HomeMy WebLinkAboutCS 23-17 Report to
PIKE I I V Council
Report Number: CS 23-17
Date: June 12, 2017
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From: Marisa Carpino
Director, Community Services
Subject: Quotation No. Q-43-2017 •
Quotation for Supply and Delivery of Street Sweeper
File: A-1440
Recommendation:
1. That Quotation No. Q-43-2017, submitted by Amaco Construction Equipment Inc. .
in the total amount of$347,730.38 (HST included), be accepted;
2. That the total gross project cost of$347,730.00 (HST included) and the total net
project cost of$313,142.00 (net of HST rebate) be approved;
3. That Council authorize the Director, Finance & Treasurer to finance the projects as
follows:
a) the sum of$250,000.00, as provided for in the 2017 Roads Equipment
Capital Budget be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed 5 years, at a rate to be
determined;
b) the sum of$63,142.00 to be funded by a transfer from the Vehicle
Replacement Reserve;
c) the annual repayment charges in the amount of approximately $55,000.00
be included in the annual Current Budget for the City of Pickering
commencing 2017, or such subsequent year in which the debentures are
issued, and continuing thereafter until the debenture financing is repaid,
and any financing cost to be paid out of the Current Budget;
d) 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;
4. That the draft by-law attached to this report be enacted; and,
5. That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this report.
CS 23-17 June 12, 2017
Subject: Quotation No. Q-43-2017 Page 2
Executive Summary: The Public Works Section, within the Community Services
Department, currently utilizes two street sweepers. The replacement of one street
sweeper (Unit# 040, a 2006 Elgin) was approved in the 2017 Roads Equipment Capital
Budget.
On April 12, 2017, an advertisement was placed on the City's website. Two companies
responded by the closing date of Thursday, May 4, 2017. The quotation submitted by
Amaco Construction Equipment Inc. for one 2017 Johnson VT651 Four Wheel, Pure
Vacuum Street Sweeper has received the highest score from the Evaluation Committee,
meets the required specifications and is recommended for approval.
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
Supply and Delivery of Street Sweeper $307,726.00
HST (13%) , 40,004.38
Total Gross Quotation Cost $347,730.38
2. Estimated Project Costing Summary
Quotation No. Q-43-2017 $307,726.00
HST (13%) 40,004.00
Gross Project Cost $347,730.00
HST Rebate (11.24%) (34,588.00)
Total Net Project Cost $313,142.00 •
CS 23-17 June 12, 2017
Subject: Quotation No. Q-43-2017 Page 3
3. Approved Source of Funds
2017 Roads Equipment Capital Budget
Description Account Code Source of Funds Available Required
Budget
Supply and Delivery 5319.1701.6178 Debt— 5 Years $250,000.00 $250,000.00
of Street Sweeper
Additional Funds Vehicle
Required Replacement
Reserve 0.00 63,142.00
Total Funds $250,000.00 $313,142.00
Net Project Cost under (over) Approved Funds ($63,142.00)
This project has an over expenditure that exceeds 10% of the approved amount. The
over expenditure is mainly due to the higher U.S. exchange rate.
In accordance with Section 11.04 of the City's Financial Control Policy, over expenditure
exceeding 10% of the approved capital expenditure shall require the approval of the
Treasurer, the Chief Administrative Officer, and Council.
The Director, Finance & Treasurer concurs that the additional funds required will be
funded from the Vehicle Replacement Reserve, savings realized from vehicle
purchases earlier in the year due to competitive bidding.
Council approval is also being sought at this time for the additional funds required.
Discussion: The Public Works Section, within the Community Services Department,
currently utilizes two street sweepers. The replacement of one street sweeper (Unit #
040, a 2006 Elgin) which is currently out of service was approved in the 2017 Roads
Capital Budget. The City requires a compliment of two road sweepers to adequately
maintain our subdivision roads.
In 2017, there were vehicle purchases acquired through quotations Q-24-2017, Q-25-
2017, and Q-26-2017 from which we realized significant savings due to competitive
bidding. These savings will be re-directed to fund the additional cost required due the
higher U.S. exchange rate.
After careful review of all submissions received, Public Works staff recommends
acceptance of the Quotation No. Q-43-2017 submitted by Amaco Construction
Equipment Inc. for one 2017 Johnson VT651, Four Wheel, Pure Vacuum Street
Sweeper in the amount of $307,726.00 (plus HST) and that the total net project cost
of$313,142.00 (net of HST rebate) be approved.
