2012-2016 Business Plan Summary

Program

Environmental Services Service grouping

Garbage Recycling & Composting Service

Garbage Collection and Disposal Type

Public Service Owner:

Jay Stanford, Director, Environmental Programs & Solid Waste, Planning, Environmental & Engineering Services

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Strategic Priority Environmental Leadership

Financial & Staffing In $000s

2010 A ctua l

2011 R evised Budget

Operating budget

12,896

12,908

Non-tax revenue:

4,493

4,384

Net (tax supported):

8,403

8,524

Purpose

Expenditure:

To contribute to the health of the environment and the citizens of London through appropriate removal and management of garbage, yard materials.

Capital budget

2010 R evised 2011 R evised Budget Budget

Expenditure:

2,522

4,321

968

1,666

1,554

2,655

82.0

82.0

1.19

1.19

50.67

50.76

Non-tax revenue: Net (tax supported): Staffing FTEs: Percentage of expenditures budget (all rate sources): Annual per household cost of net budget ($):

Key processes Garbage pickup for approximately 165,000 households Curbside households receive 42 pickups per year. Multi-residential households generally receive 104 pickups per year (twice per week).

Outsourced percentage

2% %

Businesses and residents living in the downtown core receive 104 pickups per year (twice per week). Brush, yard material and leaf pickup for 90,000 households The majority of curbside households receive 5 green week pickups and 3 leaf pickups.

Outsourced percentage

2% %

Landfill Operations Outsourced percentage

City staff manages the operations, scalehouse and other key performance monitoring areas.

60% %

Contractor operates heavy landfill equipment (e.g., compactor, bulldozer). Page 1 of 9

Garbage Collection and Disposal

Landfill Monitoring, Compliance and Reporting Work required to ensure compliance with Certificates of Approval and the W12A Community Enhancement and Mitigative Measures Program.

Outsourced percentage

0% %

Management and Monitoring of Closed Landfill Sites and Other Methane Producing Sites

Outsourced percentage

20%

Work undertaken by City staff. Technical consultants and contractors hired, if necessary.

%

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Regulatory/Policy landscape Service

Delivery method

Mandatory

Non-legislative

New council direction, new regulations, legislative changes Council has directed staff to report back on the costs of collecting garbage and recyclables on a weekly basis in September 2011. Council has directed staff to Review Resource Recovery Facilities and Strategies including aerobic composting, anaerobic digestion, mechanical biological treatment (MBT) processes, advanced thermal treatment (ATT) and other technologies (including new, next generation and emerging technologies) to assist in optimizing materials recovery and moving from current diversion rate of 40% towards Provincial goal of 60%. City staff will report to the Community & Neighbourhoods Committee in September 2011 on the potential next steps for the Green Bin and Modified Garbage Collection Pilot Project. Spacer row turn text white when ready

Current state of this service The status of garbage collection and disposal in 2012 is similar to 2011. The one change to this service in 2011 was the elimination of plastic bags as a curbside container for yard materials and fall leaves. This change provide annual operating savings of $150,000 to $200,000. Different Day Collection: The current garbage and recycling system (42 pickups per year) saves about $1.7 million per year based compared o same day, weekly service. Since its inception in 1996, the current collection system has saved Londoners between $15 and $17 million. According to 2009 data published by OMBI, the average operating cost for residential garbage collection per tonne was $105. For London, the amount was $85 per tonne. The different day collection schedule does provide challenges for some residents including setting garbage out on the correct day and odours in the summer . Yard Material and Fall Leaf Collection: Green collection weeks for brush, yard waste and leaves are undertaken at a lower cost than same day pickup offered in other municipalities. It is important to note that it is not as convenient as same day pickup for these materials and there is decreased aesthetic appeal with bags and bundles sitting at the curb all week. W12A Landfill: Based on the OMBI numbers, owning and operating a landfill site within municipal boundaries is a Best Practice both financially and from a municipal responsibility perspective. The W12A Landfill provides many benefits to the municipality and City businesses including providing waste disposal certainty and security; appropriate time to implement waste diversion Page 2 of 9

