HomeMy WebLinkAboutWD-53-91 TOWN OF NEWCASTLE
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� � REPORT File
(_ ��' Res. #
By-Law #
MEETING. GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
DATE: JUNE 17, 1991
REPORT #: WD-53-91 FILE #: 0. 30 . 01
� �. JOINT REQUEST OF AREA MUNICIPALITIES TO THE REGION REGARDING
FUNDING OF BLUE BOX RECYCLING PROGRAM
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report WD-53-91 be received;
2 . THAT the Regional Municipality of Durham be requested at the
earliest opportunity and prior to the summer of 1991 to confirm its
continuation of program funding for the collection of blue box
recyclables in Area Municipalities for the period extending beyond
December 31, 1991;
3 . THAT the Town of Newcastle in conjunction with other Area
Municipalities, be authorized to negotiate for the interim service
of blue box collection, including the option of an extension of the
existing contract with Muscillo Transport Limited, if necessary,
for the period between December 31, 1991, the date the existing
collection contract with Muscillo Transport Limited expires, and
the commencement date of the proposed long term blue box collection
contract, for subsequent approval of their respective Councils; and
. . .2
REPORT NO. : WD-53-91 PAGE 2
4. THAT the Region of Durham be advised of Council's decision and be
provided with a copy of Report WD-53-91.
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REPORT
1.0 ATTACHMENTS
No. 1: Report WD-89-90 - Blue Box Recycling Program
2.0 BACKGROUND
2 . 1 On October 29, 1990, Council approved the recommendation in Report
WD-89-90 which stated:
"THAT the Region of Durham be advised that the Town
of Newcastle accepts the operational responsibility
for blue box collection from December 1, 1990 to
December 31, 1991 in accordance with the terms
contained in the Regional Council Resolution of
October 17, 1990 in this regard. "
2 .2 Tenders were called for a joint contract to provide Blue Box pick-
up and a contract was awarded to Muscillo Transport Limited
extending from December 1, 1990 to December 31, 1991.
2 . 3 The Problem
The problem is that, because of the lead time required to purchase
equipment, a tender must be called in the near future for
continuation of the blue box recycling program.
However,
at this point, the Region of Durham has not confirmed that
they will continue fundincx the collection of recyclables past
December 12. 1991.
. . . 3
C: l .�
REPORT NO. : WD-53-91 PAGE 3
3.0 REVIEW AND COMMENT
3 . 1 Preparation of a Loner-term Blue Box Recycling Contract
3. 1. 1 The Area Municipalities and Region of Durham have been meeting to
review refuse disposal issues and the preparation of a long-term
blue box recyclable collection contract. As a result of these
discussions, tender documents are now being prepared based on the
following principles :
1 . One joint tender call will be issued by the Area
Municipalities providing for a uniform price for each
participating Municipality. The contractor will be required
to enter into a separate agreement with each Municipality.
2 . Tenders will provide for once per week and once per two week
collection alternative prices .
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3 . Tenders will be called by invitation so that only experienced
and capable contractors are invited to bid.
4 . The tender provides for curbside blue box collection of
recyclables only and does not include recyclable collection
from sites currently receiving private property collection.
It is proposed that these sites will be handled through the
Region's Igloo Program and other methods being discussed by
the Region and the Area Municipalities .
5 . Recyclable material to be collected will include newspapers,
metal, cans, glass jars or bottles, P.E.T. soft drink
containers and corrugated cardboard. Discussions are also
being held with the Region for the inclusion of telephone
books, mixed plastics, magazines and mixed paper.
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REPORT NO. : WD-53-91 PAGE 4
6 . The Region of Durham will continue to operate a
separation centre for the recyclable materials which
cannot be delivered directly from collection routes to
a reuser facility.
7 . The Region of Durham will continue to bulk purchase blue
boxes for distribution to the Area Municipalities .
8 . The contract will run for a five-year-term to allow for
a reasonable time-frame for the contractor to write-off
appropriate capital acquisitions.
While it is currently anticipated that the tender documents can be
finalized for a tender call within the next few weeks, the contract
should not be awarded until the fundamental issue of funding is
resolved. The above process would be implemented only if the
Region continues to pay for the service for the period following
December 12, 1991.
3 . 1.2 Costs for Blue Box Collection
The 1991 cost for blue box collection to the Town will be about
$210,000. This cost is for the tipping fee only at the Durham
Recycling Centre.
The 1991 cost to the Region, for collection of the blue boxes for
the Town of Newcastle will be about $142, 000.
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3. 1. 3 Existincr Fleet of Recyclable Collection Vehicles Needs to be
Replaced
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The existing fleet of recyclable collection vehicles, which are
owned by the Region and are being used by Muscillo Transport
Limited, has aged to a point that staff from the Area
Municipalities and the Region feel it is prudent to require the
provision of new vehicles with the new contract.
. . .5
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REPORT NO. : WD-53-91 PAGE 5
This would be part of the tender approach outlined in Section
3 . 1. 1. above subject, of course, to the Region continuing funding
of same collection services . At least two months will be required
for the tender and award period of the contract and the successful
contractor will then require approximately 5-6 months for the
order, manufacture and delivery of his vehicles. A tender call by
the end of June, therefore, implies the new contractor would not
be able to commence work until April 1, 1992 . An interim
collection service contract or an extension of the existing
contract with Muscillo Transport may therefore be a required option
during the interim period. The leasing of existing Regional
vehicles to the successful contractor until delivery of their new
vehicles is also a possibility.
3. 1.4 Area Municipalities May Wish to Call Individual Contracts
If the Region of Durham advises it will no longer continue with
program funding, it is possible that some Area Municipalities may
wish to call individual contracts in order to have a more direct
control over a program they are responsible for funding.
4.0 CONCLUSIONS
4 . 1 A decision from the Region on funding is now crucial relative to
the tender call for a new contract.
Respectfully submitted, Recommended for presentation
to t ,-- Committee,
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Walter A. Evans, P.Eng. , Lawrenc E. Kotseff,
Director of Public Works Chief f�nistrative Officer
WAE*llv
June 5, 1991
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Attachment
pc: Region of Durham
105 Consumers Drive
Whitby, Ontario
L1N 6A3
REPORT #3
TOWN OF NEWCASTLE
REPORT
Fi le #
t Cti
Res. #
By-Law #
MEETING: COUNCIL
DATE: OCTOBER 29, 19 9 0
P PORT #: WD-89-90 FILE #:
SUB,JECT, BLUE BOX RECYCLING PROGRAM
RECOMMENDATIONS:
It is respectfully recommended that Council approve the following:
1. THAT Report WD-89-90 be received;
2 . THAT the Region of Durham be advised that the Town of
Newcastle accepts the operational responsibility for blue box
collection from December 1, 1990 to December 31, 1991 in
accordance with the terms contained in the Regional Council
Resolution of October 17, 1990 in this regard; and
3. THAT a copy of Report WD-89-90 be forwarded to Mr. C. W.
Lundy, A.M.C.T. , Regional Clerk.
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REPORT
1 . 0 ATTACHMENT
No. l: Report WM90-42 to the Waste Management Committee
dated October 17 , 1990 .
2.0 BACKGROUND
2 . 1 Blue Box Recycling Program Started in 1986
In 1986, Durham Region started a Blue Box Recycling Program
which includes the recycling of old newsprint, tin or steel
cans, aluminium cans, glass containers and P.E.T. soft drink
containers .
ATTACHIENT N0, 1
1 Wig-53-91 '
. . . 2
REPORT NO. : WD-89-90 PAGE' 2
The program has been in effect in the Town of Newcastle since 1987
and provides blue box collection for 9,201 residences located ii
Courtice, Bowmanville, Newcastle and Orono.
About 1500 tonnes of recyclables are collected in the Town each
year under the Blue Box Program.
2 . 2 Contract With Durham Recycling Centre Incorporated
Durham Region and the Province established and funded Durham
Recycling Centre Incorporated and Durham Region entered into a
contract with Durham Recycling to provide collection and processing
of the recyclable materials .
Durham Region owns 18 trucks which are used for collecting the
recyclable materials and the materials are processed at a
processing plant located on Garrard Road in Whitby.
