Tender for Bulk Lift Garbage and Recycling
Collection Services in the York and
Toronto Community Council Areas
The Works and Utilities Committee recommends the adoption of the following report (March 18, 1998) from the
Interim Functional Lead for Solid Waste Management:
Purpose:
To advise your Committee of the costs of a one-year extension of the Toronto and York Community Council areas bulk lift
collection contracts, and to recommend how the bulk lift waste collection service should be continued.
Funding Sources, Financial Implications and Impact Statement:
Adoption of the recommendations in this report will result in the maintenance of bulk lift garbage and recycling collection
services in the Toronto and York Community Council areas with no change in the combined taxation costs for the two
Community Council areas. The current annual cost of providing these services is approximately $263,661.00 in the York
Community Council area and $1,334,460.00 in the Toronto Community Council area (including GST) for a total cost of
$1,598,121.00. However, if a one-year blended contract for the York and Toronto Community Council areas is entered into
(Option 2 in this report), the annual cost of the work will increase by approximately $293,000.00 per year including GST.
Recommendations:
(1)That City Council authorize a three-year extension of the Toronto and York contracts as the most cost-effective
approach to the provision of bulk lift waste collection services;
(2)that Contract No. 50130 be amended as follows:
(i)to provide for the inclusion of the provision of bulk lift garbage and recycling services to the York Community Council
area effective June 1, 1998 until June 17, 2001;
(ii)that on June 1, 1998, the unit prices in the contract be amended as follows:
Garbage Collection and Delivery to Disposal$18.79 per tonne
Recycling Collection and Delivery to Processing$44.62 per tonne
Bulky Item Collection and Delivery to Disposal$64.40 per tonne
White Goods Collection and Delivery to Processing$71.27 per tonne;
and
(iii)that the cost adjustment formula in Contract No. 50130 be applied to the unit prices imputed for 1993 based on the unit
prices shown in Recommendation No. (2) above and shown below on June 21, 1998, and subsequent contract anniversary
dates as provided in the contract documents:
Garbage Collection and Delivery to Disposal$17.48 per tonne
Recycling Collection and Delivery to Processing$41.50 per tonne
Bulky Item Collection and Delivery to Disposal$59.90 per tonne
White Goods Collection and Delivery to Processing$66.29 per tonne;
(3)that the Commissioner of Works and Emergency Services report to your Committee on a recommended process for
dealing with bulk lift contracts which will expire in the future, to provide for competition of external bids and consideration
of providing the service by City staff; and
(4)that the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
City Council requested that quotations for a one-year extension to the York and Toronto bulk lift contracts be obtained so
as to provide the option of considering carrying out this work by City staff in June 1999. It is not possible to carry out this
work with City staff at this time because the City owns only two bulk lift collection vehicles, currently used in the North
York Community Council area. These vehicles are not available to be used for bulk lift collection in the Toronto and York
Community Council areas, and it would take approximately one year to acquire necessary collection equipment to carry out
the work with City staff, for an equipment acquisition cost of $5,275,000.00.
The extension of Toronto Community Council Area Bulk Lift Contract No. 50130 for the collection of garbage and
recyclable materials was considered by Council at its meeting of March 4, 5 and 6, 1998. As a result, Council approved
Recommendation No. (2) of the Works and Utilities Committee:
AThat the Interim Functional Lead for Solid Waste Management be requested to negotiate with Canadian Waste Services
Inc. a one-year extension of the contract for the provision of bulk lift garbage and recycling collection services for the
Toronto and York Community Council areas, and submit a report thereon to the next meeting of the Committee, scheduled
to be held on March 25, 1998.@
Comments and/or Discussion and/or Justification:
Quotations were obtained from Canadian Waste Services Inc. (CWSI), the current bulk lift contractor for the Toronto and
York Community Council areas, for the extension of Contract No. 50130 for one year to June 1, 1999, for the provision of
bulk lift services in the Toronto and York Community Council areas.
