STAFF REPORT

October 29, 1999

To: Works Committee

From: Barry H. Gutteridge, Commissioner, Works and Emergency Services

Subject: Collection and Reuse or Recycling of Old Large Appliances (white goods) and Scrap Metals from Residential and Transfer and Disposal Locations in the City of Toronto.

Purpose:

To inform committee of the results from the Quotation Request for the collection and reuse or recycling of white goods and scrap metals from residential and transfer and disposal locations in the City of Toronto.

Financial Implications and Impact Statement:

There are no financial implications to report.

Recommendation:

It is recommended that this report be received for information.

Background:

On Tuesday, August 3, 1999, a Quotation Request for the collection and reuse or recycling of white goods and scrap metals from all Toronto Community Council Areas and transfer and disposal facilities was issued.

The Quotation Request provided for the collection, reuse and recycling of white goods and scrap metals. The contract would be for a three-year period with an option for a one or two-year extension, if all terms and conditions were agreeable to the City and Contractor.

The closing date for bids was August 20, 1999.

Only one company, Merchandise Recovery Services Incorporated (MRSI), submitted a bid price for the service. MRSI currently provides this service under contract. The price quoted was $10.65 per location, which represented a 113% increase over the existing MRSI price per location.

Comments:

City staff advised Mr. Mike Di Cenzo, President of MRSI, that although he was the only bidder, the new price per location of $10.65 was unacceptable and that the city was considering other collection options.

The first option, because of the significant increase in the cost to provide this service with a private contractor, would be to investigate the opportunity to provide the collection service with public sector forces.

The second option for consideration was to ask our Purchasing and Materials Management Division (PMMD) to re-issue a new quotation request if staff were able to identify other private sector companies that could provide the service or if MRSI could modify their collection methods to reflect a price closer to our existing costs.

MRSI was not forthcoming with a satisfactory proposal to modify their collection methodology to reduce their price. On September 30, 1999, the Solid Waste Management Services Division (SWMSD) sent a letter to MRSI to advise them that the contract would not be awarded at the new price.

However, in an effort to properly assess all the options for the collection and reuse or recycling of white goods, the SWMSD extended the MRSI contract until December 1, 1999.

In order to get the lowest net cost for the City of Toronto and allow more private sector companies to provide a bid, SWMSD staff have instructed the PMMD to re-tender the service request in two phases.

The first quotation request will be for the purchase of the City's white goods and scrap metals once they have been collected and delivered to specified locations. The second quotation request will be for the provision of services to collect the white goods only.

Merchandise Recovery Services Incorporated will be invited to provide a bid on both of these quotation requests.

Conclusions:

After a review of the price proposal from MRSI staff are planning to issue two new requests for quotations.

A follow up report with the results of the new quotation requests will be forwarded to the Works Committee in December.

Contact:

Craig Bartlett

Supervisor - Processing Operations

Solid Waste Management Services

Works and Emergency Services

Tel: (416) 397-5381

Fax: (416) 302-4754

E-mail: cbartlet@toronto.ca

Angelos Bacopolous

General Manager

Solid Waste Management Services

Barry H. Gutteridge

Commissioner

Works and Emergency Services

CB:RS