P.O. Bx 1749 Halifax, Nva Sctia B3J 3A5 Canada Item N. 14.1.2 Halifax Reginal Cuncil June 5, 2018 TO: Mayr Savage and Members f Halifax Reginal Cuncil SUBMITTED BY: Brad Anguish, A/Chief Administrative Officer DATE: April 27, 2018 SUBJECT: Extensin f RFP N. 14-336, Cllectin and Transprtatin f Surce- Separated Slid Waste ORIGIN Cuncil awarded RFP N. 14-336, Cllectin and Transprtatin f Surce-Separated Slid Waste at its January 28, 2015 sessin. RFP N. 14-336 has an riginal term f fur years frm July 1, 2015 t June 30, 2019 with an ptin t renew the cntracts fr tw additinal ne-year perids. LEGISLATIVE AUTHORITY Under the HRM Charter, Sectin 79, Halifax Reginal Cuncil may expend mney fr municipal purpses. Administrative Order #35, the Prcurement Plicy, requires Cuncil t apprve the award f cntracts fr sle surces exceeding $50,000 r $500,000 fr Tenders and RFPs. See Charter Sectins 79(1) and 322(3). RECOMMENDATION It is recmmended that Halifax Reginal Cuncil: 1. Exercise its ptin t extend the municipal curbside slid waste cllectin cntracts and their respective standing ffer agreements fr a tw-year perid as per the terms and cnditins utlined in this reprt. 2. Direct staff t negtiate the installatin f sideguards fr the municipal curbside slid waste cllectin fleet and return t Cuncil utlining the ttal prject cst and a funding surce.
Extensin f RFP N. 14-336, Slid Waste Cllectin Cuncil Reprt - 2 - June 5, 2018 BACKGROUND Request fr Prpsals N. 14-336, Cllectin and Transprtatin f Surce-Separated Slid Waste prvides fr the curbside cllectin f garbage, rganics and recyclables in eight cllectin areas within the Municipality. These slid waste cllectin services cmmenced n July 1, 2015 fr an initial fur year perid t June 30, 2019. The Municipality has the right and ptin, t extend the RFP and cntracts fr tw additinal ne-year perids. During the extensin, the same terms and cnditins f the RFP apply, subject t the applicatin f CPI (all items, fr Canada, preceding twelve-mnth perid) t the mnthly and ther unit prices as cntained in the RFP respnses. The scpe f wrk, terms and cnditins that apply in the RFP and extensin perid with the fur service prviders in eight cllectin areas are summarized as fllws: Parties Halifax Reginal Municipality & Cntracted Service Prviders: REgrup Areas 1, 2 and 6; S/O# 2090008575 GFL Envirnmental Areas 3, 4 and 5; S/O# 2090008574 Le J Beazley Area 7; S/O # 2090008573 Eastern Shre Cartage Area 8; S/O# 2090008576 Service Delivery Residential Curbside Slid Waste Cllectin Specific Service Types Garbage, Organics & Recyclables Cllectin, separate peak leaf & yard waste cllectin, seasnal weekly rganics cllectin, etc. Duratin - Year ne (July 1, 2019 t June 30, 2020) - Year tw (July 1, 2020 t June 30, 2021) Pricing - The schedule f mnthly and ther unit pricing increases by CPI in the first extensin year (in cmparisn t the July 1, 2018 t June 30, 2019 schedule f prices) - The schedule f mnthly and ther unit pricing increases by CPI in the secnd extensin year (in cmparisn t the July 1, 2019 t June 30, 2020 schedule f prices) Terms and Cnditins - The Municipality s sle ptin t extend the cntract fr the first year and secnd year with a minimum six-mnth ntice perid prir t the end f each term - New serviced units added in each cllectin area are addressed annually by increasing the pricing n a per unit basis fr units added in the areas (included annually in the frecasted budget cst) - Fuel escalatin clause applies based n the riginal benchmark price fr diesel at the time f the riginal cntract respnses with a +/- 30% fuel cllar fr the then current mnthly diesel price in cmparisn t riginal - Cntractrs t prvide sufficient and reliable equipment t ensure cmpletin f the required cllectin services n the designated days within the required cllectin time perid
Extensin f RFP N. 14-336, Slid Waste Cllectin Cuncil Reprt - 3 - June 5, 2018 DISCUSSION On March 20, 2018 Halifax Reginal Cuncil directed staff t seek input frm the Accessibility Advisry Cmmittee n prgrams and guidelines with respect t the cllectin f curbside slid waste. In additin t this initiative, the Office f Diversity and Inclusin is in the prcess f develping an Accessibility Framewrk t imprve access t municipal prgrams and services. As part f develping the Accessibility Framewrk, public engagement sessins tk place between February and March 2018. The bjectives were t gather input abut steps the municipality can take t imprve accessibility as well as t gather input abut steps the municipality can take t be mre inclusive. Pending the final Accessibility Framewrk and discussins with the Accessibility Advisry Cmmittee, Slid Waste staff will be better able t prvide recmmendatins t Cuncil n any ptential changes t slid waste cllectin services. Depending n the scale and scpe f ptential changes, these ptins, subject t Cuncil apprval, may be able t be implemented within the next cllectin cntract. If staff were t prceed with issuing an RFP fr cllectin services t start July 1, 2019 withut accessibility ptins defined, it wuld be challenging t implement prgram changes in an existing cntract especially cnsidering the ptins have yet t be defined. If an RFP fr cllectin services was t be issued fr the end f the current cntract term, the start date fr the new cntract wuld be July 1, 2019. Any changes t incrprate accessibility ptins wuld likely nt happen until the end f that cntract which, based n past practice terms wuld likely be July 1, 2024. If the existing cntracts are extended fr tw years, it is likely that accessibility prgram changes culd be implemented July 1, 2021. Slid Waste is currently drafting the RFP fr rganics management. An ptin available fr vendrs is establishing an anaerbic digestin (AD) system which can create renewable natural gas (RNG) frm green bin material. If an AD prpnent is successful in securing the lng-term cntract with the RNG ptin, any RNG that is prduced may be able t be used in the cllectin fleet. The cntract extensin will prvide staff the ability t investigate pssibly integrating RNG fueled fleet int the system. In additin, extending the cntract is als fiscally prudent. Histrically, price increases fr cllectin cntracts have varied. Fr example, in 2008 (RFP N. 07-391), the first-year cst increase fr cllectin services (in cmparisn t the previus cntract) was apprximately 13%. In 2015, fr this current RFP N. 14-336, the first-year cst increase (in cmparisn t the previus cntract) was apprximately 1% (fr nine mnths f fiscal year impact based n new cntract start-up July 1, 2015). The extensin price adjustment is limited t CPI each year which is estimated t be apprximately 2%. The existing cntracts d nt require haulers t have sideguard prtectin fr the cllectin fleet hwever Cuncil culd direct staff t negtiate with the haulers t install them at HRM s cst. There are apprximately 65 garbage/rganics trucks (typically rear lad packers) and 14 split packer trucks used fr recycling in all areas. The estimated cst t install sideguards is $4,000 per vehicle, fr an estimated cst f $316,000. There are apprximately 18 side lad recycle trucks used in all areas fr recycling. The estimated cst t install side guards n the driver s side nly (side bin is lw enugh n the passenger side and runs the entire length f bdy) is $1,600 per vehicle, fr an estimated cst f $28,800. There are apprximately 6 white gds trucks used in all areas. The estimated cst t install side guards is $3,000 per vehicle, fr an estimated cst f $18,000. The estimated ttal cst t install sideguards n the abve fleet is $362,800. With nging vehicle repairs and maintenance there is a pssibility that the abve nted fleet may have t be augmented with ther trucks n a given day, therefre, additinal cllectin fleet may need t be equipped with sideguards in rder t ensure that all municipal curbside cllectin vehicles used n a particular day have the equipment. The ttal scpe and scale f the retrfit wuld have t be negtiated with vendrs t ensure full sideguard prtectin fr the fleet. Funding has nt been allcated in the 2018/19 budget fr this expense hwever it culd be included in the 2019/20 budget. Basis fr Recmmendatin The extensin will prvide:
Extensin f RFP N. 14-336, Slid Waste Cllectin Cuncil Reprt - 4 - June 5, 2018 time fr Diversity and Inclusin t develp the Accessibility Framewrk; time fr Slid Waste t meet with the Accessibility Advisry Cmmittee n the current cllectin prgram and receive input n pssible changes; an earlier implementatin date fr pssible accessibility changes; the ability t review and award the RFP fr rganics management which may prvide a surce f RNG fr the new fleet. value t taxpayers as the price increases are limited t CPI, which based n the average f past cllectin cntract renewals is mre cst effective. The inclusin f sideguards n municipal fleet is a Cuncil apprved plicy. FINANCIAL IMPLICATIONS Funding fr cllectin services is available and allcated in the annual Slid Waste Resurces Operating Budget Accunt R322 6399. The 2018/19 budgeted amunt in Accunt R322 6399 is $16,480,000 which includes budget allcatin fr curbside cllectin services, annual huse cunt adjustment, cndminium cllectin services, refrigerant remval services, etc. Table A belw prvides the list f cntractrs servicing the eight cllectin areas and the estimated curbside cllectin csts in each area fr each f the extensin years using a CPI estimate f 2% in each twelve mnths as the increase. The estimates fr the csts in each area include the regular garbage, rganics and recyclables cllectin services (based n the submitted mnthly and ther unit prices in each area) and estimates fr the number f separate trucks fr peak cllectin and weekly rganics (frm July t September) csts. The estimates d nt include yearly huse cunt adjustments r any fuel adjustments. Table A - Cllectin Cntract Prjectins Residential Area / Prgram Cntractr July 1/19 - June 30/20 July 1/20 - June 30/21 Halifax - 1 Regrup $3,088,074.26 $3,149,835.74 Dartmuth - 2 Regrup $2,067,360.29 $2,108,707.49 Bedfrd, Hammnds Plains - 3 GFL $1,337,229.06 $1,363,973.64 Western - 4 GFL $1,633,957.67 $1,666,636.82 Sackville, Fall River, etc. - 5 GFL $2,404,192.06 $2,452,275.90 Cle Harbur, Eastern Passage - 6 Regrup $1,508,855.64 $1,539,032.76 Prestns, Prter's Lake, etc. - 7 Le J Beazley $1,630,459.00 $1,663,068.18 Eastern Shre, Musqudbit Valley - 8 Eastern Shre Cartage $1,426,903.58 $1,455,441.65 Rural Dept Operatins (with area 8) $256,839.02 $261,975.80 Subttal $15,353,870.58 $15,660,947.99 Ttal inc. net HST $16,011,937.47 $16,332,176.22 Nte 1. CPI estimated at 2% per 12 mnth perid. Nte 2. Pricing in each area includes estimates fr number f separate trucks fr peak cllectin and weekly rganics csts. Nte 3. Estimates d nt include yearly huse cunt adjustments r any fuel adjustments. Staff have reviewed the average cst increases fr the cllectin services ver the perid Fiscal 15/16 t Fiscal 17/18 (same list f cllectin services as included in Table A). Over this perid, the average annual increase has been between 1.5% and 2%. CPI has als typically been in the 1.5 2% range ver this same perid. Staff have prjected the impact f the prpsed extensin f the RFP N. 14-336 prices and ther items in Fiscal 2019/20 n the perating budget Accunt R322 6399. Based n CPI f 2% and the prjected changes in ther items included in this perating budget categry (e.g. huse cunts, cndminium cllectin, CFC remval, etc.) the prjected budget wuld increase frm $16,480,000 in 2018/19 t $16,833,000 in 2019/20 (an increase f apprximately 2.1%).
Extensin f RFP N. 14-336, Slid Waste Cllectin Cuncil Reprt - 5 - June 5, 2018 Haulage f trailers frm the tw rural depts in cllectin area 8 is als included in RFP N. 14-336. Budget fr this haulage service is included in Accunt R328 6399. Unit prices fr this service wuld als increase by CPI each year ver the tw-year extensin perid. A funding surce fr sideguards has nt been identified. Staff intend t negtiate with the haulers firm pricing t install the sideguards and return t Cuncil with the ttal prject cst and ptential funding surces. RISK CONSIDERATION Risks assciated with cntract extensin are minimal. COMMUNITY ENGAGEMENT N/A ENVIRONMENTAL IMPLICATIONS There are n envirnmental implicatins t this reprt. ALTERNATIVES Cuncil may apprve the cntracts t be extended fr ne year verses tw. If Cuncil des nt apprve a cntract extensin, staff will prceed with drafting and issuing an RFP with an effective cntract date f July 1, 2019. Cuncil culd direct staff t nt negtiate the installatin f sideguards fr all municipal curbside cllectin fleet and instead direct staff t include the prvisin f sideguards in the next RFP fr cllectin services. ATTACHMENTS N/A A cpy f this reprt can be btained nline at halifax.ca r by cntacting the Office f the Municipal Clerk at 902.490.4210. Reprt Prepared by: Rbert Orr, P.Eng., Prgram Manager, Engineering & Cntract Services, 902.490.6698 Reprt Apprved by: Matt Keliher, Manager, Slid Waste Resurces, 902.490.6606 Financial Apprval by: Jerry Blackwd, Acting Directr, Finance and Asset Management/CFO, 902.490.6308 Reprt Apprved by: Bruce Zvaniga, P.Eng., Directr, Transprtatin and Public Wrks, 902.490.4855