The quoted prices including GST of the one-year contract extension, compared with the previous blended quote for a
three-year contract extension are shown in Table 1 attached.
The one-year extension will increase the City=s costs (including GST) by approximately $292,000.00 per year (18 percent).
The costs thereafter will be dependent on the approach to collection selected.
Options for continuing bulk lift waste collection in the Toronto and York Community Council Areas:
City Council has three options to continue bulk lift collection services in the Toronto and York Community Council areas,
as follows:
(1)accept the three-year extension blended contract for Toronto and York; or
(2)accept the one-year extension blended contract for Toronto and York; or
(3)exercise the three-year extension for the existing Toronto contract and call separate tenders for a one-year or a three to
five-year contract for York.
Each of the above options is reviewed below.
(1)Three-year extension of blended contract for Toronto and York:
This option assures the continuance of bulk lift collection services in the Toronto and York areas at no additional cost. It
precludes alternative service delivery such as in-house collection operations for three years in these areas of the City.
(2)One-year extension of blended contract for Toronto and York:
This option results in an increased cost of $292,000.00 including GST, for the contract extension period. It leaves very
limited time to consider alternative service delivery options such as in-house collection operations. Contingency financing
would have to be authorized in the 1998 fleet purchase budget at an estimated cost of $5,275,000.00 for the purchase of
necessary vehicles to carry out bulk lift collection services in the Toronto and York Community Council areas on in-house
basis.
(3)Three-year extension of the Toronto contract and retendering of York contract for a one-year or a three to five-year
period:
If a one-year retender for York is considered in order to provide for the potential of carrying out collection work on an
in-house basis in York starting in June 1999, tendering for future services should be commenced at the same time as
negotiating with the union regarding the arrangements bringing the service in-house. This option guarantees the cost of
service in Toronto, but may result in a variation in service cost in York. We expect that the low bid will be higher than the
existing contract in York, particularly for a one-year contract, resulting in increased costs to the City. This option loses the
benefit of retention of current costs for both York and Toronto under the three-year blended contract extension.
The procedure for tendering the service in York would be as follows:
(a)March 25, 1998 - Works and Utilities Committee determines that tenders should be called;
(b)preparation of tenders and advertising during the first week of April providing a period of two weeks for the contractors
to review and submit their tender price by Friday, April 17, 1998;
(c)April 22, 1998 - report to Works and Utilities Committee with a recommendation on the acceptable tender; and
(d)May 13, 1997 - tender awarded by Council with work to commence on Monday, June 8, 1998.
Retendering of the York contract is possible, however, the timelines are critical. Due to the limited size of the York
contract requirements, it is likely that competitive bids would be obtained, but, as noted above, these bids are likely to
result in costs that are higher than the blended costs offered by Canadian Waste Services Inc. for a three-year contract
extension.
Conclusions:
The one-year extension options do not provide an opportunity to enter into negotiations with union staff over a reasonable
period of time and develop an alternative service delivery model for bulk lift services in the Toronto and York Community
Council areas in 1999. Therefore, it is recommended that the option of providing bulk lift collection service by City staff be
assessed for replacement of other bulk lift contracts for other Community Council areas which expire at later dates. Your
Committee has requested that a report be prepared on these other bulk lift contracts that are due to expire and this report is
under preparation.
The option of extending the Toronto and York contracts for a three-year period guarantees uninterrupted service at no
additional cost. It is recommended that this option be adopted and that future consideration of delivery of bulk lift service
by City staff be focussed on bulk lift contracts that expire at later dates.
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@city.toronto.on.ca@
Table 1
Prices Quoted by CWSI for a One-Year or Three-Year Extension
of the Toronto and York Community Council Areas Contracts
for Bulk Lift Collection of Waste
The following persons appeared before the Works and Utilities Committee in connection with the foregoing matter:
-Mr. Larry Katz, representing Toronto Civic Employees= Union, Local 416;
-Mr. Lenny Campitelli, President, J & F Waste Systems Inc.; and
-Ms. Judy Shinn Nagano, Browning-Ferris Industries.
