Non-Competitive Agreement with Trecan Combustion Limited for the Rent-to-Own Option and Supply and Delivery of Original Equipment Manufacturer Services for Trecan Snowmelters

The City currently owns and operates three (3) Snowmelters, which provide critical support to the City's winter operations. A Snowmelter is designed to melt large quantities of snow to effectively manage snow accumulation, which can reduce the costs and time associated with hauling snow to an alternative location. Snowmelters are a key part of the City's snow removal plan, as identified by a third-party independent consultant, Municipal VU Consulting Inc. Through EX25.5, Council directed the General Managers of Fleet and Transportation Services to determine surge capacity equipment needs related to major snow events, and the City Manager to work with Municipal VU Consulting Inc., to finalize a major snow event plan and associated communications plan based on findings from Municipal VU Consulting Inc. The Fleet Services Division undertook two competitive procurement processes, in 2023 and 2025 respectively, for the maintenance and repair of its existing Snowmelters; however, neither led to securing a qualified vendor. The City's existing Snowmelters have aged, with two units requiring repairs and one unit requiring replacement. Additional units are also needed to ensure reliable equipment is available to support snow-clearing operations, including accounting for any service disruptions. Trecan Combustion Limited is the sole source supplier in Canada capable of providing Snowmelters of the size and specifications required by the City. The initial contract term is one (1) year, from December 1, 2025, to November 30, 2026, with the option to renew for four (4) additional separate one (1) year periods. The total cost to the City for awarding this contract is $2,869,780 net of Harmonized Sales Tax recoveries ($2,852,013 including all taxes and charges, $2,820,145 net of Harmonized Sales Tax) for the initial term. The full value of the contract, including all option renewal terms, is $3,940,350 net of Harmonized Sales Tax recoveries ($4,452,595 including all taxes and charges, $3,872,199 net of Harmonized Sales Tax). A non-competitive procurement may be undertaken where both the proposed procurement and supplier can be justified in good faith based on an exception set out in Toronto Municipal Code Chapter 195, Procurement. This procurement will be proceeding under the exception related to Exclusive Rights, where Trecan Combustion Limited and the City have determined in good faith that both the proposed procurement and the selected supplier, along with the terms and conditions of the contract, are beneficial to the City (Toronto Municipal Code, Chapter 195, Procurement, Section 7.1.C). City Council approval is required in accordance with Municipal Code Chapter 195 - Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five-year commitment for each supplier, under Article 7, Section 195- 7.3 (D) of the Purchasing By-Law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code, Chapter 71- Financial Control, Section 71-11A.

four (4) additional optional one (1) year renewal periods, for a total potential cost of $3,940,350 net of Harmonized Sales Tax recoveries ($4,452,595 including all taxes and charges), on terms and conditions satisfactory to the General Manager, Fleet Services, in a form satisfactory to the City Solicitor.