as '~A COUNCIL REPORT ABBOTSFORD Report No. ENG 030-2015 EXECUTIVE COMMITTEE Date: April 30, 2015 File No:5360-30-55 To: From: Subject: Mayor and Council Barry Azevedo, Solid Waste and Environmental Engineering Manager Garbage Disposal Update RECOMMENDATIONS 1. THAT Council authorize staff to notify First Class Waste Services Inc. ("First Class") that starting November 1, 2015, the City agrees to disposal of its curbside garbage in accordance with the best value rate in the First Class contract; 2. THAT Council authorize staff to notify First Class that the following landfills are acceptable to the City for disposal of the City's curbside garbage under the contract, subject to the respective landfill owner's agreement: • • • • • Cache Creek Extension Landfill, Cache Creek, BC; Chilliwack Landfill, Chilliwack, BC; Columbia Ridge Landfill, Oregon State, US; Roosevelt Landfill, Washington State, US; and Wenatchee Landfill, Washington State, US; and 3. THAT Council authorize staff to notify First Class that they may take the City's curbside garbage to any of the landfills that the City has confirmed are acceptable, with the amount directed to any of the City-accepted landfills at First Class' discretion, subject to the respective landfill owner's agreement. SUMMARY OF THE ISSUE The City contracted First Class to provide a garbage transfer station service for garbage collected through the City's curbside collection program starting November 1, 2015. The contract with First Class provides several landfill disposal options for the City. The City needs to choose an option for the start of the contract. Report No. ENG 030 -2015 Page 2 of 3 BACKGROUND Council awarded a contract to First Class at Regular Council on October 6, 2014 and approved sending Metro Vancouver a one-year advanced notice of termination of the Matsqui Transfer Station Agreement effective November 1, 2015 (Resolution R302-2014). The contract with First Class provides pricing for four hauling and/or disposal options: • • • • Roosevelt Landfill, Republic Services Inc. (this is the "best value rate" in the contract which is .the lowest tipping fee price that First Class provided in their proposal for tipping at their transfer station, and is based on disposal at the Roosevelt Landfill but allows First Class to dispose of its garbage at any other landfill acceptable to the City for this rate); Cache Creek Landfill, Belkorp Environmental Services Inc. ("Belkorp"); Chilliwack Landfill, City of Chilliwack; and Mission Landfill, District of Mission. At the time of the October 6, 2014 Council meeting, the City only had confirmation of availability and firm tipping fee information for the Roosevelt Landfill option. A decision on the preferred landfill option and costs was postponed to allow the other landfill owners to provide confirmation of landfill availability and tipping fees. DISCUSSION Chilliwack, Mission and Belkorp have not yet provided confirmation of landfill availability or applicable tipping fees for the City's garbage; therefore, the only option available is the First Class best value option based on the Roosevelt Landfill. First Class currently disposes of its garbage from its transfer station at the following landfills: • • • • Chilliwack Landfill, Chilliwack, BC (owned by City of Chilliwack); Columbia Ridge Landfill, Oregon State, US (owned by Waste Management Inc.); Roosevelt Landfill, Washington State, US (owned by Republic Services Inc.); and Wenatchee Landfill, Washington State, US (owned by Waste Management Inc.). First Class uses multiple disposal locations to ensure reliability of service and best price. In addition, First Class advised they would take garbage to the following landfills if available at a competitive price: • • Cache Creek Extension Landfill, Cache Creek, BC, (owned by Belkorp ); and Mission Landfill, Mission, BC (owned by District of Mission). All six of the above landfills are considered acceptable from an environmental and risk perspective as discussed in Attachment 1; however, the District of Mission has advised they do not want to be considered as a potential disposal site for the City's curbside garbage. Staff recommend providing written confirmation to First Class that: 1) The City agrees to dispose of its curbside garbage starting November 1, 2015, in accordance with the best value rate in the contract, which is the lowest price tipping fee available to the City as noted earlier. The tipping fee schedule in the contract is for a set Report No. ENG 030 -2015 Page 3 of 3 rate that increases by a set inflation rate each year, therefore fluctuations in the exchange rate and landfill tipping fees are at the risk of the contractor; 2) The Cache Creek Extension Landfill, Chilliwack Landfill, Columbia Ridge Landfill, Roosevelt Landfill and Wenatchee Landfill, are acceptable to the City for disposal of the City's curbside garbage; and 3) The actual tonnages sent to any specific City-accepted landfills, are at the discretion of First Class, subject to agreement of the respective landfill