Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services & Budgets

FROM:

General Manager of Engineering Services

SUBJECT:

Solid Waste Division: Reorganization and Improvements

 

RECOMMENDATIONS

GENERAL MANAGER OF ENGINEERING'S COMMENTS

There have been two recent pressures for change in the management of our transfer station and landfill operations. One is a higher environmental standard brought about by the conditions in our recently approved Provincial Operating Certificate. The second relates to the increased expectations for customer service particularly related to operating hours and fairness in our user charges. This report addresses these issues at no increase in budget due to offsetting revenue increases and cost savings. It is recommended that A to G be approved.

POLICY

On May 3, 1994, Council agreed to support the Regional Solid Waste Management Plan, which includes various waste reduction and recycling options including user pay and yard trimmings composting.

Any new positions must be justified through equivalent savings or increased revenues.

PURPOSE

The purpose of this report is to update Council on the reorganization of the Solid Waste Division. The report proposes a series of improvements to the operation of the Vancouver South Transfer Station (VSTS) and the Vancouver Landfill including changes in operating hours, changes in the rate structure, capital improvements and staffing changes. These changes will improve the level of service provided to users of the Landfill and VSTS.

SUMMARY

This report updates Council on the reorganization of the Solid Waste Division. The reorganization is required to maximize the efficiency of the City's solid waste management system and improve service to customers of the system. The reporting responsibility for VSTS will move from the Sanitation Branch to the Landfill Operations Branch.

In tandem with the reorganization, the report proposes a series of improvements at VSTS and the Landfill. The improvements include:
· Increasing the hours of operation at VSTS and the Landfill
· Changing from a flat rate system for small vehicles to a weight based system
· Adding an additional Superintendent I to accommodate the extended operating hours and to cover existing supervision gaps
· Undertaking an infrastructure study at VSTS to increase the facilities for waste reduction and recycling and improve the efficiency of the system
· Adding an additional weighscale at VSTS and automating the weighscales at both VSTS and the Landfill to improve service and accommodate the additional vehicle processing caused by moving from a flat rate system for small vehicles to a weight based system

To accommodate existing and future workload, it is proposed that two temporary positions in the Landfill Operations Branch (a Clerk III and a Civil Engineer I) be made permanent. The Civil Engineer 1 position is included in the recommendations in this report. The Clerk III position is included in a report being prepared by Human Resources.

The initial cost of the proposed improvements is estimated at $335,000 and the ongoing costs are estimated at $65,000 per year. Revenues associated with increased commercial traffic are anticipated to equal at least $200,000 per year. Small vehicle revenues are expected to increase approximately $350,000 per year as a result of changing from a flatrate system to a weight based system.

BACKGROUND

The Solid Waste Division is responsible for managing collection, transfer and disposal of municipal solid waste along with waste reduction and recycling initiatives for the City of Vancouver. The Division consists of the Solid Waste Management Branch, the Sanitation Branch and the Landfill Operations Branch. The Solid Waste Management Branch is responsible for design and administration of waste reduction and recycling systems as well as planning and technical expertise for the solid waste collection and transfer systems. The Sanitation Branch is responsible for collection of garbage and recyclables, street cleaning and the operation of the VSTS. The Landfill Operations Branch was set-up in 1997 and is responsible for the day-to-day operations and overall management of the Vancouver Landfill.

Over the last number of years there have been significant changes in the delivery of solid waste management services particularly with the addition of waste reduction and recycling systems, changes in the business model for the City's solid waste disposal systems and changes in health and safety requirements for all components of the Division. These changes necessitated a review of the organization of the Solid Waste Division.

DISCUSSION

The main thrust of the divisional review focused on the management of VSTS. VSTS was opened in June 1989 and was built as part of Vancouver's commitments under the 1985 Regional Solid Waste Management Plan. Garbage from Vancouver and parts of Richmond is dropped off at VSTS. The garbage is transferred into large highway tractor-trailers for delivery to the Vancouver Landfill. VSTS was built to provide a convenient drop-off location for Vancouver residents and commercial haulers as well as to reduce traffic flow along the roadways in Delta leading to and within the Vancouver Landfill. For every 10 vehicles that drop garbage off at VSTS, one tractor-trailer drives out to the Landfill.

There are a number of potential synergies between the operation of VSTS and the Vancouver Landfill. Personnel, equipment, customer service, financial management, infrastructure and occupational health and safety issues all overlap. The General Manager of Engineering Services has therefore decided to move the responsibility for the operation of VSTS into the Landfill Operations Branch creating an expanded business unit.

Both CUPE 15 and CUPE 1004 are aware of the proposed changes in reporting responsibility for VSTS and have been provided a copy of this report.

