DATE: March 18, 2013 REPORT NO. PW Chair and Members Committee of the Whole Operations and Administration

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1 PUBLIC WORKS COMMISSION DATE: March 18, 2013 REPORT NO. PW TO: FROM: Chair and Members Committee of the Whole Operations and Administration Geoff Rae, MBA, P.Eng. General Manager, Public Works Commission 1.0 TYPE OF REPORT CONSENT ITEM [ ] ITEM FOR CONSIDERATION [ X ] 2.0 TOPIC Solid Waste & Recyclable Contracts - Tender Award 3.0 RECOMMENDATION A. THAT Report No. PW titled Solid Waste & Recyclable Contracts Tender Award, BE RECEIVED; and B. THAT the contract for Landfill Site Operations for BE AWARDED to Future Waste Systems (Niagara) Inc., 1789 Allanport Road, Port Robinson, Ontario, L0S 1K0 at an annual cost of $1,562,536.71; and C. THAT the contracts for Collection of Solid Wastes and Collection of Recyclable for BE AWARDED to BFI Canada Inc., 779 Powerline Road, Brantford, Ontario, N3T 5V7 at an annual cost of $3,086,222.03; and D. THAT the contract for Receiving, Transporting, Processing & Marketing of Recyclables for BE AWARDED to the Regional Municipality of Niagara, 2201 St. David s Road, Thorold, Ontario, L2V 4T7 at an annual cost of $635,800; and E. THAT the contract for Household Hazardous Waste Day Events for BE AWARDED to Hotz Environmental Services Inc., 239 Lottridge Street, Hamilton, Ontario, L8L 6W1 at an annual cost of $188,779.50; and

2 Date: March 18, 2013 Page 2 F. THAT the necessary Contracts BE PLACED on a Signing By-law for presentation to Council for execution by the Mayor and Clerk; and G. THAT the Capital Account LF1301 (Green Bins) BE CLOSED and the funds BE RETURNED to RF324 (Federal Gas Tax Reserve) and RF318 (Landfill Site Reserve). H. THAT, in light of no submissions being received for the Request for Tenders for the Processing of Residential Household Organics, the Government of Ontario BE REQUESTED to undertake the necessary steps to encourage the development of additional processing capacity in the Province for residential household organic waste materials in order that municipalities may operate diversion programs for these wastes and achieve the Province s 60% waste diversion target; and I. THAT a copy of this resolution BE FORWARDED to The Honourable Kathleen Wynne, Premier of Ontario, The Honourable Jim Bradley, Minister of the Environment, and David Levac, MPP - Brant. 4.0 PURPOSE The purpose of the following report is to obtain Council approval to award the contracts for the City s various Solid Waste and Recyclable Contracts. 5.0 BACKGROUND 5.1 Long Term Sustainable Solid Waste Plan The City s Long Term Sustainable Solid Waste Plan, as approved by Council, recommended a number of program enhancements to the Solid Waste Management Program that will help increase the residential waste diversion rate from the current 38% to the Provincial target of 60% or higher. Table 1 provides a summary of the completed and future program enhancements that should increase the City s overall residential waste diversion rate. The timing for the achievement of these enhancements is also noted.

3 Date: March 18, 2013 Page 3 TABLE 1 - SOLID WASTE PROGRAM ENHANCEMENTS Program Enhancement Enhancement Details Targeted Achievement Date Enhanced Promotion and Education Enhance the current materials to focus on the recyclable materials still being disposed of in the garbage such as metal, glass and plastic containers and fibres. In progress and on-going Increased Capacity and Convenience Distribution of large Blue Boxes Completed Fall 2012 Enhanced Plastics Diversion Addition of plastics #3, 4, 6 and 7 to curbside Blue Box Collection Program Completed Fall 2012 Garbage Bag or Container Limits Reduce current weekly five bag or container limit to three Proposed 2014 or later Material Bans Ban collection of blue box recyclables, grass clippings, leaf and yard materials in Curbside Garbage Collection Program Proposed 2015 or later Enhanced Multi-Residential Recycling Improve program participation through directed promotion and education, and enhanced access to the recycling collection program. In progress Fall 2013 The plan also identified that the single most important activity to achieving a residential diversion rate of 60% or higher is the implementation of a Household Organics Diversion Program. The plan also noted that the best time to implement a Household Organics Diversion Program would be at the commencement of the City s next Solid Waste Contracts on November 1, 2013.

4 Date: March 18, 2013 Page Current Solid Waste Management Contracts Table 2 provides a summary of the services and service levels currently provided by the various Solid Waste and Recyclable Contracts. In particular, it is noted that garbage and Blue Box collections are provided on weekly basis, except in the Downtown area, which receives daily collections Monday through Saturday. TABLE 2 - CURRENT PROGRAM SERVICES AND FREQUENCY Contract Services Provided Frequency Landfill Operations Collection of Solid Wastes Collection of Recyclable Receiving, Processing and Marketing of Recyclables Household Hazardous Waste Day Events Disposal operations including; public drop-off, compost centre and transfer station, waste compaction, grass cutting, snow plowing, etc. Waste Collection (curbside and on-site at residential condominiums) Bulky Items (including appliances, metal, etc.) Yard Waste Collection Blue Box and Roll Cart Collections (curbside and on-site at residential condominiums) Receiving, Sorting and Marketing of Blue Box Receiving, Transporting, Processing and Disposal of Household Hazardous Wastes Daily operations Weekly collections Daily Collections (Downtown) Weekly (two-stream) collections Daily Collections (Downtown) Two Stream processing 8 Event Days Per Year The current Contracts for the Collection of Solid Wastes, Collection of Recyclable, the Receiving, Processing and Marketing of Recyclables and Landfill Site Operations are to end on October 31, The contract for Household Hazardous Waste Day Events ended on December 31, 2012.

