The cost of handling garbage and other waste collection in Greater Sudbury could be rising as much as $2.6 million, says a report headed to city council Oct. 18.
With current contracts expiring this month, the staff report recommends that two contracts be awarded to William Day Construction for $6,509,443.74, and a third to Waste Management of Canada for $3,648,999.68. While they were the lowest bids, combined they will cost taxpayers $2,621,880 more than what was budgeted.
While city crews handle collection in some areas of the city, communities such as Lively, Chelmsford, the Valley and Capreol are serviced by contractors.
The previous contracts were for 10 years, but these ones run four years and four months, to coincide with the city switching to garbage collection every two weeks, beginning in 2021. Earlier this month, the garbage limit was reduced to two bags a week, and will drop to one bag a week in 2019. Composting and recycling will remain weekly with no limits.
While the new contracts came in at a much higher price than expected, an internal analysis found having all the work done by city crews wouldn't save money. There are several reasons while the bids came in higher, the report said.
“The majority of the cost increase can be attributed to the roadside collection rates, and, specifically, the cost to manage and maintain a fleet of vehicles to deliver the services,” the report said. “City operations have experienced similar significant increases in fleet costs.”
There are several new requirements in the contracts, the report says, which could also add costs to the bids.
“The contract now requires specifically trained key personnel to provide some functions,” the report said. “In addition, the contractor must manage the billing process for property owners in the central business district.”
While the current estimate is more than $2.6 million, the report says that amount could decrease once the Waste Diversion Ontario funding covers its share of the blue box related increase.
Background:
The three contracts cover the following services:
weekly roadside co-collection of garbage and leaf and yard trimmings;
weekly roadside co-collection of blue box recyclables and green cart organics;
weekly roadside collection of large furniture and appliances;
twice weekly evening roadside collection for the Central Business District;
servicing multi-unit residential, multi-type and municipal properties;
servicing residential waste drop-off depots;
servicing roadside litter containers 8. Servicing special event recycling programs; and,
provision of cleanup services when required.
Areas serviced only by contract crews: Levack, Onaping, Dowling, Chelmsford, Azilda, Worthington, Whitefish, Naughton, Lively, Capreol, Hanmer, Val Therese, Val Caron, Blezard Valley, McCrea Heights, Garson, Falconbridge, Skead, Coniston, Wahnapitae, Wanup, Kukagami and southern parts of Sudbury These services are provided by contract.
For Sudbury and Copper Cliff, city crews provide the majority of the weekly co-collection of garbage and leaf and yard trimmings along with the servicing of litter containers (for garbage). All other services are provided by contract crews.
