CORNWALL, Ontario – Cornwall City Council voted to award the new waste management contract to Environmental 360 Solutions (E360S), which would end their working relationship with HGC, which has managed waste in Cornwall for nearly thirty years.
The main reasons Councillors cited for switching to E360S was a saving of over $500,000 over seven years and an increase in the amount of waste diverted away from the landfill from 30 percent to 60 percent.
“I’m committed to supporting the recommendations, both parts of them. At the end of the day we have to opt for the proposal that brings the greatest value to our residence,” said Councillor Elaine MacDonald. “I don’t mention value just in the financial return. I understand that in the terms of a seven year contract it would be $1 million less. We would be making a breakthrough in our diversion rate, which has been stalled.”
Council received a legal opinion from their lawyer earlier in their in-camera meeting about risks to the City if they rejected the contract as it was formulated by city amdinistration.
“We’ve gotten a legal opinion so I think it’s important that people know that,” said Councillor Maurice Dupelle. “Once we have an RFP (Request for Proposal) our hands are tied as a council.”
One result of Council’s choice is that the jobs of 25 unionized employees of HGC are now in question.
HGC owner Herb Lambacher said that he would likely have to layoff some of his employees.
Lambacher also felt that Council did not give his company fair consideration.
“I’m not sure that councillors have been given all the facts,” Lambacher said. “I think our pricing is significantly less. It is actually costing the City more money.”
He also criticized Council’s focus on the diversion rate from the landfill.
“The only way to get a 60 percent diversion rate is through organic recycling and that isn’t part of this (the contract) at all,” he said.
Lambacher explained that the reason the diversion rate looks stangant is because people are putting less paper and glass in their bins.
Keith Sandford, a Representative from the Canadian Union of Public Employees (CUPE), of which the HGC employees are members, said that he was disappointed Council did not take steps to protect the employees.
“They say they are embracing the change, but to me that says these employees are out of a job,” he said. “Council should have put in the tender that this as a unionized environment.”
E360S is not a unionized company, but say that they do plan to hire 36 employees with preferance to those with experience.
The contract was awarded to E360S for $24 million. In Administrations report to Council, HGC’s offer was $100,000 less on paper.
The contract was awarded based on administration’s “Option 2” for waste management, which called for ending the pick-up of bulky waste items from the curbside, a six bag limit per home and a cart based collection system for multi-residential units.
The new contract will come into effect April 1.
“We will be releasing a press release later on behind the rationale and reasons for our decision.,” said Mayor Bernadette Clement. “I can tell you that our main concern really was around the employees. We are moving forward now in a direction that we hope improves our diversion rate significantly.”
All councillors voted in favour of awarding the new contract to E360S except Eric Bergeron.
