HomeMy WebLinkAboutWD-35-96" THE CORPORATION OF THE PlQNICIPALITY OF CLARINGTON
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REPORT
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File # ~
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Q
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Date; October 21, 1996 eS.
By-Law #
Report#: ~-3s-96 File#:
Subject: GARBAGE COLLECTION, 1997 - 2001
Recommendations:
Itis respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report WD-35-96 be received;
2. THAT the Council of the Municipality of Clarington supports the proposal by
Laidlaw Waste Systems Ltd. to establish a transfer station at .178
Darlington/Clarke Townline Road South, south of Highway No. 2 (the former
Ministry of Transportation of Ontario Works Depot);
3. THAT the Region of Durham be advised that the Municipality of Clarington
supports the establishment of a transfer station;
4. THAT the existingcontract for garbage collection, paragraph 24, Schedule D,~
Contract CL-94-36, be revised to refer to a negotiated rate per stop, rather
than a kilometre rate;
5. THAT Council approve a rate per stop of $2.88, amounting to a reduction of
approximately 3~ on the 1996 rate of $2.97 (projected 5.5~ reduction on the
1997 rates), to take effect upon commencement of operations at the transfer.
.station;
6. THAT a royalty be paid annually to the Municipality of Clarington amounting
to approximately $55,000 in 1997 from charges on all
Industrial/Commercial/Institutional (I.C.2.) waste passing through the
transfer station;
o..E.°®wE4.~,. ~ ~ O 1
REPORT NO.s WD-35-96 PAGB 2
7. THAT royalties paid be deposited into the General Capital Reserve Account No.
2900-17-X for Municipal Uses, as determined by Council through the annual
budget process;
8. THAT Contract CL-94-36 be extended for two (2) years, concluding co-
incidental with the Region's five (5) year contract on December 31, 2001;
9. THAT there be no increase in the contract price during the two (2) year
extension over and above the rate achieved through the application of the
Consumer Price Index (C.P.I.) adjustment, as identified in the existing
contract;
10. THAT the Purchasing By-law, Paragraph 5.06, be waived for tendering the
contract for the two (2) years beyond the existing agreement, Contract CL-94-
36; and
11. THAT Laidlaw Waste Systems Ltd. be advised of Council's decision.
REPORT
1.0 ATTACRDfENT
No. 1: Key Map
No. 2: Region of Durham Report 96-WR-9
No. 3: Correspondence from Laidlaw Waste Systems Ltd. dated October 16,
1996
2.0 SACKGROIIND
2.1 Region Disaosal Coatract Award
The current landfill site, Brock West in Pickering, will be closed on
November 30, 1996. As a result, the Region of Durham has been negotiating a
five (5) year contract for the disposal of waste for the area municipalities.
The Region of Durham awarded on September 3, 1996, through Report 96-WR-9
(Attachment No. 2), the contract for the disposal of Clarington's waste at a
cost of $66.25 per tonne to be tipped either at Pebblestone Multi-Services
Inc. in Whitby or at a negotiated transfer station site in Clarington.
Attachment No. 2 outlines the June 19, 1996, approved Region recommendation
that "the Region continue to negotiate with Laidlaw Waste Systems Ltd. to
provide a waste transfer facility in Clarington for Clarington's residential
solid waste".
1102
RBPORT NO.s 9QD-35-96
PAG$ 3
The Region of Durham has verbally advised staff that they have no objection
recommending approval of the 178 Darlington/Clarke Townline Road M.T.O. site.
to Regional Council, provided that the Municipality of Clarington approves
the transfer station.
The negotiated rate with Laidlaw Waste Systems Ltd. of $66.25 per tonne
represents a significant savings to Clarington through the Regional charges
for disposal. This rate, when averaged with the $71.75 and $70.75 being
charged at the other two (2) transfer stations (Pebblestone Multi-Services
Inc. in Whitby and Durham Materials Recovery in Pickering), lowers the
overall cost to the municipalities in the Region of Durham, thus providing a
benefit to all.
2.2 Muaioiyality of Claringtoa Negotiations
Staff has met with representatives of Laidlaw Waste Systems Ltd. to discuss
the options available under the existing contract and those associated with
the establishment of a transfer station site within Clarington. They have
agreed to the points covered in this report (see Attachment No. 3).
