THOMPSON-NICOLA REGIONAL DISTRICT

Transcription

1 THOMPSON-NICOLA REGIONAL DISTRICT Extra Agenda - Thursday, April 17, 2014 A G E N D A Time 1:15 p.m. Place: Board Room 4th Floor 465 Victoria Street Kamloops, BC Page 12 REPORTS and/or INQUIRIES a Internal Committees 12.a.7 Regional Solid Waste Management Committee - Director W. Kershaw (Chair), Director K. Gillis (Vice Chair), Director R. Elliott, Director J. Harwood, Director. J. Lightfoot, Director J. Rivett, Director J. Sternig, Director P. Wallace, and Director S. Watson. Minutes of the Regional Solid Waste Management Committee meeting dated April 10, 2014, attached. Committee Report from the Director of Environmental Services re: dated April 3, 2014, attached. Recommendation: That there is: - an increase of tipping fees for DLC from $60/t to $120/t, effective July 1, 2014 and then a further increase to $160/t effective Jan. 1, 2015; - an increase of tipping fees for household refuse from $60/t to $80/t, effective Jan 1, 2015; - an increase of tipping fees for source separated DLC from $60/t to $100/t, effective Jan 1, CLOSED MEETING Page 1 of 12

2 Recommendation: That a Closed meeting be held in accordance with Sections 90(1)(d) (the security of the property) and 90(1)(f) (law enforcement) of the Community Charter. Page 2 of 12

3 THOMPSON - NICOLA REGIONAL DISTRICT REGIONAL SOLID WASTE MANAGEMENT PLAN IMPLEMENTATION COMMITTEE Thursday, April 10, 2014 MINUTES of a Meeting of the REGIONAL SOLID WASTE MANAGEMENT PLAN IMPLEMENTATION COMMITTEE held in the Boardroom on Thursday, April 10, 2014 commencing at 1:30 PM. PRESENT: Director W. Kershaw (Chair) Director K. Gillis (Vice Chair) Director P.A. Wallace Director J. Harwood Director J. Rivett Director J. Lightfoot Director S. Watson Director R. Elliott Director J. Sternig Electoral Area "O" (Lower North Thompson) Electoral Area "L" City of Kamloops Village of Clearwater Village of Clinton Village of Lytton Electoral Area "E" (Bonaparte Plateau) Electoral Area "J" (Copper Desert Country) Electoral Area "P" (Rivers and the Peaks) Mr. S. Gill, Chief Administrative Officer Ms. C. Black, Corporate Officer Mr. D. Rae, Director of Finance Mr. P. Hughes, Director of Environmental Services Mr. J. Vieira, EHS Operations Supervisor Mr. M. Garrett, Communications Coordinator Ms. R. Blixrud, Recording Secretary PRESS: OTHERS: None. Mr. B. Humphreys, Chair, Thompson-Nicola Regional District Board 1. ADDITIONS TO OR DELETIONS FROM THE AGENDA None. 2. MINUTES (a) Minutes of the Regional Solid Waste Management Committee dated February 20, a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 3 of 12

4 Minutes of Regional Solid Waste Management Plan Implementation Committee Page 2 of 4 Thursday, April 10, 2014 Moved by Director Wallace Seconded by Director Harwood That the minutes of the Regional Solid Waste Management Committee dated February 20, 2014 be adopted. 3. UNFINISHED BUSINESS None. 4. CORRESPONDENCE None. 5. NEW BUSINESS None. 6. REPORTS and/or INQUIRIES CARRIED Unanimously (a) The report from the Director of Environmental Services dated April 3, 2014, proposing an increase to tipping fees, was provided to the committee. The Manager of Environmental Services provided a presentation and provided a review of TNRD s current tipping fees as compared to surrounding regional districts, which demonstrated that the TNRD charges the lowest tipping fees compared to surrounding jurisdictions. The Manager of Environmental Health Services highlighted that the policies in the TNRD Solid Waste Management Plan outline that tipping fees should be consistent but not lower than tipping fees set in regional districts surrounding the TNRD. An explanation was provided regarding the costs associated with handling demolition/land clearing /construction (DLC) waste, source separated DLC waste, and household waste. Two options for tipping fee increases were presented to the committee. Discussion ensued regarding the two options and the impacts the increases would have on the average household and on commercial patrons. It was noted that source separated DLC waste is of much higher value to the TNRD and therefore there should be a financial incentive for patrons to dump source separated DLC waste instead of co-mingled DLC waste. 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 4 of 12

