THAT the Contracts for the purchase of vehicles BE AWARDED to the following dealerships:
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1 TO: FROM: Chair and Members Corporate and Emergency Services Committee Nancy Cox-Godfrey Manager of Purchasing and Support Services DATE: March 19, 2014 SUBJECT: Fleet Tender Nos to REPORT NO: CES RECOMMENDATION THAT the Contracts for the purchase of vehicles BE AWARDED to the following dealerships: To Hyundai of Muskoka,, Contract No for the purchase of Three (3) 2014 Hyundai Accent 4 Door GL compact cars at a cost not to exceed $18, each before trade-ins and HST; To, Contract No for the purchase of Two (2) 2014 Ford F150 Half-Ton trucks at a cost not to exceed $24, plus extended warranty of $ per vehicle before trade-ins and HST; To Newmarket Toyota, Newmarket, Contract No for the purchase of Three (3) 2014 Toyota Tundra trucks at a cost not to exceed $26, plus extended warranty of $1, per vehicle before trade-ins and HST; To, Buick,, Contract No for the purchase of Three (3) 2014 Chevrolet Silverado 1500 Double Cab trucks at a cost not to exceed $28, plus extended warranty of $2, per vehicle before trade-ins and HST; To, Contract Nos , and for the purchase of: - One (1) 2015 Ford F250 Crew Cab truck at a cost not to exceed $39, plus extended warranty of $2, HST; - Two (2) 2015 Ford F250 trucks at a cost not to exceed $31, plus extended warranty of $2, per vehicle before trade-ins and HST, and; - One (1) 2014 Ford E250 Cargo Van at a cost not to exceed $28, plus extended warranty of $2, per vehicle before HST. Page 1
2 ORIGIN To, Contract Nos , and for the purchase of: - One (1) 2500 Crew Cab truck at a cost not to exceed $37, plus extended warranty of $1, HST; - One (1) 3500 Crew Cab and Chassis truck at a cost not to exceed $32, plus extended warranty of $2, HST; - One (1) 3500 truck not to exceed $37, plus the extended warranty of $1, HST; To, Contract No for the 4-month rental of One (1) 2014 Dodge Grand Caravan SXT at a monthly cost not to exceed $1,000 plus HST, and; To New Horizon Discount Car and Truck Rental, Toronto/, Contract No for a minimum 4-month Seasonal Rental of up to Nine (9) Dodge Ram 1500 trucks (or equivalent) over a three-year term at a cost not to exceed $ per vehicle per month plus HST. Annual tendering process required for the acquisition and rental of vehicles for 2014, as outlined in the 2014 Approved Tax Supported Capital Budget. The award of this tender represents the total number of replacement vehicles budgeted for under Project # Regular Fleet Acquisitions ANALYSIS On Thursday, February 20, 2014, there were tender openings in which bidders were asked to provide costs on purchasing with standard warranty plans. Bidders were also asked to provide optional five-year extended warranty and full maintenance plans for consideration. The extended warranties will be required as part of the capital purchase but the maintenance option will be considered and negotiated at the time of signing and will be financed as part of the fleet operating budget. Tenders were received from 11 dealers, representing 60 bids over the twelve tenders. The results are attached as Schedule 1 of this report. The bidders denoted in bold type are the lowest bids to meet the specifications. For corporate fleet vehicles, purchasing vehicles outright or entering into a purchase payment plan are the only two financial