Business Plan: Garbage, Recycling & Composting

Transcription

1 Business Plan: Garbage, Recycling & Composting How does this service contribute to the results identified in the City of London Strategic Plan? A Strong Economy A Green and Growing City Local jobs are created by managing many of our resources (recyclables, compostables) and all of our garbage in London instead of exporting it to other municipalities. Additional jobs have been created from processing recyclables from several other municipalities at London s Manning Drive Regional Material Recovery Facility. By owning our own Landfill Site, the City is able to provide London s citizens and businesses with local, secure and affordable waste disposal. Having local and municipality owned waste management facilities for waste diversion and disposal diversion provides London with the infrastructure to manage the City s waste for the long term. By creating products of value from compostable/recyclable/reusable materials discarded by the citizens of London the City is reducing energy consumption, saving landfill space, reducing Greenhouse Gases and promoting a more sustainable lifestyle. Name the main activities done to provide this service: Name The Activities Done To Provide This Service How Much Did We Do? (optional) 1. Garbage collection for 171, households 42 pickups/year for curbside homes 14 pickups/year for multiresidential and downtown core Litter box collection Collect approximately 1, tonnes/year of garbage and yard materials Is The City Mandated To Provide This Service? Can The Level Of Service Be Changed? 215 Draft for the City of London - December 8, 214 Page 183

2 Name The Activities Done To Provide This Service How Much Did We Do? (optional) 2. Yard Material collection for 9, households 8 curbside pickups per year 2 EnviroDepots (over 2, visits/year) 3. Recycling collection, processing and transfer to end markets for 171, households 42 pickups/year for curbside homes 52 pickups/year for multiresidential Ship $3 to $5 million in recyclables to end markets each year 4. Landfill Operations Disposal of 2, tonnes of residential and business waste Is The City Mandated To Provide This Service? Can The Level Of Service Be Changed? No What is the current state of this service? Our goal is to contribute to the health of the environment and the citizens of London through appropriate collection and management of garbage, recyclables, yard materials, household special waste and other selected/designated materials. Solid Waste continues to make incremental improvements in waste diversion each year. More than 5% of waste from curbside residents is being diverted. The overall diversion rate (includes waste from curbside and multi-residential units) has gradually increased over the years to 44% in 213. Future improvements in waste diversion will be more difficult as most existing programs (e.g., Blue Box recycling, yard material composting, etc.) are performing at an average to high level and have little room to grow. Significant improvements in waste diversion in the future will require new programs/initiatives. 215 Draft for the City of London - December 8, 214 Page 184

3 Road Map 2. - The Road to Increased Resource Recovery and Zero Waste and the Interim Waste Diversion Plan outline the next steps to be taken to increase waste diversion. There are several factors which are beyond the control of the City of London that may have a dramatic impact on the funding, timing and requirements of many of the waste diversion initiatives and programs contained in the Road Map 2.. The demise of Bill 91 (Waste Diversion Act, 213) has a significant ripple effect on many short and longer term programs and initiatives associated with waste diversion in London. Other related factors beyond the City s control include the decision of the arbitrator in the fall of 214 on how much industry stewards are to contribute towards Blue Box funding, continual changes to the mix of recyclables being collected and changing commodity prices. The City s Manning Drive Regional Material Recovery Facility (recycling centre or MRF) continues to attract new customers. St. Thomas, the University of Western Ontario and Waste Management began using the facility in 214 in addition to the six area municipalities already taking recyclables to the MRF. The cost to process recyclables decreases as more municipalities use the facility due to economies of scale. The City s two EnviroDepots continue to be very popular (over 2, visits/year). Development of a permanent third depot to service the north end of the City continues to make slow progress due to siting difficulties. As a temporary solution, the TRY Recycling North EnviroDepot has been expanded to accommodate more yard materials and fall leaves and to begin accepting household garbage (for a fee), Blue Box recyclables, electronics, tires, batteries, compact fluorescent light bulbs, empty oil & antifreeze containers and propane tanks. Collection of garbage and yard materials and the operation of the W12A landfill continue to provide excellent service to residents/customers. Delivery of garbage from private haulers in 214 was reduced compared to previous years. This will impact the overall Garbage, Recycling and Composting as tipping fee revenue is down. The W12A landfill has between 9 and 11 years of capacity left. A 214 audit of landfill operations by PricewaterhouseCoopers (PwC), section titled Controls Operating Effectively, noted Landfill operation processes and controls are operating effectively and the City is able to maintain a low cost for waste disposal through operation of its own landfill. 215 Draft for the City of London - December 8, 214 Page 185

