HomeMy WebLinkAboutOPS 12-23Report to
Executive Committee
Report Number: OPS 12-23
Date: May 1, 2023
From: Brian Duffield
Director, Operations
Subject: Supply & Delivery of Various 4 and 5 Ton Trucks
- Quotation No. RFQQ2022-7A
- File: A-1440
Recommendation:
1. That Quotation No. RFQQ2022-7A submitted by Viking Cives Ltd, in the amount of
$3,196,620.00 (HST excluded) be accepted;
2. That the total gross project cost of $3,612,181.00 (HST included), and that the total net
project cost of $3,252,881.00 (net of HST rebate) be approved;
3. That Council authorize the Director, Finance & Treasurer to finance the total net project
cost of $3,252,881.00, as provided for in the 2022 and 2023 Capital Budgets as follows:
a) The sum of $811,816.00 to be funded from the Vehicle Replacement Reserve;
b) The sum of $1,596,065.00 to be funded from the Development Charges – Other
Services Related to a Highway Reserve Fund;
c) The sum of $840,000.00 from approved 2023 Capital Budget be increased to
$845,000.00 and that the financing source be revised to a 5-Year Internal Loan;
and,
4. 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 Division, within the Operations Department
currently utilizes various 4 and 5 ton trucks for a variety of work tasks. Vehicles #42 (2013
International) and #41 (2014 International) have met or exceeded their scheduled replacement
dates. Due to growth, three new 4 ton trucks and one new 5 ton truck were approved in the
2022 Capital Budget, and two new 4 ton trucks were approved in the 2023 Capital Budget.
A second-stage Quotation No. RFQQ2022-7, through Canoe Procurement Group, contract
#060920 was sent to three potential bidders on November 17, 2022 with a submission
deadline of December 14, 2022 through the City’s bids and tenders portal. No submissions
were received by the submission deadline. Another second-stage Quotation No. RFQQ2022-
7A was sent through Canoe Procurement Group contract #062222 to two potential bidders on
January 1, 2023 with a submission deadline of February 9, 2023 through the City’s bids and
tenders portal. One quotation was received by the submission deadline. The submission from
OPS 12-23 May 1, 2023
Subject: Supply & Delivery of Various 4 and 5 Ton Trucks Page 2
Viking Cives Ltd has met all technical requirements and received consensus from the
Evaluation Committee.
In accordance with Purchasing Policy Item 06.11(c), 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
$250,000.00, the Manager may approve the award, subject to the approval of the Director,
Treasurer, CAO, and Council.
Financial Implications:
1. Quotation Amount
Quotation No. RFQQ2022-7A $3,196,620.00
HST (13%)
Total Gross Quotation Cost
415,561.00
$3,612.181.00
2. Estimated Project Costing
Quotation No. RFQQ2022-7A $3,196,620.00
Total Project Cost $3,196,620.00
HST (13%) 415,561.00
Total Gross Project Costs $3,612,181.00
HST Rebate (11.24%) (359,300.00)
Total Net Project Cost $3,252,881.00
3. Approved Source of Funds
Description Account
Code
Source of
Funds
Available
Budget
Required
4 Ton Dump Truck
with Snow Plow and
Wing (new)
C10315.2205
Development
Charges – Other
Highway Reserve
Fund
$387,700.00
$387,706.00
4 Ton Dump Truck
with Snow Plow and
Wing (replacement)
C10315.2220
Vehicle
Replacement
Reserve
387,700.00
387,706.00
5 Ton Dump Truck
with Snow Plow and
Wing (new)
C10315.2222
Development
Charges – Other
Highway Reserve
Fund
404,000.00
403,987.00
OPS 12-23 May 1, 2023
Subject: Supply & Delivery of Various 4 and 5 Ton Trucks Page 3
Description Account
Code
Source of
Funds
Available
Budget
Required
(2) 4 Ton Dump
Trucks with Snow
Plow, Wing, and
Brine Tank (new)
C10315.2223
Development
Charges - Other
Highway Reserve
Fund
$804,400.00
$804,372.00
4 Ton Dump Truck
with Snow Plow and
Wing (replacement)
C10315.2302
Vehicle
Replacement
Reserve
$420,000.00
$423,322.00
4 Ton Dump Truck
with Snow Plow,
Wing and Brine
Tank (new)
C10315.2303
DC Debt – 5 Years
$420,000.00
$0.00
4 Ton Dump Truck
with Snow Plow,
Wing and Brine
Tank (new)
C10315.2303 Internal Loan – 5
Years
$0.00 $422,000.00
4 Ton Dump Truck
with Snow Plow,
Wing and Brine
