Item - 2017.PW18.3

Tracking Status

  • City Council considered this item on January 31, 2017 and referred this item to an official or another committee or body. Consult the text of the decision for further information on the referral.
  • This item was considered by Public Works and Infrastructure Committee on January 18, 2017 and was adopted with amendments. It will be considered by City Council on January 31, 2017.

PW18.3 - Future Curbside Waste Collection Service Delivery East of Yonge Street

Decision Type:
ACTION
Status:
Referred
Wards:
All

City Council Decision

City Council on January 31, 2017, referred Item PW18.3 to the General Manager, Solid Waste Management Services and directed the General Manager, Solid Waste Management Services, in consultation with the Executive Director, Human Resources and the Director, Employee and Labour Relations, to report to the Public Works and Infrastructure Committee, having regard to the term of the current Collective Agreement with Canadian Union of Public Employees Local 416 regarding:

 

a.  the results of additional consultation with Canadian Union of Public Employees representatives with respect to options to continue to improve public sector waste collection service performance across the City;

 

b.  an overview of a comprehensive management program to be implemented in the Solid Waste Management Services Division as it relates to oversight of all currently contracted waste services as well as public sector service delivery;

 

c.  a review of options for future waste collection service, having regard to the current collective agreement with Canadian Union of Public Employees Local 416;

 

d.  an analysis of the Waste-Free Ontario Act and potential implications on future curbside waste collection service provision in the City;

 

e.  a review of contract lengths with private waste collection providers in other municipalities;

 

f.  an analysis of the long-term cost implications of diversion rates and the comparison within each district;

 

g.  updated performance data and financial metrics, including cost/stop and cost/tonne within each district; and

 

h.  include funds in the 2017 Capital Budget and provide authority for the immediate purchase of vehicles as required and assessed by the General Manager, Solid Waste Management Services.

 

Confidential Attachments 2 and 3 to the report (January 6, 2017) from the Deputy City Manager, Cluster B, and the General Manager, Solid Waste Management Services remain confidential in their entirety in accordance with the provisions of the City of Toronto Act, 2006, as they relate to labour relations matters and the security of the property of the City, respectively.

Confidential Attachment - Labour relations or employee negotiations and security of the property of the municipality or local board

Background Information (Committee)

(January 6, 2017) Report from the Deputy City Manager, Cluster B, and the General Manager, Solid Waste Management Services on Future Curbside Waste Collection Service Delivery East of Yonge Street
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-99693.pdf
Attachment 1 - Summary of Managed Competition Process
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-99840.pdf
Attachment 2 - Confidential - Staffing and Labour Relations Implications
Attachment 3 - Confidential - Updated Financial Information
Attachment 4 - Independent Review Update
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-99843.pdf
Attachment 5 - Letter from Knowles Consultancy Services Inc. on Fairness Review of the Future Curbside Waste Collection Service Delivery East of Yonge Street Report
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-100406.pdf
(January 18, 2017) Presentation from the General Manager, Solid Waste Management Services on Future Curbside Waste Collection Service Delivery East of Yonge Street
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-100411.pdf

Background Information (City Council)

(January 23, 2017) Supplementary report from the General Manager, Solid Waste Management Services on Future Curbside Waste Collection Service Delivery East of Yonge Street (PW18.3a)
https://www.toronto.ca/legdocs/mmis/2017/cc/bgrd/backgroundfile-100524.pdf
(January 24, 2017) Supplementary report from the City Solicitor on Future Curbside Waste Collection Service Delivery East of Yonge Street (PW18.3b)
https://www.toronto.ca/legdocs/mmis/2017/cc/bgrd/backgroundfile-100533.pdf
Attachments 1 and 2 - correspondence from Watson Jacobs McCreary LLP and from the City Solicitor
https://www.toronto.ca/legdocs/mmis/2017/cc/bgrd/backgroundfile-100534.pdf

Communications (Committee)

(January 12, 2017) E-mail from George Turner (PW.New.PW18.3.1)
(January 18, 2017) Submission from Councillor Jim Karygiannis (PW.New.PW18.3.2)
(January 18, 2017) Letter from Emily Alfred, Waste Campaigner, Toronto Environmental Alliance (PW.New.PW18.3.3)
https://www.toronto.ca/legdocs/mmis/2017/pw/comm/communicationfile-67177.pdf
(January 18, 2017) Submission from Hamish Wilson (PW.New.PW18.3.4)

Communications (City Council)

