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Home My WebLink AboutOES 22-08 REPORT TO EXECUTIVE COMMITTEE Report Number: OES 22-08 Date: July 7,2008 q From: Everett Buntsma Director, Operations & Emergency Services Subject: Supply & Delivery of 4-Ton Dump Truck Q-32-2008 File: A-1440 Recommendation: 1. That Report OES 22-08 of the Director, Operations & Emergency Services regarding the supply and delivery of a 4-Ton Dump Truck be received; and 2. That Quotation No. Q-32-2008, as submitted by Scarborough Truck Center 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 $158,809.00 (PST, GST and license extra) be accepted; and 3. The total gross purchase cost of $179,454.17 and a net purchase cost of $171,513.72 as outlined in Report OES 22-08 of the Director, Operations & Emergency Services, be approved; and 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 Regional Municipality of Durham in the amount of $171,000.00 for a period not exceeding five (5) years, at a rate to be determined, be approved and the balance of approximately $513.72 plus financing costs be financed from current funds; and (b) that financing and repayment charges in the amount of approximately $39,500 be included in the annual current budget for the City of Pickering commencing in 2009 and continuing thereafter until the loan is repaid; and (c) that the Director, Corporate Services and 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 2008 as established by the Province for municipalities in, Ontario; and Report OES 22-08 July 7, 2008 Subject: Supply & Delivery of 4-Ton Dump Truck Page 2 , , ~ 'i II I / '.) (d) that the Treasurer be authorized to take any actions necessary in order to effect the foregoing; and (e) staff at the City of Pickering be given the authority to give effect thereto Executive Summary: The City of Pickering currently utilizes a fleet comprised of nine (9) 4-ton dump trucks and three (3) 5-ton dump trucks to perform a wide range of road maintenance activities including winter control. A replacement for the oldest 4-ton truck was approved in the 2008 Capital Budget. Three vendors were invited to bid, of which all responded. Upon review, the vehicle that meets the City's requirements and specifications is being recommended. The vehicle proposed by the two low bidders do not, in staff's opinion meet the overriding requirement for engine torque. This was also the situation in 2006 when the City purchased its last new 4-ton truck. Financial Implications: 1. Approved Source of Funds 2008 Roads Capital Budqet Item Proiect Code Source of Funds Debt - 5 years Available Required 4-Ton Dump Truck With Plow & Wing 5320.0801.6158 $190,000.00 $171,513.72 Estimated Project Costing Summary 4-Ton Dump Truck $158,809.00 Q-32-2008 Subtotal GST PST Total Gross Purchase Cost 158,809.00 7,940.45 12,704.72 179,454.17 I I GST Rebate Total Net Purchase Cost $171,513.72 The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditure contained in this report and concurs. CORP0227-07/01 revised Report OES 22-08 July 7, 2008 Subject: Supply & Delivery of 4-Ton Dump Truck Page 3 J 1 . i Sustainability Implications: The engine powering this truck meets the Environmental Protection Agency's Tier II emission standard. This will significantly reduce the amount of harmful emissions created by the operation of the vehicle as well as provide increased fuel economy. This purchase conforms to the environmental and economic lens of sustainability. Background: The purchase of a 4-Ton Dump Truck with Plow and Wing was identified and approved by Council in the 2008 Capital Budget. Utilizing existing specifications from past purchases, Supply & Services invited (3) three vendors to participate in the bidding process, of which all (3) three have responded. When the City called for Quotations for the purchase of a 4-Ton tuck in 2006 (see Report OES 25-06 attached), the low bidder, Freightliner Mid Ontario did not provide the required torque specified in the quotation document. At that time Council supported the decision not to accept their bid. The vehicle purchased did meet the required torque specification and performed well during the extremely heavy 2007-08 winter control season. After a complete review of all bids submitted it has been determined that the bid submitted by Harper Freightliner does not meet the required torque specification. Although the bid submitted by Donway Ford Sales indicated that they were able to meet the requirement, staff have been informed by the bidder that the manufacturer will not supply the engine quoted in this class of truck, therefore they also cannot meet the specification. Based upon these facts as well as a careful examination of all quotations received by Supply & Services, the Municipal Property and Engineering Division recommends the acceptance of the bid submitted by Scarborough Truck Inc, in the amount of $158,809.00 (PST, GST and License extra) and that the total net purchase cost of $171,513.72 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Memo from Supply & SeNices 2. Report OES 25-06 3. By-law to Confirm the Authorization of the Issuance of Debentures in the amount of $171 ,000 for the Supply & Delivery of 4-Ton Dump Truck CORP0227-07/01 revised Report OES 22-08 Subject: Supply & Delivery of 4-Ton Dump Truck July 7, 2008 Page 4 1 ~)? Prepared By: I~~ /'~L Supervisor, Fleet Operations Vera Felgemac er C.PP., CPPO, CPPB, C.P.M., CMM III Manager, Supply & Services GS:cr Attachments: Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council APproved~:_~dorse~ty: /'/ if ~./' ... . .....,(/ (-,/// //\ . ...../-, / / tsma perations & Emergency ~.. .s:::.........