HomeMy WebLinkAboutMPE 21/00. i �_
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REPORT TO COUNCIL
FROM: Richard W. Holbom
Diviaion Head
Municipal Properry & Enginecring
Gillis A. Pnterson
Director
Corporate Services & Troasurcr
DATE: August 3, 2000
REPORT M)MBER: MPE 21/00
SUBJEC7': Co-Operadve Tender T-4242000
' Curbside Collection ofResidentinl Wasle
In the City of Pickering, Town of Ajsuc, Town of Whitby
RECOMMENDATION:
1. That Report MPEZI/00 be received nnd
2. Thut Council nclutowleclgc that Rcgion oC Durham Cooperntive Tcnder T-024-2000
cunnot be nwardcd, as Whitby and Ajnx havc dceided not to uward a conancl.
3. That City of Pickering Supply & Serviccs Sta(f issuc n tender •for curbside and bulk liII
collection of residential non-haznnlous garbagc wnsle for n 5 yenr tertn commencing
Oclobcr l, 2000, and thc results of the Icndcr bc fanvardcd lo Council for lhair
consideration ut thc September i l, 2000 mceting.
4. Thnt lhe contmct with J& F Westc Systcros for orgnnic waste collection bc cxtended
subjecl lo negotialed terms and condilions acceplable to the Direclor, Operalions &
Emergency Services and the Dircctor, Corporate Services & Treasurer and ataff bc
granled nuthoriry to gve cCfect heroto.
ORIGIN:
Cooperative Tender T-0242000 for curbside collection oC Residential Wazte in lhe City of
Pickering, lha Town of Ajax, and the Town of Whitby.
AUTHORTCY:
Cooperative purchnsing aaengement with lhe Region of Durham and Area Municipalities,
FINANCIAI. IMPLiCATIONS:
� As Utis is a 5-yen� term contract, tho funds requiral will be budgeted for annuelly within thc
current budget, 23a0 Solid Wasta. Funds tor October to December 2000 mm �vailable within the
account 2340 Solid Waste basod on pricea received for lho cxisting contcscta.
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RcpoK to Council MPB 21/07i � �
Subjx� Co-Ope�ativeTenderT-4242000
Gyubaide Colleclion of ResidenUel Wasto
in the City af Pickering, Town ofAjax, Town of Whitby
BXEC[)TIVB SUMMARY:
" • Dele: Auguat 3, 2000
Pago 2
Tha City of Pickering has becn advised.by the Rcgion of Durhazn ttiat Cooperative Tenda
T-4242000 cannot be ewarded,'aa Whitby and Ajax havo decided not to award the wntract.
This infortnalion has bun validated by the Dinctor, Corporale Sen•ices & Treasurer and ihe
City's legal representatives, Reble, Ritchie, Green & Ketcheson. Canndian Waste, ihe current
contractor is not willing to extcnd lhe existing contract et its cumnt terma and conditions,
(specifically coat). The low bidder for Tender T-424-2000, Miller Waste Systems is not willing
to ofi'er the same terms and conditions on a Pickering only scrvice. Thc City of Pickering ia leR
with only one viable option, �vhich is to issue a Tender for cucbside and bulk litt wllcction of
residential non-6ezardous waste for a 5-year term, commencing October 1, 2000, and the reaults
of the tender be fonvarded to Council for their consideration at the September 11, 2000 meeting.
It is rccommended lhat lhe exisling conhact with J& t Waste Systems for tlic collection of
orgnnic weste be extendeA subjcct to negotiated terms und conditions occeptable to the Director,
Operations & Emergency Services and thc Director, Corporate Scrvicrs & Treasurer.
Altemately, Council mny direct staCf to negotiute u contract with cither the low bidder or the
cumnt contrnctor, but thero are adhercnt risks in either of these options.
BACKGROUND:
The City of Pickcring is responsible to provide curbside m�d bulk lift collection of residential
non- l�azardous garbagc waste and curbside organic wnste collcction within the limits of the City
of Pickering.
Cwrently, Pickcring administcrs pvcc scparnte coniracts in ordcr to providc this service to ils'
residcnts. The most subslnntial contract in tcrms of numbcr of houscholds, volume, and tatal
cost is �hc curbsidc garbagc waste collcetion contract.
The present curbsido garbnge waste collection contract N T-12-94 between the City oCPickering
nnd Canadian Wastc Scrvices will expirc Scptember 30, 2000. Thc contract was originally a five
(5) yoaz wntract from November 1, 1994 to Qctober 31, 1999. Thc bulk IiR garbage wuste
collection contract and curbside organic wastc colixtion contracts also expire September 30,
2000.
In the fall of 1999, extenaions were negotiated to September 30, 2000. The extension date was
selected to coincida wilh lhe expimtion date of the Town of Ajnx contmct wilh Browning Fertis
Industries (BFn, . This would allow a joint lender to bo called in anticipation of more wmpetitivc
pricing. The extension also allowed l6e Region of Durham to complete it's "Long Tertn Waste
Management Shategy Plan: 2000 to 2020", to determine what, if eny, recommendations the
municipalities could consider in the service delivery of non-hazardous waste collection.
