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HomeMy WebLinkAbout1995-10-23 95-444 ORDERCOUNCIL ACTION Date: 10-23-95 Item No 4 95-44e( ' Item/Subject: ORDER, Rejecting All Bids for Privatization of Snowplowing Services to Clear City Parking Lots Responsible Department: City Council Commentary: As a follow on to this year's budget process, the City Council directed that staff prepare and issue a number of requests for proposal for privatizing various City services. One of these proposals was for the plowing of various City parking lots. Proposals were selected antl taken, and a bid tabulation is attached which shows the proposals which were received. These proposals have been reviewed by the various departments which oversee the parking lots in question. Based on this analysis, staff recommended that this service not be privatized since it would result in additional cost to the City. A memorandum is also attached which summarizes the impact of privatizing these functions based on the proposals received. This service would have several impacts on the City's general fund. First, the proposals received were higher than the costs incurred by Public Works to perform the same duties. Second, Public Works recovers a significant amount of revenue from the School Department, the Parking Fund, and Bass Park for the services which are provided. As a result, revenues to the general fund as well as credits to the Public Works Department would be reduced. These proposals were reviewed by the Finance Committee which also recommends their rejection. Manager's Comments: d r Associated Information: Order, bid tabulation, memorandum Budget Approval: ITTY SOLICrTOR Introduced .For Passage First Reading Pageof_ _ deferral 95-444 Aewpwd to Coundor Soucy October 23, 1995 CITY OF BANGOR (TIRE) N'/xl1¢Le....BeSectin¢-➢SS...aids<fox, ...Privatization ...of... Snowplowing. Services to Clear By the MY Courwit ofthe MV OBy .' ORDERED, THAT the various proposals received for snow removal services from City Parking Lots, which were received on September 27, 1995, are hereby rejected. These services shall continue to be provided by the City of Bangor's Public Works Department. IN CITY COUNCIL !.. 95-444 • Octo4et'23, 1995 0 R D E R Passed' " Title, Rejecting All Bids for "rr..•s CITY am -- Privatization of Snowplowing Services-,» C" to Cleat City Parking Lots ........(/......N.n..................... Cowcilman SNOW REMOVAL SERVICES FROM CITY PARKINGLOTS CANVASS OF PROPOSALS Dated SVunnbrr27, 1995 ANNUAL FEES PROPOSED FOR SNOW REMOVAL SERVICES BIDDERS ITEM 1 ITEM 2 1TEM 3 = 4 CIY PERMIT PARKING BASSPARK OTHPRCITYPARKING SCHOOLPARKBJG FY96 FY97 FY98 F % FY97 FY 98 FY 96 F W FY98 FY96 F W FY 98 All Smeon¢ Comtrxtion NOBid No Bid NOBid NOBid No bid No Bid No Hid NOBid NOBid 85,000 85,000 85,000 ba A Rondell agx,ME 04401 94 (207) 68985 .&R. COmtracdon NOBid NOBid NOBid 16,000 16,000 16MONOBid No Bid No Bid 44,000 ",000 ",000 No Grover RFD81 Boss 647 O ngwa,MR "474 (5,388) (5,388) (5,386) (16,300) (16,500) (16,500) (207) 8254]23 [4,250] I4d501 141301 I5+"01 IRA601 1&"01 luOv%Brm.bx. 109,900 114,300 118,]00 48,400 50,350 52,300 99,100 82,265 85,430NOBid NOBid NOBid Willian C. Rnghm ]19 Main Street fampdm MB 0"44 207) 9424606 R swBe lx_ 132,900 139,600 146,500 43,900 46,100 48,400 81,900 8],000 90,300 8],900 92,300 9Q600 )avid B. Mcin" O Bax 435 Stillnuter, MH 04489 207) 827-4425 .AStmOt&Sox NO Bid NoBW No Bid Na Hid No Hid No Bid Na Hid Na Hid No Bid 99,]00 99,]00 99,90D O. Box 291 aty+or,146 61402-0281 70 942-8356 BR)DERS CffY PERMIT PARKING I BASSPARK jonmxtcrrypARKINGj SCHOOLPARK]NG 3-4 CY LOADER FY96 IFY971 FY98 FY96 FY9] FY98 FY96 FY97 FY96 FY96 FY9] FY98 augur TTi6odeau 04,000 84,000 86,250 24,000 24,000 Nno 62,000 62,000 63,860 No Bid No Bid D&RCONSTRDCTIONINC 35 50 60 50 50 No Bid No Bid augha nibodeau HUGHES BROS. AIC, 45 65 55 42 90 100 7 119081ncemea Road (0.9311) (43}I1)(a.33D) (P Track w/14) (•) O (') 55 45 90 Wiftua r4 04196 [65,W5[ [65,005) [65,005) C.A STROW&SMS 40 501 (20'!) 