HomeMy WebLinkAboutOES 42-08
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: OES 42-08
Date: December 8, 2008
o 1
From:
Everett Buntsma
Director, Operations & Emergency Services
Subject:
Supply & Delivery of Heavy Rescue Vehicle
0-67 -2008
File: A-1440
Recommendation:
1. That Report OES 42-08 of the Director, Operations & Emergency Services
regarding the supply and delivery of One (1) Heavy Rescue Vehicle be received;
2. That Quotation No. 0-67-2008, as submitted by Safetek Emergency Vehicles for
the supply and delivery of One (1) Heavy Rescue Vehicle, in the gross amount of
$621,705 (PST exempt, GST included) and a net cost of $592,100 be accepted;
3. That the total gross project cost of $1,260,000 (GST included) including
Ouotation No. 0-67-2008 and associated costs and the total net purchase cost of
$1,200,000 be approved;
4. That Council authorize the Director, Corporate Services & Treasurer to finance
the supply and delivery of the Heavy Rescue Vehicle in the amount of $592,100
as follows:
a) that the sum of $440,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10)
years, at a rate to be determined;
b) that the sum of $150,000 be funded by a contribution from the Ontario
Power Generation (OPG);
c) that the sum of$2,1 00 be funded from the 2008 Current Budget;
d) to undertake the financing of this project or portions thereof that cannot be
accommodated through the foregoing through internal loans, the Ontario
Strategic Infrastructure Financing Authority (OSIFA) - Loan Program or a
OES 42-08 Heavy Rescue Truck
December 8, 2008
02
Page 2
financial institution offering long term financing under similar terms and
conditions;
e) to make any changes, adjustments, and reVISions to amounts, terms,
conditions or any other actions necessary in order to effect the above
directions of Council;
f) 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 2008 as established by the Province for municipalities in
Ontario;
g) the Treasurer be authorized to take any actions necessary to effect the
foregoing;
5. That the Council authorize the Director, Corporate Services & Treasurer to
finance the associated costs including Extrication Tools and Fire Rescue
Equipment, High Angle Equipment, and Ice/Water Rescue Equipment at a
estimated cost not exceeding $607,900 as follows:
a) that the sum not exceeding $605,000 to be financed by an internal loan
over a period not to exceed ten (10) years, at a rate to be determined;
b) that the sum of $2,900 to be funded from the 2008 Current Budget;
c) that depending on the outcome of the quotation call on the Extrication
Tools and Fire Rescue Equipment, the final financing cost will be subject
to revision;
6. That the annual repayment charges for both the external debenture and internal
loan in the amount of approximately $135,700 be included in the annual Current
Budget for the City of Pickering commencing in 2009, continuing thereafter until
the debenture and loan are repaid, and any financing cost to be paid out of the
Current Budget;
7. That the Director, Corporate Services & Treasurer be authorized to apply any
excess proceeds raised to other capital projects for which long-term financing is
required, as is permitted under the Municipal Act, 2001;
8. That the draft by-law attached to this report be enacted; and
9. That the appropriate officials of the City of Pickering be given the authority to give
effect thereto.
OES 42-08 Heavy Rescue Truck
December 8, 2008
Page 3
03
Executive Summary: The purchase of a Heavy Rescue Vehicle with the
associated tools and equipment was identified and approved by Council in the 2008
Capital Budget. This vehicle will replace the City's Unit #514, a 1991 International
Rescue Vehicle.
At this time we wish to proceed with the purchase of the Heavy Rescue Vehicle under
Quotation No. Q-67-2008. A separate quotation call will be undertaken to solicit pricing
for the associated extrication tools and fire rescue equipment required. Depending on
the value of the quotation, this will be reported to Council accordingly. The total
estimated cost is being presented in this report in order to obtain Council approval to
formalize the financing required for this project.
