Just under two years ago the City put out to tender arm mechanisms for their garbage trucks These mechanisms are now garbage, less than two years in.
The City owns seven garbage trucks. Five of these have compactors and arm systems made by Labrie Equipment Group, the other two have arms and systems made by a company named ShuPak.
In a report to council, ShuPaK systems are identified as the issue in the report to council, (page 88 at this link) an issue when all the math is done will cost taxpayers over $250,000 to rectify.
The City has spend over $128,000 dollars since the the purchase of the ShuPac systems, repairing the systems. The report now says they have to be replaced at a cost of $175,902.00.
Councillor Luke Dufour was looking for explanations as to how this could happen.
“I mean, these units are what, two and a half years old, and we’re already having incurred, you know, six figures in repair costs. Shouldn’t some of that have been covered under warranty?” asked Dufour.
Deputy CAO, Public Works and Engineering Services, Larry Girardi provided some insight.
“Have we [gone] through any legal matters to look at, you know, whether or not warranty would cover? We have tried to get the items fixed under warranty in the beginning, and there were some items that were repaired,” said Girardi. “But these units just don’t seem to be very robust and they just can’t seem to handle the day to day operations.”
Girardi then explained at the time of purchase they were hoping to go with Labrie systems, but ShuPak came in at a lesser cost. Because of the City’s procurement policy, they were forced to go with these units.
Dufour continued his questions, seizing on the statement about the procurement policy.
“Given the cost of repair here. Would it be fair to say that we’ve lost out on the difference between what the low bid and the big bid might have been in the beginning, with the repairs needed for these units?,” asked Dufour.
“You’re correct. Absolutely, correct. I think if we’d have [gone] with the Labries right up front, I think we’d have had better success. Unfortunately, that’s not the direction we went at the time,” said Girardi. “As for the ShuPak, they were spec’d, and they did meet spec, but unfortunately they didn’t come in as robust as we had hoped it would.”
Dufour is hopeful a similar situation doesn’t occur in the future.
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