1 Nienke Itjeshorst Solid Waste Services Manager Kāpiti Coast District Council Refuse and recycling collections in Kāpiti NO Council kerbside collections Commercial collectors only

2 Why did Council get out of collections? How did we get to where we are now? What is Council’s role now? Starting point: collections funded user-pays – no rates

3 before 2008 Council operates a landfill for general waste Council sells and collects rubbish bags In principle bag sales would cover - collection cost - disposal cost at the Council landfill in 2008 two major changes

4 (1) Closure of the landfill for general waste Jan 2008 (2) End of Council bag collection contract July 2008 Council’s position changes significantly Changes and innovation were needed Council’s choice: stick to user pays funding mechanism

Otaihanga Resource Recovery Facility Leased to MidWest 15 yrs in December 2008 MidWest sets the gate fees at Otaihanga not Council Significant change of Council’s position in collection market

wish to start kerbside recycling Open tender for rubbish and recycling collection - Contractor collects council rubbish bags - Alternative tender sought for kerbside recycling Council explored ‘partnership’ between all collectors (4) for co-funding kerbside recycling

7 July contract Council - Envirowaste (3+2) - Council bag collection co-mingled - recycling collection for Council bag users and the contractor’s wheeliebin users All collectors agreed to ‘partner’ and fund kerbside recycling on behalf of their customers

8 Council funds 50% of recycling contract cost based on estimated collection market share of 50% of all households Collectors pay the remainder to Envirowaste based on customer number

9 60L crate – every week - urban ‘you have already paid for it’ incentive Collectors incorporate cost in wheeliebin rate Council cost in bag price kerbside sort system

10 Recycling introduction - strategic success districtwide no rates funding all residents in urban area same service 1 collector for all households paved the way for introduction of collectors license in July 2010

11 Operational perspective performance management resulted in complaints decreasing every year to less than 10 calls/month education resulted in behaviour change and good quality recycling Financially contract was not a succes for Council

12 YOUR LOGO bag price went up from $1.90 to $2.85 in 08/09 to $3.60 retail price in 11/2 41% of bagprice to cover Council’s recycling cost co-mingled collection worked out negative for Council

13 sales go down collection cost CPI or the the same bag price increases 1 bag sold ≠ 1 crate paid for t recycle every week bag out once a month!

14 no mechanism to deal with market movement Council can’t be a competitor no flexibility in price setting no offsett for losses

July 2012 – discussions tender process What did Council have to offer? – market share Could Council afford to tender for more than 1 year? Collectors: we meet our license requirement to provide recycling and will carry on as we are

16 Fierce competition Bag users are switching to wheeliebins 2 collectors started selling bags for kerbside collection, undercutting Council and each other Council bag sales drop even further new LOW COST BINS $3! $2.50! $2.25 $3.60

17 Two choices discussed by Council 1.fund kerbside recycling for whole district with rates rates increase 1.2% get out of bag collections 2.exit all collections and leave collections to licensed collectors Decision was made to EXIT

18 Council’s role Council licenses collectors Collectors have to meet Bylaw requirements ‘kerbside recyclables’ determined by Council resolution: plastics 1-7 (clean) paper/cardboard (clean) glass bottles/jars alu/steel cans supermarket bags

19 Council’s role monitor collections for compliance quarterly collectors meetings assist and support enforcement

20 EDUCATE ! YOUR LOGO Lead by example! Regional Action! Levy Funding