Background:

In an attempt to reduce costs for taxpayers while maintaining service levels, on March 7, 2016, a report to council provided information regarding a process that could be implemented for contracting out of caretaking services currently being performed by City staff. This process was based on a phased approach that would avoid job losses for any Regular Full Time (RFT) Caretaker. The Council resolution in this matter, CR129/2016, reads:

“That administratio n BE DIRECTED to pursue Option A as contained in the report of the

City Engineer dated February 24, 2016 to outsource caretaking without job loss for any regular full time employees; and,

That administration EXCLUDE the CUPE Local 82 caretakers and to report back at a later date should attrition accelerate and should the outsourcing be recommended; and,

That administration BE AUTHORIZED to notify the CUPE Local 543 Union that administration is exploring the contracting out of caretaking services without job loss for any regular full time employees; and,

That administration BE AUTHORIZED to prepare and issue a Request for Proposal in accordance with the city’s purchasing by -law for the contracting out of caretaking services; and,

That the recommendations of administration on whether and to whom to award the contracts BE REPORTED to City Council for tentative approval prior to entering into the union discussions; and,

That the collective agreement outsourcing steps including notice and provision of information to the respective Union BE FOLLOWED by administration with a confirmatory report to City Council.”

The first phase laid out in Option A was the contracting out of caretaking services at Huron Lodge. Council approved the contracting out of caretaking services at Huron Lodge on January 6, 2017 (CR50/2017), resulting in an annual savings of approximately $605,000. The contracted caretaking services at Huron Lodge began in June 2017 and has proven to be successful.

Discussion:

The agreement with Aramark Canada commenced on June 4, 2017, and ended on June 4, 2020. The annual service fee for the initial three-year contract was $1,199,253.64, inclusive of all labour, supervision, supplies and equipment. The agreement includes the option to renew for two additional terms of one (1) year each, upon the same terms and conditions, except for the service fee, which is subject to mutual agreement for any such renewal.