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Home My WebLink AboutOES 22-04PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: OES 22-04 Date: July 13, 2004 173 From: Richard Holborn, P. Eng. Division Head, Municipal Property & Engineering Subject: Supply and Delivery of 3/4-ton pick-up truck - Q-26-2004 Recommendation: That Report OES 22-04 for the supply and delivery of a 3/4 ton pick-up truck be received and that: Quotation No. Q-26-2004 submitted by Donway Ford Sales Ltd. for the supply and delivery of a 3/4 ton pick-up truck in the amount of $32,520.00 (GST & PST extra) be accepted; The total purchase cost of $37,413.00 and a net purchase cost of $35,136.60 be approved; That Council authorize the Director, Corporate Services & Treasurer to finance the project through the issuance of debt; Debt financing not exceeding the amount of $35,000 for a period not exceeding five years, at a rate to be determined; be approved and the balance of approximately $137 plus financing costs be financed from current funds; Financing and repayment charges in the amount of approximately $7,800 be included in the annual Current Budget for The City of Pickering commencing in 2005 and continuing thereafter until the loan is repaid; The Director, Corporate Services & Treasurer has certified that this loan and repayment thereof falls within the City's Debt and Financial Obligations approved Annual Repayment Limit for debt and other financial obligations for 2004 as established by the Province for municipalities in Ontario; The Treasurer be authorized to take any actions necessary in order to effect the foregoing: and !74 Report OES 22-04 Subject: Quotation Q-26-2004 Date: July 13, 2004 Page 2 6. Staff at the City of Pickering be given the authority to give effect thereto. Executive Summary: Not Applicable Financial Implications: 1. Approved Source of Funds: Account 2004 Capital Budget 2320/6157 Debt (5 Years) Project Code 04-2320-001-02 Total Approved Funds Amount $45,000.00 $45,000.00 Estimated Project Cost Summary Q-26-2004 3/4 ton pick-up truck Air Conditioning Tax Trade-in Credit for Unit #021 Sub Total G.S.T. P.S.T. License Fee Total Purchase Cost G.S.T. Rebate Net Purchase Cost $37,420.00 100.00 5,000.00) 32,520.00 2,276.40 2,601.60 15.00 37,413.00 (2,276.40) $35,136.60 Purchase & Cost Under (over) Approved Funds $9,863.40 Under expenditure is partially due to GST 3% rebate savings that was already captured in the 2004 Current Budget. 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 3/4 ton pick-up truck was approved by Council in the 2004 Capital Budget. This vehicle will replace Unit #021, a 1998 Chevrolet pick-up truck. Supply & Services invited eight vendors to participate in the bidding process, four vendors responded of which two quotations were rejected due to incomplete documents. Upon careful examination of all quotations received, Municipal Property & Report OES 22-04 Subject: Quotation Q-26-2004 Date: July 13, 2004 Page 3 !75 Engineering Division recommends acceptance of the Iow bid from Donway Ford Sales Ltd. in the amount of $32,520.00 (G.S.T., P.S.T. and license extra) and that the net purchase cost of $35,136.60 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: G,,r,~ n t S~nit~( tSupervi~, Fleet Operations RH:vn Attachments I:\COUNCIL\OES 22-04.DOC July 04 Director, Operations & Emergency Services Richard HoIbo~ DiVision Head, MUnicipal Property & Engineering G(llis A. Paterson Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering//?~..__..City Counc~. ~__~ Th~as J. Quinn, Chief Administrative Officer June 22,2004 CORPORATE SERVICES DEPARTMENT MEMORANDUM RECEIVED JUN 2 2004 CITY OF PICKERING MUNICIPAL PROPERTY& ENGINEERING To: From: Subject: Richard Holborn, Division Head, Municipal Property & Engineering Bob Kuzma Purchasing Analyst Quotation No. Q-26-2004, Supply & Deliver One ~ Ton Pickup Truck Closing: June 17, 2004 Quotations have been received for the above project. Eight (8) companies were invited to participate of which four (4) responded. Quotations shall be irrevocable for 90 days after the official closing date and time. Copies of the quotations are attached for your review along with the summary of costs. The quotation requested the bidder to identify costs associated with different purchasing options, these included cash purchase, dealer financing and a lease option. The Treasurer will review these purchase options upon receipt of your recommendation. 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 specifications. Supplementary Quotation Terms & Conditions Item 8 states where a manufacturer deviates from the quotation specifications, they must indicate "NO" and then specify the changes. The acceptance of these deviations reties solely within the discretion of the User Department/Division. The quotation submitted by Donway Ford Saies Ltd. in the total cash purchase amount of $37,413.00 is the Iow quotation and is the only quotation submitted completed with the requested purchase options. This quote is subject to further evaluation of the vehicles conformance to specification. Please advise with your recommendation any reason the iow bid from Donway Ford Sales Ltd. is not acceptable. Richard Holborn .... .~,,._ o __ June 22, 2004 Page 2 SUMMARY Project Code - 04-2320-001-02 Approved Capital Budget- $45,000.00 Financing - Debt (5 year) G.S.T./P.S.T. in Total Total Total Amount Amount Amount Lease Option Cash Dealer 48 month term Purci~ase Finance Optional , buyout at Vendor · 48 month Total Monthly Total cost end of term X Capitalized Lease over term ,, monthly Cost Payment (taxes payment extra) Donway 37,413.00 43,'797.12 40,863.00 665.83 31,959.84 13,114.00 Ford Alex Irvine 37,769.10 Not Not Not Not Not Motors provided provided provided provided provided Village Rejected Chrysler quote not Dodge signed Jeep Ltd. Boyer Rejected Pontiac quote not Buick signed Bidders will be advised of the outcome. Please do not disclose pricing to enquiring bidders. The 2004 Capital budget has identified this purchase as debt financed, therefore a Report to Council is required. Please contact Stan Karwowski or Gil Paterson to review purchase and/or finance details as part of your decision making on this requirement. If you require further information or assistance during the evaluation phase of this quotation call, feet free to contact me at extension 2131 .' Thank you, /bk Attachments B. KuzrnA i ":