(January 26, 2017) Letter from Gord White, Chief Executive Officer, Ontario Waste Management Association (CC.Supp.PW18.3.5)
https://www.toronto.ca/legdocs/mmis/2017/cc/comm/communicationfile-67333.pdf
(January 31, 2017) Petition from Councillor Jim Karygiannis, Ward 39, Scarborough-Agincourt, headed "Say No to Privatizing Garbage Collection East of Yonge Street", containing the names of approximately 5,585 persons, filed during the Routine Matters portion of the meeting (CC.New)
(January 31, 2017) Petition from Councillor Cesar Palacio, Ward 17, Davenport, headed "Say No to Privatizing Garbage Collection East of Yonge Street", containing the names of approximately 945 persons, filed during the Routine Matters portion of the meeting (CC.New)

Motions (City Council)

1 - Motion to Refer Item moved by Mayor John Tory (Carried)

That:

 

1.  City Council refer the Item to the General Manager, Solid Waste Management Services and direct the General Manager, in consultation with the Executive Director of Human Resources and the Director, Employee and Labour Relations, to report to the Public Works and Infrastructure Committee, having regard to the term of the current Collective Agreement with CUPE Local 416 regarding:

 

a.  the results of additional consultation with CUPE representatives with respect to options to continue to improve public sector waste collection service performance across the City;

b.  an overview of a comprehensive management program to be implemented in the Solid Waste Management Services Division as it relates to oversight of all currently contracted waste services as well as public sector service delivery;

c.  a review of options for future waste collection service, having regard to the current collective agreement with CUPE Local 416;

d.  an analysis of the Waste-Free Ontario Act and potential implications on future curbside waste collection service provision in the City;

e.  a review of contract lengths with private waste collection providers in other municipalities;

f.  an analysis of the long-term cost implications of diversion rates and the comparison within each district;

g.  updated performance data and financial metrics, including cost/stop and cost/tonne within each district; and

h.  include funds in the 2017 Capital Budget and provide authority for the immediate purchase of vehicles as required and assessed by the General Manager, Solid Waste Management Services.

Vote (Refer Item) Jan-31-2017 11:14 AM

Result: Carried Majority Required - PW18.3 - Mayor Tory - motion 1 - Refer the item
Total members that voted Yes: 40 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Justin J. Di Ciano, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson, John Tory, Kristyn Wong-Tam
Total members that voted No: 4 Members that voted No are Gary Crawford, Michael Ford, Stephen Holyday, Jaye Robinson
Total members that were Absent: 0 Members that were absent are

Motion to End Debate moved by Councillor Shelley Carroll (Carried)

That in accordance with the provisions of Chapter 27, Council Procedures, City Council end the debate on referral motion 1 by Mayor Tory and take the vote immediately.

Vote (End Debate) Jan-31-2017 11:13 AM

Result: Carried Two-Thirds Required - PW18.3 - Carroll - End debate on referral
Total members that voted Yes: 30 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Justin J. Di Ciano, Frank Di Giorgio, John Filion, Paula Fletcher, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Norman Kelly, Chin Lee, Giorgio Mammoliti, Mary-Margaret McMahon, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Jaye Robinson, Michael Thompson, John Tory
Total members that voted No: 14 Members that voted No are Joe Cressy, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, Michael Ford, Jim Karygiannis, Mike Layton, Josh Matlow, Pam McConnell, Joe Mihevc, Gord Perks, Anthony Perruzza, David Shiner, Kristyn Wong-Tam
Total members that were Absent: 0 Members that were absent are

Point of Order by Councillor John Campbell

Councillor Campbell, rising on a Point of Order, stated that he would like clarification on the rules for questioning the Mayor.

Ruling by Speaker Frances Nunziata
Speaker Nunziata accepted the Point of Order and ruled that Members may ask questions of the Mayor for five minutes on the substance of the Item, and that questions do not need to be a clarification of the motion.


Point of Privilege by Councillor Giorgio Mammoliti

Councillor Mammoliti, rising on a Point of Privilege, stated that the Speaker has been insulting towards him and has called him names from the Chair.

Ruling by Speaker Frances Nunziata
Speaker Nunziata did not accept the Point of Privilege.

PW18.3 - Future Curbside Waste Collection Service Delivery East of Yonge Street

Decision Type:
ACTION
Status:
Amended
Wards:
All

Confidential Attachment - Labour relations or employee negotiations and security of the property of the municipality or local board

Committee Recommendations

The Public Works and Infrastructure Committee recommends that:

 

1. City Council authorize the General Manager, Solid Waste Management Services, and the Director of Purchasing and Materials Management Division, to undertake a procurement process for residential curbside collection services for District 4 only, including the authority to consider an in-house bid submission from internal City employees in the Solid Waste Management Services Division as part of a managed competition process, in accordance with the process set out in this report, including but not limited to the requirements as summarized in Attachment 1 to the report (January 6, 2017) from the Deputy City Manager, Cluster B and the General Manager, Solid Waste Management Services.

 

2. The General Manager, Solid Waste Management Services, and the Director, Purchasing and Materials Management Division report to Council on the results of the process for authorization to award a contract  for a term of six (6) years; with options to extend for an additional two (2) separate one (1) year extensions at the sole discretion of the General Manager, Solid Waste Management Services.

