Report : OPS-19-003

Operations
Telephone (905) 468-3266
Facsimile (905) 468-2959

1593 Four Mile Creek Road
P.O. Box 190
Virgil, Ontario
L0S 1T0

		Submitted on:	January 17, 2019
Report:	OPS-19-003

Report To:	Operations Advisory Committee
Subject:	Region of Niagara 2020 Waste Collection Contract - Proposed Changes and Niagara-on-the-Lake Enhanced Collection Service

1. RECOMMENDATION
It is respectfully recommended:

1.1 that Council receive this report;
1.2 that the recommendations approved by the Niagara Region included within this report be endorsed, except for the elimination of scrap metal pick up;
1.3 that the Niagara Region propose an alternative service delivery for scrap metal pick up;
1.4 that Council support the recommendations regarding the enhanced system put forth by the Niagara-on-the-Lake Chamber of Commerce regarding the businesses in the Heritage District:

a) change the pick up time from 9:00 a.m. to 10:00 a.m.

b) do not discontinue the disposal of appliances and scrap metal curbside;

c) there should be consideration of pooling limits for all businesses;
d) retain the current enhancement services provided

2. PURPOSE / PROPOSAL
The Region of Niagara oversees all aspects of Waste Management for the Local Area Municipalities (LAM).

This includes, but is not limited to, curbside collection of waste, recycling and organics collection as well we the disposal of these materials (Landfill sites, household hazard waste, recycling facility and organic processing locations).

The annual cost for the Region's Waste Management is charged back to the LAM's based on the municipality's percentage of the total Regional households. For Niagara-on-the-Lake, the 2018 waste management charge was $1,479,607.00.

3. BACKGROUND
At their meeting of January 8, 2019 the Regions Public Works Committee approved Report PW 3-2019, as amended, and approved the following base level service options;

1. That, based on the results of the stakeholder engagement process, the Request for Proposals for Niagara Region's next garbage, recycling and organics collection RFP
BE APPROVED to be issued with the following, subject to final comments from Local Area Municipalities:

a. Pricing for the following garbage collection frequency options:

i. Every-other-week (EOW) garbage collection for all residential properties and for those Industrial, Commercial &,Institutional (IC&I) and Mixed-Use (MU) properties
located outside Designated Business Areas (DBAs), as a base service (weekly recycling and organics to continue, and current garbage container (bag/can) limits would double for affected sectors, on an EOW basis); and,

ii. Status quo-weekly base garbage collection service

b. Establishment of a four (4) item limit per residential unit, per collection, for large item collection at Low-Density Residential (LDR) properties, as base service;

c. Discontinuation and continuation of appliances and scrap metal curbside collection at LDR properties, as a base service;

d. Change the weekly garbage container (bag/can) limits for Industrial, Commercial & Institutional (IC&I) and Mixed-Use (MU) properties located inside Designated Business Areas (DBAs) from seven (7) containers to four (4) containers per property, as a base service;

e. Change the weekly garbage container limit for MU properties located outside DBAs from six (6) containers to four (4) containers per property, as a base service;

f. Mandatory use of clear garbage bags for garbage collection;

2. The Region is preparing for a new collection contract that will go out for RFP in 2019, and be awarded in 2020 with a start time in 2021. Prior to the approval of the new contract and its proposed changes, the Region has been consulting with Niagara residents, businesses, the local municipalities and other stakeholders.

As noted above, final comments by the local municipalities to the Region are required by February 20, 2019 in order to achieve their proposed tender award scheduled for 2020.

4. DISCUSSION / ANALYSIS

1. Proposed Options for 2021 Collection Contract

The above approved base service level options being considered by the Niagara Region include:

Approved

Every-other week (EOW) garbage collection for all residential properties and for Industrial, Commercial and Institutional (IC&I) and Mixed-Use (MU) properties (i.e: IC&I with a residential component) located outside Designated Business Areas (DBA), or the Downtown Improvement Area (DIA) for the Town of Niagara-on-the-Lake. Current garbage container limits would double for all properties, on an EOW basis. The recycling and organic bin collection for all properties shall remain weekly collection as a base service.

Weekly garbage, recycling and organics collection would remain for all IC&I and MU properties located inside DBA's as a base service.

Many Ontario municipalities (i.e.: Barrie, Durham, Halton, Markham, Ottawa, Toronto, Vaughn, Peel and Waterloo) already provide EOW garbage collection.

The benefits of EOW garbage collection include:

Increased participation/capture rates in diversion programs (i.e.: recycling and organics) to extend lifespan of Niagara Region's landfill site. Diversion rates increased between 6% and 16% in those municipalities that implemented EOW garbage collection.
Potential cost avoidance. Based on the Region of Waterloo's implementation of
EOW garbage collection in 2017, their annual contract savings were approximately $1.5 million.

ii) Status Quo - weekly base garbage collection service.

Approved

The establishment of a four (4) item limit per residential unit, per collection, for large item collection at Low-Density Residential (LDR) properties (i.e.: 1 to 6 residential units) as a base service. Currently, there is no limit on the number of large items that can be set out per residential unit, per collection. The proposed four-item limit will meet the set-out needs, as most residents set out an average of less than two (2) items per collection.

Approved

Mandatory use of clear bags for garbage with optional opaque privacy bag (i.e.: grocery bag) within the clear bag for all sectors.

The intent of this change is to improve source separation (and waste diversion rates) and increase enforcement/awareness of what is placed inside the garbage bag by allowing the collection person to identify recycling, organics and unacceptable materials in the bag and then not picking up that bag.

The Town's DIA has objected this change.

However, recent concerns about plastic bags are seen by the Region as beneficial to make a positive step to take plastic bags out of our waste stream.

Approved

Discontinue appliances and scrap metal curbside collection. These items can be recycled, at no cost, at Niagara Region's Drop-off Depots, or at a scrap metal dealer. Only 6% of Niagara's LDR properties are currently using the curbside collection of appliances and scrap metal. Many of these items are scavenged before the Region's collection contractor is able to collect them.

e. Change the garbage container limits for IC&I and MU properties located inside DBA's from seven (7) bags/containers to four (4) bags/containers per property, as a base service. This would standardize the base collection limits across similar sectors as well as increase participation in the Region's diversion programs. The average number of garbage containers placed out per week at IC*I and MU properties inside DBA's across the region is two (2).

For Niagara-on-the-Lake (enhanced collection area) this includes Queen St. Businesses and surrounding areas. The Town currently pays approximately $76,603.00 per year for the DIA to have a second 12 bag/container pick-up day per week and for the additional five (5) bags for the first pick-up day, as well as an additional recycling collection day. The DIA indicated to the Region that they do not endorse this bag/container reduction per pick-up day.

The Regions historic audits for the Niagara-on-the-Lake DIA " Appendix A" indicates the average number of garbage containers set out in the DIA is less than three (3) bags per pick-up day verses the 12 bags allowed. As the Town pays the cost of 12 garbage bags/containers for each day (even if not used) and the Regions audit average is less than three (3), it would potentially be cost effective for the Town to consider keeping the enhanced twice-a-week collection, but reducing the number of bags/containers from 24 per week (12 per collection day) to 12 per week (six (6) per collection day). This would reduce the Town's cost from 17 extra charge bags per week to eight (8) extra charge bags/containers per week.

f. Change the weekly garbage container limits for MU properties located outside the DBAs from six (6) to four (4), or eight (8) containers under EOW garbage collection. This would standardize the base collection limits across similar sectors, as well as increase participation in the Region's diversion programs. The average number of garbage containers placed out per week at MU properties outside DBAs across the region is two (2).

Based on discussion with the Region, changes three (3) and five (5) to seven (7) inclusive, are based on audits of actual numbers of large items/appliances or bags/containers actually put out and should have little to no impact to users, but will provide a reduction in the quantities to be tendered in the 2021 contract.

The DIA has requested that the enhanced Thursday pick-up be changed to Friday in the new contract, which is highly recommended, as this will provide more balanced periods between pick-ups (from two and five to three and four days).

The Town also includes in the enhanced service for our on-street litter and recycling bins pick-up and disposal by the Region's garbage contractor, which is very economical, as the contractor includes them in his normal pick-up route when
passes by them. In the current contract, the Town pays about $7,000 per year for this collection and disposal work.