Garbage Collection and Disposal

program; a flexible system design (i.e., waste disposal ‘cells’ are built when they are required to be filled. If less garbage is arriving, construction of the next cell is delayed until needed); lower disposal costs which allows greater resources to spend on waste diversion; a source of revenue; and an asset to attracting businesses to community. Benefits to businesses include providing a local option to dispose of commercial garbage; certainty to business and lower cost disposal. The best method to illustrate cost containment is to examine comparative waste disposal data for municipalities. Currently the best source in Ontario is OMBI data. Not only does the City have about 12 years of landfill capacity remaining, it also has the least cost disposal system in Ontario for a large municipality and is among the lowest cost in Canada. W12A Landfill Area Study: Municipal Council approved (February 2009) the recommended adoption of the W12A Landfill Area Study and the approval of the proposed Official Plan and Zoning By-law amendments to provide a long term vision for the future of the W12A Landfill facility and the surrounding land uses to effectively assist property owners in gaining a higher degree of certainty and understanding for the future and anticipated use of this site. The recommended policy describes the objectives of the proposed Waste Management and Resource Recovery Area, while recognizing the importance of the existing W12A landfill and the suitability of the existing location to minimize environmental and social impact while providing the important economic function of waste management. The new policies also recognize that the adjacent site is also a suitable location for landfill expansion and the development of an Integrated Resource Recovery Centre for waste reduction, waste disposal, waste diversion and waste processing, using principles of sustainability which are socially, environmentally and fiscally responsible. The objectives reinforce the long term vision for this area, assist property owners through continued input and consultation and guides future waste management and resource recovery activities. Financial Constraints: Financial constraints introduced in the 2011 Budget and anticipated to continue into the future starting with the 2012 Budget may limit or reduce service delivery. Strengths: Dedicated and committed staff with many years of garbage collection and disposal experience. Below average cost per tonne for garbage pickup compared to the other 13 municipalities as part of the Ontario Municipal Benchmarking Initiative (OMBI). The lowest cost per tonne for garbage disposal compared to the other 13 municipalities as part of the Ontario Municipal Benchmarking Initiative (OMBI). High productivity per stop due to the reduced frequency of garbage pickup compared to other comparable municipalities. Similar productivity with yard materials collection (Green Weeks). Responsiveness and flexibility for handling special requests such as side door service, student move outs, cleanup situations (e.g., Fleming Drive area), illegal dumping activities, adjusting services, adding new services (e.g., potential green bin), etc. Ownership of a landfill site that has 12 years disposal capacity and has landfill expansion possibilities providing municipal disposal security for Londoners and businesses. The W12A Landfill began operation in 1977. A balanced financing plan and operating structure that provides appropriate tipping fees for business garbage from London to hep reduce the cost of environmental protection infrastructure investment for the W12A Landfill and contain operating costs.

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Garbage Collection and Disposal

An operating structure that balances public and private service providers with different operational activities while ensuring that accountability and responsiveness are at the highest possible level. In recent years the City has made significant investments in enhancing and upgrading the infrastructure at the landfill. These upgrades have included improvements to the stormwater management ponds and the leachate collection system, installation of landfill gas collection and flaring system and the supply of municipal water to the landfill. The City is committed to continue to improve the operation of the landfill by taking reasonable efforts to reduce or address negative effects of the W12A Landfill Site and any potential future expansion through proper design and operation of the landfill. A Council-approved W12A Area Plan to guide the development vision of the W12A Landfill and maximize resource recovery opportunities for the future. A Council-approved W12A Landfill Community Enhancement and Mitigative Measures Program as part of the City ’s overall efforts to reduce or address the negative effects of the landfill on the local community around the landfill. Weaknesses: Project implementation has been delayed in some cases. A number of waste disposal initiatives are tied to the higher levels of government which creates uncertainty. Spacer row turn text white when ready

Recent enhancements to economy, efficiency and effectiveness Construction of a leachate pumping station at the W12A Landfill and a forcemain will be completed in 2011. This will eliminate the need to haul leachate for treatment by tanker truck and reduce leachate management costs by approximately $120,000 in 2012 and $280,000 in 2013. Spacer row turn text white when ready

Future direction of this service Waste Collection: A high level of uncertainty remains for the future direction of garbage collection services as this service is tied very closely to the future of recycling and composting programs. Garbage collection essentially picks up the materials that cannot be practically recycled or composted. Key items that have been or are being considered include: Weekly garbage pickup and recycling services were estimated to increase current program costs by $1.7 million in 2005. There have been past discussions about returning to weekly or seasonal (weekly in summer and bi-weekly in winter) collection. This would likely be necessary if Green Bin collection was implemented. Allow residents the option to use large roll-out carts for their garbage which may reduce worker injuries. Many Ontario communities offer a scheduled, same day pickup service for yard waste rather than London’s Green Weeks. Collection of garbage from medium and high-rise buildings is not undertaken in some municipalities. It is left entirely up to the property owner to obtain service. Development of Waste Management and Resource Recovery Area: The use of land within the Waste Management and Resource Recovery Area shall be directed towards the following objectives: To support the environment, public health and safety and the interests of residents by ensuring that all environmental, social and financial impacts of waste management/ resource recovery activities are sufficiently controlled or mitigated in a timely manner.

