HomeMy WebLinkAboutOES 25-06
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Report Number: OES 25-06
Date: June 12, 2006
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REPORT TO
EXECUTIVE COMMITTEE
From:
Everett Buntsma
Director, Operations & Emergency Services
Subject:
Supply and Delivery of 4-Ton Truck
- Q-20-2006
- File: Ä-2130
Recommendation:
1. That Report OES 25-06 regarding the supply and delivery of a 4 Ton Dump Truck
be received and that:
2. Quotation No. Q-20-2006 submitted by Scarborough Truck Centre Inc. for the
supply and delivery of a 4 Ton Dump Truck with snow plow and wing, and
_ electronic salt metering in the amount of $157,624.00(GST, PST and license extra)
be accepted;
3. The total gross purchase cost $180,432.36 and a net purchase cost of
$170,974.92 be approved;
4. That Council authorize the Director, Corporate Services & Treasurer to finance the
purchase through the issuance of debt; and
a) That debt financing through the Region of Durham in the amount of
$170,000.00 for a period not exceeding five (5) years, at a rate to be
determined, be approved and the balance of approximately $975 plus
financing costs be financed from current funds; and
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b) That financing and repayment charges in the amount of approximately
$39,000 be included in the annual Current Budget for the City of Pickering
commencing in 2007 and continuing thereafter until the loan is repaid; and
c) That the Director, Corporate Services & Treasurer has certified that this loan
and the repayment thereof falls within the City's debt and financial
obligations approved annual repayment limit for debt and other financial
obligations for 2006 as established by the Province for municipalities in
Ontario; and
d) That the Treasurer be authorized to take any actions necessary in order to
effect the foregoing: and
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Report OES 25-06
Date: June 12, 2006
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Subject: Supply & Delivery of 4-Ton Truck
Q-20-2006
Page 2
5. Staff at the City of Pickering be given the authority to give effect thereto.
Executive Summary: The City of Pickering has a fleet of 4 ton and 5 ton dump
trucks that are used year round for road maintenance activities including sanding,
salting and snow plowing. A replacement for the oldest 4 ton truck in the fleet was
approved in the 2006 Capital budget. Six vendors were invited to submit bids and two
bids were received. Upon review, the vehicle that meets the City's requirements is
being recommended. The vehicle proposed by the low bidder does not, in staff's
opinion, meet the overriding requirement for engine torque.
Given new emission requirements that will increase the cost of these trucks in January
2007, orders being placed at this time are significant resulting in extended delivery
times and actual uncertainty of availability. Therefore, the sooner Council approval is
received and the order is placed, the better chance the City has at receiving acceptance
and delivery. Scarborough truck has advised that delivery would be in December 2006.
The vehicle from Freightliner would be available in March 2007.
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Financial Implications:
1.
Approved Source of Funds
Total Approved Funds
Amount
$175,000.00
$175.000.00
2006 Capital Budget
Debt (5 years)
New Chart of Accounts
5320.0602.6158
2.
Estimated Project Costing Summary
Sub Total
GST (6%)
PST
License
Total Gross Purchase Cost
$157,624.00
$157,624.00
$9,457.44
$12,609.92
$741.00
$180,432.36
($9,457.44)
$170,974.92
Q-20 -2006
4 Ton Dump Truck
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GST Rebate
Total Net Purchase Cost
074
Report OES 25-06
Date: June 12, 2006
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Subject: Supply & Delivery of 4-Ton Truck
Q-20-2006
Page 3
3.
Project Cost under (over) Approved Funds
$4025.081
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditures contained in this report and concurs.
Background: The purchase of a 4-Ton Dump Truck with snow plow and wing
and electronic salt metering was approved by Council in the 2006 Capital Budget.
Through market research and analysis of emerging technology in winter control, Fleet
Operations compiled specifications for this piece of equipment. Supply & Services
invited six (6) vendors to participate in the bidding process of which two (2) have
submitted quotations.
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The Supervisor, Fleet Operations advises that the low bid submitted by Freightliner Mid
Ontario does not provide the required engine torque specified in the document. A
torque of 1050 pound-foot at approximately 1500 RPM is required to operate the
vehicle efficiently and safely with the added load of the snow plow, wing, hydraulic
systems and salt metering device. The bid submitted by Scarborough Truck Centre
provides the torque of 1050 pound-foot at 1200 RPM whereas the bid from Freightliner
Mid Ontario only provides 950 pound-foot at 1500 RPM. This difference of 100 pound-
foot (or 10%) can be significant for vehicle performance, especially when considering
the topography and terrain of Pickering. A review of other municipalities in Durham
indicate others (Clarington and Whitby) are purchasing trucks with high torque engines
manufactured by International or Stirling.
The bid from Freightliner Mid Ontario indicates the engine supplied is a wet sleeve
engine, however, upon further research it can be stated that the MBE 900 engine is not
a true wet sleeve engine. It is a cast iron block with induction hardened cylinder bores.
The block cannot be replaced as a wet sleeve can, therefore, overhauls are more
complicated and not as cost effective.
The City's fleet of 4 ton and 5 ton dump trucks consists of four International trucks,
model year 1997-2000, five Freightliner trucks; model year 2001-2003 and three
International trucks; model year 2005-2006. The International truck has proven to be
reliable and several have been in service beyond the desirable seven-year life cycle.
The City's heavy equipment operators that operate the latest model International trucks
advise that the in-cab comfort and overall ride of the latest model International trucks
- are superior. This is important during winter control events that can typically run for 13
hours when salting and plowing is required.
Should the order be accepted, Scarborough Truck Centre advises that delivery would
be in December 2006. A call to Freightliner Mid Ontario indicated delivery would be in
March 2007.
Ut75
Report OES 25-06
Date: June 12, 2006
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Subject: Supply & Delivery of 4-Ton Truck
Q-20-2006
Page 4
Upon careful examination of all quotations received by Supply & Services the Municipal
Property & Engineering Division recommends acceptance of the bid from Scarborough
Truck Centre Inc. in the amount of $157,624.00 (GST, PST and License extra) and that
the total net purchase cost of $170.974.92 be approved. This report has been prepared
in conjunction with the Manager Supply & Services who concurs with the foregoing.
Attachments:
1. Supply & Services Memorandum
Prepared By:
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Grant Smith
Superv'sor, Fleet Operations
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Everett Buntsma
Director
Operations & Emergency Services
Vera A. Felgemacher
Manager, Supply & Services
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"-Giílis A. Paterson
Director, Corporate Services & Treasurer
RH:GS
Attachments
Copy: Chief Administrative Officer
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CORPORATE SERVICES DEPARTMENT
MEMORANDUM
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May 15, 2006
RECEIVED
To:
Richard Holborn,
Division Head, Municipal Property & Engineering
MAY 1 5 2006
CITY OF PICKERING
MUNICIPAL PROPERTY & ENGINEERING
From:
Bob Kuzma
Senior Purchasing Analyst
Subject:
Quotation No. Q-20-2006, Supply & Delivery Four-Ton Dump Truck
Closing: May 12, 2006
Quotations have been received for the above project. Six (6) companies were invited to
participate of which two (2) responded. Quotations shall be irrevocable for 60 days after the
official closing date and time.
Copies of the quotations are 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
,;pecifications. Specifications item # 4b states: 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.
The quotation submitted by Freightliner Mid Ontario in the total amount of $171,092.34 is the
low quotation, subject to further evaluation of the vehicles conformance to specification. The
quote from Scarborough Truck Centre Inc. has been adjusted from 7% G.S.T. to 6% G.S.T.,
which will be the applicable amount at time of delivery. Also, please note that the bid from
Scarborough Truck Centre Inc. includes a statement that their bid is subject to component
availability at time of ordering. Orders placed within the next 30 days are least likely to be
affected by this situation. If the quotation from Scarborough Truck Centre is approved, the
components available or not available at the time of order would have to be evaluated and the
decision to proceed would be based on conformance to Specifications - Item # 4.
Please advise with your recommendation any reason the low bid from Freightliner Mid Ontario is
not acceptable.
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('IENT I r()REPORT#~ ..15'-<1(.
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May 15, 2006
Page 2
Richard Holborn
Q-20-2006
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SUMMARY
After
Vendor Amount G.S.T. P.S.T. Lie. Total Calculation
Fee Check
Freightliner $150,081.00 $ 9,004.86 $12,006.48 Incl. $171,092.34 $171,092.34
Mid Ontario
Scarborough $157,624.00 $ 11,033.68 $12,609.00 $741.00 $182,008.60 $180,432.36
Truck Centre
In accordance with Purchasing Policy Item 04.05 revised, an award exceeding $81,000 is
subject to Council approval.
Include in your report to Council:
1.
2.
3.
4.
.- 5.
the appropriate account number(s) to which this work is to be charged and
the budget amount(s) assigned thereto
Treasurer's confirmation of funding
related departmental approvals
any reason(s) why the low bid of Freightliner Mid Ontario is not acceptable,
and
related comments specific to the project
Bidders will be advised of the outcome. Please do not disclose pricing to enquiring bidders.
Subject to Council approval, an approved "on-line" requisition will also be required to proceed.
If you require further information or assistance during the evaluation phase of this quotation
call, feel free to contact me at extension 2131.
Thank you,
/bk
Attachments
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