The current contract provides that, with a change in the disposal site, the
opportunity exists to negotiate a reduction or increase in the rate for the
difference in kilometres travelled to any new site. Because of the haulage
distances involved, the potential for savings is greater if Council were to
consider establishing a transfer station site in Clarington. If it is not
approved, further negotiations would be required to finalize a change to the
rate to dispose at the Pebblestone Multi-Services Inc. site in Whitby.
The current contract, which is for a five (5) year term from 1995 to 1999
inclusive, provides for an annual adjustment for the Consumer Price Index
(C.P.I.) to the original rate of $2.88 per stop/per month. This allows for
either an increase or a decrease to the per stop rate. The 1996 unit rate
per stop is $2.97 and is eligible for an adjustment again on January 1, 1997.
The January 1, 1997 rate is estimated at this time to be $3.04 based on an
estimated 2.5~ C.P.I. adjustment.
Three (3) issues were discussed regarding the opportunities to Clarington if
a transfer site is approved:
a) The per kilometre haulage rate negotiable under the existing contract;
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REPORT NO.: WD-35-96
PAGE 4
b) The anticipated additional Industrial/Commercial/institutional (I.C.I.)
sector waste at a transfer station.
c) The possibility of extending the existing contract for two (2) years to
coincide with the five (5) year term of the Region of Durham for
disposal; and
3.0 REVIEW AND COMMENT
3.1 A Traasfer Site Within Claringtoa
If Council approves the transfer station site within Clarington, it is not
approving a landfill site. The proposal is to bring waste to the site at
Darlington/Clarks Townline Road in the vicinity of the Highway 401/115
intersection, compact it and transfer it to larger vehicles for haulage to
Laidlaw Waste Systems Ltd. landfill site near Napanee.
The advantages to Clarington of a transfer site are:
a) Laidlaw Waste Systems Ltd.'s low bid for disposal, through the Region
of Durham contract, was put forward to provide Clarington with a low
disposal rate. This low disposal rate, when combined with the other
overall advantages of a transfer station, would be of financial benefit
to Clarington.
b) The location of the site within Clarington results in less haulage
distance for Laidlaw Waste Systems Ltd. under the existing contract.
This, in turn, provides an opportunity for Clarington to realize some
part of these savings.
c) Potential revenues to the Municipality of approximately $75,000 to
start, from a combination of royalties from I.C.I. waste and the "per
stop" rate negotiated (discussed in further detail below).
d) The residents of Clarington would have a site available to dispose of
waste within their Municipality rather than driving to Oshawa or
Blackstock. The potential exists for future revenue associated with
user fees for public access. If Clarington were to introduce user fees
for direct garbage disposal by individuals it would be in consideration
of the rates being charged elsewhere in the Region of Durham.
1104
RRPORT NO.s WD-35-96 PADS 5
3.2 The 8aulaae Rate
Staff has reviewed the options available under the existing contract if it
were to be opened up for negotiations of the "per kilometre" rate. A "per
kilometre" rate would remain unchanged throughout the remainder of the
contract; consequently, staff felt it to be in the Municipality's best
interest to look at a "per stop" rate which will prevail over an increasing
number of stops in the future.
The estimated savings potential under a negotiated "per kilometre" rate is
based mainly on unknown quantities and is, therefore, uncertain. Under the
negotiated "per stop" rate reduction, it is estimated that the annual savings
would be approximately $21,000, and these values are much more certain as
they are based on a known number of stops. As the municipality grows, the
annual savings will increase.
3.3 Royalty on Industrial/Commercial/Inatitutioaal (I.C.I.) Sector Waste
The maximum licensed capacity for the transfer site is expected to be 299
tonnes per day for five (5) years. Laidlaw Waste Systems Ltd. states that it
is not their intention to expand on this capacity, as the current legislative
requirements and environmental restrictions are too onerous and cost
prohibitive for that site. Clarington's waste is approximately 70 tonnes per
day, with the excess capacity being proposed to be utilized for I.C.I. waste.
