GUIDE TO REVIEWING WASTE AND RECYCLING CONTRACTS

Zero Waste SA GUIDE TO REVIEWING WASTE AND RECYCLING CONTRACTS FOR SMALL TO MEDIUM ORGANISATIONS IN SOUTH AUSTRALIA

Important information on using this guide The material in this Zero Waste SA publication is an information guide only and is not a substitute for legal advice. Contractual decisions made as a result of using this guide are the sole responsibility of the organisation seeking waste and recycling services. Zero Waste SA takes no responsibility for contractual arrangements made as a result of using this guide and disclaims all liability for any expenses, losses, damages or costs the reader or any relevant third party may incur as a result of reliance upon the information contained in this publication. This Guide to Reviewing Waste and Recycling Contracts Toolkit has been prepared by Zero Waste SA (ZWSA) to offer a quick summary of the things to consider when organisations review waste management contracts and arrangements. Each organisation will have its own needs and issues. These guidelines do not give specific guidance and do not replace the need for legal advice on contractual matters. The information provided under the heading What to look for in waste or recycling collection contracts (in this document) has been adapted from rethink Business Waste! A Guide to Reviewing Waste and Recycling Contracts, April 2011, which is copyright of State of Queensland (Department of Environment and Resource Management) 2011.

Contents Seeking the most appropriate waste contract 2 Ask some basic questions about your current contract 2 Identify other potential providers 2 If it is not measured it cannot be managed 3 Inspect your bins contents 3 What is recycled and what can be recycled? 3 What to look for in waste or recycling collection contracts 4 Additional questions for recycling contracts 7 Waste and recycling management tools 9 Typical Bin Sizes 10 Bin Inspection Worksheet 11 A Guide to Recycling Streams for South Australian Organisations 14 Waste and Recycling Collection Record 19 The waste management hierarchy 20

2 Seeking the most appropriate waste contract Most organisations use a waste collection contractor to remove waste from their premises. This may be the local council or a private contractor. It is important that an organisation knows how to establish the most appropriate waste contract for its individual requirements. To do this it is important to: understand what waste is generated and review both current and future contracts carefully. This Guide offers a number of tools and links aimed at small to medium organisations to help understand the requirements and services and terms offered by waste collection companies. It can also assist larger organisations with work tenders - refer to Waste and Recycling Tender Guidelines. To answer some of the questions posed about contracts, you may need to ask the waste contractor and / or a legal advisor. You may wish to forward the contract and any written responses about the contract to a legal advisor. Ask some basic questions about your current contract Read your organisation s waste and recycling contract documents (including the terms and conditions) and make sure you know the answers to the following questions: What is and is not included in the contract? What are the charges for the services provided? What services will be delivered for the life of the contract? Identify other potential providers You can find out about local waste and recycling contractors at Planet Ark s Business Recycling website www.businessrecycling.com.au.

3 If it is not measured it cannot be managed To effectively manage waste and recycling collection contracts, you need to know: The types of waste and recyclables your organisation generates The types of recyclables not currently collected separately How much (roughly) waste and recyclables the organisation typically generates? Current costs for disposal of waste and recyclable materials What is recycled and what can be recycled? To help you to identify types of recyclable materials ZWSA has developed a Guide to Recycling Streams for South Australian Organisations (page 14). Review this to see if you are recycling what others in your industry typically recycle. If you need more specific information on your waste profile, consult an experienced waste auditor who can audit the organisation s waste stream. Opportunities you can identify to avoid or minimise waste and maximise recycling and reuse of materials Inspect your bins contents To determine how much and what type of waste and recyclables your organisation generates, inspect all the bins on the day the collection truck will arrive (before collection). ZWSA has developed tools to help with this: List of Typical Bin Sizes (page 10) Waste and Recycling Bin Inspection Worksheets (page 10-13) Check your bins against the typical bin sizes. Then use the worksheet to record: date and time of collections location fullness (%) bin size volume (fullness x bin size) any comments. Do not worry if the bins are all different sizes, just note down the sizes, estimate how full they are, and how often waste is collected. For example, if you have one standard domestic 240 litre wheelie bin (same size as a typical household yellow-lidded recycling bin) and it is 75 per cent full and collected once a week, you generate 180 litres of waste per week.

4 What to look for in waste or recycling collection contracts When you have an understanding of your waste needs, review the current (or any proposed) contract using the following information and questions as a guide. Questions Your Answers and What You Will Do Comments What are the start and end dates of the contract? Will the contract automatically roll over into a new contract at the completion of the contract period? If the contract period ends, do collection services go off contract and is this charged at a different rate? Some waste or recycling collection contracts may contain automatic renewal or extension clauses. This means that contracts might automatically renew or be extended if an organisation does not notify the contractor that it does not wish to extend or renew its contract. The contract may also specify that you must notify your intention several months before the contract ends. What are the current annual costs for waste collection for the organisation? Waste or recycling costs may include a range of charges, including bin rental, administrative fees and bin lift fees or weight-based charges. Detailed charging information may or may not be shown on invoices. If this is an issue, discuss with the waste or recycling contractor or seek appropriate legal advice. Base the answer to this question on at least 12 months of billing data. If 12 months of data is not available, estimate for the period available and use this to extrapolate to a 12 month period.

5 Questions Your Answers and What You Will Do Comments Is the organisation charged on the weight of waste (kg or tonnes) or per lift (volume m 3 )? Where an organisation is charged bin lift fees, it will generally be charged a fixed rate each time the collection truck lifts a bin, regardless of how full the bin is. This bin lift cost usually covers the cost of transport and disposal of the waste as a fixed fee for the service. Does your waste collection service supply an itemised invoice that includes weight or number of bin lifts? Is the organisation charged just for the bins presented for collection or for all the bins represented in the contract? Itemised invoices can help an organisation to monitor levels of waste or recycling, and servicing arrangements. Are you already paying for a waste or recycling service as part of local government rates? Local councils may provide waste or recycling services to the commercial sector. These services may be on a commercial fee-for-service basis or may be charged as part of the rates notice. If your organisation is charged to empty un-filled bins, discuss alternative options with the waste or recycling contractor. You could perhaps reduce the frequency of collection or alter the collection charge to be based on weight of bins. Measure your waste. Negotiate with the contractor to ensure you receive the data you need to track and report on waste and recycling efforts. Ask the waste or recycling contractor to provide on its invoices both the volume of waste or recycling collected (i.e. the number and size of bins collected), and the weight of waste and recycling collected. Refer to ZWSA s Waste and Recycling Collection Record (page 19). Contact the local council to determine if services are available for the organisation, or seek appropriate legal advice.

6 Questions Your Answers and What You Will Do Comments Is there a cancellation clause to allow for the early termination of the contract? Are there any penalties for cancelling the contract, and if so, what are they? Some contracts may allow for cancellation or early termination of the contract. Can you alter the services provided within the current contract? From your bin inspections, you may have identified ways to reduce costs, such as changing the frequency of collection, or changing the bin size. Some contracts may not allow a variation to the service agreement. Will the contract allow for shared waste services? In some situations, it may be more cost-effective to arrange shared waste and recycling services with adjacent organisations, or to tender for a single waste contractor to service a number of organisations. This may provide greater purchasing power with the waste contractor. Organisations should seek legal advice to determine the possible impact of the early termination of a waste contract. Use ZWSA s Waste and Recycling Bin Inspection Worksheets (page 10-13). Are there bins that could change collection frequency and / or size? Could you use additional recycling services? If the contract poses an issue, seek legal advice. Check with a legal advisor for further advice. Consider reading Zero Waste SA s Waste and Recycling Tender Guidelines. Does the contract include exclusive rights to the existing contractor? Some contracts may contain exclusivity clauses. This means any additional or new waste management services are to be undertaken by the existing waste collection service provider. This can be an issue, especially if other contractors are offering more suitable services. If this is an issue, talk to the contractor or seek appropriate legal advice.

7 Questions Your Answers and What You Will Do Comments What additional services can the waste service provider supply, if any, and what are the additional costs? Some waste or recycling contractors can provide a range of additional services, such as waste or recycling audits or assessments, and reporting, including information about the organisation s performance. Consider what, if any, additional services would be suitable either now, or in the future. Also consider whether the contractor has any conflict of interest in providing the additional service. Additional questions for recycling contracts Questions Your Answers and What You Will Do Comments What materials can be collected within the proposed service and are these adequate to meet the organisation s needs? Some collection services do not recycle a full suite of materials (e.g. they may accept glass and aluminium but not plastic). This may be due to where the recycled material is sent for reprocessing. Other recycling contractors may be able to provide alternative collections that cover a wider range of materials. Assess the service based on your particular needs including the: amount of recyclable materials produced, and if it is enough to justify a separate service for a particular recycling stream additional cost of extra services space available for extra bins. Consider recording information about other potential recycling streams on the Waste and Recycling Bin Inspection Worksheets (page 10-13).

8 Questions Your Answers and What You Will Do Comments What additional services can the waste service provider supply, if any, and what are the additional costs? Some waste or recycling contractors can provide a range of additional services, such as waste or recycling audits or assessments, and reporting, including information about the organisation s performance. Will the recycling contractor pay, or offset recycling service costs, for clean source separated recyclables, such as clean paper, cardboard, mixed metals, plastics or aluminium cans? Sometimes recycling contractors may pay or offset some of an organisation s collection costs when recycling specific commodity streams, although this depends on commodity values at the time. Consider asking the collection company to show your staff how the materials are treated (a tour of the collection company and subcontractor facilities) to encourage correct bin use. Use the Waste and Recycling Bin Inspection Worksheets (page 10-13) to note contamination. Useful recycling signage is free to download from the ZWSA website. Signage can help reduce contamination. Explore this opportunity with contractors in the local area. Find local contractors on Planet Ark s www. businessrecycling. com.au If your organisation wants to develop a tender for waste and recycling services, consider reading ZWSA s Waste and Recycling Tender Guidelines. This provides guidance on what to include in tender documentation, and includes useful templates.

9 Waste and recycling management tools Bin sizes tool Most bins are standard sizes and measured in litres or cubic meters. Standard domestic waste bins tend to be 120L or 240L. You need to know your bins capacities to calculate how much waste is generated. See ZWSA s Typical Bin Sizes (page 10). Waste and recycling bin inspection tool The first step towards improving waste management for any organisation is to identify the types of waste generated and to estimate the amount of each type. To assist, ZWSA developed the Waste and Recycling Bin Inspection Worksheets (page 12-13). There is no need to rummage in bins. The worksheets can be used during a quick visual inspection of waste and recycling bins. Consider repeating the inspection on different days of the week over a few weeks to gain a better estimate of your waste and recycling. If bins are different sizes, check the Typical Bin Sizes list and estimate the percentage full. The worksheets also have space for you to write notes. By noting down answers to the questions on the worksheet, you may be able to identify ways you can boost reuse and recycling rates to reduce the amount of material sent to landfill. If your organisation needs more detail, consult an experienced waste auditor about commissioning a waste audit or assessment. Alternatively, if your business does not currently measure waste, you may use this template as a way to estimate annual waste. Waste and recycling information and costs tool ZWSA has developed the Waste and Recycling Collection Record (page 19) as a tool both to help review contracts and to be included in tender requests so that you can collect comparable information from different companies. See also: Separate Excel spreadsheet, Solid Waste and Recycling Reporting template Separate document, Waste and Recycling Tender Guidelines (aimed at medium to large businesses) Recycling streams tool ZWSA has also developed a Guide to Recycling Streams for South Australian Organisations (page 14-18) to help organisations to identify items in their waste stream that could be recycled. Waste and recycling reporting tool ZWSA s Solid Waste and Recycling Reporting template can be used to record and report solid waste and recycling data so you can monitor and report achievements in waste management. Liquid waste should be tracked separately. To complete the template, you will need to review your organisation s waste and recycling invoice / billing data. If you have difficulty finding the information on invoices, consult your service provider and ask if the relevant data can be supplied. The aim is to fill in as much detail as possible.

