Item - 2014.AU14.5
Tracking Status
- City Council adopted this item on April 1, 2014 without amendments.
- This item was considered by the Audit Committee on February 28, 2014 and adopted without amendment. It will be considered by City Council on April 1, 2014.
AU14.5 - District 2 Curbside Collection Contract - Review of Cost Savings and Opportunities for Improving Contract Monitoring
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on April 1, 2 and 3, 2014, adopted the following:
1. City Council request the City Manager to report actual cost savings achieved on District 2 curbside collections as requested by Council.
2. City Council request the General Manager, Solid Waste Management Services to ensure that all financial, performance and operational information in future collections operations reports are accurate and provide a consistent and complete reflection of the Contract costs and performance-related activities.
3. City Council request the General Manager, Solid Waste Management Services to implement a systematic approach for conducting and documenting daily on-road inspections, which ensures that:
a. random on-road inspections are reasonably distributed amongst all vehicles;
b. vehicles are selected from a complete and accurate vehicle fleet listing; and
c. significant performance deficiencies are followed up to ensure that appropriate corrective action was taken.
4. City Council request the General Manager, Solid Waste Management Services to conduct periodic analyses of the overall on-road inspection results; where recurring deficiencies are identified, corrective action be taken where appropriate.
5. City Council request the General Manager, Solid Waste Management Services to ensure that contract monitoring staff use the available Global Positioning Systems (GPS) technology to verify Contractor performance, and document such use.
6. City Council request the General Manager, Solid Waste Management Services to ensure collection services are completed on a timely basis in accordance with the City by-law governing residential waste collection.
7. City Council request the General Manager, Solid Waste Management Services to continue to monitor Contract deficiencies and assess liquidated damages if and when determined to be appropriate, and to document decisions regarding the assessment or waiver of liquidated damages.
8. City Council request the General Manager, Solid Waste Management Services to implement a standard process for reviewing closed service requests, including non-qualifying service requests. Reviews should be documented and include an evaluation of the adequacy of Contractor investigation notes, timeliness of resolution, and validity of closure.
9. City Council request the General Manager, Solid Waste Management Services to implement the practice of trend analyses for monthly tonnages, late finishing times and any other relevant operational and performance indicators, and to ensure that any significant anomalies identified are investigated to the extent appropriate in the circumstances.
10. City Council request the General Manager, Solid Waste Management Services to establish a standard process for documenting meetings and other informal correspondence with the Contractor regarding performance or compliance issues; additionally, evidence of ongoing communications be retained in a central location.
11. City Council request the General Manager, Solid Waste Management Services, to consider conducting periodic evaluations of the Contractor’s performance against a set of specific assessment criteria that are aligned with Contract provisions.
12. City Council request the General Manager, Solid Waste Management Services to document detailed procedures for District 2 Contract monitoring and administrative activities; the documentation requirements for each activity be specified as part of the detailed procedures.
13. City Council request the General Manager, Solid Waste Management Services to direct all District 2 Contract monitoring staff to conduct monitoring and administrative activities in accordance with the documented procedures.
14. City Council request the General Manager, Solid Waste Management Services to remind relevant staff of the need to thoroughly review Contractor invoices prior to payment.
15. City Council request the General Manager, Solid Waste Management Services to ensure that the details and payment structure for any future contingency work are documented as soon as practicable.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-66976.pdf
Motions (City Council)
Vote (Adopt Item) Apr-01-2014 2:12 PM
| Result: Carried | Majority Required - AU14.5 - Adopt the item |
|---|---|
| Total members that voted Yes: 31 | Members that voted Yes are Maria Augimeri, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Rob Ford, Mary Fragedakis, Norman Kelly, Mike Layton, Peter Leon, Gloria Lindsay Luby, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 14 | Members that were absent are Paul Ainslie, Ana Bailão, Josh Colle, Vincent Crisanti, Paula Fletcher, Doug Ford, Mark Grimes, Chin Lee, Giorgio Mammoliti, Pam McConnell, Denzil Minnan-Wong, John Parker, Karen Stintz, Kristyn Wong-Tam |
AU14.5 - District 2 Curbside Collection Contract - Review of Cost Savings and Opportunities for Improving Contract Monitoring
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the City Manager to report actual cost savings achieved on District 2 curbside collections as requested by Council.
