HomeMy WebLinkAboutCS 26-12
Report To
Executive Committed 8
PICKERING
Report Number: CS 26-12
Date: May 14, 2012
From: Everett Buntsma
Director, Community Services
Subject: Supply & Delivery of One Telescopic Boom Excavator
2012 Gradall XL4100-IV 6x4 Hydraulic Excavator
File: A-1440
Recommendation:
1. That Report CS 26-12 of the Director, Community Services regarding the supply
and delivery of One Telescopic Boom Excavator be received;
2. That Quotation No. GR12-0031 dated April 12, 2012, as submitted by Amaco
Equipment for the supply and delivery of One Telescopic Boom Excavator in the
amount of $340,560.00 (HST extra) be accepted;
3. That the total gross cost of $384,832 (HST included) and a net cost of $346,554
be approved;
4. That Council authorize the Director, Corporate Services & Treasurer to finance
the project as follows as provided for in the 2012 Capital Budget;
(a) that the sum of $345,000 be financed by the issue of debentures through
the Regional Municipality of Durham for a period not exceeding five years,
at a rate to be determined;
(b) that the balance of $1,554 plus issuing costs be funded from property taxes
or other revenues available to theTreasurer;
(c) that the financing and repayment charges in the amount of approximately
$74,260 be included in the annual Current Budget for the City of Pickering
commencing in 2013 and continuing thereafter until the loan is repaid and
any financing cost be paid out of the current budget;
(d) that 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;
5. That the draft by-law attached to this report be enacted; and
119
Report CS 26-12 May 14, 2012
Subject: Supply & Delivery of One Telescopic Boom Excavator
2012 Gradall XL4100-IV 6x4 Hydraulic Excavator Page 2
6. Further that the appropriate City of Pickering Officials be authorized to take
necessary action to give effect hereto;
Executive Summary: The City of Pickering currently utilizes a fleet of equipment to
perform a wide range of road maintenance activities. A replacement for the oldest
Telescopic Boom Excavator, a Tandem Axle 1995 Badger, was identified and was
approved in the 2012 Roads Capital Budget.
Upon review of all information, it is the recommendation of the Community Services
Department that the purchase of a 2012 Gradall XL 4100 IV, as negotiatied by the
Manager, Supply & Services with Amaco Equipment in the amount of $384,832.80
(HST included) be accepted and the net purchase cost of $346,553.86 be approved.
Financial Implications:
1. Negotiated Amount
One Telescopic Boom Excavator $340,560.00
HST (13%) 44,272.80
Total Gross Negotiated Cost 384,832.80
HST Rebate (11.24%) (38,278.94)
Total Net Negotiated Cost $346,553.86
2. Approved Source of Funds
012 Roads Capital Budget
Item Account Code Source of Budget Required
Funds
Excavator 5320.1205.6178 Debt - 5 Years $385,000 $345,00
Property Taxes 1,554
Total Funds $385,000 $346,554
4. Project Cost under (over) approved funds by $38,446
The Director, Corporate Services and Treasurer has updated the City's 2012 Annual
Repayment Limit and certified that this loan and the repayment falls within the City's
Annual Repayment Limit for debentures and financial obligations, and therefore, the
Ontario Municipal Board approval is not required prior to City Council's authorization.
CORP0227-07/01 revised
Report CS 26-12 May 14, 2012
.1L
Subject: Supply & Delivery of One Telescopic Boom Excavator
2012 Gradall XL4100-IV 6x4 Hydraulic Excavator Page 3
Discussion: The purchase of one telescopic boom excavator was
approved by Council in the 2012 Roads Capital Budget. This machine will replace the
City's oldest excavator, a 1995 Badger 460, which has experienced a catastrophic
failure of the engine that powers the excavator portion of the machine. Specifications
for the replacement were compiled utilizing previous purchases and a market analysis
by the Manager, Municipal Operations & Fleet Services. Supply & Services advertised
a Request for Expression of Interest No. RFEI-1-2012 on the City of Pickering's website
with a closing date of March 26, 2012 to which one vendor, Amaco Equipment,
responded.
Under Section 09.01 of the Purchasing Policy regarding single source products by the
Manager,-Supply & Services:
"the Manager, is authorized to make single or sole source purchases,
without competitive bids and enter into a contract if any of the
following conditions apply
Section 09.04, Sole Source, Item (d):
"The purchase involves goods or services
for which there is no reasonable substitute or competitive product."
The appropriate Director shall summarize the rationale for a single or sole source
request in a memo to the Manager (Section 09.05). Since this sole source purchase
exceeds $125,000 and is subject to Council approval, the rationale is summarized
within this report. (Section 09.09).
Authority for the Manager, Supply & Services to negotiate in this process is provided in
Section 09.10 of the Purchasing Policy as follows:
"The Manager and approprirate Director or designate is authorized to
enter into negotiations without competitive bids and enter into a
contract if deemed advantageous."