10 Typical bin sizes Bin Sizes Approximate Dimensions (m) Height Width Depth How Full? Volume of Contents (L) 120 L - 0.12m 3 0.93 0.48 0.55 25% (¼) 30 50% (½) 60 75% (¾) 90 FULL 120 240 L - 0.24m 3 1.08 0.58 0.74 25% (¼) 60 50% (½) 120 75% (¾) 180 FULL 240 660 L - 0.66m 3 1.22 1.34 0.5-0.8 25% (¼) 115 50% (½) 330 75% (¾) 445 FULL 600 1100 L - 1.1m 3 1.48 1.36 1-1.2 25% (¼) 275 50% (½) 550 75% (¾) 825 FULL 1100 1500 L - 1.5m 3 1.2-1.3 2-2.4 1-1.3 25% (¼) 375 50% (½) 750 75% (¾) 1125 FULL 1500 3000 L - 3.0m 3 1.3-1.5 2-2.4 1.4-2.3 25% (¼) 750 50% (½) 1500 75% (¾) 2250 FULL 3000 4500 L - 4.5m 3 1.80 2.02 1.4-1.8 25% (¼) 1125 50% (½) 2250 75% (¾) 3375 FULL 4500

11 Bin inspection worksheet Go around to all the bins presented for collection on the day the collection truck is due. Note how full they are and what types of materials are in the bin/s. This works best just before bins are collected, so you may want to check truck times with the contractor. Also consider repeating the inspection on different days of the week over a few weeks to gain a better estimate of your waste and recycling. This can also make it easier to see different items in the bin (before they are covered with more waste materials). If bins are different sizes, check the Typical Bin Sizes (page 10) and estimate the percentage full. Make notes on the following: Are there any recyclable materials in the general waste bins, what type and roughly how much? Are there any obvious sources of contamination in recycling bins? This includes recyclable materials in plastic bags (which may not be recycled). Did you notice materials in any bin that could be re-used by your organisation or another organisation? If so, what are the materials and roughly how much is there? Are the bins labelled with signs that show / tell people what goes in each bin? If so, are the signs easy to read and in good condition? Where bins are only partially filled, could the frequency of collection be reduced?

12 GENERAL WASTE BIN INSPECTION WASTE SENT TO LANDFILL Date / Time Location Fullness (%) Bin Size e.g. Wed 6 July 2011, PM 75% 3m3 = 3000L Volume (Fullness x Bin Size) Notes / Comments 2250 L Lots of cardboard in bin could be recycled Total Volume of General

13 RECYCLING BIN INSPECTION Date / Time Bin Type / Location Fullness (%) Bin Size e.g. Wed 6 July 2011, PM 75% 3m3 = 3000L Volume (Fullness x Bin Size) Notes / Comments 2250 L Lots of cardboard in bin could be recycled Total Volume of Waste recycled

14 A guide to recycling streams for South Australian organisations The examples listed below reflect the types of materials collected by most service providers, and are a guide only. Ask your service provider exactly what can and cannot go into each bin, as this can vary between collectors. * Significant quantities refers to an amount that generally warrants an organisation to have a separate collection service for those materials. This will vary depending on the size and financial status of the organisation. ** Depending on the amount of a particular stream produced by an organisation, one or more of these services may be used (e.g. separate bins for paper and cardboard). If a business produces little paper or cardboard, a mixed recycling bin may be sufficient. Collection Service Examples of What s Included / Not Included INDUSTRY TYPE 4 indicates the materials collected are generally produced in significant* quantities and therefore a dedicated collection service should be considered Hospitality Retail - Clothing Retail Food and Grocery Retail - Other Education Manufacturing Office Settings White Paper** Paper- Mixed** Printed white paper only NOT coloured paper, magazines, newspapers or other materials All types of paper, including white, coloured, newspaper, magazines NOT cardboard or other materials 4 4 4 Newspaper** Newspapers only 4 4 Confidential Paper** Paper and Cardboard** Cardboard** Paper documents that should not be accessed by any other person / business Ask the service provider if coloured paper will be accepted All forms of paper and cardboard Ask the service provider if waxed cardboard will be accepted Cardboard (e.g. boxes and other cardboard packaging waste) Ask the service provider if waxed cardboard will be accepted 4 4 4 4 4 4 4 4 4

