Item - 2018.PW28.3

The Public Works and Infrastructure Committee recommends that:

1. City Council authorize the General Manager, Toronto Water to negotiate and enter into a non-competitive agreement with Toromont Industries Ltd. (Toromont) for the supply and delivery to the City of proprietary Original Equipment Manufacturing (OEM) parts and specialized services for equipment repair and maintenance at the Humber Wastewater Treatment Plant on terms and conditions satisfactory to the General Manager, Toronto Water and in a form satisfactory to the City Solicitor;

2. City Council direct that the initial term of the agreement will be for a period of up to one year, with the option to renew for four (4) additional periods of one (1) year each, subject to the exercise of each option year being at the sole discretion of the General Manager, Toronto Water and subject to the amounts payable under the agreement being available under the then current Toronto Water budget approval(s); and

3. City Council direct that the agreement will be on the condition that Toromont continues to be the manufacturer and/or exclusive distributor for the proprietary Original Equipment Manufacturing (OEM) parts and specialized services. The estimated amount of this non-competitive agreement is $4,330,000 net of HST ($4,406,208 net of HST recoveries) for the entire duration of the agreement, inclusive of all option renewal years.

The purpose of this report is to seek City Council authority for the General Manager, Toronto Water to negotiate and enter into a non-competitive agreement with Toromont Industries Ltd., operating as Toromont CAT, a division of Toromont Industries (Toromont) for the supply and delivery to the City of proprietary OEM (original equipment manufacturing) parts and specialized services for equipment repair and maintenance at the Humber Wastewater Treatment Plant (HTP) required in accordance with the City's operational requirements. The initial term of the agreement will be for a period of up to one year, commencing in 2018 with the option to renew for four (4) additional one (1) year periods at the sole discretion of the City, and subject to budget approvals for the total estimated agreement amount of $4,330,000 net of HST ($4,406,208 net of HST recoveries), inclusive of all option renewal years.

City Council approval is required in accordance with Municipal Code Chapter 195-Purchasing, where the current request exceeds the Chief Purchasing Official's authority of the cumulative five year commitment limit for each vendor under Article 7, Section 195-7.3 (D) of the Purchasing By-Law or exceeds the threshold of $500,000 net of HST allowed under staff authority as per the Toronto Municipal Code, Chapter 71- Financial Control, Section 71-11A.