HomeMy WebLinkAboutCOD-026-05
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REPORT
CORPORATE SERVICES DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
May 24, 2005
COD-026-05
File#_
By-law #
Report #:
Subject:
Purchase of Light Duty Vehicles
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee recommend to
Council the following:
1. THAT Report COD-026-05 be received;
2. THAT the requirements for tendering of the Purchasing By-law #94-129, Paragraph 5, item 5.06
be waived;
3. THAT the Purchasing Division be authorized to negotiate the immediate purchase of the following
vehicles:
. One four door sedan required by the Emergency & Fire Services Department
. One four door compact sedan required by the Clerk's Department;
4, THAT the required funds be drawn from the 2005 Emergency & Fire Services and Clerk's
Department Capital Budget as identified by Project ID #5000-8210-05002 and #3000-8250-05001
respectively; and
5. THAT, Staff be authorized to proceed with pre-budget approval each January for the purchase of
all light duty vehicles budgeted in that year, with the final award being subject to Council approval
within the purchasin by-law provision.
Submitted by:
Reviewed b .
Franklin Wu,
Chief Administrative Officer
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Submitted by:
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Municipal Clerk
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Director of Emergency & fire Services
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Nancy aylor, B.B.A., CA,
Director of Finance
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REPORT: COD-026-05
PAGE 2
BACKGROUND AND COMMENT
As approved in the 200S Capital Budget both the Clerk's Department and the Emergency & Fire
Services Department provided funding for the purchase of a new compact sedan and a four-
door full size sedan, respectively. In each case, the departments have expressed a need to
have these vehicles available immediately or as soon as practicable to deal with a shortage of
vehicles. In the case of the Clerk's Department, the van they have shared with the Community
Services Department is needed full time by the Community Services Department for the
summer. Under the circumstances, it is important that the Clerk's Department have the
compact sedan before the summer months to provide transportation for Parking Enforcement
staff. In the case of the Emergency & Fire Services Department, the vehicle is needed for the
new Deputy Chief.
Due to the timing of the budget approval the opportunity to secure pricing by tender and place
factory orders for the purchase of 2005 model light duty vehicles has passed and the
opportunity will not present itself again until late August or early September when pricing for the
2006 models becomes available to the dealers. In order to obtain the vehicles in time to meet
the requirements of the two departments it is recommended that staff negotiate with selected
vendors for the purchase of existing vehicles for immediate delivery. The conventional
competitive bidding process normally used to purchase vehicles will not work in this case
because of the time it takes to secure the bids, evaluate the bids, make the selection and get
the approval to award orders. Given the urgency the vehicles must be on the lot and ready for
immediate purchase, however, these vehicles are subject to prior sale and may well be sold
before a final decision and approval could be obtained to proceed with the purchase.
For the foregoing reasons, the staff recommends that the tendering requirements of the
Purchasing By-law #94-129, Paragraph S, item 5.06 be waived and approval be given to
proceed with the negotiation with selected dealers for the immediate purChase of two vehicles
subject of course, to the purchase price being within the budget estimate. Note, provided the
total price of the vehicles are within the approved capital budget amounts, a further report to
Council will not be brought forward.
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REPORT: COD-026-05
PAGE 3
In order to avoid this problem in future, it is recommended that, Staff be authorized to proceed
with pre-budget approval in January of each year. For the purchase of all light duty vehicles
budgeted in that year, with the final award being subject to Council approval within the
Purchasing by-law provision. This will enable the Purchasing Division to complete the
competitive bid process, evaluate the bids, prepare the required reports recommending awards
and place the orders before manufacturers cut off factory orders.
The advantages of taking this initiative will get the required current model vehicles to the
departments early in the year. Early acquisition of replacement vehicles will eliminate any
operating/maintenance costs required to maintain older vehicles until the replacements arrive in
November/December using the current timing.
The required funds to cover the purchases are provided as follows in the 2005 Emergency &
Fire Services and Clerk's Department Capital Budget as identified by Project ID #5000-8210-
05002 and #3000-8250-05001 respectively.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169