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Home My WebLink AboutOES 36-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: OES 36-05 Date: September 29, 2005 Richard Holborn, P. Eng. Division Head, Municipal Property & Engineering Subject: Supply and Delivery of Two (2) One-Ton Dump Trucks Quotation No.Q-45-2005 Recommendation: 1. That Report OES 36-05 regarding the supply and delivery of Two (2) One-ton Dump Trucks be received; and 2. That Quotation No. Q-45-2005 submitted by Donway Ford Sales Ltd. for the supply and delivery of two (2) One-ton Dump Trucks in the amount of $84,706.00 plus applicable taxes be accepted, with the estimated annual repayment of approximately $26,000 being included in the annual Current Budget; and 3. The total purchase price of $96,871.90 be approved; and 4. That Council authorize the Director, Corporate Services & Treasurer to finance the project through an internal loan; and 5. Staff at the City of Pickering be given the authority to give effect hereto. Executive Summary: Not Applicable Financial Implications: 1. Approved Source of Funds: Account 2005 Capital Budget 2718/6157 2005 Capital Budget 2718/6157 Project Code 05-2718-002-01 05-2718-002-02 Amount $45,000.00 $65,000.00 Report OES 36-05 Subject: Supply and Delivery of Two (2) One-Ton Dump Trucks Q-45-2005 September 29, 2005 Page 2 Estimated Project Costing Summary Q-45-2005 Per Vehicle $42,353.0O $42,353.00 Sub Total $84,706.00 G.S.T. $ 5,389.42 P.S.T. $ 6,776.48 License fees $ 30.00 Gross purchase cost $96,871.90 G.S.T. Rebate ($ 5,389.42) Net purchase cost $91,482.48 Purchase Cost (under) over Approved Funds ($18,517.52) The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs: The loan will be for a period of four years commencing in 2005 an amount of approximately $26,000 was included in the 2005 annual Current Budget. Any amount not required for repayment in 2005 will be used to reduce the principal amount financed. Background The purchase of a utility vehicle and a one-ton stake body dump truck, as replacements to existing vehicles in the corporate fleet were identified and approved by Council in the 2005 Capital Budget. After analyzing the operational requirements of the Parks area, it has been determined that the purchase of a second one-ton stake body dump truck rather than a utility vehicle would better fulfill these needs. Fleet Operations compiled specifications from previous purchases as well as a recent market research. Supply & Services invited eight (8) companies to participate of which three (3) responded. Upon careful examination of all quotations received by Supply & Services, the Municipal Property & Engineering Division recommends the acceptance of the Iow bid submitted by Donway Ford Sales Ltd. in the amount of $84,706.00 (G.S.T. and P.S.T.extra) and that the net purchase cost of $91,482.48 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. The approved 2005 Capital Budget for these items recommended funding through either an internal loan or dealer financing. The Director, Corporate Services and Treasurer has recommended that purchase be made by cash, due to the interest rate on the dealer financing offered. CORP0227-07/01 Report OES 36-05 Subject: Supply and Delivery of Two (2) One-Ton Dump Trucks Q-45-2005 September 29, 2005 Page 3 Attachments: 1. Supply & Services Memorandum Prepared By: Gr t Smith / S~.~pervisor, Fleet Operations Vera Felgemacher. Manager, Supply & Services R,j~Chard W. H, Cl'born, P. Eng. ,,Division Head ~,' Municipal Property & Engineering Approved / Endorsed By: .--/-~.,-.~. Everett. Buntsma Director, Operations & Emergency Services Gillis A. Paterson Director, Corporate Services & Treasurer GS:ko Attachments Copy: Chief Administrative Officer Recommended for_..the~consideration of Pickering Ci~o~ncil "~ "/"' , '"' Th~r~-~s J. Cl~f/~,dminis~(V.? Office(' CORP0227-07/01 CORPORATE SERVICES DEPARTMENT MEMORANDUM September 8, 2005 To: Richard Holborn, Division Head, Municipal Property & Engineering From: Bob Kuzma Senior Purchasing Analyst Subject: Quotation No. Q-45-2005, Supply & Delivery of Two (2) One -Ton Dump Trucks Closing: September 7, 2005 2005 Capital Budqet 2718-6157 - 05-2718-002-01 - $45,000.00 2718-6157- 05-2718-002-02 - $65,000.00 Bid Analysis Quotations have been received for the above project. Eight (8) companies were invited to participate of which three (3) responded. Quotations shall be irrevocable for 60 days after the official closing date and time. Copies of the quotations are attached for your review along with the summary of costs. 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. The acceptance of these deviations relies solely within the discretion of the User Department/Division. Donway Ford Sales and Royal Woods Ford Lincoln Sales Ltd. have quoted on 2006 model year vehicles. These vehicles must be ordered from the manufacture and standard delivery of this type of vehicle is approximately eight weeks from time of order. Michael Boyer Pontiac Buick has quoted on an in-stock 2005 model-year vehicle and delivery of these units would be approximately one week from the time of order. Please note that this status could change at any time and these vehicles may not be available when the City is in a position to place an order. The color of the cab meets our specification but the body color does not meet quotation specification. The vehicle bodies would require re-painting from the manufacturer at an additional cost to the City of $800.00 each vehicle. The quotation submitted by Donway Ford Sales in the total amount of $48,720.95 per vehicle - cash purchase option and $56,912.64 per vehicle - dealer-financing option, meets all conditions of the quotation and is the Iow quotation. It is the recommendation of Supply & Services to accept the bid from Donway Ford Sales, subject to your evaluation of the vehicles conformance to specification. Please advise if you concur with the recommendation to accept the Iow bid or any reason the Iow bid from Donway Ford Sales is not acceptable. Richard Holborn September 8, 2005 Page 2 Financial Analysis SUMMARY - Cash Purchase - Per Vehicle Donway Ford Royal Woods Michael Boyer Ford Lincoln Sales Ltd. Pontiac Buick Sales Ltd. Make/Model Ford - F350 Ford - F350 GMC Sierra Year 2006 2006 2005 Amount $42,353.00 $42,581.00 $46,381.00 G. S .T. 2,964.71 2,980.67 3,246.67 P.S.T. 3,388.24 3,406.48 3,710.48 License Fee 15.00 TBA 10.00 Total $48,720.95 48,968.15 $53,348.15 SUMMARY - Dealer-Financing - Per Vehicle 48-Month Term Donway Ford Royal Woods Ford Lincoln Michael Boyer Sales Ltd. Pontiac Buick Sales Ltd. Make/Model Ford - F350 Ford - F350 GMC Sierra Year 2006 2006 2005 Amount $42,353.00 No Quote $47,881.00' G.S.T. 2,964.71 3,351.67 P.S.T. 3,388.24 3,830.48 License Fee 15.00 10.00 Total $48,720.95 $55,073.15 Annual Interest Rate 7.8% 3.28% Monthly Payment 1,185.68 1,220.22 Total Finance Cost 8,191.69 4,997.41 Total Vehicle Cost $56,912.64 $58,570.56 * The purchase price has been increased by an amount of $1,500.00 over the cash purchase price, which is reflected in the total finance cost. The Treasurer has reviewed the purchase options and has determined it to be more cost effective to proceed with a cash-purchase option, financed through an internal loan. In accordance with Purchasing Policy Item 04.05 revised, an award exceeding $81,000 is subject to Council approval. Include in your report to Council: 1. if reference information is acceptable the appropriate account number(s) to which this work is to be charged and the budget amount(s) assigned thereto 2. 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