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CORPORATION OF THE TOWN OF NEWCASTLE
PUBLIC WORKS DEPARTMENT R. DUPUIS, P. ENG., DIRECTOR
HAMPTON,ONTARIO TEL.(416)263-2231
LOB 1J0 987-5039
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MEETING OF OCTOBER 12, 1982.
REPORT NO. WD-85-82.
SUBJECT: VEHICLE TENDER T. 82-1
RECOMMENDATIONS:
It is respectfully recommended:
1. That this report be received, and,
2. That Staff be authorized to re-tender for the supply
and delivery of 3 - 1/2 ton pick up trucks in accordance
with the 1982 capital budget, and,
3. That specifications for three vehicles be modified to
accept alternative engine types and fuels.
BACKGROUND AND REPORT:
Staff_ advertised for tenders for the supply and delivery of three
half ton pick up trucks, in accordance with the Public Works
Department Capital Budget and Resolution G.P.A. 688-82. Truck
specifications similar to previous half ton requirements giving
consideration to fuel economy were used. Resolution # G.P.A.
1091-82 requested a report setting out the cost implications
of the Works Department changing to unleaded or diesel fuels.
The Works Department's present fuel storage and pumping facil-
ities are limited to two - one-thousand gallon tanks at each
yard with regular gas stored in one tank and diesel fuel in the
other.
It is felt that changing fuel storage regulations will require
the Town to make changes in the present fuel storage and pumping V
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facilities over the next few years. At the time these changes
are required a complete analysis of the Towns fuel needs will
have to be made. It must be borne in mind, that adding new fuel
storage tanks to the Towns Works Depots would cost in the order
of $10,500 / installation at this time.
The present annual fuel comsumption of the Works Department for
1981/82 and 80/81 is:
September 81 to September 82 53,800 gal . reg. gas
41,000 gal . diesel
September 80 to September 82 59,200 gal . reg. gas
34,800 gal . diesel
In recognition of Resolution G.P.A.-1091-82 several alternatives
were considered.
Alternative 1 :
That the Public Works Department tender for the supply and
delivery of three - 112 ton trucks equipped with diesel engines.
The initial capital cost of this proposal would be an additional
$2,500.00 to $3,000.00 per unit.
Using an interest rate of 12 %, the increased annual operating
cost would be $300.00 / unit. The additional capital outlay
would depreciate to zero after 5 years. The diesel engine
vehicle is expected to out-perform equivalent gas models in
that it gives more miles per gallon and requires less costly
routine maintenance, although major repairs are normally
more costly.
Using an estimated 30,000 miles per year as an average driving
distance for each vehicle the fuel costs are analysed as follows
and included in the attached table.
Diesel
30,000 miles / year @ 25 miles / gal . = 1200 gals. x $1.75 / gal .=
$2,100.00
Gas
30,000 miles / year @ 20 miles / gal . = 1500 gals. x $1.70 / gal .=
$2,550.00
General Motors Ltd. are the only Canadian Manufacturer of
trucks that offer a diesel engine as an option.
In view of the estimated costs and the single manufacturer of
diesel equipment Alternative 1 is not recommended.
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Alternative 2:
That the Town tender for and purchase unleaded gasoline-powered
112 ton trucks and that the Town utilize existing storage and
pumping facilities by changing all gasoline units to unleaded
fuel .
With this alternative there is little or no advantage in performance
or annual maintenance costs of fleet. The increased cost to the
Town is in the increase cost of the fuel , which is estimated at
2.5¢ per liter or 11.35 ¢ per gallon.
Using an estimate gas consumption of 50,000 gal per year at
11 .35 per gallon the estimated additional cost to the depart-
ment is $5,675.00.
Alternative 3:
That the Public Works Department tender for and purchase un-
leaded gasoline powered 1/2 ton trucks and that the Public Works
Department enter into an agreement with the Town's Fuel Supplier
to provide portable 250 gal . above ground gasoline tanks and
pumps on a rental basis similar to those used for agricultural
purposes.
The estimated cost for this alternative is borne in the price
paid for the fuel . The additional cost per gallon is estimated
at 14� over the price for regular leaded gas .
Additional cost over regular gas = increase per gallon x total
consumption. 14¢ per gallon x 1500 gallons = $210. per year per
unit or a total of $630.00 per year for 3 units.
The additional cost of the unleaded fuel and the increased
vandalism experience at the works depots suggest that above
ground outside storage is not a recommended solution.
SUMMARY:
In view of the analysis it would appear that vehicles utilizing
leaded gasoline provide the most desirable alternative. However,
not all North American manufacturers produce such an engine, there-
by reducing the competitiveness in tendering. It is therefore
recommended that the specifications for the supply of new 112 ton
trucks be retendered permitting alternate engine types and fuels
since it is now felt that depending upon the prices received, the
Town could accomodate to either diesel , leaded or unleaded fuel
vehicles. As mentioned previously there could be slightly
more operating costs and inconvenience in accepting a vehicle
running on unleaded fuel .
Respectfully ubmitted,
. G. Dup P. Eng. ,
c' 5, 1982 Director of Public Works
G/RGD:
i t�ober
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ATTACHMENT # 1
COST COMPARISON
REGULAR UNLEADED DIESEL
CAPITAL COST $10,000. $10,000. $12,500.
ANNUAL COST OF CAPITAL
EXPENDITURE (@ 12%) $ 1,200. $ 1 ,200. $ 1,500.
ANNUAL MAINTENANCE -------- -------- --------
ANNUAL FUEL $ 2,550. $ 2,760. $ 2,100.
SELLING $ 1,000. $ 1,000. $ 1,000.
LIFETIME DEPRECIATION $ 9,000. $ 9,000. $11 ,500.
ANNUAL DEPRECIATION COST $ 1,800. $ 11800. $ 2,300.
TOTAL ANNUAL COST $ 5,550 $ 5,760 $ 5,900.
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