options still available. Although leasing may have again become available to the public in general, long-term corporate leasing is not available. The District s fleet continues to be evaluated to reduce its size and cost by identifying specific vehicles and equipment whose continued ownership is not warranted by their current level of usage or design. The 2014 evaluation was summarized in Report No. CES and approved by Muskoka District Council on October 21, The initial budget evaluation of the 2014 fleet resulted in the deferral of ten vehicles to Muskoka s 2014 complement for short-term vehicles, licensed vehicles and unlicensed equipment will be increased by one minivan rental for Community Services and one purchased utility van for use in Facilities Services. Although tendered for purchase, a half ton 4x4 Extended Cab truck has been removed as the District is in on-going road maintenance negotiations with the Town of. There are a total of 102 fleet vehicles (not including trailers and boats) in the District s complement in This represents a total reduction of 10 owned or rented vehicles and equipment since the new policy standard was implemented in Page 2
3 In accordance with Fleet Policy AD.07 and the subject of Report No. CES , the vehicles that are being replaced this year (excluding the rentals) meet either the required life cycle or minimum annual mileage utilization limits. Due to high mileage, all of these vehicles are now experiencing high maintenance and repair costs. The following table summarizes the vehicles being replaced and added. Tendered Vehicles Model Year being Traded Mileage in kilometres as of Mar 3/ Complement 2014 Replacement Pertinent Contract No. Compact Car Office Float/PW Admin Unit ,725 Office Float/PW Admin Unit ,036 Office Float/PW Admin Unit ,336 ½ Ton Trucks Water & Sewer Unit ,438 Traffic Unit ,138 ½ Ton Trucks Bala Water & Sewer Unit ,146 Hauled Sewage Unit ,033 Solid Waste Landfill Unit ,497 ½ Ton Extended Cab Truck Road Maintenance Patrol Unit ,894 Road Maintenance Patrol Unit ,632 Road Maintenance Patrol Unit ,935 ¾ Ton Full 4-Door Truck with Cap Traffic Unit ,897 ¾ Ton Trucks Solid Waste Landfill Unit ,280 Solid Waste Landfill Unit ,496 ¾ Ton Extended Cab Truck Hauled Sewage Unit ,198 ¾ Ton 4x4 Full 4-Door Cab & Chassis Gravenhurst Water & Sewer Unit ,280 1 Ton Truck Solid Waste Transfer Stations Unit ,615 ¾ Ton Utility Van No trade TOTAL Difference for 2014 Acquisition FINANCIAL CONSIDERATIONS The Approved 2014 Tax Supported Capital Budget for licensed vehicles is $498,000 under Project # for vehicle replacements. Based on the tender results, the total purchase price is $413,537 (including the trade-ins at $129,300 and the District s percentage of the HST at $7,152) financed from the Fleet Capital Reserve. Page 3
4 The operating impact for 2014 in terms of committed annual rental payments will be increased when compared to the rental arrangement in This is due to the inclusion of the one-time minivan pilot project in Community Services resulting in a total annualized increase of $1,628 [$34,975 (2013) - $36,603 (2014)]. COMMUNICATIONS All fleet tenders were posted on the District s website. All dealerships in Muskoka, along with those who bid on last year s fleet tenders, were sent an inviting them to bid for 2014 and to access the tenders from the District s website. After the tenders were opened, the unofficial