HomeMy WebLinkAboutOES 06-10
Cirf Report to Council
' Report Number: OES 06-10
PI KERI Date: March 29, 2010
118
From: Everett Buntsma
Director, Operations & Emergency Services
Subject: Supply & Delivery of (2) Two Fire. Pumper Vehicles
- File: A-1440
Recommendation:
1. That Report OES 06-10 of the Director, Operations & Emergency Services
regarding the supply and delivery of (2) two Fire Pumper Vehicles be received;
2. That the proposal dated 01/30/10 and price negotiated with Smeal Fire
Apparatus Co. by the Manager; Supply & Services for the supply and delivery of
(1) one Fire Pumper Vehicle at a cost of $541,900 for the gross amount of
$612,347.00 (HST included) and a net cost of $551,437 be accepted;
3. That the proposal dated 01/30/10 and price negotiated with Smeal Fire
Apparatus Co. by the Manager, Supply & Services for the supply and delivery of
a second Fire Pumper Vehicle at a cost of $541,900 less a credit of ($9,300) for
the gross amount of $601,838.00 (HST included) and a net cost of $541,974 be
accepted;
4. That the total gross project cost of $1,214,185.00 as negotiated by the Manager,
Supply & Services and the total net purchase cost of $1,093,411.20 be approved;
5. That Council authorize the Director, Corporate Services & Treasurer to finance
the supply and delivery of two (2) Fire Pumper Vehicles as follows:
a) that the sum of $1,090,000 be financed by the issue of debentures by the
Regional Municipality of Durham over a period not to exceed (10) years at
a rate to be determined
b) that the balance of $3,411.20 be funded from property taxes or other
revenues available to the Treasurer
c) that the annual repayment charges from the debenture in the amount of
$141,160 be included in the annual Current Budget for the City of
Pickering commencing in 2010, continuing thereafter until the debenture is
repaid, and any financing cost be paid out of the Current Budget
d) that the draft bylaw attached to this report be enacted; and,
i
Report OES 06-10 March 29, 2010
Subject: (2) Two Pumper Rescue Vehicles Page 2
119
e) that the appropriate officials of the City of Pickering be given authority to
give effect thereto
6. 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 2010 as approved by the Province for municipalities in
Ontario and therefore, the Ontario Municipal Board approval is not required.
7. The appropriate officials of the City of Pickering be given authority to give
effect thereto.
Executive Summary: We are seeking approval for the purchase of (2) two Fire
Pumper Vehicles also referred to as pumper rescue vehicles. One "pumper rescue
vehicle" with associated tools and equipment was identified and approved by Council in
the 2009 capital budget. This vehicle will replace the City's Unit # 515, a 1994
Freightliner pumper rescue vehicle.
A second "pumper" vehicle has been identified as needing replacement in the 2010
capital budget. This vehicle will replace the City's Unit #517, a 1997 Freightliner
pumper rescue vehicle. At this time we wish to proceed with the purchase of these two
new vehicles. A separate tender will be undertaken to solicit pricing for the associated
firefighting rescue and extrication tools. This will be reported to Council accordingly and
the financing costs related to the associated firefighting rescue and extrication tools will L
be addressed at the same time.
CORP0227-07/01 revised
Report OES 06-10 March 29, 2010
Subject: (2) Two Pumper Rescue Vehicles Page 3
120
Financial Implications:
Approved Source of Funds
2009 Capital Budget - Fire Services
Item Project Code Source of Available Required
Funds
Pumper Rescue 5320.0913.6158 Debt (10-Year) $850,000 $550,000
Vehicle
Approved Source of Funds
2010 Capital Budget Fire Services
Item Project Code Source of Available Required
Funds
Pumper Vehicle 5340.1001.6158 Debt (10-Year) $750,000 $540,000
Total Debt $1,090,000
Internal Loan $457,920
Property Taxes $3,411
Grand Total $1,551,331
Summary
2009 Approved Pumper
Rescue Vehicle $541,900
Applicable HST (1.76%) 9,537
Total $551,437
2010 Approved Pumper
Vehicle $532,600
Applicable HST (1.76%) 9,374
Total $541,974
Associated Tools and
Equipment $450,000
Applicable HST (1.76%) 7,920
Total $457,920
Gross Total Cost $1,551,331
Project over (under) Approved Funds ($48,669)
CORP0227-07/01 revised
Report OES 06-10 March 29, 2010
Subject: O 2 Two Pumper Rescue Vehicles Page 4
12
Effective July 1, 2010, the Harmonized Sales Tax (HST) will come into effect. With the
new HST, municipalities will be charged 13% on most goods and services and subject
to a rebate of 11.24%, resulting in a net cost of 1.76% to the City. As these two fire
pumper vehicles will be delivered after July 1, 2010 we are able to factor in the impact
of the new HST on these purchases and included on the above table.
The Director, Corporate Services & Treasurer has reviewed the budgetary implications
and the financing of the expenditure contained in this report and concurs.
