TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: November 16, 2026 Report No. EPW-26-015
TO: Dan Horan, Chief Administrative Officer
FROM: Joel Clary, Director of Engineering and Public Works
SUBJECT: Yard and Garden Waste Facility - Contract Award
RECOMMENDATION:
Recommendation
That Council award a contract for the operation of the transfer station and processing of the yard and garden waste stream to GFL Environmental for a three-year term at a total contract cost of $1,068,552, as detailed in Staff Report EPW-26-015.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to award a contract for the operation of 605 Canteen Road transfer station and processing of yard and garden waste stream.
BACKGROUND:
In 2006, the CRD imposed a ban on depositing yard and garden waste at the Hartland Landfill. In response to this action, the Township of Esquimalt and the Town of View Royal entered a partnership for the operation of a transfer station and processing of the yard and garden waste stream. In this partnership, the Township administers the contract with the Town of View Royal paying for their portion of the cost of the contract. The current contract ends on December 31, 2026.
Usage of the site has been constant over the life of the contract. See Attachment 1 for details of the usage and tonnage removed from the site. The transfer station has been located at 605 Canteen Road for the majority of the contract. There was a brief time when it was located at the Trio Landscape Supply site (109 Hallowell Road).
On October 1, 2026, a Request For Proposals (RFP) for processing yard and garden waste for Esquimalt and View Royal residents and to operate the necessary transfer station was released with a closing date of October 22, 2026. The RFP requested proposals based on a three-year term with the potential to extend the contract by two one-year extensions. The cost of these extensions would be negotiated between the service provider and the Township at that time. The new contract would begin January 1, 2027, and end December 31, 2029.
The Township received the following two proposals before the RFP closed on October 22, 2026:
Proponent Year Annual Cost (excl. GST)
GFL Environmental Year 1 (Jan 1 - Dec 31, 2027) $342,312.00
Year 2 (Jan 1 - Dec 31, 2028) $356,004.00
Year 3 (Jan 1 - Dec 31, 2029) $370,236.00
Total 3-year Contract Cost: $1,068,552.00
DL Bins Year 1 (Jan 1 - Dec 31, 2027) $483,360.00
Year 2 (Jan 1 - Dec 31, 2028) $497,860.80
Year 3 (Jan 1 - Dec 31, 2029) $512,796.62
Total 3-year Contract Cost: $1,494,017.42
The proposals were evaluated using the following criteria that were identified in the RFP:
Criterion Weighting
Cost of three-year contract 40%
Location of the Transfer Station 20%
Experience and Capacity 15%
Operations/Safety/Usage Plans for Transfer Station 10%
Hours of Operation 10%
Past Performance of Proponent (references) 5%
ANALYSIS:
Evaluations of the two proposals received were completed by two staff members using the evaluation criteria identified in the RFP. GFL Environmental was the lowest bidder and both staff members ranked them as the preferred proponent. GFL Environmental holds the current contract for the yard and garden waste facility.
Proponents were permitted to identify alternate locations in their proposals. GFL Environmental’s proposal identified the current transfer station at 605 Canteen Road in Esquimalt to remain as the yard and garden waste facility. This location provides a convenient drop off location for residents of Esquimalt and View Royal. It will be the only location where free drop off for yard and garden materials will be offered.
The current operating hours of Tuesday to Sunday from 8:00 am to 5:00 pm, excluding statutory holidays and observed holidays will remain the same in the new contract.
Based on the evaluations, staff recommend that the contract for the yard and garden waste facility be awarded to GFL Environmental.
Environmental Impact:
The yard and garden waste facility processed a combined total of 5,747 tonnes of organic material from 2023-2025. This aligns with one of the objectives in the Township’s Climate Mitigation Plan to divert organics from the landfill.
FINANCIAL IMPACT:
Under the current contract, the cost per month is $29,714. This translates into a cost of $356,568 per year. The request for proposals required the proponents to provide a cost per year for 2027, 2028 and 2029. If the contract was to be extended by the two one-year extensions, costs for the extensions would be negotiated with the service provider at that time. Below is the breakdown in costs (GST excluded):
Year Monthly Rate Total Annual Cost
2027 $28,526 $342,312
2028 $29,667 $356,004
2029 $30,853 $370,236
Total 3-year contract cost: $1,068,552
These costs are shared between the Township of Esquimalt and the Town of View Royal in accordance with the Cost Sharing Agreement. Cost allocation is based on each municipality’s population and is adjusted following each census.
Based on the 2021 Census, the current cost-sharing split is 60% for Esquimalt and 40% for View Royal. This split will remain in effect for 2027. The agreement will be updated for 2028 and 2029 to reflect the 2026 Census results, which Statistics Canada is scheduled to release on February 10, 2027. The agreement will also be updated to reflect the conditions of the new contract.
OPTIONS:
1. That Council award a contract for the operation of the transfer station and processing of the yard and garden waste stream to GFL Environmental for a three-year term at a total contract cost of $1,068,552, as detailed in Staff Report EPW-26-015.
2. That Council request additional information from staff.
3. That Council provide alternate direction to staff.
COMMUNICATIONS/ENGAGEMENT:
The successful proponent will be notified that they have been awarded the contract. There will be no change in the current service offered at the yard and garden waste facility. Information listed on the Township’s website regarding the yard and garden waste facility will remain as is.
TIMELINES & NEXT STEPS:
The next step is issuance of a Notice of Award pending Council approval.
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Attachment 1 - Yard & Garden Transfer Station Site Usage Report