Laidlaw Waste Systems Ltd. is proposing to provide Clarington an estimated
annual royalty of approximately $55,000 from charges on all I.C.I. waste
passing through the transfer station. This is a conservative estimate and is
expected to grow with increased usage of the site.
3.4 Two (2) Year Sxtenaion of L+xiating Contract
The prospect of waste service prices decreasing in the foreseeable future is
considered remote because of the extremely high savings realized through the
last tendered contract. Consequently, the opportunity to extend the present
contract for two (2) years with no rate increase is considered to be
advantageous to the Municipality.
In addition, the extension would bring the term of the contract in line with
the Region's Disposal Contracts terminating on December 31, 2001. This
extension also provides the Municipality with a secured position for waste
haulage and disposal for five (5) years. Otherwise, in having to tender
haulage in three (3) years time, when other contracts with the Region are
secure, may place the Municipality under greater pressure.
1105
RBPORT NO.: WD-35-96
PAGE 6
Laidlaw Waste Systems Ltd., faced with a five (5) year term, is then in a
position to capitalize their investment in the transfer station over a
five (5) year period.
4.0 CONCLIISION3
4.1 If Council endorses the transfer station within Clarington, the estimated
annual total savings are approximately $75,000 initially. It is estimated
that this amount will increase significantly over the five (5) year term
with increased use of the s}te by the Industrial/Commercial/Institutional
sector.
4.2 Should Council not endorse the transfer station, the Municipality will be
hauling waste to Pebblestone Multi-Services Inc. in Whitby. Under the
existing contract, there is some potential opportunity for negotiating a
reduced rate per kilometre; however, because the haulage distance change
is not significant, it is not anticipated to be as financially beneficial
to the Municipality.
4.3 If approved, Laidlaw Waste Systems Ltd. will be seeking approval from the
Region of Durham and M.O.E.E. licensing requirements and they anticipate
that it would be functional in the Spring of 1997.
Respectfully submitted,
~i~~J (/~C/~---~
Stephe A. Vokes, P.Eng.
Director of Public Works
Reviewed by,
W. H. Stockwell
Chief Administrative Officer
'e Marano, H.BSc., A.M.C.T.
Treasurer
NIId*SAV*DP*ph
October 16, 1996
Attachment
Laidlaw Waste Systems Ltd.
1126 Fewster Drive
Mississauga, ON L4W 2A4
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CIWAPINPOICL RI TTACHSDARLIWAMEP.WOR
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d, a ATTACHMENT NO. 1
MAP WD-35-96
KEY
1107
Municipality of Durham
Department
Commissioner's Report to Works Committee
Report 96-WR-9
Date September 3, 1996
ubbect
AGREEMENT FOR THE HAULAGE AND DLSPOSAL OF RESIDENTIAL SOLID WASTE
FROM THE MUNICIPALITY OF CLARINGTON
Recommendations
A THAT subject to the approval of the Finance and Administration Committee, the Region
enter into an agreement until December 31, 1999 with Laidlaw Waste Systems for the
haulage and disposal of approximately 13,400 tonnes per year of residential solid waste from
the Municipality of Clarington at a cost of $66.25 per tonne plus applicable taxes;
B. THAT the Regional Chair and Clerk be authorized to sign the above noted agreement.
Report
On June 19, 1996, the following recommendation was approved by Regional Council:
"That the Region cortinue to negotiate with Laidlaw Waste Systems Ltd. to provide a waste
transfer facility in Clarington for Clarington's residential solid waste."
Regional staff met with Laidlaw Waste Systems Ltd. on several occasions to negotiate such an
agreement. I,aidlaw Waste Systems Ltd. was prepared to make an offer to haul and dispose of all
of Clarington's residential solid waste, even if a waste transfer facility has not been approved or
established. They agreed to take the full responsibility for the transfer of waste from their collection
trucks, as they currently provide local garbage collection service to Clarington residents, to their
licensed disposal site near Napanee, Ontario.
On August 6, 1996, the Region received a signed contract offer from Laidlaw Waste Systems Ltd.
to provide the necessary haulage and disposal services for Clarington's waste. The offer included the
~ required certificates of insurance, agreement to bond, and a unit price to undertake the work.
