ERIN – Council here has approved the purchase of a new plow truck for $365,000, slightly over what was budgeted for in the 2022 capital budget.
In a July 7 meeting, council received a report regarding the purchase of a 2022 Mack tandem axle plow truck, directing staff to accept the quote received from Viking Cives Ltd. for a total of $365,000 excluding HST.
The report, prepared by the town’s director of infrastructure services Nick Colucci, outlined that while preparing to tender, staff became aware of a 2022 plow truck that was available.
“This came to our attention when we were contacting suppliers, getting specifications and this is available as a result of a cancelled order from another municipality,” Colucci explained.
The 2022 capital budget included $330,000 set aside for the purchase of a new tandem axle plow truck, however, the bid received from Viking Cives Ltd. is above the approved amount.
“So staff are proposing to purchase this truck at the rate of $365,000, which is actually $35,000 above the amount budgeted, and we’re proposing to fund that short fall from our equipment reserve,” Colucci said.
Councillor Michael Robins questioned the hurry to purchase the truck, asking why, since it’s over budget, isn’t staff seeking out other bids.
“This may be convenient but $35,000 is $35,000,” he said. “We don’t have a true test of what the marketplace is, so I’d like to understand why we are not going out for other tenders, unless the window of opportunity here is very quick and we discover that the market value is higher than $365,000.
“We just don’t have any tests of that so I’m quite uncomfortable about approving this without any other bids,” he added.
Colucci explained that staff made inquiries with surrounding municipalities and the rates for their purchase of new trucks are higher than what was being presented to council, noting trucks recently purchased by the county were being priced in at the $500,000 range.
“Based on our research this is a good market price, and the other reason is that if we went through a tender process it would be a 12-month delivery so we’re not getting the truck this year, we’re getting it next year,” he explained.
He noted the town is still waiting on a truck that staff ordered last spring that’s still not ready due to supply chain issues.
“There’s two positives [here],” Colucci said. “One is that we get it right away and the second is I think that based on the market, this is actually a good price, and our tendered price might even come in higher than that.”
Mayor Allan Alls, who’s on the county’s roads committee, confirmed the pricing on the plow truck is under what the county is paying for its trucks.
“I also, having been here for eight years, know how desperate the staff are for some decent equipment over here,” he said, adding “I do believe this is a good opportunity to move ahead with this.”
Agreeing with Alls, councillor Rob Smith added, “even to have a truck available, this is the time to grab it.
“If we say no, it’s gone,” he said. “If we’ve already been waiting 15 months for a truck then we might be waiting a little longer.”
Councillor Jamie Cheyne said that while it’s over the budget, based on current pricing and inflation, he supported going ahead with the purchase.
Council directed staff to utilize the capital reserve to fund the excess amount approved in the 2022 capital budget for the purchase.