 

3. City Council further authorize the retention of:

 

a. external consulting support on an as required basis to support the Internal Bid Team in the development of their internal bid submission; and,

 

b. a Fairness Monitor to oversee the Procurement process, in consultation with the Director, Purchasing and Materials Management Division.

 

4. City Council authorize the General Manager, Solid Waste Management Services to consult with Toronto Civic Employees Union (TCEU), LOCAL 416 - Canadian Union of Public Employees (CUPE) representatives and invite their participation in the recommended managed competition process, in accordance with the process set out in this report, including but not limited to the requirements as summarized in Attachment 1 to the report (January 6, 2017) from the Deputy City Manager, Cluster B and the General Manager, Solid Waste Management Services, to be confirmed by Toronto Civic Employees Union (TCEU), LOCAL 416 - Canadian Union of Public Employees (CUPE), within 30 days of the Council Decision approving the managed competition process. 

 

5. If Toronto Civic Employees Union (TCEU), LOCAL 416 - Canadian Union of Public Employees (CUPE) decline to participate in the managed competition process, City Council authorize the General Manager, Solid Waste Management Services to issue formal notification of contracting out to the Union in accordance with the provisions of the Collective Agreement between the City and Toronto Civic Employees Union (TCEU), LOCAL 416 - Canadian Union of Public Employees (CUPE).

 

6. City Council direct the General Manager, Solid Waste Management Services, to:

 

a. delay, in consultation with the Director, Purchasing and Materials Management Division, any procurement activities with respect to residential waste collection in District 3 until the results of the District 4 Procurement are determined and an appropriate procurement timeline for District 3, taking into consideration staffing and fleet related implications, is prepared and approved by Council; and,

 

b. prepare, in consultation with the General Manager, Fleet Services a fleet replacement plan in District 3 and delay the purchase of any waste collection vehicles associated with service delivery in District 4 until the results of the recommended Procurement process are known.

 

7. The information in Confidential Attachment 2 to the report (January 6, 2017) from the Deputy City Manager, Cluster B, and the General Manager, Solid Waste Management Services remain confidential in its entirety as it relates to the security of the property of the City and labour relations matters and that the information in Confidential Attachment 3 in the report remain confidential in its entirety as it relates to security of the property of the City.

Decision Advice and Other Information

The Public Works and Infrastructure Committee requested the General Manager, Solid Waste Management Services to submit a supplementary report directly to City Council that indicates the number of employees who are employed by the City and who provide the service that is the subject of this report, being the collection of residential waste in District 4.

 

The General Manager, Solid Waste Management Services gave a presentation to the Public Works and Infrastructure Committee.

Origin

(January 6, 2017) Report from the Deputy City Manager, Cluster B, and the General Manager, Solid Waste Management Services

Summary

Since the preparation of Item PW7.4 - Curbside Waste Collection Services Review: Comparison of Curbside Waste Collection Services East and West of Yonge Street, originally scheduled at the meeting of Public Works and Infrastructure Committee on September 22, 2015, a number of circumstances have changed resulting in the need for an update to the original Staff Report.  These changes include:

 

- Additional detailed analyses, in particular with respect to fleet costs, have been completed as part of the 2017 budget preparation cycle and as a result, cost per tonne and cost per household forecasts have been revised from the original numbers presented in 2015.

 

- An updated analysis has been prepared to reflect changes to redeployment efforts and costs, primarily as a result of changes to the new TCEU, LOCAL 416 - CUPE collective agreement and staff changes since the original estimates prepared pre-negotiation of the collective agreement. 


- 2015 financial, tonnage, and performance related data has been incorporated.

 

- A new contract for waste collection services in District 1 (Etobicoke area) began July 1, 2015, with supporting performance has been incorporated.

 

- Feedback provided by Ernst & Young (EY) as part of the independent report review completed in 2015, has been incorporated into the amended Report.

 

- A better understanding of the financial and social implications of a deferred decision are now better understood.

 

These changes are sufficient in nature such that the original recommendations prepared for September 2015, should be updated.

 

The challenge with respect to this service delivery issue is to provide verifiable and credible information with respect to the current state of the private sector waste collection marketplace as it relates specifically to the City of Toronto, and its unique waste collection districts, and how that compares to the current internal service delivery approach.

