HomeMy WebLinkAboutCOD-019-03
"
Cl~ilJglon
REPORT
CORPORATE SERVICES DEPARTMENT
Meeting:
COUNCIL
Date:
June 9, 2003
Resolution #:
Report #: COD-O 19-03
File#:
By-law #:
Subject:
CL2003-8, One (1) 39,000 GVW Cab & Chassis c/w Plow Equipment
Recommendations:
It is respectfully recommended to Council the following:
1. THAT Report COD-019-03 be received;
2. THAT Performance Equipment, Mississauga, Ontario, with a total bid in the amount of
$189,508.33 (including taxes), being the lowest responsible bidder meeting all terms,
conditions and specifications of Tender CL2003-8, be awarded the contract to supply
One (1) 2003 Cab and Chassis, 39,000 GVW c1w Plow Equipment, as required by the
Municipality of Clarington, Operations Department, and
3. THAT the funds be provided from the 2003 Capital Operations Vehicle I Heavy
Equipment Account # 8345-03200-1401; and
4. THAT the additional funds of $29,508.33 be provided from the 2003 Capital Operations
Vehicle I Heavy Equipment Account #8345-03200-1401 with the Public Works Development
Charge Reserve Fund financing $22,184.36 of the additional funds and the $7,323.97 tax
levy portion will be over budget.
- ~"-~
Submitted by:
arie Marano, H.B.Sc., C.M.O.
Director of Corporate Services
X ')
Reviewed by: <--, ~. ----- .eA..Sl-1-
Franklin Wu,
Chief Administrative Officer
!ri.. i<.'0~ ,,-.>/1. rl2"D 1-/"1< <J-17H .
Fred H rv";{RDMR, RRFA,
Director of Operations
MMlLABILMllm
"
REPORT NO.: COO-019-03
PAGE 2
BACKGROUND AND COMMENT
Tender CL2003-8, for one only 39,000 GVW Cab & Chassis clw Plow Equipment was
advertised and issued with bids being received as per Schedule "A" attached.
With respect to the leasing option, it would appear that it would not be in our best financial
interest to lease the equipment due to the interest charged and buyout values, and therefore the
increased total cost.
A rental option was also explored, however, with little success. Staff contacted several area
Heavy Equipment suppliers who advised they either no longer own this equipment or that they
do not rent out the equipment "non operated" due to the high insurance rates.
Another disadvantage of the rental option is the high cost of repairs required should the
equipment be inadvertently damaged.
The Regional Municipality of Durham and the Town of Whitby have advised that they do tender
for the rental of this equipment complete with operator. Again, due to the high cost of
insurance, the response of potential bidders has been extremely low. As a result, the Region
continues to increase the size of their own fleet to cover their requirements.
If in the future, the Municipality of Clarington increases the winter program route, then the rental
option with operator may make sense, if the market is such that there are sufficient prospective
bidders.
The required funds exceed the total budget allocation of $160,000.00 as identified in 2003
capital budget. It is therefore recommended, that the additional funds of $29,508.33 also be
drawn from Account # 8345-03200-1401 with Public Works Development Charge Reserve Fund
financing $22,184.36 of the additional funds and $7,323.97 tax levy portion will be over budget.
2
'REPORT NO,: COD-019-03
PAGE 3
The reason for the tendered price being higher than estimated is due to the fact that the
government emissions standard for engines had increased the cost of the basic cab and
chassis in addition to the normal yearly price increase. Also, the snow plow equipment for a
single axle truck is more expensive due to the urban area's they are required for.
Due to the extended lead time for this equipment and in order to ensure delivery in time for the
2003 / 2004 winter season, the order must be placed as soon as possible.
After further review and analysis of the tender by Operations and Purchasing, it was mutually
agreed that Performance Equipment, Mississauga, Ontario, be recommended for the contract to
supply and deliver One (1) 2003 Cab and Chassis, 39,000 GVW Cab & Chassis C/W Plow
Equipment, to the Municipality of Clarington, as required by the Operations Department.
The Director of Finance has reviewed the funding requirements and concurs with the
recommendation. Queries with respect to department needs, specifications, etc., should be
referred to the Director of Operations.
The subject firm has previously provided satisfactory for the Municipality of Clarington.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3AB T (905)623-3379 F (905)B23-41B9
3
..
Cl~_n
Municipality of Clarington
SCHEDULE "A"
BID SUMMARY
TENDER CL2003-8
BIDDER TOTAL BID AMOUNT COMMENTS
Performance Equipment $189,508.33
MississauQa, ON
Humberview Trucks $234,903.60 Does not meet specifications
Toronto, ON in several areas
Donway Ford Sales Ltd. $243,750.55
Toronto, ON
Winslow-Gerolamy Motors $253,847.55
PeterborouQh, ON