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Home My WebLink AboutFIR 03-15 City o0 A Report to Executive Committee PI KERING Report Number: FIR 03-15 Date: July 6, 2015 From: John Hagg Fire Chief Subject: Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder - File: A-1440 Recommendation: 1. That Report FIR 03-15 of the Fire Chief regarding the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder be received; 2. That Council waive Purchasing Policy (PUR 010) Section 6.11; 3. That the proposal submitted by Smeal Fire Apparatus Ltd. for the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder in the amount of$1,115,253.50 (HST included) be accepted; 4. That the total gross project cost of$1,137,854.00 (HST included), including the proposal amount and other associated costs, and the total net project cost of $1,024,673.00 (net of HST rebate) be approved; 5. That Council authorize the Division Head, Finance & Treasurer to finance the net project cost of$1,024,673.00 as follows: a) the sum of$1,020;000.00 to be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten years; b) the sum of$4,673.00 to be funded from property taxes; c) that the annual repayment charges in the amount of approximately $122,650.00 be included in the annual Current Budget commencing in 2016 or subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. 6. That the draft by-law attached to this. report be enacted; and 7. Further that the appropriate City of Pickering Officials be authorized to take the necessary action to give effect hereto. 160 Report FIR 03-15 July 6, 2015 Subject: Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder Page 2 Executive Summary: A proposal was presented to the City of Pickering to purchase a 2013 model year"demonstrator" (demo) Smeal 32 metre aerial ladder truck. The proposal was submitted to the Fire Chief by Smeal Fire Apparatus Co. Smeal Fire Apparatus Co. is a reputable fire truck builder that the City has dealt with since 2005. The purchase of this demo vehicle will save the City a significant amount of money, estimated at over $150,000.00. In addition to this demo being offered at a considerable financial savings to the City, this aerial ladder fire truck fits Fire Services needs and requirements. This truck has been fully vetted and inspected by the fire Services truck specification committee and City Fleet Services staff. An aerial ladder fire truck was approved by Council in the 2015 Capital Budget and will replace Fire Services current 2001 30 metre aerial ladder fire truck. Financial Implications: 1. Proposal Amount Proposal Amount $986,950.00 HST (13%) 128,303.50 Total Gross Amount $1,115,253.50_ 2 Estimated Project Costing Summary Proposal Amount $986,950.00 Associated Costs (custom fitting) 20,000.00 Sub Total — Costs $1,006,950.00 HST (13%) 130,904.00 Total Gross Project Costs $1,137,854.00 HST Rebate (11.24%) (113,181.00) Total Net Project Costs $1,024,673.00 • 3. Source of Funds Fire Services Capital Budget 5340.1501.6158 Source of Funds Budget Required Debt-10 Year $1,100,000.00 $1,020,000.00 Property Taxes 4,673.00 Total $1.100,000.00 $1,024.673.00 Net Project Costs (over) under Approved Funds $75,327.00 This truck will also be required to be custom fitted with the necessary rescue tools and fire hoses in order to ready it for service. As noted above, a portion of the unspent funds will be required for the purchase of this equipment. CORP0227-07/01 revised 161 Report FIR 03-15 July 6, 2015 Subject: Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder Page 3 Discussion: City of Pickering Fire Services Department currently uses a.fleet of fire apparatus to perform fire suppression related duties throughout the City. This 2013 model aerial ladder fire truck will be located at Station 5, headquarters. As approved in the 2015 Capital Budget it will replace our current 2001 model aerial ladder fire truck. A proposal was received from Smeal Fire Apparatus on June 2, 2015 offering for sale one demo 2013 32 metre heavy duty aerial ladder truck. This truck has a 2013 chassis but was built in 2013/2014 and was not on the road until mid year in 2014. Acceptance of this proposal would require Council approval to waive Section 6.11 of the Purchasing Policy (PUR010). This section of the Purchasing Policy states the following: "Pricing for goods or services with an estimated total price over$30,000.00 shall be obtained by the Manager. The Manager shall decide when a.Request for Proposal, Request for Quotation or Tender is the most appropriate method to acquire the goods or services and shall solicit a minimum of three proposals, quotations or tenders if possible. Advertising is at the discretion of the Manager but an estimated value over $100,000.00 shall be advertised." There are several reasons for Council to waive the Policy in this case: 1. A significant saving in terms of money can be attained by approving this purchase. Based on recent purchases by Canadian municipalities, of similar apparatus, staff estimate we are saving in the order of$150,000.00. 