15 Collection Service Examples of What s Included / Not Included INDUSTRY TYPE 4 indicates the materials collected are generally produced in significant* quantities and therefore a dedicated collection service should be considered Hospitality Retail - Clothing Retail Food and Grocery Retail - Other Education Manufacturing Office Settings MIXED RECYCLABLES Mixed Recycling (co-mingled) Mixed Glass Mixed Metals Refundable Bottles and Cans (10c containers) Same as household recycling bins, such as clean (rinsed) glass, bottles, cans, cardboard, paper, plastic containers, newspapers NOT soft, stretchy plastics or wet materials (e.g. food waste) Clean bottles and jars, preferably unbroken Clean metals (free from resins and glues) All cans / bottles eligible for a 10c refund in SA Flavoured milk and fruit juice containers less than one litre also attract a 10c refund Make sure all containers are rinsed and lids removed 4 4 4 4 4 4 4 4 4 4 4 4 4

16 Collection Service Examples of What s Included / Not Included INDUSTRY TYPE 4 indicates the materials collected are generally produced in significant* quantities and therefore a dedicated collection service should be considered Hospitality Retail - Clothing Retail Food and Grocery Retail - Other Education Manufacturing Office Settings PLASTICS Plastic - Hard Plastic - Soft Clean plastic bottles and rigid plastic containers NOT soft plastics Ask the service provider if plastic strapping is accepted Any clean, soft, stretchy plastic such as cling wrap, plastic sheeting and plastic bags Some service providers may allow other forms of soft plastics such as food packaging Ask the service provider if other materials will be accepted 4 4 4 4 4 Plastic - Mixed All forms of clean plastic Ask the service provider if there are any plastic items that will not be accepted 4 4 ORGANIC Organic Food Waste All food items including meat and dairy, and other compostable products such as tissue and paper towel NOT food packaging (unwrap the food) 4 4 4 (large offices)

17 Collection Service Examples of What s Included / Not Included INDUSTRY TYPE 4 indicates the materials collected are generally produced in significant* quantities and therefore a dedicated collection service should be considered Hospitality Retail - Clothing Retail Food and Grocery Retail - Other Education Manufacturing Office Settings BUILDING MATERIALS Wood / Timber Aluminium Clean wood / timber (free of nails, resins and glues) Clean aluminium (free from resins, glues etc.) 4 4 PROBLEMATIC WASTES E-waste Printer and Toner Cartridges Mobile Phones Electronic waste (typically anything that requires a power cord) such as computers, monitors, mobile phones, printers, fax machines etc Ink and toner cartridges used in printers and fax machines All types of mobile phones Ask the collector if any other mobile phone components will be taken (e.g. chargers and batteries) 4 4 4 4 4 4 Fluorescent Light Tubes and Globes Unbroken fluorescent light tubes and compact fluorescent lamps (CFLs) Ask the service provider if standard (incandescent) light globes and halogen lamps, tubes or globes can also be collected 4 4 4 4 4 4 4

18 Collection Service Examples of What s Included / Not Included INDUSTRY TYPE 4 indicates the materials collected are generally produced in significant* quantities and therefore a dedicated collection service should be considered Hospitality Retail - Clothing Retail Food and Grocery Retail - Other Education Manufacturing Office Settings PROBLEMATIC WASTES cont Batteries Dry cell batteries used for equipment such as calculators, remote controls, clocks, watches, mobile phones, laptops If the business needs to dispose of lead-acid batteries (the type typically used to power vehicles), check with the collector if these are accepted 4 4 4

