HomeMy WebLinkAboutOES 22-08
REPORT TO
EXECUTIVE COMMITTEE
Report Number: OES 22-08
Date: July 7,2008
q
From:
Everett Buntsma
Director, Operations & Emergency Services
Subject:
Supply & Delivery of 4-Ton Dump Truck
Q-32-2008
File: A-1440
Recommendation:
1. That Report OES 22-08 of the Director, Operations & Emergency Services
regarding the supply and delivery of a 4-Ton Dump Truck be received; and
2. That Quotation No. Q-32-2008, as submitted by Scarborough Truck Center Inc.
for the supply and delivery of a 4-Ton Dump Truck with Snow Plow and Wing,
and Electronic Salt Metering, in the amount of $158,809.00 (PST, GST and
license extra) be accepted; and
3. The total gross purchase cost of $179,454.17 and a net purchase cost of
$171,513.72 as outlined in Report OES 22-08 of the Director, Operations &
Emergency Services, be approved; and
4. That Council authorize the Director, Corporate Services & Treasurer to finance
the purchase through the issuance of debt; and
(a) that debt financing through the Regional Municipality of Durham in the
amount of $171,000.00 for a period not exceeding five (5) years, at a rate to
be determined, be approved and the balance of approximately $513.72 plus
financing costs be financed from current funds; and
(b) that financing and repayment charges in the amount of approximately
$39,500 be included in the annual current budget for the City of Pickering
commencing in 2009 and continuing thereafter until the loan is repaid; and
(c) that the Director, Corporate Services and Treasurer has certified that this
loan and the repayment thereof falls within the City's debt and financial
obligations approved annual repayment limit for debt and other financial
obligations for 2008 as established by the Province for municipalities in,
Ontario; and
Report OES 22-08
July 7, 2008
Subject: Supply & Delivery of 4-Ton Dump Truck
Page 2
, ,
~ 'i II
I / '.)
(d) that the Treasurer be authorized to take any actions necessary in order to
effect the foregoing; and
(e) staff at the City of Pickering be given the authority to give effect thereto
Executive Summary: The City of Pickering currently utilizes a fleet comprised of
nine (9) 4-ton dump trucks and three (3) 5-ton dump trucks to perform a wide range of
road maintenance activities including winter control. A replacement for the oldest 4-ton
truck was approved in the 2008 Capital Budget. Three vendors were invited to bid, of
which all responded.
Upon review, the vehicle that meets the City's requirements and specifications is being
recommended. The vehicle proposed by the two low bidders do not, in staff's opinion
meet the overriding requirement for engine torque. This was also the situation in 2006
when the City purchased its last new 4-ton truck.
Financial Implications:
1. Approved Source of Funds
2008 Roads Capital Budqet
Item
Proiect Code
Source of
Funds
Debt - 5 years
Available
Required
4-Ton
Dump Truck
With Plow
& Wing
5320.0801.6158
$190,000.00 $171,513.72
Estimated Project Costing Summary 4-Ton Dump Truck
$158,809.00
Q-32-2008
Subtotal
GST
PST
Total Gross Purchase Cost
158,809.00
7,940.45
12,704.72
179,454.17 I
I
GST Rebate
Total Net Purchase Cost $171,513.72
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditure contained in this report and concurs.
CORP0227-07/01 revised
Report OES 22-08
July 7, 2008
Subject: Supply & Delivery of 4-Ton Dump Truck
Page 3
J 1
. i
Sustainability Implications: The engine powering this truck meets the
Environmental Protection Agency's Tier II emission standard. This will significantly
reduce the amount of harmful emissions created by the operation of the vehicle as well
as provide increased fuel economy. This purchase conforms to the environmental and
economic lens of sustainability.
Background: The purchase of a 4-Ton Dump Truck with Plow and Wing was
identified and approved by Council in the 2008 Capital Budget. Utilizing existing
specifications from past purchases, Supply & Services invited (3) three vendors to
participate in the bidding process, of which all (3) three have responded.
When the City called for Quotations for the purchase of a 4-Ton tuck in 2006 (see
Report OES 25-06 attached), the low bidder, Freightliner Mid Ontario did not provide
the required torque specified in the quotation document. At that time Council supported
the decision not to accept their bid. The vehicle purchased did meet the required
torque specification and performed well during the extremely heavy 2007-08 winter
control season.