The contract between. Durham Region and Durham Recycling Inc . will
be terminated on December 1, 1990 .
2 . 3 Funding For the Blue Box Program
The cost for the blue box recycling program, .which is more than
$200/tonne, is paid for by the Region, the Province, revenues from
the sale of recyclables and by a tipping fee of $83 . 33/tonne which
is paid by the area municipalities to the Region for each tonne o'
material collected from the blue boxes .
2 . 4 Region Proposes to Make the Blue Box Program Self-supporting
The Region's 1990 Solid Waste Management Program included the
following item:
"THAT the Region of Durham explore with the Area
Municipalities the concept of making the recycling
operationself-supporting through the implementation
of a blue box collection fee ( in addition to the
present recycling tipping fee) to fund the
collection costs related to the blue box recycling
program and be charged to those Area Municipalities
which choose, to contract this collection service to
Durham Region. "
2 . 5 Meetings With Regional Staff
Since waste collection is under the jurisdiction of the area
municipalities , staff of the Region approached staff of the area
municipalities requesting their review and decision on the method
of blue box collection.
�p 3
REPORT NO. : WD-89-90 PAGE 3
Several meetings were held with staff of the Area Municipalities
and the Region to discuss how the Area Municipalities preferred to
proceed to continue the blue box collection in light of Durham
Recycling terminating their operation as of December 1, 1990 .
A censuses was reached that the operational responsibility for blue
box collection should be an Area Municipality responsibility and
that a co-operative tender be called to obtain bids from
contractors to provide the service.
2 . 6 Decision of Regional Council - October 17, 1990
On October 17, Regional Council adopted the following amended
recommendations of the Waste Management Committee (refer to Report
contained in Attachment No. l) :
"a) THAT Durham Region agree to the request from Durham
Recycling Centre Inc. (DRC) to extend the DRC
contract to December 1, 1990, in order to allow DRC
to wind down operations; and
b) THAT in order to ensure uninterrupted operation
of the blue box recycling program after
December 1, 1990, Durham Region endorse the
following interim recycling action plan:-
Collection
i) Effective December 1, 1990, the area municipalities
will assume direct operational responsibility for
blue box collection;
ii) Durham Region will continue to finance all blue box
collection costs for a thirteen month period from
December 1, 1990, until December 31, 1991;
iii) Effective December 1, 1990, Durham Region will lease
to the area municipalities, for a nominal fee, the
existing fleet of eighteen ( 18) recycling pick-up
vehicles for the thirteen month period from December
1, 1990, to December 31, 1991;
iv) Durham Region will continue to purchase blue boxes
in bulk and provide blue boxes to area
municipalities, as required, for distribution to
residences;
Processing
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THAT Durham Region take the required action for the Works
Department to operate the recycling processing operations
effective December 1, 1990 . "
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REPORT NO. : WD-89-90 PAGE' 4
2 . 7 Co-operative Tender Has Been Called
Subsequent to Regional Council's decision of October 17 , 1990, a
co-operative tender was called by the Town of Whitby on behalf of
all the Area Municipalities and was advertised on Friday, October
19, to close at 2 :00 p.m. Wednesday, October 31 . The contract is
intended to commence on December 1, 1990, and expire on December
31, 1991.
One of the features of the tender is that the Region's eighteen
( 18) vehicles for blue box collection will be made-available to the
contractor at a nominal cost.
It should be emphasized that no municipality is obliged to
participate in the co-operative tender following receipt of
tenders .
If the Town does not participate in the co-operative tender then
it must make other arrangements, on its own, for the continuation
of the Blue Box program. In this case none of the Region's
existing vehicles will be made available to the Town for
collection.
2 . 8 Who Pays for the Blue Box Program After December 31, 1991?
Staff will be submitting a subsequent report for Council's
consideration, which will be recommending the Region maintain th
same financial arrangements regarding the collection of recyclablc
material after December 31, 1991.
2 . 9 Expansion of the Blue Box Program to All Residents in the Town
The possible expansion of the blue box program to all residences
in the Town, including apartment buildings and to commercial and
industrial establishments will be dealt with in a future report.