4 What has been done to manage the budget? The service area has been actively managing its budget by implementing management lead initiatives aimed at creating efficiencies, avoiding costs and generating revenue. These include the following: Efficiencies / Costs Avoided Previous 3 Years The unit cost to process recyclables at the City s Manning Drive Regional MRF decreases as more recyclables use the facility due to economies of scale. The recycling centre opened three years ago and currently processes recyclables from seven other municipalities, the University of Western Ontario and Waste Management, in addition to London s recyclables. This saves the City approximately $4, per year. Renegotiation of the Miller Waste collection and processing contracts to align their end dates will result in the City receiving additional services and cost reductions valued at approximately $17, (consisting of $55, in additional services provided at no cost and $115, reduction in costs per year). Continued optimization of existing diversion, collection and disposal operations. For example, continued optimization of the garbage collection system has resulted in no increase collection staff over the last ten years, even though the number of homes being collected has increased over 2%. In the last three years, staff reductions have occurred in Solid Waste (Recycling, Composting & Garbage). In 211, a Management Administrative Assistant was removed from the complement and a number of positions were reviewed. In 212, a Public Service Clerk and a Division Manager were removed from the complement. Generation / User Fee Increases Previous 3 Years A raise in user fees for the disposal of bagged garbage and grass clippings in 211 (going from $1. per container to $1.5) increased revenue by $4, per year. Generated $35, of revenue from the sale of carbon credits in 213; in negotiations to sell more in 214 and future years. Renegotiation of garbage collection and disposal arrangements resulted in $14, per year increase in fees paid by Western beginning in June Draft for the City of London - December 8, 214 Page 186

5 The 214 audit of landfill operations by PwC confirmed that City staff s approach to managing tipping fee rates is fair, with the report noting Waste disposal fees to external customers are calculated and charged accurately, and are reasonable when comparing to other municipalities and competitors. Any increase in tipping fees is expected to result in loss of business that will more than offset any increase in revenue from the remaining customers. What is the future direction of this service? What future initiatives can be contained within the maintain existing service level budget? 215 Continued planning for long term disposal capacity (4 years). The 214 audit of landfill operations by PwC has confirmed details provided by City staff to Committee and Council regarding waste export and using other disposal facilities: There is a potential risk that the W12A landfill will reach capacity prior to receiving approval from the Ministry of Environment to expand. The additional cost to dispose of the City s waste without the current landfill site is approximately $5 to $1 million per year. It is recommended that the City continue the process of applying for an expansion of the W12A Landfill with the Ministry of Environment and ensure that it remains one of the highest priorities for the division. It is also recommended that the City of London continue to investigate waste diversion initiatives which in turn will delay the required future expansion. Implementation of initiatives/programs in Road Map 2. - The Road to Increased Resource Recovery and Zero Waste and the Interim Waste Diversion Plan subject to available budget. Continued examination of resource recovery and waste conversion technologies Continued optimization of existing diversion, collection and disposal operations. This will include: Looking for additional revenue at the W12A landfill by seeking new customers (e.g., sand filter waste generated from the water treatment plants operated by Regional Water Supply) and exploring other revenue generating opportunities; Optimizing the Blue Box program by pursuing other municipalities to use the Manning Drive Regional Material Recovery Facility and improving the quality of materials being collected (help residents understand what goes in the Blue Box and why it is important to Sort it Right ). The items listed above are multi-year initiatives and will carry over into the period. 215 Draft for the City of London - December 8, 214 Page 187

6 What service adjustments do you plan to make? 215 There are no service adjustments planned for 215. There will be continued efforts for service optimization in garbage pickup and recycling including work on shared services. There are two pilot projects planned dealing with community composting and food waste reduction. These are initiatives that have been identified during the community engagement on Road Map The outcome of the above listed initiatives will determine what service adjustments are required Key Performance Indicators How Much? Description of measure Garbage Collected (tonnes) 91, 91, 91, 92, 93, 94, 2. Material Diverted (tonnes) 69, 69,5 7, 7,4 7,8 71,2 3. Recyclables Marketed (m3) 27, 29, 29, 295, 3, 35, 4. Waste Landfilled (tonnes) 2, 25, 21, 22, 22, 22, 5. Greenhouse Gases Destroyed (tonnes) 113, 1, 11, 115, 115, 115, How Well? Description of measure Net Operating Cost ($/household) Days garbage/recycling not fully collected 8. MOE Compliance (# of orders/year) 9. Diversion Rate (%) Net Operating Cost ($/household) Draft for the City of London - December 8, 214 Page 188