19 Waste and recycling collection record The frequency of reporting should be determined by your organisation before requesting the information. The following template may be used as part of a tender process or when negotiating reporting to specify the waste and recycling reporting requirements expected. Yellow highlighted text indicates areas that need to be specified by collection companies. (Example text is provided in grey.) Example costs have not been included, but should be requested. Information provided in this template (or a similar template) can be used to report an organisation s achievements in waste management. It can be easily adapted into Microsoft Excel format, such as Zero Waste SA s Solid Waste and Recycling Reporting Template, to keep a record of historical performance. The Waste Management Hierarchy (page 20) can help you to categorise the waste by disposal method. Waste / Recycling Collection Record Date / Timeframe (e.g. February 2014) Waste Stream (What is collected) Method of Disposal (Choose from categories listed in breakdown table below.) Weight (tonnes) Amount Costs ($) (Where costs are defined as separate components please clarify these.) Volume Component 1: Litres Cubic (Please specify.) Metres (m 3 ) Component 2: (Please specify.) e.g. General waste Landfill 0.45 3000 3 e.g. Paper and cardboard Recycled 0.30 3000 3 e.g. Mixed recycling Recycled 0.02 240 0.24 e.g. Food scraps Composted 0.41 960 0.96 TOTAL OF ALL MATERIALS 1.18 7200 7.2 Breakdown of Material Amounts and Costs Method of Disposal Tonnes Litres m 3 Cost Recycled 0.32 3240 3.24 Composted 0.41 960 0.96 Recovered (for energy) 0 0 0 Landfill 0.45 3000 3 Treated then Landfill 0 0 0 Other (please specify) 0 0 0 DIVERTED FROM LANDFILL 0.73 4200 4.2 SENT TO LANDFILL 0.45 3000 3 62% diverted from landfill 38% sent to landfill

20 The waste management hierarchy Most Preferable SUSTAINABILITY Least Preferable Treat Dispose Reuse Recycle Avoid Reduce Recover (including energy) The waste management hierarchy is an internationally accepted guide for prioritising waste management practices. For reporting purposes, categorise the waste stream according to its treatment. Zero Waste SA recommends using the hierarchy as a guide: First focus on primary recovery options such as avoid, reduce, reuse and recycle waste. Recover: If waste cannot be avoided, reduced, reused or recycled consider sending it for recovery instead of to landfill. Recovery uses the waste as a fuel source (burning waste to produce energy). Typically a small amount of waste is left after combustion, which is sent to landfill. Collection companies should report on this. Treat: Some waste streams need to be treated as they cannot be sent directly to landfill due to its risk of contamination (environmental harm), such as contaminated soil and motor oil. Collection companies should report against this category for waste streams that are sent for biological or chemical treatment, rather than being sent directly to landfill. Dispose: Collection companies should report against this category for waste streams sent directly to landfill, which is the least desirable option. Zero Waste SA recommends setting goals to reduce the amount of waste sent to landfill by adopting practices higher up the hierarchy for avoiding, reducing, reusing and recycling waste. Then focus on recovery of materials for the production of energy or fuel. Finally, as last resorts, treat and dispose to landfill. Avoid and Reduce: Where possible, organisations should aim to avoid creating waste. This is the ultimate goal in waste management practices. If waste cannot be avoided, aim to reduce the amount produced. Waste and recycling collection companies are not expected to report against these categories. Reuse: If waste cannot be avoided or reduced, think about other ways the product could be reused, either within the worksite or by other organisations (material scraps delivered to charities for rags, timber pallets to other companies for reuse, broken glass to the construction industry for reuse as road base and so on). Report against this category for waste streams where the product will be reused in its current or similar form by other organisations. Recycle: If waste cannot be avoided, reduced or reused, aim to recycle as much as possible. Collection companies can report on waste streams that are sent for recycling to create new products (paper and cardboard, metal, plastics, fluorescent tubes and lamps, batteries, printer and toner cartridges).

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