After a complete review of all bids submitted it has been determined that the bid
submitted by Harper Freightliner does not meet the required torque specification.
Although the bid submitted by Donway Ford Sales indicated that they were able to meet
the requirement, staff have been informed by the bidder that the manufacturer will not
supply the engine quoted in this class of truck, therefore they also cannot meet the
specification.
Based upon these facts as well as a careful examination of all quotations received by
Supply & Services, the Municipal Property and Engineering Division recommends the
acceptance of the bid submitted by Scarborough Truck Inc, in the amount of
$158,809.00 (PST, GST and License extra) and that the total net purchase cost of
$171,513.72 be approved. This report has been prepared in conjunction with the
Manager, Supply & Services who concurs with the foregoing.
Attachments:
1. Memo from Supply & SeNices
2. Report OES 25-06
3. By-law to Confirm the Authorization of the Issuance of Debentures in the amount
of $171 ,000 for the Supply & Delivery of 4-Ton Dump Truck
CORP0227-07/01 revised
Report OES 22-08
Subject: Supply & Delivery of 4-Ton Dump Truck
July 7, 2008
Page 4
1 ~)?
Prepared By:
I~~
/'~L
Supervisor, Fleet Operations
Vera Felgemac er
C.PP., CPPO, CPPB, C.P.M., CMM III
Manager, Supply & Services
GS:cr
Attachments:
Copy: Chief Administrative Officer
Recommended for the consideration
of Pickering City Council
APproved~:_~dorse~ty:
/'/ if
~./' ... . .....,(/
(-,/// //\
. ...../-, / /
tsma
perations & Emergency
~..
.s:::.........-.... ..~
Gillis Paterson
Director
Corporate Services & Treasurer
CORP0227-07/01 revised
'f
Gi~
I
c
,,:~
CiiLJ c~
,
" .-} '~'.
'. f.
t /_...
To:
Richard Holborn,
Division Head, Municipal Property & Engineering
MEMO
RECElVElJ
May 26, 2008
MAY 2 6 2008
CITY OF PICKERING
MUNICIPAL PROPERTY & ENGINEERING
From: Bob Kuzma
Senior Purchasing Analyst
Copy: Subject: Q-32-2008 Supply & Delivery
of 4 Ton Dump Truck
Quotations have been received for the above project. Three (3) companies were invited to
participate of which three (3) responded. Quotations shall be irrevocable for 60 days after the
official closing date and time.
Copies of the quotations are attached for your review along with the summary of costs. Each line
item provides a space for the vendor to indicate a "Yes, No, Specify" to provide the City with
information and details to subjectively review each line item and the sum total of all specifications.
Specifications item #4 (b) states: A mark in the "no" space shall mean a deviation from the
specification and must be further detailed in the SPECIFY space. Deviations will be evaluated
and acceptance of these deviations IS within the discretion of the City of Pickering. .
Due to the fact that delivery date of these vehicles is not certain, it is not possible to state an exact
cost for licensing, therefore prices will be stated as license fee extra. The quotation submitted by
Harper Freightliner in the total amount of $172,588.29 (license fee extra) is the low quotation,
subject to further evaluation of the vehicles conformance to specification.
Please advise with your recommendation any reason the low bid from Harper Freightliner is not
acceptable.
SUMMARY
After
Vendor Amount G.S.T. P.S.T. Lie. Total Calculation
Fee Check
Harper $152,733.00 $ 7,636.65 $12,218.64 Extra $172,588.29 $172,588.29
Freightliner
Donway Ford $155,357.00 $ 7,767.85 $12,428.56 Extra $175,553.41 $175,553.41
Sales
Scarborough $158,809.00 ~7,940.45 ~12,704.72 Extra $179,454.17 $179,454.17
Truck Center
This award is subject to Council approval.
'1 'i 4.
I ,/ .
Include in your report to Council:
I
"-c b
1. the appropriate account number(s) to which this work is to be charged and the
budget amount(s) assigned thereto
2. Treasurer's confirmation of funding
3. related departmental approvals
4. any reason(s) why the low bid of Harper Freightliner is not acceptable, and
5. related comments specific to the project
Bidders will be advised of the outcome. Please do not disclose pricing to enquiring bidders.
