TO: Mayor and Members of Council
FROM: Ann-Marie Millson,
Manager of Fleet Services DATE: November 10, 2004
SUBJECT: Purchase of Two(2), Walk-Around Rescue Vehicles and One(1), Heavy Duty Walk-In Rescue Vehicle
RECOMMENDATIONS It is recommended that:
1. The tender of Thibault and Associates for the purchase of two(2), 2005 Walk-Around Rescue Vehicles in the amount of $341,628.00 (PST/GST exempt) be approved.
One unit will be privately funded through a donation to the Dresden Fire Department.
2. The tender of Thibault and Associates for the purchase of one(1), 2005 Heavy Duty Walk-In Rescue Vehicle in the amount of $190,620.00 (PST/GST exempt) be approved.
BACKGROUND
Each year, Fleet Services prepares a report to outline the replacement units for a specific time period for Council’s approval. On February 2, 2004 Council approved the list of equipment to be replaced for 2003 and 2004. The Orford and Wheatley units were in that report. The Dresden Rescue Unit has been added to this list but its replacement will be
Chatham-Kent Council Minutes from its meeting held on December 20, 2004 Page 85 of 133
funded by an anonymous donor. The existing Dresden unit was also funded initially through a private donation.
Unless there are issues or problems with the low tender or there has been a request for a follow-up report on a specific unit, no additional approval from Council is required.
COMMENTS
This report has been prepared for Council due to a cost over run and the required disqualification of the lowest bidder.
Fleet Services has worked with the volunteers at the Orford and Wheatley Fire Stations for more than a year. We have had a series of meetings to design the unit that would best serve the needs of each community. The specified units tendered and being
recommended in this report are the result of this series of user group meetings.
The company that is being recommended in this report is a new supplier to the Ontario market. Before proceeding with the recommendation to approve the purchases from this company and in order to be able to become comfortable with the new vendor, a plant tour was requested.
Thibault and Associates arranged for the Manager of Fleet Services, two representatives from each fire station and the Assistant Fire Chief to tour the manufacturing plant, Lafleur Industries in Sorel, Quebec. This allowed municipal representatives to evaluate the quality of product and to meet with company officials.
The trip also allowed Chatham-Kent officials the opportunity to visit surrounding fire
stations that had purchased this style of rescue vehicle and interview the recipients on how their current unit is performing. We were able to view a unit that was 30 years old and still in service as well as units that were five years old and two years old. As a result of this tour the group felt comfortable with proceeding with the recommendations in this report.
The tender results are as follows:
Walk-Around Rescue Vehicle
Company Year, Make & Model
Price Per Vehicle (PST & GST Exempt) Asphodel Fire
Trucks Ltd.
2003 GMC 8500 with an Asphodel Body
$157,316.33 Thibault & Associates
2005 International 4400 Cab & Chassis
with a Lafleur Body $170,814.00
Dependable Truck and Tank Ltd.
2005 Freightliner M2-106 Cab and Chassis with
Dependable Body $183,115.00
Dependable Truck and Tank Ltd.
2005 International 4400 Cab & Chassis with
Dependable Body $176,115.00
Fort Garry Fire Trucks
2005 International 4400 Cab and Chassis with
Fort Garry Body $190,343.00
BMB Engine Company
2005 International 4400 Cab and Chassis with
BMB Body $190,850.00
Darch Fire
2005 Freightliner M2 Cab and Chassis with
American Lafrance Body $218,128.53
In this tender, Asphodel Fire Trucks Ltd. was disqualified since they did not meet a number of the minimum specifications requested.
Heavy Duty Walk-In Rescue Vehicle
Chatham-Kent Council Minutes from its meeting held on December 20, 2004 Page 86 of 133
Company Year, Make & Model
Price Per Vehicle
2005 Freightliner M2-106 with a
Dependable Body $189,895.00
Dependable Truck and Tank Ltd.
