HomeMy WebLinkAboutOES 29-09
REPORT TO
COUNCIL
PIC
Report Number: OES 29-09
Date: May 19, 2009
175
From: Everett Buntsma
Director, Operations & Emergency Services
Subject: Quotation No. Q-23-2009
Supply & Delivery of Articulated Variable Horse Power Motor Grader
File: A-1440
Recommendation:
1. That Report OES 29-09 of the Director, Operations & Emergency Services be
received;
2. That Q-23-2009, as submitted by Nortrax for the supply and delivery of (1) one
2009 John Deere 870G Articulated Motor Grader in the amount of $258,736.10
(PST and GST included) be accepted;
3. The total gross purchase cost of $258,736.10 (GST & PST included) and net
purchase cost of $247,287.60 be approved;
4. That council authorize the Director, Corporate Services & Treasurer to finance
the supply and delivery of the Articulated Motor Grader in the amount of
$247,287.60 as follows:
(a) that the sum of $ 245,000 be financod by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed (5) five years, at
a rate to be determined
(b) the balance sum of $2,287.60 to be funded from the 2009 Current Budget
(c) the annual repayment charges in the amount $ 55,035 be included in the
annual Current Budget for the City of'Pickering, commencing in 2010 and
continuing thereafter until the loan is repaid; and any financing cost to be paid
out of the Current Budget;
(d) the Director, Corporate Services & Treasurer has updated the City's 2009
Annual Repayment Limit and the repayment thereof falls within the City's
Annual Repayment Limit for debt andi financial obligations, as established by
the Province for municipalities in Ontario and would not cause the City to
exceed the updated limit, and therefore, Ontario Municipal Board approval is
not required prior to City Council's authorization;
(e) undertake the financing of this project or portions thereof that cannot be
accommodated through the foregoing through internal loans, Infrastructure
Ontario - OSIFA Loan Program, or a '.,financial institution offering long term
financing under similar terms and conditions;
Report OES 29-09 May 19, 2009
Subject: Articulated Variable Horse Power Motor Grader Page 2
176
(f) the Treasurer be authorized to take any actions necessary to effect the
foregoing
5. 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;
6. That the draft by-law attached to this report be enacted; and
7. That the appropriate officials of the City of Pickering be given the authority to give
effect thereto.
Executive Summary: The City of Pickering currently utilizes two motor graders to
maintain approximately 220 lane kilometers of ravel surface road. This maintenance
encompasses road surface conditioning as wel?as winter control. The replacement of
the oldest machine, a 1999 Champion 740 has been identified in the 2009 Capital
Budget.
Financial Implications:
1. Approved Source of Funds
2009 Capital Budget Debt (5 years)
Item Proiect Code Source of Available Required
Fun s
Variable Horse 5320.0903.1701 Debt $300,000 $247,287.60
Power Motor
Grader
2. Estimated Project Costing Summary
Quotation Amount 5320.0903.6178
Q-23-2009 $269,970.00
Trade in Credit (41,000)
GST 11,448.50
PST 18.317.60
Total Gross Project Cost 258,736.10
GST Rebate (11,448.50)
Total Net Project Cost $247,287.60
CORP0227-07/01 revised
I
Report OES 29-09 May 19, 2009
Subject: Articulated Variable Horse Power Motor Grader Page 3
Project cost under (over) the approved funds by $52,712.40
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditure contained ',in this report and concurs.
Sustainability Implications: The engine powering this piece of equipment meets the
Environmental Protection Agency's Tier III regulation for emission standards. This
standard significantly reduces the amount of harmful emissions produced by the
operation of the grader. As well, product improvements such as "on ground" refueling
and maintenance check points which do not require the operator to climb on the
machine provide for a safer work environment.
Background: The purchase of an Articulated Motor Grader was identified and
approved by Council in the 2009 Capital Budget. This vehicle will replace City Unit
#107, a 1999 Champion, 740 VHP Motor Grader. This machine, which was refurbished
in the year 2006 has experienced a catastrophic failure of the transmission during winter
control operations in early 2009. Since that time a rental machine has been utilized to
maintain service levels. Specifications for a replacement were compiled using
information from a previous new equipment purchase in 2002, on-site demonstrations
and attendance at this year's Municipal Equipmeent Tradeshow in February 2009. At the
tradeshow, staff were able to visit displays and equipment from three major
manufacturers; Caterpillar, Volvo and John Deere. The Caterpillar machines are all
joystick controlled and the demonstration simulotor made it evident that this is not a
good choice for the type of work we perform. During and after the tradeshow,
arrangements were made to demonstrate a John Deere 870D (2008 model) with a 9
litre engine. Subsequently, John Deere made their 870G (2009 model) available and
both were used on City roads in late February/March 2009. Volvo did not make a unit
available for demonstration.
