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HomeMy WebLinkAboutOES 06-10 Cirf Report to Council ' Report Number: OES 06-10 PI KERI Date: March 29, 2010 118 From: Everett Buntsma Director, Operations & Emergency Services Subject: Supply & Delivery of (2) Two Fire. Pumper Vehicles - File: A-1440 Recommendation: 1. That Report OES 06-10 of the Director, Operations & Emergency Services regarding the supply and delivery of (2) two Fire Pumper Vehicles be received; 2. That the proposal dated 01/30/10 and price negotiated with Smeal Fire Apparatus Co. by the Manager; Supply & Services for the supply and delivery of (1) one Fire Pumper Vehicle at a cost of $541,900 for the gross amount of $612,347.00 (HST included) and a net cost of $551,437 be accepted; 3. That the proposal dated 01/30/10 and price negotiated with Smeal Fire Apparatus Co. by the Manager, Supply & Services for the supply and delivery of a second Fire Pumper Vehicle at a cost of $541,900 less a credit of ($9,300) for the gross amount of $601,838.00 (HST included) and a net cost of $541,974 be accepted; 4. That the total gross project cost of $1,214,185.00 as negotiated by the Manager, Supply & Services and the total net purchase cost of $1,093,411.20 be approved; 5. That Council authorize the Director, Corporate Services & Treasurer to finance the supply and delivery of two (2) Fire Pumper Vehicles as follows: a) that the sum of $1,090,000 be financed by the issue of debentures by the Regional Municipality of Durham over a period not to exceed (10) years at a rate to be determined b) that the balance of $3,411.20 be funded from property taxes or other revenues available to the Treasurer c) that the annual repayment charges from the debenture in the amount of $141,160 be included in the annual Current Budget for the City of Pickering commencing in 2010, continuing thereafter until the debenture is repaid, and any financing cost be paid out of the Current Budget d) that the draft bylaw attached to this report be enacted; and, i Report OES 06-10 March 29, 2010 Subject: (2) Two Pumper Rescue Vehicles Page 2 119 e) that the appropriate officials of the City of Pickering be given authority to give effect thereto 6. 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 2010 as approved by the Province for municipalities in Ontario and therefore, the Ontario Municipal Board approval is not required. 7. The appropriate officials of the City of Pickering be given authority to give effect thereto. Executive Summary: We are seeking approval for the purchase of (2) two Fire Pumper Vehicles also referred to as pumper rescue vehicles. One "pumper rescue vehicle" with associated tools and equipment was identified and approved by Council in the 2009 capital budget. This vehicle will replace the City's Unit # 515, a 1994 Freightliner pumper rescue vehicle. A second "pumper" vehicle has been identified as needing replacement in the 2010 capital budget. This vehicle will replace the City's Unit #517, a 1997 Freightliner pumper rescue vehicle. At this time we wish to proceed with the purchase of these two new vehicles. A separate tender will be undertaken to solicit pricing for the associated firefighting rescue and extrication tools. This will be reported to Council accordingly and the financing costs related to the associated firefighting rescue and extrication tools will L be addressed at the same time. CORP0227-07/01 revised Report OES 06-10 March 29, 2010 Subject: (2) Two Pumper Rescue Vehicles Page 3 120 Financial Implications: Approved Source of Funds 2009 Capital Budget - Fire Services Item Project Code Source of Available Required Funds Pumper Rescue 5320.0913.6158 Debt (10-Year) $850,000 $550,000 Vehicle Approved Source of Funds 2010 Capital Budget Fire Services Item Project Code Source of Available Required Funds Pumper Vehicle 5340.1001.6158 Debt (10-Year) $750,000 $540,000 Total Debt $1,090,000 Internal Loan $457,920 Property Taxes $3,411 Grand Total $1,551,331 Summary 2009 Approved Pumper Rescue Vehicle $541,900 Applicable HST (1.76%) 9,537 Total $551,437 2010 Approved Pumper Vehicle $532,600 Applicable HST (1.76%) 9,374 Total $541,974 Associated Tools and Equipment $450,000 Applicable HST (1.76%) 7,920 Total $457,920 Gross Total Cost $1,551,331 Project over (under) Approved Funds ($48,669) CORP0227-07/01 revised Report OES 06-10 March 29, 2010 Subject: O 2 Two Pumper Rescue Vehicles Page 4 12 Effective July 1, 2010, the Harmonized Sales Tax (HST) will come into effect. With the new HST, municipalities will be charged 13% on most goods and services and subject to a rebate of 11.24%, resulting in a net cost of 1.76% to the City. As these two fire pumper vehicles will be delivered after July 1, 2010 we are able to factor in the impact of the new HST on these purchases and included on the above table. The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditure contained in this report and concurs. Sustainability Implications: These vehicles will be supplied with the latest in passenger safety technology including such features as roll stability control, supplemental inflatable restraints and data logging. These options will provide increased protection to Fire Service personnel in emergency response situations. Background: The purchase of a pumper rescue vehicle was identified and approved by Council in the 2009 Capital budget. Specifications to the vehicle were compiled by both the Fire Services Division and Fleet Services. Intensive research was conducted by both parties which included visiting trade shows, viewing apparatus from other fire departments and seeking input from Pickering Fire Services personnel. A comprehensive specification for a pumper rescue vehicle was provided to Supply & Services and a tender was prepared - Tender T-23-2009 - which closed October 28, 2009. The only bid received was non-compliant and rejected. The Manager, Supply & Services determined a prudent course of action was for staff to review specifications, revise the tendering document and re-issue it. As this revised tender (T-25-2009) would not close until 2010 and as a second fire pumper vehicle had been identified in the 2010 capital budget, the tender was prepared to provide pricing for one vehicle with a pricing option to purchase a second identical vehicle. Tender T-25-2009 was released and two bidders responded of which one - ResQtech Systems Inc. - was unable to bid. Initial review of the other bid - submitted by Smeal Fire Apparatus Co. rendered the bid an automatic rejection. After discussions with the Director, Corporate Services and Treasurer as well as the City Solicitor and in accordance with Information to Bidders Item 19(a), the Tender was cancelled. In accordance with Purchasing Bylaw No. PUR 010-001, Item 05.04, which authorizes the Manager, Supply & Services to enter into negotiations when all bids fail to comply with the specifications or conditions and it is impractical to recall, negotiations were entered into with Smeal Fire Apparatus Co., for the supply and delivery of one, possibly two, Fire Pumper Vehicles. These negotiations have resulted in a purchase agreement and a. net savings of $9,300.00 on the purchase of two vehicles, which was applied to the second vehicle - summarized in the attached memorandum from Supply & Services. The diagram and details of booster tank construction and installation, body construction and support system and how it will be attached to the chassis; complete diagram of the proposed unit, letter and information from ULC (Underwriters Laboratory of Canada) CORP0227-07/01 revised Report OES 06-10 March 29, 2010 Subject: (2) Two Pumper Rescue Vehicles Page 5 122 which explains the testing services that UL/ULC provides to verify NFPA (National Fire Protection Association) compliance; NFPA membership certificate in good standing for the Vice President of Smeal Fire Apparatus Co. have been reviewed by the Supervisor, Fleet Operations and Deputy Chief, Fire Services and are deemed acceptable. These vehicles are available with an option for a 2009 or 2010 model year engine. The 2009 model year engine is recommended as significant re-engineering of the vehicle is required to accommodate a. urea injection systems required by the 2010 model engine, adding approximately $8,000.00 to the purchase price. It is, therefore, the recommendation of Pickering Fire Services that the purchase of two Fire Pumper Vehicles equipped with 2009 model year engines as negotiated by the Manager, Supply & Services with Smeal Fire Apparatus Co. in the amount of $1,214,185 (HST included) be accepted and the net purchase cost of $1,093,41.20 be approved. This report has been prepared in conjunction with the Manager, Supply & Services and the Senior Financial Analyst, who concur with the foregoing. Attachments: 1. Supply & Services Memorandum 2. By-law to confirm the authorization of the issuance of debentures in the amount of $1,090,000 Prepared By: - Approved/J,En W B Grant' ith Everet nt Supervisor, Fleet Operations Director, Operations & Emergency Services Bill Douglas Gillis Paterson Fire Chief Director, Corporate Services & Treasurer Vera A. Felgemach r Caryn Kong C.P.P., CPPO, CPPB, C.P.M., CMM III Senior Financial Analyst-Capital & Debt Management GS:cr Copy: Chief Administrative Officer CORP0227-07/01 revised i Report OES 06-10 March 29, 2010 Subject: (2) Two. Pumper Rescue Vehicles Page 6 123 Recommended for the consideration of Pickering City OTJ le J. Quinn, [ MR, C IM III T h o Xas Chef Administrati Officer CORP0227-07/01 revised ATTACHMENT# ~ TO REPOP.T# DES D(-/ O I'ICI«RI j MEMO 124 To: Everett Buntsma February 10, 2010 Director, Operations & Emergency Services From Vera A. Felgemacher Manager, Supply & Services Copy: Fire Chief Supervisor, Fleet Operations Subject: Tender No. T-25-2009 Tender for Supply and Delivery of One (1) or Two (2) Fire Pumper Vehicle Closing: Wednesday, January 20, 2010 before 2:00pm (local time) i This tender call is the 2nd effort to solicit competitive bids for a fire pumper vehicle - Tender No. T-2372009 for One Fire Pumper Vehicle was the previous tender call and the bid received was non-compliant and rejected. Tender specifications. and details were reviewed again by the Deputy Chief and Fleet Supervisor resulting in a revised tendering document No. T-25-2009 for one (1), possibly two (2), Fire Pumper Vehicles. An advertisement was placed on the City's website inviting companies download the above mentioned tendering document. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. SUMMARY (including 13% HST) Bidder Section 2 Total Section 2 Total Section 3 Total Section 4 Total Qty 1 Qty 2 Qty 1 Qty 2 2009 Engine 2009 Engine 2010 Engine 2010 Engine Smeal Fire Apparatus $612,347 $1,224,694 $619,579 $11239,158 Co. ResQtech Unable to bid ATTACHMENT L _ TO REPORT; X6'/0 125 poi initial review of the bid submitted by Smeal Fire Apparatus Co. rendered the bid an automatic rejection. Reference: Purchasing Bylaw No. 5900-01, Procedure No. PUR-010- 001, 10.04 Item 7-(5). Reference: Purchasing By-law No. 5900-01, Procedure No. FUR 010-0C1, 10.04, Item 7-(7). Reference: Information to Bidders Item Nos. 4, 6, 18, 19, 20; Specifications Item 33. Upon careful review and discussion with the Director, Corporate Services and the City Solicitor, in accordance with Information to Bidders, Item 19 (a). the tender was cancelled to proceed with "Negotiation" with Smeal Manufacturing, as provided for, in the Purchasing Bylaw. Purchasing Bylaw No. 5900-01, Procedure No. PUR-010-001, Item 05 provides: - the Manager, is authorized to enter into negotiations without formal competitive bids, under the following circumstance(s) - Item 05.04 - When all bids fail to comply with the specifications or conditions and it is impractical to recall. City staff (G. Smith, R. Kuzma, S. Almond, V. Felgemacher) met on Monday, February 1, 2010 to discuss details for negotiation -then meeting with the representative from Smeal Manufacturing on Tuesday, February 2, 2010. A list of negotiated items is available upon request. Grant Smith is to confirm if documentation requested in Item 15 (1 through 5) is acceptable. If a quantity of 2 are ordered at the same time, there is a savings on the 2nd unit of $9,300 before taxes. The City's preference -is the fire pumper vehicle with the 2009 Cummins engine and pricing is summarized below: NEGOTIATION SUMMARY SMEAL CUSTOM PUMPER FIRE FIGHTING APPARATUS 2010 GLADIATOR CHASSIS TAXES EXTRA Quantity 1 with Quantity 2 with 2009 Cummins Engine 2009 Cummins Engine Vehicle 1 - $541,900 $541,900 Vehicle 2 - $532,600 Total . $1,074,500 The Harmonized Sales Tax at the rate of 13% comes-into effect as of July 1, 2010 and will be extra to prices quoted for deliveries after July 1, 2010. Acceptance of the negotiated offer from Smeal Fire Apparatus Co,. is subject to budget and Cou`Ocil Approval. Vera A:'Felgemacher /vaf .attachments February 10, 2010 Tender No. T-25-2009 Page 2 Tender for Supply and Delivery of One (1) or Two (2) Fire Pumper Vehicles -/0 ATTACHMENT# ~ TC //17F 3 w of CAD CD W cn =r ~ p m W cn X, Q X26 m 0- (D o ' z r CD v o --I m m cn ° cn (D~v m o 0 Z Co o c- (D 3 r. Q o --I Cn (D - CL (D Z3 CL) (D a- o = o CD D 11 (D z W rr o " 0- co o p N ' o ~ r•: N m o o O U) o o (D (0 t =0 CL O Q Qo m CA) c: cn mn z -o cn m o tio' ° z z c ~ o =CD D m (D 3 n ~QO < m ;r\ r Z v p z O J D ~ N -n . o -n ~ n m No m = ~ cn m c n cn T Q m z m p D 0 C7 o r- x m N Ul 3 n O m z ATTACHMENT # _~Q_ sOREPORTttZSQ~_~Q of 127 The Corporation of The City of Pickering By-law No. Being a by-law to confirm the authorization of the issuance of debentures in the amount of $1,090,000 for the supply and delivery of (2) Two Fire Pumper Vehicles 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 is proceeding with the supply and delivery of (2) Two Fire Pumper Vehicles in the City of Pickering; and, Whereas before the Council of the City authorized the supply and delivery of (2) Two Fire Pumper Vehicles, 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 there under. And Whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report OES 06-10 on the date hereof and awarded Tender T-25-2009 for the supply and delivery of (2) Two Fire Pumper Vehicles. CORP0223-07/01 ATTACHMENT# 9 _ TOREPORT# D&_~SO6-~0 BY-LAW NO =f Page 2 28 Now therefore the council of the Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the supply and delivery of (2) Two Fire Pumper Vehicles. 2. That the estimated costs of the supply and delivery of (2) Two Fire Pumper Vehicles in the amount of $1,093,411.20 be financed as follows: a) That the sum of $1,090,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed (10) ten years; b) That the balance of $3,411.20 be funded from the Property Tax; 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 29th day of March 2010. David Ryan, Mayor Debbie Shields, City Clerk