Committee Report REGIONAL DISTRICT OF CENTRAL KOOTENAY
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REGIONAL DISTRICT OF CENTRAL KOOTENAY Committee Report Date of Report: December 2, 2019 Date & Type of Meeting: December 11, 2019 Joint Resource Recovery Committee Author: Travis Barrington, Resource Recovery Technician Subject: RECYCLE BC DEPOT TRANSITION UPDATE File: 12-6230-20 SECTION 1: EXECUTIVE SUMMARY The purpose of this report is to provide an update to the Joint Resource Recovery Committee on the status of the transition of recycling depot service to the Recycle BC (RBC) program. SECTION 2: BACKGROUND / ANALYSIS The RDCK signed a Depot Statement of Work and a Master Services Agreement with Recycle BC in June 2019, launch of recycling depot service has been set to begin in March 2020. Phase one depots will be at Ootischenia Landfill, Crescent Valley Hall, Grohman Narrows Transfer Station, Nelson Lakeside, Creston Landfill and the Creston Car Wash on Helen Street. Work is progressing to prepare depots for RBC and promote the new service to residents. The remaining depots in the East and Central Sub-Regions are planned to launch in the next phase through May and June followed by those in the West Sub-Region in July. Work and planning for the transition is proceeding in the following areas: Recycle BC’s Post-Collection Partner Green by Nature (GBN) is RBC’s designated service provider, however, in November, RBC announced that it reached an agreement with Canada Fibers Ltd. (CFL) to assume the role of post-collection partner. This role provides hauling, processing and marketing of all materials collected in RBC’s depot network and curbside collection programs. In the RDCK this organization or a subcontractor will service all core depots. CFL is owned by Green for Life Environmental (GFL) which in turn owns several smaller haulers that operate in the Regional District of East Kootenay and the Regional District of Kootenay Boundary. These haulers may service the RDCK’s core depots but this has not been confirmed. RBC expects CFL to assume all roles of the post-collection partner in summer 2020 after the current agreement with GBN expires. Until then GBN will provide hauling, processing and marketing services for already established RBC collectors. GBN has indicated that they will not commit resources to provide post-collection services in the RDCK for the short transition period between the launch of depots in the region and the start of CFL’s service agreement. Staff have discussed the following options with RBC regarding how the change of service providers will affect the launch of the RDCK’s depots: 1. GBN Provides Initial Service at RDCK Launch Depots Until CFL’s Agreement Begins GBN is very unlikely to service RDCK recycling depots when they launch with RBC in spring 2020. RBC may press GBN into honouring their current service agreement and force GBN to service RDCK depots directly or through a hauling subcontractor for the first two to three months of
Recycle BC – Depot Transition Update Page 2 December 11, 2019 operation. In this scenario only the first launch depots would begin service with GBN, second and third phase depots would launch directly with CFL. 2. CFL Takes on Service at RDCK Depots Ahead of the Service Agreement Term Should GBN opt-out of their agreement with RBC, service at RDCK depots could launch with CFL ahead of their official start date. This option is still being discussed with staff at RBC. 3. RBC Arranges Contractors to Service RDCK Depots Ahead of Transition to Service by CFL If no agreement can be made for GBN or CFL to service the RDCK’s launch depots then it will fall on RBC to arrange a temporary service provider until CFL’s service agreement begins. RBC staff are developing plans to provide this service should it be necessary. 4. Delay Launch of Depots Until CFL’s Service Term Begins CFL’s service term will begin in May 2020 at the earliest; depot launch could be delayed until this time. Current recycling services would need to be extended for several additional months at greater cost to accommodate this schedule. RBC has pledged that changing service providers will not affect how depots collect recycling. Staff are working with RBC and their post-collection partner as sites are developed to ensure that collection infrastructure and layouts are compatible with their collection equipment. SeaCan Order and Depot Infrastructure The contract for SeaCan procurement was awarded to Secure-Rite Mobile storage and an order for modified containers was completed on November 24. Delivery of completed containers is expected to begin in late February and early March 2020 to coincide with the launch of the first six depot sites. RBC has confirmed that these containers will remain compatible with CFL’s collection and hauling. Containers were ordered to provide collection volumes equivalent to current depot infrastructure. At many sites this assumed