Vancouver City Council |
ADMINISTRATIVE REPORT
Date: April 16, 2003
Author/Local:JKuznik/8-7882RTS NO. 03345
CC File No. 1801
Meeting Date: May 13, 2003
TO:
Vancouver City Council
FROM:
General Manager of Engineering Services
Manager of Purchasing ServicesSUBJECT:
Standardization and Direct Purchases of Twenty-Four (24) Swenson Model EV100 Slip-In Salters
RECOMMENDATION
A. THAT Council authorize the standardization of the City of Vancouver, slip-in salters to Swenson Model EV100, based on overall equipment performance, staff familiarity and logistics support.
B. THAT Council approve waiving the normal bidding process and authorize the Manager of Materials Management to acquire by direct purchase, twenty-four (24) Swenson Model EV100 slip-in salters at a total cost of $410,262 plus the P.S.T. and the 7% G.S.T. (Less any municipal rebate received).
POLICY
The policy of Council is to issue a tender or RFP for contracts in excess of $100,000. Contracts with a value over $300,000 are referred to Council.
PURPOSE
The purpose of this report is to request authority from Council to standardize the City's slip-in salter and approve the direct purchase of Swenson Model EV100 from Del Equipment and as a consequence of this decision, to waive the normal bidding process.
BACKGROUND
There are presently thirty-four (34) slip-in salter units in the City's Snow Fighting Fleet. These salter units "slip-in" to the back of the city dump truck fleet to salt streets during the winter. For an effective response, these units are strategically located in a number of City locations in accordance with the annual Snow and Ice Control Plan. In 1996, through a public tender offering the City replaced six (6) units with the Swenson Model EV100 slip-in salter and then in 2001 an additional four (4) units were replaced with the Swenson Model EV100. There are twelve (12)units due for replacement from the 2002 replacement program and a further twelve (12) are scheduled for replacement in 2003. The twenty-four (24) units being replaced were originally placed into service from 1980 through to 1989.
DISCUSSION
Snow removal is classified as an emergency situation during the fall/winter season. In order to respond to snow emergencies efficiently and safely, proven reliable snow removal equipment is required. The City's snow removal equipment must be fully operational during the five month fall/winter season. For this reason, the City is very cautious about purchasing units that have no history with the City. The consequence of unreliable performance can be very severe. In the past six snow fighting seasons, the Swenson Model EV-100 slip-in salters have proven to provide far greater reliability than the other three makes in the fleet.
The 24 units scheduled for the 2002/3 replacement years have reached the end of their economic lives. Engineering Services wishes to standardize on the Swenson Model EV-100 slip-in salters based on the reliable past history of these salters in the City's snow fighting fleet.
Additional reasons to standardize on the Swenson Model EV100 slip-in salter are as follows:
(1) The City only has to stock one make of parts and the parts can be installed on any of the units;
(2) Maintenance personnel have years of knowledge and experience with existing Swenson units;
(3) The operators are very familiar with these units; therefore, additional operator training is not required.
FINANCIAL IMPLICATIONS
A quotation was requested and Del Equipment, the sole distributor of Swenson in B.C., offered to supply twenty-four (24) Swenson Model EV100 slip-in salters consisting of several sizes, at $410,262. Funding for this purchase is provided from the 2002/2003 Truck and Equipment Plant Account. Staff has reviewed the prices quoted relative to inflation and confirm this purchase represents best value to the City.
CONCLUSION
Accordingly, we recommend that the normal bidding process be waived and that Council authorize the direct purchase of twenty-four (24) Swenson Model EV100 slip-in salters consisting of several sizes, at a net cost of $410,262 plus the 7% GST (less any municipal rebate received) and PST (where applicable), subject to a contract satisfactory to the Director of Legal Services, with the source of funds from the Truck and Equipment Plant Account.
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