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HomeMy WebLinkAboutOES 25-06 I . ~7 ."~, .' ~. (.., - Report Number: OES 25-06 Date: June 12, 2006 CiÚI 0# REPORT TO EXECUTIVE COMMITTEE From: Everett Buntsma Director, Operations & Emergency Services Subject: Supply and Delivery of 4-Ton Truck - Q-20-2006 - File: Ä-2130 Recommendation: 1. That Report OES 25-06 regarding the supply and delivery of a 4 Ton Dump Truck be received and that: 2. Quotation No. Q-20-2006 submitted by Scarborough Truck Centre Inc. for the supply and delivery of a 4 Ton Dump Truck with snow plow and wing, and _ electronic salt metering in the amount of $157,624.00(GST, PST and license extra) be accepted; 3. The total gross purchase cost $180,432.36 and a net purchase cost of $170,974.92 be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to finance the purchase through the issuance of debt; and a) That debt financing through the Region of Durham in the amount of $170,000.00 for a period not exceeding five (5) years, at a rate to be determined, be approved and the balance of approximately $975 plus financing costs be financed from current funds; and - b) That financing and repayment charges in the amount of approximately $39,000 be included in the annual Current Budget for the City of Pickering commencing in 2007 and continuing thereafter until the loan is repaid; and c) That the Director, Corporate Services & Treasurer has certified that this loan and the repayment thereof falls within the City's debt and financial obligations approved annual repayment limit for debt and other financial obligations for 2006 as established by the Province for municipalities in Ontario; and d) That the Treasurer be authorized to take any actions necessary in order to effect the foregoing: and 7 ") t, ~) Report OES 25-06 Date: June 12, 2006 .- Subject: Supply & Delivery of 4-Ton Truck Q-20-2006 Page 2 5. Staff at the City of Pickering be given the authority to give effect thereto. Executive Summary: The City of Pickering has a fleet of 4 ton and 5 ton dump trucks that are used year round for road maintenance activities including sanding, salting and snow plowing. A replacement for the oldest 4 ton truck in the fleet was approved in the 2006 Capital budget. Six vendors were invited to submit bids and two bids were received. Upon review, the vehicle that meets the City's requirements is being recommended. The vehicle proposed by the low bidder does not, in staff's opinion, meet the overriding requirement for engine torque. Given new emission requirements that will increase the cost of these trucks in January 2007, orders being placed at this time are significant resulting in extended delivery times and actual uncertainty of availability. Therefore, the sooner Council approval is received and the order is placed, the better chance the City has at receiving acceptance and delivery. Scarborough truck has advised that delivery would be in December 2006. The vehicle from Freightliner would be available in March 2007. - Financial Implications: 1. Approved Source of Funds Total Approved Funds Amount $175,000.00 $175.000.00 2006 Capital Budget Debt (5 years) New Chart of Accounts 5320.0602.6158 2. Estimated Project Costing Summary Sub Total GST (6%) PST License Total Gross Purchase Cost $157,624.00 $157,624.00 $9,457.44 $12,609.92 $741.00 $180,432.36 ($9,457.44) $170,974.92 Q-20 -2006 4 Ton Dump Truck -~ GST Rebate Total Net Purchase Cost 074 Report OES 25-06 Date: June 12, 2006 - Subject: Supply & Delivery of 4-Ton Truck Q-20-2006 Page 3 3. Project Cost under (over) Approved Funds $4025.081 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 4-Ton Dump Truck with snow plow and wing and electronic salt metering was approved by Council in the 2006 Capital Budget. Through market research and analysis of emerging technology in winter control, Fleet Operations compiled specifications for this piece of equipment. Supply & Services invited six (6) vendors to participate in the bidding process of which two (2) have submitted quotations. - The Supervisor, Fleet Operations advises that the low bid submitted by Freightliner Mid Ontario does not provide the required engine torque specified in the document. A torque of 1050 pound-foot at approximately 1500 RPM is required to operate the vehicle efficiently and safely with the added load of the snow plow, wing, hydraulic systems and salt metering device. The bid submitted by Scarborough Truck Centre provides the torque of 1050 pound-foot at 1200 RPM whereas the bid from Freightliner Mid Ontario only provides 950 pound-foot at 1500 RPM. This difference of 100 pound- foot (or 10%) can be significant for vehicle performance, especially when considering the topography and terrain of Pickering. A review of other municipalities in Durham indicate others (Clarington and Whitby) are purchasing trucks with high torque engines manufactured