the provision of roll-off bins to collect high-volume material categories (paper and containers) from GBN as part of their role as post-collection partner. Representatives from GBN and their potential subcontractor in the RDCK confirmed that they would provide roll-offs for sites that require at least once-a-week hauling. This arrangement has not been confirmed with RBC and CFL. RBC staff have suggested that roll-offs will be provided at sites once they demonstrate sufficient collection volumes. Extra SeaCans could initially be located at launch depots to accept these additional volumes, then moved to other depots as needed and roll-offs are provided. This would add extra transportation costs for containers and staff are negotiating with RBC to provide roll-offs at high-volume sites in time for launch. Satellite Hauling Material hauling from satellite depots will not be provided by RBC; an RDCK contractor will transport recyclables from satellites to the nearest core depot or consolidation facility. A Request for Proposals (RFP) for this service will be issued shortly pending board approval. Total estimated costs for satellite
Recycle BC – Depot Transition Update Page 3 December 11, 2019 depot hauling are approximately $168,000 in 2020 and $240,000 annually across all sub-regions if depot transition follows the expected timeline. Many satellite depots are located on route between core locations. It is possible that RBC’s post- collection partner will be able to efficiently service these satellites in the course of hauling materials from core locations. This arrangement has been successfully implemented in several other regional districts in the province. Industrial, Commercial and Institutional Recycling Collection Industrial, Commercial and Institutional (ICI) recycling is not permitted for collection co-mingled with residential materials at RBC depots. Staff were previously directed to develop an ICI recycling program for old corrugated cardboard (OCC) only at selected depot locations, shown in Table 1 below, assumed to receive significant ICI volumes. Table 1: ICI Depot Locations by SubRegion West SR Central SR East SR Ootischenia Nelson Lakeside Creston Car Wash Crescent Valley Salmo New Denver Kaslo Nakusp Initial estimates assumed collection at the busiest sites (Ootischenia, Nelson and Creston) in 40-yard roll- off bins and six-yard front-load bins employed at the remaining sites as needed. An RFP for this service is being developed and proponents will be asked to develop the most efficient method of collecting and marketing ICI OCC. Depot Staffing Depot hours of operation for depots were presented at a previous Committee meeting. Recycling depots located at RDCK facilities will have opening hours that match the landfill or transfer station. Site attendants will be allotted extra working hours to perform recycling related tasks. At high-volume sites extra shifts will be added to supervise recycling areas. The best way of distributing these shifts and developing new positions is being determined with RDCK Human Resources. Job descriptions and posting will be complete in early 2020. Management at the Creston Car Wash has expressed a desire to have recycling positions on-site be filled by RDCK staff or contractors to avoid potential conflict between their staff and recycling users. This practice should be implemented at all depots hosted by businesses or other organizations. Host agreements for these sites shall be modified to allow RDCK staff or contractors to access the hosts’ washroom facilities. Crescent Valley Hall is another example of this arrangement. At the Burton, Edgewood and Yahk transfer stations attendant duties are handled by a contractor to the RDCK. These same contractors will perform recycling supervision duties when RBC service begins. Budget estimates include funds for these expanded duties; contract negotiations may be required.
Recycle BC – Depot Transition Update Page 4 December 11, 2019 Recycle BC Communications and Education Staff are developing a communications plan to promote the transition to RBC depot service. Increased and improved web content through the Waste Wizard app is a key piece of planned RBC promotion. The app will consolidate local information regarding accepted materials, hours of operation and special events in a convenient place and allow quicker updates to recycling information. Further planned updates to the RDCK website include a frequently asked questions page for the transition and social media updates using RBC’s seasonal content. The Education and Administration Top-Up fund provided by RBC could also be employed to create video content to promote the RBC launch and new printed media to ensure all RDCK residents can access the new information. Potential Delays to Launch and Transition Delivery of SeaCans for MegaBag storage is on schedule to occur throughout March 2020. Placement of the containers and removal of currently