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DICKERING
Report to
Executive Committee
Report Number: CS 08-19
Date: June 17, 2019
From: Marisa Carpino
Director, Community Services
Subject: Quotation No. Q-7-2019
- Supply and Delivery of Road Grader with Attachments
- File: A-1440-001-19
Recommendation:
1., That Quotation No. Q-7-2019 submitted by Toromont CAT in the amount of $361,823.10
(HST excluded) be accepted;
2. That the total gross project cost of $410,555.00 (HST included), including the amount of
the quotation, optional equipment (Automated Grade Control system) and other
associated costs, and the total net project cost of $369,717.00 (net of HST rebate) be
approved;
3. That the Director, Finance & Treasurer be authorized to finance the total net project cost
in the amount of $369,717.00 as follows:
a) the sum of $350,000.00, as provided for in the 2019 Capital Budget, be increased to
$369,000.00, to be financed by the issue of debentures by the Regional Municipality
of Durham over a period not to exceed five years;
b) the balance sum of $717.00 to be funded from property taxes;
c) the annual repayment charges in the amount of approximately $81,150.00 be
included in the annual Current Budget for the City of Pickering commencing 2019, 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 officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
CS 08-19 June 17, 2019
Subject: Quotation No. Q-7-2019 Page 2
Executive Summary: The Public Works Section, within the Community Services
Department, currently utilizes two road graders with attachments for the approximate 100 km
of unpaved roads in the northern rural areas of Pickering. The 2009 road grader with
attachments (unit #100) was approved for life -cycle replacement in the 2019 Capital Budget.
An advertisement was placed on the City's website. Two companies responded by the closing
date of Tuesday, April 9, 2019. The quotation submitted by Toromont CAT for one Caterpillar
140 road grader, has received the highest score from the Evaluation Committee, meets the
required specifications, and is recommended for approval.
In accordance with the 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 Road Grader
Automated Grade Control System
Total
HST (13%)
Total Gross Quotation Cost
$339,869.18
21,953.92
361,823.10
47,037.00
$408,860.10
2. Estimated Project Costing Summary
Quotation No. Q-7-2019 and Automated Grade Control System
GPS/2 Way Radio (Optional price)
Total
HST (13%)
Gross Project Cost
HST Rebate (11.24%)
Total Net Project Cost
$361,823.00
1,500.00
363,323.00
47,232.00
$410,555.00
($40,838.00)
$369,717.00
CS 08-19 June 17, 2019
Subject: Quotation No. Q-7-2019 Page 3
3. Approved Source of Funds
2019 Roads Equipment Capital Budget
Description Account Code Source of Funds Available Required
Budget
Supply and Delivery 5319.1901.6178 Debt - 5 years $350,000.00 $369,000.00
of Road Grader with
Attachments Property Taxes 717.00
Total Funds $350,000.00 $369,717.00
Net Project Cost under (over) Approved Funds ($19,717.00)
Discussion: The Public Works Section, within the Community Services Department,
currently uses two road graders with attachments. These road graders are used year round to
maintain over 100 kms of unpaved roads in north Pickering.
One existing road grader, unit #100, was approved for life -cycle replacement in the 2019
Capital Budget. An Evaluation Committee consisting of Public Works staff met on April 24,
2019 and each committee member evaluated the quotations based on the rated criteria. A
combined average score for each quotation was determined as part of Stage II of the
evaluation process. Toromont CAT received the highest score.
It has been determined that the optional equipment quoted in the quotation for an Automatic
Grade Control system (AGC) be purchased. The AGC system is an essential piece of
equipment that will assist the operator in maintaining gravel roads to a higher standard than at
present. City staff have done their due diligence to ensure that the AGC system would be a
benefit to the City by conversing with other municipalities that currently utilize the system.
During these discussions, the benefits of an AGC system included 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.
After careful review of all submissions received, Public Works staff recommends acceptance
of the Quotation No. Q-7-2019 submitted by Toromont CAT for one new road grader with
attachment in the amount of $339,869.18 (plus HST) as well as optional pricing for an AGC
system for $21,953.92 (plus HST) and that the total net project cost of $369,717.00 (net of
HST rebate) be approved.
CS 08-19
June 17, 2019
Subject: Quotation No. Q-7-2019 Page 4
Attachments:
1. Supply & Services Memorandum dated May 3, 2019
2. By-law to authorize the Supply and Delivery of Road Grader with Attachments project and
the issuance of debentures in the amount of $369,000.00
Prepared By: Approved/Endorsed By:
tt Currer
Supervisor, Municipal Garage
Rob Burlie, P. Eng.
Manager, Public Works
MC:nw
Marisa Ca+rpino, MA
Director, Community Services
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
Ray Rodrigues, CPPB
Manager, Supply & Services
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P. Eng.
Chief Administrative Officer
C4a,i
DICKERING
ATTACHMENT tt __ i'0 REPORT#(5__ )1
Memo
To: Marisa Carpino April 26, 2019
Director, Community Services
From: Lisa Chang
Buyer, Supply & Services
Copy: Administrative Assistant, Community Services
Manager, Supply & Services
Supervisor, Roads Operations
Subject: Quotation No. Q-7-2019
Supply & Delivery of Road Grader with Attachments
Closing Date: Tuesday, April 16, 2019 at 12:00 Noon.
File: F-5300-001
Quotation Q-7-2019 was advertised on the City's website on March 19, 2019 of which two (2)
company(ies) have responded.
Stage I — Mandatory Submission Requirements — determines which submissions satisfy all the
mandatory submission requirements and provides Respondents the opportunity to rectify
deficiencies. Two (2) proposals proceed to Stage II — Evaluation.
A summary of the Stage II and III evaluation results for each quotation is attached.
Toromont CAT is the top ranked respondent with a submitted price of $339,869.18 (HST
Excluded).
A budget of $350,000.00 was provided to Supply & Services for this procurement.
In accordance with Appendix D — Request for Quotation Particulars, Item 16 — Insurance, the
following documents will be requested from Toromont CAT:
(a) The City's certificate of insurance or approved alternative form shall be
completed by the bidder's agent, broker or insurer.
Please advise ifs Supply & Services is to proceed with this task.
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.
Subject to receipt of approvals on Health & Safety and insurance documents, please provide
your recommendation in report form. After receiving Council's approval, an approved "on-line"
requisition will be required to proceed.
Please direct all enquiries to Supply & Services. Respondents will be advised in due
course.
If you require further information or assistance, do not hesitate to contact me or a member
of Supply & Services.
LC
Attachments (2)
Page 2 of 2
liACH NEN r TO l
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the Supply and
Delivery of One New Latest Model Year Road
Grader with Attachments project in the City of
Pickering and the issuance of debentures in
the amount of $369,000.00
QRT# 5c' -i9
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 One New Latest Model Year Road Grader with Attachments
project; and
Whereas before authorizing the Supply and Delivery of One New Latest Model Year
Road Grader with Attachments 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, the Local Planning
Appeal Tribunal 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 the Local Planning Appeal Tribunal approval is not
required, the Council of the City approved report CS 08-19 on the date hereof and
awarded Quotation No. Q-7-2019 for the Supply and Delivery of One New Latest Model
Year Road Grader with Attachments 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 One
New Latest Model Year Road Grader with Attachments";
2. That the estimated costs of the project in the amount of $369,717.00 be financed as
follows:
a) the sum of $369,000.00 be financed by the issue of debentures by the
Regional Municipality of Durham over a term not to exceed five years; and
b) the sum of $717.00 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 2019 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid.
By-law passed this 24th day of June, 2019
David Ryan, Mayor
Susan Cassel, City Clerk