5 Date: March 18, 2013 Page Preparation of Contract and Tender Documents As reported previously to Council (Report No. PW Tendering of Solid Waste Contracts), the Request for Tender (RFT) document developed by staff consisted of five (5) separate individual contracts, as well as various contract combinations. Also included were a number of service level options and two provisional items for the collection contracts, as requested by Council. It should be noted that the Household Hazardous Waste Contract was issued under a separate RFT, as the services provided under that contract are not common to any of the other Solid Waste Contracts. The RFT document for the Solid Waste and Recyclable Contracts was issued November 30, 2012 and the RFT document for the Household Hazardous Waste Day Events contract was issued on January 11, Both RFT documents closed on January 24, Tender Pricing Options Table 3 provides a summary of the applicable pricing options included in the various contracts. It should be noted that the contracts for Landfill Operations, the Receiving, Transporting, Processing and Marketing of Household Organic and the Household Hazardous Waste Day Events had no applicable pricing options in that the City was not accepting variations for pricing of these core contract requirements Contract Combinations In addition to being able to bid on individual contracts, contractors were also provided with the opportunity to bid on various combinations of contracts. These combinations were provided to allow operational efficiencies that may be obtained for activities such as route supervision and contract administration (i.e. office facilities, staffing, vehicles, insurance, etc.). As outlined in Table 4, various bidding combinations involving i) Collection of Solid Wastes, ii) Collection of Recyclable and iii) Receiving, Transporting, Processing and Marketing of Recyclables were permitted in the tender documents.

6 Date: March 18, 2013 Page 6 TABLE 3 - TENDER PRICING OPTIONS Contract Operation Pricing Options (A) Landfill Operations (B) Collection of Solid Wastes (C) Collection of Recyclable (D) Receiving, Transporting, Processing and Marketing of Household Organics (E) Receiving, Transporting Processing and Marketing of Recyclables Household Hazardous Waste Day Events Disposal operations including; public drop-off, compost centre and transfer station, waste compaction, grass cutting, snow plowing, etc. Regular Waste Collection Bulky Items (including appliances, metal, etc.) Yard waste collection Blue Box and Roll Cart Collections Transportation, Sorting and Marketing of Residential Household Organics Transportation, Sorting and Marketing of Blue Box Receiving, Transporting, Sorting and Disposal of Household Hazardous Wastes None applicable Weekly collection Weekly co-collection of Household Organics and waste materials (except Bulky Items) Bi-weekly collection of waste materials Separate weekly collection of yard wastes (April to November) Separate bi-weekly collection (April to September) and weekly collection (October to November) of yard wastes Weekly collection Weekly co-collection of Household Organics and Blue Box materials Bi-weekly collection Single Stream (no sorting at curbside) Two-Stream (containers and fibres sorted at curbside) None applicable Single & Two-Stream processing None applicable

7 Date: March 18, 2013 Page 7 TABLE 4 - CONTRACT COMBINATIONS Combination Contract Grouping Individual Contracts (1) (2) (3) Collection of Solid Wastes Collection of Recyclable Collection of Solid Wastes Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables Landfill Operations Receiving, Transporting, Processing and Marketing of Household Organics Receiving, Transporting, Processing and Marketing of Recyclables Landfill Operations Receiving, Transporting, Processing and Marketing of Household Organics Collection of Solid Wastes Landfill Operations Receiving, Transporting, Processing and Marketing of Household Organics Provisional Service Options As directed by Council, the Collection of Solid Wastes and Recyclable contracts also included separately priced provisional pricing options for (i) completing Sunday collection activities in the Downtown area, in addition to the current Monday through Saturday service and (ii) on-site collection services at non-profit townhouses Contract Duration All Solid Waste Contracts are for a five (5) year term and contain options for two (2) one-year renewals. These renewal options will provide the City with the following benefits; (i) flexibility to lengthen contracts based on potential future program changes, (ii) retain effective contractors and (iii) provide incentives to contractors to maintain high levels of program operation and customer satisfaction.

8 Date: March 18, 2013 Page Service Delivery Review and Consultation Results It is worth noting, as reported previously to Council in October of last year through the Finance Committee (Report No. CS , Municipal Intelligent Service Delivery Review and Draft Taxpayer Bill of Rights Public Consultation Results), Solid Waste Management Services were ranked the fourth most important service to survey respondents at 91.7% and highest in overall customer satisfaction at 86.1%. 5.5 Provincial Diversion Goal The Provincial Diversion Policy, since 2004, has been to achieve 60% diversion of waste materials from disposal. It is noted that this is not a regulatory requirement, but rather a goal set by the Province to encourage the development of waste diversion and enhanced recycling programs. 6.0 CORPORATE POLICY CONTEXT The City s Strategic Plan identifies the development of a long-term sustainable waste management plan as one of the strategic actions for achieving managed growth and environmental leadership (Strategic Action 3.3). More specifically, the Strategic Plan also includes a Strategic Action which outlines Council s long term commitment to achieving a residential diversion rate of 60% or higher and which strives to maximize the remaining waste disposal capacity available at the Mohawk Street Landfill Site. 7.0 INPUT FROM OTHER SOURCES Staff from the Legal and Purchasing Departments provided extensive assistance with the preparation of the Solid Waste and Recyclable Contracts tender document, as well as other related project activities including provisions for the implementation of a residential Household Organics Diversion Program. Staff also assisted with the review and evaluation of the tender results and preparation of the contract award report. 8.0 ANALYSIS 8.1 Tender Pricing Components Table 5 outlines the various tendering pricing components which were used by the contractors to determine annual pricing bids for each of the various individual and combination contracts, as well as the various service frequency options including the separation and diversion of Household Organic wastes.