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Garbage Collection and Disposal

To provide opportunities for future City of London waste management programs by defining and describing the land uses within the Waste Management/Resource Recovery Area and securing an operating landfill site well into the future. To provide continuing public input and consultation. To provide flexibility to accommodate future changes in technology and market demand. To promote a streamlined decision-making process for new waste management / resource recovery activities. To identify and promote economic development and public interest opportunities arising from waste management I resource recovery activities. Construction of the London Regional Material Recovery Facility will be completed in 2011. This is the first facility to be located in the W12A Landfill Waste Management and Resource Recovery Area. Sanitary Landfill Reserve Fund (SLRF): The SLRF is used to finance capital projects at the W12A Landfill, closed landfills and Community EnviroDepots including related land acquisition. The SLRF fund grew rapidly in the late 1980s and early 1990s when significant tipping fee revenue was generated at the landfill from London businesses. Contributions to the SLRF stopped in 1995 when most of the business waste stopped coming to the landfill. In 2000, contributions started again with an amount of $1,062,000 added from taxes (not landfill tipping fees). In 2001, the annual contribution from taxes was reduced to $812,000. In 2003, different contribution strategies to the SLRF were considered by Council and it was recommended that future budgets allow for an increase in funding from taxes to the SLRF of $438,000 beginning in 2008 in order to have funds available to pay for a portion of the costs (50%) of developing new disposal capacity when the W12A landfill reaches capacity. Analysis completed in 2007 and presented to Council confirmed the need to increase funding to the SLRF in order to have funding available to pay for new capacity in when the W12A landfill reaches capacity. Staff will be updating the financial analysis of the SLRF in 2011 to determine if the increase in funding to the SLRF is still required to pay for new capacity when the W12A landfill reaches capacity. Financial Constraints: Financial constraints introduced in the 2011 Budget and anticipated to continue into the future starting with the 2012 Budget may limit or reduce service delivery. Service costs for the Garbage Collection and Disposal area are primarily for labour and equipment. Increases in costs are expected for labour due to signed labour agreements and for equipment due to increasing fuel costs. Service reductions may be required to meet this economic challenge. Spacer row turn text white when ready

Objectives next 4 years Optimization of Waste Collection System A review of the waste collection system will be undertaken in order to determine potential measures: Increase the effectiveness and efficiency of waste management services now and in the future; Increase value in service delivery while balancing customer expectations. Page 5 of 9

Garbage Collection and Disposal

Develop and implement effective waste management policies, programs and be-laws that meet the needs of taxpayers and balance expectations. Contain public and private service provider costs for all waste management services. Expected completion year Division responsible

2012

Solid Waste Management

Actions

Optimization of the waste collection system will include a review/analysis of the frequency of collection (garbage, yard materials, fall leaves), the use large roll-out carts for curbside garbage and collection from medium and high-rise buildings. Outcomes and measures

Indicators that will be considered during the optimization exercise will include annual cost per household, cost per pickup, customer satisfaction and potential impact on worker injuries and time lost due to injuries.

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Emerging issues and challenges Environmental During warmer months when the collection cycle covers two weekends or when holidays occur, many Londoners have concerns with the amount of garbage and associated odours. The demand for weekly service increases significantly.

Environmental Green week collection service (i.e., place your materials at the curb by 7:00am on the Monday of your collection week and they will be picked up before Saturday) results in bags and bundles of materials sitting at the curb for several days in a row and is viewed by some as being unsightly.

Other Depending on the type of weather experienced in the fall, fall leaf collection can run behind schedule due to the amount of leaves that fall and are raked at the same time (e.g., 60% of leaves could appear at the curb at the same time rather than being spread out over the 8 week collection period. Environmental Operating the W12A Landfill site is a challenge. It is essentially an ongoing construction site that must deal with all types of weather including extreme weather conditions (e.g., heavy rains impact the leachate collection system), odours and litter. Environmental Meeting expectations of the local community is a high priority and remains a challenge.

Legislation Meeting today’s environmental protection legislation and regulations and anticipating tomorrow’s changes is a high priority. Page 6 of 9

Garbage Collection and Disposal

Economy Program costs will increase based on existing labour contracts and increasing equipment costs which will make it a challenge to meet expected 2012 Budget targets. Budgets will need to be reviewed to identify cost containment, efficiencies and possible revenue opportunities. Cost contaminant measures could include higher tipping fees, elimination of Multi-residential garbage collection, etc. Spacer row turn text white when ready

2012 - 2016 Service changes with financial impact (+/-) Spacer row turn text white when ready

Statistics and performance measures A Activity measures Description of measurements