5 Minutes of Regional Solid Waste Management Plan Implementation Committee Page 3 of 4 Thursday, April 10, 2014 Moved by Director Watson Seconded by Director Elliott Recommends that the Board approve: - the increase of tipping fees for DLC from $60/t to $120/t, effective July 1, 2014 and a further increase to $160/t, effective Jan 1, 2015; - the increase of tipping fees for household refuse from $60/t to $80/t, effective Jan 1, 2015; and - the increase of tipping fees for source separated DLC from $60/t to $100/t, effective Jan 1, CARRIED (b) Solid Waste Disposal, Recycling and Diversion Totals The report from the Director of Environmental Services dated April 3, 2014 regarding solid waste disposal, recycling and diversion tools was provided to the Committee for consideration and an accompanying presentation was provided. The Director of Environmental Services indicated that there has been an overall decrease in the amount of waste entering the landfills and there has been an increase in the amount of materials being recycled. Estimates of the amount of tonnage of waste entering the landfills each year will now be much more accurate because of the installation of scales at the majority of solid waste management sites. Discussion commenced regarding how the Multi-Materials BC (MMBC) contracts may have future implications on the TNRD s solid waste management plan; staff noted that at this time MMBC has not offered a contract to the TNRD. Moved by Director Gillis Seconded by Director Sternig That the report regarding solid waste disposal, recycling and diversion totals be received for information. CARRIED Unanimously (c) Update on Eco-Depot Designs and 2014 Waste Reduction Initiatives The Manager of Environmental Health Services provided an update presentation, and provided further details on the following initiatives: - 70 Mile Eco-Depot design and plans for construction - Blue River Eco-Depot design and plans for construction - Education and sale of Green Cone food digesters as a food waste reduction initiative plans for backyard composting workshops - Asphalt shingle recycling pilot project 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 5 of 12

6 Minutes of Regional Solid Waste Management Plan Implementation Committee Page 4 of 4 Thursday, April 10, Used oil recycling program - Electronics, small appliances and paint plus recycling program - Light recycling pilot project at the Clearwater Eco-Depot - Household hazardous waste round-up event schedule The Manager of Environmental Health Services responded to questions from the Committee. On question, the Chief Administrative Officer indicated that a comprehensive cost-savings plan could be provided to the Committee, but it would likely take one year to compile as the data from facility scales is required to provide useable data on which to base decisions. 7. ADJOURNMENT The meeting adjourned at 3:18 PM. Certified Correct: Corporate Officer Chair 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 6 of 12

7 Approved & Added to April 10, 2014 RSWM Committee Agenda Environmental Services COMMITTEE REPORT TO: Solid Waste Management Committee DATE: April 3, 2014 FROM: SUBJECT: Director of Environmental Services RECOMMENDATIONS: 1. Recommends that the Board approve the increase of tipping fees for household refuse from $60/t to $70/t, effective July 1, Recommends that the Board approve the increase of tipping fees for DLC from $60/t to $120/t, effective July 1, Recommends that the Board approve the increase of tipping fees for source separated DLC from $60/t to $70/t, effective July 1, Peter Hughes Director of Environmental Services Approved for Board Consideration CAO SUMMARY: The approved 2008 TNRD Regional Solid Waste Management Plan called for tipping fees in the TNRD to be consistent with surrounding regional districts as well as within the TNRD at private sector and municipal facilities. When first implemented in 2008 TNRD tipping fees were comparable to surrounding regional districts; however, since then other regional districts have increased their tipping fees considerably and at present time TNRD tipping fees are far lower than almost every other regional district in the southern interior. It is recommended that the tipping fees for household refuse be increased to $70/t and that DLC tipping fees be increased to $120/t effective July 1, a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 7 of 12