'a They propose to utdize the existing transfer facilities at Pebblestone Multi-Services Inc. in Whitby
until they can establish their own facility in Clarington and the cost is $66.25 per tonne. Service is
to start on December 1, 1996 and continues until the gazbage collection contract between Laidlaw
and Clarington expires on December 31, 1999. It is estimated that Clarington generates
approximately 13,400 tonnes of residential solid waste per year.
.. ATTACHMENT N0. 2
- WD-35-96 WM1
ps
12
1108
Page
,._ Report 96-WR-9
Date September 3, 1996
Report (cont'd1
Regional Council on June 19, 1996 authorized the Region to enter into 5 year agreements with
Pebblestone Multi-Services Inc. and Durham Materials Recovery Facility Inc. for the transfer, haulage
and disposal of residential solid waste from all Area Municipalities except Clarington. These
agreements take effect on December 1, 1996 and the costs to transfer, haul and dispose of waste are
$71.75 per tonne and $70.75 per tonne, respectively.
The impact of this agreement in combination with other two waste agreements, the leaf and yard
waste contract, as well as the blue box recycling program will be examined this Fall as part of the
annual review of the Solid Waste Management Budget. This review will assist in the establishment
of the 1997 uniform systems rate for waste disposal.
This agreemerrt with Laidlaw Waste Systems will complete the Regional agreements for the haulage
and disposal of residential solid wastes for the next 3 to 5 years.
_~ ~ ~ ~=
J. S Lome, C.E.T., M.B.A., CPPO V.A Silgailis, F.Eng.
Man er of Supply & Services Commissioner of Wo
13
1109
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WASTE SYSTEMS L'I'D.
1126 Fewster Dave -
Mississauga, OMano
L4W 2A4 ~ -
Tel: (905) 624-8353
- Fax: (905)624-6050 - _ -
October 16, 1496
- The Cozpozation of the Town of Clatington
40 Temperance Street
$pwananvrlle, Ontario
Ll C 3A6
Atteutiori Steve Vokes P.Eng.
Subject Transfer Station I3iscussions
Dear Mr. Vokes,
The Town of C>arington and 7 aid}av have been tweeting on several occasions over the past
few months to discuss the possbilities o£Ioeatiitg a new transfer station at i78 Darlu>,gton /
Clarke Townline Road South in CIarington. Laidlaw has agreed to undertake all aspects of
permitting and sititzg this factTtty, and would do so with the understanding that the Town of
Clarington would support the application tluough the Re>r2ion and Iviinistry of the Envitnnment
and Energy.
~ tus Ietter wr~l serve as written confirmation of the iteres. as the have, discussed and weed
upon during our meeting. of Pziday Oetgbez 11, 1996.
Sistce the transfer station's primary use w;!it be for transferring the Towv's MSW, the two
parties have agreed to rrtaximize tha savings which will zesult from the siting ofthis facility.
The terms of our ageement.sre outlined as follotss:
1. the rate per stop as charged by Laidlaw to the Town will be zeduced £roxu the.. current
rate ofS2.97 to X2.88 upon commencement of.opetations at the above noted transfer
fact7ity
2. Laidlaw wHl pay the Town of CYarington the previously agreed upon. rate for any
Industrial /Commercial /Institutional waste that is transferred at this facility
-- _ ~ _ - - ATTACHMENTNO. 3
wD-35-96
£/Z 3:7 tYd '4I SId3S5 AS 3ZSVM MV`IOIV"I'W0213 b[9L 96-LL-0C
3.. the current reside.++tial collection contract between the Town and' Laidlaw w~71 be
extended by 2 years from December 31, 1999 to December 31,.2001
4. the' annual CPI as outlined in schedule .`~" (item 25.2) of the contract CL-9436 will
continue to apply
We at Laidlaw look forward to working with the Town of Clarington to continue to provide a
service of the highest quality and value.
%~ 5~ ~ _
~~ j / lJ- ~~G/ . .
Bruce R Mortensen
' Manager Municipal Markets.
E/E 3DVd 'QI SW3S SRS 3SSH^'. CV"IQ It!"I'W02Id bi'9L 96-LI-E'~[