2012 council/committee calendar - the Township of Lanark Highlands

DISCUSSION
On January 1 st 2009, the Township of Lanark Highlands began a new way of doing business
by contracting out the operations and maintenance of its seven (7) waste sites to a private
contractor. Over the past three years, the administration and operations for this contract has
been a learning experience for both the contractor and Township staff.
During that time, a strong working relationship has formed and continues to develop as
unique and challenging situations arise, (“Getting the bugs out”, in a manner of speaking).
Mr. Alexander has proven to be innovative with ideas of improving operational matters and
mindful of the Township’s financial interests over the past three years.
Staff feels that to change contractors at this time would be premature due to the routines that
have now been established and would not allow the full benefit of the time and resources
spent to date to be realized over the next two years.
Earlier conversations with Mr. Alexander to exercise “Section 3” of the Contract have been
positive and he would be willing to accept the extension for two years if Council also agreed.
OPTIONS CONSIDERED
Option #1 – That Council agrees to exercise “Section 3” within the current contract and
extend it from January 1 st 2012 until December 31 st 2013 with Mr. Ewen Alexander.
Option #2 – That Council direct staff to initiate a tendering process to accept Requests for
Quotes for a new 3 year contract.
FINANCIAL IMPLICATIONS
Over the past three years of the contract the expenses have been as follows:
2009 - $237,600 (actual)
2010 - $238,400 (actual)
2011 - $242,000 (year end estimate)
It is noted in the contract that the CPI be used to govern the cost of inflation each year.
If the CPI for the next two years is 3% then the proposed budget amounts will be as follows:
2012 - $249,260 (budget)
2013 - $256,740 (budget)
The main difference between the Tendered amount and the Actual amounts was based on
the C&D Waste not being hauled out of the Township.
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