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HomeMy WebLinkAboutOES 22-10 l Report To Council PICKERING Report Number: OES 22-10 Date: September 13, 2010 176 From: Everett Buntsma Director, Operations & Emergency Services Subject: Tender for Supply and Delivery of Backhoe/Loader with Optional Attachments - Tender No. T-14-2010 - File: A-1440 Recommendation: 1. That Report OES 22-10 of the Director, Operations & Emergency Services regarding the supply and delivery of a Backhoe/Loader with optional attachments be received; 2. That Tender No.T-14-2010, as submitted by Nortrax Canada Inc. for the acquisition and delivery of a Backhoe/Loader with optional attachments, in the amount of $110,628.00 (HST extra) be accepted; 3. That the total gross purchase cost of $125,009.64 and a net purchase cost of $112,575.05 be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to finance the project as follows; (a) the sum of $110,000 be financed by the issue of debentures through the .Regional Municipality of Durham for a period not exceeding five (5) years, at a rate to be determined; (b) that the balance of $2,575.05 plus financing costs be funded from 2010 Current Funds; (c) that the annual repayment charges in the amount of approximately $25,000 be included in the annual Current Budget for the City of Pickering commencing in.2011 and continuing thereafter until the loan is repaid; (d) that the Director, Corporate Services and Treasurer has updated the City's 2010 Annual Repayment Limit and certified that this loan and the repayment thereof falls within the City's Annual Repayment Limit for debenture and financial obligations and would not cause the City to exceed the updated Limit, and therefore, the Ontario Municipal Board approval is not required prior to City Council's authorization; r Report OES 22-10 September 13, 2010 Subject: Acquisition & Delivery of Backhoe/Loader with Optional Attachments 177 Tender No. T-14-2010 Page 2 (e) 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 financial institution offering long term financing under similar terms and conditions; (f) that the Treasurer be authorized to make any changes, adjustments, and revisions to amounts, terms, conditions or take any actions necessary in order to effect the foregoing; and 5. That the draft by-law attached to this report be enacted; i 6. That the appropriate City of Pickering Officials be authorized to take necessary action to give effect thereto; Executive Summary: The City's Operations Division, currently utilizes a Backhoe/Loader for a variety of construction and excavating tasks. Four (4) vendors were invited to bid, and the tender for this project was advertised on the City's Website. Three (3) bidders responded to the tender call and submitted bids. Demonstration units provided by Evergreen Farm and Garden LTD. and Nortrax Canada Inc. were evaluated on August 30, 2010 by City staff - Supervisor, Fleet Operations, Supervisor, Roads, Acting Lead Hand, Roads and the Senior Purchasing Analyst. The evaluation committee agreed that the backhoe/loader demonstrated / proposed by the low bidder (Evergreen Farm and Garden LTD) does not meet the critical specifications for digging force and extendable dipper stick construction in order to provide an adequate service for the City's requirements. The backhoe/loader demonstrated / proposed by Nortrax Canada Inc. does meet the critical specifications for digging force and extendable dipper stick construction in order to provide an adequate service for the City's requirements and it is recommended the bid submitted by Nortrax Canada Inc. be accepted. CORP0227-07/01 revised Report OES 22-10 September 13, 2010 Subject: Acquisition & Delivery of Backhoe/Loader with Optional Attachments 1 8 Tender No. T-14-2010 Page 3 Financial Implications: 1. Approved Source of Funds 2010 Roads Capital Budget Item Account Code 'Source of Budget Required Funds Backhoe/Loader 5320.1004.6178 _ Debt = 5 years $150,000 $110,000 With Optional Attachments Property Taxes 0 2,575 Total $150,000 $112,575 2. Estimated Project Costing Summary Tender No. T-14-2010 Backhoe/Loader $110,628.00 with Optional Attachments HST (13%) $14,381.64 Total Gross Purchase Cost $125,009.64 GST Rebate (11.24%) ($12,434.59) Total Net Purchase Cost $112,575.05 3. Project Cost under (over) approved funds by $37,424.95 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 equipment meets the Environmental Protection Agency's Tier III 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. CORP0227-07/01 revised J Report OES 22-10 September 13, 2010 179 Subject: Acquisition & Delivery of Backhoe/Loader with Optional Attachments Tender No. T-14-2010 Page 4 Background: The purchase of a Backhoe/Loader with optional attachments was identified and approved by Council in the 2010 Roads Capital Budget. The bid opportunity was posted on the City's website. Five (5) bidders responded - one of which was unable to bid and (4) bidders submitted a tender for this project. This tender was specified to provide a backhoe/loader capable of providing adequate performance for the construction and repair of City sidewalks including the excavation and lifting of sidewalk slabs, which will comprise approximately 90% of the work of this machine. Upon careful examination of all tenders received, the Operations & Facilities Division recommends the acceptance of the bid submitted by Nortrax Canada Inc., in the amount of $110,628.00 (HST