results were posted on the District website. Notification of the decision of the Corporate and Emergency Services Committee to successful bidders will be by and an acceptance letter will also be mailed. Unsuccessful bidders will be mailed letters advising them of the results. STRATEGIC PRIORITIES This report supports the following goals as outlined in Muskoka s Strategic Priorities: 2. Build financial strength and demonstrate fiscal responsibility and accountability through the budget process, public reporting of budget results, the corporate credit rating and debt reduction. 5. Reduce the corporate carbon footprint by developing implementation plans and targets to reduce carbon dioxide and other greenhouse gas emissions caused directly and indirectly by Muskoka operations. Respectfully submitted, Nancy Cox-Godfrey Manager of Purchasing and Support Services Julie Stevens CPA, CA Commissioner of Finance and Corporate Services Page 4
5 CES , Schedule Fleet Tender Results Compact Car Up to Three (3) Units Purchase Estimate - $19,500/vehicle Warranty Armstrong Chrysler Dodge, 2014 Dodge Dart SXT $21,542.00/vehicle $1,105.00/vehicle c. $3, Ford Fiesta Does not meet the specifications requested 2014 Ford Focus a. $6, $19,052.00/vehicle $460.00/vehicle c. $4, Festing Toyota, 2014 Toyota Corolla LE Does not meet the on standard items that was requested Buick, 2014 Chevrolet Cruise LT a. $4, b. $4, $18,026.00/vehicle $787.00/vehicle c. $3, Hyundai of Muskoka, Vehicle Hyundai Accent 5 Door GL $18,365.40/vehicle $0.00 No Additional Warranty Required c. $3, Hyundai of Muskoka, Vehicle Hyundai Elantra 4 Door GL $20,074.40/vehicle $0.00 No Additional Warranty Required c. $3, Page 5
6 Hyundai of Muskoka, Vehicle Hyundai Accent 4 Door GL $18,129.40/vehicle $0.00 No Additional Warranty Required c. $3, Hyundai of Muskoka, Vehicle Hyundai Elantra GT 5 Door GL c. $3, $21,074.40/vehicle $0.00 No Additional Warranty Required Jason Armstrong Honda, Vehicle Honda Civic LX Sedan c. $3, $21,114.10/vehicle $818.00/vehicle Jason Armstrong Honda, Vehicle Honda Fit LX 4 Door Hatchback Does not meet the specifications requested Newmarket Toyota, Newmarket 2014 Toyota Corolla b. $3, $18,305.00/vehicle $2,350.00/vehicle c. $3, Page 6
7 Half-Ton Truck Up to Two (2) Units Purchase Estimate - $22,000/vehicle Warranty Armstrong Chrysler Dodge, 1500 a. $4, b. $6, $29,306.00/vehicle $1,480.00/vehicle 2014 Ford F150 a. $3, b. $8, $24,507.00/vehicle $2,070.00/vehicle 2014 Ford F150 a. $4, b. $6, $24,997.00/vehicle $ /vehicle Buick, 2014 Chevrolet Silverado 1500 a. $4, b. $5, $25,131.00/vehicle $1,787.00/vehicle Hopper Buick GMC, North Bay 2014 GMC Sierra 1500 a. $3, b. $3, $24,916.43/vehicle $2,737.00/vehicle Newmarket Toyota, Newmarket 2014 Toyota Tundra a. $3, b. $7, $25,475.00/vehicle $1,785/vehicle Page 7
8 Half-Ton Truck Up to Three (3) Units Purchase Estimate - $22,100/vehicle Warranty Armstrong Chrysler Dodge, 1500 a. $7, b. $6, $32,579.00/vehicle $1,695.00/vehicle c. $7, Ford F150 a. $7, b. $6, $28,008.00/vehicle $2,070.00/vehicle c. $5, Ford F150 a. $6, b. $5, $28,946.00/vehicle $1,445.00/vehicle c. $6, Buick, 2014 Chevrolet Silverado 1500 a. $6, b. $6, c. $7, $28,558.00/vehicle $2,185.00/vehicle Hopper Buick GMC, North Bay 2014 GMC Sierra 1500 b. $5, $28,448.43/vehicle $3,182.00/vehicle c. $5, Newmarket Toyota, Newmarket 2014 Toyota Tundra a. $5, b. $5, $26,448.00/vehicle. $1,785.00/vehicle c. $4, Page 8
