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HomeMy WebLinkAboutFSD-027-22Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 6, 2022 Report Number: FSD-027-22 Submitted By: Reviewed By: File Number: Report Subject: Trevor Pinn, Deputy CAO/Treasurer Mary-Anne Dempster, CAO Resolution#: GG-238-22 CL2020-16 By-law Number: Waste and Recycling Collection and Disposal – Road Sweepings Recommendations: 1.That Report FSD-027-22 and any related delegations or communication items, be received; 2.That the current agreement with GFL Environmental Inc. be amended to include the pick-up and disposal of Road Sweeping Waste as required by the Public Works Department. The estimated contract value per year is $492,229.42 (Net HST Rebate). Tender CL2020-16 has two optional one-year extensions available if utilized the three-year value for the disposal of road sweepings would be approximately $1,476,688.26 (Net HST Rebate); 3.That the funds required for this service be funded from the following operating account as approved by the budget: Description Account Number Amount HRDTOP MNTCE / SWEEPING / WASTE DISPOSAL 100-36-381-10260-7165 $492,229 4.That pending satisfactory service and pricing that the Purchasing Manager in consultation with the Director of Public Works be authorized to extend the contract for up two additional one-year terms; and 5.That all interested parties listed in Report FSD-027-22 and any delegations be advised of Council’s decision. Municipality of Clarington Page 2 Report FSD-027-22 Report Overview To amend the existing waste agreement with GFL Environmental Inc. to include the pick-up and disposal of road sweeping waste. 1. Background 1.1 Street sweeping debris commonly includes litter, dirt, grass, leaves, and other vegetative matter. The sweeping debris may also contain pollutants including oil and grease, metals, sediment, paint, solvents, and automobile fluids, as well as phosphorus and nitrogen from vegetation, lawn fertilizer, and animal waste. Testing conducted within Ontario by the MOECC found some street sweepings contained a concentration of arsenic and other contaminants that can be dangerous to human health. 1.2 The Ministry of Environment (MOE) has in place strict requirements for the proper disposal of street sweepings to ensure responsible management and use of street sweeping debris to protect the public health and the environment by preventing it from contaminating ground water, surface water or soil. 1.3 It is the MOE’s position that the Street Sweepings are waste, as defined in the Environment Protection Act (EPA) and described in the Ministry’s General Waste Regulation, O. Reg. 347. The regulation provides various exemptions that allow wastes to be reused, recycled, etc. under specific circumstance without the need for environmental compliance approvals. However, there is no specific exemption regarding street sweepings. 1.4 The Municipality is able to store street sweeping debris temporarily, for up to six months, before disposal or use at a local transfer facility as per MOE definition; therefore, Hampton Depot can be used as a local transfer facility without an Environmental Compliance Approval (ECA) requirement with specific conditions, i.e., (1) in a covered container, or (2) on an impervious surface, covered with a waterproof material (i.e., tarpaulin or 10-mil plastic sheeting), and contained within the area (i.e., by berming the area), etc. The containment must be maintained for the duration of the storage period to prevent contaminant volatilization, runoff, run-on, leaching or fugitive dust emissions. Storage should not occur in an area where the material will wash into wetlands or waterways. 1.5 The above requirements are included with remediation work on the east side of Hampton Depot. The Public Works Department is anticipating that a drying pad will be installed with oil grit separators (OGS) for added environmental protection. Municipality of Clarington Page 3 Report FSD-027-22 2. Analysis 2.1 Tender CL2020-16 was prepared, issued and awarded in 2020. (Report: PS-007-20). This tender was for the pick-up and proper disposal of waste and recycling departments and included optional pricing for the pick-up and disposal of both organic waste and road sweeping debris. 2.2 At the time of the award in 2020 it was decided that the Municipality would not include the optional items; however, as a result of a recent change in the Provincial Legislation that now requires street sweeping materials to be disposed of properly it is being recommended that the Municipality include the removal and proper disposal of Road Sweeping waste. 2.3 Public Works anticipates the installation at drying pad with oil grit separators for increased environmental protection at Hampton Operations Centre. The process of drying the material prior to disposal will help by reducing the overall weight thereby reducing the overall disposal cost. 3. Financial 3.1 The estimated cost has been based on 5,236 tons of waste per year with a cost disposal cost of $79.37 per ton (Net HST Rebate). Averaging 8 tons per lift the total number of lifts required would 655 at $117.02 per lift (Net HST Rebate). Based on the aforementioned estimates the annual cost is approximately $492,229.42 (Net HST Rebate). 3.2 The funds required would be funded by the approved 2022 Public Works operating budget for the disposal of the waste. Based on estimated volumes that Public Works collect with the sweepers the annual cost is estimated to be $492,229.42 (Net HST Rebate). the funds required for this service be funded from the following operating account as approved by the budget: Description Account Number Amount HRDTOP MNTCE / SWEEPING / WASTE DISPOSAL 100-36-381-10260-7165 $492,229 3.3 If the contract is extended for the two optional one-year terms the total three-year cost for the pick-up and disposal of the Road Sweeping Waste is estimated to be $1,476,688.26 (Net HST Rebate). Municipality of Clarington Page 4 Report FSD-027-22 4. Concurrence This report has been reviewed by the Director of Public Works who concurs with the recommendations. 5. Conclusion It is respectfully recommended that the agreement with GFL Environmental Inc., tender CL2020-16, be amended to include the pick-up and disposal of road sweeping waste. Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 Ext. 2209 or dferguson@clarington.net. Or Brett Novak, Manager of Operations, 905-623-3379 Ext. 2909 or bnovak@clarington.net Attachments: Attachment 1 - PS-007-20 Interested Parties: List of Interested Parties available from Department. Report Purchasing Services Corporation of The Municipality of Clarington 40 Temperance Street, Bowmanville, Ontario L1C 3A6 T (905)623-3379 Date: July 15, 2020 To: Andrew Allison, Chief Administrative Officer From: David Ferguson, Purchasing Manager, Purchasing Services Report#: PS-007-20 File#: CL2020-16 Subject: Waste and Recycling Collection and Disposal Summer Recess Procedure (Purchasing By-Law 2015-022 S.73 Recommendations It is respectfully recommended to the Chief Administrative Officer the following: 1.That GFL Environmental Inc. with a total bid amount for the initial two year term of $222,608.56 (Net HST Rebate), and an estimated contract value of $556,521 (Net HST Rebate) over the potential five-year term, being the lowest compliant bidder bidding all items and meeting all terms, conditions and specifications of Tender CL2020-16 be awarded the contract for the pick-up and disposal of waste and recycling as required by the Municipality; 2 That the funds expended for these services, be funded from respective facilit ies approved operating budget as required; and 3.That pending satisfactory service and pricing that the Purchasing Manager in consultation with the Acting Director of Operations, the Director of Community Services and the Director of Emergency and Fire Services be authorized to extend the contract for up to three additional one-year terms. Attachment 1 to Report FSD-027-22 July 30, 2020 Report No: PS-007-20 Page 3 1. Background 1. Tender specifications for the pick-up and proper disposal of waste and recycling from the municipally owned and operated facilities were prepared by the various departments and provided to the Purchasing Services Division . 2. Tender CL2020-16 was prepared and issued by the Purchasing Services Division and advertised electronically on the Municipality’s website. Notification of the availability of the document was also posted on the Ontario Public Buyers Association’s website. Twelve companies downloaded the tender document. 3. The Tender closed on May 29, 2020. 4. In view of the Summer Council Recess, authorization is requested to award the above contract in accordance with Purchasing By-Law #2015-022 Part 2 Section 73, Council Recess Procedures. 2. Analysis 5. Twelve companies downloaded the tender document and four submissions were received in response to the tender call. Three bidders priced all the items contained within the tender document. One company priced only two of the nine items. The tender notes that the Municipality intends to award the contract to one bidder, however, the Municipality reserves the right to award the Tender in part or in whole or to split Items specified between one or more bidder. 6. The eight companies who chose not to submit pricing were contacted to ask why they decided not to bid. The responses are as follows: ▪ One company was an association for distributing the tender document to its members; ▪ One company was a supplier for the containers; and ▪ Six company did not respond to our request for information 7. The bids were reviewed and tabulated by the Purchasing Services Division (see Attachment 1). 8. The bid results were forwarded to the Operations Services Department, Community Services Department and Emergency and Fire Services Department for their review and consideration. 9. After review, analysis and discussions the departments mutually agreed that the low bidder bidding all items, GFL Environmental Inc., be recommended for the award of contract CL2020-16. 10. GFL Environmental Inc. has successfully provided similar services to the Municipality of Clarington in the past therefore no reference checks were completed. Report No: PS-007-20 Page 4 3. Financial 12. The annual cost is approximately $111,304.28 (net HST Rebate). The initial contract term is for two years. The value of the contract for the two-year period is estimated to be $222,609 (net HST Rebate). 13. Pricing received is firm for the initial contract term of two years. 14. The Municipality has the option to extend the contract for up to three additional one-year terms pending satisfactory service. The tender document stipulates that if the Municipality elects to exercise the option to renew the contract for the additional optional one-year terms, then pricing shall be adjusted only on the anniversary date of the Contract award. Proposed price increases should not exceed the annual percentage change in the most recent issuance of the Consumer Price Index (CPI) All items – Ontario, as issued by the Statistics Canada, and remain firm for the rest of that Contract year. The potential five-year contract value is estimated to be $556,521 (Net HST Rebate). 15. The expended funds will be drawn from respective facilities approved operating budget. 16. Queries with respect to the department needs should be referred to the respective Department Head. 4. Concurrence 17. This report has been reviewed by the Acting Director of Operations, the Director of Community Services as well as the Director of Emergency and Fire Services concur with the recommendations contained with this report. 5. Conclusion 18. It is respectfully recommended that GFL Environmental Inc. with a total bid amount, for the initial two year term, of $222,608.56 (Net HST Rebate), being the lowest compliant bid, bidding all items, be awarded the contract for the provision of waste and recycling collection and disposal as per the terms, conditions and specifications of Tender CL2020-16. Attachments: Attachment 1 – Summary of Bid Results Report No: PS-007-20 Page 5 Attachment #1 Municipality of Clarington CL2020-16 Waste and Recycling Collection and Disposal Bid Summary Annual Cost BIDDER Total Bid (including HST) TOTAL BID (Net HST Rebate) Waste Connections* $38,127.10 $34,519.07 GFL Environmental Inc. $123,706,89 $111,304.28 U-Pak Disposals (1989) Limited $135,424,.43 $119,921.99 Waste Management of Canada Corporation $141,424.43 $127,039.03 * Denotes submission whereby not all categories/items have been bid. Costs for Initial 2-year contract term. BIDDER 2-year Total Bid (including HST) Est 2-year Total Bid (Net HST Rebate) Waste Connections* $76,254,21 $69,038.14 GFL Environmental Inc. $247,413.77 $222,608.56 U-Pak Disposals (1989) Limited $270,848.85 $239,843.97 Waste Management of Canada Corporation $282,572.77 $254,078.05 * Denotes submission whereby not all categories/items have been bid.