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HomeMy WebLinkAboutCouncil Agenda - 2021-12-06 SSpecial Council Meeting Agenda Monday, December 6, 2021, 1:00 p.m. Electronic Meeting Due to COVID-19 and recommendations by Waterloo Region Public Health to exercise physical distancing, City Hall is open for select services. Members of the public are invited to participate in this meeting electronically by accessing the meeting live -stream video at kitchener.ca/watchnow. While in-person delegation requests are not feasible at this time, members of the public are invited to submit written comments or participate electronically in the meeting by contacting dele, atq ion(c-)kitchener.ca. Please refer to the delegations section on the agenda below for registration deadlines. Written comments will be circulated prior to the meeting and will form part of the public record. *Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994* Re: Special Council Meeting Notice is hereby given that Mayor B. Vrbanovic has called a special meeting of City Council to be held electronically to consider the following: Pages 1. Commencement The electronic meeting will begin with a Land Acknowledgement given by the Mayor. 2. Delegations Pursuant to Council's Procedural By-law, delegations are permitted to address the Committee for a maximum of five (5) minutes. Delegates must register by 11:00 a.m. on December 6, 2021, in order to participate electronically. 2.1. None at this time. 3. Staff Reports 3.1. FIN -2021-65 - P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire 3 Aerial Units 3.2. Council Member Appointments to Boards and 45 m Committees 4. In -camera Meeting Authorization Note: Any member of Council may question the appropriateness of a listed in - camera item. This may be done during the special Council meeting or at the beginning of the in -camera session. Council is asked to enact the following resolution to authorize an in -camera meeting: "That an in -camera meeting of City Council be held immediately following the special council meeting this date to consider one commercial information/contractual or other negotiation matter that is also subject to solicitor client privilege, and one land acquisition/disposition matter as authorized by Sections 239 (2) (c), (f) and (i) of the Municipal Act, 2001, respectively. 4.1. KW Hydro Merger (Commercial 90 m Information/Contractual or Other Negotiation and Solicitor Client Privilege — Section 239 (2) and (f) (i)) Staff will provide information and seek direction on this matter. 4.2. Lease extension at 122 Frederick (Land 15 m Acquisition/Disposition - Section 239 (2) (c)) Staff will provide information and seek direction on this matter. 5. By-laws 5.1. Three Readings 5.1.a. To confirm all actions and proceedings of the Council. 6. Adjournment Page 2 of 6 Staff Report Financial Services Department REPORT TO: Special Council DATE OF MEETING: 2021-12-06 l KtgR www. kitchener ca SUBMITTED BY: Ryan Scott, Manager, Procurement 519-741-2200 ext. 7214 PREPARED BY: Ryan Scott, Manager, Procurement 519-741-2200 ext. 7214 WARD(S) INVOLVED: N/A DATE OF REPORT: 2021-11-18 REPORT NO.: FIN -2021-65 SUBJECT: P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire Aerial Units RECOMMENDATION: That Council pre -approve funding in budget years, 2022-2024, for five (5) fire apparatus from the Fire -Major Equipment/Fleet Capital Account; and That Proposal P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire Aerial Units, be awarded to Metz Fire & Rescue, Guelph, Ontario, at their proposed price, in US dollars, of $5,292,695.95, plus H.S.T. of $688,050.47, for a total of $5,980,746.42 USD. REPORT HIGHLIGHTS: • The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106; • There were four (4) proposals received for this procurement; • This report supports the delivery of core services. BACKGROUND: Five (5) apparatus are scheduled for replacement between 2022 and 2024 as per the Fire - Major Equipment/Fleet 20 year replacement schedule. This comprises of two (2) fire pumper trucks and three (3) aerial units. The production time from an order being placed is twelve (12) months for fire pumper trucks, eighteen (18) — thirty (30) months for aerials. The fire service typically has fire apparatus built to defined specifications desired for the scope of the intended operations for the municipality and its fire department. These units are custom built to these specifications by the manufacturer and/or the dealer who have been awarded the contract through a formal procurement process. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 3 of 6 Considering the real supply chain issues that are impacting the world currently, the procurement of five (5) apparatus over a delivery period of three (3) years is seen as a strategic procurement which will provide the following benefits: • stability to the sourcing exercise, • mitigate supply risks and price escalations, • contribution to standardization of the fleet, • realize significant savings over the apparatus life cycle, • time savings - specification development and reduced engineering costs; • time savings - contract administration through the entire build process, • time savings - training of suppression staff on each apparatus, • time savings - training of mechanical staff on diagnosis and repair, • parts and maintenance — reduction in specialty parts being inventoried and increased operational readiness. The sourcing of multiple apparatus at one time with staggered deliveries is not new to the City. We had leveraged this method in 2017, in which we procured three (3) fire apparatus over a delivery period of two (2) years. This method provided savings in excess of $210,000 due to the benefits outlined above. As we look ahead to opening a new fire station in 2026; charging infrastructure required to support an all -electric fire truck will be included in the design. The all -electric fire truck is currently in its infancy and only one manufacturer has brought a truck to market, with no deliveries expected until the end of 2022. Over the next two (2) years, Kitchener Fire can evaluate the effectiveness of such an apparatus in frontline operations before purchasing a new pumper truck for the new station. REPORT: As per clause 170.7.1 of the Purchasing By-law 2017-106, the Director of Supply Services shall submit a report to Council recommending award of a purchase greater than $750,000. Proposals were advertised publicly on the City of Kitchener website. Documents were downloaded by six (6) interested parties and by the closing date of Wednesday November 3, 2021, four (4) proposals had been received. A listing of the responding parties follows for your reference: Commercial Emergency Equipment Delta BC Darch Fire Inc. Ayr ON Metz Fire & Rescue Guelph ON Resqtech Systems Inc. Woodstock ON Proposed pricing was requested in US dollars in order to obtain competitive bids without additional margins being added to account for currency fluctuations. The proposal submissions were reviewed and rated by the selection committee T. Gitzel, Deputy Fire Chief, G. Barnard, Master Mechanic — Firefighter, and R. Mueller, Emergency Vehicle Technician. Page 4 of 6 The committee recommends awarding the project to the highest rated proponent, Metz Fire & Rescue, Guelph, Ontario. The selection committee rated the proposal submissions on the following criteria: • Company Profile • References • Warranty — Base and Extended • Location of Dealer and Warranty Repair Shop/Parts Availability • Proposed Truck Specifications • Price STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The net cost for this Proposal (A), is fair and reasonable for a project of this scope and the upset limit is within the funding available (B) for this project. Funding for this project is included within the approved capital budget (2022-2024). The estimated surplus (D) will remain in the account to cover off any fluctuation on the exchange rate at time of delivery and will be used to fund future vehicles and equipment. P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire Aerial Units Estimated Cost for this Proposal Proposal P21-085 costs, including HST in US Dollars 5,980,746.42 Exchange Rate at November 18th, 2021 1.260 Proposal P21-085 costs, including HST converted to CAD 7,535,740.49 Dollars less: HST rebate (749,572.44) Net Cost Being Awarded 6,786,168.05 A Add: Projected Costs for Equipment to Outfit the Vehicles 681,021.74 Less: Projected disposal value on old vehicles (365,942.00) Total Estimated Cost 7,101,247.79 C Budget for this proposal Existing Capital Balance 1,238,593.94 Fire Fleet Capital Budget 2022 3,574,382.00 Fire Fleet Capital Budget 2023 1,598,048.00 Fire Fleet Capital Budget 2024 1,419,110.00 Total Budget 7,830,133.94 B Estimated Surplus/(Deficit) (B - C) 728,886.14 D Page 5of6 * The proposed pricing is in US dollars and has been converted to CAD dollars using the November 18, 2021 exchange rate of $1.26. The actual cost will be based on the exchange rate at time of delivery in each year. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department Page 6 of 6