Tank (new)
C10315.2303
Vehicle
Replacement
Reserve
$0.00 $466.00
4 Ton Dump Truck
with Snow Plow and
Wing (new)
C10315.2311
DC Debt – 5 Years
$420,000.00
$0.00
4 Ton Dump Truck
with Snow Plow and
Wing (new)
C10315.2311 Internal Loan – 5
Years
$0.00 $423,000.00
4 Ton Dump Truck
with Snow Plow and
Wing (new)
C10315.2311
Vehicle
Replacement
Reserve
$0.00
$322.00
Total Funds $3,243,800.00 $3,252,881.00
Project Cost under (over) approved funds by (9,081.00)
OPS 12-23 May 1, 2023
Subject: Supply & Delivery of Various 4 and 5 Ton Trucks Page 4
The financing for two of the vehicle purchases has been revised from external debt to internal
loans. The City typically incurs issuing costs of up to five percent of the debenture amount, and
therefore, the debt financing strategy was changed to internal loans to avoid these costs.
Discussion: Fleet Services manages and assists with the procurement of the City’s fleet. As
reflected in the 2021 and 2022 Capital Budgets, the vehicles listed above were approved for
purchase.
A second-stage Quotation No. RFQQ2022-7, through Canoe Procurement Group, contract
#060920 was sent to three potential bidders on November 17, 2022 with a submission
deadline of December 14, 2022 through the City’s bids and tenders portal. No submissions
were received by the submission deadline. Another second-stage Quotation No. RFQQ2022-
7A was sent, through Canoe Procurement Group contract #062222, to two potential bidders on
January 1, 2023 with a submission deadline of February 9, 2023 through the City’s bids and
tenders portal. One quotation was received by the submission deadline. The submission from
Viking Cives Ltd has met all technical requirements and received consensus from the
Evaluation Committee.
During the COVID-19 pandemic, Fleet Services was asked to identify projects that could be
deferred as a cost savings. Fleet Services deferred five heavy snow plow trucks from 2020 and
2021 that have now been tendered in 2022 with increased pricing submissions due to
unprecedented inflation rates in the automotive industry. To offset the increase, additional
funding was added in the 2023 Capital Budget.
Staff launched a pilot project during the 2017/18 winter season on approximately 50 km of
roads. Results from the pilot project were positive, and staff recommended the purchase of two
new brine trucks in the amount of $560,000.00, together with an increase to the amount of
roads to receive Direct Liquid Application (DLA) to 100 km with a goal to be able to complete
all main roads in the near future. DLA or anti-icing involves the application of a salt of calcium
bring on the road 24 to 48 hours ahead of a snow or ice event on paved roads. DLA creates a
bond breaker on the pavement surface which provides an approximate one hour buffer before
salting is required and for improved plowing of the surface when required. The program was
also forecasted to include emerging communities in northern Pickering for the 2023/34 winter
season with the additional purchase of one new brine truck and one new 4 ton snow plow with
wing.
Report CS 31-19 (Resolution #194/19) was approved by Council for an increased level of
service which recommended the expansion of the Brine Program or DLA.
In summary, these vehicles represent four vehicles for growth funded by DC’s, two life cycle
replacement vehicles and two vehicles for an increase in level of service. These vehicles are
on extended delivery and will be in service for the 2024/25 winter control season.
After careful review of all submissions received, Operations’ staff recommend the acceptance
of Quotation No. RFQQ2022-7A submitted by Viking Cives Ltd, and that the total net project
cost of $3,252,881.00 (net of HST rebate) be approved.
OPS 12-23 May 1, 2023
Subject: Supply & Delivery of Various 4 and 5 Ton Trucks Page 5
Attachment: None.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Matt Currer Stan Karwowski, MBA, CPA, CMA
Manager, Fleet Operations Director, Finance & Treasurer
Original Signed By:
Brian Duffield
Director, Operations
BD:mc
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer