Council Approves New Waste Collection Contract for Richmond Hill
Contact: Terry Ricketts, Director, Environment Services, 905-771-9996, ext. 6504, terry.ricketts@richmondhill.ca
Council Approves New Waste Collection Contract for Richmond Hill
Contract features enhanced services and an estimated $572,000 annual cost reduction
RICHMOND HILL – At their meeting on Monday, May 8, Council approved a new waste collection contract for Richmond Hill. The new eight year contract, which begins on April 1, 2019, was awarded to Miller Waste Systems Inc., and has a total estimated cost of $41.1 million (excluding taxes).
“Waste collection has a huge impact on the health and safety of Richmond Hill and this is our biggest contract,” said Mayor Dave Barrow. “Any time we can enhance service levels while also saving money is a great result for our community.”
Richmond Hill’s current waste collection contract with Miller Waste Systems Inc. includes garbage, recycling, organics, yard waste and appliance collection for single-family homes, multi-residential and municipal buildings, as well as residents and small businesses in the Downtown Core. The contract value is approximately $5 to $6 million annually (excluding taxes), and is based on a cost per tonne model for waste collection.
The new contract builds upon existing service levels and includes new and enhanced services. With an annual cost of approximately $4.8 million, the new contract will save the Town just over half a million dollars each year. A breakdown of services, enhancements and cost savings effective April 1, 2019 is as follows:
Schedule changes:
- Yard waste collection will take place on the same days as regular waste collection (garbage, recycling and organics) as opposed to Mondays. This will save the Town more than $100,000 annually and align collection schedules for all waste.
- Yard waste collection will begin in mid-April as opposed to the beginning of April. This will save the Town an additional $20,000 annually.
New services:
- Recycling collection at super mailbox locations will be added in response to residents’ feedback about neighbourhood litter and convenience.
- Garbage and recycling collection from public (municipal) containers in the Downtown Core on Mondays, Wednesdays and Fridays (including holidays) will be added to address the community’s request for recycling services in public areas.
- Front-end collection of organics from large multi-residential buildings will facilitate and promote waste diversion in multi-residential buildings.
- Illegally dumped material along collection routes will be collected on an as needed basis and as directed by the Town to assist with addressing instances of illegal dumping promptly.
Enhanced tools:
- All new waste collection vehicles will be equipped with reversal cameras and two-person crews to improve efficiency and enhance safety.
- GPS tracking will be available on every vehicle with real-time access to this information by Town staff to improve Richmond Hill’s contract management capabilities.
- Data collection tools such as on-board scales and Radio Frequency Identification (RFID) on waste containers will provide better information about waste generation and diversion rates for multi-residential and municipal buildings.
Projected costs and savings:
Current contract cost (2016 costs projected to 2019) | $5,387,000 |
New contract cost (2019) | $4,815,000 |
Annual cost savings | $572,000 (10.6%) |
The estimated annual savings of $572,000 is due to negotiated lower pricing ($435,000) and the modified yard waste collection schedule ($137,000).
Over the past few years, staff evaluated service levels through a comprehensive information gathering and analysis process, which included pilot projects, municipal benchmarking, public and vendor consultation, as well as cost benefit analysis. Discussions between the Town and Miller Waste Systems Inc. to refine the proposed contract took place between September 2016 and February 2017.
Current waste collection services will continue with existing service levels until March 31, 2019. Information on this can be found at RichmondHill.ca/Waste and in the Waste Management Calendar delivered to households annually in December.
The new contract will begin on April 1, 2019 and run until April 1, 2027 with the option to extend the contract for an additional two, one year terms. The transition is expected to be seamless.