9 Date: March 18, 2013 Page 9 TABLE 5 - TENDER PRICING COMPONENTS Contract Annual/Unit Item Pricing Components (A) Landfill Site Operations (B) Collection of Solid Wastes (C) Collection of Recyclable (D) Receiving, Transporting, Processing and Marketing of Household Organics (E) Receiving, Transporting, Processing and Marketing of Recyclables Household Hazardous Waste Day Events Annual Base Bid Price for daily disposal operations (staff, equipment, etc.) Estimated annual number of public drop-off lifts Estimated annual tonnage of yard wastes received Estimated annual number of grass cutting and snow plowing/road salting events, etc. Annual Base Bid Price (office, staff, trucks, etc.) Estimated annual tonnage of regular waste (over specified base amount) and Bulky Items (including appliances, metal, etc.) Estimated annual tonnage of yard waste collected at curbside Estimated annual tonnage of Household Organics collected at curbside Annual Base Bid Price (office, staff, trucks, etc.) Estimated annual tonnage for recyclable materials collected (over specified base amount) Estimated annual tonnage of Household Organics collected at curbside Estimated annual tonnage of Household Organics received at Transfer Station Estimated annual tonnage of Recyclable received at Transfer Station Flat Fee per Event Day for operating event days (receiving, sorting, packing and transporting wastes collected) Estimated annual number and quantities of various materials collected at events

10 Date: March 18, 2013 Page Bid Submissions Tenders for the Solid Waste and Recyclable Contracts and Household Hazardous Waste Events Contract were opened in public on Thursday, January 24, A total of 25 compliant bids were received from 11 contractors as follows: BFI Canada Inc., Cascades Recovery Inc., Future Waste Systems (Niagara) Inc., Gedco Excavating Ltd., GFL Environmental Inc., Halton Recycling Ltd. dba Emterra Environmental, Miller Waste Systems Inc., Modern Landfill Inc., The Corporation of the City of Guelph, The Regional Municipality of Niagara and Hotz Environmental Services Inc Individual and Combination Contracts Tables 6 and 7 below provide a summary of the number bids received and pricing range for the various individual contracts and three (3) preset combinations of contracts. TABLE 6 BID SUBMISSIONS - INDIVIDUAL CONTRACTS Contract Number of Bids Received Annual Pricing Range (A) Landfill Site Operations 2 $1,562,536 - $1,618,389 (B) Collection of Solid Wastes 4 $1,331,987 - $2,536,233 (C) Collection of Recyclable (D) Receiving, Transporting, Processing and Marketing of Household Organics (E) Receiving, Transporting, Processing and Marketing of Recyclables Household Hazardous Waste Day Events A - Single Stream Collection of Recyclable, B - Two-Stream Processing of Recyclable 4 $915,620 A - $1,621,698 0 n/a 5 $635,800 B - $918,000 1 $188,779.50

11 Date: March 18, 2013 Page 11 TABLE 7 BID SUBMISSIONS - COMBINATION CONTRACTS Combination Contract Grouping Number of Bids Received Annual Pricing Range (1) (2) (3) Collection of Solid Wastes Collection of Recyclable Collection of Solid Wastes Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables A Bi-weekly Single Stream Collection of Recyclable $2,568,441 A - $3,759,463 $3,610,794 - $4,177,912 $1,723,249 - $2,264,800 It should be noted that no bids were received for the Receiving, Transporting, Processing and Marketing of Household Organics Contract. Staff is currently investigating the possible reasons for this unexpected result. Unfortunately, the no bid result for the processing contract means that a diversion program for residential Household Organics cannot be implemented at this time and these materials will remain in the collection program for regular curbside garbage (i.e. landfilled). Moving forward, staff will investigate possible future alternatives to developing a Household Organics Diversion Program. It is recommended that Council forward the results from the Household Organics processing tender to the local Member of the Provincial Parliament, Minster of the Environment and the Premier of Ontario and indicate that the Provincial Government undertake the necessary steps to encourage the development of additional processing capacity in the Province for residential Household Organic waste materials in order that municipalities may operate diversion programs for these wastes and achieve the Province s 60% waste diversion target.

