April 9, 1998
To:Works and Utilities Committee
From:Michael A. Price, Interim Lead for Solid Waste Management
Subject:Procedures for Retendering Existing Contracts for Waste Collection and Provision of Opportunity for the City=s
Unionized Workers to Propose Having This Work Carried Out on an In-House Basis
Purpose:
To advise your Committee on the status of all outstanding contracts for waste collection.
Funding Sources, Financial Implications and Impact Statement:
The method of service delivery could influence the City=s future operating costs for waste collection services.
Recommendations:
It is recommended that:
(1) the attached tender schedule shown in Table 2 attached be forwarded to the sub-committee for its consideration;
(2) authorization be given to call tenders for all waste collection contracts which expire in 1998 and 1999, excluding the
Toronto and York bulk lift contracts, as shown in Table 2 of this report; and
(3) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
Your Committee, at its special meeting of March 2, 1998, in considering the report of the Works and Emergency Services
Department (February 2, 1998) entitled AExtension of Contract No. 50130 - Provision of Bulk Lift Garbage and Recycling
Collection Services - Toronto and York Community Council Areas@:
Aestablished a sub-committee of Councillors Altobello, Disero and Layton to work with staff and the Toronto Civic
Employees= Union, Local 416, regarding a strategy for tendering other contracts, and to explore the means by which the
provision of bulk lift waste collection would be organized if it were handled in-house, and to submit a report thereon to the
Committee.@
To assist in reviewing the potential for carrying out collection work on an in-house basis, it is necessary to review the
expiry dates of all existing waste collection contracts and the lead time for retendering and potential collection equipment
acquisition.
Comments and/or Discussion and/or Justification:
Existing Waste Collection Contracts
Table 1 attached shows all of the existing waste collection contracts (bulk lift and curbside) currently in place in the City,
their expiry dates and their cost in 1997, including 7% GST.
As can be seen from Table 1, eight contracts costing $4,802,928 per year expire in 1998 and 1999, three contracts costing
$4,865,668 per year expire in 2000 and one contract costing $1,255,451 per year expires in 2001.
Lead Time for Contract Tendering and Equipment Acquisition
Based on the City=s normal tendering process, which includes identification of vehicle specifications which will satisfy the
City=s health and safety requirements, the lead time for purchase of new or used collection vehicles by the City is
approximately one year. Therefore, where additional City collection equipment may be required, tenders should be called
such that there is a one-year period following tender award or a decision to carry out the service on an in-house basis. This
will allow the City to purchase the necessary collection equipment and make necessary budget adjustments, if it is decided
that the City should carry out the work. Where a decision is made to carry out work on an in-house basis and purchase
equipment, it will be necessary for City Council to make a prior financial commitment outside the budget process,
guaranteeing that funds will be allocated for the purchase of collection equipment at the time of delivery of the equipment.
For small and medium-sized contracts, contractors may have access to collection equipment at relatively short notice and
competitive tenders can be called with a shorter lead time than one year prior to the start of work, if it is decided in advance
not to carry out the work on an in-house basis.
Time Required for Discussions with CUPE Local 416
If discussions are to take place with CUPE Local 416 regarding the possibility of bringing existing contracted waste
collection work in-house, it is necessary to allow sufficient time for such discussions to take place and subsequently obtain
a City Council decision with respect to each contract and then allow time for tendering the contract and a one-year period
between tender award and the start of work to allow for the purchase of collection vehicles by the city if applicable. From a
practical point of view, it is unlikely that such negotiations could be completed, a Council decision made with respect to
how to proceed with the work, and tendering and award of any related contract, and/or arrangements made for vehicle
purchase before the end of 1998. This is illustrated in Figure 1. Therefore, consideration for bringing collection work
in-house should only apply to waste collection contracts which expire after December 31, 1999. It is noted that the lead
time for equipment replacement for the existing East York, York, Scarborough Community Council Area and North York
Community Council Area waste collection contracts which expire in 1998 and 1999 is sufficient to call competitive
tenders, but insufficient to obtain collection equipment if it is decided to bring the collection work in-house.
Conclusions:
All contracts which expire in 1998 and 1999 should be re-tendered, other than the Toronto and York bulk lift contracts,
which have already been extended for three years and the Scarborough curbside contract, which is being extended for one
year and which should be retendered in early 1999. Contracts which expire after December 31, 1999 should be retendered
in conjunction with a review process with CUPE Local 416.
Contact Name and Telephone Number:
John Warren
Director of Operations and Sanitation
Toronto Community Council Area
Phone: (416) 392-1846
Fax: (416) 392-0396
E-Mail: Ajwarren2@toronto.city.on.ca@
Michael A. Price
Interim Lead for Solid Waste Management
Barry Gutteridge
Commissioner of Works and Emergency Services
(p:\1998\ug\cws\san\wu98012.san) - bmk
Table 1
City of Toronto Contract Details
Garbage and Recycling Collection Contracts
*This contract is for three recycling trucks and collection crews which are used to supplement 15 City-owned and
operated collection vehicles. The contract is in the process of being renewed for one year.
Note:The Scarborough Community Council area also employs nine collection vehicles/collection crews on a contract
basis. Renewal of these contracts is addressed in a separate report (March 3, 1998) to the Works and Utilities Committee
entitled ATendering of Contract for Nine Hired Garbage Packers in the Scarborough Community Council Area.@
*The Scarborough curbside contract is currently being extended for one year to June 30, 1999.
