Vancouver City Council |
ADMINISTRATIVE REPORT
Date: April 8, 2003
Author/Local:J. Kuznik/7882RTS NO. 03334
CC File No. 1805
Council: April 22, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services
Manager of Purchasing ServicesSUBJECT:
Direct Purchase of Asphalt Paver
RECOMMENDATION
That Council authorize the direct purchase of two (2) Blaw Knox PF3172 Asphalt Pavers from Terratech Equipment Inc. at a total cost of $740,024., plus the 7% Goods and Services Tax (less any municipal rebate received), PST and the Provincial Environmental Levy, subject to a contract satisfactory to the Director of Legal Services, with the source of funds coming from the Truck and Equipment Plant Account.
COUNCIL POLICY
The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest values based on quality, service and price.
Contracts with a value over $300,000 are referred to Council.
BACKGROUND
The City of Vancouver, through Streets Operations, utilizes three (3) paving machines in the maintenance and repair of City streets. Two (2) of the larger high production pavers have been engaged with city street resurfacing since they were put into service in 1994. The Blaw Knox unit has proven to be exceptionally versatile and productive. The other large paver has experienced a number of operational difficulties and has not performed as well. Both of the units have reached the end of their economic service life and must be replaced to avoid expensive unscheduled repairs and subsequent loss of productivity due to downtime.
DISCUSSION
At present, the City operates two different makes of the larger type of paving machines. Over a number of years, the Streets Branch has found the Blaw Knox paver to be safer, far more reliable and operationally suitable to working in our streets, given traffic density. Ongoing experience with these pavers has proven that the other paver is deficient of specific features to meet the City's operational requirements. Consequently, the other paver has now been relegated to a backup role. Although the Blaw Knox has recorded more than twice the working hours, the repair and maintenance costs for the Blaw Knox are virtually the same as those for the other machine. The Blaw Knox has become the workhorse unit, because it has the following critical features:
Operator Control Position
Due to City street conditions, there is a need for matching of joints and the pavement mats to curbs (which are not perfectly aligned). Much of this precise work is controlled through visual line of sight by the machine operator. This task was found to be safer, easier, more accurate and more ergonomically comfortable with the two (2) separate operator control positions - one on each side of the machine.
Direct Drive System
Since all the machine functions are hydraulically controlled and driven, it is critical that these systems are reliable. Belt, or chain to drive pumps are found to be unreliable especially during crew operation in the field which results in increased operational cost. Given this experience, it is highly recommended that only a direct drive system through a gear box be purchased.Hydraulic Extendable Augers
Operator controlled hydraulically extendable augers contained within the extendable portions of the screed permit uninterrupted paving operations. This affects the quality of the "pavement mat" and, more importantly, productivity due to the constantly changing street width and laneways. Without this feature, the operators would have to stop paving and manually extend the augers resulting in a loss of production.The City has researched the market, and to our knowledge, the Blaw Knox is the only paver that has all of the above features. In addition, an important aspect is staff training. The City of Vancouver has provided staff, both operators and mechanical technicians, Blaw Knox factory training courses. Machine operators and paving crews are well trained, competent and conversant with the machine. The Equipment Services technicians are familiar with the machines and can perform all necessary diagnostics, maintenance and repairs.
The City requested a quotation from Terratech Equipment Inc., the local dealer for Western Canada for one (1) or two (2) Blaw Knox PF3172 asphalt pavers. It is projected we need to replace one (1) paver in 2003 and one (1) paver in early 2004, to meet the City's continuous fleet operations.
Terratech quoted a price of $375,512 for delivery of one (1) unit this year. However, if the city places an order for one (1) paver now for delivery within two (2) months, and another by December 19, 2003 for delivery in early 2004, the cost of each unit will be $370,012.
Based on a 3% annual inflation rate, this would result in savings of $22,265 if the City commits to purchase both units now as shown in the table below:
Scenario
Blaw Knox PF3172
Asphalt PaversFirst Asphalt
PaverSecond Asphalt
PaverTotal Cost
1.
Terratech Quotation-
commitment of one unit$375,512(order placed in 2003, but not committing the 2nd unit)
$386,777($375,512+3% inflation rate) (order placed in 2004)
$762,289
2.
Terratech Quotation -
commitment of two units$370,012(order placed in 2003)
$370,012(if order placed by Dec. 19, 2003)
$740,024
Potential Savings when orders placed for both units in 2003
$ 22,265
FINANCIAL IMPLICATIONS
One of the existing units was scheduled to be replaced in 2002 and the second unit is due for replacement in 2004. Funds for the purchase of these units are provided from the Truck and Equipment Plant Account.
CONCLUSION
Accordingly, we recommend the direct purchase of two (2) Blaw Knox PF3172 Asphalt Paver's complete with electric screed heater, from Terratech Equipment Inc. at a total cost of $740,024 ($359,500 each, plus $10,512 each for a joint matcher), plus the 7% GST (less any municipal rebate received), PST and the Provincial Environmental Levy, without calling for formal tenders.
* * * * *