Republic Services of NJ

SWANA - NJ CHAPTERApril 20th and 21st

2Republic Services Confidential

“The greatest difficulty in the world is not for people to accept new ideas, but to make them to forget about old ideas…”

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• Introduction to Republic Services (NJ)

• Sustainability

• Recycling Reimagined

• Simple Solution

• Automation

• Public-Private Partnerships

• Q&A

Republic Services Team

Gary SmalleyMunicipal ManagerSouth Plainfield, NJ

Jeff BrykSales SupervisorNew Brunswick, NJ

Agenda – Building Stronger Communities Together

4Republic Services Confidential

Introduction

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• Midco Waste Systems: New Brunswick & South Plainfield 2 Transfer Station –1 Public

• Marpal Disposal: Tinton Falls Public C&D Transfer Station

• Raritan Valley Disposal: Clinton Public Transfer Station

• Republic Services of NJ: Mount Laurel Transfer Station

Republic Services of New JerseyFortune 325

6Republic Services Confidential

Republic Service of New Jersey

• Same Company – More Options

• Same People – More Resources

• Same Equipment – More Innovative

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OLD

Garbage Company

Trash/Recycling

3 Person Collection

Compliant

No Risk - Recycling

Manual Processes

NEW

Environmental Company

Material Management

Automation (1 Driver)

Sustainable

Revenue Sharing

Digital/Simple Solutions

Think Different

Recycling Reimagined Overcoming Today’s Challenges…

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The Recycling Life Cycle

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Trends in Markets

• Glass has negative value in most markets, unless supported by subsidies

• Corrugated Cardboard on an average has decreased in price per ton for last 5 years

• End markets impacted by global slow-downs

• (Green Fence)

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Trends Implications

Material no longer in circulation18M tons in 2000 ~2M in 2015

Lighter-weight and limited end marketsHDPE off-spec PET

Lighter-weight and flexible packaging not recyclable

Tin can copolymer pouch

Trends in Material

Waste minimization increasing pressure on total waste and recycling tons

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Lightweighting of Material

Lightweighting requires processing of more material to yield a ton of marketable commodity

1. Pulp & Paper Weekly, Official Board Markets, 20163. International Bottled Water Association. Retrieved from http://www.bottledwater.org/

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Music storage devices have been reduced by up to 99.9%

1920’s 1970’s 1990’s 20091 iPod

0.34 lbs. 259 CD’s over 9 lbs.

350 cassettes over 70 lbs.

467 records over 200 lbs.

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Print media can now be accessed online

Newspapers Books One Kindle DX3,500 books

1.2 lbs.3,500 books nearly 2 tons

10 annual subscriptions Nearly 4 tons

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THE ISSUESEffects on Current Recycling Businesses

Tons CollectedNet Revenue

2011 2015

Working harder to process more tons, for a fraction of the revenue

Collection Prices do not cover costs

• Unable to subsidize from commodity sales

Light-weighting leads to more items per load

• We have more material to process per ton

Lack of Public Education and Contamination drives additional costs

• Cross contamination

• Disposal costs from residual

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Risk Mitigation

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• Partnership – Contracts structured to cover costs (with reasonable return), with shared upside (and downside) from commodities

• Service Changes – Potential changes can yield lower costs, without change in pricing to community. Allow day changes to increase competition. (1x per week to Every-Other-Week)

• Flat Rate Increase – Common approach to reconciling contracts (Contractor (hauler) owns ALL of the risk)

• Commodity-based Index – Similar to FRF, enables price adjustments based on market conditions

• Contamination Fees – Recognize added costs when contamination passes a certain level

Contract terms need to be durable to facilitate success

THE ANSWER(S)????Five Approaches to Durable Contracting

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Simple Solutions• My Resource

• E-Waste

• Universal Waste

• Republic Rewards

• Automation

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Automation: General Information

• Reduces waste volumes• Decreases disposal costs• Cleaner for the neighborhood• Carts are easy to use• The carts hold a lot• Safer for the resident and the worker• Promotes recycling – increase waste diversion• Easier for Residents• More efficient collections

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• Automation is safer for the customer and the worker. It results in fewer injuries and claims resulting in lower costs.

• Cart is easy to move by the resident (no dragging or lifting trash cans)

• Reduces employee turnover

The Safety of our Employees, Customers and your Community is

our #1 Priority.

Safety

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• Full automation is the most efficient means of refuse collection (One driver truck)

• Increased productivity, reducing time spent on the streets

• Automation refuse collection can also drive recycling efforts

• Bottom line: More cost efficient

Sustainability

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1. City issues bonds to fund purchase.

2. Contractor purchases carts and retains ownership at end of the contract.

3. Contractor purchases carts and ownership transfers to City at the end of the contract.

4. Grants??

Options to Fund Carts:4 Basic Options

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The Equipment

Trucks Carts

Senior citizens love the carts…

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• Cherry Hill Township: January 1, 2016

• Somerdale Borough: June 1, 2016

• Delran Township: January 1, 2017

Recent Republic Services “Conversions”

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• Cherry Hill Township: 15th

largest municipality in NJ• January 1, 2016 went fully

automated for Solid Waste and Recycling collection services

• 2015 – months January thru September : 14.953 tons

• 2016 - months January thru September : 13,893 tons

• Projection for ’16: Reduction in volume of 1,324 tons

• Financial disposal cost savings: $84,074

Proven Success Story!!

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Public-Private Partnerships

• 2% Cap• Anti-tax pressure• Increased

competition for capital expenses

• Tighter budgets due to lack of revenue

• Ever-growing demands for better services

Municipality Challenges

• Government is still in charge

• Privatization does not mean “loss of control”

• Governments role will be to serve as watchdogs by monitoring our performance and enforcing the contract for services

Government still Maintains a critical role with Privatization

• Lower Costs• Quality of

Services• Management

Efficiency

The Case for Privatization

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• Recent Bid Results• Examples of Bid Spec Language• Work Specifications• Sustainability Support• Community Engagement• Education• Cost & Risk Mitigation

Partnership Support

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Questions??