2. The Chamber of Commerce has been in contact with the Region regarding the Regional waste contract. The Chamber has concerns about waste metal pick-up. They have expressed their desire to retain the current enhancement services, with a start time of 10am, not 9am, to dissuade merchants from placing garbage on the street the night before. The Chamber asked for consideration of pooling of limits. They also inquired as to the price and if it would increase. The Region has not provided the 2019 or future rate.

The merchants pay for the basic waste charge ($172.81 for 2018 rate) plus enhanced service ($814.93 in 2018) a total of 94 businesses are paying for this.

5. STRATEGIC PLAN
n/a

6. OPTIONS
n/a

7. FINANCIAL IMPLICATIONS
Overall, if accepted by Regional Council, the proposed base service changes will help reduce Waste Management costs in the new collection tender to the LAMs and our taxpayers.

Other municipalities that implemented EOW garbage collection realized annual contract savings between $200,000 and $12 million, depending on the size of their contract and other contract changes that were implemented. For example, Region of Waterloo's annual contract savings by switching over to EOW garbage collection was $1.5 million.

The 2018 enhanced Collection Services to the Town were $18,000 plus litter bins collection of $7,000. Additional costs would be incurred for the new enhanced service for bulky goods collection to those households in MR buildings with seven (7) or more residential units and MU properties with one (1) or more residential unit, that receive the Region's curbside base garbage collection or that receive the Region's enhanced front end garbage collection service.

We should assume that the 2021 Waste Collection contract will see an overall increased cost due to inflation and wages; however, the proposed base service recommendations listed below will help reduce this increase

8. COMMUNICATIONS
N/A

9. CONCLUSION
It is recommended that the following Regional proposed collection changes to the 2021 collection contract be approved by the Town of Niagara-on-the-Lake Council:

1. That every-other-week (EOW) garbage collection be implemented for all residential properties and for those IC&I and MU properties located outside the DIA area as a base service. Current garbage container limits would double for all properties, on an EOW basis. The recycling and organic bin collection for all properties shall remain weekly collection. Those IC&I and MU properties located inside the DIA areas would continue to receive weekly garbage, recycling and organics collection as a base service.

2. That mandatory use of clear bags be approved.

3. That the establishment of a four (4) item limit per residential unit, per collection, for large item collection at LOR properties as a base service

4. That the provision of a new enhanced service for large item collection (parallel to the service approved for LOR properties) to those households in MR buildings with seven (7) or more residential units and MU properties with one (1) or more residential unit, that receive the Region's base curbside or enhanced front-end garbage collection service.

5. That the number of garbage bags/containers for IC&I and MU properties inside the DIA area be reduced from seven (7) to four (4) per week, as a base service.

6. That the Town's enhanced service and extra payment for collection inside the DIA area remain at two collection days per week, but changed to Tuesdays and Fridays and that the number of garbage bags/containers be reduced from 12 per pick-up day to six (6) per pick-up day (12 per week), resulting in the Town's enhanced service payment being reduced from 17 bags/containers per week to eight (8).

7. That the number of garbage bags/containers for MU properties outside the DIA area be reduced from six (6) to four (4) per week, or eight (8) containers under EOW garbage collection, as a base service.

Respectfully submitted,

Jeff Vyse
Manager of Public Works

Sheldon Randall Holly Dowd
Director of Operations Chief Administrative Officer

ATTACHMENTS
Town of Niagara-on-the-Lake Survey Results
Town of Niagara on the Lake Survey Results.pdf

Niagara Region Presentation
PW 3-2019 Presentation - Proposed Collection Service Level.pdf PW 3-2019 Presentation - Service Options Consultation Results.pdf
Proposed Base Services for Next Collection Contract
PW 3-2019 Proposed Base Services for Next Collection Contract.pdf
Comparison of Current vs. Proposed Base Collection Services
PWC3-2019 Appendix 1.pdf
Comparison of Current vs. Previous Enhanced Collection Services
PWC3-2019 Appendix 2.pdf
Rationale for Proposed Collection Service Options for Next Contract
PWC3-2019 Appendix 3.pdf
Stakeholder Comments on Proposed Base Collection Options
PWC3-2019 Appendix 4.pdf
Stakeholder Consultation and Engagement Process
PWC3-2019 Appendix 5.pdf
Telephone and On-line Survey Results for the Niagara Region
PWC3-2019 Appendix 8.pdf

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