|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
November 19, 2003 | |
Author: |
Helmut Buhr | |
Phone No.: |
873-7994 | |
RTS No.: |
03715 | |
CC File No.: |
3756 | |
Meeting Date: |
December 2, 2003 |
TO: |
Standing Committee on Transportation and Traffic |
FROM: |
General Manager of Engineering Services |
SUBJECT: |
2004 Solid Waste Utility Fees and By-law Changes |
RECOMMENDATION
A.
i) THAT the 2004 annual garbage collection fees be increased by $1 to $32 per garbage receptacle and remain at $27 per stop.
(ii) THAT the 2004 annual recycling fees be reduced by $2 to $9 per dwelling unit and by $3 to $12 per stop.
(iii) THAT the 2004 annual yard waste collection fees be increased by $3 to $35 per stop.
(The recommendations in `A' result in no net change in the total fees for a single family homeowner.)
B. THAT reimbursements of the annual SWU fees be made, in monthly increments, when the period from demolition of an existing residential dwelling to occupancy of a new residential dwelling is longer than one year.
C. THAT Landfill demolition tipping fees be increased from $370 to $390 for each tandem axle trailer and from $445 to $470 for each tridem axle trailer.
D. THAT the following changes be made subject to a review and classification by the General Manager of Human Resources, and funded from the Landfull user Fees.
(i) THAT the temporary full-time Systems Analyst II position be changed to a regular full-time Systems Analyst II position.
(ii) THAT a regular part-time weighmaster position at the Transfer Station be changed to a regular full-time position.
(iii) THAT a regular full-time environmental technician position be created at the Landfill.
(iv) THAT a regular full-time clerical position at the Landfill be created.
(v) THAT a new vehicle be provided for Landfill staff.
E. THAT the Director of Legal Services be instructed to prepare a by-law to amend the Solid Waste and Recycling By-law to incorporate the 2004 fee increases and other miscellaneous amendments generally in accordance with this report."
GENERAL MANAGER'S COMMENTS
The General Manager of Engineering Services recommends approval of A through E.
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.
Table 1: Comparison of the 2003 fees to the 2004 proposed SWU fees for single family homeowners.
|
Service |
2003 Fees |
2004 Proposed Fees |
$ Change |
Garbage Collection |
$89 |
$91 |
+ $2 |
Recycling Collection (net) |
$26 |
$21 |
- $5 |
Yard Trimmings Collection |
$32 |
$35 |
+$3 |
TOTAL |
$147 |
$147 |
$0 |
Owners of single family dwellings will see no change in their total Solid Waste Utility Fee.
Staff are recommending that the tipping fees for demolition materials accepted at the Vancouver Landfill for road and infrastructure construction be increased by about 5% to $390 for each tandem axle trailer load and $470 for each tridem axle trailer load.
Staff are also recommending that two existing positions at the Transfer Station and Landfill be made regular full-time, and two new regular full-time positions be created.
PURPOSE
The purpose of this report is to set the Solid Waste Utility Fees for 2004, make some minor changes to the Solid Waste By-law, and approve some long term staffing changes at the Landfill and Transfer Station.
BACKGROUND
The way the City delivers and funds solid waste services has changed significantly in the last six 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 about 58,300 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 12,700 tonnes from the landfill in 2004.
DISCUSSION
The discussion section is divided into two parts: A) Solid Waste Utility Collection Fees;
and, B) Transfer & Landfill Operations Branch Operations.
A) Solid Waste Utility Collection Fees
Garbage Collection
The 2004 proposed expenditure budget for garbage collection is $8,332,000 which is a 2.9% increase from 2003. Most homeowners will see an increase of $2 in their annual garbage fees. The increase is principally due to anticipated inflation in labour and equipment costs. Over the past five years, inflationary increases in labour and equipment costs have been offset by falling disposal costs ( both tonnages and unit costs ). However, disposal costs have dropped to a level where it appears that no more offsetting disposal cost reductions will be realized in the near future.
Recycling
The 2004 proposed expenditure budget for recyclables collection is $3,324,000 which is a 16.6% decrease from 2003. The homeowner of a single family dwelling will see a $5 drop in their annual recycling fees.
Although city labour and equipment costs are expected to increase at about the rate of inflation, this increase is more than offset by an increase in the expected recyclables' revenues, and a reduction in the cost of the new apartment recycling contract. The increase in recyclables' revenues is due to higher commodity prices which are expected to continue through 2004. Commodity prices can fluctuate considerably from year to year. Therefore, the annual budget for recyclables' revenues is based on a five-year moving average to provide stability to the fees charged to homeowners.
In 2002, the City constructed a recyclables' receiving depot on East Kent Avenue. The depot is owned by the City but operated by a contractor. This arrangement contributes about $275,000 more in recyclables' revenues to the City than the previous arrangement did in which the contractor provided the recyclables' depot.
The new apartment recycling contract will take effect in April, 2004, and is estimated to cost about $500,000 less than the existing contract.
Yard Trimmings Collection
The 2004 proposed expenditure budget for yard trimmings collection is $3,026,000 which is a 7.5% increase from 2003. The increase is due to expected inflation in labour and equipment costs, and the inclusion of street leaf composting costs. Most homeowners will see an increase of $3 in their annual yard trimmings fees.
Reimbursement of Annual SWU Fees for Properties with Houses under Construction
Staff have received requests from some property owners requesting fee reimbursement for the period from when their dwelling has been demolished until their new dwelling is occupied. The Solid Waste By-Law currently does not make an allowance for such reimbursements. Staff recommend that reimbursements be made when the period from demolition to occupancy of the new dwelling is longer than one year. The one year threshold is recommended because the administrative costs of making the reimbursement are about equal to the annual year's SWU fees. The reimbursement would be prorated in monthly increments.
B) Transfer & Landfill Operations Branch Operations
Convert Regular Part-Time Weighmaster to Regular Full-Time
In April 2002, the hours of operation at the Vancouver South Transfer Station (VSTS) were extended to improve service to commercial haulers and the public using the facility. The change was well received by the public, and resulted in increased use of the facility and increased revenue to the operations.
As part of the change, we accommodated the expanded staffing requirement by temporarily converting a regular part-time weighmaster position to full time, adding approximately 10 hours per week to the position. We are now seeking approval to permanently convert the position from regular part-time to regular full-time. The funding for the position is already in the Transfer Station budget.
Systems Analyst Position
In August 2001 the General Manager of Engineering Services reported to Council on improvements to operations at the Vancouver Landfill and VSTS. As part of the report, we advised Council that there was a need for a Systems Analyst II position to support the divisional information technology. Prior to having a divisional Systems Analyst II position, critical weighscale hardware and software systems were dependent on part-time support by a Sanitation Branch superintendent. Utilizing part-time superintendent support for system maintenance resulted in an unstable weighscale operation and provided insufficient time for performance of core supervisory duties. The system analyst position has been filled since fall 2001, and several system problems have been resolved; the position is required on an ongoing basis to ensure system integrity and maximum revenues for the City.
The systems analyst designs and manages information technology projects involving the VSTS and Vancouver Landfill weighscale system along with other information technology projects within the Solid Waste Division. The position is required to coordinate various contractors and consultants as well as the work of other City forces. The systems analyst position is critical to ensuring stability of the City's weighscale system. This business system is a $20,000,000 per year revenue centre. The systems analyst liaises with other government agencies in relation to the management and operation of information technology systems within the Division. The position has therefore been classified as a Systems Analyst II subject to review by the General Manager of Human Resources, and is funded from the Vancouver Landfill user fees.
Landfill Gas Management
As part of the operation of the Vancouver Landfill, the City of Vancouver operates a gas collection and beneficial use system at the Vancouver Landfill. On October 1 2003, City forces replaced a contractor that had been operating the system for the last two years. A contractor was originally hired to provide transitional operation in advance of implementation of the landfill gas beneficial use system. The beneficial use system is now fully operational. To operate the system, a permanent environmental technician (classification to be determined by the General Manager of Human Resources) is required.
An additional administrative position (classification to be determined by the General Manager of Human Resources) is also required within the branch. The additional administrative position is required because of data management associated with the landfill gas collection system, as well as general branch workload. With the current complement of 3 administrative staff, significant overtime is required, payables are not processed in a timely fashion, and backfilling is required for all absences including missed single days.
The remote nature of the Landfill and the size of the facility make the use of vehicles a necessity for a wide variety of tasks. To meet the additional vehicle requirements, a compact automobile has been utilized by the branch vehicle fleet on a temporary basis. This report seeks approval to add the vehicle to the fleet on an ongoing basis.
These changes will result in a net savings of $100,000 annually as indicated in the Financial Implications section.
Staff at the Landfill now exceed available office space. In addition a large conference room is required for meetings and Landfill tours. Landfill tours are an important way to help educate the public of the benefits associated with the operation of the Landfill as well as general waste reduction education. The requirement for new space will be brought forward to Council in the near future as part of an overall capital request for the Landfill.
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 $390 for each tandem axle trailer and $470 for each tridem axle trailer.
FINANCIAL IMPLICATIONS
Table 1: Comparison of the 2003 solid waste collection expenditure budget versus the 2004 proposed budget for all categories of properties:
|
Service |
2003 Budget |
2004 Budget |
% Change |
Garbage Collection |
$8,096,000 |
$8,332,000 |
2.9% |
Recycling Collection (net) |
$3,985,000 |
$3,324,000 |
-16.6% |
Yard Trimmings Collection |
$2,815,000 |
$3,026,000 |
7.5% |
TOTAL |
$14,896,000 |
$14,649,000 |
-1.6% |
Table 2 : Comparison of the 2003 fees to the 2004 proposed SWU fees for single family homeowners.
|
Service |
2003 Fees |
2004 Proposed Fees |
$ Change |
Garbage Collection |
$89 |
$91 |
+ $2 |
Recycling Collection (net) |
$26 |
$21 |
- $5 |
Yard Trimmings Collection |
$32 |
$35 |
+$3 |
TOTAL |
$147 |
$147 |
$0 |
The costs associated with additional staff and a new compact automobile at the landfill are more than offset by savings from eliminating the use of a contractor to operate the gas control system. The savings associated with the elimination of the contractor are approximately $200,000 per year. In addition, the temporary help budget will be reduced by $10,000. The costs for the new staff and automobile will be approximately $110,000 per year for a net savings of $100,000 per year. The net savings will partially offset cost increases in other areas of the Landfill budget.
PERSONNEL IMPLICATIONS
The following personnel changes at the Transfer Station and Landfill are recommended:
a) Change temporary full-time systems analyst II position to a regular full-time systems analyst II.
b) Change a regular part-time weighmaster position at the Transfer Station to regular full-time.
c) Create a regular full-time environmental technician position at the landfill.
d) Create a regular full-time clerical position at the Landfill.
As noted above in the report, the cost of the personnel changes will be more than offset by the increased tipping fee revenues and reduced contractor costs.
A copy of this report has been provided to CUPE 15.
CONCLUSION
Based on the forecasted 2004 costs, staff recommend that the 2004 Solid Waste Utility Fees be set at:
$27 per stop and $32 per can for garbage collection and;
$12 per stop and $9 per dwelling unit for recycling and;
$35 per stop for yard trimmings collection.
And that the recommended demolition tipping fee increases, the personnel changes and by-law change discussed in this report be adopted.
* * * * *