9 Half-Ton Extended Cab Truck Up to Four (4) Units* Purchase Estimate - $29,500/vehicle Warranty Armstrong Chrysler Dodge, 1500 Quad Cab a. $10, b. $10, c. $10, $30,515.00/vehicle $1,695.00/vehicle 2014 Ford F150 Supercab a. $ 8, b. $ 9, c. $ 6, $29,769.00/vehicle $2,070.00/vehicle 2014 Ford 2014 Ford F150 Supercab a. $ 9, b. $10, c. $ 7, $30,796.00/vehicle $1,445.00/vehicle Buick, 2014 Chevrolet Silverado 1500 Double Cab a. $ 8, b. $ 9, c. $ 7, $28,250.00/vehicle $2,182.00/vehicle Hopper Buick GMC, North Bay 2014 GMC Sierra 1500 Double Cab a. $ 7, b. $ 8, c. $ 5, $28,757.43/vehicle $3,182.00/vehicle Newmarket Toyota, Newmarket 2014 Toyota Tundra Double Cab a. $ 7, b. $ 8, c. $ 5, $32,648.00/vehicle $1,785.00/vehicle * Due to on-going negotiations with the Town of, only three trucks are being purchased. Page 9
10 ¾ Ton Truck with 4 Full Doors and Cap One (1) Unit Purchase Estimate - $37, Warranty 2015 Ford F250 Crew Cab $7, $39, $2, Buick, 2015 Ford F250 Crew Cab 2015 Chevrolet Silverado 2500 Crew Cab $8, $42, $1, $6, $39,200,00 $2, ¾ Ton Truck Up to Two (2) Unit Purchase Estimate - $32,000/vehicle Warranty 2500 a. $13, b. $14, $36,201.00/vehicle $2,295.00/vehicle 2015 Ford F250 a. $9, b. $10, $31,908.00/vehicle $2,235.00/vehicle 2015 Ford F250 a. $8, b. $12, $33,715.00/vehicle $1,505.00/vehicle Buick, 2015 Chevrolet Silverado 2500 a. $10, b. $11, $34,200.00/vehicle $2,500.00/vehicle Page 10
11 ¾ Ton Extended Cab Truck One (1) Unit Purchase Estimate - $37, warranty Buick, 2500 Crew Cab 2015 Ford F250 Supercab 2015 Ford F250 Supercab 2015 Chevrolet Silverado 2500 Double Cab $12, $37, $1, $ 8, $34, $2, $ 6, $36, $1, $ 7, $35, $2, ¾ Ton 4 Full Door Cab and Chassis Truck One (1) Unit Purchase Estimate - $49,000 (including new utility box) warranty 3500 Crew Cab & Chassis 2015 Ford F350 Super Crew Cab & Chassis 2015 Ford F350 Super Crew Cab & Chassis $10, $32, $2, $12, $35, $2, $ 7, $35, $1, Buick, 2015 Chevrolet Silverado 2500 Crew Cab & Chassis $ 7, $33, $2, Page 11
12 1 Ton Truck One (1) Unit Purchase Estimate - $40, warranty Buick, Ford F Ford F Chevrolet Silverado 3500 $15, $37, $1, $11, $34, $1, $10, $35, $1, $ 7, $36, $1, /4 Ton Utility Van One (1) Unit Purchase Estimate - $32, warranty, Buick, Promaster 2500 Cargo Van 2014 Ford E250 Cargo Van 2014 Ford E250 Cargo Van 2014 Chevrolet Express 2500 Cargo Van $37, $1, $28, $2, $31, $1, $30, $1, Page 12
13 4-Month Seasonal Rental for 3-Year term of Half-Ton Trucks Up to Nine (9) Units Rental Estimate - $900.00/month/unit Price/Unit/Month including all Warranties, Maintenance Agreement but no Excess Mileage Rate per Kilometer 1500 $1, $0.15/km Enterprise Holding, Scarborough 2014 Ford F150 $ $0.00/km No excess limit 2014 Ford F150 $ $0.15/km New Horizon Discount Car & Truck Rental, Toronto 2014 Dodge Ram 1500 $ $0.15/km 4-Month Seasonal Rental for 1-Year term of Minivan One (1) Unit Rental Estimate - $1,000.00/month Price/Month including all Warranties, Maintenance Agreement but no Excess Mileage Rate per Kilometer Enterprise Holding, Scarborough New Horizon Discount Car and Truck Rental, Toronto 2014 Dodge Grand Caravan SXT 2014 Chrysler Town & Country 2014 Dodge Grand Caravan $1, $0.15/km $1, $0.20/km $1, $0.15/km Page 13
c. Two (2) 2010 Chevrolet Silverado X4 Trucks at a cost not to exceed $21, per unit before trade-in value plus taxes;
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