12 Date: March 18, 2013 Page Provisional Service Options Sunday Collection Service Depending on the bidder and service option, the annual cost for providing Sunday collections in the Downtown area ranged from $15,000 to $38,480 for individual contract bid submissions and $33,000 to $106, for combination contract bid submissions. Staff is currently reviewing, as requested by Council, the overall servicing options for the Downtown collection area, as approved by City Council at its November 13, 2012 meeting as follows: 33. Downtown Garbage Collection WHEREAS the City currently provides Monday through Saturday garbage collection in the downtown core; and WHEREAS complaints have been received from downtown businesses around the method and timing of said collections; and WHEREAS garbage is often not collected until late mornings, leaving a visual blight in front of downtown businesses during their hours of operation which has a negative impact not only on the businesses, their clientele, pedestrians, but on the City as a whole; and WHEREAS the delay in picking up garbage, especially from restaurants, often leaves greasy residues on sidewalks which now has to be cleaned up by the businesses in question; NOW THEREFORE BE IT RESOLVED THAT staff BE REQUESTED to prepare a report, in consultation with the BIA, for presentation by the 2013 budget deliberations, including cost implications, for the following: providing an earlier collection time in the downtown (before 9:00 a.m.); expanding the program to include garbage collection on Sundays; or implementing a bin or disposal system which is accessible to downtown restaurants so that garbage does not have to sit on the sidewalk overnight This servicing study is to include public consultations to determine the overall preference for service levels and frequency. Staff will be submitting a report for review and consideration by Council in September Staff will compile data and conduct an analysis of options throughout 2013-Q2 and will report in September.

13 Date: March 18, 2013 Page On-Site Collections Non-Profit Townhouses Depending on the bidder and service option, the annual cost for providing on-site collection services at non-profit townhouses ranged from $0 to $48,600 for individual contract bid submissions and $0 to $55,000 for combination contract bid submissions. As outlined in Section 9.0 of this report, the provisional pricing selection is directly linked with the preferred annual bid pricing option. More specifically, the provisional pricing cannot be selected independently from the preferred annual bid pricing. It should be noted that a pilot project for on-site collections is currently underway and is scheduled to be completed on November 1, 2013 (PW , On-Site Garbage and Recycling Collection Request at Non-Profit Townhouses, Grey Street, Brantford). On completion of the pilot, staff will be submitting a full report for review and consideration by Council outlining project outcomes and estimated operating budget impacts. 8.3 Bid Summary and Analysis Based on the pricing information received, a total of 48 possible bid pricing combinations were compiled for review and analysis. Appendix A attached to this report outlines these bid pricing combinations from lowest to highest Bid Results - Landfill Site Operations and Household Hazardous Waste Day Events Contracts Table 8 below summarizes the recommended low bid pricing received for the Landfill Site Operations and Household Hazardous Waste Day Events contracts. TABLE 8 COMBINED ANNUAL BID PRICING LANDFILL SITE OPERATIONS AND HOUSEHOLD HAZARDOUS WASTE DAY EVENTS CONTRACTS Contract Contractor Annual Bid Price Landfill Site Operations Household Hazardous Waste Day Events Future Waste Systems (Niagara) Inc. $1,562, Hotz Environmental Services Inc. $188, Total Contract Price $1,751,316.21

14 Date: March 18, 2013 Page 14 The low bid prices noted in Table 8 require no analysis since these contracts did not contain any pricing options and were not included in any of the pricing combinations. As a result, the remaining bid analysis sections of this report will include these bid values, but focus only on the pricing submissions for the three remaining contracts (i.e. Collection of Solid Wastes, Collection of Recyclable and Receiving, Transporting, Processing and Marketing of Recyclables). For comparison purposes, it is noted that the combined annual pricing for Landfill Site Operations and Household Hazardous Waste Day Events contracts totals $1,751, Bid Results Collection and Processing Contracts Lowest Combination Pricing As shown on the attached Appendix A and in detail on Table 9 below, the lowest annual contract pricing combination (#1) was received for individual bids for each of the five solid waste contracts with the following service options; (i) biweekly garbage collection, bi-weekly yard waste collection (April to September only) and bi-weekly two stream Blue Box collection and two stream recyclables processing. The pricing submitted for this combination was calculated to be $4,724, TABLE 9 LOWEST COMBINATION ANNUAL CONTRACT PRICING Contract Annual Bid Prices Landfill Site Operations and Household Hazardous Waste Day Events $1,751, A Collection of Solid Wastes $1,331, Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables $1,005, B $ 635, C, D Total annual Contract Price $4,724, A - Combined Annual Pricing - see Section 8.3.1, B - Two-Stream Collection of Recyclable C - Bid price not including estimated Blue Box revenues D - Two-Stream Processing of Recyclable

15 Date: March 18, 2013 Page 15 Under this pricing combination, all collection services are changed from current levels with garbage and yard waste materials being collected on alternating weeks from Blue Box materials rather than on the existing weekly basis. Although significantly less expensive than all the other pricing combinations, and two stream collection and processing operations, this option will produce the least amount of residuals (i.e. waste) in the recyclables marketed. The service level of this combination is anticipated to cause the following issues/concerns: 1) Reduced customer satisfaction ratings below current levels (i.e. 86.1%) as collection frequency for waste and recyclable materials would be reduced from the current weekly to a bi-weekly basis; 2) Reduced residential waste diversion rate as residents may choose to set out recyclables with waste materials (i.e. for disposal); 3) Reduced annual Provincial funding received for the operation of the Blue Box Collection Program, as scoring levels on the Best Practices questionnaire score bi-weekly collections lower than weekly collections; 4) Reduced annual Provincial funding received for the Blue Box Collection Program, as scoring levels on the Best Practices questionnaire score reduced diversion rates lower than higher diversion rates; 5) Increased number of concerns/complaints received by staff as residents adjust to the proposed program service levels; 6) Increased annual promotion and education expenditures to ensure residents are aware of the proper dates and cycles to set out materials at curbside. It is estimated the amount of annual provincial funding to the City may be reduced by approximately $180,000 - $240,000 as a result of items (3) and (4) noted above. A further concern of this bid option is the issues residents may have with storing waste materials longer, including Household Organics, until their scheduled bi-weekly collection day. More specifically, the No bid submission for the Household Organics Processing Contract eliminates the possibility of providing residents, at the commencement of the next contracts, with a diversion option for these waste materials. As result, residents must continue to set out Household Organics with regular waste materials. Due to the issues and concerns noted above, staff is not recommending acceptance of this bid option. It should be noted that all bids with bi-weekly collection options for either waste or Blue Box materials should also be deferred until the implementation of a Household Organics Diversion Program, as without the proper supporting program services, it is anticipated that residents would not adapt easily to changes to the core curbside collection programs.