In conjunction with the movement of reporting responsibilities for the VSTS and to facilitate this move, a series of improvements to the operation of both the Landfill and VSTS are proposed.

Operating Hours

The current operating hours for the Landfill and VSTS are as follows:

 

Vancouver Landfill

VSTS

Monday-Friday

7:30 a.m. to 6:00 p.m.

6:30 a.m. to 5:00 p.m.

Saturday-Sunday

9:00 a.m. to 6:00 p.m.

9:00 a.m. to 5:00 p.m.

     

In the last few years, there has been a steady decrease in the amount of solid waste being delivered to Vancouver's disposal facilities. Some of the reduction can be attributed to increased waste reduction and recycling, but some waste that was previously being delivered to Vancouver facilities is being hauled to GVRD facilities (North Shore Transfer Station, Coquitlam Resource Recovery Plant and the Burnaby Incinerator). Reductions in waste tonnage increase the cost per tonne of operating Vancouver's facilities because there are high fixed costs associated with operating the facilities. In 2000 alone, a total of 15,000 tonnes per year less material was delivered to VSTS than in 1999 (beyond the impact of the work stoppage). Fifteen thousand tonnes per year of garbage generates approximately $1,000,000 in revenue.

In a survey of users of VSTS and the Landfill this spring, 66% of respondents felt that the hours of operation at VSTS do not meet their business needs. One of the reasons that waste deliveries into Vancouver facilities have diminished is that other facilities have longer operating hours than Vancouver facilities. Since January of this year, VSTS has been opening at 5:30 a.m. on a trial basis. Total commercial waste tonnage into VSTS for the period January 1 to April 30, 2001 has increased marginally (1.5% increase over 2000). GVRD facilities (North Shore Transfer Station, Coquitlam Resource Recovery Plant and the Burnaby Incinerator) experienced a 1.5% drop in waste flow in the first quarter of 2001. The GVRD facilities have previously experienced increasing waste quantities as Vancouver has had decreasing waste quantities.

Based on the results of the hours of operation survey and the needs of our customers, we propose extending the hours of operation for Vancouver's waste disposal facilities as follows:

 

Vancouver Landfill

VSTS

Monday-Friday

7:30 a.m. to 6:00 p.m.

5:30 a.m. to 7:00 p.m.

Saturday

8:00 a.m. to 6:00 p.m.

8:00 a.m. to 6:00 p.m.

Sunday

9:00 a.m. to 6:00 p.m.

8:00 a.m. to 6:00 p.m.

The only proposed change at the Vancouver Landfill is opening an hour earlier on Saturdays. Fifty percent of Landfill users suggested extended hours, but based on traffic flows and the hours of operation survey results, extending hours of operation at the Landfill would not increase the amount of garbage delivered to the facility.

To provide supervision during the proposed extended operating hours and to cover existing supervision gaps, a new supervisory position is proposed. The details of the position are discussed in the Personnel Implications section of the report. Additional weighscale attendant time will also be required. The total cost of the additional supervisor and the additional weighscale attendant time is estimated at $85,000 per year. The extension in operating hours and additional supervisory position will result in improved customer service and better supervision of City staff.

Following reorganization, supervisors on afternoon shift will be responsible for supervising both the Landfill and VSTS. An additional 4X4 pick-up truck is therefore required to allow the supervisors to effectively supervise both facilities. The estimated cost of an additional 4X4 pick-up truck is $35,000.

The total expected additional revenue resulting from the extension of operating hours at VSTS is expected to be well in excess of $100,000 per year. The 1.5% increase in VSTS commercial wastes experienced during the first 4 months of the trial 5:30 a.m. opening would equate to $100,000 per year. Therefore, an overall estimate of a $100,000 per year increase in revenue is conservative.

Rate System

Small vehicle rates for the disposal of garbage and yard trimmings are currently based on vehicle type for loads less than 500 kg. The system was put in place to speed up the processing of small vehicles and provide a discount for residential users of the City's solid waste management system. There are a number of problems with the current rate system including:

· Rates jump for loads exceeding the 500 kg threshold. Therefore, haulers are encouraged to underload their vehicles, increasing traffic at the facilities. The disposal fee for 1400 kg of garbage delivered in one load would be $91 compared to $45 if delivered in three loads of 466 kg each.
· The current rate system does not allow the City to fully recover the cost of managing small loads of garbage. The cost of managing a 450 kg load is at least $23.40 compared to revenues of $15.
· The same amount of garbage delivered in different vehicles, costs different amounts. 200 kg of waste delivered in a pick-up truck costs $15, but in a car would only cost $6 because of the lower flat rate for cars.

· Haulers with small loads are not encouraged to reduce or recycle because as long as the load is under 500 kg the cost is the same.

