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Home My WebLink AboutWD-59-92 V11,11 THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: JULY 6, 1992 Res. # Report#:__WD_-_53_-_92_ File #: By-Law# Subject: AMENDMENTS TO CONTRACT WITH BROWNING-FERRIS INDUSTRIES WASTE SYSTEMS FOR THE PROVISION OF GARBAGE COLLECTION SERVICES Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-59-92 be received; 2 . THAT Council pass the proposed By-law attached to Report WD- 59-92; and 3 . THAT Browning-Ferris Industries Limited Waste Systems be advised of Council's decision. ---------------------------------------------------------------- REPORT 1.0 ATTACHMENTS No. 1: Correspondence dated June 12, 1992, from Browning- Ferris Industries Waste Systems. No. 2 : Proposed By-law. 2.0 BACKGROUND 2 . 1 In 1988, Council entered into a contract with Browning-Ferris Industries to provide for the collection of garbage in the Town of Newcastle. The contact commenced on January 1, 1989, and terminates on December 31, 1993 . /2 REPORT NO. : WD-59-92 PAGE 2 2 .2 During budget discussions I advised Council that we were negotiating with Browning-Ferris Industries to share the pain with regard to the recession by reducing the annual increase for inflation which is provided for in the contract. 3.0 REVIEW AND COMMENTS 3 . 1 Following our discussions, Browning-Ferris Industries confirmed in correspondence dated June 12, 1992, their offer to forego the price increase for 1992, which is provided for in the contract. 3 .2 As noted in the letter, the estimated saving to the Town in 1992 is about $26,780. This means that the total savings for the Town would be about $54,000 since the contract has two (2) more years to run. 3 . 3 In exchange for foregoing the price increase in 1992, Browning-Ferris Industries are asking for three (3) changes to the contract: (a) Switching the collection of the Orono area from Wednesday to Friday. This change does not create any problems for the Town; (b) Change the collection of white goods in rural areas from pick-up once per week to pick-up once per month. Schedules are to be agreed upon between Browning-Ferris Industries and the Director of Public Works. i This change could result in a cost saving for Browning- Ferris Industries because of the long runs which must be made for picking up white goods in the rural areas . The once per month pick-up still provides excellent service. . . . /3 i i REPORT NO. : WD-59-92 PAGE 3 (c) An extension on the contract for a period of a minimum of one (1) year. In my opinion, Browning-Ferris Industries have provided excellent service. I, therefore, have no hesitation in recommending a one ( 1) year extension to the contract. Browning-Ferris Industries have even suggested a greater extension to the contract. However, I am not prepared to recommend this for two (2) reasons: (i) A two (2) year extension of the contract will go one ( 1) year beyond the term of Council; and (ii) Perhaps a future extension can be considered when some other change to the contract is found which would be mutually beneficial. 3 .4 Since the contract if extended will end at the end of Council 's term, B.F. I. has also agreed to include a clause in the amendment which will give the Town the right to extend the contract at the end of 1994 into 1995, month by month, for a period not to exceed six (6) months . Respectfully submitted, Recommended for presentation to the Committee, -t 1 Walter A. Evans, P.Eng. , Lawrence E. /seff, Director of Public Works Chief Admin.iltative Officer WAE:ph i June 23, 1992 i Attachments pc: Browning-Ferris Industries Eastern Lakes District 1 McKnight Road, P.O. Box 2398 Oshawa, Ontario L1H 7V6 I J6 VVbste Recycled paper ; Systems- BROWNING-FERRIS INDUSTRIES Eastern Lakes District June 12, 1992 Mr. W. Evans Director of Public Works Town of Newcastle 40 Temperance Street Bowmanville, Ontario L1G 3A6 Dear Mr. Evans : Further to our recent discussions, with yourself and Don Patterson, and per your request for Browning-Ferris Industries Ltd . to explore ways of keeping the costs of the Municipal waste collection service to a minimum, B.F . I . is pleased to propose the following: - The price increase due in January 1992 will not be applied. - The actual price, calculated under the price increase formula in our agreement should have been in the region of 2 . 50 . Using the current housecount (please see below and comparison) which indicates no increase and the increase provided by the contract and the resulting savings for the Town of Newcastle : - Current # Households - 15, 941 x Current Price $5 . 38 = $85 , 762 . 58 Current # Households - 15, 941 x Contract Increase $5 . 52 ( 2 . 5% ) $87, 994 . 32 Savings per month $2, 231 . 74 Annualised $26,780 . 