Regular Board Meeting Minutes
September 11, 2019
B. Large Volume Waste Hauler Agreement with Waste Connections to Deliver 5,000 tonnes of Refuse for the 3 year period September 1, 2019 to August 31, 2022
The General Manager stated that the current two year contract between Waste Connections and the Authority expired on August 31, 2019. Waste Connections would like to enter into a new three year agreement for the period September 1, 2019 to August 31, 2022.
The General Manager explained that the Authority offers what is called "large volume tipping fee rates" to those landfill customers who agree to sign a contract for one or more years. These rates are at a discount to the regular, or gate rate. In order to qualify for a discounted rate, the customer is required to sign a "put or pay" contract. This means that they would have to deliver the tonnage they said they would and if they didn't, they would still owe the Authority for the dollar value of the undelivered tonnage. The General Manager noted that the Authority does not have many of these large volume agreements that would qualify for the reduced rates.
Mr. McNamara asked where this refuse comes from and if it is waste from outside Windsor-Essex. The General Manager stated that the waste is from Waste Connection's local customers and not outside Windsor-Essex.
Mr. Meloche asked if this contract is capped at 5,000 tonnes annually. The General Manager stated it is not and that 5,000 is the annual minimum for this contract.
The Manager of Finance and Administration stated that the waste that Waste Connections is hauling is from their bin service. The waste is also from small ICI customers that have a bin service. The Manager of Finance and Administration stated it is too far for Waste Connections to drive to their own facility in Windsor.
Mr. McKenzie asked if there is any value or precedent for those outside of the area being tempted because of the rates. The General Manager stated that Waste Connections has much more waste than this. Waste Connections brings most of their waste to Michigan.
- Moved by Marc Bondy
- Seconded by Gary Kaschak
THAT the Authority approve the agreement with Waste Connections of Canada for Waste Connections to deliver at least 5,000 tonnes of refuse per year to the Authority's three disposal sites. The term of the contract will be September 1, 2019 – August 31, 2022. The rate of refuse delivered to the Regional Landfill will be $45/tonne for the term of the agreement while all other applicable rates will be those in effect at the time of the delivery of the refuse to any of the three Authority facilities.