Subject to Council approval, an approved "on-line" requisition will also be required to proceed.
If you require further information or assistance during the evaluation phase of this quotation
call, contact me at extension 2131 .
May 26,2008
Q-32-2008 Supply & Delivery of 4 Ton Dump
Truck
Page 2
.-
~
~"',... '
i ::.c ,) REPORT TO
EXECUTIVE COMMITTEE
u72
,.t ;-J I
! ,/ ~)
Report Number: OES 25-06
Date: June 12, 2006
From:
Everett Buntsma
Director, Operations & Emergency Services
Subject:
Supply and Delivery of 4-Ton Truck
- Q-20-2006
- File: A-2130
Recommendation:
1. That Report OES 25-06 regarding the supply and delivery of a 4 Ton Dump Truck
be received and that:
2. Quotation No. Q-20-2006 submitted by Scarborough Truck Centre Inc. for the
supply and delivery of a 4 Ton Dump Truck with snow plow and wing, and
- electronic salt metering in the amount of $157,624.00(GST, PST and license extra)
be accepted;
3. The total gross purchase cost $180,432.36 and a net purchase cost of
$170,974.92 be approved;
4. That Council authorize the Director, Corporate Services & Treasurer to finance the
purchase through the issuance of debt: and
a) That debt financing through the Region of Durham in the amount of
$170,000.00 for a period not exceeding five (5) years, at a rate to be
determined, be approved and the balance of approximately $975 plus
financing costs be financed from current funds; and
-
b) That financing and repayment charges in the amount of approximately
$39,000 be included in the annual Current Budget for the City of Pickering
commencing in 2007 and continuing thereafter until the loan is repaid; and
c) That the Director, Corporate Services & Treasurer has certified that this loan
and the repayment thereof falls within the City's debt and financial
obligations approved annual repayment limit for debt and other financial
obligations for 2006 as established by the Province for municipalities in
Ontario; and
d) That the Treasurer be authorized to take any actions necessary in order to
effect the foregoing: and
1,7 'i
- ..
Report OES 25-06
~..',
~ -c ')
)-f) REPORT#tL:> . Date: June 12, 2006
-
Subject: Supply & Delivery of 4-Ton Truck
". ,") h Q-20-2006
I '
.~- '-~
Page 2
5. Staff at the City of Pickering be given the authority to give effect thereto.
Executive Summary: The City of Pickering has a fleet of 4 ton and 5 ton dump
trucks that are used year round for road maintenance activities including sanding.
salting and snow plowing. A replacement for the oldest 4 ton truck in the fleet was
approved in the 2006 Capital budget. Six vendors were invited to submit bids and two
bids were received. Upon review, the vehicle that meets the City's requirements is
being recommended. The vehicle proposed by the low bidder does not, in staff's
opinion, meet the overriding requirement for engine torque.
Given new emission requirements that will increase the cost of these trucks in January
2007, orders being placed at this time are significant resulting in extended delivery
times and actual uncertainty of availability. Therefore, the sooner Council approval is
received and the order is placed, the better chance the City has at receiving acceptance
and delivery. Scarborough truck has advised that delivery would be in December 2006.
The vehicle from Freightliner would be available in March 2007.
-
Financial Implications:
1.
Approved Source gf Funds
Total Approved Funds
Amount
$175.000.00
$175.000.00
2006 Capital Budget
Debt (5 years)
New Chart of Accounts
5320.0602.6158
2.
Estimated Project Costing Summary
Sub Tolal
GST (6%)
PST
License
Total Gross Purchase Cost
$157.624.00
$157,624.00
$9,457.44
$12,609.92
$741.00
$180,432.36
($9.457.44)
$170,974.92
Q-20 -2006
4 Ton Dump Truck
-
GST Rebate
Total Net Purchase Cost
Report DES 25-06
c ~<. c ;)
ri~-':"'Date: June 12, 2006
074
,,-1
-
Subject: Supply & Delivery of 4-Ton Truck
Q-20-2006
'. ') '7
Page 3 'i :/ I
3.
Project Cost under (over) Approved Funds
$4025.08
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditures contained in this report and concurs.
Background: The purchase of a 4-Ton Dump Truck with snow plow and wing
and electronic salt metering was approved by Council in the 2006 Capital Budget.
