Page 1 Municipality of Strathroy- Caradoc Page 1 of 2 Staff Report #: 04-14 Directed to: Mayor Vanderheyden and Members of Council Council Meeting Date: June 16, 2014 Prepared by: Matthew Stephenson Attachment(s): Department: Building and Waste Services BRA Power Point Presentation Subject: Bluewater Recycling Association (BRA) Contract Recommendation: That the Municipality enter into a two (2) year agreement with Bluewater Recycling Association (BRA), all in accordance with the staff report dated June 16, 2014 and further the Contract be referred to the next Council meeting for signing approval. Council has received a copy of the draft confidential agreement to assist in their direction. Background: Bluewater Recycling Association is a non-profit corporation governed by local Municipal representatives. It was founded by its member municipalities in 1989 when local rural communities had a desire to provide blue box recycling services to its residents and private industry was unwilling to provide that service. Since municipal corporations were not possible then, they created a non-profit corporation governed by elected representative (s) from each member municipality in essence forming a municipal cooperative that remains unmatched to this day. Prior to amalgamation, Caradoc Township has been part of this corporation from its inception. Strathroy also formed part of the corporation for a short time, then, opted out to operate with a private collection company; however, at the time of amalgamation re-joined and we have continued to utilize their service since 2000. Currently, Deputy Mayor Brad Richards sits on the board, not all member municipalities have representation on the board. The original buy in cost (% of share) for Caradoc Township was $84,000.00 in 1989, the Town of Strathroy also paid their equal share, and this amount was forfeited at the time the Town opted out, however re-joined with the amalgamated municipality in 2000 at no additional buy in share. Strathroy-Caradoc Council re-negotiated the waste and recycling contract with Bluewater Recycling Association in 2004, then again in 2009; this contract expires December 31, 2014, with a Draft Agreement before Council for approval this evening. Comments: January 2013 was the launch of the Wheelie Bin program for Strathroy-Caradoc, with significant capital investment on behalf of BRA. Three new trucks were purchased and over 15,630 bins for distribution throughout the Municipality. The roll out of this program topped $107,000.00 including deliveries, flyers, ads, etc. The program’s success has proven to be the most efficient and valued program to date.
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M u n i c i p a l i t y o f S t r a t h r o y - C a r a d o c
Page 1 of 2 Staff Report #: 04-14
Directed to: Mayor Vanderheyden and Members of Council
Council Meeting Date:
June 16, 2014
Prepared by: Matthew Stephenson Attachment(s):
Department: Building and Waste Services BRA Power Point Presentation
Subject: Bluewater Recycling Association (BRA) Contract Recommendation: That the Municipality enter into a two (2) year agreement with Bluewater Recycling Association (BRA), all in accordance with the staff report dated June 16, 2014 and further the Contract be referred to the next Council meeting for signing approval. Council has received a copy of the draft confidential agreement to assist in their direction. Background: Bluewater Recycling Association is a non-profit corporation governed by local Municipal representatives. It was founded by its member municipalities in 1989 when local rural communities had a desire to provide blue box recycling services to its residents and private industry was unwilling to provide that service. Since municipal corporations were not possible then, they created a non-profit corporation governed by elected representative (s) from each member municipality in essence forming a municipal cooperative that remains unmatched to this day. Prior to amalgamation, Caradoc Township has been part of this corporation from its inception. Strathroy also formed part of the corporation for a short time, then, opted out to operate with a private collection company; however, at the time of amalgamation re-joined and we have continued to utilize their service since 2000. Currently, Deputy Mayor Brad Richards sits on the board, not all member municipalities have representation on the board. The original buy in cost (% of share) for Caradoc Township was $84,000.00 in 1989, the Town of Strathroy also paid their equal share, and this amount was forfeited at the time the Town opted out, however re-joined with the amalgamated municipality in 2000 at no additional buy in share. Strathroy-Caradoc Council re-negotiated the waste and recycling contract with Bluewater Recycling Association in 2004, then again in 2009; this contract expires December 31, 2014, with a Draft Agreement before Council for approval this evening. Comments: January 2013 was the launch of the Wheelie Bin program for Strathroy-Caradoc, with significant capital investment on behalf of BRA. Three new trucks were purchased and over 15,630 bins for distribution throughout the Municipality. The roll out of this program topped $107,000.00 including deliveries, flyers, ads, etc. The program’s success has proven to be the most efficient and valued program to date.
Our program has nearly reached provincial diversion performance criteria, with over 80% success in the launch of the program with voluntary participation, which is continuing to grow. Disposal of our waste has seen a change in the last few months. BRA was disposing at both Green Lane in London as well as Twin Creeks Landfill in Watford. With the City of Toronto purchasing Green Lane, the option of dumping there was eliminated, so all disposal is now occurring at Twin Creeks. Costs for disposal have also risen, that in combination with an additional 700 tonnes of waste (increase in residential users as well as an increase from the industrial/commercial markets) saw an increase of approximately $86,000.00 from 2012; this additional cost was absorbed by BRA. Although we have seen an increase in users, BRA is prepared to honour the contract that is before Council using their current fee structure plus inflation for a two (2) year period. Strathroy-Caradoc has three components of the Waste Management program:
• Two transfer stations located in Strathroy and Mount Brydges • Waste Collection • Recycling Collection
The transfer stations are managed under contract by TRY Recycling. These facilities have provided a much needed outlet for our residents to dispose of any materials not provided through curb side collection, and they continue to be successful with over 1,000 residents visiting them through the month of April. The waste and recycling programs (co-collection) have been combined in the Bluewater Recycling Association Contract, the benefits of a co-collection program and single source contractor is:
• Less fuel burnt thereby conserving non-renewable resources • Less emissions produced thereby reducing atmospheric pollution • Less noise pollution (this will decrease further with the change to propane fuelled trucks) • Fewer impacts on the fragile transportation infrastructure (reducing the number of vehi-
cles required to collect waste and recyclables. • Increased efficiencies, collection completed in four days instead of five.
With the change to the wheelie bin system, BRA has experienced no loss time due to worker injuries as well as no WSIB claims in 2013. Consultation: Ralph Coe, CAO, Bill Dakin, Director of Finance and I met with Francis Veilleux, President, BRA to discuss this proposed agreement. Financial Implications: Subject to community growth and inflation, the proposed contract will have no financial impact over the 2014 approved budget, and will have minimal financial impact over the 2015/2016 provision for this service. Prepared by: Reviewed by:
________________________ _________________________ Matthew Stephenson Ralph Coe, CAO.
