# of Tri-Axle Trucks |
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Larkin |
4 |
No Bid |
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Griffith Property Services Ltd. |
5 |
6 |
|
Dunlop Construction |
1 |
No Bid |
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Wilson Contracting |
1 |
2 |
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Total |
11 |
8 |
- The following 2004 –
2005 estimated costs (inclusive of 3% GST) will be provided for within the
respective years’ budget submission for the Operations Department, Parks
and Waterworks proposed Operating and Capital Budget accounts.
|
Year |
Operations |
Parks |
Waterworks |
|
2004 |
$167,000 |
$50,000 |
$100,000 |
|
2005 |
$167,000 |
$50,000 |
$100,000 |
- The 2004/2005
budget/purchase orders will be adjusted for growth based on the approved
budget for that year.
- The Director of
Operations and Asset Management and the Director of Financial & Client
Services were authorized to extend the contract for an additional one year
under the same terms and 2003 prices, dependant upon quality of
service and mutual agreement of both parties.
5. 191-S-03 2003/2004 Residential Water
Meter Replacements and Installation
·
In November, the Chief
Administrative Officer approved that the tendering process be waived in
accordance with Purchasing By-Law 143-2000, Section 14 (1) (c) which states
“…the extension of an existing contract would prove more cost-effective or
beneficial”.
- The
contract for the “2003/2004 Residential Water Meter Replacements and
Installation” with Neptune Technology Group (Canada) Ltd. was extended for
a total amount of $136,104.00, inclusive of 7% GST ($131,016.00 inclusive
of 3% GST) from November 1, 2003 to June 30, 2004 with an option to renew
for one additional year.
- A contingency of $5,350.00 inclusive of 7% GST
($5,150.00 inclusive of 3% GST) was established and the Expenditure
Control Policy will guide the use of the contingency funds.
- Funds
were provided for in the Waterworks Department’s 2003 Capital Account
53-6150-5147-005, Water
Meter Replacement and Upgrade.
·
The General Manager of
Construction & Utilities and the Director of Financial & Client
Services were authorized to extend the contract for one additional year at the
same terms, conditions and 2003/2004 pricing.
· Any additional funding requirements will be provided for within the 2004 budget submission for the Waterworks Department.
- The
balance of funds in the estimated amount of $366,334.00 in Waterworks
Department’s 2003 Capital Account #053 6150 5147 005, Water Meter Replacement and Upgrade, remain
dedicated for the residential and I.C.I. (Industrial, Commercial,
Institutional) water meter replacement program.
- As a long time service
supplier, Neptune has provided a service contract offer for the 2003/2004
water meter replacement project. The contract offer includes a minor price
increase, but is otherwise offering the same terms, conditions and
specifications as the Town’s previous contract.
Proposal Price Comparison
(Prices include 7% GST)
|
Item |
Description |
Year
2000 Price |
Year
2003 Proposed Price |
Cost
Difference |
%
Increase |
|
1 |
Remove and replace existing water meter, reconnect cable and remote as per specs. |
$41.60 |
$45.37 |
$3.77 |
9.1% |
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2 |
Remove and replace existing water meter, install new
cable and remote as per specs. |
$50.29 |
$54.84 |
$4.55 |
9.0% |
Note: the majority of installations fall within
Item #1
- The annual cost of this
contract is $136,104.00 (inclusive of 7% GST) based on the installation of
3000 meters per year.
|
Contract Term |
# of Installations |
|
November 1, 2003 to December 31, 2003 |
750 |
|
January 1, 2004 to June 30, 2004 |
2250 |
The following benefits will
be derived by awarding the contract to Neptune:
1. Neptune (Schlumberger)
has consistently been the lowest priced bidder for the water meter replacement
and installation contract since 1992.
Extended service hours were
provided without cost price increase.
2. Neptune will provide continuous excellent customer service
for water meter replacement where services are provided six days a week from
7:00 a.m. to 8:00 p.m. allowing more flexibility for working residents.
3. The contract extension will result in efficient project administration and improved handling and management of water meters due to Neptune’s familiarity of the Town’s installation procedures, process and customer service expectations. Neptune’s direct handling of water meters reduces project time management for Town staff resulting in working efficiencies and cost savings.
4. There is added service value by installation of water saving devices. Neptune is contracted by York Region to install water saving devices under the “Water For Tomorrow” water efficiency program. These water saving devices are installed free of charge to York Region residents. Markham residents may obtain extra benefit by having the water savings devices installed at the same time of the water meter replacement.
|
Budget Available |
Spent and Committed as of October 20, 2003 |
Budget Charge 3% GST inclusive of contingency |
Budget
Remaining |
GL Number |
GL Name |
|
$502,500.00 |
$131,016.00 $ 5,150.00 $136,166.00 |
$366,334.00 |
53-6150-5147-005
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Water Meter Replacement and Upgrade
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6. 180-T-03 Installation
of Guide rail in Various Locations
- In November, the Commissioner of Community and Fire Services approved the award of
tender 180-T-03, Installation
of Guide rail in Various Locations to the sole bidder Powell (Richmond
Hill) Contracting Limited in their tender amount of $81,748.00 inclusive
of 7% GST ($78,692.00 inclusive of 3% GST).
- The Director of Operations and Asset
Management and the Director of Financial & Client Services were
authorized to renew this contract for an additional two years on a
year-to-year basis at the sole discretion of the Town.
- Funds for this project were provided for in the Operations
Department’s 2003 Operating/Capital Accounts 700 504 5408, Fences,
Railings, Barricades 050 5350 5105 005, New Guide Rail Install and 083
5350 5325 005, Denison Street/Warden Ave. Guide Rail).
- The balance of funds in the estimated amount of
$27,174.16 in capital account 050 5350 5105, New Guide Rail Install remain
dedicated for repairs to existing guide rail and will be closed upon
payment of final invoices.
· DETAILED PRICING INFORMATION
Two
companies picked up the bid document and one company submitted a qualified bid.
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Budget Available |
Spent and Committed as of October 31, 2003 |
Budget Charge 3% GST |
Budget Remaining |
GL Number |
GL Name |
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$
17,000.00 $
50,000.00 $ 55,500.00 $122,500.00 |
$
3,077.73 $
13,556.11 $ 0..00 |
$
13,922.27 $
36,443.89 $ 28,325.84 $ 78,692.00 |
$ 0.00 $ 0.00 $ 27,174.16 $
27,174.16 |
700 505 5408 050 5350 5105 005 083 5350 5325 005
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Fences, Railings, Barricades New Guide Rail Install Denison Street/Warden Ave Guide Rail
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7. RFP 084-R-03 Arena Wall Mount
Illuminated Advertisement Display Signs
- In November, the Chief
Administrative Officer approved the award of RFP 084-R-03 Arena Wall
Mount Illuminated Advertisement Display Signs to the sole bidder,
Boardview Advertising Inc. with an annual revenue guarantee of $10,000
representing 22 signs, plus $450 per year for each additional sign sold
over and above the 22 signs for a term of TWO (2) years with an option to
renew for an additional THREE (3) years based on mutual agreement with the
Town.
- Boardview Advertising Inc. will be permitted to install signs in
various Markham arena locations after approval from the appropriate
Facility Co-ordinator is obtained.
- Funds received will be credited to the various Recreation and
Culture Services Department’s facility operating accounts.
- The 2004 budget will be
increased by $7,000 to reflect the additional revenues generated.
8. RFP02-98 for Arena Rink
Board Advertising
·
In November, the Chief
Administrative Officer approved that the tendering process be waived in
accordance with Purchasing By-Law 143-2000, Section 14 (1) (c) which states
“…the extension of an existing contract would prove more cost-effective or
beneficial”.
- The contract for RFP02-98 for Arena Rink Board Advertising with
Boardview Advertising Inc. for various Recreation Facilities, including
Angus Glen Community Centre and Library, was extended for one additional
year from September 1, 2003 to
August 31, 2004 with an
annual guarantee of $22,500.00 representing 50 signs sold plus an additional
$450.00 per year for each additional sign sold over and above the $22,500.00
annual guarantee.
· The intent of the one-year extension is to accommodate the Strategic Services Department’s strategy for revenue generation where opportunities will be pursued to generate or increase revenue such that there is no impact on the delivery of services to the public.
- Funds received will be credited to various Recreation and Culture
Services Department’s facility operating accounts.
- The 2004 budget will be increased by $2,500 to reflect the
additional revenues generated.
Appendix “B”
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Recreation and Culture Services Facilities |
Operating Account # |
Amount |
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Angus Glen Community Centre and Library |
504 921 8853 |
$ 2,500 |
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Centennial Community Centre |
503 921 8853 |
$10,000 |
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Thornhill Community Centre |
501 921 8853 |
$10,000 |
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Total |
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$22,500 |
9. 103-R-03
for Food & Beverage Kiosks at Angus Glen Community Centre & Library
(AGCCL)
- In
November, the Chief Administrative Officer approved the award of RFP
103-R-03 Food
& Beverage Kiosks at Angus Glen Community Centre & Library (AGCCL)
to the highest ranked acceptable bidder which offered the highest
financial return to the Town, International Foods at a lump sum annual
commission of $10,000.00 or 21.0% of gross sales, whichever is greater,
for a term of THREE (3) years commencing November 1, 2003.
- The
Director of Recreation Services and the Director of Financial & Client
Services were authorized to renew this contract for an additional TWO (2)
years at a lump sum annual commission of $15,000.00 or 21.0% of gross
sales, whichever is greater.
- The $10,000.00 annual revenue in 2004, be credited to the
Recreation and Culture, AGCCL account #504 921 8903.
- After review of the annual Total Gross Sales, should the amount
exceed $47,619.05, ($47,619.05 X 21.0% = $10,000.00) a reconciliation
would occur to reflect the higher revenue and result in a higher
commission amount on the payment.
- DETAILED PRICING INFORMATION
Five companies picked up the
bid document, five companies submitted qualified
proposals and four companies were shortlisted for further evaluation.
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International |
Mr. Vending |
Lewis Foods |
Unique |
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Lump
Sum/Commission Rate |
$10,000 or 21.0% of gross sales whichever is greater Years 1-3 $15,000 or 21.0% of gross sales whichever is greater
Years 4-5 |
$9,600 plus 10% over sales of $96,000 per year. |
$ 3,000 Year 1 $ 4,800 Year 2 $ 6,000 Years 3-5 $12,000
Years 6-7 |
5% of gross sales |
CONCLUSION:
The bids were issued in compliance with the Purchasing By-Law 143-2000. Prior to awarding the contracts, Purchasing reviewed the bid documents and verified that all terms, conditions and specifications to ensure compliance with the Town’s requirements.
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Barb
Cribbett, Treasurer |
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Andy
Taylor, Commissioner, Corporate Services |
Q:\Finance and Administration\Finance\Purchasing\2003
File Management\Reports to Standing Comittee\0388 #11 Staff Awards Oct to Nov
17.doc