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HomeMy WebLinkAboutCS 13-18C!Z eV/ DICKERING Report to Executive Committee Report Number: CS 13-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Supply and Delivery of One New Latest Model Year Articulating Front Loader - Quotation No. Q-30-2018 - File: A-1440 Recommendation: 1. That Quotation No. Q-30-2018 submitted by Hub International Equipment Ltd. in the amount of $222,610.00 (HST included) be accepted; 2. That the total gross project cost of $224,305.00 (HST included) and the total net project cost of $201,994.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the total net project cost in the amount of $201,994.00 as follows; a) the sum of $190,000.00, as provided for in the Roads Equipment Capital Budget be increased to $200,000.00 to be financed by the issue of debentures by the Regional Municipality of Durham over a term not to exceed five years; b) the sum of $1,994.00 to be funded from property taxes; c) the annual repayment charges in the amount of approximately $43,985.00 be included in the annual Current Budget for the City of Pickering (the "City") commencing in 2018, or such subsequent year in which the debentures are issued, and continuing thereafter until the debenture financing is repaid, and any financing cost to be paid out of the Current Budget; d) 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; 4. That the draft By-law attached to this report be enacted; and 5. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The Public Works Section, within the Community Services Department, currently utilizes two articulating front loaders. One articulating front loader (Unit #115, a 2005 Case) was approved for life -cycle replacement in the 2018 Capital Budget. CS 13-18 June 18, 2018 Subject: Supply and Delivery of One New Latest Model Year Page 2 Articulating Front Loader On February 16, 2018, an advertisement was placed on the City's website. Three companies responded by the closing date of Tuesday, April 17, 2018. The quotation submitted by Hub International Equipment Ltd. for one JCB 427HT Articulating Front Loader, has received the highest score from the Evaluation Committee, meets the required specifications, and is recommended for approval. In accordance with Purchasing Policy Item 06.11(b), 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 $75,000.00 and up to $250,000.00, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO. However, since this project is debt financed, Council approval is being sought in order to formally request debenture financing for this project. Financial Implications: 1. Quotation Amount Supply and Delivery of One New Latest Model Year Articulating Front Loader HST (13%) Total Gross Quotation Cost $197,000.00 25,610.00 $222,610.00 2. Estimated Project Costing Summary Quotation No. Q-30-2018 GPS/2 way radio Sub Total HST (13%) Gross Project Cost HST Rebate (11.24%) Total Net Project Cost $197,000.00 1,500.00 198,500.00 25,805.00 $224,305.00 (22,311.00) $201,994.00 CS 13-18 Subject: Supply and Delivery of One New Latest Model Year Articulating Front Loader June 18, 2018 Page 3 3. Approved Source of Funds 2018 Roads Equipment Capital Budget Description Supply and Delivery of One New Latest Model Year Articulating Front Loader Total Funds Account Code Source of Available Required Funds Budget 5319.1802.6178 Debt - 5 years $190,000.00 $200,000.00 Property Taxes 0.00 1,994.00 $190,000.00 $201,994.00 Net Project Cost under (over) Approved Funds ($11,994.00) Discussion: The Public Works Section, within the Community Services Department, currently has two articulating front loaders. One articulating front loader (Unit #115, a 2005 Case) was approved for life -cycle replacement in the 2018 Capital Budget. An Evaluation Committee consisting of Public Works staff met on Thursday, April 26, 2018 and each committee member evaluated the quotations based on the rated criteria. A combined average score for each quotation was determined as part of Stage 11 of the evaluation process. Hub International Equipment Ltd. has received the highest score. After careful review of all submissions received, Public Works staff recommends acceptance of the Quotation No. Q-30-2018 submitted by Hub International Equipment Ltd. for one new articulating front loader in the amount of $222,610:00 (HST included) and that the total net project cost of $201,994.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated May 3, 2018 2. Being a By-law to authorize the Supply and Delivery of One New Latest Model Year Articulating Front Loader project and the issuance of debentures in the amount of $200,000.00 CS 13-18 June 18, 2018 Subject: Supply and Delivery of One New Latest Model Year Page 4 Articulating Front Loader Prepared By: /1 Matthew • ' er Approved/Endorsed By: Marisa Carpino, MA Supervisor, Municipal Garage Operations Director, Community Services Ray R.'• rigues, CPPB Manager, Supply & Services MC:nw Stan Karwowski, A, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P. Eng. Chief Administrative Officer ()act 4 2oie 6-4 DICKERING ATTACHMENT #___LTC] REPORT 11, Memo To: Marisa Carpino Director, Community Services From: Justin MacDonald, Buyer, Supply & Services Copy: Administrative Assistant, Community Services Ray Rodrigues, Manager, Supply & Services May 3, 2018 Subject: Quotation No. Q-30-2018 Supply & Delivery One (1) New Latest Model Year Articulating Front Loader Closing Date: Tuesday, April 17, 2018 at 12:00 Noon. File: F-5300-001 A summary of the Stage II and 111 evaluation results for each quotation is detailed below. Vendor Name Average of Evaluation Committee Points Awarded Quoted Amount (excluding HSTF Points Awarded Price Total Points Awarded Hub International 67 $197,000.00 30 97 Nortrax 66 $202,544.00 29 95 Strongco Limited Partnership 65 $200,800.00 29 94 Hub International is the top ranked respondent with a submitted price of $197,000,00 (HST Excluded). A budget of $190,000 was provided to Supply & Services for this procurement and is debt financed. If the recommendation to award exceeds the budgeted amount, refer to Financial Control Policy Item 11 for additional instructions. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. In accordance with Purchasing Policy, Item 06.11, 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: (b) Over $75,000 and up to $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer and the CAO. Please provide your recommendation in report form as this is debt financed and requires Council approval. After receiving Council approval, an approved "on-line" requisition will be required to proceed. Please direct all enquiries to Supply & Services. Respondents will be advised in due course. If you require further information or assistance, do not hesitate to contact me or a member of Supply & Services. JM Page 2 of 2 ATTACHMENT # '' TO REPORT #0%_ f 3 - The Corporation of the City of Pickering By-law No. Being a by-law to authorize the Supply and Delivery of One New Latest Model Year Articulating Front Loader project in the City of Pickering and the issuance of debentures in the amount of $200,000.00 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 Latest Model Year Articulating Front Loader project; and Whereas before authorizing the construction in respect of the Supply and Delivery of One New Latest Model Year Articulating Front Loader 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 is not required 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 13-18 on the date hereof and awarded Quotation No. Q-30-2018 for the Supply and Delivery of One New Latest Model Year Articulating Front Loader project; 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 Latest Model Year Articulating Front Loader"; 2. That the estimated costs of the project in the amount of $201,994.00 be financed as follows: a) the sum of $200,000.00 be financed by the issue of debentures by the Regional Municipality of Durham over a term not to exceed 5 years; and b) the sum of $1,994.00 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 2018 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By-law passed this 25th day of June, 2018 David Ryan, Mayor Debbie Shields, City Clerk