employed bins must be arranged with Waste Management and Secure-Rite. Launch of RBC service at the phase one depots will likely occur in stages throughout the month of March and not on a single date. Delays to RBC transition may occur if staff cannot confirm arrangements with RBC and their designated hauler soon as this may impact planned site works and acquisition of infrastructure (stairs) to accompany roll-off containers. RBC has confirmed there will be no penalty to the RDCK or themselves if launch of service is delayed. SECTION 3: DETAILED ANALYSIS a. Financial Considerations – Cost and Resource Allocations: Included in Financial Plan: ☒ YES ☐ NO Financial Plan Amendment: ☐ YES ☒ NO Debt Bylaw Required: ☐ YES ☒ NO Public/Gov’t Approvals req’d: ☐ YES ☒ NO 1. SeaCan Procurement and Depot Site Preparation Total cost of SeaCan procurement through Secure-Rite was originally reported to cost up to $441,890, after completion of the order the total value was $444,317.50. This cost will be funded with a deposit in 2019 and the remainder in 2020. Additional costs will be required in 2020 for crane services to place containers at sites and will vary based on equipment available and operator driving and site time. An average of $1,000 per site is currently estimated. Provision of roll-off containers at core depots is the hauler’s responsibility, for each expected roll-off $12,000 was budgeted for site preparation and pouring concrete slabs, should they be necessary. Each set of two roll-offs is assumed to receive a set of stairs between them, valued at $10,000. 2. Satellite Hauling and ICI Recycling Service Hauling recyclables collected at satellite depots will be the responsibility of the RDCK. Costs for this service were estimated based on an hourly rate of $120 for truck and driver, round trip driving times between each satellite and its nearest core, handling times at each depot and the frequency that each depot is currently serviced. Costs to provide collection of ICI OCC at select locations were based on estimates to provide either roll-off bins at busy sites or front load bins at lower-traffic locations. The total cost will vary with volume collected and estimates provided in this report assume a high ICI
Recycle BC – Depot Transition Update Page 5 December 11, 2019 collection rate (up to 25% of currently received recycling). Table two below shows the estimated costs for both of these programs in 2020 provided RBC depot service begins in March as planned. Table 2: Estimated Satellite Hauling and ICI Recycling Service Costs in 2020 West SR Central SR East SR Satellite Hauling $ 23,478.00 $ 90,816.00 $ 52,632.00 ICI Recycling Service $ 55,000.00 $ 125,000.00 $ 59,000.00 3. Communications and Education Recycle BC will provide $40,610 in annual Resident Education and Service Administration top up funding, transferred when depot service commences. This amount will provide funding for the newly proposed web as well as new promotional materials, web content and other advertising. This funding will be provided every year the RDCK operates RBC depots and will adjusted based on the number of households in the district that receive their recycling services solely via depot. The total contribution will decrease should new areas begin curbside collection. 4. Depot Staffing and Leases All RBC depots must be supervised when open for collection. Hours of operation have been set for each depot and staff costs have been estimated to provide monitoring during those hours. Staff costs for both RDCK-hosted depots and those hosted elsewhere have been estimated at $25 / hour to provide for wages and additional expenses. In other regional districts some depots receive minimal supervision and staff satisfy recycling duties with periodic check-ins but are still responsible for daily open and close procedures. This practice should be considered if contamination and dumping issues are not too severe. Lease agreements at depots hosted at non-RDCK sites must be renegotiated to account for the added requirements of the RBC program. Estimates in Table three below include a 10% increase in current lease costs and are for the entire year of 2020, staff costs assume that depot service will transition as planned starting in March. Table 3: Estimated Staff and Depot Lease Costs in 2020 West SR Central SR East SR Total Depot Staff $ 136,955.00 $ 187,910.00 $ 83,445.80 Depot Property Leases $ 11,160.00 $ 13,200.00 $ 30,600.00 5. Depot Servicing Waste bins could be provided at depots with no current access to garbage disposal to allow recycling staff to remove contamination from the site. This may be especially useful during the first few months of transition as users become familiar with the new service. Waste service could be incorporated into satellite hauling agreements at some sites or bins provided by a separate contractor. Bin service is estimated at approximately $400 / month for each six-yard front load bin.