Number of tonnes collected: garbage

2005 Actuals

100,400 2010 Expected

93,300 2013 Forecast

92,000

2006 Actuals

96,700 2010 Actuals

92,800 2014 Forecast

92,000

2007 Actuals

95,800 2011 Forecast

92,500 2015 Forecast

92,000

2008 Actuals

95,600

2009 Actuals

93,800

2012 Forecast

92,000 2016 Forecast

92,000

Comments Description of measurements

Number of tonnes collected: yard materials

2005 Actuals

4,800 2010 Expected

5,500 2013 Forecast

6,000

2006 Actuals

6,100 2010 Actuals

5,700 2014 Forecast

6,100

2007 Actuals

4,800 2011 Forecast

5,800 2015 Forecast

6,200

2008 Actuals

5,600

2009 Actuals

7,600

2012 Forecast

5,900 2016 Forecast

6,300

Comments Description of measurements

Number of tonnes collected: leaves

2005 Actuals

4,500 2010 Expected

6,600 2013 Forecast

5,200

2006 Actuals

5,000 2010 Actuals

3,300 2014 Forecast

5,300

2007 Actuals

5,100 2011 Forecast

5,000 2015 Forecast

5,400

2008 Actuals

6,700

2009 Actuals

6,500

2012 Forecast

5,100 2016 Forecast

5,500

Comments

Description of measurements

Number of tonnes managed at W12A

2005 Actuals

209,600 2010 Expected

280,000 2013 Forecast

270,000

2006 Actuals

205,500 2010 Actuals

266,400 2014 Forecast

270,000

2007 Actuals

230,400 2011 Forecast

270,000 2015 Forecast

270,000

2008 Actuals

284,400

2009 Actuals

273,900

2012 Forecast

270,000 2016 Forecast

270,000

Comments

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Garbage Collection and Disposal

Description of measurements

Number of tonnes GHG destroyed

2005 Actuals

2006 Actuals

41,100 2010 Expected

38,800 2010 Actuals

50,000 2013 Forecast

48,800 2014 Forecast

60,000

60,000

2007 Actuals

30,300 2011 Forecast

50,000 2015 Forecast

60,000

2008 Actuals

37,900

2009 Actuals

47,900

2012 Forecast

55,000 2016 Forecast

60,000

Comments Description of measurements

Gross revenue from tipping fees ($000)

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

2010 Expected

2010 Actuals

2011 Forecast

2012 Forecast

3,350 3,400 2013 Forecast

3,500 2014 Forecast

3,600

3,600

3,500 2015 Forecast

3,600

2009 Actuals

3,500

3,600 2016 Forecast

3,600

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B Efficiency measures Description of measurements

Overall collection cost/tonne: all materials

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

2010 Expected

2010 Actuals

2011 Forecast

2012 Forecast

69 72 2013 Forecast

72 2014 Forecast

75

75

75

75

2015 Forecast

2016 Forecast

75

75

2009 Actuals

68

Comments

Description of measurements

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

Overall collection cost per household served

2010 Expected

2010 Actuals

2011 Forecast

2012 Forecast

2009 Actuals

43 45 2013 Forecast

45 2014 Forecast

48

48

48

48

2015 Forecast

2016 Forecast

48

48

Comments

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C Effectiveness/Quality/Satisfaction measures Description of measurements

Number of complaints per 1,000 households

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

2010 Expected

2010 Actuals

2011 Forecast

2012 Forecast

23

22

2015 Forecast

2016 Forecast

22

22

20 24 2013 Forecast

22

24 2014 Forecast

22

2009 Actuals

19

Comments

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Garbage Collection and Disposal

Description of measurements

Number of inquiries per 1,000 households

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

30 2010 Expected

35 2013 Forecast

40

2010 Actuals

36 2014 Forecast

35

2011 Forecast

2009 Actuals

30

2012 Forecast

35

40

2015 Forecast

2016 Forecast

35

35

Comments

Description of measurements

Number of days per year when garbage is not fully collected

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

2010 Expected

2010 Actuals

2011 Forecast

2012 Forecast

2 0 2013 Forecast

0

0 2014 Forecast

0

0 2015 Forecast

0

2009 Actuals

0

0 2016 Forecast

0

Comments

Description of measurements

Number of days per year when an MOE compliance order is in effect

2005 Actuals

0 2010 Expected

0 2013 Forecast

0

2006 Actuals

0 2010 Actuals

0 2014 Forecast

0

2007 Actuals

0 2011 Forecast

0 2015 Forecast

0

2008 Actuals

0

2009 Actuals

0

2012 Forecast

0 2016 Forecast

0

Comments

Description of measurements

Number of nuisance complaints recorded

2005 Actuals

2006 Actuals

2007 Actuals

2008 Actuals

2009 Actuals

31 2010 Expected

30 2013 Forecast

20

2010 Actuals

35 2014 Forecast

20

2011 Forecast

2012 Forecast

30

25

2015 Forecast

2016 Forecast

20

20

Comments

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Garbage Collection and Disposal