223.4279 351 a0i No Bid I No Bid (•) City c0 fm Odw City Parking UW we included m repro Cityc for City Pelmb Pwldn Area. ADDITIONAL SERVICES PROPOSED HOURLY RATES BIDDER FWDW/ PLOW BACKHOE LOADER 18-20CY DUMP 12-14 CY DUMF 3-4 CY LOADER 5 CY LOADER 0= ALL SEASONS CONSTRDCTON 35 40 No Bid 40 45 No Bid No Bid D&RCONSTRDCTIONINC 35 50 60 50 50 No Bid No Bid HUGHES BROS. AIC, 45 65 55 42 90 100 75 (P Track w/14) H H SARm;r 0 35 55 55 45 90 100 C.A STROW&SMS 40 501 40j 351 a0i No Bid I No Bid VAU HN=ODEAU&SMS 45 501 40j 321 551 70 NOB 95-444 M MORAM TM To: Honorable Council Chair and Numbers of the City Council From: Edward A. Barrett, City Manager Re: Budgetary Impact --Contracting for Parking Lot Snow Removal Hate: October 16. 1995 The attached chart attempts to summarize the anticipated annualised budget impact of privatizing parking lot snow removal on the City's General Fund operating budget. Given the bids which wereved, there a several impacts on the operating budget. Firstethe bids are higher than current costs. Given that the various funds involved are subsidised by the General Fund, any increase in those funds will increase the subsidy required or, in the case of schools, the tax support needed. expenses will increase. Second, the General Fund will aleo lose revenues r credits which are received for this work. Thus, revenues will decrease. Such changes can only be offset based on actual budget reductions in Public Works. For purposes of analysis, such reductions are based on 1008 savings in personnel and equipment costs devoted to parking lots. Other elements of the total cost, i.e., Departmental and City-wide overhead, are assumed to remain. Estimated Budgetary Impact -Parking Lot Snow Removal Bass Park Permit a Other Schools Total Low Bid $16,000 $147,860 $44,000 $20,860 Public Worksi 5,308 65,005 16,500 86,893 Net Cost 10,612 82,855 27,500 120,967 Revenue Lose 5,388 65,005 16,500 86,893 TOTAL NET 16,000 147,860 44,000 207,860 P.R. Savings2 (4,214) (34,591) (12,904) 51,709 TOTAL 11,786 113,269 31,096 156,151 1) The higher of last year's or the five year average have been used. 2) This represents 1008 of direct labor and equipment costs (see attached). Overall, therefore, accepting the proposal low bids will have a budget impact in excess of $150,000. Edward A. Barrett, City Manager EAB/jdr Attachment 95-444 SNOW REMOVAL SERVICES FROM CITY PARKING LOTS SUMMARY OF CITY COSTS FISCAL YEAR 1995 DESCRIPTION LABOR EQUIP. OH CIIYRVDE TOTAL INDIRECT BASS PARK (1) 1,4]3.26 2,740.26 907.53 266.95 5,388 SCHOOL PARKING LOTS (2) 4.511.99 8,391.96 2,T79.38 816.67 16,500 CITY PERMIT LOTS (1) 8,807.87 16,879.5 5,395.71 1,535.97 32,619.05 OTHER CITY LOTS (3) 3,113.06 5,790.27 1,917.64 564.08 11.385.05 TOTALS 17,906.18 33,801.99 11,000.26 3,183.67 65,892.1 (l) These lots are billed to the appropriate depanmeata based on ached costa incurred (2) School lots are bled on a flat fee each year and the breakdown shown above is based on the total billed apportioning the breakdown in accordance with actual practice and the percentages shown. (3) These parking has are not billed but absorbed in the Highway budget fm snow removal. g Rquwel5 ms Oclob 16, INN