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Home My WebLink AboutWD-16-98 : THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # r;; C:;-, Res. #(;..,\>1'1 -II'?- 9~' By-Law # Date: February 16, 1998 WD 16 9B File #: Report #: Subject: SOLID WASTE MANAGEMENT SYSTEM - INDEPENDENT AUDIT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-16-98 be received; 2. THAT, in light of proposed changes to the Region of Durham's Solid Waste Management System, a consultant be retained, FORTHWITH, by the Municipality to do an independent audit of the Municipality's present operations as well as identifying other options that Clarington may consider regarding the handling and disposal of all municipal waste; and 3. THAT funds for the audit, not to exceed $5,000, be obtained from the Garbage Input Reserve, Account No. 2900-11-X. REPORT 1.0 ATTACHMENTS No.1: Proposed Preliminary 1998 Solid Waste Management Budget Summary 2.0 BACKGROUND 2.1 At a joint meeting of the Finance & Administration and Works Committees for the Regional Municipality of Durham held on February 4, 1998, Joint Report #98-J-3 from R.J. Clapp, ."C'ClEO~P""" "P,. 'tt::r:1R.C'CLE "',-JIS"'PRlmmOORECVCLEDPAPER 1113 , .1'~:&:,T JO., lID-16-98 ~~JI 2 Commissioner of Finance and V.A. Silgailis, Comm;.o;4>nerof' works was received. Al thoug~ referred back to the Finance & Adm;.nistratlon and Works Committees later in the meeting, Joint :a.eport,#98-J-i3 contained the following recommendations: (a) 'nlAT the proposed Uniform Regional Solid Waste Management SyStem Rate (the Waste System Rate) be established at a rate of $86 per tonne for all billable lI'lUn;i,~~~ltonrtEu!l ~pl(erinq landfill sites.. transfer. stat:i,PUi!l. ... r~C;:YQ1~ng 9~t;t:es <;ind comoostinq f)!lcilities effective January 1, 1998 (previously $63 per tonne) . (b) THAT the waste disposal rate remain at $90 pertorinefor garl:>age waste and mixed loads of waste and bee~tended to include recyclables, compostables and blue box material (except billable municipal tonnes per Reco~ndation al entering Regional waste Hanagement Facilitiesw:l.thth.e exc~ption of residential wastes including recyclables, compostables and blue box material up to theflrst. 100 kg (nO ll:>s) per vehicle per 4ay, which will cOl'1tinl.1~tto be disposed at no charge to the residents. In addition, small commercial loads of waste frO$ vehicles less than 7,000 kg in gross weig)."lt, will now be accepted for disposal at a rate of $90 per tonne. (e) THAT the Proposed Preliminary 1998 Solid Waste Ma.nagement Current and Capital Budget Summary and relatedfin~cing, be received as shown in the table on pag~. 2 of: Joint Report#98-J-3. (See Attachment No.1) (d) THA,Taconsllltant (s) be retained by the RegiQn tQ review 1114 U~T ~.tWO-16-98 J>~:& ...~ the feasibility of a single tier was~~ management sy$tEUn within the Region of Durham. The eos.t of thia review is to be funded from the Solid Waste Reserve. (e) THAT a eonsultant(s) be retained to prepare a long term waste management strategy .for the dispoaal of solid .waste including recyclables and other wastE;! divers.i.ons.f.or the :Region of Durham to ensure that the Reg;i;onnas wastt;! dil;lposal capacity available (exeluding green field sites loeated in Durham Region) after the elosureoft~ Keele valley Landfill Site. The cost of this reviewia t.o be funded from the Solid Waste Reserve. (f) TEAT the Regional Solieitor be authorized to prepare the requisite By-laws. 2.2. Following a question and answer period, JointReport#9B-J-3 was referred baek to Finan(:e & Administration ... .abd... Works Committees through the following successful resol\itiQpS: "THAT the reeommendations contained in Joint Repert #98- J-3 of R.J. Clapp, commissioner of Finance and V.A. ~ilgailis, commissioner of works be divided to.eonsider Par.t:.s d) and e) separately from the remainde:r." "THAT the recommendations contained in Parts .d) and e) of Joint Report #98-J-3 of R.J. Clapp, Commissi.oner of Finance and V.A. Silgailis, Commissioner of Works be referred back to the Finanee & Administration and WorkS Committees for further review." "THAT the reeommendations contained in Parts a), b), e) and f) of Joint RepOrt #98-J-3 of R;J. Clapp, commissioner of Finanee and V.A. Silgailis, Commissioner 1115 ! RB.C?B.T NQ. j ~~16-98 .