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Compost contract costs more than expected

The City of Burnaby is increasing its contract with Fraser Soil and Fiber Ltd. to process residents' compostable materials to $5.74 million. That is an increase of $1.

The City of Burnaby is increasing its contract with Fraser Soil and Fiber Ltd. to process residents' compostable materials to $5.74 million.

That is an increase of $1.57 million more than the original contracted amount for the five-year period from September 2007 to August 2012.

Council approved the increase at its April 16 meeting, due to the city exceeding the current contracted limits on compostable materials a few months before the contract was due to end.

"It's one of the few extensions of a contract that is good news," Mayor Derek Corrigan said, pointing out that it means residents are exceeding the city's expectations when it comes to composting food scraps and yard waste.

Council also approved an increase for the city's contract with Mundie's Towing.

Costs have increased since the contract was awarded in 2008, according to a report from the city's finance committee, due to higher-than-expected use of towing and higher-than-estimated ICBC rate increases since then.

The contract, which runs until March 2013, was initially for $196,000. The city has agreed to increase that amount to $317,760 for towing and vehicle storage.

Burnaby receives $180,000 annually from Mundie's Towing from its towed vehicle charges, which will continue until the contract expires.