HomeMy WebLinkAboutOPS 27-23Report to Council
Report Number: OPS 27-23
Date: November 27, 2023
From: Brian Duffield
Director, Operations
Subject: Additional Costs for Spraying Liquid Calcium Magnesium Blend for Dust
Suppression
- File: A-1440
Recommendation:
1. That Report OPS 27-23 regarding Additional Costs for Spraying Liquid Calcium
Magnesium Blend for Dust Suppression be received;
2. That Council authorize the Director, Finance & Treasurer to finance the excess costs of
approximately $115,000.00 (net of HST) from Property Taxes; and,
3. That the appropriate City of Pickering officials be authorized to take the necessary action
to give effect hereto.
Executive Summary: The City has an obligation to ensure safe road conditions on
unpaved roads. Dust suppression is one of the many necessary elements to ensure safe
conditions on unpaved roads. The tendered price for the contract in 2023 had an unanticipated
35 percent increase cost over the previous contract cost. That increase cost and the extremely
prolonged dry spell coupled with the traffic diversion from Lakeridge led to a significant overrun
on the 2023 Current Budget.
The actual dust suppression activities in 2023 resulted in a $115,000.00 overrun and staff are
requesting Council approval for excess amount of expenditure over the Council approved 2023
budget. The cost escalation of the new contract price has now been factored into the 2024
Current Budget.
Financial Implications:
1. Approved Source of Funds – Operations Roads Current Budget
Description Account
Code
Source of
Funds
Available
Budget
Required
Liquid Magnesium
Contract and Flake
Calcium Purchase (dust
control)
10315.502310 Property Taxes $95,000.00 $210,000.00
Project Cost under (over) approved funds by ($115,000.00)
OPS 27-23 November 27, 2023
Subject: Additional Costs for Spraying Liquid Calcium Magnesium Blend for Dust Suppression
Discussion: A liquid calcium magnesium blend is used by the City to restrict airborne
dust particles for dust suppression on unpaved City roads and facilities gravel parking lots.
This process is completed annually, starting at the end of the City’s winter control season,
usually before the end of April. Dust suppression is performed in May when the warm and dry
weather conditions generate dust conditions on City unpaved roads and lots. In 2023, the City
entered into a three year agreement with Miller Paving Limited to provide application services
of liquid calcium magnesium from specialized vehicles. The service is provided on a unit rate
and the Current Budget is an annual allowance based of previous years’ actual costs.
The annual cost of providing this service in 2023 has significantly overrun the Current Budget
allowance of $95,000.00. The new three year contract was tendered in March 2023. The low
bid came in at 35 percent higher than the previous contract cost due to increased material
costs and inflation that is being seen across all sectors. The draft 2024 Current Budget
submission has been revised to allow for the increased cost of this new term of the contract.
Durham Region completed a road rehabilitation project on Lake Ridge Road between April and
late September this year. This Regional road project forced the detour of high volume traffic
from Lakeridge Road onto unpaved City roads during the very dry spring and early summer.
This high volume of detoured traffic resulted in a dangerous and unacceptable dust level
throughout the day and the City received many customer care complaints from both residents
and road users concerned about road safety and clouds of dust. To adequately address these
issues, additional liquid calcium magnesium blend was approved and the vendor applied dust
suppression over a prolonged dry spell resulting in a significant overrun on the annual
expenditure.
As per the Financial Control Policy FIN 030, Section 11.05, Current expenditures in excess of
the limits established under Section 11, shall require the approval of the Treasurer, the Chief
Administrative Officer, and Council.
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Brian Duffield Stan Karwowski, MBA, CPA, CMA
Director, Operations Director, Finance & Treasurer
BD:sv
Recommended for the consideration of Pickering City
Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer