HomeMy WebLinkAboutOES 31-04PICKERING
REPORT TO
EXECUTIVE COMMITTEE
Report Number: OES 31-04
Date: September 28, 2004
From:
Richard W. Holborn, P. Eng.
Division Head, Municipal Property & Engineering
Subject:
Supply and Delivery of High Pressure Hot Water System
Informal Quotation
Recommendation:
That Report OES 31-04 regarding the supply and delivery of a High Pressure
Hot Water System be received and that:
The informal quotation submitted by Hazeland Manufacturing Inc. for the supply
and delivery of a High Pressure Hot Water System in the amount of $ 23,785.00
(GST & PST extra) be accepted;
The total purchase cost of $27,352.75 and a net purchase cost of $25,687.80 be
approved;
That Council authorize the Director, Corporate Services and Treasurer to finance
the project through an internal loan;
a)
b)
Internal loan financing not exceeding the amount of $25,000 for a period not
exceeding five years, at a rate to be determined be approved and the balance of
approximately $688 plus financing costs be financed from current fund
c)
Financing and repayment charges in the amount of approximately $5,775 be
included in annual Current Budget for The City of Pickering commencing in 2005
and continuing there after until the loan is repaid;
d)
The Director, Corporate Services and 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
forgoing: and
The appropriate staff of the City of Pickering be given the authority to give effect
thereto.
Report OES 31-04 Date:
Subject: Supply & Delivery of High Pressure Hot Water System
Informal Quotation
September 28, 2004
Page 2
Executive Summary: Not Applicable
Financial Implications:
1.
Approved Source of Funds:
Account Project Code
2004 Capital Budget 2320/6178 04-2320-004-02
Debt (5 years)
Total Approved Funds
Amount
$25,000.00
$25,000.00
Estimated Project Cost Summary
High Pressure Hot Water System
G.S.T.
P.S.T.
Total Project Cost
G.S.T. Rebate
Net Project Cost
$23,785.00
$ 1,664.95
$ 1,902.80
$27,352.75
($ 1,664.95)
$ 25,687.80
=
Project & Cost Under (over) Approved Funds ($ 687.80)
Overexpenditure is understated due to the 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. The 2004
Capital Budget as approved by Council originally provided for the purchase to be debt
financed. It is now proposed that due to the relatively small sum involved, this purchase
be financed through an internal loan.
Background: Municipal Operations removed its aging culvert steamer from service in
2003 for mechanical and health and safety concerns. An evaluation of this critical piece
of equipment revealed that replacement/repair parts were no longer available. A
replacement was identified in the 2004 Capital Budget and approved by Council.
Through market research, Fleet Operations identified a system that will meet the City's
requirements. The equipment also enhances the City's ability to more effectively
CORP0227-07/01
Report OES 31-04 Date: September 28, 2004
Subject: Supply & Delivery of High Pressure Hot Water System
Informal Quotation
Page 3
respond to acts of vandalism as the new "culvert steamer" delivers enough pressure to
rid most surfaces of spray paint applied by vandals. These functions can be performed
safely as the system utilizes hot water as opposed to the antiquated method of live
steam. This is a much safer system for staff and represents a more prudent use of city
resources because of its versatility. An additional benefit of the equipment is that it is
also environmentally friendly as no harsh chemicals or detergents are required for paint
removal operations.
Based on the informal quotes received from three vendors and an in-field evaluation
process it is the recommendation of the Municipal Property & Engineering Division that
the City of Pickering proceed and approve the purchase of the High Pressure Hot
Water System and quoted by Hazeland Manufacturing Inc.
Attachments:
1. Not Applicable
CORP0227-07/01
Report OES 31-04 Date: September 28, 2004
Subject: Supply & Delivery of High Pressure Hot Water System
Informal Quotation Page 4
Prepared By:
.///~--Gr~t Smith ~'
~SSpervisor, Fleet Operations
/'~" Manager, Supply & Se~ices
Approved / Endorsed¢~'y:
Ever~
Director, Operations & Emergency Services
Gillis A. Paterson
Director, Corporate Services & Treasurer
ard Holl~rn w
ion Head,
cipal Property & Engineering
GS:vn
Attachments
Copy: Chief Administrative Officer
Director, Corporate Services & Treasurer
Financial Analyst
Recom ended, the Consideration of
Thomas J~,G~inn,/(~ief Administrative Officer
CORP0227-07/01