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HomeMy WebLinkAboutOES 42-08 Cit11 (J~ REPORT TO EXECUTIVE COMMITTEE Report Number: OES 42-08 Date: December 8, 2008 o 1 From: Everett Buntsma Director, Operations & Emergency Services Subject: Supply & Delivery of Heavy Rescue Vehicle 0-67 -2008 File: A-1440 Recommendation: 1. That Report OES 42-08 of the Director, Operations & Emergency Services regarding the supply and delivery of One (1) Heavy Rescue Vehicle be received; 2. That Quotation No. 0-67-2008, as submitted by Safetek Emergency Vehicles for the supply and delivery of One (1) Heavy Rescue Vehicle, in the gross amount of $621,705 (PST exempt, GST included) and a net cost of $592,100 be accepted; 3. That the total gross project cost of $1,260,000 (GST included) including Ouotation No. 0-67-2008 and associated costs and the total net purchase cost of $1,200,000 be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to finance the supply and delivery of the Heavy Rescue Vehicle in the amount of $592,100 as follows: a) that the sum of $440,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten (10) years, at a rate to be determined; b) that the sum of $150,000 be funded by a contribution from the Ontario Power Generation (OPG); c) that the sum of$2,1 00 be funded from the 2008 Current Budget; d) to undertake the financing of this project or portions thereof that cannot be accommodated through the foregoing through internal loans, the Ontario Strategic Infrastructure Financing Authority (OSIFA) - Loan Program or a OES 42-08 Heavy Rescue Truck December 8, 2008 02 Page 2 financial institution offering long term financing under similar terms and conditions; e) to make any changes, adjustments, and reVISions to amounts, terms, conditions or any other actions necessary in order to effect the above directions of Council; f) 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 2008 as established by the Province for municipalities in Ontario; g) the Treasurer be authorized to take any actions necessary to effect the foregoing; 5. That the Council authorize the Director, Corporate Services & Treasurer to finance the associated costs including Extrication Tools and Fire Rescue Equipment, High Angle Equipment, and Ice/Water Rescue Equipment at a estimated cost not exceeding $607,900 as follows: a) that the sum not exceeding $605,000 to be financed by an internal loan over a period not to exceed ten (10) years, at a rate to be determined; b) that the sum of $2,900 to be funded from the 2008 Current Budget; c) that depending on the outcome of the quotation call on the Extrication Tools and Fire Rescue Equipment, the final financing cost will be subject to revision; 6. That the annual repayment charges for both the external debenture and internal loan in the amount of approximately $135,700 be included in the annual Current Budget for the City of Pickering commencing in 2009, continuing thereafter until the debenture and loan are repaid, and any financing cost to be paid out of the Current Budget; 7. That the Director, Corporate Services & Treasurer be authorized to apply any excess proceeds raised to other capital projects for which long-term financing is required, as is permitted under the Municipal Act, 2001; 8. That the draft by-law attached to this report be enacted; and 9. That the appropriate officials of the City of Pickering be given the authority to give effect thereto. OES 42-08 Heavy Rescue Truck December 8, 2008 Page 3 03 Executive Summary: The purchase of a Heavy Rescue Vehicle with the associated tools and equipment was identified and approved by Council in the 2008 Capital Budget. This vehicle will replace the City's Unit #514, a 1991 International Rescue Vehicle. At this time we wish to proceed with the purchase of the Heavy Rescue Vehicle under Quotation No. Q-67-2008. A separate quotation call will be undertaken to solicit pricing for the associated extrication tools and fire rescue equipment required. Depending on the value of the quotation, this will be reported to Council accordingly. The total estimated cost is being presented in this report in order to obtain Council approval to formalize the financing required for this project. OES 42-08 Heavy Rescue Truck December 8, 2008 04 Page 4 Q-67-2008 Heavy Rescue Vehicle $592,100 Associated Costs: Extrication Tools & Fire Rescue 607,900 Equipment, High Angle and Ice/Water Rescue Equipment Total Pu rchase Cost 1,200,000 GST 60,000 Total Gross Purchase Cost 1,200,000 GST Rebate (60,000) Total Net Purchase Cost $1,200,000 Project cost under (over) Approved Funds 0 As the purchase of the Heavy Rescue Vehicle and the associated extrication tools and equipment was not solicited under the same quotation call, the Treasurer feels that the component related to the extrication tools and equipment may not be deemed as part of a fully equipped Heavy Rescue Vehicle and resulting difficulty in obtaining external borrowing. Also, the associated extrication tools and equipment with various useful lives will affect the term set for the external debenture. Instead, internal bmrowing is being undertaken for the component related to the associated extrication tools and equipment. For external borrowing purposes, the financing of the Heavy Rescue Vehicle is to be isolated from the associated extrication tools and equipment. The attached draft debenture by-law to be enacted will incorporate the financing cost related to the supply and delivery of the Heavy Rescue Vehicle only. The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditure contained in this report and concurs. Sustainability Implications: This vehicle will be equipped with the latest technology in passenger safety which will include such features as roll stability control and supplemental inflatable restraints for all occupants. These options will provide increased protection to Fire Services personnel in emergency response situations. Also, the engine powering the vehicle meets the Environmental Protection Agency's latest emission standards, significantly reducing the amount of harmful remissions created by the operations of the vehicle. OES 42-08 Heavy Rescue Truck December 8, 2008 Page 5 us Background: The purchase of a Heavy Rescue Vehicle was identified and approved by Council in the 2008 Capital Budget. Specifications for the