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Home My WebLink AboutTR-74-97 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: ENERAL PURPOSE AND ADMINISTRATION COMMITTEE i 9� File# MONDAY JULY 7 1997 Res. #v ' Date: -.. .. TR-74-97 By-Law# _ Report#: File #: Subject: TENDER CL 9 7-14, ONE (1) ONLY GRADALL Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report TR-74-97 be received; 2 . THAT Sheridan Equipment, Pickering, Ontario, with a total bid in the amount of $260, 268 . 00, being the lowest responsible bidder meeting all terms, conditions and specifications of Tender CL97-14 , be awarded the contract to supply one (1) only Gradall, as required by the Municipality of Clarington, Department of Public Works; and 3 . THAT the funds expended be provided from the approved 1997 Public Works Fleet Account #2900-00010-0000 . BACKGROUND AND COMMENT: Tenders were publicly advertised and potential bidders invited for the supply and delivery of one (1) only Gradall, as required by the Department of Public Works . Subsequently, tenders were received and tabulated as follows : Bidder BidAmount Trade'iitx Tofal Bid:Price Values..:;* (Incl Taa�es) Amaco Equipment $200,000.00 $35,000.00 $189,750.00 Mississauga, Ontario Sheridan Equipment $252,320.00 $26,000.00 $260,268.00 Pickering, Ontario Amaco Equipment $273,938.00 $35,000.00 $274,778.70 Mississauga, Ontario * Trade-in of One (1) 1989 G3WD Gradall I PAP «Y rE iws is nnmeuav necvcreo pneen i REPORT NO. : TR-74-97 PAGE 2 TENDER CL97-14 For the information of Council, the number of manufacturer' s for this type of equipment is limited. The low bid from Amaco Equipment does not meet specifications as they tendered a single axle, two wheel drive gradall, when a tandem axle, four wheel drive vehicle was specified. With respect to the trade-in allowance offered for the 1989 Gradall, bidders were advised that the Municipality of Clarington reserved the right to accept or reject a trade-in allowance . It is staffs opinion, that the trade-in offered is reasonable and is likely in excess of any amount the equipment could be sold for at the Regional Auction Sale . Funds in the amount of $190, 000 . 00 were provided in the 1997 Public Works Fleet Account, as indicated on Page 161, Item 3 of the Capital Budget . See Schedule "A" attached for comments from the Manager of Operations, regarding the over expenditure as well as details on the repairs of the existing equipment . A total of $749, 000 . 00 was budgeted in this account in 1997 for the replacement of fleet . At the present time, other than the gradall, all contracts for equipment have been awarded at a combined total cost of $527, 381 . 00 . It is therefore recommended that the remaining funds of $221, 618 . 00 be allocated towards the purchase and that an additional $38, 650 . 00 be drawn from the same account . After further review and analysis of the tender by Public Works and Purchasing, it was mutually agreed that Sheridan Equipment, Pickering, Ontario, be recommended for the contract to supply and deliver one (1) only Gradall to the Municipality of Clarington, as required by the Department of Public Works, and that the trade-in offered for the 1989 Gradall be accepted. REPORT NO. : TR-74-97 PAGE 3 TENDER CL97-14 The Treasurer 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 Public Works . Although the subject firm have not previously supplied this type of equipment to the Municipality of Clarington, they have satisfactorily supplied the Town of Whitby. Respectfully submitted, Reviewed by, kMtfkie Marano, H.BSc . ,AMCT. , W.H. Stockwell, Treasurer Chief Administrative Officer U� Stepherf A. Vokes, P.Eng. Director of Public Works MM*LB*ld SCHEDULE "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Memorandum To: Lou Ann Birkett, Purchasing Manager From: Don Patterson, Manager of Operations Date: July 3 , 1997 Subject: CL 9 7-14; ONE (1) ONLY GRADALL I have reviewed the above mentioned tender and recommend the second bid amount, which meets the tender specifications : BIDDER TOTAL BID PRICE (Incl. Taxes) Sheridan Equipment $260,268. 00 Pickering, Ontario The first bid from Amaco Equipment does not meet specifications as they tendered a single axle, two-wheel drive gradall when a tandem axle, four-wheel drive vehicle was requested. Please find attached financial information on the present fleet gradalls . The 1989 Gradall which will be traded had earned $390, 166 . 00 in revenue by the end of December 1996 . The decision was made to tender for a heavier piece of equipment, when the repair costs were analyzed. Public Work' s newer gradall has cost approximately $85, 000 . 001 with $47, 000 . 002 being spent in 1996 . The other factor which has to be considered is the cost of renting a replacement gradall and the lost revenue due to down time . The example shown on attached sheet estimates another $40 , 000 . 00 in rentals and down time . At this time staff believe that after the major expenditure in 1996 on the 1990 Gradall, that this machine may be operable for the next two years . At the same time because of the age of the 1989 Gradall, major repairs could be required at any time. 1 For repairs by Amaco (the supplier) , and does not include regular maintenance costs by staff. 2 Figure represents expenditure in repairs by supplier. I 1 I CL97-14; ONE (1) ONLY GRADALL: The replacement gradall is necessary to maintain the road ditching program, which is the key component to providing drainage to road bases, in order to preserve the existing road surfaces . Without the replacement gradall, Public Works would find it necessary to rent, which as can be seen by the attachment would result in higher maintenance costs . A total of $749, 000 . 00 was budgeted in 1997 for the replacement of fleet . At the present time, other than the gradall we have awarded contracts for all equipment for 1997 . The total cost to date is $523 , 757 . 00, I recommend that the balance of $225, 243 . 00 be used towards the purchase of the gradall and request an additional $35, 025 . 00 be taken from the Public Works Equipment Reserve account number 2900-00010-0000 . Sincerely, i Don Patterson Manager of Operations DP :kr pc : Steve Vokes, Director of Public Works r 2 WAGES & REPAIRS ON GRADALLS 1989 1990 1991 1992 1993 1994 1995 1996 TOTALS 89548 $1,052.85 $1,885.19 $2,304.19 $4,326.80 0. iiij $5,677.09 $7,186.39 $15,99248 $59,862.05 90551 $591.55 $2,540.28 $10;312 05 $71,591 51 $3,736 51 $9,1. 5 27 $46,839.94 $84,727.11 .......................... ... NQMTA . . .. EXAMPLE FOR 90551 DOWNTIME IN 1996: RENTAL 294.5 HRS $23,560.00 REVENUE LOST (294.5 X $54.40) $16,020.80 ADDITIONAL COSTS $39,580.80 $86,420.74 $124,307.91 REVENUE ON GRADALLS 1989 1990 1991 1992 1993 1994 1995 1996 TOTALS 89548 $28,030.20 $63,147.00 $58,318.40 $42,867.60 $52,924.00 $55,282.00 $46,131.20 $43,465.60 $390,166.00 90551 $28,969.50 $67,961.60 $47,663.70 $53,395.60 $59,578.80 $49,939.20 $34,816.00 $342,324.40 HOURS ON GRADALLS 1989 1990 1991 1992 1993 1994 1995 1996 TOTALS 89548 548 1,235 1,135 834 1,010 1,055 848 799 7,464 90551 564 1,322 927 1,019 1,137 918 640 6,527