HomeMy WebLinkAboutOPS 19-23Report to Council
Report Number: OPS 19-23
Date: August 16, 2023
From: Brian Duffield
Director, Operations
Subject: Road Grader with Automatic Grade Control - Replacement
- File: A-1440
Recommendation:
1. That Quotation No. RFQQ2023-11 submitted by Toromont CAT in the amount of
$555,640.00 (HST excluded) be accepted;
2. That the total gross project cost of $628,551.00 (HST included), and the total net project
cost of $566,030.00 (net of HST rebate) be approved;
3. That Council authorize the Director, Finance & Treasurer to finance the total net project
cost of $566,030.00 as follows:
a. The sum of $550,000.00, as provided for in the 2023 Capital Budget, be increased to
$566,030.00, to be financed by the Major Equipment Reserve;
b. 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,
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 two road graders with attachments for the maintenance of approximately 100
km of unpaved roads in the northern rural areas of the City. As reflected in the 2023 Capital
Budget, unit #110 was approved for replacement.
On May 18, 2023, a Second Stage Quotation, RFQQ2023-11 through Canoe Procurement
Collaborative Agreement was advertised on the City’s bids&tenders portal. Two companies
responded by the closing date of June 8, 2023. The quotation from Toromont CAT complied with
all of the technical requirements and received an acceptable score 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.
OPS 19-23 August 16, 2023
Subject: Road Grader with Automatic Grade Control - Replacement Page 2
Financial Implications:
1. Quotation Amount
Quotation No.RFQQ2023-11 $555,640.00
HST (13%) 72,233.20
Total Gross Quotation Cost $627,873.20
2. Estimated Project Costing
Quotation No.RFQQ2023-11 $555,640.00
GPS/AVL 600.00
Total Project Cost $556,240.00
HST (13%) 72,311.00
Total Gross Project Cost $628,551.00
HST Rebate (11.24%) (62,521.00)
Total Net Project Cost $566,030.00
3. Approved Source of Funds – Roads Equipment Capital Budget
Description Account
Code
Source of
Funds
Available
Budget
Required
Road Grader with
Automatic Grade
Control –
Replacement
C10315.2301 Major Equipment
Reserve Fund
$550,000.00 $566,030.00
Project Cost under (over) approved funds by ($16,030.00)
In accordance with the Purchasing Policy, Item 13.01, the Manager may enter into
arrangements with municipalities, local boards and other public bodies on a cooperative or
joint venture basis where there are economic advantages and where the best interests of the
City would be served. The policy of the government agency or public authority hosting the
cooperative call for bids is to be the accepted policy of the City for the cooperative call and no
other approval by the City is required beyond that of the Manager, appropriate Director and
Treasurer, unless debt funding is required, then Council approval must first be obtained.
Although the Purchasing Policy, Item 13.01 does not state Council approval is required unless
debt funding is present, it is recommended that due to the value of the project, a Council report
is submitted.
OPS 19-23 August 16, 2023
Subject: Road Grader with Automatic Grade Control - Replacement Page 3
Discussion: As reflected in the 2023 Capital Budget and funded from the Major
Equipment Reserve Fund, vehicle #110 was approved for replacement. This vehicle has met
or exceeded its scheduled replacement date and is recommended for replacement by Fleet
Services.
This grader will be equipped with an Automatic Grade Control system (AGC). The AGC system
is an essential piece of equipment that assists the operator in maintaining gravel roads to a
high standard. The benefits of an AGC system include being able to complete the work in a
more timely manner with reduced material usage due to the accuracy of the grade control;
and, better fuel efficiency with the reduction in work hours and down pressure on the grader
required to carry out the task. Our other grader in our inventory equipped with the AGC system
has proved to be a significant upgrade and a valuable tool that has increased efficiencies and
quality of work.
On May 18, 2023, a Second Stage Quotation, RFQQ2023-11 through Canoe Procurement
Collaborative Agreement was advertised on the City’s bids&tenders portal. Two companies
responded by the closing date of June 8, 2023. The quotation from Toromont CAT complied with
all of the technical requirements and received an acceptable score from the Evaluation
Committee.
Canoe Procurement Group is a collaborative agency which the City is a member of, and
therefore, meets the criteria of a Cooperative Purchase as per Section 13.01 of the Purchasing
Policy.
After careful review of the submission received, Operations’ staff recommend the acceptance
of Quotation No.RFQQ2023-11 submitted by Toromont CAT, and that the total net project cost
of $566,030.00 (net of HST rebate) be approved.
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: Original Signed By:
Brian Duffield Cathy Bazinet, CPPB, NIGP-CPP
Director, Operations Manager, Procurement
BD:nm
OPS 19-23 August 16, 2023
Subject: Road Grader with Automatic Grade Control - Replacement Page 4
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer