Report to: General Committee Report
Date:
SUBJECT: Contract Extension 012-T-03 Rental of Graders for Winter Maintenance
PREPARED BY: Bob Walter Ext. 4857
Alex Moore Ext. 4711
RECOMMENDATION:
THAT the staff report entitled Contract
Extension 012-T-03 Rental of Graders for Winter Maintenance” be received;
AND THAT the tender process be waived in accordance with
AND THAT Contract 012-T-03 Rental of Graders for Winter Maintenance be extended for an additional two (2) winter season (2008-2010);
AND THAT Contract 012-T-03 Rental of Graders for Winter Maintenance be extended for the 2008/09 period with the itemized prices identified on page 2;
AND THAT the
Manager of
AND THAT the total annual award cost of $910,796 ($851,296.00-Graders, $59,500.00-Windrow clearing) be funded from the annual operating budget account 700 504 5301Winter Maintenance Graders;
AND THAT the 2008 anticipated operating shortfall of $349,376 be included in the 2008 Town wide year end operating balance.
AND THAT the Graders in the estimated annual amount of $851,296.00, exclusive of GST be awarded as summarized below:
· Curtis Enterprizes (10 units) in the amount of $239,200 (2008-2009 winter season)
· Vidome Construction Ltd. (13 Units) in the amount of $342,576.00 (2008-2009 winter season)
· Jag Construction (6 Units) in the amount of $143,520.00 (2008-2009 winter season)
· Pit Haulage Ltd. (5 Units) in the amount of $126,000.00 (2008-2009 winter season)
AND THAT Staff be authorized to increase the cost for clearing of windrows from seniors driveways in accordance with the Town’s approved list (approx 1400) from a $6.50/ driveway to $8.50/driveway per occurrence;
AND THAT funds for clearing of Windrows, in the estimated annual amount of $59,500.00 exclusive of GST, be split between Curtis Enterprizes, Vidome Construction Ltd, Jag Construction and Pit Haulage Ltd dependant on approved list within each area;
That Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
N/A
PURPOSE:
The purpose of this report is to obtain Council approval for the extension of our existing winter maintenance contract, Tender 012-T-06, Rental of Graders for Winter Maintenance for the 2008-2009 and 2009-2010 winter seasons.
BACKGROUND:
The previous five year contract for the rental of graders for winter maintenance expired April, 2008.
OPTIONS/ DISCUSSION:
The units required under this contract
are utilized for plowing operations on the Town’s local road network. Staff approached the five (5) contractors who
have been doing this contract since 2003 for a two (2) year extension under the
existing terms and conditions of tender 012-T-08.
With the recent price increases received on the sidewalk/tandem plows (70-80% higher than previous contract); Staff determined that it was in the Town’s best interest to negotiate with the current contractors for a two (2) year extension rather than going to the market. Additionally, the availability of graders is limited within the field, in 2003 the Town only received bids from five (5) contractors and all were awarded contracts as per hourly rates provided on tender closing.
Hourly Rates (estimated @ 64 hours per
unit)
Contractor 2003-2008 2008/09 *
Curtis Enterprizes Inc. $140/hour $145/hour
Jag Construction $120/hour $130/hour Vidome
Construction Limited $160/hour $168/hour
Pit Haulage Ltd. $145/hour $150/hour
D. Crupi & Sons $200/hour Declined **
*Proposed hourly rates for 2008/09 represent a 6% increase over the 2003-2008 rates.
** D. Crupi & Sons declined the request
for a two (2) year extension as they were the successful contractor on the City
of
Standby Rate (130 days)
2003-2008
2008/09*
All Contractors $100/day $120/day
*Proposed standby rates for 2008/09 represent a 20% increase over the 2003 -2008 rates.
In addition, the grader contractors are responsible for the removal of snow windrows from seniors and physically challenged with prices identified below.
Windrow
Clearing (Estimated 1400 driveways)
2003-2008 2008/09*
All Contractors $6.50/windrow $8.50/windrow
*Proposed windrow rates for 2008/09 represent a 30% increase over the 2003 -2008 rates.
Due to the increase in labour of 12.48 %,
diesel fuel of 202.66% from the period extending through 2003 to 2008 and
market conditions, staff believes the negotiated rates noted below are
competitive in the market place.
Overview:
D. Crupi & Sons declined the extension of this contract and originally had five (5) Graders that supported this element of the winter maintenance program. The removal of these five (5) Graders will be replaced by the lowest hourly (Curtis or Jag) contractor provided that they have an additional unit available. Staff are negotiating with our suppliers to provide two sand trucks with plow and wings, and one loader with a plow and wing to offset the reduction of the of the (5) graders previously supplied by Crupi.
Staff are working to phase in plow
trucks equipped with sander plows and wings, reducing the number of units
required to clear the local road network. Generally truck sander/plows are able
to travel quicker, and apply winter control material at the same time, reducing
time lines and number of units required for standby. Our long term goal is to
phase out the graders, replace them with the combination trucks, reducing the
number of units required, therefore we recommended that the contract extension
be limited to (2) years.
FINANCIAL TEMPLATE:
|
Equipment |
# of Units |
Average Hourly Rate |
# of Days/Hours |
2009 Estimated Cost |
Annual Operating Budget
(2008 level) |
Difference |
|
Graders |
|
|
|
|
|
|
|
Equipment-Operating |
34 |
$147.47 |
64 |
$320,896 |
|
|
|
Equipment-Standby |
34 |
$120.00 |
130 |
$530,400 |
|
|
|
Total Graders |
34 |
$267.47 |
194 |
$851,296 |
$1,021,993 |
$170,697 |
|
|
|
|
|
|
|
|
|
Windrow Clearing |
5 |
$8.50 |
1,400 |
$59,500 |
$45,500 |
($14,000) |
|
|
|
|
|
|
|
|
|
TOTAL |
39 |
$275.97 |
1,594 |
$910,796 |
$1,067,493 |
$156,697* |
*The balance of $156,697 will be used to fund the outstanding two sand trucks and one loader with a plow currently being negotiated with suppliers. The 2009 winter maintenance budget will reflect tendered/negotiated contract amounts.
2008
Operating Budget Impact:
|
Equipment |
2008 Year to date
Unfavourable Variance |
Less: 2008 Estimated Costs
(Nov – Dec. 2008) |
2008 Year end
Unfavourable Variance |
|
Total Graders |
|
($212,824) |
($212,824) |
|
Windrow Cleaning |
|
($ 14,875) |
($ 14,875) |
|
TOTAL |
($121,677) |
($227,699) |
($349,376)* |
The shortfall of $349,376 will be included in the 2008 Town wide year end operating balance.
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not Applicable
DEPARTMENTS CONSULTED AND AFFECTED:
Not Applicable
RECOMMENDED
BY: ________________________ ________________________
Peter Loukes, Brenda Librecz
Director Operations Commissioner, Community & Fire Services
ATTACHMENTS:
None