CITY OF KINGSTON REPORT TO COUNCIL Report No.: 13-290 TO: FROM: RESOURCE STAFF: Mayor and Members of Council Jim Keech, President & CEO, Utilities Kingston John Giles, Manager, Solid Waste DATE OF MEETING: SUBJECT: Award of RFP F31-PWS-SW-2013-05 Supply of Organics Transfer, Transportation and Processing Services EXECUTIVE SUMMARY: Request for Proposal F31-PWS-SW-2013-05 for the supply of organics transfer, transportation and processing services closed on July 10, 2013 with two submissions being received. Scott Environmental Group Limited submitted the highest scoring proposal based on the evaluation criteria of price and qualifications. Purchasing By-law 2000-134, clause 3.4, specifies that when the lowest bid is not recommended, and when less than three valid responses are received, that the procurement must be approved by Council. RECOMMENDATION: THAT Scott Environmental Group Limited be awarded the contract in response to RFP F31- PWS-SW-2013-05 for the Supply of Organics Transfer, Transportation and Processing Services for a period of five (5) years, from April 7, 2014 to March 31, 2019 with an additional five (5) year extension awarded at the City s sole discretion subject to the negotiation of mutually agreeable unit prices; and THAT the option of accepting certified compostable plastic bin liners showing the Biodegradable Products Institute logo be approved; and THAT the Mayor and Clerk be authorized to sign a contract, in a form satisfactory to the Director of Legal Services. Council Meeting 18 130
- Page 2 - AUTHORIZING SIGNATURES: Jim Keech, President & CEO, Utilities Kingston Gerard Hunt, Chief Administrative Officer CONSULTATION WITH THE FOLLOWING COMMISSIONERS: Cynthia Beach, Sustainability & Growth Lanie Hurdle, Community Services Denis Leger, Transportation, Properties & Emergency Services ( indicates consultation not required) Council Meeting 18 131
- Page 3 - OPTIONS/DISCUSSION: RFP F31-PWS-SW-2013-05 for the supply of organics transfer, transportation and processing services for five years starting April 7, 2014 with an additional five year extension to be awarded at the City s sole discretion subject to the negotiation of mutually agreeable unit prices, closed on July 10, 2013 and two submissions were received. The organics are from the green bin program as well as the leaf, yard waste and brush delivered to the transfer site at KARC. The proposal pricing is based on estimated annual tonnages of green bin organics, leaves, yard waste and brush. The actual price paid will be based on delivered tonnages. Evaluation results are as follows: Vendor Estimated Score Annual Cost Scott Environmental Group Limited $621,850 87.9 1684567 Ontario Inc. o/a David N. Moore & Son Environmental $570,000 82.9 The RFP included an option for vendors to provide a price to process green bin organics in certified compostable plastic bin liners with the Biodegradable Products Institute (BPI) logo, which are currently not permitted in our residential program. Many residents have requested that we allow these liners for convenience purposes. BPI liners are currently permitted by Scott Environmental Group (SEG) from their commercial customers and by many other municipalities including Niagara Region, Hamilton, Halton Region, Peel Region, Toronto, York Region, Durham Region and Waterloo Region. Scott Environmental Group submitted an estimated annual increase of $25,000 if BPI certified bin liners are allowed, resulting in an estimated annual cost of $646,850 to transfer, transport and process organics, or 2.7% less than the current price of $664,510 using the same estimated tonnages. A 2012 study commissioned by Bag To Earth (who manufacture paper liners) on the impacts of paper, plastic and certified compostable plastic bin liners on green bin program performance, found that the choice of a particular type of liner did not significantly impact on participation or capture in programs. Other factors, such as the age of the program, frequency of organics collection, frequency of garbage collection, garbage fee structure, garbage bag limits, materials collected in the program, capacity of the green bin, and whether the green bin can be topped up with leaf and yard waste, had more of an influence on participation and capture rates. However, in response to resident requests, and as BPI certified bin liners can be included without increasing the current cost of the program, it is recommended that the option of allowing residents to utilize BPI certified compostable plastic bin liners in their green bin, be approved. Council Meeting 18 132
- Page 4 - The RFP specified that six factors would be used to evaluate proposals: 1. Estimated annual cost 70% 2. Company profile, experience and references 7% 3. Quality of approach & methodology to meet objectives 15% 4. Environmental impacts 3% 5. Social impacts 2% 6. Accessibility for Ontarians with Disabilities Act 3% Scott Environmental Group demonstrated good experience and methodology, having transferred and processed the City s organics since the start of the green bin program in 2009 at their Norterra Organics facility on Joyceville Road. They propose transferring green bin organics at their Fortune Crescent facility, which has the necessary approvals in place. David Moore & Son are in the process of constructing a food waste composting site in Belleville. They propose to construct a transfer facility at the KARC leaf and yard waste site, which does not have the necessary approvals in place at this time and will require an amendment to the existing Certificate of Approval (C of A). Their proposal does not have a contingency plan to transfer elsewhere should construction not be completed and/or an amendment to the C of A not be approved by April 2014. EXISTING POLICY/BY LAW: Purchasing By-law 2000-134, clause 3.4, specifies that when the lowest bid is not recommended, and when less than three valid responses are received, that the procurement must be approved by Council. NOTICE PROVISIONS: Not Applicable. ACCESSIBILITY CONSIDERATIONS: Accessibility criteria have been incorporated in the evaluation of the RFP. This report is available in accessible formats upon request. FINANCIAL CONSIDERATIONS: The recommended award which will start on April 7, 2014 will result in a decrease of $17,660, or 2.7% less than the March 2014 rate, to transfer, transport and process organics, using the same estimated tonnages. Council Meeting 18 133
- Page 5 - CONTACTS: Janis Morrison, Purchasing Coordinator, Financial Services 613-546-4291 x2229 OTHER CITY OF KINGSTON STAFF CONSULTED: Heather Roberts, Supervisor Solid Waste Disposal Tyler Lasko, Engineer Research & Policy Development 613-546-4291 x2702 613-546-4291 x2307 EXHIBITS ATTACHED: Not Applicable. Council Meeting 18 134