Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services & Budgets

FROM:

General Manager of Engineering Services

SUBJECT:

Residential Can Limit Reduction and Establishment of 1999 Solid Waste Utility Fees

 

PURPOSE

The purpose of this report is to recommend the establishment of the 1999 Solid Waste Utility fees and to recommend the lowering of the residential garbage collection limit from three to two cans per collection period as a further waste reduction initiative and as a step towards a true user pay system.

BACKGROUND

On October 7, 1997, City Council approved that the Solid Waste Utility be implemented effective January 1, 1998. Garbage collection and disposal costs were removed from the general property levy and replaced with a user fee. In addition, a recycling user fee was implemented for the blue box program and other recycling programs which previously had been funded from landfill tipping fee surpluses. The garbage user fee includes costs for collection and disposal. The recycling user fee includes residential blue box service, yard waste composting, leaf bag collection, GVRD recycling surcharge and miscellaneous programs such as the compost demonstration garden.

DISCUSSION

The first year of the Solid Waste Utility has gone reasonably well. We have had surprisingly few complaints. With the introduction of a user pay system, the City is now in a position to implement can limit reductions and other waste reduction initiatives.

The Solid Waste Utility functions as a self-sustaining operation, with fees based on full cost-recovery, reviewed annually by Council. For 1998, the estimated total costs are expected to exceed the revenues by about $75,000. Any deficit (or surplus) will be absorbed by the Solid Waste Capital Reserve. For 1999, it is estimated that the cost to provide garbage collection services will decrease from $100 to $98 principally due to lower debt costs of the transfer station. The cost to provide recycling services will increase from $45 to $48 due principally to increased recycling truck costs.

To reflect these changes in costs, it is recommended that the Solid Waste Utility fees for 1999 be set at $98 for garbage collection, and $48 for recycling.

SOLID WASTE UTILITY COSTS AND FEES

 

1998
Budget
$

1998
Estimate
$

1999
Budget
$

Budget
Change

COSTS

        

Garbage Collection

8,512,800

8,500,000

8,287,800

-2.64%

Recycling

3,839,600

3,800,000

4,013,000

4.52%

TOTAL

12,352,400

12,300,000

12,300,800

-0.42%

REVENUES

        

Garbage Collection

8,512,800

8,447,900

8,287,800

-2.64%

Recycling

3,839,600

3,777,100

4,013,000

4.52%

TOTAL

12,352,400

12,225,000

12,300,800

-0.42%

Surplus/(Deficit)

0

(75,000)

0

  

Any surplus or deficits are absorbed by the Solid Waste Capital Reserve.

 

1998

1998

1999

Customers
Garbage Collection
Recycling

(estimate)
85,135
84,680

(actual)
84,799
83,935

(estimate)
84,799
83,935

FEES

      

Garbage Collection

$ 99.99

$ 99.62

$ 97.73

Recycling

$ 45.34

$ 45.00

$ 47.81

TOTAL (rounded)

$145.00

$145.00

$146.00

TWO CAN LIMIT

When the Solid Waste Utility was implemented in 1998, the can limit was kept at three cans to ease the transition for residents to a user fee type system. However, it was anticipated that, some time after the Solid Waste Utility was implemented, the refuse collection limit would be lowered to two cans and then eventually one can per collection period.

An inequity exists with the three can limit under the user fee system. Homeowners who generate one or two cans per collection period pay the same fee as those who set out three cans. This inequity can be mitigated by reducing the collection limit to two cans.

Staff believe that residents have had sufficient time to adjust to the new system and, therefore, the can limit can be reduced to two cans effective February 1, 1999, i.e. on the same date as when the 1999 Refuse Calendar becomes effective.

Lowering the can limit to two would move Vancouver towards the long term goal of the GVRD's Solid Waste Management Plan for municipalities to adopt a pure user pay system for solid waste services. Many of the other GVRD municipalities, such as Surrey, Richmond and Delta, have already implemented a two can limit.

A two can limit would also serve as an additional initiative for achieving Council's 50% waste reduction goal. Residents who are currently not making use of recycling services available to them or not reducing their waste generation as other Vancouver residents are would have more incentive to do so. Recycling programs available to residents include blue box service, leaf bag collection, subsidized composter sales, and yard waste drop-off.

It is estimated that about one-third of residents set out three or more cans per week. Residents who continue to want more than two cans collected will be able to do so by purchasing the $1.50 stickers or buying an additional two cans and blue box service per collection period by paying an additional user fee of $146 annually.

It is difficult to predict the impact that the can limit reduction will have on residents' garbage disposal volumes. Some residents will set out an extra garbage receptacle at their neighbour's who set out only one can, or they may compact their garbage to get within the two can limit. A few may abandon their extra garbage. Many residents will also be encouraged to practise the 3 Rs (Reduce, Reuse and Recycle) if they are not already doing so.

To publicize the can limit reduction, staff recommend that advertisements be placed in the community newspapers. A budget of $10,000, which will be funded through the user fees, is recommended by staff.

ENVIRONMENTAL IMPLICATIONS

Reducing the can limit will provide a further incentive for residents to practice the 3Rs (reduce, reuse and recycle) and, therefore, assist in achieving Council's 50% waste reduction goal.

PERSONNEL IMPLICATIONS

There are no anticipated impacts on personnel.

FINANCIAL IMPLICATIONS

We do not anticipate that the amount of garbage collected will drop significantly, if the can limit is reduced to two. Therefore, the costs of the garbage collection operation are not expected to fall. However, if the garbage collected drops by an amount that allows for cost reductions, this will be done as soon as it is possible. This reduction in costs will then be reflected in the user fees after 1999.

Staff anticipate that only a few residents will continue to set out three cans and that an additional $30,000 of stickers will be purchased by residents annually. The anticipated increased sticker revenue has been factored into the 1999 fees. If revenues are greater than forecast, this will be reflected in the user fees after 1999.

CONCLUSION

Based on the forecasted 1999 costs, staff recommend that the 1999 fees be set at $98 for garbage collection and $48 for recycling. To move towards a more equitable user pay system, staff also recommend that the garbage collection limit be set at two cans effective February 1, 1999.

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

* * * * *

pe981203.htm

SCHEDULE `B'

RATES FOR COLLECTION/RECYCLING

I. GARBAGE CAN AND RECYCLING SERVICE

A. RESIDENTIAL PROPERTY

additional cans of garbage
collected on each
collection day

fees if City provides
garbage can collection
but no blue box service

fees if City provides
garbage can and blue box
service

2 can limit 3 can limit
1 to 2 1 to 3
3 to 4 4 to 6
5 to 6 7 to 9
7 to 8 10 to 12
over 8 over 12

1 x $1.96 = $1.96
2 x $1.96 = $3.92
3 x $1.96 = $5.88
4 x $1.96 = $7.84
$1.96 for every set or
partial set of 2 cans
collected

1 x $2.92 = $2.92
2 x $2.92 = $5.84
3 x $2.92 = $8.76
4 x $2.92 = $11.68
$2.92 for each set or
partial set of 2 cans
collected

* * * * *

pe981203.htm

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