HomeMy WebLinkAboutOPS 09-22 Report to
Executive Committee
Report Number: OPS 9-22
Date: April 4, 2022
From: Brian Duffield
Director, Operations
Subject: Garbage Packer with Crane – Replacement
- File: A-1440
Recommendation:
1. That Quotation Q2021-26 for the Supply & Delivery of One New Latest Model Year Side
Load Garbage Packer with Crane submitted by NexGen Municipal Inc. in the amount of
$236,255.14 (HST excluded) be accepted;
2. That the total gross project cost of $267,646.00 (HST included) and the total net project
cost of $241,023.00 (net of HST rebate) be approved;
3. That the Director, Finance & Treasurer be authorized to finance the total net project cost
of $241,023.00, from the Vehicle Replacement reserve fund;
4. That the budget available in project C10305.2107.01 in the amount of $175,000.00 be
increased to $241,023.00; and,
5. That the appropriate City of Pickering officials be authorized to take the necessary action
to give effect hereto.
Executive Summary: The Public Works Section within the Operations Department
currently utilizes two garbage packers for garbage removal within City parks and property. As
reflected in the 2021 Capital Budget, unit #762 was approved for replacement.
The quotation submitted by NexGen Municipal Inc. for the Supply & Delivery of One New
Latest Model Year Side Load Garbage Packer with Crane was the single respondent and has
received an acceptable score by the Evaluation Committee, meets the required specifications,
and is recommended for approval.
Request for Quotation Q2021-26 for the Supply & Delivery of One New Latest Model Year
Side Load Garbage Packer with Crane was issued on Monday, November 22, 2021, and
closed on December 14, 2021. One bid was received by NexGen Municipal Inc. in the amount
of $266,968.31 (HST included) and is recommended for approval. The total gross project cost
is estimated to be $267,646.00 and the total net project cost is estimated at $241,023.00 (net
of HST rebate).
OPS 09-22 April 4, 2022
Subject: Garbage Packer with Crane – Replacement Page 2
Financial Implications:
1. Quotation Amount
Quotation No.Q2021-26 $236,255.14
HST (13%)
Total Gross Tender Cost
30,713.17
$266,968.31
2. Estimated Project Costing Summary
Quotation No.Q2021-26 $236,255.00
Licensing 600.00
Total Cost $236,855.00
HST (13%) 30,791.00
Total Gross Project Costs $267,646.00
HST Rebate (11.24%) (26,623.00)
Total Net Project Costs $241,023.00
3. Approved Source of Funds - Operations Centre Capital Budget
Approved Code
Source of Funds
Budget
Required
C10305.2107.01 Vehicle Replacement $175,000.00 $241,023.00
Project Cost under (over) approved funds by ($66,023.00)
Section 11.02 of the Financial Control Policy (FIN 030) requires that where authority has been
given in the annual Capital Budget for a particular project, the Chief Administrative Officer, the
appropriate Department Head(s), and the Treasurer may jointly approve changes to such
authorized amounts provided that the total amount of the over expenditures: (a) does not
exceed the lesser of ten percent of the approved capital expenditure or $100,000.00; and, (b)
are offset by corresponding under expenditures in other approved capital expenditures.
Additionally, Section 11.05 requires that Current and Capital Budget expenditures in excess of
the limits established under Section 11.02 shall require the approval of the Treasurer, the Chief
Administrative Officer, and Council.
Discussion: Quotation Q2021-26 for the Supply & Delivery of One New Latest Model
Year Side Load Garbage Packer with Crane was posted on the City’s website on November
22, 2021. Only one company responded before the closing submission deadline of December
14, 2021. NexGen Municipal Inc. responded with a submitted price of $240,413.00 (net of HST
rebate and excluding the licensing fee) which is $65,413.00 above the budgeted amount of
$175,000.00.
OPS 09-22 April 4, 2022
Subject: Garbage Packer with Crane – Replacement Page 3
COVID-19 has had a negative global impact on the automotive industry worldwide and this
purchase is a prime example of inflated costs that we are now beginning to see in this market.
The purchase of the same unit in 2019 was $154,190.00. This represents a 51 percent
increase in a three-year period when typical inflation rates in the industry are approximately 2.2
percent per year.
The purchase of this garbage packer is required to replace unit #762, which is a ten-year-old
Ford F350 at the end of its economic life cycle. Two garbage packers are essential equipment
to allow Public Works to deliver the level of service needed for the efficient pick up and
disposal of garbage throughout the City. Although this tender is significantly above budget, the
replacement of unit #762 is essential as the existing vehicle is at end of life and no backup
vehicle is available should the existing vehicle breakdown or require extensive repairs.
Public Works’ staff recommend approval of additional funds to proceed with this purchase to
avoid the uncertainty of re-tendering, in an inflationary market, and ensure delivery time to
provide continuity of service to the residents of Pickering. The maintenance of parks and
property, and garbage collection and disposal in particular, is a high priority for residents and
staff that needs to be supported by two reliable and effective garbage packers.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Matt Currer, Fleet Operations Stan Karwowski, MBA, CPA, CMA
Director, Operations Director, Finance & Treasurer
Original Signed By:
Brian Duffield
Director, Operations
Original Signed By:
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer