Staff Report: Yard and Garden Waste Contract
Request to authorize the continuation of a cost-sharing agreement with the Township of Esquimalt for yard waste drop-off services.
RECOMMENDATION:
THAT the Committee recommends that Council authorize staff to continue to cost share the Yard and Garden Waste contract with the Esquimalt Township until Dec 21, 2021.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
DIRECTOR OF FINANCE COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
The Town currently provides a drop off service to the residents for Lawn and Garden waste. That service is provided with a partnership agreement between the Township of Esquimalt and View Royal. The cost of the service is based on population and currently View Royal pays 37% of the costs of the contract. Recently a Request for Proposals (RFP) was initiated by the Township of Esquimalt and staff is seeking approval to continue in the current arrangement with Esquimalt.
BACKGROUND:
Residents are currently able to drop off yard and garden waste at 605 Canteen Road, located in Esquimalt, 7 days per week. That service is provided by Ellice Recycling. In addition, the Town provides an annual curbside pickup in the fall to supplement the drop off component.
PROJECT INFORMATION:
Both Esquimalt and View Royal met with Ellice Recycling to discuss the current contract that ends December 31, 2019. At that meeting Ellice requested that they be released from the contract as they were losing money providing the service. It was determined that Esquimalt would issue an RFP, and if the prices were higher than the current contract price, Ellice would pay the difference or continue to provide the service until the end of their current obligations. The RFP resulted in only one proposal submission. That proposal was submitted by Ellice Recycling. The submission resulted in an increase in cost, as well as a lower level of service. The new service would be reduced to 6 days per week, excluding Sundays. The change in price is listed below:
| Item | Current | 2020 | 2021 |
|---|---|---|---|
| Contract Monthly Cost | $4,407.32 | $6,261.82 | $6,383.55 |
| Facility Cost | $216.05 | $211.81 | $216.05 |
| Administration Fee | $231.17 | $323.68 | $329.98 |
| Monthly cost | $4,854.54 | $6,797.31 | $6,929.58 |
| Annual Cost | $58,255 | $81,568 | $83,155 |
The new cost to provide the service represents an increase of 40%. Ellice claims to be losing a substantial amount of money in providing the current service (see attachment). Part of the uncertainty is due to the lack of ability to control the amount of visits and tonnage that they are required to process on an annual bases. Below are the numbers since 2011:
| Year | Township Resident Visits | TVR Resident Visits | Tonnage Removed from Transfer Station |
|---|---|---|---|
| 2011 | 9,387 | 3,355 | 958 |
| 2012 | 15,559 | 5,614 | 2,157 |
| 2013 | 24,248 | 8,178 | 390 (error in submitted numbers) |
| 2014 | 28,454 | 9,467 | 2,013 |
| 2015 | 22,740 | 9,348 | 2,185 |
| 2016 | 23,595 | 10,528 | 2,268 |
| 2017 | 25,475 | 13,958 | 2,240 |
| 2018 | 17,780 | 7,695 | 1,746 |
BUDGET IMPLICATIONS:
The financial plan includes $66,690 (including the curbside pickup component) for the Lawn and Garden collection for 2020. If the extension of the agreement is approved, it would require an increase of approximately $19,900. This increase would be funded from taxation.
SUSTAINABILITY:
The past several years the Capital Regional District has reviewed the opportunities to co-mingle yard waste and food waste, however to date they have not been able to develop a program. Until that time the streams must remain separate. If the Town were to decide not to provide a yard and garden drop off service it is likely an increase in illegal dumping would occur. Staff could review alternatives to the current drop off service that would include:
- Increase curbside pickup frequency. Current cost is approximately $5,000 per collection.
- Provide a weekend drop off service. Estimated costs would be $1500 per event.
- Create an educational program outlining alternative sustainable solutions in utilizing yard and garden waste. Estimated costs $10,000
ALTERNATIVE RECOMMENDATION:
THAT the Committee recommends that Council authorize staff to continue to cost share the Yard and Garden Waste contract with the Esquimalt.
AND THAT the committee recommend to Council to direct staff to create a report outlining alternative solutions to the cost sharing agreement with Esquimalt Township.
RECOMMENDATION:
THAT the Committee recommends that Council authorize staff to continue to cost share the Yard and Garden Waste contract with the Esquimalt Township until Dec 21, 2021.
SUBMITTED BY:
John Rosenberg, Director of Engineering
REVIEWED BY:
Kim Anema, Chief Administrative Officer
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