Council Report - Award of Tender – 2012 Fire Engine

Council Report

TO: Council DATE: December 8, 2011 FROM: Paul M Hurst, Fire Chief MEETING DATE: December 13, 2011

Award of Tender, 2012 Fire Engine

RECOMMENDATION:

THAT Council awards the contract for construction and delivery of one ULC, NFPA compliant Fire Engine, to View Royal, by Safetek Fire Apparatus of Coquitlam BC. Purchase price of the SPARTAN/SMEAL brand apparatus, excluding taxes, delivered to View Royal is $544,762 USD.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS: I concur with the recommendation.

DIRECTOR OF FINANCE COMMENTS: I concur with the recommendation.

PURPOSE OF REPORT:

To inform Council of the evaluation and recommendation to purchase a new, replacement fire engine.

BUDGET:

Council approved an expenditure of up to $650,000 CDN in the 2011 Five Year Financial Plan for the tender and delivery of one fire engine in the year 2012. Within this approved amount, it is expected that all loose firefighting equipment will be included within the $650,000.

Of this $650,000, $438,000 will be borrowed over a five year period, $112,000 will come from the Fire Department Equipment Reserve Fund, and $100,000 will come from the Casino Fund.

In May 2011, Council adopted the required short term capital borrowing bylaw in the amount of $438,000 to be repaid over a five year period at $87,600 per year.

TIME CRITICAL:

To ensure construction and payment in 2012 (build and delivery is 270 to 300 days from order), it is anticipated that with a December 2011 order, delivery will take place within the approved timeline.

BACKGROUND:

• In February 2011, requests for proposals were posted on BC Bid, in order to evaluate North American Fire Engine manufacturers. As a result, several proposals were received and evaluated, not only for compliance to specific needs, but also reflecting existing View Royal fleet specifications. A six month evaluation was conducted which reviewed all proposals. Based on these proposals, a detailed request for tender was drafted and posted on BC Bid for a period of 30 days, expiring November 24, 2011.

In anticipation of this purchase and the strong Canadian Dollar early in 2011, staff purchased $600,000 USD’s. With this offer the Town is able to purchase this Fire Engine at $572,000 CDN or $544,762 USD,

Thus, instead of the Fire Engine costing the Town $572,000 CDN it will actually cost the Town $539,423 CDN or a savings of $32,577.

For accounting purposes the exchange rate in effect the day we issue the USD cheque is the rate we will have to use. Thus, the book value of the savings may be different due to the recognition of the “profit or loss from foreign exchange”.

• Since 1957, as part of View Royals commitment to ensuring modern fire apparatus, and under recommendation by the Fire Underwriters Survey, the intent of this purchase is to replace a second due reserve, 25 year old fire engine.

Construction of fire apparatus is a specialized function, and although several proposals were received, the proposal and subsequent recommendation satisfied and exceeded our requirements. As well, the preferred manufacturer was the lowest bid received.

Loose firefighting equipment for the fire engine will be acquired, through a separate RFP, and within the approved budgetary amount.

PROJECT INFORMATION:

The Town received two responses to the Fire Engine Request for Proposal:

STAFF RECOMMENDATION:

That the Committee recommend to Council an award of the contract for construction and delivery of one ULC, NFPA compliant Fire Engine, to View Royal, by Safetek Fire Apparatus of Coquitlam BC. Purchase price of the SPARTAN/SMEAL brand apparatus, excluding taxes, delivered to View Royal is $544,762 USD.

SUBMITTED BY: P. Hurst, Fire Chief K. Anema, Chief Administrative Officer