Denis Leger, Commissioner of Transportation, Properties & Emergency Services

Transcription

1 CITY OF KINGSTON REPORT TO COUNCIL Report No.: TO: FROM: RESOURCE STAFF: Mayor and Members of Council Denis Leger, Commissioner of Transportation, Properties & Emergency Services Sheila Kidd, Director of Transportation Services Robert (Bud) Steele, Manager of Fleet DATE OF MEETING: SUBJECT: PARTNERSHIP WITH METROLINX FOR THE JOINT PROCUREMENT OF 8-METRETRANSIT BUSES EXECUTIVE SUMMARY: In 2008, the Ministry of Transportation (MTO), working with municipal transit managers in Ontario, developed a joint procurement process for the annual purchase of transit buses. This process, referred to as the Transit Procurement Initiative (TPI), is facilitated by Metrolinx (Greater Toronto Transportation Authority). Kingston Transit has been an active participant in the 12-metre bus procurement program since The program has been very successful involving over a dozen municipal properties providing benefits of both a technical specification nature as well as monetary gain. Metrolinx has now expanded the program to include a joint purchasing initiative for the smaller 8-metre buses. The purpose of this report is to seek Council approval to participate in the Metrolinx joint procurement process for the purchase of 8-metre buses going forward. RECOMMENDATION: THAT Council authorize the Mayor and Clerk to enter into a governance agreement with Metrolinx for the joint procurement of eight (8) meter transit replacement buses, subject to the review and satisfaction of the City s Legal Department; and THAT Council approve the appointment of Sheila Kidd, Director of Transportation Services, as the Metrolinx RFP Steering Committee member for the City of Kingston, and Robert Steele, Fleet Manager, as the alternate. Council Meeting 25 30

2 - Page 2 - AUTHORIZING SIGNATURES: Denis Leger, Commissioner of Transportation, Properties & Emergency Services Gerard Hunt, Chief Administrative Officer CONSULTATION WITH THE FOLLOWING COMMISSIONERS: Cynthia Beach, Sustainability & Growth Lanie Hurdle, Community Services Jim Keech, President and CEO, Utilities Kingston Council Meeting 25 31

3 - Page 3 - OPTIONS/DISCUSSION: The Transit Procurement Initiative (TPI) program participation is governed by an agreement between Metrolinx and the participating municipalities (the Governance Agreement ). The Governance Agreement sets out the roles and responsibilities of each of the parties with respect to the procurement process and subsequent acquisition of products/services. In addition to the administrative cost savings achieved through the centralization of the procurement function, under the current and proposed bus procurements, the TPI also funds an inspector and project engineer who collectively ensure the manufacturers compliance with the terms of the master agreement. The project engineer acts as the central point of contact for communications between the manufacturer and the municipal purchasers. There is no cost to participate in the TPI program. The objective of the TPI is to: a. Reduce the unit cost of buses by consolidating municipal transit bus orders to achieve the volumes required to attain the economies of scale b. Avoid costs by standardizing the Request for Proposal (RFP) documents including terms and conditions c. Avoid costs and reduce time associated with the bus procurement process allowing transit systems to focus on core competency d. Improve buying power and delivery schedules for transit systems e. Reduce uncertainty for manufacturers through longer production runs, predictability and performance-based specifications The chief benefit of joint procurement is in lowering the unit cost of buses. Small and mediumsized transit systems have more to gain from a joint process. This initiative will save money for Ontario taxpayers due to greater volumes of vehicles purchased from a common procurement compared to individual transit system procurements. In the initial procurement of 12-metre buses, 13 municipalities purchased 110 buses with an estimated cost savings of $15,000 per unit. The 8-metre procurement process was initiated in March of Currently, there are 18 signed participants in the program. Purchase orders have been issued for 22 units to date at an estimated savings of $7,000 per bus. For each RFP intended by Metrolinx, there will be a steering committee comprised of one representative from each the Ministry, Metrolinx, and each municipal purchaser under the relevant RFP. For each steering committee, the Ministry, Metrolinx, and each purchaser may also appoint one alternate member who can act on the member s behalf in their absence. The Director of Transportation Services and the Manager of Fleet are recommended for those positions. These positions must be confirmed by a by-law or resolution. On the recommendation of the steering committee, the Ministry will sign a master agreement with the successful proponent. The master agreement will specify the terms and conditions of the procurement for each completed RFP that will establish the supplier for each master agreement. Council Meeting 25 32

4 - Page 4 - The master agreement will specify the terms and conditions of the procurement and costing for the base bus as well as pricing for additional options that can be selected by purchasers. Each purchaser will enter into a municipal bus purchase agreement with the supplier directly that will provide details of delivery times for their respective transit buses, selected options specific to each purchaser, pricing, and other appropriate terms and conditions consistent with the terms of the relevant master agreement. To date, the following 18 Ontario Municipalities are involved in the 8-metre joint procurement process: The Corporation of the City of Barrie The Corporation of the City of Burlington The Corporation of the City of Cornwall The Regional Municipality of Durham The Corporation of the City of Elliott Lake Hagi Community Services for Independence Kingston Access Services The City of Hamilton The Corporation of the City of Kenora Lanark Transportation Association The Corporation of the City off North Bay The Corporation of the City of Oakville OC Transpo Corporation The Corporation of the City of Orillia The Corporation of the City of Sarnia The Corporation of the City of St. Thomas The Corporation of the City of Welland The Regional Municipality of York Metrolinx Transit Procurement Initiative (TPI) awarded the contract for 8-metre specialized buses for the purpose of joint procurement in March of The contracts will be managed by the Metrolinx Transit Procurement Initiative (TPI) and will last until March EXISTING POLICY/BY LAW: NOTICE PROVISIONS: ACCESSIBILITY CONSIDERATIONS: All bus purchases are low-floor and fully accessible. FINANCIAL CONSIDERATIONS: The recommendation in this report deals with the purchasing process and as such, there are no financial implications associated with the recommendations in this report. Council Meeting 25 33

5 - Page 5 - CONTACTS: Denis Leger, Commissioner of Corporate Services , Ext Sheila Kidd, Director of Corporate Asset Operations , Ext Robert (Bud) Steele Manager of Fleet , Ext OTHER CITY OF KINGSTON STAFF CONSULTED: EXHIBITS ATTACHED: Council Meeting 25 34