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HomeMy WebLinkAboutWD-53-91 TOWN OF NEWCASTLE F ` � � 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. ----------------------------------------------------------- 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 . i 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. I . . .4 I fi i j i I I I i I i 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. I i 3. 1. 3 Existincr Fleet of Recyclable Collection Vehicles Needs to be Replaced i 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 i i 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, A --------------------- - ,-=- -------------------- Walter A. Evans, P.Eng. , Lawrenc E. Kotseff, Director of Public Works Chief f�nistrative Officer WAE*llv June 5, 1991 i 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. --------------------------------------------- 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 i THAT Durham Region take the required action for the Works Department to operate the recycling processing operations effective December 1, 1990 . " . . . 4 0 ? 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. i I 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, IT I - ------ 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 i I i 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- tl 1t_, : 2 1 Ili-i . ._ 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 i ; 026 - 4 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 I i i i 1 i I