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HomeMy WebLinkAboutFCS-17-162 - Q17-070 Trailer Mounted Drum-Type Brush Chipper REPORT TO:Committee of the Whole DATE OF MEETING:2017-09-25 SUBMITTED BY:Michelle Palmer, Director of Supply Services 519-741-2200 ext. 7214 PREPARED BY:Adam Buchholtz, Buyer, 519-741-2200ext. 7217 WARD(S) INVOLVED:N/A DATE OF REPORT:2017-09-15 REPORT NO.:FCS-17-162 SUBJECT:Q17-070 One (1) Trailer Mounted Drum Type Brush Chipper ___________________________________________________________________________ RECOMMENDATION: For Information Only BACKGROUND: Thisisan additional unit forCommunity Services – Sport and Cemeteriesas approved in the 2016 Annual Fleet Equipment Review.This unit will be used forchippingtree branches duringregular maintenance, andfromstorm damage.Thisunitwill have an eleven (11) yearplannedlifecycle. REPORT: In accordance withthe Purchasing and Materials Management Bylaw clause 170.3.7 - “When any written formal quote other than the lowest bid is accepted, a report shall be taken to the next meeting of Council for their information”. Quotation Q17-070One (1) Trailer Mounted Drum Type Brush Chipper, has been awarded to NortraxCanada Inc.,Cambridge, Ontario, at their quoted price of $44,244., plus H.S.T. of $5,751.72, for a total of $49,995.72. Quotationswere advertised publicly on the City of Kitchener website. Documents were downloaded by six (6) interested parties and by the closing date of Monday July 31, 2017, five (5) quotationshad been received. ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. The following quotations were received: Bid Price Altec Industries Ltd.Milton ON $45,120.90 NortraxCanada Inc. Cambridge ON $49,995.72 * Vermeer Canada Inc. Brampton ON $56,387.00 Allan Fyfe Equipment Ltd. Concord ON $59,878.70 Nortrax Canada Inc. – Alternate BidCambridge ON $70,202.38 The low bid submitted by Altec Industries Ltd. did not meet the specifications in the following areas: lack oftongue jack, which is required to remove the chipper from the truck when not being used, and lack ofcoolant type block heater,which is required for a diesel engine to start in the winter months. As a result, the quotation submission from Altec Industries Ltd. was deemed non-compliant and was disqualified. The quotes were reviewed by M.Born,Manager of Fleet, who concurred with the above review and award. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The net cost for this quotation (A), is fair and reasonable for a purchase of this scope, but the upset limit is beyond the allowance provided within the budget (B). Funding for this equipment is included within the approved capital budget. The estimated deficit (D) will be funded from previous surpluses that have been closed out to the Equipment Reserve Fund. Quotation Q17-070 Supply and Install One (1) Trailer Mounted Drum Type Brush Chipper Estimated Cost for this Quotation Quotation Q17-070 costs including HST 49,995.72 less: HST rebate on tender (4,973.03) Net Cost Being Awarded 45,022.69A Projected Costs for Additional Outfitting - Total Estimated Cost for this Quotation $45,022.69C Budget for this Quotation Additional unit in CSD –Sport and Cemeteries $45,000.00B Estimated Surplus/(Deficit) for this Quotation (B -C) (22.69)D to be funded from Equipment Reserve Fund COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: Not applicable ACKNOWLEDGED BY: Michael Goldrup, Acting Deputy CAO, Finance and Corporate Services