2005 International 4400 with a Dependable
Body $182,895.00
Thibault & Associates
2005 International 4400 with a Lafleur
Body $190,620.00
BMB Engine Company
2005 International 4400 with a BMB Body
$199,600.00 Darch Fire
2005 Freightliner M2-106 with a Lafrance
Body $205,642.26
Fort Garry Fire Trucks
2005 International 4400 with a
Fort Garry Body $219,545.00
As with the previous vehicle, Asphodel Fire Trucks Ltd. and Dependable Truck and Tank Ltd. were disqualified from this tender as they failed to meet a number of the minimum specifications requested.
Throughout the process volunteers dedicated many hours outlining, in detail, the style of unit they wish to have delivered to their Fire Station and to remain in service for 20 years.
Stock units or units that could not be built to the exact specifications in the tender documents have been recommended for rejection.
There is no lease versus purchase option for these vehicles.
COMMUNITY STRATEGIC PLAN
The recommendations in this report support the following objectives and strategic directions:
A: Health – Providing a safe, caring and healthy environment A6: Foster a safe and caring community
Expected Results
• Decrease in loss of property due to fire
• Reduction in accidents (home, workplace, traffic, etc.)
The recommendations will not adversely impact on the remainder of the Community Strategic Plan.
CONSULTATION
This company is new to Ontario and as such the user group committee took an active role in researching the company’s past history with regard to service and product reliability.
The team that reviewed Lafleur Industries included:
1. Manager of Fleet Services
2. Orford Station Chief and one Volunteer Fireman 3. Wheatley Station Chief and one Volunteer Fireman 4. Dresden Station Captain and one Volunteer Fireman 5. Assistant Fire Chief
This report is supported by all personnel involved in this tender
Chatham-Kent Council Minutes from its meeting held on December 20, 2004 Page 87 of 133
FINANCIAL IMPLICATIONS
Remaining 2003/2004 Reserve Fund $ 2,815,445.80
Commitment through this Report (PST/GST Exempt) $ 361,434.00
Remaining 2003/2004 Reserve Fund $ 2,454,011.80
The amount shown as the commitment through this report is based on the purchase of one walk-around rescue vehicle and one heavy duty walk-in rescue vehicle. The
second walk-around rescue vehicle in the amount of $170,814 (PST/GST exempt) is being fully funded through the private donation.
The original replacement cost for the Orford unit was estimated to be $150,000.00 and the Wheatley unit was $145,000.00. This estimate was established in the 1999 Business Plan and will have to be revisited at the next review of capital costs. The costs have increased due to inflation and the escalating cost of steel over the last year.
Prepared by: Reviewed by:
____________________________ __________________________
Ann-Marie Millson Tim Dick, C.E.T.
Manager, Fleet Services Director,
Drainage, Environmental & Fleet Division
Reviewed by: Reviewed by:
____________________________ ___________________
Leo Denys, P.Eng. Joe G. Pavelka, P. Eng.
General Manager Chief Administrative Officer Infrastructure and Engineering Services
c. Bob Crawford, Fire Chief Rick Arnel, Assistant Fire Chief George Parry, Orford Station Chief Brad Tuckwell, Dresden Station Ch ief Robert Harris, Wheatley Station Chief
Greg Keating, General Manager, Community & Development Services Attachment: none
RTC/Infrastructure & Environmental Services/I.&E.S./2004/2529 Rescue Units.doc
Councillor Herman moved, Councillor Gordon seconded:
“That:
1. The tender of Thibault and Associates for the purchase of two(2), 2005 Walk-Around Rescue Vehicles in the amount of $341,628.00 (PST/GST exempt) be approved. One unit will be privately funded through a donation to the
Dresden Fire Department.
2. The tender of Thibault and Associates for the purchase of one (1), 2005 Heavy Duty Walk-In Rescue Vehicle in the amount of $190,620.00 (PST/GST exempt) be approved.”