7 Garbage Recycling & Composting Summary of Submitted 215 From Rates Service Expense Revised Non Tax Net Tax Supported Expense Draft Non Tax Net Tax Supported Increase / (Decrease) Over Previous Year Expense Non Tax Net Tax Supported Tax Supported (%) Recycling & Composting 12,3,361 (7,575,) 4,455,361 12,891,574 (8,77,) 4,121, ,213 (1,195,) (333,787) (7.5%) Garbage Collection & Disposal Total to Maintain Existing Service Level 12,57,26 (3,68,) 8,827,26 12,656,885 (3,25,) 9,46, ,679 43, 579, % 24,537,567 (11,255,) 13,282,567 25,548,459 (12,2,) 13,528,459 1,1,892 (765,) 245, % Service Adjustments Submitted.% 215 GARBAGE RECYCLING & COMPOSTING SERVICES AS SUBMITTED 13,528, , % 215 Highlights: $ % Maintaining Existing Service: Recycling & Composting: Increase in revenue from processing fees due to higher volumes in recycling revenues due to projected increases in (333,787) (7.5%) commodity prices and other net revenues. This is partially offset by contractual obligations and personnel costs. Garbage Collection & Disposal: Reduced revenue due to lower quantities of business garbage and container charges slightly offset by increase in collection charges revenue. Furthermore, decrease in purchased services partially offset by increase in materials & supplies. 579, % Increase/ (Decrease) over prior year budget 245, % 215 Draft for the City of London - December 8, 214 Page 189

8 Recycling & Composting 215 As Submitted From Rates Explanation of Adjustments 215 Maintain Revised Service Requested Actual Existing Adjustments Service Object Expenditures $ % Personnel Costs 385,87 819,428 35, ,423 35, % Administrative Expenses 2,56 2,4 3 2, % Financial Expenses 28,599.% Purchased Services 1,146,597 1,526,222 36, 1,832,222 36, 2.9% Materials & Supplies 11,536 12,769 12,769.% Furniture & Equipment 29,286 4,542 (4,82) 36,46 (4,82) (1.1%) Transfers 377, , 515, 1,14, 515, 82.4% Other Expenses 263,39 4, 8, 12, 8, 2.% Recovered Expenses (745).% Total Expenditures 11,244,3 12,3, ,213 12,891, , % User Fees (545,469) (655,) (325,) (98,) (325,) 49.6% Other Municipal s (6,83,6) (6,92,) (87,) (7,79,) (87,) 12.6% Sub-total - Non Property Tax (7,348,476) (7,575,) (1,195,) (8,77,) (1,195,) 15.8% Net 3,895,554 4,455,361 (333,787) 4,121,574 (333,787) (7.5%) Additional Information / Commentary With Respect To The 215 Draft Maintaining Existing Service Levels (Flow through from prior years, inflation, contractual obligations, efficiencies) Increase in salary, wage and fringe benefits due to existing employment agreements. 213 Actual and 214 Revised Personal Costs reflect a realignment of staffing charged to business units from other areas. Increase/ (Decrease) Over 214 Increase in contracted services and advertising costs based on actual experience. Increase in waste diversion costs based on inflation and contractual obligations. Decrease in internal fleet rates. Increase in processing payments due to higher volumes. Increase in processing fees and recycling revenues due to increase in commodity prices and higher volumes. 215 Draft for the City of London - December 8, 214 Page 19

9 Net Property Tax Supported Recycling & Composting 215 and From Rates 214 Revised 215 Requested Prior Year 4,455,361 4,121,574 4,192,553 4,347,296 Maintain Existing Service Levels Increase / (Decrease) (333,787) 7, ,743 7,56 Maintain Existing Service Levels 4,455,361 4,121,574 4,192,553 4,347,296 4,417,82 296,228 Increase / (Decrease) Over Prior Year % (7.5%) 1.7% 3.7% 1.6% 7.2% Total 215 Service Adjustments / 4,455,361 4,121,574 4,192,553 4,347,296 4,417,82 296,228 Increase / (Decrease) Over Prior Year (333,787) 7, ,743 7,56 296,228 Increase / (Decrease) Over Prior Year % (7.5%) 1.7% 3.7% 1.6% 7.2% Annual Average Increase: 2.3% Additional Information / Commentary With Respect To The : Maintain Existing Service Levels - Recycling revenue can fluctuate significantly from year to year as pricing for materials are tied to global commodity markets. - Non-personnel accounts are projected to increase at the rate of inflation to 218 Projected Increase 215 Draft for the City of London - December 8, 214 Page 191

10 Recycling & Composting Staffing 214 Revised 215 Requested Maintain Existing Service Levels Full-Time Equivalents # 1. Full-Time Employees # 1 Service Adjustments Full-Time Equivalents # Full-Time Employees # Total Staffing Full-Time Equivalents # Increase / (Decrease) Over Previous Year Full-Time Employees # Increase / (Decrease) Over Previous Year 1 Additional Staffing Information / Commentary: Requesting additional staff in 217 to maintain service levels. 215 Draft for the City of London - December 8, 214 Page 192

11 Garbage Collection & Disposal 215 As Submitted From Rates Explanation of Adjustments 215 Maintain Revised Service Requested Actual Existing Adjustments Service Object Expenditures $ % Personnel Costs 6,665,826 6,374,893 82,593 6,457,486 82, % Administrative Expenses 77,455 79,245 (4,) 75,245 (4,) (5.%) Financial Expenses (268,179) 87, 87,.% Purchased Services 694, ,392 (65,592) 726,8 (65,592) (8.3%) Materials & Supplies 325,582 27,155 39, ,969 39, % Furniture & Equipment 4,276,967 4,561,521 (13,136) 4,548,385 (13,136) (.3%) Other Expenses 71, , 12, 635, 12, 23.3% Recovered Expenses (535,59) (11,) (1,) (12,) (1,) 9.1% Total Expenditures 11,947,275 12,57,26 149,679 12,656, , % User Fees (3,365,819) (3,51,) 435, (3,75,) 435, (12.4%) Other Municipal s (152,913) (17,) (5,) (175,) (5,) 2.9% Sub-total - Non Property Tax (3,518,731) (3,68,) 43, (3,25,) 43, (11.7%) Net 8,428,544 8,827,26 579,679 9,46, , % Additional Information / Commentary With Respect To The 215 Draft Maintaining Existing Service Levels (Flow through from prior years, inflation, contractual obligations, efficiencies) Increase in salary, wage and fringe benefits due to existing employment agreements. Decrease in purchased services due to a reduction in business garbage collected. Increase in operating supplies based on actual experience and utilities based on market conditions. Increase/ (Decrease) Over 214 Increase in internal rental equipment based on fleet rates offset by a decrease in external vehicle rentals due to less volume. Decrease in equipment replacement. Increase in wastewater costs based on actual experience. Decrease in tipping fees revenue due to a reduction in business garbage from existing customers. Increase in sale of scrap and collection charges revenue partially offset by decrease in container charges revenue. 215 Draft for the City of London - December 8, 214 Page 193

12 Net Property Tax Supported Prior Year 8,827,26 9,46,885 9,586,543 1,215,783 Maintain Existing Service Levels Increase / (Decrease) 579, , ,24 124,18 Maintain Existing Service Levels 8,827,26 9,46,885 9,586,543 9,715,783 1,339,81 432,916 Increase / (Decrease) Over Prior Year % 6.6% 1.9% 1.3% 1.2% 4.6% Total 215 Service Adjustments Service Adjustments #1 - Increased annual contribution to the Sanitary Landfill Reserve Fund Garbage Collection & Disposal 215 and From Rates 214 Revised 215 Requested to 218 Projected Increase 5, 5, / 8,827,26 9,46,885 9,586,543 1,215,783 1,339,81 932,916 Increase / (Decrease) Over Prior Year 579, , ,24 124,18 932,916 Increase / (Decrease) Over Prior Year % 6.6% 1.9% 6.6% 1.2% 9.9% Annual Average Increase: 3.2% Additional Information / Commentary With Respect To The : Maintain Existing Service Levels - Tipping fee revenue from W12A landfill can fluctuate significantly from year to year depending on the strength of the economy and external competition. - Non-personnel accounts are projected to increase at the rate of inflation. Service Adjustments - Service Adjustments #1 - Increased annual contribution to the Sanitary Landfill Reserve Fund required if tipping fee revenue does not rebound. 215 Draft for the City of London - December 8, 214 Page 194

13 Garbage Collection & Disposal Staffing 214 Revised 215 Requested Maintain Existing Service Levels Full-Time Equivalents # Full-Time Employees # Service Adjustments Full-Time Equivalents # Full-Time Employees # Total Staffing Full-Time Equivalents # Increase / (Decrease) Over Previous Year.... Full-Time Employees # Increase / (Decrease) Over Previous Year Additional Staffing Information / Commentary: 215 Draft for the City of London - December 8, 214 Page 195