16 Date: March 18, 2013 Page Highest Combination Pricing As shown on the attached Appendix A and in detail on Table 10 below, the highest annual contract pricing combination (#48) was received from individual bids for the Landfill Site Operations and Household Hazardous Waste Events contracts and a combination bid from a single contractor for the contracts including Collection of Solid Wastes, Collection of Recyclable and Receiving, Transporting, Processing and Marketing of Recyclables with the following options; (i) weekly garbage collection, weekly yard waste collection and weekly two stream Blue Box collection and two stream recyclables processing. The pricing submitted for this combination was determined to be $5,929, TABLE 10 HIGHEST COMBINATION ANNUAL CONTRACT PRICING Contract Landfill Site Operations and Household Hazardous Waste Day Events Combination Bid #2 Collection of Solid Wastes Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables Annual Bid Prices $1,751, A $4,177, B,C,D Total Annual Contract Price $5,929, A - Combined Annual Pricing - see Section 8.3.1, B - Two-Stream Collection of Recyclable C - Bid price not including estimated Blue Box revenues D - Two-Stream Processing of Recyclable Under this pricing combination, all collection services are maintained at current levels and provided under a single contractor. Although having a single contractor to provide collection and processing operations would provide for some operational and administrative efficiencies, other lower priced contract combinations are available which provide the same, current, program service levels.

17 Date: March 18, 2013 Page Current Program Bid Pricing (Status Quo) As shown on the attached Appendix A and in detail on Table 11 below, the lowest pricing combination for the current program service levels (i.e. status quo) was determined to be Option #39. This pricing combination was received from individual bids for each of the five solid waste contracts with the following service options; (i) weekly garbage collection, weekly yard waste collection and weekly two-stream Blue Box collection and two-stream recyclables processing. The pricing submitted for this combination was determined to be $5,538, TABLE 11 CURRENT SERVICE LEVEL - ANNUAL CONTRACT PRICING Contract Annual Bid Price Landfill Site Operations and Household Hazardous Waste Day Events Collection of Solid Wastes Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables $1,751, A $1,773, B $1,378, C,D $ 635, Total annual Contract Price $5,538, A - Combined Annual Pricing - see Section 8.3.1, B - Two-Stream Collection of Recyclable C - Bid price not including estimated Blue Box revenues D - Two-Stream Processing of Recyclable Under this pricing combination, all collection services are maintained at current levels and provided by separate contractors. This bid option provides negligible operating budget cost savings Recommended Contract Pricing As shown on the attached Appendix A and in detail on Table 12 below, the recommended pricing combination was determined to be Option #33. This pricing combination is comprised of individual bids for Landfill Site Operations, Receiving, Transporting, Processing and Marketing of Recyclables and Household Hazardous Waste Events contracts and a combination bid from a single contractor for the contracts including Collection of Solid Wastes and, Collection of Recyclable with the following service options; (i) weekly garbage collection, bi-weekly (April to September) & weekly (October to

18 Date: March 18, 2013 Page 18 November) yard waste collection and weekly two-stream Blue Box collection and two-stream recyclables processing. TABLE 12 RECOMMENDED BID OPTION - ANNUAL CONTRACT PRICING Contract Contractor Annual Bid Price Landfill Site Operations and Household Hazardous Waste Day Events Combination Bid #1 Collection of Solid Wastes Collection of Recyclable Receiving, Transporting, Processing and Marketing of Recyclables Future Waste Systems (Niagara) Inc. and Hotz Environmental Services Inc. BFI Canada Inc. Regional Municipality of Niagara $1,751, A $3,086, B $ 635, C,D Total Annual Contract Price $5,473, A - Combined Annual Pricing - see Section 8.3.1, B - Weekly Two-Stream Collection of Recyclable C - Bid price not including estimated Blue Box revenues D - Two-Stream Processing of Recyclable This pricing option was selected as the preferred contract bid combination, as it should maintain the following program aspects: 1) Customer satisfaction ratings at current levels (i.e. 86.1%), as the collection frequency for waste and recyclable materials will be unchanged from the current weekly basis; 2) Current residential waste diversion rate, as the collection frequency for recyclables is equal to that for waste materials (i.e. weekly); 3) Amount of annual Provincial funding received for the operation of the Blue Box Collection Program, as questions on the Best Practices questionnaire score weekly collections higher than bi-weekly collections;

