COMMITTEE OF THE WHOLE REPORT: Extension of the Residential Garbage and Organics Collection Contract
Report recommending the extension of the waste collection contract with Waste Management for two additional one-year terms.
TOWN OF VIEW ROYAL
COMMITTEE OF THE WHOLE REPORT
TO: Committee of the Whole FROM: J. Smith, Engineering Clerk DATE: May 6, 2019 MEETING DATE: May 14, 2019
Extension of the Residential Garbage and Organics Collection Contract
RECOMMENDATION:
THAT the Committee recommends that Council authorize the extension of the Residential Garbage and Organics Contract with Waste Management of Canada Incorporated for two one-year extensions, for the period June 1, 2020 to May 31, 2022, as per the Service Fees outlined in the 2014-2020 contract, plus annual CPI adjustment.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
DIRECTOR OF FINANCE COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To obtain Council’s approval to extend the Town’s Residential Garbage and Organics Collection contract with Waste Management.
TIME CRITICAL:
The existing contract stipulates that Waste Management be notified of the decision to approve the extension no later than June 1, 2019, though Waste Management has agreed to extend this deadline to December 31, 2019.
BACKGROUND:
Waste Management assumed the Town’s Residential Garbage and Organics Collection contract in 2009, when they purchased RDI, the existing contractor for the Residential Garbage and Organics Collection contract. At that time the contract was revised to a three-year term expiring May 31, 2012, with a two-year extension expiring May 31, 2014. A new contract was then awarded to Waste Management for a six-year term from June 1, 2014 – May 31, 2020 with two one-year options to extend, thereby extending the contract to May 31, 2022.
During the initial contract in 2009 Waste Management agreed to honour RDI’s prices with annual CPI adjustments, for both the initial contract, as well as extensions. This rate continued into the 2014-2020 contract, with an adjustment in 2015 that provided the ability for the Town to purchase the containers from Waste Management at the end of the contract. The Town now owns the containers that are provided to residents.
PROJECT INFORMATION:
Waste Management has done an excellent job of providing the residential collection service for the past several years. Waste Management has optimized their customer service model under the current contract with few issues.
As well, Waste Management has partnered with the Town in providing a CNG vehicle for the residential collection component. Because of the comparably low prices for garbage collection in the current contract (see attached), staff recommends the extension of the current contract, i.e., that the Town not prepare a tender for a new contact at this time.
BUDGET IMPLICATIONS:
Current rates for years five and six of the existing contract, as well as the 2 extension years, based on an estimated 2.5% CPI adjustment in both years of the extension:
| Current year | Final year | Year 1 extension | Year 2 extension | |
|---|---|---|---|---|
| Curbside Collection | $107.28 | $109.32 | $112.05 | $114.85 |
| On-site Collection | $151.17 | $154.19 | $154.19 | $154.19 |
Notes:
- “On-site” collection fee does not increase for the extension period;
- the contract fees do not include the tipping fee costs associated with the disposal of both waste streams. The current rate per ton for tipping fees charged by the CRD is $110 for solid waste, and $120 for food waste.
- The garbage user fee is adjusted each year to recover the cost of these fees and associated costs.
POLICY IMPLICATIONS:
There are no proposed policy changes at this time.
SUSTAINABILITY CONSIDERATIONS:
Waste Management has provided Town residents and Town staff with consistent service that has been achieved by retaining well-trained, knowledgeable staff and providing reliable equipment. Concerns are dealt with promptly and professionally.
ALTERNATIVES TO STAFF RECOMMENDATION:
THAT the Committee recommends to Council that staff proceed with preparing a new tender for the collection of residential garbage and household food waste.
RECOMMENDATION:
THAT the Committee recommends that Council authorize the extension of the Residential Garbage and Organics Contract with Waste Management of Canada Incorporated for two one-year extensions, for the period June 1, 2020 to May 31, 2022, as per the Service Fees outlined in the 2014-2020 contract, plus annual CPI adjustment.
SUBMITTED BY: Jennifer Smith, Engineering Clerk
REVIEWED BY: John Rosenberg, Director of Engineering
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