HomeMy WebLinkAboutOPS 11-22 Report to Council
Report Number: OPS 11-22
Date: December 5, 2022
From: Brian Duffield
Director, Operations
Subject: 2023 Pre-Budget Approval Purchase Order for Supply & Delivery
of One Gradall Hydroscopic Excavator
-File: A-1440
Recommendation:
1. That the quotation submitted by Amaco Equipment, dated July 7, 2022, in the amount of
$767,270.00 (HST included) be accepted;
2. That the total gross project cost of $767,270.00 (HST included) and the total net project
cost of $690,950.00 (net of HST rebate) be approved;
3. That Council authorize the Director, Finance & Treasurer to finance the project as
follows:
a) 2023 pre-budget funding approval in the amount of $770,000.00 from the 2023
Roads Capital Budget from the Major Equipment Reserve;
b) 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; and,
4. That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The purpose of this report is to seek Council’s pre-budget approval
to enter into a contract with Amaco Equipment for the Pre-Approval Purchase Order for Supply
& Delivery of One Gradall Hydroscopic Excavator.
The 2023 Capital Budget submission includes the life cycle replacement of one 2005 Gradall
Hydroscopic Excavator, unit #114, which is a heavy excavator essential for roadwork and
ditching. This 17 year old piece of equipment has reached the end of its useful life cycle and is
scheduled for replacement. Extending the life cycle any longer is not feasible as major
component breakdowns and repairs are likely and would be prohibitively expensive along with
long periods of down time and loss of essential service.
OPS 11-22 December 5, 2022
Subject: Pre-Approval Purchase Order for Supply & Delivery Page 2
of One Hydroscopic Excavator
The pricing for the 2023 draft Capital Budget has been prepared as accurately as possible and
reflects current volatile market conditions. To ensure the submitted budget for 2023 reflects
current market costs, staff obtained a quote from Amaco Equipment that confirmed a current
value amount of $767,270.00 for a 2022 Gradall Hydroscopic Excavator. Amaco Equipment has
indicated that they expect a 21 percent increase for the 2023 model year based on steel sur-
charges as base rate price increase, and further increases occur due to the US exchange rate.
This increase will add $161,167.00 to the purchase of a 2023 Gradall Hydroscopic Excavator.
Gradall Industries is a Vendor of Record with Canoe Procurement Group, a collaborative
agency which the City is a member of, and therefore, meets the criteria of a Cooperative
Purchase as per Section 13.01 of the Purchasing Policy. Amaco Construction Equipment Inc.
is the sole distributor of Gradall in Ontario and therefore allows the City to seek a quotation
from Amaco Construction Equipment Inc. Operations are seeking approval to work with Supply
& Services and request pre-budget approval to proceed with issuing a purchase order to
Amaco Construction Equipment Inc. in order to secure 2022 pricing and protect the City
against potential inflation price increases, estimate at $161,167.00 in 2023.
Financial Implications:
1. Quotation Amount
Quotation $679,000.00
HST (13%) 88,270.00
Total Gross Tender Cost 767,270.00
2. Estimated Project Costing Summary
Quotation $679,000.00
Total Project Cost $679,000.00
HST (13%) 88,270.00
Total Gross Project Costs $767,270.00
HST Rebate (11.24%) (76,320.00)
Total Net Project Costs $690,950.00
3. Approved Source of Funds -Operations Centre Capital Budget
Pre-Approved Code Source of Funds Budget Funds Required
C10315.2304.01 Major Equipment
Reserve
$770,000.00 $690,950.00
Project Cost under (over) approved funds by $79,050.00
OPS 11-22 December 5, 2022
Subject: Pre-Approval Purchase Order for Supply & Delivery Page 3
of One Hydroscopic Excavator
Discussion: The 2023 Capital Budget submission includes the life cycle replacement of a
Hydroscopic Excavator, unit #114 (2005 Gradall). This is a 17 year old piece of equipment that
has reached the end of its useful life cycle and is scheduled for replacement. Over the last two
years in service, Fleet Operations has spent over $40,000.00 in repairs. Continued
maintenance and repair costs are expected to double in the upcoming years as this unit
continues to age. Entering into a contract to purchase a new Gradall Hydroscopic Excavator
prior to 2023 budget approval will save the City approximately $161,167.00 in potential inflation
costs in 2023.
Attachment:
1. Quotation from Amaco Equipment dated July 7, 2022
Prepared By:
Original Signed By:
Matt Currer
Manager, Fleet Operations
Original Signed By:
Brian Duffield
Director, Operations
BD:mc
Approved/Endorsed By:
Original Signed By:
Cathy Bazinet
Manager, Procurement
Original Signed By:
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
SAME AS BELOW 01 - AMACO
07/07/2022 15:58:29 (O) 1
02
PICKE001 9054204616 A01030
CITY OF PICKERING TBD
ONE THE ESPLANADE
PICKERING ON L1V 6K7
DAVID BRIDLE DBR / _3B
Attention: Matthew Currer
Description ** Q U O T E ** EXPIRY DATE: 12/31/2022 Amount
NEW GRADALL 2022 XL4100 V 6X4 HIGHWAY SPEED WHEELED 679000.00
EXCAVATOR
**
OPTIONS INCLUDED:
**
HYDRAULIC EXCAVATOR, REMOTE, HIGHWAY SPEED 6X4
Beacon Warning Light LED Amber - Per PA DOT
Spec EQN-120C
Foot Pedal Operated Auxiliary Hydraulics UniDirectional
Flow
Low Pressure Aux. Return To Tank
Seat Belt Upper w/Shoulder Restraint $320.00 $320.00
Sun Visor - Upper Cab
Air Restriction Gauge - Chassis Cab
AM/FM Stereo Radio With Weatherband -
Beacon Light -LED - Chassis - w/Branch Guard
Camera System
Left Hand Rear Step
**
OPTIONS NOT INCLUDED:
**
72" DITCHING BUCKET--$9,700
FIXED THUMB GRAPPLE--$15,400
LIMB SHEAR--$18,900
Sale # 01 Subtotal: 679000.00
ON HST: 88270.00
TOTAL: 767270.00
Subtotal: 679000.00
ON HST: 88270.00
Authorization: _________________________ Quote Total: 767270.00
WE THANK YOU FOR YOUR INTEREST IN AMACO EQUIPMENT AND OUR PRODUCTS.
SAME AS BELOW 01 - AMACO
07/07/2022 15:58:29 (O) 2
02
PICKE001 9054204616 A01030
CITY OF PICKERING TBD
ONE THE ESPLANADE
PICKERING ON L1V 6K7
DAVID BRIDLE DBR / _3B
Attention: Matthew Currer
Description ** Q U O T E ** EXPIRY DATE: 12/31/2022 Amount
AMACO IS HERE TO SUPPORT YOUR EQUIPMENT INVESTMENT.
ARE YOU INTERESTED IN A PREVENTATIVE MAINTENANCE PROGRAM?
CALL US TODAY FOR A FACTORY TRAINED AND CERTIFIED PROGRAM.
TERMS OF SALE:
**
QUOTED IN CND FUNDS AT 1.30 FX RATE -- SUBJECT TO CHANGE AT
TIME OF ORDER
**
FOB YOUR FACILITY
**
TRAINING INCLUDED
**
2 YEAR/3000HRS LIMITED WARRANTY
**