HomeMy WebLinkAboutOES 39-040!3
PICKERING
REPORT TO
COUNCIL
Report Number: OES 39-04
Date: December 2, 2004
Richard W. Holborn, P. Eng.
Division Head, Municipal Property & Engineering
Subject:
Supply and Delivery of One Telescopic Boom Excavator
Q-41-2004
Recommendation:
o
That Report OES 39-04 regarding the supply and delivery of a Telescopic Boom
Excavator be received and that;
Quotation No. Q-41-2004 submitted by Strongco Equipment for the supply and
delivery of a Badger Model 460 Telescopic Boom Excavator with the specified
attachments in the amount of $294,662 (GST and PST extra) be accepted;
The total purchase cost of $338,861.30 and a net purchase cost of $318,234.96
including specified attachments for the equipment be approved;
Total revised funding of $318,234.96 with $255,000 of five year debt as provided for
in the 2004 Capital Budget and an additional $63,000 in a five year internal loan and
$235 from current funds be approved; and
That Council authorize the Director, Corporate Services & Treasurer to finance the
purchase through the issuance of debt.
a) Debt financing through Region of Durham in the amount of $255,000 for a
period not exceeding 5 years, at a rate to be determined be approved;
b)
Financing and repayment charges in the amount of $58,900 be included in
the annual current budget for the City of Pickering commencing in 2005 and
continuing thereafter until the loan is repaid; and
c)
The Director, Corporate Services & Treasurer has certified that this loan and
the repayment there of falls within the City's debt and financial obligations
approved annual repayment limit for debt and other financial obligations for
2004 as established by the Province for Municipalities in Ontario; and
d) The Treasurer be authorized to take any actions necessary in order to effect
the foregoing; and
6. Staff at The City of Pickering be given the authority to give effect hereto.
Report
Subject
OES 39-04 Date: December 2, 2004
Supply and Delivery of One Telescopic Boom Excavator Page 2
Q 41-2OO4
Executive Summary:
The purchase of a Telescopic Boom Excavator has been identified and approved in the
2004 Capital Budget. This machine will replace Municipal Property & Engineering
Division's existing unit number 110, a 1989 Badger 460. The Hydroscopic Boom
Excavator is an integral piece of heavy equipment capable of performing a variety of
tasks. Curb and sidewalk construction and repair, ditching to address standing water
concerns, as well as trenching and excavating are jobs performed with this versatile
piece of equipment. Supply & Services invited two (2) vendors to participate in the
bidding process. Upon careful examination of all quotations received by Supply &
Services as well as extensive field evaluation and testing, the Municipal Property &
Engineering Division recommends acceptance of the Iow bid submitted by Strongco
Equipment in the amount of $294,662.00 (GST and PST extra), and that the total net
purchase cost of $318,234.96 be approved.
Financial Implications:
1.
Source of Funds:
Account
2004 Capital Budget 2320/6178
Telescopic Boom Excavator
-5 year debt
5-year Internal Loan
Current Funds
Project Code
04-2320-004-00
Amount
$255,000
$ 63,000
$ 235
$318,235
2.
Estimated Project Costing Summary
Q-41-2004 Telescopic Boom Excavator
Air-conditioning tax
Trade in credit for Unit 110
Sub Total.
G.S.T.
P.S.T.
Total Purchase Cost
G.S.T. Rebate
Net Purchase Cost
$314,562.00
$100.00
($20,000.00)
$294,662.00
$20,626.34
$23,572.96
$338,861.30)
($20,626.34)
$318,234.96
CORP0227-07/01
Report
Subject
OES 39-04 Date: December 2, 2004
Supply and Delivery of One Telescopic Boom Excavator Page 3
Q 41-2004
Purchase Cost (Under) Over Approved Funds $63,235
Note, the overexpenditure is understated due to the GST 3% rebate savings that was
already captured in the 2004 Current Budget.
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and has provided the recommendations for the financing of the expenditures contained
in this report. This overexpenditure is due to increasing costs for such specialized
equipment and the fact that the City has not acquired such equipment for several years
resulting in the use of an obsolete estimate for budget purposes.
Background
The hydroscopic boom excavator is one of the most versatile and integral pieces of
equipment within the Municipal Operation's fleet. As one of the City's largest unit, it is
used for rural road maintenance (ditching and culvert replacements/installations),
sidewalk removals, excavating, catch basin repairs, playground replacement and many
other key operating functions. In 2004, one of the City's two 460 Badgers, unit 110,
was identified for replacement. The replacement of this important unit required a
detailed and comprehensive process to ensure the City of Pickering acquired the right
piece of equipment at a market competitive price.
