REQUEST FOR DECISION
DATE: June 13, 2016 Report No. EPW-16-020
TO: Laurie Hurst, Chief Administrative Officer
FROM: Jeff Miller, Director of Engineering and Public Works
SUBJECT:
Title
Yard and Garden Transfer Station Update
End
RECOMMENDATION:
Recommendation
That Council receives Staff Report EPW-16-020 for information.
Body
RELEVANT POLICY:
N/A
STRATEGIC RELEVANCE:
Well Managed and Maintained Infrastructure - Identify infrastructure repair and proactively plan for replacement needs
BACKGROUND:
In 2006, yard and garden stream was banned from Harland Landfill. In response to this action, the Township of Esquimalt (TOE) and the Town of View Royal (TVR) entered into a partnership for the operation of a transfer station and treatment of the stream. In this partnership, TOE administers the contract for the operation of the transfer station and the treatment of the stream. TVR pays for their portion of the cost of the operation of this service to the TOE. The approximate split between TOE and TVR is 60/40.
The transfer station is located at Canteen Road in TOE. Material is received at the station and then moved offsite for processing. The finished product meets CRD standards for composted materials. Approximately 1,500 to 2,000 tonnes of material is collected per year. Usage of the site has TOE residents making on average 20,100 visits per year and TVR residents making 7,200 visits. The cost for the service over the last five years totalled $684,198. This contract will expire at the end of June, 2016.
Over the last several years the contractor has expressed a concern to TOE that expenses are outstripping revenue generation for this contract. This is occurring due to the volumes of material being generated/processed and the need to handle the material multiple times. Under the current arrangement, it is anticipated that costs would increase between 20% and 30% due to the limited number of contractors that will carry out this work.
While the contract is entering its final stage, TOE does have the ability to extend the contract for several years. It is anticipated that through negotiations, the current contractor might be able to maintain the current cost if the transfer station was relocated to a location that would assist in removing multiple handling of the material.
TVR has expressed concerns with the potential cost increase for this operation. They would have to review their options if the costs were to increase from their current levels. This may include withdrawal from the partnership.
It is also worthy to note that a number of municipalities have requested that the CRD look at combined stream collection and processing of yard/garden materials and kitchen scraps. The CRD has indicated that they are interested in offering this type of processing option. The CRD has not provided any information on this option as they are still working on how and where kitchen scraps would be processed.
ISSUES:
1. Rationale for Selected Option
Staff recommends that Council accept this report for information.
Representatives from TOE and TVR have had discussions with the Contractor (Ellice Recycling). The results of these discussions have been a proposal from the Contractor. The highlights of the proposal are:
• Relocation of the transfer station from 601 Canteen Road (TOE) to Trio Landscape Supply (Esquimalt Nation - Hallowell and Admirals)
• Closure of 601 Canteen Road
• Provide the option for drop off of the yard and garden stream at Ellice’s facility at 516 David Street (City of Victoria)
• Costs to operate to remain at the current rate
• Trial period of six months to be undertaken in order to determine if the contract will become cost neutral
• All material is recycled into compost and reused in the Capital region
• All other terms and conditions of the existing contract will remain in place
This service is well used by residents of both TOE and TVR. It provides them with the ability to deliver this stream to a centralized location without the need for each person to transport these materials to Hartland Landfill ($59 per tonne, minimum $10 per load). Based on discussions with residents, it appears that there is the expectation that this service will continue to be offered.
Additional benefits from the proposed changes to the Contract include:
• An additional location for the drop off of the yard and garden stream. There would be two locations for drop off as opposed to one.
• There will be an increase in the hours of operation. The Trio site will operate seven days a week as well as statutory holidays. Also the Davies site has increased hours of operation over the Canteen site. The increase in operational hours is a common request the Township receives with respect to the operation of Canteen.
• No increase in operating costs except for the consumer price index adjustment as provide for by the Contract.
Both TOE and TVR’s Directors have reviewed the Contractor’s proposal. It is their opinion that this proposal represents a fair and equitable solution to all parties and have begun the process of modifying the Contract to reflect the changes proposed.
2. Organizational Implications
As the terms of the Contract are remaining the same, there will be no organizational implications during the extension. The activities associated with the extension of the Contract have been included in the work plan of the department. Also since the terms of the Contract are remaining the same, there will be no implications with respect to administration of the contract as these activities have been included in the department’s work plan.
3. Financial Implications
The cost of the current service is $11,250 per month. In the Contract, the monthly charge also receives a one-time adjustment equal to the Consumer Price Index. With the extension, this clause will be carried out. The anticipated monthly charge will be approximately $11,588 for the last six months of 2016. The total cost for this service for 2016 is anticipated to be in the $137,000 range. This cost is lower than the cost determined during the 2016 budget process.
4. Sustainability & Environmental Implications
This service has sustainability and environmental implications. By not offering this service, it is anticipated that there will be an increase in illegal dumping activities. Greenhouse gas generation will also be increased due to individual residents having to deliver this material to the Hartland Landfill.
5. Communication & Engagement
On June 14, 2016 notifications will be put up at the Canteen, Trio and Davies Street locations as well as on the Township’s website and social media sites detailing the change in locations. Between June 14, 2016 to June 30, 2016, residents will be able to drop off yard and garden stream at any of the three locations with people who drop off at Canteen being reminded of the change in operations. As of July 1, 2016, the Canteen location will be closed down with signage directing residents to the other locations.
ALTERNATIVES:
1. That Council receive Staff Report EPW-16-020 for information.
2. That Council does not receive this report for information and directs Staff to initiate the Tender process for the procurement of this service.