extra) and that the total net purchase cost of $112,575.05 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Memo from Supply & Services 2. Record of Tenders Opened and Checked 3. By-law to authorize the acquisition and delivery of a Backhoe/Loader with optional attachments in the City of Pickering and the issuance of debentures therefore in the amount of $110,000 Prepared By: Approved/Endor By: Gran mith Evere untsma Supe isor, Fleet Operations Director, Operations & Emergency Services 1 C Vera Felge acher Gillis Paterson C.P.P., CPPO, CPPB, C.P.M., CMM III Director, Manager, Acquisition & Services Corporate Services & Treasurer CORP0227-07/01 revised Report OES 22-10 September 13, 2010 Subject: Acquisition & Delivery of Backhoe/Loader with Optional Attachments 8 p Tender No. T-14-2010 Page 5 GS:cr Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Co it T. Prevedel Chief Administrative Officer. CORP0227-07/01 revised ATTACHME.NT# TO REPORT#Q~0?o d g of MEMO To: Everett Buntsma July 5, 2010 Director, Operations & Emergency. Services From: Bob Kuzma. Senior Purchasing Analyst Copy: Subject: Tender No. T-14-201.0 Tender for Supply and Delivery of One (1) Backhoe/Loader Closing: Monday, June 28, 2010 Tenders have been received for the above project. An advertisement was placed on the City's Website. Five (5) bidders responded and four (4) bidders submitted a tender for this project. A copy of the Record of Tenders Opened and Checked used at the.. public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. 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. Copies of the tenders are attached for your review along with the summary of costs. Each line item provides a space for the bidder 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 # 6. states: Where a minimum is called for, the item shall meet or exceed the capacity, size or performance specified. See Information to Bidders Item #6. a) A mark in the "yes" space shall mean compliance with the specification and can be further detailed in the SPECIFY space. b) 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 ATTACHMENT# I TO REPORT# SX? -10 of-x2_ SUMMARY 182 HST included Bidder Total Tendered Amount $ After. Calculation. Check $ Evergreen Farm & Garden Ltd. $121,023.00 $121,023.00 Nortrax Canada Inc. $125,009.64 $125,009.64 Strongco Equipment - Ajax $128,255.00 $1280368.00 Wa'ax $129,083.91 $129,083.91 Strongco Equipment/Division of Strongco Ltd. Partnerships No Bid Mississauga Include the following items in your Report to. Council: (a) without past work experience, if, reference information is acceptable; (b) the appropriate account number(s) to which this work is to be charged; (c) ' the budget amount(s) assigned thereto; (d) Treasurer's confirmation of funding; (e). related departmental approvals; (f) any reason(s) why the low bid of Evergreen Farm & Garden Ltd. is not acceptable; and (g) related comments specific to the project. Note - CAO may approve an award of a tender during Recess of Council.. Your report to CAO should be in memo format and include the. same information as if reported to Council. Please do not disclose any information to enquiries except to direct them to the City's website for the unofficial bid. results as read out at the Public tender opening. Bidders. will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services. /bk Attachments July 5, 2010 Tender No. T-14-2010 Page 2 Tender for Supply and Delivery of. One (1) Backhoe/Loader ATTACHMENT# ~ TO REPORT#Dc-S o20--/ a _ of 183 Z- ui 0 - o E z C. d N O X Z z' o n (7 1 . o r U m ~ w W ~ o 2 N 0 Q z o N o p W d 0 = W _ Y Z Up a rc) O a a = o w~ uo "t, p LL CL 0 O W Q(D ~Q c I- z ca 0 F~- U W LL O . Q . Efl- EflEf} 6F} f fl6F} Eft Efl~ Ef} Ef} 0 0. O c U •Q c of J d W c c z z H - w o m E n (D M ~ «s ~ ° o c-s d ~ U m z z o 0 ~ w .2 > w Of w u. Q. H U _ ATTACHMENT #---3- TO REPORT#,Q~Q9--/ O f of The Corporation of the City of Pickering 84 By-law No. Being a by-law to authorize the acquisition and delivery of a Backhoe/Loader with optional attachments in the City of Pickering and the issuance of debentures therefore in the amount of $110,000. 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, I Whereas the Council of the City wishes to proceed in respect of the acquisition and delivery of a Backhoe/Loader with optional attachments; and, Whereas before authorizing to proceed in respect of the acquisition and delivery of a Backhoe/Loader with optional attachments 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 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; And whereas after determining that Ontario Municipal Board approval was not required, the Council of the City approved Report OES 22-10 on the date hereof and awarded Tender T-14-2010 for the acquisition and delivery of a Backhoe/Loader with optional attachments. ATTACHMENT #__~L_ TORE PORT By-law No. of Page 2 Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the acquisition and delivery of a "Backhoe/Loader with optional attachments": 2. That the estimated costs of the acquisition and delivery of a Backhoe/Loader in the amount of $112,575.05 be financed as follows: a) That the sum of $110,000 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 $2,575.05 be funded from the 2010 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 2011 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 13 day of September, 2010. David Ryan, Mayor Debbie Shields, City Clerk 'I