The process began with Fleet Operations, in conjunction with Supply & Services
initiating a technical review of equipment related to need. Two vendors, Strongco
Equipment and Amaco Construction Equipment Company, provided technical
information, which included Icad and safety specifications for a Badger Model 460 and
a Gradall Model 4100 respectively. From there, equipped with a prepared set standard
criteria developed for evaluation purposes, key staff attended an operations
demonstration. This demonstration afforded City of Pickering staff an opportunity to test
and evaluate the equipment's capabilities using the pre-determined criteria. Some of
the tests included placing the equipment in situations that reflect "real-life" scenarios.
Lifting, digging, grading and maneuvering operations were trialed and evaluated in
order to assess performance. In addition, other "like" organizations (private and public)
were consulted about their experiences with the equipment in order to add yet another
level of information, to best assess the equipment and put the municipality in a better
position to make an informed decision. After each case and after every session, a
findings brief was prepared for the file.
Once the initial assessment was completed and a determination was made of the most
suitable specifications, Quotation Q-41-2004 was developed and released by the
Corporation to the two vendors that participated in the initial examination. The result of
this extensive process was that the preferred excavator and vendor, based on price,
CORP0227-07/01
Report
Subject
OES 39-04 Date: December 2, 2004
Supply and Delivery of One Telescopic Boom Excavator Page 4
Q 41-2004
was a Badger Model 460 distributed by Strongco Equipment. At $294,662.00 excluding
applicable taxes, it represents the best value for the Corporation.
The total net cost of approximately $318,235 is $63,235 over the amount provided for in
the 2004 budget which will be financed through a combination of internal loans and
currents funds.
Attachments:
1. Memo from Supply & Services dated October 19, 2004
Prepared By:
Gr~.nt Smith
Superv~or, Fleet Operations
gera FelgeCnacher
Manager, Supply & Services
~(Acting) Chief Administrative ~Dfficer
Ri,C~a~rd W. H-'-~CtS'orn, P. Eng.
~i'vision Head
(Municipal Property & Engineering
Gillis A. Paterson
Director, Corporate Services & Treasurer
RH/vn
Attachments
Copy: Chief Administrative Officer
pRi~Ck% r~ nmge ~.d e~ o n s i/d~t, o n of
omas J~..,/~, ¢_,hCe'¢ Administrative Officer
CORP0227-07/01
02,
CORPORATE SERVICES DEPARTMENT
MEMORANDUM
October 19, 2004
To:
Richard Holborn
Division Head, Municipal Property & Engineering
From:
Bob Kuzma
Purchasing Analyst
Subject:
Q-41-2004 - Hydroscopic Excavator
Closing:
Friday, October 15, 2004, 12:00 Noon
During and subsequent to Quotation No. Q-27-2004, Supply & Services and
Fleet Operations conducted equipment demonstrations on
telescopic/hydraulic boom excavators. Upon review of the equipment
performance and capabilities, two manufacturer brands, Gradall Model 4100
II and Badger Model 460 were deemed capable of providing an excavator
for the City's requirements.
Due to the identification of a specific manufacturer model and the inclusion
for an optional provision to trade in the existing excavator in an effort to
reduce the capital cost, Quotation No. Q-41-2004 was developed and
released based on the revised specifications. In conformance to the
Ontario/Quebec Trade Agreement, an advertisement was placed on the
City's website to ensure competition was maintained.
Quotations were invited from two manufacturer distributors, Strongco
Equipment and Amaco Construction Equipment Company, both have
confirmed their designated distributorship in Ontario. Bidders have
acknowledged Addendum #1 and have enclosed all information requested
including a list and prices of optional equipment and a statement regarding
after-sales support.
Copies of quotation documents are attached. Quotations shall be
irrevocable for 60 days after the official closing date and time.
Please review information provided and advise if the Iow bid submitted by
Stongco Equipment is acceptable.
In accordance with Purchasing Policy Item 04.05 revised, an award
exceeding $79,626.00 is subject to Council approval.
Richard Holborn
October 19, 2004
Page 2
Include in your report to Council:
1. if reference information is acceptable
2. the appropriate account number(s) to which this
work is to be charged and the budget amount(s)
assigned thereto
3. Treasurer's confirmation of funding
4. related departmental approvals
5. any reason(s) why the Iow bid of Strongco
Equipment is not acceptable, and
6. related comments specific to the project.
Approved 2004 Capital Budget
Capital Project Debt- 5 Year Debt
Code Financing Description
04-2320-004-00 $255,000.00 Hydroscopic Boom Excavator-
Replace Unit # 110
Summary
Optional
Equipment Trade-In G.S.T, P.S.T. Total
Company Cost
Offered
Strongco $314,662.00 ($20,000.00) 20,626.34 23,572.96 $338,861.30
Equipment
Amaco
Construction $325,100.00 ($3,500.00) 22,512.00 25,728.00 $369,840.00
Equipment
Please do not disclose pricing to enquiring bidders. Bidders will be advised of
the outcome.
Subject to Council approval, an approved "on-line" requisition will also be
required to proceed.
If you require further information, please feel free to contact me.
bk/
Attachments