vehicle were compiled by the Fire Services Division after attending a Fire Safety conference, . tradeshows and completing an extensive review of the latest personnel safety and rescue technology, and were provided to Supply & Services to assist in developing a request for quotation document. Supply & Services invited five (5) vendors to participate in the bidding process, of which one (1) has responded. Upon careful examination of the only submission it is the recommendation of Pickering Fire Services that Quotation No. Q-67-2008 submitted by Safetek Emergency Vehicles in the amount of $621,705 (GST included) be accepted and the net purchase cost of $592,100 be approved. An awarQ exceeding $81,000 in a quotation process is subject to Council approval. It was deemed beneficial for the City to have separate quotation calls for the Heavy Rescue Vehicle and the associated tools and equipment in order to generate competition among suppliers specializing in such equipment. Suppliers specializing in such equipment can provide a better valuation of these products along with warranty and service. Quotations have been previously received for the supply and delivery of the high angle equipment and supply and delivery of ice/water rescue equipment. These two quotations did not exceed $81,000 and were not subject to Council approval. A separate quotatjon call will be undertaken to solicit pricing for the associated extrication tools and fire rescue equipment. At this time we are providing financing for the maximum amount as approved in the 2008 Capital Budget for the associated tools and equipment as the quotation has not been called and we are uncertain on the exact amount required. Also, the various tools and equipment required have differing useful lives, and thus affect the term to set for the internal loan. The final amount required along with the term of the internal loan will be finalized upon receiving the quotation call for the extrication tools and equipment. This will be reported to the Council accordingly. In 2006, OPG contributed $150,000 to the City towards the purchase of a new fire pumper. In 2008, the City requested that the same funds be diverted towards the purchase of a heavy fire rescue vehicle as the purchase of a new fire pumper was not approved by Council. In a letter dated May 5, 2008, OPG has officially provided permission to the City to reallocate the funds towards the purchase of a heavy fire rescue vehicle. This report has been prepared in conjunction with the Manager, Supply & Services and Senior Financial Analyst who concur with the foregoing. OES 42-08 Heavy Rescue Truck December 8, 2008 06 Page 6 Attachments: 1. Supply & Services Summary Memorandum 2. By-law to confirm the authorization of the Issuance of debentures in the amount of $440,000 for the supply and delivery of Heavy Rescue Vehicle Approved/Endorsed By: \ Ever unt Director, Operations & Emergency Services g~ Bill Douglas Fire Chief \ \ \ ~~~~~ >t.":~ ---'~ Gillis Paterson Director, Corporate Services & Treasurer C"1.'~:? Vera Felgemacher C.P.P., CPPO, CPPB, C.P.M., CMM III Manager, Supply & Services S2~ Caryn Kong Senior Financial Analyst GS:cr Copy: Chief Administrative Officer Recommended for the consideration of Pickering C' u il '\ Citq 0# l'J 7 ATTACHMEN"'f#L TO REPORT # ~5 "+.;'J.- o?;' MEMO To: Bill Douglas Fire Chief From: Bob Kuzma Senior Purchasing Analyst Supervisor, Fleet Operations Copy: Subject: Q-67-2008 - Supply & Delivery of Heavy Rescue Vehicle Closing: Wednesday, October 15, 2008 Quotations have been received for the above project. Five (5) companies were invited to participate of which one (1) has responded. Quotations shall be irrevocable for 60 days after the official closing date and time. A copy of the quotation is 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 anddetaiis 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. Specifications item #5 states: Where a manufacturer deviates from the quotation specifications they must indicate "NO" and then specify the changes. The acceptance of these deviations relies solely within the.discretion of the City. The quotation submitted by Safetek EmergencyVehicles in the total amount of $621,705.00 is the only quotation and is subject to further evaluation of the vehicles conformance to specification. Please advise with your recommendation any reason the bid from Safetek Emergency Vehicles is not acceptal;>le. SUMMARY' After Vendor Amount G.S.T. Total Calculation Check Safetek Emergency , $592,100.00 $ 29,605.00 $621,705.00 $621,705.00 Vehicles Bidders will be advised of the outcome. Please do not disclose pricing toenquiring 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 . Ibk Att: October 21,2008 Q-67-2008 Heavy Rescue Vehicle Page 2 ATTACHMENT#L TO REPORT#~- 4c2-(l)P THE CORPORATION OF THE CITY OF PICKERING 09 BY-LAW NO. Being a by-law to authorize the Supply & Delivery of Heavy Rescue Vehicle in the City of Pickering and the issuance of debentures therefor in the amount of $440,000. 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 wishes to proceed in respect of the Supply & Delivery of Heavy Rescue Vehicle; and, WHEREAS before authorizing the project to proceed in respect of the Supply & Delivery of Heavy Rescue Vehicle on the date hereof 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 is not required 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 OES 42-08 on the date hereof and awarded Quotation Q-67-2008 for the Supply & Delivery of the Heavy Rescue Vehicle project. NOW THEREFORE, THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: CORP0223-07/01 BY-LAW NO Page 2 ,0 1. That the City proceed with the project referred to as "Supply & Delivery of Heavy Rescue Vehicle"; 2. That the estimated costs of the project in the amount of $592,100 be financed as follows: a) That the sum of $440,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten (10) years; b) That the sum of $150,000 be funded by a contribution from the Ontario Power Generation (OPG); c) That the sum of $2,100 be funded from the 2008 Current Budget; 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 2009 and continuing thereafter until the loan is repaid. BY-LAW read a first, second and third time and finally passed this 15th day of December, 2008. David Ryan, Mayor Debi A. Wilcox, City Clerk