3.0 SUMMARY
3 . 1 Following is a summary of the foregoing:
1 . The contract between Durham Region and Durham
Recycling Centre Incorporated expires December
1, 1990 .
2 . The effect of action taken by Regional Council
on October 17 , 1990, is that operational
responsibility for blue box collection has been
passed on to the area municipalities .
3 . The Region will continue to finance all blue
box collection costs until December 31, 1991.
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REPORT NO. : WD-89-90 PAGE 5
4 . A co-operative tender was called on Friday,
October 19 for the collection and disposal of
recyclables . The tender closes on October 31
and a report will be submitted to the General
Purpose and Administration Committee in
November to deal with the tender.
4.0 RECOMMENDATIONS
4 . 1 THAT Report WD-89-90 be received;
4.2 THAT the Region of Durham be advised that the Town of Newcastle
accepts the operational responsibility for blue box collection from
December 1, 1990 to December 31, 1991 in accordance with the terms
contained in the Regional Council Resolution of October 17, 1990
in this regard; and
4 . 3 THAT a copy of Report WD-89-90 be forwarded to Mr. C. W. Lundy,
A.M.C.T. , Regional Clerk.
Respectfully submitted, Recommended for presentation
to the Committee,
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- ------ Y- ------ ---------Walter A. Evans, P.Eng. , Lawrenc Kotseff
Director of Public Works Chief Administrative Officer
WAE*llv
October 24, 1990
Attachment
pc: Mr. C. W. Lundy, A.M.C.T.
Regional Clerk
Region of Durham
105 Consumers Drive
Whitby, Ontario
LIN 1C4
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REG . OF DURHM-1 WK13' . DEFT TEL 1 0c t. 235 9:=i 1i_, 1 14 o . 022 P .
The Regional Municipality of Durham
Chief Administrative Officer and
Commissioner of Works
Report to the Waste Management Committee
Report No. : WM90-42
Date: October 17, 1990
SUBJECT:
DURHAM RECYCLING CENTRE INC. - CONTRACT EXTENSION TO DECEMBER 1, 1990.
- INTERIM RECYCLING ACTION PLAN
RECOMMENDATION:
A. THAT Durham Region agree to the request from Durham Recycling Centre
Inc. (DRC) to extend the DRC contract to December 1, 1990, in order
to allow DRC to wind down operations ;
B. AND THAT in order to ensure uninterrupted operation of the blue box
recycling program after December 1, 1990, Durham Region endorse the
following interim recycling action plan : -
Collection
1. Effective December 1, 1990, the area municipalities will assume
direct operational responsibility for blue box collection.
2. Durham Region will continue to finance all blue box collection
costs for a thirteen month period from December 1, 1990, until
December 31, 1991 at which time the area municipalities will
assume full financial and operational responsibility for blue box
collection.
3. Effective December 1, 1990, Durham Region will lease to
the area municipalities , for a nominal fee, the existing fleet of
eighteen ( 18) recycling pick-up vehicles for the thirteen month
period from December 1, 1990, to December 31, 1991.
4. Durham Region will continue to purchase blue boxes in bulk and
provide blue boxes to area municipalities , as required, for
distribution to residents .
ATTACHI'lrE 'IT ilO ,:
2 -
Processing
1. That the Region take immediate action to contract the processing
operations commencing December 1, 1990 for a terns of thirteen
months, and that for the purposes of this short-term contract,
the Region 's normal tendering procedures be waived.
2. The Region request the prospective contractors to give ..
hiring preference to current DRC employees who make application
for employment.
REPORT:
At its meeting of October 3, 1990, Council learned of the intention of
the Board of Directors of the Durharn Recycling Centre (DRC) to dissolve
Its operations and terminate. the services of its employees effective
December 1, 1990. The DRC hoard of Directors passed the following motion
on Thursday, September 27, 1990:
"To direct staff to request a contract extension by the Region
of Durham from October 31, 1990 to December 1, 1990 in order to
allow Durham Recycling Centre to wind down operations ,"
The matter was referred by Council to the Waste Management Committee.
