HomeMy WebLinkAboutPW 04-13Report to
Executive Committee
Report Number: PW 04 -13
Date: June 10, 2013
From: Richard W. Holborn
Director, Engineering & Public Works
Subject: Supply and Delivery of One New Current Model Year Road Grader
- Quotation No. Q -23 -2013
- File: A -1440
Recommendation:
That Report PW 04 -13 of the Director, Engineering & Public Works regarding
Quotation No. Q -23 -2013 for the Supply and Delivery of One New Current Model
Year Road Grader be received;
2. That Quotation No. Q -23 -2013 as submitted by Nortrax Canada Inc. in the total
quotation amount of $246,193.10 (HST included), for the Supply and Delivery of
One New Current Model Year Road Grader, including a trade -in on the City's 2002
Volvo 740VHP be accepted;
3. That the total gross project cost of $249,583.00 (HST included), including the
quotation amount and other associated costs, and the total net project cost of
$224,757.00 (net of HST rebate) be approved;
4. That Council authorize the (Acting) Division Head, Finance and Treasurer to
finance the net project cost of $224,757.00 as follows:
a) that the sum of $220,000.00, be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed five years, at a
rate to be determined;
b) that the sum of $4,757.00 be funded from property taxes;
c) that the annual repayment charges in the approximate amount $47,000.00 be
included in the annual Current Budget for the City of Pickering, commencing in
2014 and continuing thereafter until the debenture financing is repaid; and any
financing cost to be paid out of the Current Budget;
5. That the draft by -law attached to this report be enacted; and
6. That the appropriate City of Pickering Officials be authorized to take necessary
action to give effect thereto.
Report PW 04 -13 June 10, 2013
Supply and Delivery of One New Current Model Year Road Grader
Quotation Q -23 -2013 Page 2
Executive Summary: The City of Pickering currently utilizes two motor graders to
maintain approximately 220 lane kilometers of gravel surface road. This maintenance
encompasses road surface conditioning as well as winter control. The replacement of
the oldest grader, a 2002 Volvo 740VHP has been identified and approved in the 2013
Capital Budget. Specifications for the replacement grader were compiled from previous
purchases as well as the latest emission standards. Supply & Services invited three
vendors to participate, of which only one submitted a bid. This quotation also included
an option to trade in the City's existing unit.
Upon careful review of the quotation submitted by Nortrax Canada Inc., it is the
recommendation of the Engineering & Public Works Department that the quotation
submitted by Nortrax Canada Inc., including the trade -in option be approved.
Financial Implications:
1. Quotation Amount
Quotation No. Q -23 -2013 $282,870.00
Less Trade -in (65,000.001
Quotation Less Trade -in 217,870.00
HST 13% $28,323.10
Total Gross Quotation Amount $246,193.10
z. Estimated Project Gostina Summa
Quotation No. Q -23 -2013 Less Trade -in $217,870.00
Associated Costs 3,000.00
Total Project Cost (excluding taxes) 220,870.00
HST (13 %) 28,713.00
Gross Project Cost $249,583.00
HST Rebate (11.24 %) ($24,826.00)
Total Net Project Cost $224,757.00
3. Aooroved Source of Funds
013 Roads Capital Budget
Account Code Source of Funds Budget Required
5320.1329.6178 Debt — 5 Years $300,000.00 $220,000.00
Property Taxes $0.00 $4,757.0
Total Funds $300,000.0 $224,757.0
Report PW 04 -13 June 10, 2013
Supply and Delivery of One New Current Model Year Road Grader
Quotation Q -23 -2013 Page 3
Project Cost under (over) approved funds $75,243.00
The (Acting) Division Head, Finance and Treasurer has updated the City's 2013 Annual
Repayment Limit and certified that this debenture financing and the repayment falls
within the City's Annual Repayment Limit for debentures and financial obligations, and
therefore, Ontario Municipal Board approval is not required prior to City Council's
authorization.
Discussion: Supply & Services invited three vendors to participate, and
an advertisement was placed on the City's website for submission by Thursday, April 4,
2013. Only one company responded by the official submission date and time.
Specifications for this replacement were compiled from previous purchases as well as
the latest emission standards. This quotation also included an option to provide for a
trade in of the City's existing road grader, a 2002 Volvo 740VHP on which the City will
be exercising, thus reducing the quotation amount.
Upon careful review of the quotation submitted by Nortrax for a 2013 Deere 870G Motor
Grader, which has met all specifications set out in Quotation Q -23 -2013, it is the
recommendation of the Engineering & Public Works Department that the quotation
submitted by Nortrax Canada Inc., including the trade -in option in the amount of
$246,193.10 (HST included) be accepted, and that a total net project cost of
$224,757.00 (net of HST rebate) be approved.
Attachments:
1. Supply & Services Memorandums dated April 8, 2013 and April 15, 2013
2. By -law to authorize the Supply and Delivery of One New Current Model Year Road
Grader project in the City of Pickering and the issuance of debentures in the
amount of $220,000.00
Prepared By:
.,.