CS 23-17 June 12, 2017
Subject: Quotation No. Q-43-2017 Page 4
Attachments: •
1. Supply & Services Memorandum dated May 9, 2017
2. Supply & Services Memorandum dated May 17, 2017
3. Being a By-law to authorize the Supply and Delivery of Street Sweeper project and
the issuance of debentures in the amount of$250,000.00
Prepared By: Approved/Endorsed By:
Bob uzma CMP, AMCT Marisa arpino, MA
Supe isor, Public Works Administration Director, Community Services
Vera A. Felgemacher Stan Karwowski, MBA, CPA, CMA
CSCMP, CPPO, CPPB, CPM, CMM Ill Director, Finance & Treasurer
Manager, Supply & Services
Caryn Kong, CPA, CGA
Senior Financial Analyst-Capital and
Debt Management
BK:nw
Recommended for the consideration
of Pickering City Council
6P/11°)
Tony Prevedel, P. Eng.
Chief Administrative Officer
4061
PICKERiNG Memo
To: Marisa Carpino May 17, 2017 revised
Director, Community Services
From: Vera A. Felgemacher
Manager,Supply & Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services
Subject: Quotation No. Q-43-2017
Quotation for Supply and Delivery of Street Sweeper
Closing: Thursday, April 28, 2017
File: F-5300-001
Further to the memo dated May 9, 2017, two quotations proceeded to Stage II evaluation.
A summary of the Stage ll and Ill evaluation results for each quotation is attached.
Amaco Construction. Equipment Inc. is the top ranked respondent with a submitted price of
$307,726.00 (HST excluded).
Delivery times provided by each Respondent are also indicated on the attached spreadsheet.
A budget of$250,000.00 was provided to Supply & Services for this procurement. If the
recommendation to award exceeds the budgeted amount, refer to Financial Control Policy Item
11 for additional instructions.
In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out
below excludes HST.
In accordance with Purchasing Policy, Item 06.11, 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:
(c) Over$250,000, the Manager may approve the award, subject to the approval of the
Director, Treasurer, CAO and Council.
Please provide your recommendation in memo form, as well as an on-line requisition.
Please direct all enquiries to Supply & Services. Respondents will be advised in due
course.
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If you/require further information or assistance, do not hesitate to contact me or a member
of S4ppiy & Services.
VAF/sb
Attachments (1)
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Page 2 of 2
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64661 •
DICKERING • Memo
To: Marisa Carpino May 9,,2017 revised
Director, Community Services
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Administrative Assistant, Community Services
Supervisor, Supply & Services
Subject: Quotation No. Q-43-2017
Quotation for Supply and Delivery of Street Sweeper
Closing: Thursday, May 4, 2017
File: F-5300-001
Quotation Q-43-2017 was sent to three (3) companies and advertised on the City's website, of
which two (2) companies have responded.
There are 2 stages in the evaluation process which are outlined in Part 2 — Evaluation of
Quotations of the quotation document.
Stage I determines which submissions satisfy all the mandatory submission requirements and
provides Respondents the opportunity to rectify deficiencies. Two quotations proceeded to
Stage II, which consists of scoring each qualified quotation on the basis of the rated criteria
outlined in Part 2 of the quotation document.
Refer to Part 2— Evaluation of Quotations, Item 2.3.2— Rated Criteria, Page 7 for instructions
on how each of the quotations is to be evaluated by the Evaluation Committee. Each member
will review the submissions individually and carefully according to the criteria in the bid
document.
Upon completion of the individual scoring, return all Evaluation Committee score sheets with
signatures to Sue Burgess, Buyer. Pricing has been evaluated by Supply & Services, and a
score out of 40 points has been applied to the evaluation form: The completed evaluation
results will be provided to the Evaluation Committee for review and approval.
The following list of attachments has been provided to assist the Evaluation Committee to complete
their individual evaluations:
. 1. Stage II —Evaluation of Rated Criteria;
2. Evaluation Form;
3. Spreadsheet showing points awarded for pricing; and
4. Copy of Request for Quotation Document
Hard copies of the submissions will be forwarded to the Supervisor, Public Works Administration, for
distribution to the Evaluation Committee.
Please direct all enquiries to Supply &Services. Respondents will be advised of the outcome when
the contract has been awarded.
If you require further information, please contact myself or a member of Supply&Services.
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VAF/sb'
Attachments (4)
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the Supply and
Delivery of Street Sweeper project in the City
of Pickering and the issuance of debentures in
the amount of$250,000.00
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 debenture financing for the
Supply and Delivery of Street Sweeper project; and,
Whereas before authorizing the Supply and Delivery of Street Sweeper project, 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 is not required 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 23-17 on the date hereof and awarded
Quotation No. Q-43-2017 for the Supply and Delivery of Street Sweeper project;
BY-LAW NO Page 2 .
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the project referred to as "Supply and Delivery of Street
Sweeper project";
2. That the estimated costs of the project in the amount of$313,142.00 be financed as
follows:
a) That the sum of$250,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed five years, at a
rate to be determined;
b) That the sum of$63,142.00 be funded from the Vehicle Replacement
Reserve;
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 2017 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid.
By-law passed this 12th day of June, 2017
David Ryan, Mayor
Debbie Shields, City Clerk