Subsequently, the Region's Waste Management Committee, on
October 9, 1990, met and directed Staff to prepare a report and
recommendations on the operational and labour considerations involved in
the issue. This report is in response to that directive.
Collection By Area Municipalities
Durham Recycling Centre Inc. (DRC) is a private , not for profit company
which presently operates the blue box recycling program under contract
with Durham Region (which has jurisdiction over waste disposal ) and under
agreement with Durham's area municipalities (which have jurisdiction over
waste collection) .
It is imperative that the blue box recycling program continue operations
in Durham Region , To this end , Durham Region and its area municipalities
have co-operated to develop an interim plan of action to ensure that blue
box collection and processing continues witho,. t interruption after
December 1, 1990.
We are advised that effective December 1 , 1990, Durham Region ' s area 1
municipalities will assume responsibility for byre box collection. This
will have the advantage of integrating all waste collection (eg, blue box
collection , leaf collection , garbage collection ) under ore agency - the
area municipality .
It. is exPe''ted that c0-01,diration or waste collection activities under
the area runicipalIties will provide an opportunity for increased
efficiency and a higher level of service to reside;-ts who will have only
one agency to call for all collection queries ,
CIF DLIF:HHPI 10 k DEFT ILL : 1-",I I i-
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Processing Operations - Options
Durhari Region 's ,jurisdiction over waste disposal includes processing of
recyclables and your staff has therefore considered the Region's position
relative to the processing cotitponent of the recycling operation , It is
apparent that the Region has various options available to it in regard to
processing, and we have obtained legal opinion on the rights of DRC
employees with respect to employment and on the Region 's obligations
thereto. There is general agreement that the Region 's options. are
essentially two, One is to have a contractor take over the processing in
the same way that area municipalities have decided to contract the
collection . Alternatively, the Region could assume direct control .
These options are examined below.
Option "A't :
Have the Recycling Processing Operations Assigned
to Another Contractor ^�
This option would involve the Region taking immediate action to ensure
that arrangements be made for a new contractor to replace Durham
Recycling Centre Inc . as the contractor responsible for operation of the
processing part of the blue box program. The experience in other Regions
has been that the hiring of a qualified contractor would be less costly
than having the Region take direct control of recycling processing.
An experienced contractor would have "hands-on" recycling expertise that
is not presently available among Region staff. In addition, recycling
contractors have demonstrated productivity improvements which allow them
to reduce staffing costs . Recycling contractors have the flexibility to
introduce new equipment and operational methods as changing work
requireT ,nts dictate, The Region will recommend to any prospective
contractor that preferred consideration be given to the hiring of ORC
employees should the contractor require additional staff to fulfill the
contract .
Option "B" :
Have the Works Department Take Over The Processing Operation
If the Region were to take over the processing operation , we could expect
the Caboor Relations Board to require us to provide Region rates and
working conditions , or alloy-, collective bargjining to take place in which
the Union would fight to have tifre DRC Collective Agreement, with its
lower wace schedule' and operational practices , brought inune;liately into
line wito the Region 's Collective Ayreemont with its own Outside
Workers . -
We are ati.are that due to the wage and benefit levels and ethe^ operating
differences that preseot.ly exist between DRC and the Region , the Region
wot.rld incur substantial cost increases were it to assu�-ne con`Irol of the
DRC processing operations . (he DRC processing workforce flur_tuates , but
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an analysis of wages and benefits carried out recently by regional staff
Indicated that the Region could expect that wage and benefits
equalization costs would add about $750,000 per year to the current
(1990) recycling processing costs budgeted at approximately $1.7 million.
Other costs resulting from less operational flexibility could well add to
this figure.
CONCLUSION
Council and Staff are aware of the critical budget difficulties projected
for 1991 . At a time when our ability to even maintain the Region 's
present operating obligations will be sorely tested, we are unable to
support the expenditure of costly additional in-house programs at this
time. Kindly note that in order for a contractor to be selected in time
for the December 1, 1990 windup by DRC, time is absolutely critical , and
the normal tendering procedures should be waived.
Respectfully submitted.
L3
GJ.A. we ve rees , P. ng. , vans, P. Eng. ,
Commissioner of Works Chief Administrative Officer
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