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HomeMy WebLinkAboutCS 27-12 Clri, 00 Report To Executive Committee 1 4 7 PICKERING Report Number: CS 27-12 Date: June 11, 2012 From: Everett Buntsma Director, Community Services Subject: Supply & Delivery of one 41 ,000 LB. GVW Dump Truck - Quotation No. Q-13-2012 - File: A-1440 Recommendation: 1 . That Report CS 27-12 of the Director, Community Services regarding the supply and delivery of one 41,000 LB. GVW Dump Truck be received; 2. That Quotation No. Q-13-2012, as submitted by Scarborough Truck Centre Inc. for the supply and delivery of one 41,000 LB. GVW Dump Truck in the amount of $187,758 (HST extra) be accepted; 3. That the total gross purchase cost of $213,297 and a net purchase cost of • $192,081 be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to finance the project as follows as provided for in the 2012 Capital Budget; (a) the sum of $190,000 be financed by the issue of debentures through the Regional Municipality of Durham for a period not exceeding five years, at a rate to be determined; (b) that the balance of $2,081 plus issuing costs be funded from property taxes; (c) that the financing and repayment charges in the amount of approximately $41,000 be included in the annual Current Budget for the City of Pickering commencing in 2013 and continuing thereafter until the loan is repaid; (d) 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; and Report CS 27-12 June 11, 2012 Subject: Supply & Delivery of one 41,000 LB. GVW Dump Truck 1 4 8 Quotation No. Q-13-2012 Page 2 6. Further that the appropriate City of Pickering Officials be authorized to take necessary action to give effect; Executive Summary: The City of Pickering currently utilizes a fleet comprised of nine 4-ton dump trucks and three 5-ton dump trucks to perform a wide range of road maintenance activities including winter control. As approved in the 2012 Capital Budget this truck will replace Unit #099 — 2002 Freight Liner with 4 ton dump truck with wing and plow. Upon review of all the quotations received, the quotation that meets the City's specification and requirements is being recommended. Financial Implications: 1. Quotation Amount No. Q-13-2012 $187,758.00 HST 13% 24,408.54 Total Gross Quotation Amount $212,166.54 HST — Rebate 11.24% (21,104.00) Total Net Quotation Amount $191,062.54 2. Approved Source of Funds 2012 Roads Capital Budget Item Account Code Source of Funds Budget Required 41,000 LB. GVW 5320.1204.6178 Debt— 5 Years $210,000.00 $190,000.00 Dump Truck Property Taxes 2,081.00 Total Funds $210,000.00 $192,081.00 3. Estimated Project Costing Summary Quotation No. Q-13-2012 41,000 LB. GVW Dump Truck $187,758.00 Licence Fee & Associated Cost 1,000.00 Total Cost $188,758.00 HST (13%) $24,539.00 Total Gross Purchase Cost $213,297.00 HST Rebate (11.24%), ($21,216.00) Total Net Purchase Cost $192,081.00 Report CS 27-12 June 11, 2012 Subject: Supply & Delivery of one 41,000 LB. GVW Dump Truck 4 Quotation No. Q-13-2012 Page 3 Project Cost under (over) approved funds by $17,919.00 The Director, Corporate Services and Treasurer has updated the City's 2012 Annual Repayment Limit and certified that this loan and the repayment falls within the City's Annual Repayment Limit for debentures and financial obligations, and therefore, the Ontario Municipal Board approval is not required prior to City Council's authorization. Sustainability Implications: The engine powering this equipment meets the Environmental Protection Agency's Tier 1111 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. Discussion: The purchase of a 41,000 LB. GVW Dump Truck was identified and approved by Council in the 2012 Roads Capital Budget utilizing existing specifications from previous purchases, Supply & Services invited four companies to participate and an advertisement was placed on the City's website. Three bidders responded and have submitted a quotation for this project. The low quotation submitted by Tallman Truck Centre did not provide a vehicle with the required torque specified by the City. This deviation from the specification has been evaluated and it has been determined that a 20% reduction in power would have a detrimental effect on vehicle performance during heavy use such as winter control. Council has supported the decision to meet this overriding requirement previously with the 2006 and 2008 Truck purchases. Based upon these facts as well as a careful examination of all quotations received by Supply & Services, the Community Services Department recommends the acceptance of the bid submitted by Scarborough Truck Inc., in the amount of$187,758 (HST and license extra) and that the total net purchase cost of$192,081 be approved. Attachments: 1. Memo from Supply & Services 2. Being a By-law to authorize the supply and delivery of one 41,000 LB. GVW Dump Truck in the City of Pickering and the issuance of debentures in the amount of$190,000 Report CS 27-12 June 11, 2012 Subject: Supply & Delivery of one 41,000 LB. GVW Dump Truck 1 5 0 Quotation No. Q-13-2012 Page 4 Prepared By: Approved/Endorsed : eriOviA I ■•• ieirM Grant Smith Everett Bunk a, NPD, CMM Manager Director Opera ions & Fleet Services Community Services Vera A. Fel• -macher Gillis A. Paterson, CMA C.P.P., CPPO', CPPB, C.P.M., CMM III Director, Corporate