Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Engineering Services

SUBJECT:

Solid Waste Utility Fees - 2002 and Re-organization of Solid Waste and Recycling Bylaw

 

RECOMMENDATION

D. THAT the temporary full-time Foreman II position created to manage the Yard Waste Collection program be made regular full time.

E. THAT tipping fees for demolition materials accepted at the Vancouver Landfill for road and infrastructure construction be set at $350 for each tandem axle trailer and $425 for each tridem axle trailer

F. THAT the General Manager of Engineering Services enter into an agreement with Canada Safeway to sell City garbage stickers in all Canada Safeway stores for a fee of 3% of the sticker price and to use the Safeway Food and Drug logo to increase awareness of this service.

COMMENTS

The General Manager of Engineering Services recommends adoption of A through H.

POLICY

On May 3, 1994 Council agreed to support the Greater Vancouver Solid Waste Management Plan, which includes the need for recycling and yard waste programs, as well as a user pay principle for solid waste programs.

On October 7, 1997, Council approved the implementation of the Solid Waste Utility effective January 1, 1998.

On December 16, 1999, Council approved the February 2000 implementation of a biweekly yard trimmings collection program.

On December 14, 2000, Council approved negotiations between Engineering Services and private retailers to have the City's garbage stickers available for purchase at retail outlets.

On October 18, 2001, Council approved changes to the allocation and fee structure of garbage collection services to residential properties in Vancouver

SUMMARY

The garbage collection budget for 2002, at $8,130,000, is 4.4% less than in 2001. The reduction is due primarily to a reduction in the number of collection crews in response to reduced tonnage of garbage collected. In order to recover collection costs, the recommended garbage collection fees for 2002 are $27 per property plus $31 per can of annual service.

Engineering Services has reached a tentative agreement with Canada Safeway to sell City garbage stickers in all Safeway Stores in Vancouver for a commission of 3%.

The recycling collection budget for 2002, at $4,180,000 is 3.2% higher than in 2001. While equipment costs are lower, the increase is primarily driven by reduced revenues from the sale of recyclable materials and an increase in the number of dwelling units serviced. It is recommended that the 2002 residential recycling fees be set at $16 per stop and $12 per dwelling unit.

The yard trimmings collection budget for 2002, at $2,610,000 is 10% higher than in 2001.
The quantity of yard trimmings collected reached 10,500 tonnes in 2001 (up from 8,000 tonnes in 2000). Given the success of the program it is anticipated that recovery in 2002 will continue to rise, which results in the higher collection and composting budget. It is recommended that the 2002 yard trimmings collection fee be set at $30 per property serviced.

The monthly variation in the amount of yard trimmings collected creates significant challenges for managing the yard waste collection program. The number of crews on the road can vary from three in February to over a dozen in the peak months of May, June and November. Attempting to add this workload to the existing garbage or recycling management duties is inefficient and unworkable. Therefore it is recommended that the temporary yard trimmings collection Foreman position be made regular full time.

It is recommended that the following fees be applied for demolition material accepted at the Vancouver landfill for construction of roads and other infrastructure:

PURPOSE

The purpose of this report is to set the Solid Waste Utility Fees for 2002.

BACKGROUND

How the City delivers and funds solid waste services has changed significantly in the last four years. Since formation of the utility in 1998, the City has implemented apartment recycling and yard trimmings collection programs. In addition, funding for these programs has moved progressively to user pay consistent with the objectives of the Solid Waste Management Plan. Residential garbage collection has been reduced from about 76,000 tonnes per year to just under 60,000 tonnes per year in the same four year period.

DISCUSSION

Garbage Collection

The implementation and ongoing management of our waste reduction programs has resulted in a continued drop in the amount of residential garbage collected by the City. As a result, we have managed to keep garbage fees below 1998 levels in spite of rising fuel costs, disposal costs, and general inflation.

Notable changes in the proposed garbage collections budget include:

· $148,000 net staff savings due to a two crew (10%) reduction
· $166,000 reduction in equipment costs due to fleet reduction
· $26,000 savings in disposal costs due to lower garbage volumes
· A $15,000 increase in property labelling and one time $50,000 billing verification cost with the shift to refuse allocation based on the number of dwelling units
· $70,000 additional funding for enhanced occupational Health and Safety programs

The net result is a garbage fee reduction of $6 for a typical single family dwelling (from $95 to $89).

This year's lower garbage weights and resulting fee reduction is largely due to the implementation of the yard trimmings collection program. Our ability to achieve further productivity savings in the future is limited without changing the existing waste stream. However we will continue to evaluate our programs for ways to improve efficiency and effectiveness.

The current minimum allocation for garbage service is two cans. It is our intention to conduct a set-out survey in 2002 to ensure that our minimum allocation, as well as per dwelling unit allocation for larger properties, remains appropriate and equitable. The results of the survey, and recommended changes (if any), will be reported to Council late in 2002 with the 2003 fees.

In December 2000 Council authorized staff to arrange for the sale of garbage stickers at local retail outlets to allow for more convenient purchase. It is recommended that the City enter into an agreement with Canada Safeway to sell garbage stickers for a 3% commission (about 5 cents per sticker) at all 14 Safeway stores in Vancouver. This will have a minimal cost impact (up to $1,500 per year) or may even save the utility as Parks charges 10% commission for sticker sales at the Community Centres.

Safeway has not asked for exclusive rights of sale as part of the agreement, therefore staff will try to set up similar agreements with IGA and Real Canadian Superstores. These two chains could add an additional five convenient outlets for garbage sticker sales.

Recycling Collection

A reduction in North American economic activity this year has reduced the quantity of newsprint recovered (the most valuable recyclable) by over 20% . In addition the market for recycled newsprint, and thus its price, has dropped considerably. These two factors have resulted in reduced revenues from recyclable materials over recent years. We recognize that commodity prices for recyclable materials fluctuate considerably. Our revenue budget is therefore based on a five year price average in order to provide stability to our fees. The 2002 revenue budget is $900,000 (2001 budget: $1,200,000).

The proposed recycling budget includes $20,000 for field surveys to ensure that our program is operating effectively and efficiently and to obtain better information on our progress at meeting the recycling needs of our customers.

Equipment costs for the recycling fleet are lower than in the past. This is more than offset by an increase in the budgeted number of dwelling units serviced and a reduction in projected revenues from recyclables. It is recommended that the 2002 residential recycling fees be set at $16 per stop and $12 per dwelling unit to recover costs.

Table 1: Recycling Fees for various residential properties

Budget Year:

Recycling Fee:

Single Family Dwelling

6 Unit Apts.

50 Unit Apts.

2001

2002

2001

2002

2001

2002

$26

$28

$91

$88

$663

$616

The recycling fees are set to most accurately allocate costs between blue box and apartment recycling users. We are providing service to the apartment customers using one less crew than budgeted for in 2001. As a result, apartment recycling users are responsible for a smaller portion of the overall program budget than last year. This fact, coupled with an increase in the number of dwelling units sharing the costs, results in lower fees for multi-family properties as shown in Table 1. Single family properties see a small net increase of $2 in their recycling fees over last year.

Yard Trimmings Collection

The collection of yard trimmings has had a significant impact in diverting waste from disposal. The compost produced is an excellent product used by everyone from individual home owners to the City Board of Parks and Recreation. Revenues from compost sales are marginal. Compost that is not sold is used beneficially by neighbouring farmers or in research projects.

Initial disruptions of introducing the yard trimmings collection service have been largely resolved this year. The demand for yard waste collection continues to climb.

Tonnes collected in 2000: 8,000
Anticipated tonnes in 2001: 10,500 (Expected 9,000)

The monthly variation in the amount of yard trimmings collected creates significant challenges for managing the yard waste collection program. The number of crews on the road can vary from three in February to over a dozen in the peak months of May, June and November. Attempting to add this workload to the existing garbage or recycling management duties is inefficient and unworkable. Therefore it is recommended that the temporary yard trimmings collection Foreman position be made permanent.

Approximately 20% of the items set out from January through September used the "yard can". These users saved over $50,000 by not purchasing clear plastic bags and eliminated nine tonnes of plastic from being landfilled. We will continue to promote the use of yard cans as the most economic and environmentally friendly way to set out yard trimmings.

The proposed yard trimmings budget includes $20,000 for field surveys to ensure that we are providing the most efficient and effective service to meet the needs of our residents.

There is a net increase in budget for yard trimmings collection, reflecting the success of the program. This year we will collect over 15% more than we anticipated at this time last year. We anticipate that participation, and recovery will be even greater in 2002 than in 2001. The net result is that the 2002 budget is approximately 10% higher than 2001. It is recommended that the 2002 yard trimmings collection fee be set at $30. This is $2 higher than in 2001.

Landfill Tipping Fees for Demolition Materials

Woodwaste demolition materials are accepted at the Vancouver Landfill for construction ofroads and other infrastructure. Demolition materials meeting the City's specifications are accepted at a preferential rate compared to garbage disposal fees. Those rates have
historically been set to allow flexibility in meeting demand for supply of the material for construction projects. Rates for demolition material are based on volume rather than weight to be consistent with the rest of the industry. The following rates are proposed for demolition material meeting the City's specifications:

Replacement of Bylaw

Staff have found it difficult to reflect recently approved changes in solid waste programs in Bylaw 7832, the Solid Waste and Recycling Bylaw. It is recommended that a new re-organized bylaw be adopted to improve clarity and simplify the implementation of program changes.

FINANCIAL IMPLICATIONS

Table 2: Comparison of the 2001 budget versus the 2002 proposed budget for all categories of properties

Service

2001 Budget

2002 Budget

% Change

Garbage Collection

$ 8,500,000

$8,130,000

-4.4

Recycling Collection (net)

$ 4,050,000

$4,180,000

+3.2

Yard Trimmings Collection

$ 2,380,000

$2,610,000

+9.7

TOTAL

$14,930,000

$14,950,000

+0.1

Table 3: Comparison of the proposed fees for a single family property.

 

Single Family Home

    
 

2001

2002

        

Garbage

$95

$89

        

Recycling

$26

$28

        

Yard Trimmings

$28

$30

        

TOTAL

$149

$147

        

The average single family home will see a $2 reduction in their overall Solid Waste Utility Fee.

CONCLUSIONS

Based on the forecasted 2002 costs, staff recommend that the 2002 fees be set at:

$ 27 per property and $31 per can for garbage collection and;
$ 16 per set-out location and $12 per dwelling unit for recycling collection and;
$ 30 per property for yard trimmings collection.

It is recommended that tipping fees for required demolition materials accepted at the Vancouver Landfill in 2002 be set at:

Appendix I

Rates to be changed in Schedule "B" (appendix to Solid Waste and Recycling Bylaw No. 7832)

 

2001

2002

Garbage

$95

$27 per property
$31 per can allocated

Recycling
Stop Charge
Fee per dwelling unit

$13
$13

$16
$12

Yard Trimmings

$28

$30

Recycling Carryout fees to remain the same as 2001:
for distances greater than 50m but less than 100 m: $1.45 per cart
for distances of 100m or greater but less than 150m: $3.45 per cart
for distances of 150m or greater: $6.00 per cart

Garbage sticker fees to remain the same as 2001 at $1.50 per sticker

Appendix II

Draft Replacement Solid Waste and Recycling Bylaw

(not available electronically - on file in the City Clerk's Office)

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