STAFF REPORT
March 6, 2000
To: Works Committee
From: Barry H. Gutteridge, Commissioner, Works and Emergency Services
Wanda Liczyk, Chief Financial Officer and Treasurer, Finance
Subject: Collection and Reuse or Recycling of White Goods and Scrap Metals in the City of Toronto.
Purpose: The purpose of this report is to recommend an appropriate alternative for the collection and marketing of white
goods and scrap metals in the City of Toronto based on the results of two separate quotation requests for the collection and
marketing of these materials respectively, and in comparison to in-house provision of service.
Financial Implications and Impact Statement:
Funding for the collection and marketing of white goods and scrap metal has been provided for in the 2000 Operating
Budget submission under the Collection Sub-Program (SW270) at 1999 prices. The award of the two quotations to the best
value bidders will increase the 2000 Operating Budget by approximately $70,605.00 compared to an increase of
$172,257.20 had Council approved the previous Quotation No. 6033-99-01845, which was subsequently cancelled by
Council at its meeting on December 14, 1999. This additional cost will be absorbed through operational efficiencies.
Recommendations:
It is recommended that:
(1)authority be granted to award Quotation No. 6033-00-7037 to the lowest bidder, Turtle Island Recycling Co. Ltd., for
the collection of white goods and scrap metals at a total estimated annual cost of $335,368.00;
(2)authority be granted to award Quotation No. 9202-00-7012 to the highest revenue generating bidder, Recycle Plus
(Enviro-Glass Recycling Inc.), for the purchase of white goods and scrap metals at a total estimated annual revenue of
$151,762.80; and,
(3)the current non-contracted collection areas of the North York and Toronto Community Council Areas continue to be
collected in-house using City forces.
Background:
At its meeting held on December 14, 1999, Council adopted the joint report dated November 29, 1999 from the Chief
Financial Officer and Treasurer and Commissioner of Works and Emergency Services directing staff to:
(1)cancel Quotation No. 6033-99-01845, for the collection, reuse and recycling of used appliances (white goods) and
scrap metals in the City of Toronto;
(2) issue a new quotation request for the collection of white goods and scrap metals in the City of Toronto;
(3) issue a new quotation request for the marketing of white goods and scrap metals including CFC extraction for the City
of Toronto; and,
(4)report back to the Works Committee with a recommendation on a preferred alternative for the collection and
marketing of white goods and scrap metals in the City of Toronto, based on the results of the quotation requests and in
comparison in-house provision of service.
Comments:
The results of the two Requests for Quotations are as follows:
For Request for Quotation No. 6033-00-7037 (Collection of White Goods and Scrap Metals) for a three-year period, five
firms bid as summarized below. Turtle Island Recycling Co. Ltd. provided the lowest pricing at $11.00 per pick up call
($11.33 incl. 3% net GST) for areas that include East York, Etobicoke, Scarborough, York and Transfer and Disposal
Facilities for an estimated annual cost of $335,368.00 (incl. 3% net GST).
Collection of White Goods and Scrap Metal
FirmPrice per Pick Up
1.Turtle Island Recycling Co. Ltd.$11.00
2.Recycle Plus$16.95
3.R3 General$20.00
4.A.T.O. Construction$22.00
5.Furcon Ltd.$25.00
For Request for Quotation No. 9202-00-7012 (Purchase of White Goods and Scrap Metals from various locations
including CFC extraction) for a three-year period, five firms bid prices as summarized below. Recycle Plus has their site in
Toronto while Philip Services's site is in Hamilton. As it would cost the City more to deliver the goods to Hamilton,
Recycle Plus (Enviro-Glass Recycling Inc.) provided the highest revenue price at $40.00 per tonne ($37.38 + $2.62 G.S.T.)
for an estimated annual revenue of $151,762.80 (excluding GST of $10,637.20)
Purchase of White Goods and Scarp Metal
Amount Offered Per Tonne
Including G.S.T
FirmOption 1 *Option 2 **
1.Recycle Plus$40.00
2.Philip Services, Metals services Group$40.00
3.Stark Iron & Metal$35.00
4.Como Excavating & Disposal Service$20.00
5.Colantonio Metals Limited$15.00
* Option 1- delivered to contractor's site
** Option 2-picked up from Transfer/Disposal areas
The resulting total annual net cost of $183,605.20 ($335,368.00 - $151,762.80) compares favourably against the total
annual net cost of $324,697.20 obtained through Request for Quotation No. 6033-99-01845 cancelled by Council at its
meeting on December 14, 1999.
The Solid Waste Management Services Division has already budgeted $153,000.00 for contracted collection of white
goods and scrap metals and $40,000 in revenue for the sale of these materials collected in the North York and Toronto
Community Council Areas in the 2000 Operating Budget. This tonnage will be consolidated into the new purchase
contract. The net impact on the Division's 2000 Operating Budget will be approximately $70,605.00 annually ($183,605 -
$153,000 + $40,000). The impact of awarding this work to the previous bidder under Quotation No. 6033-99-01845
(cancelled) would have been $172,257.20 annually (increase of $5.65 per call x 29,600 pick up calls + 3% net GST).
In reviewing the service delivery alternatives for collections, staff compared the gross collection cost of $11.00 per pick up
call ($11.33 incl. 3% net GST) provided by the low bidder against the current gross collection cost of $15.53 and $17.44 in
the North York and Toronto Community Council Areas respectively. In view of the different requirements in the
downtown core and the competitive benefits of the City remaining as a service provider for white goods collection, we
recommend that the North York and Toronto communities continue to be serviced by City forces. Staff will continue to
explore and implement productivity improvements to reduce the cost of City operations and enhance our competitiveness
with the private sector.
For the information of the Committee, it should be noted that it was necessary to retain the services of the two
recommended bidders on an interim basis effective March 1, 2000, with a final contract agreement being subject to
Committee approval. This was necessary as the City was to be without collection services effective February 29, 2000.
Conclusions:
Staff recommend that authority be granted to award Quotation Nos. 6033-00-7037 and 9202-00-7012 to the bidders as
stated in this report, for the collection of white goods and scarp metal in currently contracted areas of the City and purchase
of white goods and scrap metals City-wide. It is also recommended that City forces continue to provide collection of these
materials in the North York and Toronto Community Council Areas at this time.
Contact:
Henry MohlmannLou Pagano
Supervisor - Contracted ServicesDirector, Purchasing and Materials
Solid Waste Management Services DivisionManagement Division
Works and Emergency ServicesFinance Department
Tel: (416) 338-0955Tel: (416) 392-7311
Angelos Bacopoulos
General Manager
Solid Waste Management Services
Barry H. GutteridgeW. A. Liczyk
CommissionerChief Financial Officer & Treasurer
Works and Emergency ServicesFinance
(whitegoods rpt 3.doc)