2. The truck has been thoroughly vetted by the Fire Services Truck Purchasing Committee (an offshoot of the Joint Health and Safety Committee), City Fleet Services personnel • and Fire Services Senior Officers. The Fire Services Truck Purchasing Committee is in agreement that this truck meets our requirements, our specifications and is a high quality product. 3. Fleet maintenance staff are familiar with this product and we stock parts for repairs. 4. The chassis and most truck parts are manufactured in the United States and therefore, the price quoted can change due to currency swings between the US and Canadian dollar. This truck being a demonstration model is very well optioned and meets the City's needs. Specifications for this aerial ladder,fire truck meet all current National Fire Protection Association and Underwriters Laboratories of Canada standards. These are important standards as they address safety, operational requirements and build standards. From an environmental standpoint, the engine powering this new aerial ladder fire truck meets the current Environmental Protection Agency's emissions and fuel efficiency standards. This will significantly reduce the amount of harmful emissions created by the operation of this vehicle as well as provide increased fuel economy. This vehicle will also be equipped with the latest in passenger safety technology including advanced roll over protection, front and side impact supplemental inflatable restraints and data logging. CORP0227-07/01 revised 162 Report FIR 03-15 July 6, 2015 Subject:. Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder Page 4 It is also important to note that this vehicle was built for Canada, no modifications will be required to bring it up to Canadian standards. Once delivered this truck will require only minor installations prior to it being placed into service. Items such as mobile and portable radios, flashlights, and hearing protection headsets will be installed once the vehicle has been delivered. This truck has been used as a show truck.by Smeal Fire Apparatus, it has been featured as a demo or demonstrator at many trade shows. This truck has never been used by a fire service or placed into service. Taking into considerations all the benefits discussed above, the Fire Services Department recommends the acceptance of the proposal submitted by Smeal Fire Apparatus Co. in the amount of$1,115,253.50 (HST included), and that the total net project cost of $1,024,673.00 be approved. Attachments: 1. Being a by-law to authorize the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder project in the City of Pickering and the issuance of debentures in the amount of $1,020,000.00 Preps ed By: Approved/Endorsed By: .�� (04 Ja o Yoshida, Jo P Hagg D ty Fire Chief Fire Chief Vera A. Felgemacher Stan Karwowski CPA, CMA, MBA CSCMP, CPPO, CPM, CMM III Division Head, Finance &Treasurer. Manager, Supply & Services Caryn Kong, CPA,CGA Senior Financial Analyst-Capital & Debt Management JH:nrm CORP0227-07/01 revised 163 Report FIR 03-15 July 6, 2015 Subject: Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder Page 5 Recommended for the consideration of Pickerin ity Council f yr zd 1. Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised 164 ATTACHMENT# ' TO REPORT Ff K A3--I5- The Corporation of the City of Pickering By-law No. Being a by-law to authorize the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder project in the City of Pickering and the issuance of debentures in the amount of$1,020,000.00 Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower-tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City of Pickering wishes to proceed with debenture financing for the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder project; and, Whereas before authorizing the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and, therefore, Ontario Municipal Board approval was not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report FIR 03-15 on the date hereof for the Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder project; • 165 By-law No. Page 2 Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the project referred to as "Supply and Delivery of One 2013 Smeal Heavy Duty Aerial Ladder"; 2. That the estimated costs of the project in the amount of$1,024,673.00 be financed as follows: a) that the sum of$1,020,000.00 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten years; b) that the sum of $4,673.00 be funded from property taxes; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2016 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By-law passed this 13th day of July, 2015. David Ryan, Mayor • Debbie Shields, City Clerk 166