~B.4 of works be referred back to the Finance &:MtI\in:\.sttatiol'1 and works committees for further review and that these items be dealt with immediately." 3 . 0 RllVJ:BW AND COMMBNT 3.1 The reeommendations eontained in Part a) of Joint Report #9a.-J-3 will have a major impaet on the cost of waste disposal to the Municipality of Clarington. The proposed ehange in the Waste System Rate from $63 Per tonne to $86 per tonne represents a 36.5% increase in cost. This eost i-nerease beeomes partieularly significant when one eonsidersthat the Munieipal:\.ty of Clarington has facilitated the purchase and eonstruction of our own transfer station Which the -Region utilizeli3 at the cost of $66.57 per tOMe for allll'lUnicipal tonnes entering the station. 4.0 CONCLUSIONS AND RECOMMENDATIONS 4.1 At the time of writing of this report, the Region had not dealt with Joint Report #98-J-3. Should this joint report be adopted, substantial increases in waste disposal cost;swould be incurred by the Munieipality of Clarington asa reliJult of Reeommendatibn a) of the Region of Durham's Joint RepQrt #98-J-3 from R.J. Clapp, Commissioner of FinanCE! and V.A. Silgailis, Commissioner of Works. In light of these antieipated inereased eosts, it is conelu~ed that the Munieipality would benefit greatly from an independent audit. It is reeommended that a consultant be retained to perform an audit of the Municipality's present waste managemE!nt operation, partieularly :\.n light of Reeommendation a) (increase from $63 to $86) of Joint Report #98-J-3. It is antieipiited that this independent audit will alsoE!xamine Reeommendation b) and c) pertaining to the 100 kg per vehicle per day free disposal and the "Proposed Preliminary 1998 Solid 1116 . '\l~'r~.; MD-16-98 ~~'11~ 5 Waste Management Benefit summary" (Attal'llhmentNt;). 1}. X'n '-.,' addition, the eonsultant will identify other options that Clarington may consider regarding the handling an44ispt:>sal of all munieipal waste. It is antic~pated that such an independent audit eould be performed for a eost nQt~ceeding $5000. Respeetfully submitted, Reviewed by, ~.~ Stephen A.. Vokes, P. Eng . Direetor of Public works ~\. W.H. Stockwell, Chief AdministrativeOff.icer SAv/ll1P February 11, 1998 1117 PROPOSED PRELIMINARY 1998 SOLID WASTE MANAGEMENT BUDGET SUMMARY 1997 BUDGET 1998 PRO FORMA I EXPENDITURES $ $ General Regional Overhead 1,868,100 1,947,400 Facilities Management 277 .600 277 .600 Sub-total 2,145,700 2,225.000 landfill Waste Haulage 2,749,000 2,846,000 Disposal 5;542,000 5,713,000 Perpetual Care of Former Landfill Sites 153,300 152.300 Brock Township Landfill Site 36.700 38.700 Sub-total 8,481,000 8,750,000 Blue Box Regional Processing 579,400 532,100 Collection 2.499.800 2.689.000 Sub-total 3 079 .200 3221 100 Contracted Processin9 Q 672.000 Sub-total Blue Box 3,079,200 3,893,100 Waste Manaaement Facilities 0per.itions 1,099,900 1,131,500 Transfer & Disposal . 2.071.900 2.420 500 Sub-total 3,171,800 3,552,000 Waste Reduction Education & Promonon 245,000 200,000 Capital Program 556,000 570,000 TOTAl GROSS EXPENDITURES 18,060;400 19,590,600 lESS: DIRECT RECOVERABlES AND REVENUES Sales of Recyclable Materials: Waste Management Facilities 143,000 197,100 Durham Recycling Centre 1,286,000 2,383,000 User Fees: Waste Management Facilities 524 000 552 900 TOTAL DIRECT RECOVERABLES & REVENUES 1,953,000 3,133,000 TOTAL NET EXPENDITURES 16,107,400 16,457,600 I FINANCING I Contribution From: Waste Development Charges ReseNe Fund Solid Waste ReseNe/Surplus Regional Portion of the local Tax Levy o 6,057,010 10.050390 50,000 1,687,861 14.719.739 TOTAL FINANCING 16,107,400 16,457,600 SOUD WASTE MANAGEMENT SYSTEM RATE (PER TONNE) $63.00 $86.00 Note: Approximately a $180,000 change in revenue or expenditure causes a $1.00 change in the waste system rate. 1118 ATTACHvENT NO. 1 REPORT WD-16-98