Councillor David Shiner, a member of Mayor John Tory’s executive, has also asked Auditor General Beverly Romeo-Beehler to review whether staff grossly underestimated potential cost savings related to replacing the city’s fleet of trucks when they recommended against contracting out in September.
“The question to me was, what’s the real cost of the fleet?” Shiner said Sunday. He’ll be asking executive committee to suspend all spending on new trucks later this month.
In a letter to Romeo-Beehler dated Jan. 14, Shiner questioned whether two contracts awarded last year for the purchase of dozens of new trucks “represents sound decision making.”
After staff reported in September that there were no potential cost savings in outsourcing east-end collection, that debate was deferred until after the city negotiates a new collective agreement with the union representing outside workers, including solid waste employees. The contract with CUPE Local 416 expired Dec. 31.
The problem, Shiner argued, is the 2016 capital budget accounts for $164 million for vehicle replacement over 10 years — what averages out to $16.4 million annually. But a September staff report and 2014 auditor general report calculated the potential savings of eliminating city garbage collection as only $3 million to $4 million annually.
Shiner, who voted in favour of contracting out west-end collection in 2011, questioned whether the staff “substantially underestimated” the potential savings in the east.
However, the total capital budget for replacing the solid waste division’s fleet may include the cost of vehicles and trucks not used specifically for east-end collection.
The city is currently responsible for collection in two east-end districts, city-wide night collection and toxic waste pick-up. Some of the district vehicles east of Yonge St. are shared with night collection, staff noted in their September report. And some solid waste vehicles, the report said, are responsible for “transfer, loading and maintenance activities.”
Based on several factors — including increased productivity in the east end since Green For Life (GFL) took over west-end collection — staff concluded in September there were no savings to be found in further outsourcing pick-up.
Ernst and Young reviewed the staff analysis and found it “reasonable.”
“Councillor Shiner’s letter is thin on the details about the different reports he is comparing,” said Councillor Gord Perks, who has opposed outsourcing garbage pick-up. “I continue to be alarmed how some members of council just don’t care that it’s often the case that delivering something with public forces is cheaper.”
Meanwhile, the city’s bid committee has approved two separate contracts totaling $19.7 million and $19.9 million for replacing 114 trucks in the existing fleet.
The first contract, awarded in August, includes $11.2 million approved for 37 trucks with the option of an additional $8 million over three years if budget allows.
The second contract, awarded in December, includes $9.5 million for 25 trucks with an additional $10.4 million option over three years for the remaining trucks.
“I saw that that contract was awarded in December and couldn’t understand why,” Shiner said, noting those decisions never came to council.
Staff noted in reports to bid committee that they had the proper authority to award the contracts without a council vote.
Shiner said he’ll be asking executive committee to halt any further spending on garbage trucks until labour negotiations are complete.
The auditor general did not return a request for comment Sunday.
Source: thestar.com/
Author: Jennifer Pagliaro
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