2. City Council request the General Manager, Solid Waste Management Services, to ensure that all financial, performance and operational information in future collections operations reports are accurate and provide a consistent and complete reflection of the Contract costs and performance-related activities.
3. City Council request the General Manager, Solid Waste Management Services, to implement a systematic approach for conducting and documenting daily on-road inspections, which ensures that:
a. random on-road inspections are reasonably distributed amongst all vehicles;
b. vehicles are selected from a complete and accurate vehicle fleet listing; and
c. significant performance deficiencies are followed up to ensure that appropriate corrective action was taken.
4. City Council request the General Manager, Solid Waste Management Services, to conduct periodic analyses of the overall on-road inspection results. Where recurring deficiencies are identified, corrective action be taken where appropriate.
5. City Council request the General Manager, Solid Waste Management Services, to ensure that contract monitoring staff use the available GPS technology to verify Contractor performance, and document such use.
6. City Council request the General Manager, Solid Waste Management Services, to ensure collection services are completed on a timely basis in accordance with the City by-law governing residential waste collection.
7. City Council request the General Manager, Solid Waste Management Services, to continue to monitor Contract deficiencies and assess liquidated damages if and when determined to be appropriate, and to document decisions regarding the assessment or waiver of liquidated damages.
8. City Council request the General Manager, Solid Waste Management Services, to implement a standard process for reviewing closed service requests, including non-qualifying service requests. Reviews should be documented and include an evaluation of the adequacy of Contractor investigation notes, timeliness of resolution, and validity of closure.
9. City Council request the General Manager, Solid Waste Management Services, to implement the practice of trend analyses for monthly tonnages, late finishing times and any other relevant operational and performance indicators, and to ensure that any significant anomalies identified are investigated to the extent appropriate in the circumstances.
10. City Council request the General Manager, Solid Waste Management Services, to establish a standard process for documenting meetings and other informal correspondence with the Contractor regarding performance or compliance issues. Additionally, evidence of ongoing communications be retained in a central location.
11. City Council request the General Manager, Solid Waste Management Services, to consider conducting periodic evaluations of the Contractor’s performance against a set of specific assessment criteria that are aligned with Contract provisions.
12. City Council request the General Manager, Solid Waste Management Services, to document detailed procedures for District 2 Contract monitoring and administrative activities. The documentation requirements for each activity be specified as part of the detailed procedures.
13. City Council request the General Manager, Solid Waste Management Services, to direct all District 2 Contract monitoring staff to conduct monitoring and administrative activities in accordance with the documented procedures.
14. City Council request the General Manager, Solid Waste Management Services, to remind relevant staff of the need to thoroughly review Contractor invoices prior to payment.
15. City Council request the General Manager, Solid Waste Management Services, to ensure that the details and payment structure for any future contingency work are documented as soon as practicable.
Origin
Summary
A review of the District 2 daytime residential curbside collection contract was requested by City Council at its meeting of May 17, 2011 and consequently, included in the Auditor General’s 2013 Work Plan. City Council awarded the District 2 curbside collection contract to Green For Life Environmental East Corporation at its meeting of October 24 and 25, 2011. The contracted services began on August 7, 2012 and include the collection, transportation, and off-loading of garbage, bulky items, recyclable materials, organic materials and yard waste to City transfer and processing facilities.
The objective of this review was to evaluate the adequacy and effectiveness of contract management and administrative controls in place to ensure diversion targets, customer service targets and cost savings were achieved.
This report contains 15 recommendations along with a management response to each of the recommendations. Significant cost savings have been achieved since the implementation of the Contract. Our review identifies opportunities for improving contract monitoring and reporting out of results. Addressing the recommendations in this report will strengthen the administrative controls in place to enhance contract management and ensure diversion and customer service targets continue to be met.
Background Information
https://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-66976.pdf