19 Date: March 18, 2013 Page 19 4) Amount of annual Provincial funding received for the Blue Box Collection Program, as questions on the Best Practices questionnaire score municipalities with higher waste diversion rates greater than those with lower diversion rates; 5) Two-stream collection and processing operations will produce the least amount of residuals (i.e. waste) in the recyclables marketed (i.e. higher revenues). 6) High level of operational efficiency and customer satisfaction as the existing local contractor has current and up-to-date knowledge of the City. This pricing option was also selected as the recommended bid, as having a single contractor to provide collection operations for waste and recyclable materials will provide for internal operational and administrative efficiencies not specifically reflected in the bid pricing. Although this pricing option does include the implementation of a bi-weekly yard waste collection program during months of April to September (weekly October to November), this program modification will not occur until the Spring of 2014, providing staff with adequate time to prepare the necessary promotion and education program to ensure residents are aware of the new set out requirements. It should also be noted that implementing a bi-weekly yard waste collection was a recommended program enhancement of the Long Term Sustainable Solid Waste Plan. The annual pricing submitted by BFI Canada Inc. for completing Sunday collections in the Downtown area and on-site collection services at non-profit townhouses was $38,400 and $55,000 respectively. Further discussion of these pricing options is provided Section 9.4 of this report. 8.4 Promotion and Education Activities Bi-Weekly Yard Waste Collection Staff has reviewed the promotion and education activities to be completed as part of the proposed implementation of a bi-weekly yard waste collection (i.e. April - September only) program and have determined that they can be undertaken within existing approved operating budgets.

20 Date: March 18, 2013 Page FINANCIAL IMPLICATIONS 9.1 Operating Budget Current Program Table 13 below outlines the approved 2013 Operating Budget for the current solid waste contracts. TABLE 13 CONTRACTED SERVICES OPERATING BUDGET CURRENT PROGRAM Operating Year Landfill Site Operations Weekly Garbage Collection* Weekly Recycling Collection Two Stream Processing Blue Box Household Hazardous Waste Day Events Estimated Annual Operating Cost 2013 $1,097,351 $1,945,565 $1,677,281 $3,622,846 $630,903** $196,500 $5,547,602 * - Includes weekly collection of Yard Wastes (April November), ** - Does not include Blue Box revenues As noted above, the overall approved annual operating budget for the current solid waste contracts is approximately $5,547, Recommended Tender Pricing As discussed in Section of this report, the recommended bid price for the various Solid Waste Contracts was determined to be Option #33 (see Appendix A ), as it will maintain core service programs and levels of customer satisfaction. Other bid options were not recommended due to potential issues and concerns related to the potential loss in annual Provincial Funding, negative impact to core service levels, increased annual operating expenditures for promotion and education activities and reduction in overall customer satisfaction.

21 Date: March 18, 2013 Page Estimated Operating Budget Impacts Recommended Tender Pricing Table 14 below outlines the estimated impact to the 2013 Operating Budget for the recommended bid option. TABLE 14 RECOMMENDED TENDER PRICING - ESTIMATED IMPACTS CONTRACTED SERVICES BUDGET Operating Year Landfill Site Operations Weekly Garbage Collection Weekly Recycling Collection Two-Stream Processing Blue Box A Household Hazardous Waste Day Events Estimated Annual Operating Cost 2013* $1,097,351 $1,945,565 $1,677,281 $3,622,846 $630,903 $196,500 $5,547,602 Bid Pricing $1,562, $3,086, B $635,800 $188, $5,473, ** $77,531 ($89,438) $816 ($7,721.00) ($18,812.00)*** * - Approved Operating Budget ** - Estimated Budget Impacts. Contracts commence November 1, 2013, except HHW Contract which starts April 2013 *** - Does not include Provisional Items. Annualized cost savings estimated to be approximately $74,200 A - Does not include Blue Box revenues or Stewardship Ontario funding B Includes bi-weekly (April September) and weekly (October to November) yard waste collections As noted in Table 14, the recommended bid option is anticipated to provide an overall reduction to the 2013 Operating Budget for contracted services of approximately of $18,812. These expenditure reductions are further estimated to be approximately $74,200 for the 2014 Operating Budget. Public Works staff has checked the references provided by the contractors from the recommended bid option. No concerns or issues were noted during the reference review process. It should be noted that three of the contractors from the recommended bid option are either currently providing services for the City or have provided these services in the past under previous contracts. All previous and/or current contractors have excellent operational and customer service records. 9.4 Provisional Bid Options Sunday Collection Service Downtown Area The provisional bid pricing received from BFI Canada Inc. for completing garbage and recycling collections in the Downtown area on Sundays is one of the lowest bid submissions received at an annual cost of $38,480. This bid pricing is considered to be representative of the costs to provide these services and may be awarded by Council with the overall contract award. However, as noted