88 Obviously, for us to make this proposal we have had to look at methods of lowering our costs and in conjunction with the above offer , we ask for the following assistance . 1 ) Switching the collection of the Orono area from Wednesday to Friday, which we also understand may also assist the current blue box collector . I 2) The collection of White Goods in Rural Areas to be scheduled for a monthly pick-up, schedules to be agreed between D. O' Leary and D. Patterson. E' ATTACHMENT N0. 1 WD-59-92 1 MCKNIGHT ROAD • P.O. BOX 2398 • OSHAWA, ONTARIO L1H 7V6 • (416) 433-5075 • FAX (416) 433-3896 Page 2 - Mr . W. Evans, Town of Newcastle 3 ) An extension on the contract between ourselves for a period of a minimum of 1 year and we would ask you to consider an even longer time frame. A) Assuming an establishment increase of 400 stops and a consumer price index rate increase of 2% the costs savings for 1993 , would be as follows. 1993 # of Households - 16, 341 x Current Rate $5 . 38 x 93 Increase 2% _ $89 ,712 . 09 1993 # of Households 16, 341 x 1992 Contracted Price $5 . 52 x 93 ( 2% Increase ) _ $91, 999 . 83 1993 Savings per month $2, 287 . 74 Annualised $27 , 452 . 88 A total savings of the two years is : $26, 780 . 88 + $27 , 452 . 88 = $54 , 233 . 76 I would like to continue the dialogue between B.F . I . and yourselves and continue the process of evaluating ways and means to control our expenses, improve productivity and therefore control future increases and therefore further savings which can be passed onto the Town. If you have any questions re : the above, please feel free to call . BROWNING-FERRIS INDUSTRIES LTD. is committed to continue to serve the Town, it ' s council and residents to the highest level . I Yours truly, BROWNING-FERRIS INDUSTRIES LTD. Eastern Lakes District i i Martin Irish District Manager MI/mla i C.C. D. Patterson D. O' Leary, Systems Supervisor , B.F . I . THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW 92 Being a By-law to amend By-laws 88-155 and 89- 176, By-laws to authorize the entering into of a Contract Agreement between the Corporation of the Town of Newcastle and Browning-Ferris Industries, WHEREAS the Council of the Corporation of the Town of Newcastle deems it expedient to amend By-laws 88-155 and 89-176 of the Corporation of the Town of Newcastle, being by-laws to authorize the entering into of a Contract Agreement between the Corporation of the Town of Newcastle and Browning-Ferris Industries; NOW THEREFORE, the Council of the Corporation of the Town of Newcastle, pursuant to Section 210 (83) of the Municipal Act, R.S.O. , 1980, ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk be authorized to execute, on behalf of the Corporation of the Town of Newcastle, and seal with the Corporate Seal, an amending contract agreement between Browning-Ferris Industries and the Corporation of the Town of Newcastle, dated this day of 1992, attached hereto as Schedule "A" and forming part of this by- law. 2. THAT this by-law not take effect until approved by the Ontario Municipal Board, pursuant to Section 64 ( 1) of the Ontario Municipal Board Act. BY-LAW read a first and second time this 13th day of July, 1992 . BY-LAW read a third time and finally passed this 13th day of July, 1992. MAYOR I CLERK ATTACHMENT N0. 2 WD-59-92 SCHEDULE "A" TO BY-LAW 92- THE CORPORATION OF THE TOWN OF NEWCASTLE TO THE AGREEMENT made on December 16, 1988 BETWEEN: The Corporation of the Town of Newcastle hereinafter called the "Town" and Browning-Ferris Industries hereinafter called the "Contractor" WHEREAS the Town and the Contractor have entered into an agreement for the collection of garbage in the Town; AND WHEREAS it has been agreed between both parties to amend the agreement; NOW THEREFORE be it agreed that the agreement made on December 16, 1988, be amended as follows: 1. Clause 11.01(b) of the agreement shall not apply to the rate per stop in 1992. In subsequent years, the rate change shall be calculated in accordance with Clause 11.01(b) for each year but shall only apply for the year in question. 2. The collection day for the Orono area shall be changed from Wednesday to Friday. 3. The collection of white goods in the rural areas shall be scheduled for once per month. 4. The contract between the Town of Newcastle be extended for one (1) year from December 31, 1993 to December 31, 1994. x ` 5. The Town shall have the right to extend the contract at the end of 1994 into 1995, month by month, for a period not to exceed six (6) months. IN WITNESS WHEREOF the Parties have hereunto affixed their corporate seals, attested to by the hands of their proper officers in that behalf fully authorized. SIGNED, SEALED AND DELIVERED this day , 1992. The Corporation of the Town of Newcastle MAYOR Seal CLERK Browning-Ferris Industries I I �1F1 � I