MUNICIPALITY OF CHATHAM-KENT INFRASTRUCTURE AND ENGINEERING SERVICES DRAINAGE, ASSET AND WASTE MANAGEMENT
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1 MUNICIPALITY OF CHATHAM-KENT INFRASTRUCTURE AND ENGINEERING SERVICES DRAINAGE, ASSET AND WASTE MANAGEMENT TO: FROM: Mayor and Members of Council Ann-Marie Millson, Manager, Fleet Services DATE: December 7, 2009 SUBJECT: Various Requests for Proposals and Tender Results RECOMMENDATIONS It is recommended that: 1. The lowest bid meeting specification submitted by Chatham Chrysler for a 2009 Dodge Grand Caravan in the amount $26, (PST included) be approved. 2. The company scoring the highest matrix score, Newmarket Toyota for the purchase of two, 2010 Toyota Prius Hybrid cars at a total cost of $60, be approved. 3. The company scoring the highest matrix score, ResQtech for the purchase of a used Rosenbauer Viper 75 foot aerial device at a total cost of $559, (no taxes) be approved. BACKGROUND Each year, Fleet Services reports to Council the list of vehicles recommended for replacement. This pre-approval process has allowed administration to prepare tenders and requests for proposals (RFP s) and have the purchases approved by the General Manager of Infrastructure and Engineering Services (GM). Only when anomalies such as RFP s and tenders that are over the estimated cost or a disqualification occurs is Council approval requested. This process has reduced the number of reports brought before Council and significantly expedited the Fleet purchasing process.
2 Various Requests for Proposal and Tender Results 2 At the April 27, 2009 meeting, Council approved the replacement of the following units: 00VN039 assigned to Recreation Services at an estimated replacement cost of $25, CR012 and 00CR013 assigned to Building Inspections at an estimated replacement cost of $25, per vehicle. At the October 5, 2009 meeting, Council approved the replacement of unit 88FD037 assigned to the Tilbury Fire Station. The estimated replacement cost for this unit is $546, and will be taken from the 2010 reserve. COMMENTS Table One T Purchase of a Minivan A standard tender was issued for the purchase of a cargo type minivan. The low bid price is higher than the estimated purchase price and as such requires Council approval. The Fleet reserve is in a positive position. The following table identifies the results of the minivan tender: Company Year Make and Model Price (PST Included) Columbo Motors 2010 Dodge Caravan Disqualified Chatham Chrysler 2010 Dodge Grand Caravan 26, Performance Chrysler Dodge Jeep 2010 Dodge Grand Caravan 28, Oxford Dodge Chrysler 2010 Dodge Grand Caravan 29, Oxford Dodge Chrysler 2010 Dodge Grand Caravan (Dealer Locate) 30, Accordingly, it is recommended that the lowest tender meeting specification from Chatham Chrysler for the purchase of a Dodge Grand Caravan at a total cost of $26, (P.S.T. included) be accepted. Table Two R Purchase of Two Compact Hybrid Cars As part of Council s intent to transition toward green technology, Fleet Services issued an RFP for the purchase of two hybrid cars to be assigned to the Building Inspections area. An RFP was issued instead of a tender since it provides greater flexibility for Council to carefully consider the higher initial cost of the hybrid vehicles. The purchase price of a hybrid vehicle is approximately $9,300 higher than a traditional vehicle. Fuel consumption of the hybrid is estimated at 3.8 L/100 km versus 10 L/100
3 Various Requests for Proposal and Tender Results 3 km in a traditional unit. It is estimated that these vehicles will be driven approximately 120,000 km over their eight-year lifecycle. With fuel at 95 /L, the fuel savings with the hybrid is approximately $880 per year or $7,040 over an eight-year lifecycle. Assuming no other major repairs, the hybrid vehicle savings fall approximately $2,300 short of the initial capital outlay for the traditional vehicle. If fuel increases, obviously the savings of operating the hybrid become proportionally greater. It should be noted that the warranty on the hybrid fuel cell is eight years matching our lifecycle. The following table identifies the results of the hybrid car RFP: Company Year Make and Model Matrix Results Newmarket Toyota 2010 Toyota Prius Hybrid 70 Campbell Toyota 2010 Toyota Prius Hybrid 30 Accordingly, it is recommended that the company scoring the highest matrix score, Newmarket Toyota, for the purchase of two (2) 2010 Toyota Prius Hybrid cars at a total cost of $60, be approved. As an incentive promoting the purchase of hybrid vehicles, each unit is eligible for a $2, Provincial Sales Tax rebate ($4, in total) which will be credited back to the Fleet reserve to offset the purchase price. Table Three R Purchase of a Used 75 Aerial/Quint Device An RFP was issued to investigate the availability of a suitable used unit to replace vehicle 88FD037assigned to the Tilbury Fire Station. The following table identifies the results of the RFP: Company Year Make and Model Matrix Results E-One 2010 E-One 75 Aerial/Quint Unit Sold after RFP closed ResQtech 2009 Rosenbauer Viper 75 Aerial 929 Fort Garry 2009 Sutphen 75 Aerial Device 834 KME RM Aerialcat Ladder 762 KME RM Aerialcat Ladder 762 Accordingly, it is recommended that the company scoring the highest matrix score, ResQtech, for the purchase of a used Rosenbauer Viper 75 foot aerial device at a total cost of $559, (no taxes) be approved.
4 Various Requests for Proposal and Tender Results 4 COMMUNITY STRATEGIC PLAN The recommendations in this report do not support, negatively or positively, a specific objective of the Community Strategic Plan. It is a neutral issue. CONSULTATION Fleet Services has consulted with the Manager of Recreation Facilities, Director/Chief Building Official and Fire Services. All are in agreement with this report. FINANCIAL IMPLICATIONS Fleet Services is providing a summary of the year to date reserve information for Council s review Opening Balance of Fleet Reserve $2,995, Approved Purchases from Reserve $1,746, Commitments to date -$2,634, Commitments from this report -$ 641, Tenders RFP s Released (committed) -$1,356, Reserve Remaining $ 109, Fleet Services utilizes a detailed financial sheet to document each tender and proposal as they are solved and reported to either the GM or Council. This spreadsheet tracks the reserve as expenses are allocated to assist in analyzing the balance. As the reserve balance approaches depletion a determination to carry an item forward to the following year may occur. This eliminates the risk of over spending and depleting the reserve.
5 Various Requests for Proposal and Tender Results 5 Prepared by: Reviewed by: Ann-Marie Millson, CMM II Manager, Fleet Services Tim Dick, C.E.T. Director, Drainage, Asset and Waste Management Reviewed by: Leo Denys, P. Eng. General Manager, Infrastructure and Engineering Services Attachment: None c: Director/Chief Building Official Manager, Recreation Facilities Fire Services RTC\I. & E.S.\I. & E.S.\2009 Reports\ 3195-Various Proposal and Tender Results.doc
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