In 2000, complaints regarding the current rate system accounted for 60% of all of the complaints received at the Landfill.

For the above reasons, it is proposed that weight-based charges be implemented for both yard trimmings and garbage for all loads. Weight-based charges are levied at GVRD disposal facilities. Under the proposed system, small loads would still be received at a discount to encourage residents to bring their waste to VSTS or the Landfill. There would continue to be a small jump in price at rate change transitions points, but the increase would be much smaller than under the current system where rates jump at 500 kg.

The proposed rate structure is provided in Table 1.

Table 1: Proposed Garbage and Recycling Fees

Weight Range

Garbage Proposed Fee

Yard Trimmings

0-50 kg

$6 flat fee

Free

51-120 kg

$6 flat fee

$3

121-500 kg

$50/tonne ($6-$25/load)

$35/tonne ($4-$17.50/load)

501-700 kg

$55/tonne ($27.50-$38.50/load)

$40/tonne ($20-$28/load)

701-900 kg

$60/tonne ($42-$54/load)

$45/tonne ($31.50-$40.50/load)

901 and up

$65/tonne ($58.50/load and up)
(Regional Rate)

$50/tonne ($45/load and up)

     

If there is no change in customer activity, the proposed fee changes are estimated to generate an additional $350,000 per year in revenue on small vehicle revenues of approximately $2,200,000 (15% increase). Based on the proposed system, small vehicle charges for garbage disposal will approximately cover the cost of managing the material, but there will continue to be a subsidy of approximately $500,000 per year for composting yard trimmings.

Yard trimmings disposal fees are set lower than garbage disposal fees to encourage recycling. On a cost per tonne basis, yard trimmings composting is one of the least expensive recycling alternatives. The total cost per tonne for composting including transfer is approximately $45 per tonne. In 2000, transfer and disposal of garbage cost approximately $52 per tonne.

The net cost of composting and any losses on small vehicle loads of garbage is funded from the Solid Waste Capital Reserve (SWCR).

Infrastructure Improvements

VSTS has been in operation 12 years without substantial infrastructure changes. In that time, although waste handling requirements have reduced, yard trimmings have been separated from the garbage and various other recycling initiatives have been implemented. In addition, health and safety requirements have changed with respect to requirements for fall protection. Table 2 provides a list of proposed projects for infrastructure management at VSTS and the Landfill.

Table 2: VSTS and Vancouver Landfill Proposed Infrastructure projects

Item

Cost

VSTS Infrastructure Study

$125,000

Upgrade traffic management systems including installation of additional weighscale

$125,000

Automate the scales at both VSTS and Vancouver Landfill

$50,000

Total

$300,000

As indicated in the table, the key components of the improvements include initiating a study to determine the overall capital requirements for VSTS, installing an additional scale at VSTS and automating both scale systems.

The proposed infrastructure study would review the following:
· Recycling Systems at VSTS

· Reuse Centre

· Yard Trimmings Processing

· Overall Waste Handling Systems

· Transfer Trucks Maintenance

Implementing capital improvements is expected to cost several million dollars. Once the infrastructure study is complete, the General Manager of Engineering Services will report back to City Council with recommendations on how to proceed.

Changing from a flat rate system for small vehicles to a weight based system will result in the requirement to weigh all small vehicles in and out rather than processing them on the inbound scale. As a result the total number of transactions each day will increase. To handle the additional vehicle traffic and improve processing of commercial traffic, it is proposed that an additional automated scale for commercial and City of Vancouver traffic be installed. The scales at the Landfill would also be partially automated.

One benefit of improving traffic management at VSTS will be reduced line-ups along Kent Avenue in Vancouver. Line-ups on Kent Avenue are a significant safety concern, which is currently managed with flaggers as required.

Adding an automated scale is expected to attract additional traffic into VSTS through improved service and reduced queue times. Automating the scales for commercial traffic will allow further extension of operating hours (increasing waste flows) at minimal cost. Automating the scales is also anticipated to reduce day-to-day operating costs for the weighscale system because we may be able to move from two weighscale attendants to one. There are currently two weighscale attendants during busy periods at both facilities.

The infrastructure review and traffic management improvements (new scale and automated scale) are proposed to occur concurrently as traffic management improvements need to be considered in conjunction with future infrastructure improvements. Any short term improvements must be consistent with long term capitalplanning.

The proposed improvements would be funded through the Landfill operating budget and shared among Landfill users. Improving traffic management and further extending the operating hours at VSTS is expected to generate in excess of $100,000 per year in additional waste disposal revenues. Reducing the amount of time two weighmasters are required at the scales is expected to save approximately $20,000 per year.