Recycle BC – Depot Transition Update Page 6 December 11, 2019 Waste Management currently provides snow removal at the following recycling areas as part of their service agreement: Crescent Valley Nakusp Landfill Salmo Creston Landfill New Denver Silverton Grohman Narrows Transfer Station Ootischenia Landfill Slocan Transfer Station Kaslo Riondel Winlaw Once recycling service transitions to RBC at these locations snow removal will become the responsibility of the RDCK. Snow removal agreements are in place at all RDCK facilities and the recycling areas can be added to those agreements after Waste Management service concludes. New agreements will be required for the depots not located at RDCK facilities. Depots not listed above have ongoing agreements for snow removal with the depot host or another contractor. Since transition to RBC will not occur until the spring it is expected that 2020 snow removal costs for these new locations will be significantly lower than usual annual costs. Table four below shows estimated 2020 recycling depot snow removal costs that will be new expenses for the RDCK based on recent contractor quotes per site visit at six visits per site in 2020. Table 4: Estimated Added Snow Removal Costs for Recycle BC Depots in 2020 West SR Central SR East SR $ 5,442.00 $ 5,850.00 $ - Costs are not included in the table above for snow removal at the Ootsichenia, Nakusp and Creston Landfills. Snow removal service is included in the current operations agreements for these sites for all areas of the site except for recycling. This service will be added to each site agreement and price negotiated with each contactor. All costs noted above are included in the appropriate sub-regional Services (S186, S187 and S188) in the draft 2020 Financial Plan. b. Legislative Considerations (Applicable Policies and/or Bylaws): Recycle BC is responsible for the collection and management of Packaging and Printed Paper (PPP) from residential sources operating under the Recycling Regulation. To fulfill this obligation RBC provides financial incentives to recycling collectors and funds a portion of the overall costs associated with collecting, hauling, processing and marketing residential PPP in British Columbia. PPP from commercial sources is not including in the Regulation as a material requiring stewardship. Unless it is added to the Regulation there is no obligation for RBC or another steward to manage ICI PPP. c. Environmental Considerations: Depot recycling with RBC will expand the list of accepted items to include Styrofoam, multi-laminate and flexible plastic packaging. Expanding and even maintaining the current list of accepted items with an independent recycling program would be difficult. High levels of contamination are common in unsupervised recycling programs and lead to more recyclables disposed of in landfills.
Recycle BC – Depot Transition Update Page 7 December 11, 2019 d. Social Considerations: Many RDCK residents have expressed a desire to recycle a broader range of materials and to have a recycling program that is consistent with curbside programs within the district and depot programs in other areas of the province. Contamination and illegal dumping at unsupervised depots is also a common concern from residents. Losing 24/7 access at some depots may impact some users who normally recycle early in the morning or in the evening. e. Economic Considerations: Satellite hauling and ICI recycling contracts will provide opportunities for local businesses to bid on services that will be established as part of the RBC transition. f. Communication Considerations: Increased education and promotion of the recycling program will be essential to reduce contamination and assist successful transition to RBC service. New funding should allow the RDCK to create new and meaningful content for residents. g. Staffing/Departmental Workplan Considerations: This project is the primary focus of the Resource Recovery Technician and greater involvement from Communications, Project Management and Human Resources staff will be required to complete the transition to RBC recycling. h. Board Strategic Plan/Priorities Considerations: Transitioning to the RBC depot recycling program aligns with the Boards’ strategic priority regarding waste management and alternatives. SECTION 4: OPTIONS & PROS / CONS Option 1: The Board directs staff to develop and issue RFPs for hauling recyclable materials from satellite depots and for the collection, transportation and marketing of ICI OCC from selected recycling depots. Pros: • Maintain schedule for transition to Recycle BC services in spring 2020 • More time to review proposals and engage with potential haulers Cons: • Uncertainty around designated hauler in RDCK; staff unable to engage directly Option 2: The Board directs staff to delay issuing RFPs for hauling recyclable materials from satellite depots and the collection, transportation and marketing of ICI OCC until staff can confirm details of service provider transition with RBC and CFL. Pros: • More information to make decisions regarding ICI collection methods and infrastructure
Recycle BC – Depot Transition Update Page 8 December 11, 2019 Cons: • Likely to cause delay to launch of satellite depot service and ICI collection SECTION 5: RECOMMENDATION(S) RECOMMENDATION #1: That the Board direct Staff to develop and issue a Request For Proposal for collecting and transporting recyclable materials collected at satellite depot locations to the nearest core depot or consolidation facility. RECOMMENDATION #2: That the Board direct Staff to develop and issue a Request for Proposal for the collection, transportation and marketing of Industrial, Commercial and Institutional old corrugated cardboard from the Nelson, Ootischenia, Creston, Crescent Valley, New Denver, Nakusp, Kaslo and Salmo depot locations. Respectfully submitted, Signature: Name: Travis Barrington, Resource Recovery Technician CONCURRENCE Initials: Resource Recovery Manager General Manager of Environmental Services ATTACHMENTS: None.
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