Services & Manager, Supply & Services Treasurer Caryn Kong, CGA Senior Financial Analyst-Capital & Debt Management GS:nw Recommended for the consideration of Pickering City Council op , ,/ 1174 2.8 2or T. Prevedel, P.Eng. Chief Administrative Officer Citga "L r i ATTACHMENT REPORT e-s I 1 51 saniac Memo To: Everett Buntsma April 30, 2012. Director, Community Services From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Operations & Fleet Services Subject: Quotation No. Q-13-2012 - Quotation for the Supply & Delivery of One (1) 41,000 LB. GVW Dump Truck - File: F-5400-001 Quotations have been received for the above project. Four (4) companies were invited to participate and an advertisement was placed on the City's website. Three (3) companies have responded by the official submission date and time. One (1) addendum was issued. Reference: Evaluations of Quotations - Item 2 2.1 Stages of Evaluation The evaluation of quotations will be conducted in the following stages: • Stage I will consist of a review to determine which submissions satisfy all of the mandatory requirements. Those submissions that satisfy the mandatory requirements will proceed to Stage II. • Stage II will consist of a scoring on the basis of the Rated Criteria. Subject to the Terms of Reference and Governing Law, the top-ranked respondent as established under the evaluation will be selected to enter into a contract for the provision of the Deliverables. During Stage I, one (1) quotation was afforded the opportunity to rectify deficiencies and this has been completed. All three (3) quotations can proceed to Stage II. Reference: Appendix A - Deliverables— Item 3: The City may request a demonstration of the equipment being bid upon, including provision for City staff to operate the equipment being bid upon. Such demonstration shall be provided at no charge to the City. Reference: Appendix A - Deliverable — Item 8: Where a minimum is called for, the item shall meet or exceed the capacity, size or performance specified. a) A mark in the "yes" space shall mean compliance with the specification and can be further detailedin the SPECIFY space. b) A mark in the "no" space shall mean a deviation from the speulication and must be further detailed in the SPECIFY space. Deviations will be evaluated and acceptance of these 1 5 9 deviations is within the discretion of the City of Pickering. Where brand names, models or specifications are specified as "no substitution", alternatives will be not considered. Rating Criteria Scoring Lowest Price (Best Price) 5 Highest Price 1 Other pricing received incremental scoring based on its position between "low" and "high" Copies of the quotations are attached for your review along with•the summary. SUMMARY Harmonized Sales Tax Included Bidder Total Amount After Calculation Delivery Rating Check Tallman Truck Centre $211,934.89 $211,934.89 25 weeks 5 Scarborough Truck Centre $212,166.54 $212,166.54 32 weeks 4 Harper Truck Centres Inc. $215,794.97 $215,794.97 26 weeks 3 The quotation submitted by Tallman Truck Centre in the total amount of$211,934.89, HST included is the low quotation, subject to further evaluation and review of specifications. Where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the total estimated total purchase price is over$125,000 an award is subject to Council approval. Reference: Purchasing Policy Item 06.12 (c). Please include the following information in your Report to Council: (a) the appropriate account number(s) to which this work is to be charged; (b) the budget amount(s) assigned thereto; (c) Treasurer's confirmation of funding; (d) related departmental approvals; and (e) related comments specific to the acquisition. Please do not disclose any information to enquiries. Bidders will be advised of the outcome in du course. If y u require further information, feel free to contact me or Bob. VAF Attachments April 30, 2012 Quotation No. Q-13-2012 Page 2 Supply & Delivery of One (1) 41,000 LB. GVW Dump Truck ATTACHMENT# TO REPORT WS a?--/02 The Corporation of the City of Pickering 1 5 3 By-law No. Being a by-law to authorize the supply and delivery of one 41,000 LB. GVW Dump Truck in the City of Pickering and the issuance of debentures in the amount of $190,000 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 with the supply and delivery of one 41,000 LB. GVW Dump Truck; and, Whereas before the Council of the City authorized the supply and delivery of one 41,000 LB. GVW Dump Truck, 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 thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report CS 27-12 on the date hereof and awarded Quotation No. Q-13-2012 for the supply and delivery of one 41,000 LB. GVW Dump Truck. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: By-law No. Page 2 1F4 1. That the City proceed with the supply and delivery of one 41,000 LB. GVW Dump Truck; 2. That the estimated costs of the project in the amount of $192,081 be financed as follows: a) That the sum of $190,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five years; b) That the balance of $2,081 be funded from property taxes; 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 2013 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 18th day of June, 2012. • • David Ryan, Mayor Debbie Shields, City Clerk