May 12, 2016 Multi-Material B.C. (MMBc) City of Vancouver Recycling Program

2 tier Municipal Government –Metro Vancouver = Regional 24 local municipalities Total Responsible for transfer and disposal (except for City of Vancouver) –City of Vancouver (CoV) = local (2011) Responsible for collection Owns the only MSW landfill Owns transfer station 2 Background

Vancouver historically provided recycling services – Single and Multi-Family, Depots Single Family Collection with Union staff Multi Family approx bldgs. –1/3 City staff 1/3 Contracted Depots at landfill and transfer station Processing contracted –Operates as a Utility with annual rate based on net operating costs 3 Background

BC Environmental Management Act (2004) Recycling Regulation – Schedule 5 Packaging & Printed Paper (2011) Producers and Consumers Now Responsible for:  75% recovery rate of all recyclables  Producer arranges collections, cost, and recycling of PPP  Stakeholders should have input into plan, any transitions and operations  No incremental cost to taxpayers  Implement program by May 19, 2014 (CONFIRMED)

Draft plan submitted to Province late 2012 –Ignored municipal governments –Assumed they would do all collection Municipal feedback –Keep us involved –Didn’t believe MMBC could deliver entire province in time available 5 MMBC History/Timelines

Adjusted plan to support municipal involvement Surveyed municipal costs for benchmark Submitted final plan w/o financials in April 2013 –Short on details – left to implementation –Included opportunity for contracts with Municipalities 6 MMBC History/Timeline

Developed draft contracts –Modeled after municipal contracts –One sided, overly prescriptive, downloaded all risks, inadequate payments –Separate glass –Max 3% contamination –Significant penalties Had to indicate acceptance by Nov 29, 2013 Negotiated separately with individual municipalities 7 MMBC History/Timelines

City Staff’s Risk Assessment to Accept MMBC Contract  Significant savings but does not cover all costs  Utility rate charge reduced but not eliminated  Terms not acceptable for long term contract, however:  Term will be limited; City can provide 6 mos notice at any time  MMBC not able to take on CoV work at this time  Incentive provides some relief to utility rate in interim  Operational adjustments required to:  Accommodate new PPP materials – more volume expected over time  Manage glass separately – service delivery options under review  CoV recycling truck fleet for SF (30 trucks) is due for replacement in 2016: ~ $8 M  Existing Multi-Family contract ends in May 2016 – MMBC’s multi-family approach is flawed 8

Staff Recommendation to Council That Council authorise the City Engineer to advise MMBC that the City is interested in continuing to provide recycling services to the residents of the City of Vancouver consisting of: single-family curbside recycling multi-unit residential building (MURB) recycling depot recycling at the Vancouver South Transfer Station and Vancouver Landfill under contract to MMBC subject to negotiation of a mutually agreeable contractual and financial arrangement 9

Contracts Contracts signed Nov. 30, 2013 –Single-family collection – 5 years to Nov 30, 2018, commitment to review after 2 years –Multi-family buildings –2 ½ years to April 30, 2016 Aligns with expiry date of City’s apartment recycling contract MMBC taking responsibility after that Contracts require Adding new materials Separate collection of glass 10

MMBC Additional Materials SF CURBSIDE, MURBs & DEPOTS Paper Containers Milk cartons Soy tetrapaks Ice cream tubs Microwavables Plastic Containers Plastics with resin codes Metal Containers Aerosol cans DEPOTS ONLY Polystyrene Foam Cushion packaging Takeout containers Styrofoam cups Some Plastic Film Grocery bags Dry-cleaning bags Bread bags Toilet paper overwrap 11 Spiral-Wound Cans

Single Family Recycling: –5 year contract with MMBC (Nov to Nov. 2018) Recycling delivered entirely by City crews Requires separate collection of glass Option for without cause termination of contract on 6 months notice 109,000 SF units Revenue from MMBC $38.50/unit = $4.1M/yr COV cost to deliver ~ $9.2M/yr 12 CoV Contracts with MMBC

Multi-Family Recycling: –Ends no option to extend –Combination of contract and City services Private Contract for majority of MF buildings – ends April 2016 COV service for smaller buildings within residential routes 169,000 MF units Revenue from MMBC $23.75/unit - $3.9M/yr COV cost to deliver ~ $3.2M/yr 13 COV Contracts with MMBC – as of Nov 2013

2 years in –Gap remains at $4-5M/yr Could be used for other services (Public Realm Cleanliness) –Need to buy new Trucks $7-8M Capital Contract life too short to amortize –Multi-Family Contract Ending Increases the financial burden on SF –Contamination is a growing concern –Communities with MMBC delivered service report positive results (mostly smaller than CoV) 14 City Decision

15 Recycling Funding Gap ( )

16 SF Recycling Rates once MMBC MF Contract ends Before MMBC ( ) 169,000 MURB Units 109,000 SF In Contract with MMBC (2015) 169,000 MURB Units 109,000 SF After MMBC MURB Contract Ends ( ) 109,000 SF Only Utility fee drops Utility fee more than doubles Net Program Cost: $5.1M Net Program Cost: $6.2M Net Program Cost $8.0M Proportion of Utility Fees Proportion of Utility Fees Proportion of Utility Fees 55% MURB 60% MURB 45% SF 40% SF 100% SF MURB revenues from MMBC & utility subsidize SF Curbside rate

Advance discussions/review with Council to set the stage and obtain feed back. Councils Biggest issues were: –Job loss – had to guarantee no job loss and work with Union –Service quality/levels – MMBC indicated they would maintain City service levels –Loss of control and backsliding on diversion – By-law to Mandate Recycling at the building level for all sectors 17 How did we deal with divesting recycling?

Expected Transition date Oct. 3, 2016 Joint Steering committee with MMBC Joint focus is on minimizing impact to the public –Seamless service change –Gradual transition of 311 service Working closely with MMBC and their selected contractors –Open sharing of info –Joint efforts around communication –Minimize barriers to cooperation 18 Status

Questions? Albert Shamess – Director Waste Management City of Vancouver MMBC – website 19