 

To address this challenge, staff are recommending an alternative procurement approach, known as a managed competition, which consists of a procurement process incorporating competitive bids from both the private sector and an internal City bid. A managed competition process provides a consistent, fair and transparent approach when comparing in-house and external service delivery costs and will be conducted in accordance with all the associated standard City procurement protocols.  Managed competition procurements strike an excellent balance between conflicting positions, namely privatization and maintaining in-house service delivery, as they provide a platform to compare costs within a competitive procurement process. This recommendation is conditional on the agreement of TCEU, LOCAL 416 - CUPE to engage in the managed competition process on behalf of its employees. In the absence of such an agreement, staff recommend that the City continue to engage in a traditional procurement process to secure bids, from third party contractors qualified to provide this service.  Under the Purchasing Chapter of the Municipal Code, in-house bids may only be accepted from internal City employees or divisions, where Council has given prior approval, including approval of the process for fairly evaluating those submissions.

 

It is proposed that this process would be utilized for District 4 first, and the results of the managed competition in District 4 will be used as a guide for future service delivery recommendations in District 3. The preferred approach for this procurement is a Request for Pre-Qualification followed by a Request for Quotation (referenced herein as the "Managed Competition Procurement").

 

The material presented herein supersedes all previous information, claims and recommendations as presented in the Public Works and Infrastructure Committee deferred Item PW7.4 - Curbside Waste Collection Services Review: Comparison of Curbside Waste Collection Services East and West of Yonge Street.

Background Information

(January 6, 2017) Report from the Deputy City Manager, Cluster B, and the General Manager, Solid Waste Management Services on Future Curbside Waste Collection Service Delivery East of Yonge Street
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-99693.pdf
Attachment 1 - Summary of Managed Competition Process
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-99840.pdf
Attachment 2 - Confidential - Staffing and Labour Relations Implications
Attachment 3 - Confidential - Updated Financial Information
Attachment 4 - Independent Review Update
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-99843.pdf
Attachment 5 - Letter from Knowles Consultancy Services Inc. on Fairness Review of the Future Curbside Waste Collection Service Delivery East of Yonge Street Report
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-100406.pdf
(January 18, 2017) Presentation from the General Manager, Solid Waste Management Services on Future Curbside Waste Collection Service Delivery East of Yonge Street
https://www.toronto.ca/legdocs/mmis/2017/pw/bgrd/backgroundfile-100411.pdf

Communications

(January 12, 2017) E-mail from George Turner (PW.New.PW18.3.1)
(January 18, 2017) Submission from Councillor Jim Karygiannis (PW.New.PW18.3.2)
(January 18, 2017) Letter from Emily Alfred, Waste Campaigner, Toronto Environmental Alliance (PW.New.PW18.3.3)
https://www.toronto.ca/legdocs/mmis/2017/pw/comm/communicationfile-67177.pdf
(January 18, 2017) Submission from Hamish Wilson (PW.New.PW18.3.4)

Speakers

Emily J Alfred, Waste Campaigner, Toronto Environmental Alliance (Submission Filed)
Bob Rae
Matt Figliano, Executive Vice-President, Canadian Union of Public Employees (CUPE) Local 416
Tim Maguire, President, Canadian Union of Public Employees (CUPE) Local 79
Hamish Wilson
Brian Demareski, Solid Waste Unit Chair, City of Toronto
Terry Rolfe, Truck Driver, City of Toronto
Sean Meagher, Executive Director, Social Planning Toronto
Mohammed Hashim, Senior Organizer, Toronto and York Region Labour Council
Councillor Janet Davis
Councillor Paula Fletcher
Councillor Mike Layton
Councillor Jim Karygiannis
Councillor Joe Mihevc
Councillor Shelley Carroll
Councillor Gord Perks
Councillor Ana Bail„o
Councillor Pam McConnell

Motions

1 - Motion to Defer Item Indefinitely moved by Councillor Giorgio Mammoliti (Lost)

Vote (Defer Item Indefinitely) Jan-18-2017

Result: Lost Majority Required
Total members that voted Yes: 1 Members that voted Yes are Giorgio Mammoliti
Total members that voted No: 4 Members that voted No are Christin Carmichael Greb, Stephen Holyday, Chin Lee, Jaye Robinson (Chair)
Total members that were Absent: 1 Members that were absent are Anthony Perruzza

2 - Motion to Amend Item (Additional) moved by Councillor Jaye Robinson (Carried)

That the General Manager, Solid Waste Management Services, submit a supplementary report directly to City Council that indicates the number of employees who are employed by the City and who provide the service that is the subject of this report, being the collection of residential waste in District 4.


3 - Motion to Adopt Item as Amended moved by Councillor Jaye Robinson (Carried)

Vote (Adopt Item as Amended) Jan-18-2017

Result: Carried Majority Required
Total members that voted Yes: 3 Members that voted Yes are Christin Carmichael Greb, Stephen Holyday, Jaye Robinson (Chair)
Total members that voted No: 2 Members that voted No are Chin Lee, Giorgio Mammoliti
Total members that were Absent: 1 Members that were absent are Anthony Perruzza
Source: Toronto City Clerk at www.toronto.ca/council