Through market research and analysis of emerging technology in winter control, Fleet
Operations compiled specifications for this piece of equipment. Supply & Services
invited six (6) vendors to participate in the bidding process of which two (2) have
submitted quotations.
--
The Supervisor, Fleet Operations advises that the low bid submitted by Freightliner Mid
Ontario does not provide the required engine torque specified in the document. A
torque of 1050 pound-foot at approximately 1500 RPM is required to operate the
vehicle efficiently and safely with the added load of the snow plow, wing, hydraulic
systems and salt metering device. The bid submitted by Scarborough Truck Centre
provides the torque of 1050 pound-foot at 1200 RPM whereas the bid from Freightliner
Mid Ontario only provides 950 pound-foot at 1500 RPM. This difference of 100 pound-
foot (or 10%) can be significant for vehicle performance, especially when considering
the topography and terrain of Pickering. A review of other municipalities in Durham
indicate others {Clarington and Whitby} are purchasing trucks with high torque engines
manufactured by International or Stirling.
The bid from Freightliner Mid Ontario indicates the engine supplied is a wet sleeve
engine, however, upon further research it can be stated that the MBE 900 engine is not
a true wet sleeve engine. It is a cast iron block with induction hardened cylinder bores.
The block cannot be replaced as a wet sleeve can, therefore, overhauls are more
complicated and not as cost effective.
The City's fleet of 4 ton and 5 ton dump trucks consists of four International trucks,
model year 1997-2000, five Freightliner trucks; model year 2001-2003 and three
International trucks; model year 2005-2006. The International truck has proven to be
reliable and several have been in service beyond the desirable seven-year life cycle.
The City's heavy equipment operators that operate the latest model International trucks
advise that the in-cab comfort and overall ride of the latest model International trucks
- are superior. This is important during winter control events that can typically run for 13
hours when salting and plowing is required.
Should the order be accepted, Scarborough Truck Centre advises that delivery would
be in December 2006. A call to Freightliner Mid Ontario indicated delivery would be in
March 2007.
u.,~
Report OES 25-06
L-/ ~J
. ",: L':>
-Date: June 12, 2006
i--)
-
Subject: Supply & Delivery of 4-Ton Truck
1 ) R Q-20-2006
Page 4
Upon careful examination of all quotations received by Supply & Services the Municipal
Property & Engineering Division recommends acceptance of the bid from Scarborough
Truck Centre Inc. in the amount of $157,624.00 (GST, PST and License extra) and that
the total net purchase cost of $170.974.92 be approved. This report has been prepared
in conjunction with the Manager Supply & Services who concurs with the foregoing.
Attachments:
1. Supply & Services Memorandum
Prepared By:
.' ~~?C~h
Grant Smith
Superv'sor, Fleet Operations
-
Everett untsma
Director
Operations & Emergency Services
~~-"-~
'-Gruis A. Paterson
Director, Corporate Services & Treasurer
Vera A. Felgemacher
Manager, Supply & Services
RH:GS
Attachments
Copy: Chief Administrative Officer
.-
consideration of
-
"?'
"
"
,l,
THE CORPORATION OF THE CITY OF PICKERING
i () 9
BY-LAW NO.
Being a by-law to confirm the authorization of
the issuance of debentures in the amount of
$171,000 for the supply and delivery of a 4-
Ton Dump Truck in the City of Pickering
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 approved Report OES 22-08 at its meeting of July
14, 2008 pursuant to Resolution /08 and awarded Quotation Q-32-2008 for the
supply and delivery of a 4-Ton Dump Truck at that meeting; and,
WHEREAS the Council of the City is proceeding with the supply and delivery of a 4-Ton
Dump Truck in the City of Pickering; and,
WHEREAS before the Council of the City authorized the supply and delivery of a 4-Ton
Dump Truck, 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.
CORP0223-07/01
-)
:1...
BY-LAW NO
130
.J.,
Page 2
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF
PICKERING HEREBY ENACTS AS FOLLOWS:
1. That the estimated costs of the supply and delivery of a 4-Ton Dump Truck in the
amount of $171,513.72 be financed as follows:
a) That the sum of $171,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed five (5) years;
b) That the balance of $513.72 be funded from the 2008 Current Budget;
2. 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 2009 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 14th day of July, 2008.
David Ryan, Mayor
Debi A. Wilcox, City Clerk