A meeting was held on Friday, April 20, 2012 at the Civic Complex with the vendor,
Manager, Operations & Fleet Services and Manager, Supply & Services to review and
negotiate the quotation. The Manager, Supply & Services entered into negotiations
with Amaco Equipment, the result of these negotiations have resulted in a 1 % reduction
in the price before HST, as well as payment terms acceptable to the Corporate Services
Department.
CORP0227-07/01 revised
, ~ lport CS 26-12 May 14, 2012
Subject: Supply & Delivery of One Telescopic Boom Excavator
2012 Gradall XL4100-IV 6x4 Hydraulic Excavator Page 4
Ii
It is, therefore, the recommendation of the Community Services Department that the
purchase of a 2012 Gradall XL 4100 IV as negotiatied by the Manager, Supply &
Services with Amaco Equipment in the amount of $384,832.80 (HST included) be
accepted and the net purchase cost of $346,553.86 be approved.
Attachments:
1. Summary memo from Supply & Services dated April 2, 2012.
2. Being a by-law to authorize the supply and delivery of One Telescopic Boom
Excavator in the City of Pickering and the issuance of debentures in the amount of
$345,000.
Prepared By: Approved/Endorsed By:
r
r~
dra , Smith :Divr er tt Bunts a, NPD, CMM
Man ger ctor
Muni ipal Operations & Fleet Services ommunity Services
Vera A. Felge acher Gillis A. Paterson, CMA
C.P.P., CPPO, C 11PB' C.P.M., CMM III Director, Corporate Services &
Manager, Supply & Services Treasurer
Caryn Kong, CGA
Senior Financial Analyst-Capital &
Debt Management
GS:nw
Recommended for the consideration
of Pickering City Council
a- 7W Zoiz
T. Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised
TOREPORT# C~o~~2J
1f4' Of kl memo
P1. ERIN
To: Everett Buntsma April 2, 2012
Director, Community Services
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Manager, Operations & Fleet Services
Subject- RFEI - 1-2012 - Tandem Axle Telescopic Boom Excavator
File: F-5300-001
A tandem axle telescopic boom excavator has been approved in the 2012 Capital Budget.
Understanding from the Manager, Operations & Fleet Services there is only one (1) Vendor, the
Manager, Operations & Fleet Services contacted other municipalities to see what type of excavator
they used, (single or tandem axle) as part of market research.
Request for Expression of Interest No. RFEI-1-2012 was advertised on the City's website, which
closed on March 26, 2012. One submission was received from Amaco Construction Equipment,
specifying a Gradall XL4100 IV 6X4 Hydraulic Excavator, which also included a price quote.
In accordance with Item 09.01 of the Purchasing Policy, the Manager is authorized to make single
or sole source purchases, without competitive bids and enter into a contract under certain
conditions. Examples of Sole Source are listed in Item 09.04. Please review the examples. It
appears the following example may apply here.
Item 09.04 (d) - The purchase involves goods or services for which there is no reasonable substitute
or competitive market.
In accordance with Item 09.05, the appropriate Director shall summarize the rationale for a sole
source request in a memo to the Manager. In accordance with Item 09.05, a sole source exceeding
$125,000 is subject to Council approval.
If this equipment conforms to specifications and you wish to proceed in this direction, please provide
the required memorandum to the Manager, Supply & Services. A "sole source" memorandum
template will be provided to you under separate cover. The memorandum should be included in
your Report to Council.
Item 09.10 - The Manager and appropriate Director or designate is authorized to enter into
neg tiations without competitive bids and enter into a contract if deemed advantageous.
If your require further information, please contact me or a member of Supply & Services.
Attachrr b~ ,,~'t
ATTACHMENT #_2 _ TO REPORT#_..
of 2-
I
The Corporation of the City of Pickering
123
By-law No.
Being a by-law to authorize the supply and
delivery of One Telescopic Boom Excavator in
the City of Pickering and the issuance of
debentures in the amount of $345,000
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 the supply and delivery of One
Telescopic Boom Excavator; and,
Whereas before the Council of the City authorized the supply and delivery of One
Telescopic Boom Excavator, 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 was not required prior to City Council's authorization 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 26-12 on the date hereof for the supply and
delivery of One Telescopic Boom Excavator;
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
ATTACHMENT#_ ~ TOREPORT# (26
By-law No. Z Page 2
24
1. That the City proceed with the supply and delivery of One Telescopic Boom
Excavator;
2. That the estimated costs of the project in the amount of $346,554 be financed as
follows:
a) That the sum of $345,000 be financed by the issue of debentures by The
Regional'Municipality of Durham over a period not to exceed five years;
b) That the balance of $1,554 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 2013 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 22nd day of May, 2012.
i
David Ryan, Mayor
Debbie Shields, City Clerk