In March 2000, tha Region of Durham wmmenced coordineting a cooperative tendering process
for curbside collection of non•hezardous residential garbage und organic wasta, Tho
municipnlities participating included tha City of Pickeriny, Tha Town of Ajax and the Town of .
Whitby. Pickering end Ajex, es mentioned earlier, p�ovide a contractad scrvice, while Whitby
provides the service with in•hause resources.
The City of Pickering sent n letter to the Rcgion of Durham dated, Juns 6, 2000, advising of our
pariicipetion in tho process,
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Report to Council MPB 21/O(Y �' Data Auguat 3, 2000
Subject: Co-Operative Tender T-424-2000 ' .
Curbaido Collection of Reaidentiel Waslo
In tho Cily of Pickering, Town ofAjeic, Town of Whitby • Page 3
The Dur6um Region CooperaGvo tender, T-A242000, was executed on June 12, 2000 and c(os4d
on Juna 29, 2000 at noon. Bidd«s wero required to bid on two pnrts of a five-year wntrocL•
.• Part ona: a bid price to include Ajax/f'ickering only
• Part two: u bid that would includc Ajax, Pickering and Whitby
Tender documents were distribuled to nine (9) regional Waste hauling companies in thc area.
• Canadinn Waste Services ' '
• Miller Waste Systems � �
• J & F Wasle Systems
• Capital Environmental Resources
• Pebblestonc Multi-Services
• IIrowning Perris Industries
• Vanoboys L�nterprises •
• Wosteco •
• Maverick Waste Systems
Only two companies submitted bids on the Waste colleclion nccording to the Tender
specifications: .
• Miller Waste Systems
• Canadian Waste Services Inc.
Miller Waste Systems has submitted l�e lowest bid according to lhe tender documenG
The Town of Ajux •has n msolution of Cowcil not to award the tender to lhe lowest bidder,
Milla Weste Systems at this timc. They will be ncgotiating a 6 monlh extension to their
contract. The Town of Whitby wili be continuing with municipal collection at thie time. By
vidue of this being a joint-cooperative tender, the City of Pickerin� cannot awnrd a contracl
without Ajax, under Part l or Ajax and Whitby, under Pert 2. This has becn validated by thc
Diroctor, Cotporata Services & Treasurer, and the City's legal repmsentativo, Reble, Ritchic,
Grcen & Ketcheson. .
The Municipal Property & Engineering Division atati' have reviewed end analyzed tho lcnder
bids with respcet to pricing. The lowact bid by Miller Waste Systems tor garbage wasto
collcetion aervico is comparublo ro tho curront prico undor tho oxisting contract with Cenedion
Waslo Servicee, Howaver, tho organic wasto collxtion secvico is eubslandelly higher then tho
oxlatiag wntract wilh J& F Wasto Syetcros.
` Rcport to Council MPB 21/0(Y �` " Datet Auguat 3, 2000
Subject: CaOperetivo Tender T-R242000 , .
� Curbsido Collection of Rcsidential Waele '
Ia Iho City of Pick«ing, Town ofAjax, Town of Wttitby • Page 4
Tho following charl provides an enalysis and comparison of the tender bids.
• . � Tendarer :' " '1'art�l:. � �,. . � . Part2
A ui'&,Pickerin A ar Ytckcrin &.W61tb
Miller Wasto Systems Garbage Waste Garbage Waste
549.05 pet tonne 547.95 per tonne
(S43.05 per stap per year) (S37.70 per stop per year)
' Organic Waste � Organic Waste
$16635 per tonne S165.92 per lonne
Canadien Waste Garbaga Waste Gazbage Waste
Services Inc. 577.12 per lonne 583.78 per lonne
(567.68 per stop per yeaz) ($65.87 per stop per yenr)
Organic Wastc Organic Wnsle
5240.71 per tonne 5239.09 per tonne
The low bid from Miller Wastc Systcros of 543.05 per stop per ycnr is comparabla to the current
pricc with Canadian Wastc Scrvices Inc. at 542.96 per slop per year. Thc low bid equntes to nn
annunl estimaled cost of St,019,467. The bid from Canndian Wnstc Scrvices Inc. equates to en
annual estimaled cost of S 1,602,730.
The low bid from Miller Waste Systems for orgnnic wuste of S16G.35 per tanne equates lo an
annual es:imuted cost of S349,335, acid reflects an increasc in scrvicc to 37 colleclions per yenr.
The curreat Icvel of service is 25 collcctions per year for an annual cstimated cost of $149,546.
Based on an ua lovcl of service, the incrense in casl is approximately 58%.
The level of servicc, and mettiods of servicc dclivcry proposed in this tender ere rolntively
unchanged compured to curtent City of Pickering practices and the Wnsta Mnnngement By-law �
#542Z!�8 for garbaga wnsto. This tcnder specified a four-dny collection achedule (Tuesday to
Fridny), with ono collection per wcck, the samc routing with permission to modify/improve
subject to approval, lhe contraclor's responsibility to plece non-compliance tags, the continuntion
of a FOUR item limit, the provision to collect TWO extru bulky items per housohold per week, �
and the provision to collect increased amounts through a partial usar pay system, et%ctive April
1, 2000, if implemented by lhe municipality.
