ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services & Budgets

FROM:

General Manager of Engineering Services

SUBJECT:

Solid Waste Utility Fees and By-law Changes - 2003

 

RECOMMENDATION

COMMENTS

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

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

SUMMARY

Table 1: Comparison of the 2002 solid waste collection expenditure budget versus the 2003 proposed budget for all categories of properties:

Service

2002 Budget

2003 Budget

% Change

Garbage Collection

$ 8,130,000

$8,078,000

-0.6

Recycling Collection (net)

$ 4,180,000

$3,929,000

-6.0

Yard Trimmings Collection

$ 2,610,000

$2,815,000

+7.8

TOTAL

$14,920,000

$14,822,000

-0.7

Table 2: Comparison of the proposed 2003 and 2002 fees for collection programs:

SFD: Single Family Dwelling

Proposed SWU Fees

2002

`02 SFD

2003

`03 SFD

Garbage Collection
Per Stop
Per Can

$27
$31

$89

$26
$31

$88

Recycling Collection
Per Stop
Per Dwelling Unit

$16
$12

$28

$15
$11

$26

Yard Trimming Collection

$30

$30

$32

$32

Total

  

$147

  

$146

 

 

 

 

 

 

 

The average single family homeowner will see a decrease of $1 in their total Solid Waste Utility Fee.

Staff are also recommending that the tipping fees for demolition materials accepted at the Vancouver Landfill for road and infrastructure construction be increased by about 5% to $370 for each tandem axle trailer load and $445 for each tridem axle trailer load.

Staff are recommending that some bylaw changes be made to address several issues.

· That all rowhouses with one collection stop per complex ( about 100 rowhouse complexes) be billed for only one garbage and one yard trimmings fee per complex instead of per dwelling unit.

· That property owners who choose to purchase City garbage collection service receive the first level of service change per year at no charge and be billed a $25 fee for each additional change. This change is required to address administratively expensive cases where owners request frequent level of service changes.

· That all properties have a garbage disposal service acceptable to the City Engineer to assist staff in dealing with abandoned garbage in the City.

· That rental apartments which receive City garbage collection service also receive yard trimmings collection service so that rental apartments will be treated the same as strata and co-op apartments.

· That minor changes be made to the Schedules "C" and "D" list of acceptable garbage and recyclable materials collected by the City.

PURPOSE

The purpose of this report is to set the Solid Waste Utility Fees for 2003 and make housekeeping changes to the Solid Waste By-law.

BACKGROUND

The way the City delivers and funds solid waste services has changed significantly in the last five 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 less than 58,000 tonnes per year in the same period. Most of this decline is attributable to the yard trimmings collection program which is expected to divert about 12,500 tonnes from the landfill in 2002.

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 collection user fees below 1998 levels even though operating costs have risen.

For 2003, lower garbage weights and lower landfilling costs-per-tonne are anticipated to more than offset budgeted inflation in labour costs. The 2003 budget includes a new item ( $12,750 ) for employee coveralls. The 2003 proposed budget is $8,078,000 , which is 0.6% less than the 2002 budget. Therefore, staff recommends that the garbage collection fees for 2003 be reduced by $1 per property to $26 and the fee per can of annual service remain at $31. Our ability to keep the user fees at this level 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.

In 2002, the City entered into an agreement with Canada Safeway to sell garbage stickers at its Vancouver stores. Stickers can still be purchased from City Hall or most City community centres. The arrangement with Safeway has proven to be very successful to date. It is now more convenient for residents to purchase the stickers, and it is less costly to sell them through Safeway than through the Board of Parks. About 40% of the stickers sold in 2002 have been sold through Safeway stores .

Recycling Collection

In 2002, the City constructed a recyclables' receiving depot on East Kent Avenue. The depot is owned by the City but operated by the City's processing and marketing contractor. Previously, the contractor provided their own site. The City developed its own receiving site because contractors found it difficult to provide their own sites on a three-year basis, the usual duration of the City's processing and marketing contract. This difficulty limited the number of bidders for the processing and marketing contract. Engineering staff believed that increasing the number of bidders would result in the City receiving increased revenues for its recyclables. The award of the 2003 - 2005 contract has borne out this belief. Revenues from the sale of the City-collected recyclables are expected to be about $275,000 per year greater than if the City had not developed its own receiving depot. On this basis, the payback period for the City's depot is five years.

In addition to the increase in revenues due to the City-owned depot, prices for recyclables remain at a favourably high level. However, commodity prices for recyclable materials can fluctuate considerably from year to year. Therefore, the revenue budget is based on a five-year price average in order to provide stability to the fees charged to homeowners. Staff have budgeted $1.3 million for recyclables revenue in 2003.

Along with the increase in recycling revenues, the 2003 equipment budget for the recycling trucks is lower than in 2002. These two budget changes more than offset the inflation in labour costs and the increased cost to service additional apartment units. The 2003 proposed budget includes two new items: $10,000 for employee coveralls and $22,000 for a recycling toter truck. The recycling collection budget for 2003 is $3,929,000 which is $251,000 lower than in 2002. Thus, it is recommended that the 2003 residential recycling fees be reduced by $1 per stop to $15 and by $1 per dwelling unit to $11.