22 Date: March 18, 2013 Page 22 previously, staff is currently reviewing the overall servicing options for the Downtown collection area, as adopted by City Council on November 13, This servicing study is to include public consultations with the BIA, property owners and City Departments to determine overall future service levels, the logistics of receiving waste materials at the Mohawk Street Landfill Site and estimated budget impacts. Staff will be submitting a report for review and consideration by Council in September As a result, it is recommended that the provisional bid pricing received from BFI Canada Inc. for completing garbage and recycling collections in the Downtown area not be included with the overall contract award On-Site Collections Non-Profit Townhouses The provisional bid pricing received from BFI Canada Inc. for providing on-site collection services at non-profit townhouses is the highest bid submission received at an annual cost of $55,000. This bid pricing is considered to be representative of the costs to provide these services and may be awarded by Council with the overall contract award. It should be noted that a pilot project for on-site collections is currently underway and is scheduled to be completed on November 1, 2013 (PW , On-Site Garbage and Recycling Collection Request at Non-Profit Townhouses, Grey Street, Brantford). On completion of the pilot, staff will be submitting a full report for review and consideration by Council outlining project outcomes and estimated operating budget impacts. As a result, it is recommended that the provisional bid pricing received from BFI Canada Inc. for completing on-site collections at non-profit townhouses not be included with the overall contract award. 9.5 Capital Funds - Household Organics Diversion Program The $850,000 capital funding established for the purchase and distribution of green carts and kitchen catchers for the proposed Household Organics Diversion program is no longer required at this time, due to the no bid submission result for the organics processing tender. As a result, the funds totaling $450,000 and $400,000 should be returned to the Federal Gas Tax and Landfill Reserves, respectively. Funds returned to the Landfill Site Reserve will be utilized for various improvement projects, such as the design and replacement of the scalehouse, as identified in the current five-year capital budget.

23 Date: March 18, 2013 Page CONCLUSION The tender for Solid Waste and Recyclable Contracts provided competitive bids for the various operations and services provided by the City s Solid Waste Management Program No Bid Result - Household Organics Processing Tender An unexpected result of the RFT process was that no bids were received for the Receiving, Transporting, Processing and Marketing of Household Organics contract. As a result, a curbside collection and diversion program for residential Household Organics cannot be implemented at the commencement of the solid waste contracts on November 1, 2013 and these materials will remain in the collection program for regular curbside garbage (i.e. landfilled). Moving forward, staff will investigate possible future alternatives to developing a Household Organics Diversion Program. It is recommended that Council forward the results from the Household Organics processing tender to the local Member of the Provincial Parliament, Minster of the Environment and the Premier of Ontario and indicate that the Provincial Government undertake the necessary steps to encourage the development of the Household Organics Processing industry within the Province, so that municipalities may develop and operate diversion programs for these wastes and reach the Province s 60% waste diversion target Curbside Collection and Recyclable Processing Tenders Following a complete review of the tender submissions and possible service options permitted by the individual and combination of the various contracts, staff recommends accepting the tender Option #33 (see Appendix A attached to this report) which maintains the core collection programs for waste and recyclable materials on a weekly basis with a two-stream separation system for the processing of Blue Box materials. The recommended tender option will maintain the following overall benefits to the Solid Waste Management Program: 1) High level of customer satisfaction (i.e. 86.1%) as the collection frequency for waste and recyclable materials will be unchanged from the current weekly basis, 2) Moderate residential waste diversion rate as the collection frequency for recyclables is equal to that for waste materials (i.e. weekly), 3) Consistent annual funding from Province for the operation of the Blue Box Collection Program, as questions on the Best Practices questionnaire score (i) weekly collections higher than bi-weekly collections and (ii) municipalities with higher waste diversion rates greater than those with lower diversion rates,

24 Date: March 18, 2013 Page 24 The recommended tender option also includes the implementation of a bi-weekly yard waste collection program during months of April to September (weekly October to November), although this program modification will not occur until the spring of Staff will have adequate time to prepare the necessary promotion and education program to ensure residents are aware of the new pick-up schedule. It should also be noted that implementing a bi-weekly yard waste collection was a recommended program enhancement of the Long Term Sustainable Solid Waste Plan. Staff anticipates the necessary promotion and education activities to advise residents of the bi-weekly yard waste collection program can be undertaken within existing approved operating budgets. The recommended tender option was also selected, as having a single contractor provide collection operations for waste and recyclable materials will provide for internal operational and administrative efficiencies not specifically reflected in the bid pricing. It should be noted that tender submissions with lower bid pricing do offer significant operating budget reductions over the recommended tender option. However, these bid options will require residents to adapt to significant program changes from the current levels of service. Staff recommended that bid options that modify core service levels for either the collection of garbage or recyclable materials should not be implemented until residents are provided with proper diversion alternatives for Household Organics. Without the proper supporting program services it is anticipated that residents would not adapt easily to changes to the core curbside collection programs Financial Impact Recommended Bid Submission The recommended tender bid combination is estimated to provide some savings to the 2013 Operating Budget for contracted services and approximately $74,200 in annual savings to the 2014 and future Operating Budgets. The $850,000 capital funding for the purchase and distribution of green carts and kitchen catchers for the proposed Household Organics Diversion program is no longer required at this time, due to the no bid submission result for the Household Organics processing tender. As a result, the funds totalling $450,000 and $400,000 should be returned to RF324 (Federal Gas Tax Reserve) and RF318 (Landfill Site Reserve), respectively.