Sustainability Implications: These vehicles will be supplied with the latest in
passenger safety technology including such features as roll stability control,
supplemental inflatable restraints and data logging. These options will provide increased
protection to Fire Service personnel in emergency response situations.
Background: The purchase of a pumper rescue vehicle was identified and approved
by Council in the 2009 Capital budget. Specifications to the vehicle were compiled by
both the Fire Services Division and Fleet Services. Intensive research was conducted
by both parties which included visiting trade shows, viewing apparatus from other fire
departments and seeking input from Pickering Fire Services personnel. A
comprehensive specification for a pumper rescue vehicle was provided to Supply &
Services and a tender was prepared - Tender T-23-2009 - which closed October 28,
2009. The only bid received was non-compliant and rejected. The Manager, Supply &
Services determined a prudent course of action was for staff to review specifications,
revise the tendering document and re-issue it. As this revised tender (T-25-2009) would
not close until 2010 and as a second fire pumper vehicle had been identified in the 2010
capital budget, the tender was prepared to provide pricing for one vehicle with a pricing
option to purchase a second identical vehicle.
Tender T-25-2009 was released and two bidders responded of which one - ResQtech
Systems Inc. - was unable to bid. Initial review of the other bid - submitted by Smeal
Fire Apparatus Co. rendered the bid an automatic rejection. After discussions with the
Director, Corporate Services and Treasurer as well as the City Solicitor and in
accordance with Information to Bidders Item 19(a), the Tender was cancelled. In
accordance with Purchasing Bylaw No. PUR 010-001, Item 05.04, which authorizes the
Manager, Supply & Services to enter into negotiations when all bids fail to comply with
the specifications or conditions and it is impractical to recall, negotiations were entered
into with Smeal Fire Apparatus Co., for the supply and delivery of one, possibly two,
Fire Pumper Vehicles. These negotiations have resulted in a purchase agreement and a.
net savings of $9,300.00 on the purchase of two vehicles, which was applied to the
second vehicle - summarized in the attached memorandum from Supply & Services.
The diagram and details of booster tank construction and installation, body construction
and support system and how it will be attached to the chassis; complete diagram of the
proposed unit, letter and information from ULC (Underwriters Laboratory of Canada)
CORP0227-07/01 revised
Report OES 06-10 March 29, 2010
Subject: (2) Two Pumper Rescue Vehicles Page 5
122
which explains the testing services that UL/ULC provides to verify NFPA (National Fire
Protection Association) compliance; NFPA membership certificate in good standing for
the Vice President of Smeal Fire Apparatus Co. have been reviewed by the Supervisor,
Fleet Operations and Deputy Chief, Fire Services and are deemed acceptable.
These vehicles are available with an option for a 2009 or 2010 model year engine. The
2009 model year engine is recommended as significant re-engineering of the vehicle is
required to accommodate a. urea injection systems required by the 2010 model engine,
adding approximately $8,000.00 to the purchase price.
It is, therefore, the recommendation of Pickering Fire Services that the purchase of two
Fire Pumper Vehicles equipped with 2009 model year engines as negotiated by the
Manager, Supply & Services with Smeal Fire Apparatus Co. in the amount of
$1,214,185 (HST included) be accepted and the net purchase cost of $1,093,41.20 be
approved.
This report has been prepared in conjunction with the Manager, Supply & Services and
the Senior Financial Analyst, who concur with the foregoing.
Attachments:
1. Supply & Services Memorandum
2. By-law to confirm the authorization of the issuance of debentures in the amount
of $1,090,000
Prepared By: - Approved/J,En W B
Grant' ith Everet nt
Supervisor, Fleet Operations Director, Operations & Emergency Services
Bill Douglas Gillis Paterson
Fire Chief Director, Corporate Services & Treasurer
Vera A. Felgemach r Caryn Kong
C.P.P., CPPO, CPPB, C.P.M., CMM III Senior Financial Analyst-Capital
& Debt Management
GS:cr
Copy: Chief Administrative Officer
CORP0227-07/01 revised
i
Report OES 06-10 March 29, 2010
Subject: (2) Two. Pumper Rescue Vehicles Page 6
123
Recommended for the consideration
of Pickering City OTJ le
J. Quinn, [ MR, C IM III
T h o
Xas
Chef Administrati Officer
CORP0227-07/01 revised
ATTACHMENT# ~ TO REPOP.T# DES D(-/ O
I'ICI«RI j MEMO
124
To: Everett Buntsma February 10, 2010
Director, Operations & Emergency Services
From Vera A. Felgemacher
Manager, Supply & Services
Copy: Fire Chief
Supervisor, Fleet Operations
Subject: Tender No. T-25-2009
Tender for Supply and Delivery of One (1) or Two (2) Fire Pumper Vehicle
Closing: Wednesday, January 20, 2010 before 2:00pm (local time)
i
This tender call is the 2nd effort to solicit competitive bids for a fire pumper vehicle - Tender No.
T-2372009 for One Fire Pumper Vehicle was the previous tender call and the bid received was
non-compliant and rejected. Tender specifications. and details were reviewed again by the
Deputy Chief and Fleet Supervisor resulting in a revised tendering document No. T-25-2009 for
one (1), possibly two (2), Fire Pumper Vehicles.
An advertisement was placed on the City's website inviting companies download the above
mentioned tendering document.
A copy of the Record of Tenders Opened and Checked used at the public tender opening is
attached.
Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit
prices and extensions; unit prices shall govern and extensions will be corrected accordingly,
which has been done.
SUMMARY (including 13% HST)
Bidder Section 2 Total Section 2 Total Section 3 Total Section 4 Total
Qty 1 Qty 2 Qty 1 Qty 2
2009 Engine 2009 Engine 2010 Engine 2010 Engine
Smeal Fire
Apparatus $612,347 $1,224,694 $619,579 $11239,158
Co.
ResQtech Unable to bid
ATTACHMENT L _ TO REPORT; X6'/0
125 poi
initial review of the bid submitted by Smeal Fire Apparatus Co. rendered the bid an
automatic rejection. Reference: Purchasing Bylaw No. 5900-01, Procedure No. PUR-010-
001, 10.04 Item 7-(5). Reference: Purchasing By-law No. 5900-01, Procedure No. FUR
010-0C1, 10.04, Item 7-(7). Reference: Information to Bidders Item Nos. 4, 6, 18, 19, 20;
Specifications Item 33.
Upon careful review and discussion with the Director, Corporate Services and the City
Solicitor, in accordance with Information to Bidders, Item 19 (a). the tender was cancelled
to proceed with "Negotiation" with Smeal Manufacturing, as provided for, in the
Purchasing Bylaw.
Purchasing Bylaw No. 5900-01, Procedure No. PUR-010-001, Item 05 provides:
- the Manager, is authorized to enter into negotiations without formal competitive bids,
under the following circumstance(s) - Item 05.04 - When all bids fail to comply with the
specifications or conditions and it is impractical to recall.
City staff (G. Smith, R. Kuzma, S. Almond, V. Felgemacher) met on Monday, February 1,
2010 to discuss details for negotiation -then meeting with the representative from Smeal
Manufacturing on Tuesday, February 2, 2010. A list of negotiated items is available upon
request. Grant Smith is to confirm if documentation requested in Item 15 (1 through 5) is
acceptable.
If a quantity of 2 are ordered at the same time, there is a savings on the 2nd unit of $9,300
before taxes. The City's preference -is the fire pumper vehicle with the 2009 Cummins
engine and pricing is summarized below:
NEGOTIATION SUMMARY
SMEAL CUSTOM PUMPER FIRE FIGHTING APPARATUS 2010 GLADIATOR CHASSIS
TAXES EXTRA
Quantity 1 with Quantity 2 with
2009 Cummins Engine 2009 Cummins Engine
Vehicle 1 - $541,900
$541,900 Vehicle 2 - $532,600
Total . $1,074,500
The Harmonized Sales Tax at the rate of 13% comes-into effect as of July 1, 2010 and will
be extra to prices quoted for deliveries after July 1, 2010.
Acceptance of the negotiated offer from Smeal Fire Apparatus Co,. is subject to budget and
Cou`Ocil Approval.
Vera A:'Felgemacher
/vaf
.attachments
February 10, 2010
Tender No. T-25-2009 Page 2
Tender for Supply and Delivery of One (1) or
Two (2) Fire Pumper Vehicles
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ATTACHMENT # _~Q_ sOREPORTttZSQ~_~Q
of
127 The Corporation of The City of Pickering
By-law No.
Being a by-law to confirm the authorization of
the issuance of debentures in the amount of
$1,090,000 for the supply and delivery of
(2) Two Fire Pumper Vehicles 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 is proceeding with the supply and delivery of (2) Two
Fire Pumper Vehicles in the City of Pickering; and,
Whereas before the Council of the City authorized the supply and delivery of (2) Two
Fire Pumper Vehicles, 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 there under.
And Whereas after determining that Ontario Municipal Board approval is not required,
the Council of the City approved Report OES 06-10 on the date hereof and awarded
Tender T-25-2009 for the supply and delivery of (2) Two Fire Pumper Vehicles.
CORP0223-07/01
ATTACHMENT# 9 _ TOREPORT# D&_~SO6-~0
BY-LAW NO =f Page 2
28
Now therefore the council of the Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the supply and delivery of (2) Two Fire Pumper Vehicles.
2. That the estimated costs of the supply and delivery of (2) Two Fire Pumper Vehicles
in the amount of $1,093,411.20 be financed as follows:
a) That the sum of $1,090,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed (10) ten years;
b) That the balance of $3,411.20 be funded from the Property Tax;
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 2010 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 29th day of March
2010.
David Ryan, Mayor
Debbie Shields, City Clerk