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;
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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
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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
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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,
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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
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