Grant Smit
- Marfager,
Operations and Fleet Services
Approved /Endorsed By:
Richard Holbo A, P. Eng.
DireQtor.
gineering and Public Works
Report PW 04 -13
Supply and Delivery of One New Current Model Year Road Grader
Quotation Q -23 -2013
Vera A .�'relgemacfier
C.P.P., CPPO, CPPB, C.P.M., CMM III
Manager, Supply & Services
`- e�,rYv1G b
Caryn Kong, CGA
Senior Financial Analyst* Capital &
Debt Management
GS:nw
Stan Karwowski
(Acting) Division Head
Finance & Treasurer
Recommended for the consideration
of Pickering Cit Council
Z/1 Z043 �Z" Tony Prevedel, P.Eng.
Chief Administrative Officer
June 10, 2013
Page 4
ATTACH M ENT # / TO REPORT# ° � — ENV E
� of ,�_
AIPR 8 2013
CITY OF FICKERINr
ENGINEERING
Memo
To: Richard Holborn April 8, 2013
Director, Engineering & Public Works
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Manager, Operations & Fleet Services
Subject: Quotation No. Q -23 -2013
Supply & Delivery of One New Current Model Year Road Grader
File: F- 5300 -001
Quotations have been received for the above project. Three (3) companies were invited to
participate and an advertisement was placed on the City's website. One (1) company has
responded by the official submission date and time.
Respondent:
Nortrax Canada Inc.
A copy of the quotation is 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.
Appendix A — Material Disclosure - Item 4 states:
The City may request a demonstration of the equipment being quoted upon, including provision for
City staff to operate the equipment being quoted upon. Such demonstration shall be provided at
no charge to the City.
Please advise if a demonstration of the equipment is required.
Appendix A - Deliverables - Item 8 states:
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 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# / TO REPORT# �� 04--13
Z of
In accordance with Purchasing Policy Item 06.12, where the compliant quotation meeting
specification and offering best value to the City is acceptable or where the highest scoring
quotation is recommended and the total estimated price is over $125,000.00, the Manager, may
approve the award, subject to the approval of the Director, Treasurer, CAO and Council.
Please do not disclose any information to respondents during this time — they will be advised of the
outcome in due course. Please direct inquiries to Supply & Services.
If u require further information, please feel free to contact me or a member of Supply & Services.
VAF /bk
Attachment
Quotation No. Q -23 -2013 — Supply & Delivery of
One New Current Model Year Road Grader Page 3
ATTACH MENT#-2. fOREPORT# Pu)-104-i3
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,ATTACHMENT# f TO.REPORT# PtJ 3
of
PICKKE
Memo
To: Richard Holborn April 15, 2013
Director, Engineering & Public Works
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Manager, Operations & Fleet Services
Subject: Quotation No. Q -23 -2013
Supply & Delivery of One New Current Model Year Road Grader
Submission Date: Thursday, April 4, 2013 - 12:00 noon (local time)
- File: F- 5300 -001
Further to the memo dated April 8, 2013 the quotation will proceed to Stage II of the evaluation
process.
Stage II consists 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. The selected respondent will be
expected to enter into a contract within the timeframe specified in the selection notice. Failure to do
so may, among other things, result in the disqualification of the respondent and the selection of
another respondent, or the cancellation of the RFQ.
Each member of the Evaluation Committee has completed evaluating the quotation and a combined
average score for the quotation was determined, completing Stage II of the evaluation process.
Nortrax Canada Inc. is the only respondent with a price of $282,870.00 HST extra with an optional
trade in value of $65,000.00.
In accordance with Purchasing Policy Item 06.12, 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 estimated total purchase price is over $125,000, the Manager may approve the
award, subject to the approval of the Director, Treasurer, CAO and Council.
An approved "on -line" requisition will be required to proceed.
Please do not disclose pricing to enquiries. Calls can be redirected to Supply & Services. Respondents
will bQ advised of the outcome in due course.
If you! equire further information or assistance please contact me or a member of Supply &
Servi� s.
VF /bk
nts
ATTACHMENT# Z TiOREPORT# PVJ 04—I�
The Corporation of the City of Pickering
By -law No.
Being a by -law to authorize the Supply and
Delivery of One New Current Model Year
Road Grader project in the City of Pickering
and the issuance of debentures in the
amount of $220,000.00
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 debenture financing for the
Supply and Delivery of One New Current Model Year Road Grader project; and
Whereas before the Council of the City authorizes the Supply and Delivery of One New
Current Model Year Road Grader project, 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 PW 04 -13 on the date hereof and awarded
Quotation No. Q -23 -2013 for the Supply and Delivery of One New Current Model Year
Road Grader project.
/ATTACHMENT # TO REPORT# 4W04-12>
By -law No. 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 project referred to as "Supply and Delivery of One
New Current Model Year Road Grader ";
2. That the estimated costs of the project in the amount of $224,757.00 be financed as
follows:
a) That the sum of $220,000.00 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 $4,757.00 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 2014 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid.
By -law read a first, second and third time and finally passed this 17th day of June, 2013.
David Ryan, Mayor
Debbie Shields, City Clerk