By Mark Squibb / June 9, 2023
Mount Pearl City council has voted to extend its snow clearing contract with Farrell’s Excavating Ltd.
In 2022, on the heels of an 11-week municipal strike, council awarded a snow clearing contract to Farrell’s Excavating for the bid amount of $531,875, HST included.
It was the first time the City had ever contracted snow clearing services to an external contractor.
City staff would remain the ‘go-to’ for snow clearing, but Farrells would be called upon to clear snow in special circumstances, such as a worker strike, severe snowfall, or another pandemic, God forbid.
The move also ensured the City would have to rely less on staff overtime hours, a condition of the strike bargain.
During this week’s meeting, councillor Jim Locke explained that as per the tender document, the duration of the contract was for the winter season, which spanned from December 1, 2022, to March 31, 2023, and the city has the right at the end of each contract year to extend the contract by increments of one year for a period of up to no more than two years, upon the same terms and conditions, provided both parties agree.
The Corporate Services and Public Works Committee recommended the contract be extended for an additional year for the winter season of December 1, 2023, to March 31, 2024, with the same terms and conditions.
“This contract will allow us to have a contingency in place,” said Locke. “It’s a form of insurance if you will, that, should some unforeseen occurrence take place, we’re protected, and we’re able to continue with the high level of services that our residents are used to.”
The bid amount of $531,875 was well over what the City actually paid, which was around $115,000.
“We arrived at that number ($531,875) in the event that there is a circumstance whereby we have to rely totally on this contractor to provide this level of service,” said Locke.
Also built into the price is a guaranteed amount of $100,000 plus HST for equipment standby costs, including a set number of hours of work if required, to be paid in two installments in January and March.
“That’s what we pay to maintain the workers and the equipment on standby, if you will, in the event that we need it,” said Locke.
The motion passed unanimously.
