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HomeMy WebLinkAboutOES 31-04PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: OES 31-04 Date: September 28, 2004 From: Richard W. Holborn, P. Eng. Division Head, Municipal Property & Engineering Subject: Supply and Delivery of High Pressure Hot Water System Informal Quotation Recommendation: That Report OES 31-04 regarding the supply and delivery of a High Pressure Hot Water System be received and that: The informal quotation submitted by Hazeland Manufacturing Inc. for the supply and delivery of a High Pressure Hot Water System in the amount of $ 23,785.00 (GST & PST extra) be accepted; The total purchase cost of $27,352.75 and a net purchase cost of $25,687.80 be approved; That Council authorize the Director, Corporate Services and Treasurer to finance the project through an internal loan; a) b) Internal loan financing not exceeding the amount of $25,000 for a period not exceeding five years, at a rate to be determined be approved and the balance of approximately $688 plus financing costs be financed from current fund c) Financing and repayment charges in the amount of approximately $5,775 be included in annual Current Budget for The City of Pickering commencing in 2005 and continuing there after until the loan is repaid; d) The Director, Corporate Services and Treasurer has certified that this loan and repayment thereof falls within the City's debt and financial obligations approved annual repayment limit for debt and other financial obligations for 2004 as established by the Province for Municipalities in Ontario; The Treasurer be authorized to take any actions necessary in order to effect the forgoing: and The appropriate staff of the City of Pickering be given the authority to give effect thereto. Report OES 31-04 Date: Subject: Supply & Delivery of High Pressure Hot Water System Informal Quotation September 28, 2004 Page 2 Executive Summary: Not Applicable Financial Implications: 1. Approved Source of Funds: Account Project Code 2004 Capital Budget 2320/6178 04-2320-004-02 Debt (5 years) Total Approved Funds Amount $25,000.00 $25,000.00 Estimated Project Cost Summary High Pressure Hot Water System G.S.T. P.S.T. Total Project Cost G.S.T. Rebate Net Project Cost $23,785.00 $ 1,664.95 $ 1,902.80 $27,352.75 ($ 1,664.95) $ 25,687.80 = Project & Cost Under (over) Approved Funds ($ 687.80) Overexpenditure is understated due to the GST 3%'rebate savings that was already captured in the 2004 Current Budget The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs. The 2004 Capital Budget as approved by Council originally provided for the purchase to be debt financed. It is now proposed that due to the relatively small sum involved, this purchase be financed through an internal loan. Background: Municipal Operations removed its aging culvert steamer from service in 2003 for mechanical and health and safety concerns. An evaluation of this critical piece of equipment revealed that replacement/repair parts were no longer available. A replacement was identified in the 2004 Capital Budget and approved by Council. Through market research, Fleet Operations identified a system that will meet the City's requirements. The equipment also enhances the City's ability to more effectively CORP0227-07/01 Report OES 31-04 Date: September 28, 2004 Subject: Supply & Delivery of High Pressure Hot Water System Informal Quotation Page 3 respond to acts of vandalism as the new "culvert steamer" delivers enough pressure to rid most surfaces of spray paint applied by vandals. These functions can be performed safely as the system utilizes hot water as opposed to the antiquated method of live steam. This is a much safer system for staff and represents a more prudent use of city resources because of its versatility. An additional benefit of the equipment is that it is also environmentally friendly as no harsh chemicals or detergents are required for paint removal operations. Based on the informal quotes received from three vendors and an in-field evaluation process it is the recommendation of the Municipal Property & Engineering Division that the City of Pickering proceed and approve the purchase of the High Pressure Hot Water System and quoted by Hazeland Manufacturing Inc. Attachments: 1. Not Applicable CORP0227-07/01 Report OES 31-04 Date: September 28, 2004 Subject: Supply & Delivery of High Pressure Hot Water System Informal Quotation Page 4 Prepared By: .///~--Gr~t Smith ~' ~SSpervisor, Fleet Operations /'~" Manager, Supply & Se~ices Approved / Endorsed¢~'y: Ever~ Director, Operations & Emergency Services Gillis A. Paterson Director, Corporate Services & Treasurer ard Holl~rn w ion Head, cipal Property & Engineering GS:vn Attachments Copy: Chief Administrative Officer Director, Corporate Services & Treasurer Financial Analyst Recom ended, the Consideration of Thomas J~,G~inn,/(~ief Administrative Officer CORP0227-07/01