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Home My WebLink AboutCOD-029-03 REPORT # 3 ClfJl'illgton REPORT CORPORATE SERVICES DEPARTMENT Meeting: COUNCIL Date: June 23, 2003 Resolution #: Report #: COD-029-03 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-029-03 be received; 2. THAT the contract award to Performance Equipment Trucks, Toronto, Ontario be cancelled; 3. THAT Donway Ford Sales Ltd., Toronto, Ontario, with a total bid in the amount of $169,606.60 (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 4. THAT the funds be provided from the 2003 Capital Operations Vehicle I Heavy Equipment Account # 8345-03200-1401; and 5. THAT the additional funds of $9,606.68 be provided from the 2003 Capital Operations Vehicle I Heavy Equipment Account #8345-03200-1401 with the Public Works Development Charge Reserve Fund financing $7,222.30 of the additional funds and the $2, 384.38 tax lev ortion will be over budget. rie Marano, H.B.Sc., C.M.O. Director C e ices Reviewed bYU ~- ~ Franklin Wu, Chief Administrative Officer Submitted by: MM\FH\LAB\LM\lm Fr 0 RDMR, RRFA, Direct r of Operations - . REPORT NO.: COD-029.03 PAGE 2 BACKGROUND AND COMMENT Subsequent to Report COD-019-03 (see Schedule "B" attached) and Council Resolution #C-347-03 approving the award of Tender CL2003-8 for (1) One 39,000 GV\N Cab and Chassis clw Plow Equipment, it became evident that the cost of the snow plow equipment had been included in the total bid price twice, thereby Incorrectly inflating three of the bids. The revised bids are as per Schedule "A" which now changes the low bidder from Performance Equipment to Humberview Trucks. The revised low bid from Humberview Trucks, Mississauga, Ontario, does not meet the required specifications with respect to the size of frame, engine and transmission. It is therefore recommended that the contract award to Performance Equipment Truck be cancelled and that the award be made to Donway Ford Sales Ltd., Toronto, Ontario with a total bid in the amount of $169,606.60. The bidders for this tender have each been contacted and concur with the total amounts reflected on Schedule "A". The Director of Finance has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc., should be directed to the Director of Operations. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 2 . ' CIiJ!:JlJgton Municipality of Clarington SCHEDULE "A" REVISED BID SUMMARY TENDER CL2003-8 BIDDER TOTAL BID AMOUNT ... . COMMENTS Humberview Trucks $160,759,65 Does not meet specifications Toronto, ON in several areas Donway Ford Sales Ltd, $169,606,60 Toronto, ON Winslow-Gerolamy Motors $179,703.60 PeterborouQh, ON Performance Equipment $189,508.33 Mississauoa, ON . Schedule liB" to Report COD-029-03 C[fJl-!lJgton REPORT CORPORATE SERVICES DEPARTMENT Meeting: COUNCIL Date: June 9, 2003 Resolution #: Report #: COD-019-03 File#: By-law #: Subject: CL2003-8, One (1) 39,000 GVW Cab & Chassis clw 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 clw Plow Equipment, as required by the Municipality of Clarington, Operations Department, and 3. THAT the funds be provided from the 2003 Capital Operations Vehicle / Heavy Equipment Account # 8345-03200-1401; and 4. THAT the additional funds of $29,508.33 be provided from the 2003 Capital Operations Vehicle / 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: C ~ -=- ~~ Franklin Wu, Chief Administrative Officer f/;.. I<.'::J~ r"(I. ;:",2.0<> IIM,;,,'H Fred H ;;{RDMR. RRFA, Director of Operations MMlLABILMllm ~EPORT NO.: COD-019-03 PAGE 2 BACKGROUND AND COMMENT Tender CL2003-8, for one only 39,000 GWJ Cab & Chassis cIw 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 rentai 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 I 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 clw 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, BOW MANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 3 o Municipality of Clarington SCHEDULE "A" BID SUMMARY TENDER CL2003-8 ", BIDDER TOTAl.BJD':AMOUNr. "."":<l1!'!!t'.;\',~COMMENTS ".',"". Performance Equipment $189,508.33 Mississauga, 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 Peterborough, ON