Item - 2015.PW7.4

The purpose of this report is to present the findings on the comparison of curbside collection districts in terms of costs, diversion rates, service levels and performance. It also provides an analysis of the financial and collection implications associated with the scenarios for contracting out collection services east of Yonge Street (Districts 3 and 4). A review of waste collection service delivery approaches in similar jurisdictions has also been undertaken. An independent financial analysis verification of the analysis was conducted by Ernst & Young LLP and is provided in Appendix C.

Curbside waste collection services west of Yonge Street (Districts 1 and 2) are provided under contract by private sector service providers, and east of Yonge Street (Districts 3 and 4) are provided in-house by City staff. The analysis indicates that the current service delivery approach provides a competitive environment that is effective in terms of costs and performance.

There have been productivity improvements for in-house collection following the decision to contract out District 2. Provided that these gains are sustained and improved, the best value and lowest risk to the City of Toronto at this time is to continue with the current model.   A blend of in-house and private sector service provision also manages operational and financial risk and provides flexibility for the curbside waste collection system to adapt to changes.