25 Date: March 18, 2013 Page Summary Based on the bids submitted for the Solid Waste and Recyclable Tenders and the review and analysis completed by staff, it is therefore recommended that the tenders be awarded as follows: (i) (ii) (iii) (iv) Landfill Site Operations contract be awarded to Future Waste Systems (Niagara) Inc. at an annual cost of $1,562,536.71, Collection of Solid Wastes and Collection of Recyclable contracts be awarded to BFI Canada Inc. at an annual cost of $3,086,222.03, Receiving, Transporting, Processing & Marketing of Recyclables contract be awarded to Regional Municipality of Niagara at an annual cost of $635,800.00, Household Hazardous Waste Day Events contract be awarded to Hotz Environmental Services Inc. at an annual cost of $188, S. Kongara, P.Eng. Geoff Rae, MBA, P.Eng., Director of Environmental Services General Manager, Public Works D. Hodgins, P.Eng. Manager, Solid Waste Operations Copy to: Finance Department Attachments: Appendix A Summary of Bid Options, Solid Waste Contracts In adopting this report, is a by-law or agreement required? If so, it should be referenced in the recommendation section. By-law required [ x ] yes [ ] no Agreement(s) or other documents to be signed by Mayor and/or City Clerk [ x ] yes [ ] no Is the necessary by-law or agreement being sent concurrently to Council? [ ] yes [ x ] no

26 Date: March 18, 2013 Page 26 APPENDIX A SUMMARY OF BID OPTIONS, SOLID WASTE CONTRACTS B C E Solid Waste Collection Blue Box Collection Blue Box Processing W Weekly BiW Bi-Weekly SW Solid Waste YW Yard Waste BB Blue Box 1ST Single Stream PRO Processing 2ST Two Stream 1 B C E BiW SW + BiW YW + BiW BB 2ST + 2ST PRO LOWEST PRICING OPTION 2 B C E BiW SW + BiW YW + BiW BB 1ST + 1ST PRO 3 B C E BiW SW + W YW + BiW BB 2ST + 2ST PRO 4 B C E BiW SW + W YW + BiW BB 1ST + 1ST PRO 5 B C+E BiW SW + BiW YW + BiW BB 1ST + 1ST PRO 6 B C+E BiW SW + BiW YW + BiW BB 2ST + 2ST PRO 7 B C+E BiW SW + W YW + BiW BB 1ST + 1ST PRO 8 B C+E BiW SW + W YW + BiW BB 2ST + 2ST PRO 9 B+C E W SW + BiW YW + BiW BB 1ST + 1ST PRO 10 B C E W SW + BiW YW + BiW BB 2ST + 2ST PRO 11 B C E W SW + BiW YW + BiW BB 1ST + 1ST PRO 12 B C E BiW SW + BiW YW + W BB 2ST + 2ST PRO 13 B C E BiW SW + W YW + W BB 2ST + 2ST PRO 14 B C E W SW + W YW + BiW BB 2ST + 2ST PRO 15 B C E BiW SW + BiW YW + W BB 1ST + 1ST PRO 16 B C+E BiW SW + BiW YW + W BB 1ST + 1ST PRO 17 B C E W SW + W YW + BiW BB 1ST + 1ST PRO 18 B+C E W SW + BiW YW + BiW BB 2ST + 2ST PRO 19 B C+E WSW + BiW YW + BiW BB 1ST + 1ST PRO 20 B+C E W SW + W YW + BiW BB 1ST + 1ST PRO 21 B C+E WSW + BiW YW + BiW BB 2ST + 2ST PRO 22 B C+E BiW SW + BiW YW + W BB 2ST + 2ST PRO 23 B C E BiW SW + W YW + W BB 1ST + 1ST PRO 24 B C+E BiSW + W YW + W BB 1ST + 1ST PRO 25 B+C E W SW + W YW + BiW BB 2ST + 2ST PRO 26 B C+E WSW + W YW + BiW BB 1ST + 1ST PRO 27 B C+E BiW SW + W YW + W BB 2ST + 2ST PRO 28 B C+E W SW + W YW + BiW BB 2ST + 2ST PRO 29 B+C+E W SW + BiW YW + BiW BB 1ST + 1ST PRO 30 B+C+E W SW + BiW YW + BiW BB 2ST + 2ST PRO 31 B+C E W SW + BiW YW + W BB 1ST + 1ST PRO 32 B C E W SW + BiW YW + W BB 2ST + 2ST PRO 33 B+C E W SW + BiW YW + W BB 2ST + 2ST PRO RECOMMENDED OPTION 34 B+C E W SW + W YW + W BB 1ST + 1ST PRO 35 B+C+E W SW + W YW + BiW BB 1ST+ 1ST PRO 36 B+C+E W SW + W YW + BiW BB 2ST + 2ST PRO 37 B C E W SW + Bi YW + W BB 1ST + 1ST PRO 38 B C+E W SW + BiW YW + W BB 1ST + 1ST PRO 39 B C E W SW + W YW + W BB 2ST + 2ST PRO STATUS QUO OPTION 40 B+C E W SW + W YW + W BB 2ST + 2ST PRO 41 B C+E W SW + BiW YW + W BB 2ST + 2ST PRO 42 B C E W SW + W YW + W BB 1ST + 1ST PRO 43 B C+E W SW + W YW + W BB 1ST + 1ST PRO

27 Date: March 18, 2013 Page B C+E W SW + W YW + W BB 2ST + 2ST PRO 45 B+C+E W SW + BiW YW + W BB 1ST + 1ST PRO 46 B+C+E W SW + BiW YW + W BB 2ST + 2ST PRO 47 B+C+E W SW + W YW + W BB 1ST + 1ST PRO 48 B+C+E W SW + W YW + W BB 2ST + 2ST PRO