On April 18, 2009 request for quotations were released and Supply & Services invited
three vendors to participate in the bidding process, of which two have responded. The
low bid submitted by Strongco/Volvo for a 2009 Volvo G940 deviates from the 9 litre
minimum specification for engine size but has been evaluated. The engine powering
the machine being offered by Strongco/Volvo is a 7.2 litre engine, producing only 754
foot pounds of torque at 1550 RPM. The City's existing motor grader being replaced
utilizes a 10.8 litre engine producing approximately 875 foot pounds of torque, has been
very effective in heavy snow conditions experienced during the past two seasons of
Winter Control and has accumulated 12,000 hours of running time. Approximately 80%
of our grader needs are for heavy work requiring larger torque, such as snow clearing,
regrading and overturning gravel roads, and spreading fresh gravel. It is the opinion of
the Municipal Property & Engineering Division that an engine not meeting the minimum
CORP0227-07/01 revised
Report OES 29-09 May 19, 2009
Subject: Articulated Variable Horse Power Motor Grader Page 4
178
9 litre specification and not producing high torque output at a relatively low RPM would
experience a shortened life cycle when required to perform this type of work. The bid
submitted by Nortrax for a 2009 John Deere 870G has a 9 litre engine, and although
smaller in size than the City's existing motor graders, it produces 949 foot pounds of
torque at 1000 RPM. The Municipal Property & Engineering Division therefore
recommends acceptance of the bid submitted by Nortrax, which has met all
specifications set in Q-23-2009 in the amount of $258,736.10 (GST & PST included)
and that the net purchase cost of $247,287.60 be approved.
Attachments:
1. Supply & Services Summary Memorandum
2. By-law to confirm the authorization of the Issuance of debentures in the amount
of $245,000 for the supply and delivery of Articulated Variable Horse Power
Motor Grader
Prepared By: Approved/Endorse By:
Ric rd Holbor verett sm
D' sion Head ~irector
Municipal Property & Engineering Operations & Emergency Services
Grant Smith illis Paterson
Supe isor, Fleet Operations Director
Corporate Services & Treasurer
Vera A. F gemacher
C.P.P., CPPO, CPPB, C.P.M., CMM III
Manager, Supply & Services
GS:cr
Attachments
CORP0227-07/01 revised
I
Report OES 29-09
May 19, 2009
Subject: Articulated Variable Horse Power Motor Grader
Page 5
1
Copy: (Acting) Chief Administrative Officer
Chief Administrative Officer
Recommended for the. consideration
of Pickering City Council
Thomas J. ui v
, RDM , CMM II
Chief Administ ative Officer
CORP0227-07/01 revised
I
ATTACHMENT# TO REPORT#
Cif of _ 29-.0 y
PIC E
MEMO
To: Richard Holborn, April 24, 2009
Division Head, Municipal Property & Engineering
RECEIVED
From: Bob Kuzma
Senior Purchasing Analyst APR 2 4.2009
CITY OF PICKERIN
Copy. M
NICPALPRO RT &ENG!NEERINNGG
Subject: Quotation-for Supply &
Delivery of Articulated
Variable Horsepower Motor
Grader -Quotation No. Q-23-
2009
Quotations have been received for the above project. Three. (3) companies were invited to
participate of which two (2) 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.
The quotation submitted by Strongco/Volvo the total amount of $250,408.00, taxes included, is the
low quotation, subject to further evaluation of the vehicle's specifications.
Please advise with your recommendation any reason the low bid from StrongcoNolvo is not
acceptable.
SUMMARY
Taxes included
After
Trade in
Vendor Amount Sub Total G.S.T P.S.T. Total Calculation
(Credit) Check
Strongco/ $256,600.00 35,000.00 221,600.00 $11,800.00 $17,728.00 $250,408.00 250,408.00
Volvo
Nortrax $269,970.00 1,000.00 228,970.00 11,448.50 18,317.60 258,736.10 $258,736.10
i
ATTACHMENT# 4-rte TOREPgRT# DES ~-Dl
Z-
P o ' 'on is made in Supplementa~rms and Conditions to arrange for demonstrations.
Pursuant to Standard Quotation Terms and Conditions, item 4 - Samples:
Samples shall also mean demonstration of vehicle and/or equipment being quoted upon,
including provision for City staff to operate the vehicle being quoted upon.
This award is subject to Council approval.
Include in your report to Council:
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 SrongcoNolvo is not acceptable, and
5. related comments specific to this acquisition
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.
April 24, 2009 Page 2
Q-23-2009 Supply & Delivery of Road Grader
THE CORPORATION OF THE CITY OF PICKERING 8 2
BY-LAW NO.
Being a by-law to authorize the Supply &
Delivery of Articulated Variable Horse Power
Motor Grader and the issuance of debentures
therefore in the amount of $245,000
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 projceed in respect of the Supply &
Delivery of Articulated Variable Horse Power Motor Grader; and,
WHEREAS before authorizing the project to proceed in respect of the Supply &
Delivery of Articulated Variable Horse Power Motor Grader 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 29-2009 on the date hereof for the Supply and
Delivery of Articulated Variable Horse Power Motor Grader and awarded Quotation
Q-23-2009 for the Supply & Delivery of the Articulated Variable Horse Power Motor
Grader project.
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By-Law No. Page 2
183
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 & Delivery of Articulated
Variable Horse Power Motor Grader";
2. That the estimated costs of the project in the amount of $247,287.60 be financed as
follows:
a) That the sum of $245,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed (5) five years;
b) That the sum of $2,287.60 be funded from'the 2009 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 2010 and continuing
thereafter until the loan is repaid.
BY-LAW read a first, second and third time and finally passed this 19th day of May
2009.
David-Ryan, Mayor
Debi A. Wilcox, City Clerk
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