8 April 3, 2014 Page 2 of 6 Subject: Approved & Added to April 10, 2014 RSWM Committee Agenda BACKGROUND: Tipping fees are being revisited because one of the policies set in the TNRD RSWMP is standardization of tipping fees (Section 3.2). In development of the plan it was noted that the much lower tipping fees within the TNRD was attracting waste from surrounding regions therefore increasing cost to TNRD residents. The plan called for tipping fees in the TNRD to be consistent with surrounding regional districts as well as tipping fees within the TNRD to be consistent including private facilities and facilities run by member municipalities. When first implemented in 2008 TNRD tipping fees were comparable to surrounding regional districts; however, since then other regional districts have increased their tipping fees considerably and at present time TNRD tipping fees are far lower than almost every other regional district in the southern interior. Tipping fees are also being revisited to support the user pay approach that was laid out in the RSWMP. One of the main objectives of the user pay approach is to shift a portion of solid waste management costs from all tax payers and recover it directly from the people generating the waste, hence user pay. Increases in tipping fees will reduce the money required from taxation to fund the service. Tipping fees currently make up about 17% of the 2014 Solid Waste Management operations budget, with the remainder funded by borrowing and taxation. It should also be noted solid waste management is affected by increasing prices just like any other industry. Increases in the cost of fuel, labour, and equipment greatly impact the cost of handling solid waste resulting in the need to increase tipping fees. DISCUSSION: There are two main categories of solid waste, household refuse and Demolition/Land clearing/construction (DLC). Household refuse is regular garbage generated from homes or offices. This is typically bagged garbage that is easily collected curbside or placed in bins at transfer stations. DLC is most commonly waste generated from construction sites or from home renovations. DLC is typically comprised of drywall, wood waste, insulation, roofing material, concrete, etc. It is common practice in the solid waste industry to have separate tipping fees for 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 8 of 12

9 April 3, 2014 Page 3 of 6 Subject: Approved & Added to April 10, 2014 RSWM Committee Agenda household refuse and DLC. This report will address the tipping fees for each category separately. Household Refuse When the user pay system waste first introduced in accordance with the RSWMP, tipping fees were initially set at $60/tonne and have not increased since. At that time $60/tonne was comparable to surrounding regional districts. Table 1. Shows the current tipping fees of the regional districts in the southern interior. It is clear that the TNRD tipping fees are no longer comparable to surrounding areas. As per the RSWMP the TNRD tipping fee for household refuse should be increased. Table Tipping Fees for Household Refuse Regional District Household Refuse Tipping Fee Cariboo Regional District $46.13/t * Thompson Nicola Regional District $60/t Regional District of Central Okanagan $65.00/t Columbia Shuswap Regional District $70.00/t Squamish Lillooet Regional District (Lillooet Landfill) $78.50/t Regional District of Central Kootenay $85.00/t Regional District of North Okanagan $90.50/t Regional District of Okanagan Similkameen $95.00/t Regional District of Kootenay Boundary $95.00/t Fraser Valley Regional District (Hope Landfill) $115.00/t *the first 450 kg is no charge The RSWMP states that a gradual ramping up of fees will likely be required in order to keep up with tipping fees in surrounding regions. Since tipping fees have not increased for the past 5 year we are past due for an increase. A gradual incremental increase in fees is thought to be more palatable to customers than large increases periodically. Therefore it is recommended that the tipping fees for household refuse be increased to $70/t effective July 1 st Along with the recommendation that tipping fees be increased in 2014, tipping fees should be revisited by the TNRD Solid Waste Management Committee each year to ensure our fees are comparable to other districts. 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 9 of 12

10 April 3, 2014 Page 4 of 6 Subject: Approved & Added to April 10, 2014 RSWM Committee Agenda As noted above, tipping fees currently make up about 17% of the 2014 Solid Waste Management operations budget, with the remainder funded by borrowing and taxation. It is also desired to have the portion of operations funded by tipping fees increase with time to an ultimate goal of 50% funded by fees and 50% by taxation; however, this may be difficult to achieve and a 40% fees and 60% taxation split may be more realistic. To this end it is anticipated that another $5 to $10 increase be implemented in 2016 (has been included in the 5-year financial plan) and that further increases be considered in the future. DLC Tipping fees for DLC waste are typically much higher than household refuse. DLC is bulky material that is not easily compacted, therefor it is more costly to transport and take ups more airspace in landfills. As with household refuse, DLC tipping fees in the TNRD have been unchanged at $60/t since first established in in Please note for the purpose of this report DLC is assumed to be co-mingled material (non-source separated). As evident is Table 2, DLC tipping fees are double or triple at the majority of regional district in the southern interior. It is recommended that the TNRD DLC tipping fees be increased to $120/t. Although doubling the current fee seems drastic, the TNRD DLC tipping fee would still be one of the lowest compared to neighboring regional districts. The DLC tipping fees should also be revisited by the Solid Waste Management Committee annually to ensure fees are comparable to other districts. It is likely that staff would recommend further increases to the DLC tipping fee in the next few years in an effort to catch up with our neighbors. Table Tipping Fees for Comingled DLC Regional District Mixed DLC Tipping Fee Thompson Nicola Regional District $60.00/t Regional District of Central Okanagan $65.00/t - $145.00/t ($50 additional sorting fee) Regional District of Kootenay Boundary $150.00/t Squamish Lillooet Regional District (Lillooet Landfill) $156.00/t Cariboo Regional District $164.00/t Fraser Valley Regional District (Hope Landfill) $175.00/t Regional District of North Okanagan $180.00/t Regional District of Central Kootenay $200.00/t Regional District of Okanagan Similkameen $200.00/t - $500.00/t Columbia Shuswap Regional District $280.00/t 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 10 of 12

11 April 3, 2014 Page 5 of 6 Subject: Approved & Added to April 10, 2014 RSWM Committee Agenda It is proposed that where the facilities exist to accommodate source separated DLC waste a lower tipping fee of $70/t should apply. Dimensional lumber is an example of source separated DLC which is presently accepted at TNRD eco-depots. This allows customer the opportunity to reduce their fees by separating DLC waste allowing it to be diverted from landfill. Currently source separated wood waste from TNRD Eco-depots is chipped and used for reclamation projects and cover material at TNRD landfills. Source separation of other DLC waste such as gypsum and roofing material will be implemented in coming years. Budgetary Impact Estimates of the increase in revenue generated by a $10/tonne increase in tipping fees for household refuse and a $60/tonne increase for DLC refuse has been calculated using the estimated tonnage of household and DLC deposited in the two remaining operating TNRD landfills in 2013, and by using the estimated annual tonnages of waste that crossed all of the scaled sites in The results are shown in Table 3. Generally, the potential increase in revenue is estimated to be in the order of $430,000 from DLC and $125,000 from household refuse. These potential increases were included in the 2014 solid waste management budget. Table 3. Estimates of Potential Increased Tipping Fee Revenue Method DLC Revenue $120/tonne Refuse Revenue $70/tonne Scale Tonnages $431,900 $132,300 Landfill Tonnages $435,500 $124,700 Solid Waste Management Facilities not Operated by TNRD All permitted facilities under the TNRD RSWMP presently have the same tipping fees. As per the RSWMP, a change in tipping fees at TNRD facilities would also require a change in fees at other facilities in the region not operated by the TNRD. These facilities include the City of Kamloops landfills, Owl Road landfill, Blackwell Dairy landfill, and Cache Creek landfill. TNRD 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 11 of 12

12 April 3, 2014 Page 6 of 6 Subject: Approved & Added to April 10, 2014 RSWM Committee Agenda staff have already had discussions with the City of Kamloops regarding the recommended tipping fee increases. Information Roll-out If an increase in tipping fees is adopted by the TNRD Board a public awareness campaign would be launched to inform residents of the change. It is expected commercial customers will be impacted the greatest by this change. A direct mail out to all TNRD account customers would ensure all are notified well ahead of the implementation date. Information to the general public would be focused at the TNRD facilities via signage, posters, brochures, and verbal notification from site attendants. Press releases are also planned to get the message out not only that fees are changing but why the change is necessary, this will include information on fees in neighbouring districts so customers can do their own comparison. CONCLUSION: The proposed increase will reduce the portion of Solid Waste Management covered through taxation by increasing the portion covered through tipping fees. The increase in tipping fees may also act as a deterrent for out of region waste ending up in TNRD facilities. 12.a Internal Committees 12.a.7 Regional Solid Waste Managem... Page 12 of 12