HomeMy WebLinkAboutTR-74-84 R E.P®R`r
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CORPORATION OF THE TOWN OF NEWCASTLE jL. "
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
LiC3A6 TELEPHONE 623-3379
REPORT TO COUNCIL MEETING OF AUGUST 29, 1984
REPORT NO. : TR-74-84
SUBJECT: TENDER T84-15, VEHICLE TENDER
RECOMMENDATION:
It is respectfully recommended to Council :
1 . That this report be received; and
2. (a) That Council approve purchasing three half-ton trucks in accordance with
Tender T84-15 (Section A) from Holiday Ford Sales (1980) Ltd. ,
Peterborough , with a total bid of $32,658.54 being the lowest
responsible bidder meeting all terms and specifications,
OR
(b) That Council approve purchasing three half-ton trucks in accordance with
Tender T84-15 (Section A) from Cowan Pontiac-Buick Ltd. , Bowmanville,
with a total bid in the amount of $27,622.05 being the lowest bidder
and that Council direct staff to make appropriate arrangements for
fuelling said vehicles; and
3. That Winslow-Gerolamy Motors Ltd. , Peterborough, with a total bid in the
amount of $75,206.02 being the lowest responsible bidder of Tender T84-15
(Section B) be awarded the contract to supply two only 35000 G.V.W. Cab
& Chassis as required by the Town of Newcastle; and
4. That Cowan Pontiac-Buick Ltd. , Bowmanville, with a total bid in the amount of
$11 ,596.66 being the lowest responsible bidder of Tender T84-15 (Section C)
be awarded the contract to supply one only 10000 G.V.W. Cab & Chassis as
required by the Town of Newcastle; and
5. That the funds be drawn from the approved 1984 Public Works capital budget
account.
BACKGROUND AND COMMENT
Tenders were publicly advertised and invited for three only half-ton Pick Up
Trucks, two only 35000 G.V.W. Cab & Chassis, and one only 10000 G.V.W. Cab & Chassis
as required by the Department of Public Works.
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The bids were received and tabulated as follows:
Section A (3 only Half-ton Pick Up Trucks)
Bidder Total Bid Amount
Cowan Pontiac-Buick Ltd. $27,622.05 (Unleaded Fuel)
Bowmanville, ON
Holiday Ford Sales (1980) Ltd. 32,658.54 (Regular Fuel )
Peterborough, ON
Section B (2 only 35000 G.V.W. Cab & Chassis)
Bidder Total Bid Amount
Winslow-Gerolam Motors
Y Ltd. $75,206.02
Peterborough, ON
Holiday Ford Sales (1980) Ltd. 83,641 .90
Peterborough, ON
Section C (1 only 10000 G.U.W. Cab & Chassis)
Bidder Total Bid Amount
Cowan Pontiac-Buick Ltd. $11 ,596.66
Bowmanville, ON
Holiday Ford Sales ( 1980) Ltd. 12,460.15
Peterborough, ON
i
Comments - Section A
As in the past, considering the fact that the Public Works Department has
only diesel and regular leaded gasoline fuelling facilities, the specification
included a provision for regular gas engines.
The bid from Cowan Pontiac-Buick Ltd. , Bowmanville is the lowest by a
considerable amount, however, it provides a truck which operates on fuel not dispensed
at our Public Works Depots. The following will present an analysis of the cost
structure for both vehicles.
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COMPARATIVE COST ESTIMATE FOR HALF-TON TRUCKS
ENGINE FUEL
COST ITEM LEADED UNLEADED
A. Capital Cost (excl . P.S.T.) $10,174.00 $ 8,605.00
B. Annual Cost of Capital 1,220.88 1 ,032.60
Cost @ 12%
C. Annual Maintenance same
D. Annual Fuel Cost 2,685.00 3,075.00
E. Revenue from Disposal 1,000.00 11000.00
F. Life Depreciation (5 yr.) 9,174.00 7,605.00
G. Annual Depreciation 1,834.80 1,521.00
Total Annual Cost/Truck (B+C+G) $5,740.68 $5,628.60
Costing Basis for Above:
Current Fuel Prices: Leaded - $1.79/gal .
Unleaded - $2.05/gal .
Mileage/Truck/Year 30,000 miles
Fuel Consumption 20 M.P.G.
From the above, it appears that based upon the lower capital cost, the
unleaded fuel vehicle provides a better economy by about $110.00 per
year.
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Assuming that Council elects to purchase unleaded fuel vehicles, the
possibilities for fuelling must be considered. These include:
(a) Install unleaded fuel dispensing facilities at the Public Works Depots;
(b) Convert the present leaded dispensing facilities to unleaded;
(c) Purchase unleaded fuel at retail outlets.
Alternative (a) is not cost-effective since each installation of a new storage
tank and pump would cost between $6,000 and $10,000. We are presently on a program
of replacing all heavy vehicles which run on gas with those using diesel fuel .
Conceivably, in about three years the only vehicles owned by the Public Works
Department using gas would be half-ton trucks and items such as chain saws, etc.
Thus, at that time, we could discontinue using regular leaded fuel and purchase
unleaded fuel . The extra dispensing facilities would then become redundant.
Alternative (b) for at least the next few years also does not present a cost
effective proposal . Although the regular gas consumption by the Public Works
Department fleet is decreasing each year, we presently use about 50,000 gallons per
year. At a difference in cost of $.25 per gallon between leaded and unleaded gas,
this represents an annual cost differential of about $12,500 per year. Thus,
replacing the existing regular leaded gas at the depots with unleaded gas is not
advisable.
c
Alternative (c) presents what is probably the most feasible of the alternatives,
however, it has its own disadvantages. Firstly, administration through use of credit
cards, term purchase orders, et-c. , would require more administration and could be
open to criticism from certain taxpayers. Secondly, such a procedure would place the
Town in a position where it is subject to the daily fluctuations in retail fuel prices
and thus we would not enjoy a standard tendered price. The driver could be placed in
the position of seeking out the best gas prices, as we all do. Finally, the
convenience of regular fuelling practices at a standard location could be lost
resulting in a less efficient use of time.
As indicated previously, from an annual cost analysis viewpoint, the unleaded
fuel vehicle is least costly. However, from the standpoint of providing fuel for
such vehicles, the Town is at a disadvantage and would probably lose the annual cost
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saving in capital of about $110.00 per vehicle. Staff could, however, if directed by
Council , make arrangements, possibly through some variation of the alternatives
presented, to accommodate unleaded fuel vehicles.
Comments - Section B & C
After review and analysis of the low responsible bidders, it was mutually
agreed by Purchasing and the Public Works staff, that Winslow-Gerolamy Motors Ltd. ,
Peterborough, and Cowan Pontiac-Buick Ltd. , Bowmanville, be awarded the contracts to
supply two only 35000 G.V.W. and one !only 10000 G.U.W. Cab & Chassis, respectively.
Respectfully submitted,
r
John R. Blanchard
a� Deputy Treasurer
14Z4
J R.G. Dupuis, P. Eng.
Director of Public Works
JRB/RGD/lb