OES 42-08 Heavy Rescue Truck
December 8, 2008
04
Page 4
Q-67-2008 Heavy Rescue Vehicle $592,100
Associated Costs:
Extrication Tools & Fire Rescue 607,900
Equipment, High Angle and
Ice/Water Rescue Equipment
Total Pu rchase Cost 1,200,000
GST 60,000
Total Gross Purchase Cost 1,200,000
GST Rebate (60,000)
Total Net Purchase Cost $1,200,000
Project cost under (over) Approved Funds 0
As the purchase of the Heavy Rescue Vehicle and the associated extrication tools and
equipment was not solicited under the same quotation call, the Treasurer feels that the
component related to the extrication tools and equipment may not be deemed as part of
a fully equipped Heavy Rescue Vehicle and resulting difficulty in obtaining external
borrowing. Also, the associated extrication tools and equipment with various useful lives
will affect the term set for the external debenture. Instead, internal bmrowing is being
undertaken for the component related to the associated extrication tools and equipment.
For external borrowing purposes, the financing of the Heavy Rescue Vehicle is to be
isolated from the associated extrication tools and equipment. The attached draft
debenture by-law to be enacted will incorporate the financing cost related to the supply
and delivery of the Heavy Rescue Vehicle only.
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditure contained in this report and concurs.
Sustainability Implications: This vehicle will be equipped with the latest technology
in passenger safety which will include such features as roll stability control and
supplemental inflatable restraints for all occupants. These options will provide
increased protection to Fire Services personnel in emergency response situations. Also,
the engine powering the vehicle meets the Environmental Protection Agency's latest
emission standards, significantly reducing the amount of harmful remissions created by
the operations of the vehicle.
OES 42-08 Heavy Rescue Truck
December 8, 2008
Page 5
us
Background: The purchase of a Heavy Rescue Vehicle was identified and
approved by Council in the 2008 Capital Budget. Specifications for the vehicle were
compiled by the Fire Services Division after attending a Fire Safety conference,
. tradeshows and completing an extensive review of the latest personnel safety and
rescue technology, and were provided to Supply & Services to assist in developing a
request for quotation document. Supply & Services invited five (5) vendors to
participate in the bidding process, of which one (1) has responded. Upon careful
examination of the only submission it is the recommendation of Pickering Fire Services
that Quotation No. Q-67-2008 submitted by Safetek Emergency Vehicles in the amount
of $621,705 (GST included) be accepted and the net purchase cost of $592,100 be
approved. An awarQ exceeding $81,000 in a quotation process is subject to Council
approval.
It was deemed beneficial for the City to have separate quotation calls for the Heavy
Rescue Vehicle and the associated tools and equipment in order to generate
competition among suppliers specializing in such equipment. Suppliers specializing in
such equipment can provide a better valuation of these products along with warranty
and service.
Quotations have been previously received for the supply and delivery of the high angle
equipment and supply and delivery of ice/water rescue equipment. These two
quotations did not exceed $81,000 and were not subject to Council approval. A
separate quotatjon call will be undertaken to solicit pricing for the associated extrication
tools and fire rescue equipment. At this time we are providing financing for the
maximum amount as approved in the 2008 Capital Budget for the associated tools and
equipment as the quotation has not been called and we are uncertain on the exact
amount required. Also, the various tools and equipment required have differing useful
lives, and thus affect the term to set for the internal loan.
The final amount required along with the term of the internal loan will be finalized upon
receiving the quotation call for the extrication tools and equipment. This will be reported
to the Council accordingly.
In 2006, OPG contributed $150,000 to the City towards the purchase of a new fire
pumper. In 2008, the City requested that the same funds be diverted towards the
purchase of a heavy fire rescue vehicle as the purchase of a new fire pumper was not
approved by Council. In a letter dated May 5, 2008, OPG has officially provided
permission to the City to reallocate the funds towards the purchase of a heavy fire
rescue vehicle.
This report has been prepared in conjunction with the Manager, Supply & Services and
Senior Financial Analyst who concur with the foregoing.
OES 42-08 Heavy Rescue Truck
December 8, 2008
06
Page 6
Attachments:
1. Supply & Services Summary Memorandum
2. By-law to confirm the authorization of the Issuance of debentures in the amount of
$440,000 for the supply and delivery of Heavy Rescue Vehicle
Approved/Endorsed By:
\
Ever unt
Director, Operations & Emergency
Services
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Bill Douglas
Fire Chief
\
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Gillis Paterson
Director,
Corporate Services & Treasurer
C"1.'~:?
Vera Felgemacher
C.P.P., CPPO, CPPB, C.P.M., CMM III
Manager, Supply & Services
S2~
Caryn Kong
Senior Financial Analyst
GS:cr
Copy: Chief Administrative Officer
Recommended for the consideration
of Pickering C' u il
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ATTACHMEN"'f#L TO REPORT # ~5 "+.;'J.- o?;'
MEMO
To:
Bill Douglas
Fire Chief
From:
Bob Kuzma
Senior Purchasing Analyst
Supervisor, Fleet Operations
Copy:
Subject: Q-67-2008 - Supply & Delivery of Heavy Rescue Vehicle
Closing: Wednesday, October 15, 2008
Quotations have been received for the above project. Five (5) companies were invited to
participate of which one (1) has responded. Quotations shall be irrevocable for 60 days after the
official closing date and time.
A copy of the quotation is 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 anddetaiis 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. Specifications item #5 states:
Where a manufacturer deviates from the quotation specifications they must indicate "NO" and
then specify the changes. The acceptance of these deviations relies solely within the.discretion of
the City.
The quotation submitted by Safetek EmergencyVehicles in the total amount of $621,705.00 is the
only quotation and is subject to further evaluation of the vehicles conformance to specification.
Please advise with your recommendation any reason the bid from Safetek Emergency Vehicles is
not acceptal;>le.
SUMMARY'
After
Vendor Amount G.S.T. Total Calculation
Check
Safetek
Emergency , $592,100.00 $ 29,605.00 $621,705.00 $621,705.00
Vehicles
Bidders will be advised of the outcome. Please do not disclose pricing toenquiring 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 .
Ibk
Att:
October 21,2008
Q-67-2008 Heavy Rescue Vehicle
Page 2
ATTACHMENT#L TO REPORT#~- 4c2-(l)P
THE CORPORATION OF THE CITY OF PICKERING
09
BY-LAW NO.
Being a by-law to authorize the Supply &
Delivery of Heavy Rescue Vehicle in the City
of Pickering and the issuance of debentures
therefor in the amount of $440,000.
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 wishes to proceed in respect of the Supply &
Delivery of Heavy Rescue Vehicle; and,
WHEREAS before authorizing the project to proceed in respect of the Supply &
Delivery of Heavy Rescue Vehicle on the date hereof 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 is not required as per Section 401 of the Municipal
Act, 2001, as amended, and the regulations made thereunder;
AND WHEREAS after determining that Ontario Municipal Board approval is not
required, the Council of the City approved Report OES 42-08 on the date hereof and
awarded Quotation Q-67-2008 for the Supply & Delivery of the Heavy Rescue Vehicle
project.
NOW THEREFORE, THE COUNCIL OF THE CORPORATION OF THE CITY OF
PICKERING HEREBY ENACTS AS FOLLOWS:
CORP0223-07/01
BY-LAW NO
Page 2
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1. That the City proceed with the project referred to as "Supply & Delivery of Heavy
Rescue Vehicle";
2. That the estimated costs of the project in the amount of $592,100 be financed as
follows:
a) That the sum of $440,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years;
b) That the sum of $150,000 be funded by a contribution from the Ontario Power
Generation (OPG);
c) That the sum of $2,100 be funded from the 2008 Current Budget;
3. 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 15th day of
December, 2008.
David Ryan, Mayor
Debi A. Wilcox, City Clerk