BANFF – The Town of Banff is borrowing $754,000 to buy equipment to extend its contract with Parks Canada to collect garbage and recycling in Lake Louise.
Last month, council passed a borrowing bylaw in order to pay for a new garbage truck, a hoist lift roll-off truck and three roll-off bins.
Councillor Peter Poole asked that the entire list of equipment to be purchased be finalized before council voted to approve it, including better cost estimates.
“I would like to see this bylaw tidied up and the associated report, so that we have clear guidance for the administrative team moving forward,” Poole said.
Kelly Gibson, director of corporate services, said administration, under the Municipal Government Act, couldn’t start a project until the borrowing bylaw is in place.
“We will still go through the due diligence of pricing and get competitive bids for the right equipment,” he said.
“This (bylaw) does not obligate us in any way, shape or form to make a purchase. This is just saying we are allowed to borrow for up to this amount.”
Since 2016, the Town of Banff has been collecting garbage and recycling, but the scope of the work increased from 6,425 bin tips per year to 13,895 per year as well as cardboard recycling and other recyclable materials.
The service was provided under a short-term agreement, but now the Town has entered into a five-year contract to extend the service to participating outlying hotels from Castle Junction to the B.C. border.
According to a staff report to council, the sole-sourced contract from Parks Canada could also result in additional revenue of $61,948.
In addition to the $750,000, $300,000 is needed from the operating budget to pay wages and benefits for additional staff, materials, supplies and contracted services needed to run the service.
By the end of this year, the Town of Banff will be at 28 per cent of its total debt limit capacity. The total limit for 2018 is $65.7 million. The Town’s current debt for this year is $13.1 million.