Yard Trimmings Collection

The collection of yard trimmings continues to have a significant impact in diverting waste from being landfilled as the following data shows:

Yard Trimmings tonnes collected:

1999 - 4,136
2000 - 8,315
2001 - 11,437
2002 - 12,500 ( projected to year-end )
2003 - 12,500 ( forecast )

The compost produced from the yard trimmings is an excellent product used by everyone from individual home owners to the City Board of Parks and Recreation. Revenues from compost sales are about $50,000 annually. Compost that is not sold is used beneficially by neighbouring farmers or in research projects.

A significant number of residents continue to set out their yard trimmings in cans with the "yard can" label affixed. The yard cans are more economical than plastic bags for both the residents and the City. Also, the use of cans reduces the amount of plastic bags that need to be landfilled. We will continue to promote the use of yard cans as the most economical and environmentally friendly way to set out yard trimmings.

There is a net increase in the budget for yard trimmings collection, reflecting the increased usage by residents of the program, an inflation increase for labour costs, and increased unit costs for composting. The yard trimmings budget also funds the cost of composting the leaves collected from the City's streets. The 2003 proposed budget is $2,815,000 which includes a new item ( $8,000 ) for employee coveralls. It is recommended that the 2003 yard trimmings collection fee be set at $32, an increase of $2 from the 2002 amount .

Ergonomics in Collection Programs

Historically, Sanitation Operations has had one of the highest injury rates in Engineering Services. This is somewhat predictable given the physically demanding and repetitive nature of much of our collection work. We have been working very hard to reduce the injury rate and improve ergonomics within Sanitation Operations. This has included dedicating a foreman to Occupational Health and Safety, as well as conducting an extensive ergonomics audit and implementing or evaluating a number of ergonomic interventions, the more costly of which are described below. The early results are very promising, showing a 38% drop in injury incidents for the first ten months of 2002 over 2001 which will, if maintained, help reduce the insurance premium that the City pays to the WCB.

The first ergonomic intervention relates to collecting apartment recycling carts from underground parkades. Ergonomic assessment found that pulling full carts (which can weigh up to 250 pounds) up ramps is not sustainable. As a result, we have changed our operation and now remove carts from underground parkades by carrying them out on the back of a small pick-up truck. This program reduces the time required to service a building, which partly offsets the cost of the program. The net cost of this intervention to the recycling collection budget is approximately $22,000.

The highest rate of injuries, and greatest ergonomic issues, are in garbage and yard trimmings collection. It is proposed that all of our collections staff be provided with reflective coveralls to allow workers to lift containers closer to their body without fear of soiling their clothes. This should help reduce injuries relating to lifting. In addition, reflective coveralls increase worker visibility and provide a uniform, more professional looking workforce. The annual cost of adding coveralls to each of the collection programs is as follows:

Garbage Collection:

$12,750

Recycling Collection:

$10,000

Yard Trimmings Collection:

$8,000

These costs are included in the 2003 budget . As staff transfer from one collection program to the other, depending on need, it is necessary to have all collection staff have coveralls.

The most significant possible ergonomic intervention that can be made is to reduce manual collection and rely more on mechanical equipment. The Solid Waste division is evaluating mechanical collections systems for its three collection streams. The most visible example of this is the Automated Yard Trimmings Pilot program currently being conducted at 2600 homes throughout the city. Staff have advised the WCB that we will report to Council on the benefits and costs of automating our collection programs in September 2003.

Landfill Tipping Fees for Demolition Materials

Woodwaste demolition materials are accepted at the Vancouver Landfill for construction of roads and other infrastructure. Demolition materials meeting the City's specifications for landfill construction are accepted at a preferential rate compared to garbage disposal fees. Those rates have historically been set at a level to allow flexibility in meeting demand for supply of the material for landfill construction. A review of the fees charged at the private demolition sites indicates that the City can increase its fees by about 5% and still receive sufficient material for landfill construction work. The recommended fees are $370 for each tandem axle trailer and $445 for each tridem axle trailer.

By-Law Changes

By-law changes are required to address several issues. First, under the current Solid Waste By-law, there are about 100 rowhouse complexes - as defined by the BC Assessment Authority ( BCAA ) - that are not dwelling units in a horizontal row. These "rowhouses" do not have individual garbage collection stops for each dwelling unit; they have only one collection stop per complex. However, because BCAA has classified them as rowhouses, they are currently billed the standard "rowhouse" charge of one garbage and one yard trimmings collection stop fee for each dwelling unit per complex. To rectify this anomaly, staff recommend that rowhouses which have only one garbage stop and one yard collection stop per complex be billed for only one garbage stop fee and one yard collection fee per complex.