-.... ..~ Gillis Paterson Director Corporate Services & Treasurer CORP0227-07/01 revised 'f Gi~ I c ,,:~ CiiLJ c~ , " .-} '~'. '. f. t /_... To: Richard Holborn, Division Head, Municipal Property & Engineering MEMO RECElVElJ May 26, 2008 MAY 2 6 2008 CITY OF PICKERING MUNICIPAL PROPERTY & ENGINEERING From: Bob Kuzma Senior Purchasing Analyst Copy: Subject: Q-32-2008 Supply & Delivery of 4 Ton Dump Truck Quotations have been received for the above project. Three (3) 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. Specifications item #4 (b) 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. . Due to the fact that delivery date of these vehicles is not certain, it is not possible to state an exact cost for licensing, therefore prices will be stated as license fee extra. The quotation submitted by Harper Freightliner in the total amount of $172,588.29 (license fee extra) is the low quotation, subject to further evaluation of the vehicles conformance to specification. Please advise with your recommendation any reason the low bid from Harper Freightliner is not acceptable. SUMMARY After Vendor Amount G.S.T. P.S.T. Lie. Total Calculation Fee Check Harper $152,733.00 $ 7,636.65 $12,218.64 Extra $172,588.29 $172,588.29 Freightliner Donway Ford $155,357.00 $ 7,767.85 $12,428.56 Extra $175,553.41 $175,553.41 Sales Scarborough $158,809.00 ~7,940.45 ~12,704.72 Extra $179,454.17 $179,454.17 Truck Center This award is subject to Council approval. '1 'i 4. I ,/ . Include in your report to Council: I "-c b 1. the appropriate account number(s) to which this work is to be charged and the budget amount(s) assigned thereto 2. Treasurer's confirmation of funding 3. related departmental approvals 4. any reason(s) why the low bid of Harper Freightliner is not acceptable, and 5. 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, contact me at extension 2131 . May 26,2008 Q-32-2008 Supply & Delivery of 4 Ton Dump Truck Page 2 .- ~ ~"',... ' i ::.c ,) REPORT TO EXECUTIVE COMMITTEE u72 ,.t ;-J I ! ,/ ~) Report Number: OES 25-06 Date: June 12, 2006 From: Everett Buntsma Director, Operations & Emergency Services Subject: Supply and Delivery of 4-Ton Truck - Q-20-2006 - File: A-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 1,7 'i - .. Report OES 25-06 ~..', ~ -c ') )-f) REPORT#tL:> . Date: June 12, 2006 - Subject: Supply & Delivery of 4-Ton Truck ". ,") h Q-20-2006 I ' .~- '-~ 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 gf 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 Tolal 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 Report DES 25-06 c ~<. c ;) ri~-':"'Date: June 12, 2006 074 ,,-1 - Subject: Supply & Delivery of 4-Ton Truck Q-20-2006 '. ') '7 Page 3 'i :/ I 3. Project Cost under (over) Approved Funds $4025.08 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. u.,~ Report OES 25-06 L-/ ~J . ",: L':> -Date: June 12, 2006 i--) - Subject: Supply & Delivery of 4-Ton Truck 1 ) R 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: .' ~~?C~h Grant Smith Superv'sor, Fleet Operations - Everett untsma Director Operations & Emergency Services ~~-"-~ '-Gruis A. Paterson Director, Corporate Services & Treasurer Vera A. Felgemacher Manager, Supply & Services RH:GS Attachments Copy: Chief Administrative Officer .- consideration of - "?' " " ,l, THE CORPORATION OF THE CITY OF PICKERING i () 9 BY-LAW NO. Being a by-law to confirm the authorization of the issuance of debentures in the amount of $171,000 for the supply and delivery of a 4- Ton Dump Truck in the City of Pickering WHEREAS Section 11 of the Municipal Act, 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, WHEREAS Subsection 401 (1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, WHEREAS Subsection 401 (3) of the Municipal Act, 2001, as amended, provides that a lower-tier municipality in a regional municipality does not have the power to issue debentures; and, WHEREAS The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, WHEREAS the Council of the City approved Report OES 22-08 at its meeting of July 14, 2008 pursuant to Resolution /08 and awarded Quotation Q-32-2008 for the supply and delivery of a 4-Ton Dump Truck at that meeting; and, WHEREAS the Council of the City is proceeding with the supply and delivery of a 4-Ton Dump Truck in the City of Pickering; and, WHEREAS before the Council of the City authorized the supply and delivery of a 4-Ton Dump Truck, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated Limit and, therefore, Ontario Municipal Board approval was not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder. CORP0223-07/01 -) :1... BY-LAW NO 130 .J., Page 2 NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. That the estimated costs of the supply and delivery of a 4-Ton Dump Truck in the amount of $171,513.72 be financed as follows: a) That the sum of $171,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five (5) years; b) That the balance of $513.72 be funded from the 2008 Current Budget; 2. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2009 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 14th day of July, 2008. David Ryan, Mayor Debi A. Wilcox, City Clerk