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HomeMy WebLinkAboutOES 17/01 - ~ REPORT TO COUNCIL FROM: Richard W. Holborn DATE: June 8, 2001 Division Head, Municipal Property & Engineering REPORT NUMBER: OES 017-01 SUBJECT: Contract for Waste Collection Services Miller Waste Systems RECOMMENDATION: It is recommended that Report OES 017-01 from the Division Head, Municipal Property & Engineering be received and that: 1. Resolution #120100 be rescinded; and 2. The City of Pickering enter into a contract with Miller Waste Systems for curbside and bulk lift residential waste collection, curbside yard waste and Christmas tree collection and City Facility waste and recyclable material collection for a term to end March 31, 2009; and 3. The appropriate officials of the City of Pickering be given authority to give effect thereto. - ORIGIN: Report MPE 21/00 from the Division Head, Municipal Property & Engineering and Addendum memorandum dated August 17,2000. AUTHORITY: Resolution #120100 ofthe Council of the City of Pickering. FINANCIAL IMPLICATIONS: The term of the contract is 102 months for residential collections and 96 months for City Facility collections with an expiry date for both services on March 31, 2009. Funds required will be budgeted annually within current budgets for solid waste and the appropriate City Facilities. The annual cost is approximately $1.4 million. EXECUTNE SUMMARY: N/A - Report to Council OES 017-01 Date: June 8, 2001 Subject: Contract for Waste Collection Services Miller Waste Systems Page 2 ,.. BACKGROUND: The City's residential solid waste and yard waste collection contracts expired September 30, 2000. In preparation for the expiration of contracts, the City was involved in a joint co-operative tender through the Region of Durham with the Town of Ajax and the Town of Whitby. The City was not able to award a contract through this tender as it was the only municipality willing to do so. A Special Council meeting was held on August 21, 2000 to consider Report MPE 21/00 and an addendum memorandum dated August 17, 2000. At that meeting, Council passed the following Resolution #120/00. "1. That Council acknowledge that Region of Durham Co-operative Tender-T-424-2000 cannot be awarded, as Whitby and Ajax have decided not to award a contract at this time and the Tender Call cannot be completed with only one participant. 2. That staff be directed to negotiate with Miller Waste Systems, the low bidder on the above tender, a contract effective October 1, 2000 based upon the current level of service for the collection of Curbside Solid Waste and Yard Waste on terms appropriate and beneficial to the City of Pickering for a term nf!t less than 6 months and not greater that 66 months. (The Town of Ajax will be able to participate effective April 1, 2000 if they so choose). ,- 3. The Chief Administrative Officer and appropriate staff of the City of Pickering be given the authority to give effect thereto. " Negotiations commenced with Miller Waste Systems with an initial meeting on August 29,2000, based on the terms in the Council Resolution. In September 2000, Miller provided some preliminary prices for discussion. Miller's original pricing was premised on an increased cost (premium) should the Town of Ajax not participate as of April 1,2001. It was decided that the solicitors for Miller Waste Systems would draft a contract. The City's specifications, and by-law would be included as schedules. As discussions and negotiations advanced, it was feasible, and in the City's best interest financially, to expand the scope of collection to include bulk lift residential waste and City facility collection of waste and recyclable materials. Once the contract costs and specifications for service delivery were generally understood and agreed upon, collections commenced on October 1, 2000 in order to provide uninterrupted service to the residents of Pickering. However, wording for the contract was still in the preliminary stages. Over the next several months, the solicitors for the City and Miller were responsible to prepare and agree on wording. Several drafts and discussions took place, in an effort to reduce and simplify the contract language. In January 2001, the Town of Ajax made it known that they were going to award a contract to J&F Waste Systems for a 60 month term and therefore, would not be contracting Miller Waste Systems. The City of Pickering, in order to mitigate the cost increase (premium), re-opened negotiations with Miller. - Miller suggested that if an option for a contract extension beyond 66 months was included, the cost increase due to Ajax not participating could be reduced, but there would still be an increase per tonne collected. Subsequently, after much discussion, Miller was able to offer no increase in cost in return for a longer contract (102 months). This second offer would save the municipality a substantial amount of money in its annual collection costs over the term of the contract. Report to Council 0 ES 017 -0 1 Date: June 8, 2001 Subject: Contract for Waste Collection Services Miller Waste Systems Page 3 -- Due to the addition of collection services to the contract, the negotiation of prices and contract term, the requirement to revise and add specifications, annual indexing formula discussions, and the involvement of the solicitors, the finalizing of the contract took much longer than anticipated. Staff were not concerned about the ability or willingness of Miller to provide the service in the interim. Documentation such as insurance, WSIB Clearance, and bonding arrangements were provided at the onset. City staff and Miller Waste Systems have negotiated in good faith in order to develop contract terms and language that is mutually agreeable. In accordance with Resolution #120/00, the City staff are of the opinion that the terms are appropriate and beneficial to the City of Pickering. Current levels of service are being maintained. However, in order to get the best deal for the City, the term of the contract will be longer than the 66 months directed by Council. This report is to advise Council that negotiations have been successfully completed, and a contract for 102 months is ready to be signed, should Council agree with the longer term. It is recommended that Council rescind Resolution #120/00 and approve a resolution to enter into a contract with Miller Waste Systems that involves a longer term and additional services. Hil!:hlil!:hts of the Contract Curbside Collection of Residential Waste - . 102 months (October 1, 2000 - March 31, 2009) . $49.05 per tonne . weekly collection (Tuesday - Friday) . 4 item limit plus up to 2 bulky items per stop Curbside Collection of Yard Waste . 102 months (October 1,2000 - March 31, 2009) . $109.10 per tonne ($141.41 per tonne from April 1, 2001) . 25 collections per year (including 2 collections for Christmas trees) . no limits Bulk lift Collection of Residential Waste . 102 months (October 1, 2000 - March 31, 2009) . $10.24 per location per collection stop . biweekly collection (Mondays/Thursdays) City Facility Collection - Waste . 96 months (April 1 , 2001 - March 31, 2009) . cost per lift varies by container size . disposal fee $75.00 per tonne City Facility Collection - Recyclables - . 96 months (April 1 , 2001 - March 31, 2009) . $780 per site per year . includes disposal fee Report to Council OES 017-01 Subject: Contract for Waste Collection Services Miller Waste Systems - Date: June 8, 2001 Page 4 General Provisions of the Contract . contractor to provide new equipment for curbside collection of residential waste . contractor to supply all bulk lift and recycling containers . costs are indexed annually using CPI . fuel surcharge clause included ATTACHMENTS: N/A Approved / Endorsed By: Prepared By: - ~~cz --~_ '-.:aiilis A. Paterson Director, Corporate Services & Treasurer RH:ds Copy: Chief Administrative Officer I:\COUNClL\OES-017-0I.DOCJun-OI Recommended for the consideration of Pickering City Council Thomas 1. Quinn, Chief Administrative Officer - Ev e un ma Director, Operations & Emergency Services