Procurement Authorization - Provision Of Waste Handling And Disposal Services
Meeting Date: July 19, 2006
Subject: Procurement Authorization - Provision Of Waste Handling And Disposal Services
It is recommended that the Commission authorize the award of a contract to Turtle Island Recycling Corporation, in the upset limit amount of $1,090,000.00, for the segregation and disposal of single stream recyclables and general waste, at their facility in the City of Toronto, for the period August 1, 2006 to July 31, 2009.
Sufficient funds to accommodate this expenditure are included in the 2006 TTC Operating Budget and will be provided in the 2007, 2008 and 2009 Operating Budgets accordingly.
As part of its coordinated approach to waste management, the TTC has developed a Waste Diversion Plan in conjunction with City Solid Waste Management Services. This incorporates diversion targets and a strategy to effectively manage waste.
One major aspect of this program is the daily collection and subsequent disposal of waste from 72 subway/SRT stations and separately from all TTC surface locations (garages, carhouses, shops and office buildings). These locations generate about 4,500 total metric tonnes of waste annually. The material collected includes general waste mixed with recyclables which must be sorted, and single stream (co-mingled) recyclables (newsprint, cans, bottles and cardboards), with some contamination from general waste which must be separated. Following the regulations introduced by the State of Michigan in November 2004, this waste has been delivered by TTC owned packer trucks to a private sector waste disposal transfer station for sorting and disposal.
At the request of the Commission, staff approached the General Manager of Solid Waste Management Services in February concerning the possibility of the City facilitating the TTC’s waste sorting and disposal requirements. The City responded indicating that their facilities were not equipped to provide sorting of waste mixed with recyclables. Accordingly, it is necessary to continue with the current arrangement for waste handling and disposal at this time.
Sixteen companies were invited to submit Proposals in addition to the public advertisement in the Commission’s website on May 26, 2006 out of which one company submitted a proposal as detailed on the attached Spreadsheet.
In order to be acceptable for award, a proponent’s waste transfer facility must be located within the limits of City of Toronto and must be able to accept the TTC’s waste 365 days per year. Proponents were also required to submit a copy of the Ministry of Environment Certificates of Approval for use and operation of a waste disposal site within the City of Toronto.
Turtle Island Recycling Corporation submitted the only proposal and did not state any exceptions and/or qualifications. They provided the required Ministry of Environment Certificate for their Transfer Station on Cherry Street in Toronto. Turtle Island are currently providing this service in a satisfactory manner and their proposal is considered acceptable. They are recommended for award in the total upset limit amount of $1,090,000 for a three year term.
Turtle Island’s pricing for year one of the contract is the same as the current contract which was awarded in 2004. Their year two pricing is approximately 4.5% higher than their year one pricing and their year three pricing is approximately 4.3% higher than their year two pricing.
The total upset limit amount includes an approximate allowance of 20% to cover variances between forecasted and actual usage.
Several of the non respondents were contacted to determine why they did not bid. Two companies indicated that they only operate 6 days a week and not the required seven; one company said they did not have a transfer site located in Toronto, two companies indicated they were not interested in this type of work (i.e. separating co-mingled waste) and one company indicated they were too busy to bid.
The Commission has an on-going requirement to handle daily waste from its subway and SRT stations, as well as offices and maintenance facilities as part of its Waste Diversion Plan. The services of a private sector company to sort and dispose of waste and recover recyclables is necessary at this time to meet this need.Provision of these services will ensure the TTC meets its commitments for waste diversion as determined by Solid Waste Management Services and as mandated by City Council.
June 26, 2006