by International or Stirling. The bid from Freightliner Mid Ontario indicates the engine supplied is a wet sleeve engine, however, upon further research it can be stated that the MBE 900 engine is not a true wet sleeve engine. It is a cast iron block with induction hardened cylinder bores. The block cannot be replaced as a wet sleeve can, therefore, overhauls are more complicated and not as cost effective. The City's fleet of 4 ton and 5 ton dump trucks consists of four International trucks, model year 1997-2000, five Freightliner trucks; model year 2001-2003 and three International trucks; model year 2005-2006. The International truck has proven to be reliable and several have been in service beyond the desirable seven-year life cycle. The City's heavy equipment operators that operate the latest model International trucks advise that the in-cab comfort and overall ride of the latest model International trucks - are superior. This is important during winter control events that can typically run for 13 hours when salting and plowing is required. Should the order be accepted, Scarborough Truck Centre advises that delivery would be in December 2006. A call to Freightliner Mid Ontario indicated delivery would be in March 2007. Ut75 Report OES 25-06 Date: June 12, 2006 .- Subject: Supply & Delivery of 4-Ton Truck Q-20-2006 Page 4 Upon careful examination of all quotations received by Supply & Services the Municipal Property & Engineering Division recommends acceptance of the bid from Scarborough Truck Centre Inc. in the amount of $157,624.00 (GST, PST and License extra) and that the total net purchase cost of $170.974.92 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: gz /}/. '- ." \,%?¿z:¿ O?:;Z7 Grant Smith Superv'sor, Fleet Operations - Everett Buntsma Director Operations & Emergency Services Vera A. Felgemacher Manager, Supply & Services .- ... ,.". ~~~~"3'~ "-Giílis A. Paterson Director, Corporate Services & Treasurer RH:GS Attachments Copy: Chief Administrative Officer -. CORPORATE SERVICES DEPARTMENT MEMORANDUM I __I. . .... >~....,.. At'7" ') f., .'y';J:\~ ¡:¡:~~ ...2...,,_. C, 7 F) .- May 15, 2006 RECEIVED To: Richard Holborn, Division Head, Municipal Property & Engineering MAY 1 5 2006 CITY OF PICKERING MUNICIPAL PROPERTY & ENGINEERING From: Bob Kuzma Senior Purchasing Analyst Subject: Quotation No. Q-20-2006, Supply & Delivery Four-Ton Dump Truck Closing: May 12, 2006 Quotations have been received for the above project. Six (6) companies were invited to participate of which two (2) 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 ,;pecifications. Specifications item # 4b states: a mark in the "no" space shall mean a deviation from the specification and must be further detailed in the SPECIFY space. Deviations will be evaluated and acceptance of these deviations is within the discretion of the City of Pickering. The quotation submitted by Freightliner Mid Ontario in the total amount of $171,092.34 is the low quotation, subject to further evaluation of the vehicles conformance to specification. The quote from Scarborough Truck Centre Inc. has been adjusted from 7% G.S.T. to 6% G.S.T., which will be the applicable amount at time of delivery. Also, please note that the bid from Scarborough Truck Centre Inc. includes a statement that their bid is subject to component availability at time of ordering. Orders placed within the next 30 days are least likely to be affected by this situation. If the quotation from Scarborough Truck Centre is approved, the components available or not available at the time of order would have to be evaluated and the decision to proceed would be based on conformance to Specifications - Item # 4. Please advise with your recommendation any reason the low bid from Freightliner Mid Ontario is not acceptable. ,- "..\ ('IENT I r()REPORT#~ ..15'-<1(. 1. 01 .Á May 15, 2006 Page 2 Richard Holborn Q-20-2006 _ u7'7 SUMMARY After Vendor Amount G.S.T. P.S.T. Lie. Total Calculation Fee Check Freightliner $150,081.00 $ 9,004.86 $12,006.48 Incl. $171,092.34 $171,092.34 Mid Ontario Scarborough $157,624.00 $ 11,033.68 $12,609.00 $741.00 $182,008.60 $180,432.36 Truck Centre 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. 2. 3. 4. .- 5. the appropriate account number(s) to which this work is to be charged and the budget amount(s) assigned thereto Treasurer's confirmation of funding related departmental approvals any reason(s) why the low bid of Freightliner Mid Ontario is not acceptable, and related comments specific to the project Bidders will be advised of the outcome. Please do not disclose pricing to enquiring bidders. Subject to Council approval, an approved "on-line" requisition will also be required to proceed. If you require further information or assistance during the evaluation phase of this quotation call, feel free to contact me at extension 2131. Thank you, /bk Attachments h"-'"