owners. The contract requires monthly reporting of the final disposal location for each month's garbage. Staff will monitor final disposal locations to ensure compliance with City's notice of acceptable landfills. If in the future, Chilliwack, Mission or Belkorp provide confirmation of availability of their respective landfills and associated tipping fees, staff will assess if there is a cost advantage or any other benefits to re-directing garbage to these options and will follow up to maximize benefits. This may include directing First Class to dispose of the City's curbside garbage at one of these options, or direct hauling a portion of the City's garbage to one of these options. FINANCIAL PLAN IMPLICATION As presented in Report No. ENG 60-2014 to Regular Council on October 6, 2014, the recommendation provides the lowest cost for disposal of the City's curbside garbage. The best value rate associated with the recommendation was used for budgeting starting November 1, 2015. The option to haul to multiple sites helps ensure the contractor has flexibility to provide the service at the best value rate in response to changing market conditions. Date reviewed and approved by the Chief Financial Officer: April 27, 2015. IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN AND/OR COUNCIL DIRECTION The recommendation supports the City's strategic goals to achieve economic and fiscal balance as well as supporting a green economy, green energy and green community. SUBSTANTIATION OF RECOMMENDATION The First Class best value rate option provides the lowest cost and best value to the City. No direct haul options are available to the City at the current time. The option to haul to multiple sites from the First Class Transfer Station helps ensure the contractor has flexibility to provide the service at the best value rate in response to changing market conditions. ~ Solid Waste and Environmental Engineering Manager ~p~ ~,~.1-B~la-k~e-r.-P-.-E-ng-.~~~~~~~~~ General Manager, Engineering and Regional Utilities ATTACHMENTS Attachment "1": BA:sj Environmental and Risk Considerations of Available or Potentially Available Landfills ENG 030-2015 Attachment 1 Environmental and Risk Considerations of Available or Potentially Available Landfills Environmental Protections and Risk The Cache Creek Extension Landfill, Roosevelt Landfill, Columbia Ridge Landfill and Wenatchee Landfill, are located in arid environments and have leachate and gas control. The Cache Creek Extension landfill, Roosevelt Landfill and Wenatchee Landfill convert landfill gas to electrical energy. The Wenatchee Landfill is expected to have landfill gas electrical conversion soon. The Cache Creek Extension Landfill, Roosevelt Landfill Columbia Ridge Landfill and Wenatchee Landfill meet all the criteria of a well-located and designed landfill. All three U.S. landfills are Subtitle "D" landfills which means they meet stringent design criteria similar to the newest design standards for BC landfills. The Cache Creek Extension Landfill is expected to start operating in late 2015 and will meet or exceed the newest design standards for BC landfills. The Chilliwack Landfill and Mission Landfill are in a high precipitation area, although both have leachate controls. The Chilliwack Landfill has gas control, but no energy production. The Mission Landfill has no landfill gas collection. Regardless, under B.C. environmental legislation, the City would not have any leachate or gas-related liability for its curbside garbage at either local landfill. Contaminated Site Liability Risk The legal framework in BC provides more protection for municipalities disposing of garbage in authorized BC. landfills than U.S. legislation does for authorized U.S. landfills. However, well-engineered "Sub-title D" landfills in the U.S. (such as the Roosevelt Landfill, Columbia Ridge Landfill and Wenatchee Landfill) have minimal liability for municipalities. In summary, the risk of contaminated site liability for the City's curbside garbage is minimal for any of the subject landfill options, including those in the U.S. Border Risk Under the First Class Waste Services Inc. ("First Class") contract, the City gets the best tipping fee by allowing First Class to determine if the City's curbside garbage is disposed of at the Roosevelt Landfill, or any other local, regional, or U.S. landfills acceptable to the City. The border risk only applies to the City's garbage being sent to a U.S. landfill. The open trade of garbage across the border is protected by international trade agreements. The City's two private transfer stations, Cowichan Valley Regional District, Powell River Regional District and Squamish Lillooet Regional District currently send approximately 140,000 tonnes of garbage annually to the Roosevelt Landfill and other U.S. landfills with no border issues. The City's annual curbside garbage is approximately 7,700 tonnes. In summary, the risk of the border being closed to the City's curbside garbage is minimal.
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