In response to a question from Councillor Arbour, the Manager, Fleet Services explained the units being replaced. The replacements are not custom in the fact that any company could build them, but they are custom to the departmental needs. The Orford unit is very similar to what was there.
Chatham-Kent Council Minutes from its meeting held on December 20, 2004 Page 88 of 133
Councillor Faas noted that one of the vehicles is being donated to the Dresden fire department. He asked if Dresden and area would be receiving the full benefit of that vehicle. The General Manager, Corporate Services advised that under the current taxation policies and budget policies, it would not be. The costs are allocated of full time fire
protection to Wallaceburg and Chatham. For all volunteer stations, that cost is charged on an average tax rate to all former municipalities other than Wallaceburg and Chatham. No, it would not be. It would be shared amongst all former entities receiving volunteer coverage.
This is the benefit of the donation. Councillor Faas noted that in the true scope of things, Dresden would be purchasing a portion of those trucks. He expressed concern of
deterring those who donate specifically to an area.
Councillor Faas moved an Amendment, Councillor Weaver seconded:
”That:
1. the tender of Thibault and Associates for the purchase of two(2), 2005 Walk-Around Rescue Vehicles in the amount of $341,628.00 (PST/GST exempt) be approved. One unit will be privately funded through a donation to the
Dresden Fire Department.
2. the tender of Thibault and Associates for the purchase of one (1), 2005 Heavy Duty Walk-In Rescue Vehicle in the amount of $190,620.00 (PST/GST exempt) be approved.
3. Dresden receive the full benefit of this donation.”
The General Manager, Corporate Services advised that in this situation it could be done as fire is an area rated service. From an administrative point of view, this route could lead to all sorts of calculations and administrative work as it leads to area rating all donations.
This is a very generous donation. The effect of Councillor Faas donation on the average tax bill in Dresden is $10 to $12 per household. This is a precedent situation causing future technical issues.
The Chief Administrative Officer appreciated the suggestion; however, it does go against Council’s action in the past. This would be precedent setting and offset any of the
donations thus far.
Councillor Faas suggested that this has never been done as it has never been requested before. No one has ever requested that a donation be granted to a specific area. He expressed fear of discouraging future donations.
The General Manager, Corporate Services noted that there is a fine line between area rating a donation to a specific area versus moving towards the greater good of Chatham-Kent as a whole. He noted that this is Council’s decision. The General Manager,
Corporate Services referred to past incidents such as the Erieau rescue boat. Although less dollars, it was a greater impact on assessment and taxes. This could inhibit the Municipality of Chatham-Kent’s ability to fundraise or solicit major donations. However, this is a policy decision by Council.
Councillor Weaver expressed his support. Although it creates challenges, the Municipality should do what it can to encourage donations.
The Fire Chief explained that vehicles are moved around as required. If there is an expectation that anything donated to a community’s fire department would only be used at that location, it is not so. He used a thermal imaging camera as an example. Equipment
Chatham-Kent Council Minutes from its meeting held on December 20, 2004 Page 89 of 133
and resources are moved around and used as required. Councillor Faas noted that this is not his concern. His concern is the financial impact this purchase has. Three trucks are being purchased. The Manager, Fleet Services advised that this vehicle would have been replaced from lifecycle in the next few years and therefore, the residents of Chatham-Kent would have been paying for this. It is still subject to the donator’s approval and permission that they accept the tender. The donation may be jeopardized by adding these stipulations.
Councillor Fluker felt that this places Council in a difficult position in regard to donations.
A Council member asked that the question be divided.
There was further discussion in relation to donations and area rating of donations.
Councillor Brown sought clarification of delivery of the trucks.
The Mayor put recommendation #1.
Motion Carried The Mayor put the recommendation #2.
Motion Carried The Mayor put the recommendation #3.
Motion Failed
(b) Award of Contract No. 05-158 For the Provision of Public Accessible Transit Service in the Community of Chatham
MUNICIPALITY OF CHATHAM-KENT
INFRASTRUCTURE AND ENGINEERING SERVICES