Solid Waste Management and Recycling Service Contracts: Performance Management and Lessons Learned BJ Tipton & Amy Preble

Table of Contents Overview of our services and history Why we contract the services we do What goes into a good contract Lessons learned Bid preparation Accountability Customer service Compensation and billing accuracy Next steps: Where do we go from here? 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History Then: Student and volunteer initiated program--1989 1 employee 1 contractor Initial purchase of 155 bins Materials collected: Glass Aluminum White paper Newspaper BJ 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History Now: Employees: 12 total 6 separate contracts Food waste composting 5 locations Indoor recycling 240 buildings 1,300 locations 2,750 bins Outdoor recycling 100 outdoor sites 529 carts Trash and cardboard 170 trash dumpsters 130 cardboard dumpsters 23 compactors Walkway recycling 47 sites BJ University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

B 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History Services we contract: Confidential paper shredding Gaylords Food waste and compost Carts Indoor recycling Central containers Outdoor recycling Trash and cardboard collection Dumpsters Horizontal Compactors Rolloff Containers Major equipment repairs Services we perform: Cart washing Compactor maintenance and repairs Confidential paper Education and outreach Indoor recycling Pallet pickups Rolloff hauls (small) Site cleanup Special event set up a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

UNC Office of Waste Reduction and Recycling Services and History 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Why we contract the services we do. Early adopter…pilot program that has gone viral… Easier to get money for contracts vs. creating and adding positions buying trucks having space to process and store materials Less direct day-to-day operations supervision needed, no experience directly marketing materials a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? College and University Recycling Coalition (CURC) www.curc3r.org Recycling and Beyond: A College Campus Primer Chapter 17: Contracts (written by Christine von Kolnitz Cooley and Karyn Kaplan) North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook www.nctcog.org South Carolina Collegiate Recycling Professionals Certification Manual Chapter 8: Contracts and Marketing Not here to tell you how to contract. Here are some great resources b 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook, page 3 This Guidebook is organized into eight chapters, plus an introduction. The organization is summarized below. Introduction Chapter 1 – Recycling Contracting in North Central Texas Chapter 2 – Engaging in the Competitive Procurement Process Chapter 3 – Developing General Contract Provisions Chapter 4 – Developing Collection Contract Provisions Chapter 5 – Developing Processing Contract Provisions Chapter 6 – Understanding the Financial Terms of Recycling Contracts Chapter 7 – Managing Contract Administration Chapter 8 – Resources and Reference Materials www.nctcog.org Sample from the NCTOG book b 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? Another example b North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook, page 2-4 www.nctcog.org 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? Key parts of our contracts Purchasing’s boilerplate language Scope and services to be performed Definitions of materials Response time to requests/work orders List of service locations and schedules Creation of database (old sheets, “bin bible,” contractor control) Anticipated volumes/tonnages Priority buildings (don’t miss, noise, hard to access) Site maintenance Materials accepted and markets for them a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? Key parts of a contract (continued) More expectations and parameters Employee behavior and appearance Equipment appearance and function Health and safety considerations Security considerations a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? Communication and contract administration Reporting of stats/weights Billing dates Monthly meetings Daily check-ins (indoor: phone, front load/rolloff: have one of contractor’s radios—instant communication) Location and schedule changes Contractor reporting of problems a/b 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

What goes into a good contract? Bid process 2 part bid Technical Cost How will pricing be structured? Per building Per ton (actual weights or estimates) Per pickup Per bin Combinations 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Bid Preparation Have our own data Have a mandatory site meeting (tour) Be specific: of it’s not in there, it won’t happen Detail on markets (harder to get info once in contractual relationship) References (from similar businesses/entities) a/b Data– location list… don’t rely on contractor’s info or to provide info that will help you get rid of them… Must see scope of services… can’t ask questions during tour… have to go through purchasing rep… --ap– site maintenance… more and more specific…. Not just keep the sites clean bins facing forward, bins matching lids, clean lids, 4’ around the site, Where are the materials going??? Private companies keep info very private… References of SAME scope… not municipalities…elementary schools…universities 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Accountability How much time are you willing to spend to supervise their crews? Contractor supervise their own crews Contract had to specifically state this expectation—contractors weren’t doing it One contract—indoor—was having serious problems Contractor chose to send someone to campus to inspect sites to see how work is performed A-indoor B-fl 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Accountability Regular indoor site inspections OWRR to hold contractor accountable Performance standards which include monetary penalties—contract language Examples of performance expectations (photos of bags, lids, etc.) a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Location and scheduling lists Keep location listings (database accuracy) Keep their route info current Contractor telling us if bins move or are missing Us telling contractor if locations move or add Coordinating schedule changes Contractor carrying their sheets!  example A Keeping communication flowing between contractor and OWRR Us telling them of changes and them telling us of changes Database used Frontload… schedule changes. Spent a bunch of time matching up our database to contractor’s billing… then our db to our customer billing… only to find out from the driver that what he was ACTUALLY doing. 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Customer Service: We want to communicate with our customers. We want the contractor to communicate with us—their customer. When we get a call Check database See if site is on our list When it’s due Work order system Sign off (really getting them done, not just signing them!) Recording in our system Email to customer a 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Compensation and Billing Accuracy Base service fees Processing fees Revenue sharing Contract fee adjustment * From the NCTOG Contracting Negotiation Guidebook, pages 1-10, 1-11 b 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Compensation and Billing Accuracy How billing is structured Per building Per stop Per container (dumpsters, bins, carts) Per ton Actual weights Truck Containers Estimated weights B/a Very important… talk more here about actual weights! Front load we pa 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Pricing structure of our contracts Animal Bedding Per cart emptied Food waste and composting Per ton Per site minimum tonnage Frontload contract We own the Dumpsters Pay for each pickup Pay actual landfill fees Indoor contract Would recommend a per building charge (but we have too many bldgs to manage that!) Outdoor contract Per site fee (max and min range of carts allowed) Rolloff hauls We own and maintain the compactors Haul rate based on distance to destination Actual landfill fees b 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Lessons Learned Compensation and Billing Accuracy Contract Administrator needs to review and sign off on invoices Accuracy, cost savings Most businesses don’t do this Diligence is a MUST Actual weights vs. estimated (pay by ton) Locations and schedule (by site or pickup) Changes in service locations, frequency, buildings off-line or demolished Holiday service reductions A We saved $17,000 by reviewing our trash billing for accuracy in sites One school where I worked the trash invoice went straight to the purchasing dept. Recycling or FS never reviewed it. 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Next Steps: Where do we go from here? Single stream? Cost savings? Housekeeping? In-house? 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Questions? 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling

Thank you! BJ Tipton, Solid Waste Program Manager, btipton@facilities.unc.edu Amy Preble, Recycling Coordinator, amy.preble@facilities.unc.edu 4/22/2017 University of North Carolina at Chapel Hill, Office of Waste Reduction and Recycling