(iii)Obtain current model year build dates from dealers in order to submit their bids and allow for equipment to be available when required to meet corporate service delivery requirements.
In order to allow early tendering of construction projects, Council has in the past number of years, pre-approved a number of capital projects.
Discussion:
Administration is submitting this pre-approval report in order to allow tendering of projects in a timely manner.
For 2021, the recommended projects include both construction and fleet equipment replacement and are set out in Appendix “A” and identify a pre-approval requirement of $15,646,476.
The various sewer, road and parks projects identified are planned for construction in 2021. In order to start this work as soon as possible in 2021 tendering in the fall will allow for work to commence in Spring 2021. Postponing the tendering will result in the work being pushed out and creates a risk of the cost being higher. Administration also seeks to balance all sewer and road work planned each year considering the impacts of detours. As such certain projects need to proceed in the spring so as to balance out and allow other planned projects to start in the summer and fall.
A selected number of vehicles from the Parks Equipment replacement plan are being recommended for pre-approval. The selected units are utilized by the Parks department to provide grass cutting services across the city as well as maintenance of sports fields and recreation areas. Equipment is evaluated and condition is assessed annually prior to the development of the capital budget. Factors include age, usage, repair history, expected maintenance and repairs, departmental requirements, availability of parts, condition ratings, mileage, idle time, technological requirements, ergonomics, safety, and replenishment of the pool and resale value. These units are all at the end of their useful life and in poor condition. If the equipment fails, the department risks being able to maintain the level of service required and expected, and will likely result in an increased number of complaint calls to the City. It should also be noted that COVID has particularly delayed the availability of equipment as manufacturers have adjusted their production schedules during 2020 which could also impact orders into 2021.
Purchasing By-law 93-2012 provides the following approval authority:
“Administrative Approval
37. The CAO may:
(a) approve a requisition and make an Award of up to $150,000, provided the funds have been included in the Council-approved operating or capital budget.