The second recommended by-law change addresses the issue of a few property owners who frequently change the weekly amount of optional garbage collection service they purchase from the City. Each time a change in service level is requested, the City has to produce and affix a new decal at the property. The decal indicates to the collection crew the level of service that the owner has purchased. To eliminate the excessive number of decal changes per year by a few property owners, staff recommends that property owners be allowed one free decal change per year, and all additional changes be charged a fee of $25 to recover administrative costs.

The third recommended by-law change addresses the issue of properties that do not have any garbage collection service. From time to time, staff who deal with abandoned garbage and uncollected garbage on properties discover that the source of the problem is a property that does not have garbage collection service. Although the City requires that every residential property have garbage collection service, it does not require the same of non-residential properties. Accordingly, staff recommend that the Solid Waste By-law be amended so that every residential and non-residential property be required to have a minimum twice per month garbage disposal program using either City collection, private contractor or direct hauling to the Vancouver Transfer Station. This by-law amendment will assist the City in addressing the issue of abandoned and uncollected garbage.

The fourth by-law change is recommended so that rental apartments which receive City garbage collection service also receive yard trimmings service. This change will result in rental apartments being treated the same as strata and co-op apartments that receive city garbage collection service.

The fifth by-law change is to add two plastic materials to the list of acceptable recyclable materials collected by the City ; and to delete some minor items from the list of acceptable garbage materials collected by the City. A draft of all the bylaw revisions is shown in Appendix A.

FINANCIAL IMPLICATIONS

Table 1: Comparison of the 2002 expenditure budget versus the 2003 proposed budget for all categories of properties:

Service

2002 Budget

2003 Budget

% Change

Garbage Collection

$ 8,130,000

$8,078,000

-0.6

Recycling Collection (net)

$ 4,180,000

$3,929,000

-6.0

Yard Trimmings Collection

$ 2,610,000

$2,815,000

+7.8

TOTAL

$14,920,000

$14,822,000

-0.7

Table 2: Comparison of the proposed fees for a single family property:

 

Single Family Home

    
 

2002

2003

        

Garbage

$89

$88

        

Recycling

$28

$26

        

Yard Trimmings

$30

$32

        

Total

$147

$146

        

 

 

 

 

 

 

The average single family homeowner will see a decrease of $1 in their total Solid Waste Utility Fee.

CONCLUSIONS

Based on the forecasted 2003 costs, staff recommend that the 2003 Solid Waste Utility fees be set at:

$ 26 per property and $31 per can for garbage collection and;
$ 15 per set-out location and $11 per dwelling unit for recycling collection and;
$ 32 per property for yard trimmings collection.

And that the demolition material tipping fees and the recommended by-law changes discussed in this report be adopted.

- - - - -

Appendix A

Proposed Changes to Solid Waste and Recycling Bylaw (new text in italics)

Add new section:

"Requirement for Garbage Service

(1) using, if available, the City's solid waste disposal services;

(2) contracting with a private contractor who operates a solid waste disposal service;
or

(3) removing, or arranging for the removal of, such solid waste to a City-owned transfer station.

Amend 6.2 to read:

"Houses, strata duplexes, rowhouses, rental apartments and apartments receiving City garbage can collection service under section 4.2 will receive 4 cans of yard waste collection..."

Schedule A - Drop Off Rates for Landfill and Transfer Station

Schedule B - Rates for Collection Services.
Replace Section I, B (Garbage Rates) with:

"For those properties which receive garbage collection service under Part IV - Garbage Service, per calendar year, payable concurrently with each year's real property taxes ........................... $26.00

except for rowhouses which have one or more common collection points, at locations agreed to by the City Engineer, for each collection point where service is provided.................................$26.00

plus for each can allocated or purchased, per calendar year, payable concurrently with each year's real property taxes . . ...........................$31.00"

Schedule B D. Purchase of Additional Cans

Add "Each property owner will be allowed one change per calendar year in the level of service under Sections 4.2 and 4.4 at no charge. A fee of $25 will be charged for each additional change."

Section II, A (Basic Recycling Rates):

Section III (Yard Waste Collection Service).

Replace with:
"For properties which receive yard waste collection service
under Part VI - Yard Waste Service, for each property ...............$32.00

Except for rowhouses which have one or more common collection points, at locations agreed to by the City Engineer, for each collection point where service is provided.................................$32.00

Schedule C - Recycling Collection Acceptable Materials

Replace item 19 with:

19. All Rigid Plastic Containers Identified by the SPI Code #1 (Polyethylene Terephthalate or PET) or SPI Code #2 (High Density Polyethylene or HDPE), or SPI Code #4 ( Low Density Polyethylene or LDPE ) or SPI Code #5 ( Polypropylene or PP )."

Schedule D - Garbage Collection Prohibited Materials

Delete each of the following items and renumber list accordingly:

7. Automobile bodies
12. Lumber, timber, logs etc., longer than 3.6 metres or larger in cross section than 300 cm 2
13. Solid objects larger in cross section than 3500 cm if longer than 2.5 metres
14. Fabricated objects wider or thicker than 1.2 metres and longer than 2.5 metres

Replace

Item 20. Tires in excess of 4 passenger vehicles per collection period.
with

Item 20. Tires

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