Report to: General Committee Date of Meeting: June 12, 2006

SUBJECT: Award of Tender 058-T-06 Supply and Delivery of Various Vehicles

PREPARED BY: Amit Sobti, Senior Buyer Ext 2239

Laurie Canning, Manager, Fleet and Supplies Ext 4896

RECOMMENDATION:

THAT Award of Tender 058-T-06 for the Supply and Delivery Various Vehicles be received;

AND THAT Award of Tender 058-T-06 for the Supply and Delivery of Various Vehicles be split and awarded to the following four (4) lowest acceptable bidders totalling $441,827.16 including PST and excluding GST as listed in Appendix “A” and summarized below:

· Donway Ford Sales Ltd. for 4 vehicles totalling $128,599.92

· Performance Chrysler Ltd. for 3 vehicles, totalling $65,330.28

· Maciver Dodge for 4 vehicles, totalling $108,201.96

· Giles Chevrolet for 4 vehicles, totalling $139,695.00

AND THAT funds for these vehicles are provided for in Fleet Operations’ 2006 Capital Budget Accounts as listed below under Financial Considerations;

AND THAT any remaining budget in Fleet Operations’ 2006 Capital Budget accounts Corporate Fleet Replacement Program will be applied to the remaining corporate fleet replacements as approved.

AND FURTHER THAT the replaced vehicles (#3377, 3352, 3357, 3359, 6140, 6092,

1268, 1269, 1270, 5144) will be retained by the Town and remain in the fleet inventory until the fall of 2006 at which time they will be sold in accordance with Purchasing By-law 2004-341, PART V Disposal of Personal Property and proceeds will be posted to account 890 890 9305 Proceeds from Sale of other Fixed Assets;

EXECUTIVE SUMMARY:

Not applicable

The 2006 Full Size Window Van, (Item 1) was not awarded to the lowest bidder as the unit did not meet specifications on the wheel base or alternator. The wheelbase is critical as this unit is being equipped as a command van for the new District Chief Position in Fire Services.

The Tender included an option to trade-in 7 vehicles. Only 1 vendor, Maciver Dodge, submitted a bid for this option. Maciver Dodge was awarded 4 vehicles only. This would leave the Town the option of trading-in 4 vehicles, leaving a balance of 3 vehicles. Staff concluded that it was in the interest of the Town to retain the 10 replacement vehicles in the fleet inventory until the fall of 2006 at which time they will be sold in accordance with Purchasing By-law 2004-341. Considering the age and condition of these vehicles, the additional depreciation between now and the fall should be minimal. In addition the retention of these vehicles will allow the Operations Department to return summer rental vehicles upon receipt of the new replacement units. The estimated savings on the summer vehicle rentals is approximately $845.00 per unit per month.

FINANCIAL CONSIDERATIONS:

The funds for this project are included in the following approved 2006 Capital budget accounts:

The following table is a summary of the financial considerations for this report:

Original Budget and Account #		$2,205,300		Various
Current Budget Available (unspent)		$2,205,300
Less Cost		($441,827)		Awarded to Donway Ford Sales Ltd., Performance Chrysler Ltd.,Maciver Dodge, Giles Chevrolet
Budget Remaining		$1,763,473
Year	Description		Account		Budget
2006	New Fleet-District Chief		057 5350 7104 005		$80,000
2006	Corp Fleet Replacement Program		057 6150 7112 005		$1,973,300
2006	New Fleet-Eng. Inspection		057 5350 7102 005		$34,000
2006	New Fleet-Parks		057 5350 7105 005		$25,000
2006	New Fleet-Eng Capital Wks		057 5350 7101 005		$26,000
2006	New Fleet-05 Operations		057 5350 7119 005		$67,000
	TOTAL				$2,205,300