The level of service and method of servica delivery proposed in this tender for organic waste is
an increase in frequency compared to current ptactices. This ia in anticipntion of introducing
household food wastes and olher sclecled organic materials to this stream during ihe term of lhe
contract. This tender specified e four-day collxlion schedule (Tuesdny to Friday), with ane
collection per week from mid April to the first week of Deccmber. This would allow Cor
approximately 35 collxtions annunlly compare.d to the current 23 cotleclions annuaUy. Tho
tender allowed tor two collections dnys of Ctuiatmas Trees and organic woste in Junuary over a
two week period, wtuch is consistcnt with curTent practices.
The City of Pickering is fnced with three options to considcr in order to sceuro garbagc and
organic wnete collecliona beyond September 30, 2000, The only vieblo option is Opdon Nl, ,
according to lhe Ciry's lagal represenWdves, as it follows purohasing practices and avoids ihe
potentiel for legal action agatnat tho City.
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Report to Council MPfl 21/0� . " Detet August 3, 2000
3ubjceL• Co-OperativoTenderT-42�-2000
C�rbsida Collxtion otRwidential Waste
Lt lho City of Pickering, Town of Ajax, Town of Whitby Page 5'
Optioa #1
Issuo a tendec call for e 5-year curbside and bulk lilt garbage wasto collection aervice and
extend tho contract with J& F Waste Systems for,arganic wnste collection.
A tcnder would huve to be prepared by Supply & Services StaCf nnd be availnblc for pick up in
mid August and close in inte August, The tender would be considered et lhe September 11, 2000
Executive Committee meeting. '
OpHon N2
Extcnd lhe contract with Cenadian Wnste Servicas Inc., for curbside gerbnge wuste
collection and extend contracls with J& P Woste Syslems for orgnnic waste and bulk liR
garbage waste callections. �
Discussions with Canadian Wnste Se�vices Inc. hnve tnlcen pince, and they aro not in n position to
extend tho contract at the currcnt price, therefore, negotintions would hava to take place to satisfy
both parties on terms and conditions. •
Option H3 '
�ward u contract to Millcr Wasta Sysicros bazed on thc Tender Priccs submittul nnd
extend contrnct with J& P Wasic Systems for bulk liR garbage colleclion,
Discussions wilh Miller Wuste Systems have taken place, and they are not in n pasition to enter
irito a contract with Pickcring ooly nt the lender prices submitted,, ns thcir economies of acula
ennnot ba met, therefore, negolintions would have to takc pince to satisfy both parlies on torms
and conditions. •
a
Report to Council MPB 21/00 - Dato: Auguet 3, 2000
. SubjxE: • CaOperativa Tenda T-4242000 ,
Curbaida CollecGon of Residential Westo
In tho City of Pickering, Town ofAjax, Town of Whitby Pagc 6
. ;,
ATTACHIv1ENTS: �
Region of Durhacu Memo dated, July 21, 2000.
Prepazed By. APproved / Endorsed By:
r� �
Rich Holbo Ev rett B m sma, ctor
Div sion Head, Municipal Property & Engineeri g Operalions & Emergcricy Services
Approvcd / indorsed By:
' G.A, Patccson
• D'ucctor, Corporato Serviccs & Trcasurer
' RH:ds
Attachments
I:�ewndMqe7��oo.a« .
Copy: T.J. Quinn, ChiefAdministrutive OlLccr
Recocnmended for the coasidecation of Pickering
City Council
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� N/
omaa J. C f Adm� 'v 1T'icet '
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ATilt�HM�NT#�TO REPORT# �J�' P..� °`-1�� . . ' . .
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. - INTEROFFICE 14�MORANDUM ' ; .
' To: , Richud Holboro, City of Pickcring � �
• � ' From: Peter Watson, Region of Durhem '
, ' , Date: . . 7uly 21, 2000 .
ItE: ' DurhamPurcheeingCaopenHveTenderT-424-2000
As per Clause 14 of Pad "A", the intention of Ihe cooperalive'fender T-424
2000 wasto award to a single supplier forthe curbside collcedon of garbage,
organics, and special wastes in Ajax and Pickering, if Whitby decided not to
� award the comract. Whitby end AJax have decided not to award the contract
' and thus the Co-ope�ative Tender T-4242000 can not be awarded.
The City of Pickering mey be interested in apptoaching the loweri biddu, .
. Miller Weste Systems, separetely and independendy. The wntracaror may bo
intucsted in providing the seme waste collection services under the same
tertns, nondidops end unit pdces. If so,.the City of Pickering may wish to
consider awarding a private contract For thex�services.
Should you wish additiooal intormauon, please conWct ma
P. Wactan
Manager of Wute M�nagement
Ce: J. Lome, Supply & Services
J. McCorkell, Deputy Commissioner of Works
�ECEt1PE:�
JUL 21 2000
CITY OF PICKERING
A11111CPA�PPoDPEfITY 8 E'JCJ�EPWO .
�� TOTfY. PiiGE.02 �+
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