PERSONNEL IMPLICATIONS

A series of staffing changes are proposed in the Landfill Operations Branch. A temporary Clerk III and a temporary Civil Engineer's position were created in 1999 to help with the branch workload. With the addition of VSTS to the Branch, the ongoing workload requires that these two positions be made permanent. A recommendation to make the Civil Engineer 1 position permanent is included in this report. The disposition of the Clerk III position is included in a report being prepared by the General Manager of Human Resources.

The weighscale computer system is currently managed by a Clerk V and a Superintendent II in the Sanitation Branch. With the reorganization, the responsibility for managing the weighscale system will be moved to the Landfill Operations Branch. In the short term, the primary resource for managing the weighscale system as well as coordinating automating the weigh scales and setting up new information system management systems is proposed to be a Systems Analyst. The Systems Analyst would be hired temporarily with funding from the proposed budget for automating the scales and upgrading traffic management systems as well as existing funding in the Landfill and VSTS Operating Budgets. In the longer term, the Clerk III in the Landfill Operations Branch will take on administrative functions of the weighscale system. At that point it is anticipated that the Clerk III position will be reclassified consistent with the duties.

Under the current supervisory model for VSTS and the Landfill, there is a Superintendent I at the Landfill, two Foremen at VSTS, and a CUPE 1004 staff member that acts as a Superintendent I on weekends at the Landfill. The existing system provides no supervisory coverage Thursday and Friday afternoons. In addition, the extension in operating hours at VSTS necessitates full supervisory coverage each afternoon at VSTS. To meet the supervisory requirements, it is proposed that an additional Superintendent 1 position be created.

FINANCIAL IMPLICATIONS

Table 3 summarizes the proposed changes along with the cost, funding source andanticipated savings or revenue increases for each of the items.

Table 3: Proposed Improvements in Solid Waste Division

Item

Initial Cost

Annual
Cost/
Savings

Revenue

Savings/Revenue
Origin

Hours Changes
Supervision
Weighmaster

$35,000

$65,000
$20,000

$(100,000)

Increased Commercial Traffic

VSTS Infrastructure
- Infrastructure Study
- New Scale
- Automate Scale

$300,000

$(20,000)

$(100,000)

Reduced Weighmasters
Increased Commercial Traffic

Perm Clerk III and CE I

  

$0

  

Existing Funding

Rate Changes

    

$(350,000)

Small vehicle revenue: Credit SWCR

Total

$335,000

$65,000

$(550,000)

  
 

Table 3 shows that commercial waste disposal fees are anticipated to increase by approximately $200,000 per year due to increased traffic. One hundred thousand dollars of the estimated increase is attributable to extending operating hours and $100,000 it attributable to improved service through improved traffic management systems. Extending operating hours will increase operating costs by approximately $65,000 due to increased supervision requirements. Therefore, the net decrease in the general Landfill and VSTS operating budgets is expected to be approximately $135,000 per year (except for 2002 when capital expenditures of $335,000 are required).

Approximately 80% of the Landfill and VSTS operating budget is funded by commercial users, other municipalities and small vehicles disposal fees. The remaining 20% is funded by the Solid Waste Utility. An annual savings of $135,000 per year is therefore anticipated to have an insignificant impact on Solid Waste Utility Fees.

Revenues Due to Rate Changes

Drop-off fees for both yard trimmings and garbage in small vehicles don't currently cover the full cost of managing these materials. Any deficit from these programs is funded from the Solid Waste Capital Reserve. The deficit is currently approximately $850,000 per year, consisting of $650,000 deficit for yard trimmings composting and $200,000 deficit for small vehicle garbage disposal. Table 3 shows that as a result of the proposed changes

in rates for small vehicles garbage disposal and yard trimmings disposal, revenues are anticipated to increase by $350,000 per year, including $200,000 for small vehicle garbage disposal and $150,000 for yard trimmings disposal.

Following the proposed rate changes, small vehicle garbage disposal fees will cover the full cost of managing these wastes, but there will continue to be a $500,000 deficit for yard trimmings management. The $500,000 will continue to be funded from the Solid Waste Capital Reserve. The cost is justified to help meet the City's waste reduction and recycling goals. Composting yard trimmings is an important part of the Regional Solid Waste Management Plan, which Council supports.

Timing of Costs and Increased Revenues

Implementation of the proposed improvements, rate changes and change in operating hours will not begin before the final quarter of 2001. Any impact on the 2001 Landfill and VSTS operating budgets will be minimal. Costs and offsetting revenues will be budgeted in 2002.

* * * * *

cs010802.htm

Comments or questions? You can send us email.
[City Homepage] [Get In Touch]

(c) 1998 City of Vancouver