Background:
The COVID Pandemic has created many irregularities in the automotive manufacturing sector and its processes, resulting in delays in orders and even unavailability of products in some cases. There are a total of 12 units in the existing By-Law Enforcement Division that are all at the end of their useful life. This request for approval to purchase is to replace eight (8) scheduled for replacement in 2020 as well as four (4) scheduled for replacement in 2021 in our By-Law Enforcement Division, from the City fleet.
Discussion:
To select the replacement units, a Tender will be issued by the Purchasing Department upon council approval. Submissions will be evaluated in accordance with the purchasing By-Law criteria to determine a successful, compliant vendor for the replacement of all twelve (12) units simultaneously.
Risk Analysis:
The existing units are all at the end of their useful life. Any delay in replacement may result in costly repairs to the unit and the By-Law Enforcement Division risk being able to provide the expected level of service.
Financial Matters:
The eight (8) units scheduled for replacement in 2020 have been approved by the Fleet Review Committee in consideration of forecasted fleet replacements and additions and by City Council during the 2020 capital budget process, CR B57/2020. We are now requesting pre-commitment of funds for the additional four (4) units previously scheduled for replacement in 2021 to allow for replacement of all twelve (12) vehicles simultaneously.
The total cost of the twelve (12) vehicles to be purchased under this tender is not to exceed $369,600.00 excluding HST, or $376,104.96 including non-refundable HST. The approved 2020 budget for the replacement of eight (8) units is $249,108.48 including non-refundable HST and the 2021 approved in principle budget for the replacement of the additional four (4) units is $126,996.48. The total budget allotted for replacement of all twelve (12) units is $376,104.96.
Administration requests Council approval for a pre-commitment of 2021 Fleet Replacement capital funds in the amount of $124,544.24 including non refundable HST for four (4) units scheduled to be replaced in the 2021 capital replacement project.
All Replacement costs and related funding will be charged to the 2020 Corporate Fleet Replacement Project 7201008 (8 units) and a new 2021 Corporate Fleet Replacement Project (4 units) that will be set up for use should Council approve this requested pre-commitment.