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8. APPROVAL OF SOURCE SEPARATED ORGANICS (SSO)
PROGRAM IMPLEMENTATION APPROBATION DE LA MISE EN OEUVRE DU programme des déchets organiques séparés à la source |
RecommendationS of the Planning and
Environment Committee
That Council approve:
a) The city-wide implementation of a Source Separated Organics (SSO) program to commence 1 March 2009; and
b) The
transfer in 2007 of one-time capital funds of $7.013 million from the Solid
Waste Compensation Reserve Fund to enable program implementation.
Recommendation of the
Corporate Services and Economic Development Committee
That Council
approve the award of RFP No. 00407-96871-P01 to Orgaworld Canada Ltd. for the
processing and marketing of the City’s residential source separated organics
for a period of 20 years.
Recommandations du comité de l’urbanisme et
de l’environnement
Que le Conseil municipal approuve :
a) la mise en œuvre, à
partir du 1er mars 2009, du Programme des déchets organiques séparés
à la source dans toute la ville;
b) le transfert, en 2007,
de fonds pour dépenses en capital ponctuels d’un montant de 7,013 millions de
dollars du Fonds de réserve compensatoire du Services de gestion des déchets
solides afin de permettre la réalisation du programme.
Recommandation du
comité des services organisationnels et du dÉveloppement Économique
Que le Conseil approuve l’octroi de la DP no
00407-96871-P01 à Orgaworld Canada Ltd. en vue du traitement et de la
commercialisation des déchets organiques séparés à la source pour une période
de 20 ans.
Documentation
1. Deputy City Manager's report (Public Works
and Services) dated 24 September 2007 (ACS2007-PWS-UTL-0019).
2. Extract of Draft Minute, Planning and
Environment Committee meeting of 25 September 2007 (follows the French
version of this report, and available in English only).
3. Extract of Draft Minute, Corporate Services and Economic Development Committee meeting of 2 October 2007 (follows the French version of this report, and available in English only).
DocumentS
1. Rapport du Directeur municipal adjoint (Services et Travaux publics) daté le 24 septembre 2007
(ACS2007-PWS-UTL-0019).
2. Extrait de l’ébauche du procès-verbal,
reunion du 25 september 2007 du Comité de l’urbanisme et de l’environnement (suit
la version française de ce rapport, et disponible en anglais seulement).
3. Extrait de l’ébauche du procès-verbal,
reunion du 2 octobre 2007 du Comité des services organisationnels et du
développement économique (suit la version française de ce rapport, et
disponible en anglais seulement).
Report
to / Rapport au :
Planning
and Environment Committee
Comité de l’urbanisme et de
l’environnement
and / et
Corporate
Services and Economic Development
Comité organisationnels et du
développement économique
and Council / et au Conseil
24 September
2007 / le 24 septembre 2007
Submitted
by/Soumis par :
R.G.
Hewitt, Deputy City Manager / Directeur municipal adjoint
Public
Works and Services / Services et Travaux publics
Contact
Person/Personne rsesource : Felice Petti, Manager/ Gestionnaire
Strategic & Environmental Programs / Services stratégiques et
environnementaux
613-580-2424 x 22226, felice.petti@ottawa.ca
SUBJECT: APPROVAL OF SOURCE SEPARATED ORGANICS (SSO)
PROGRAM IMPLEMENTATION
OBJET: APPROBATION DE LA MISE EN OEUVRE DU programme des déchets
organiques séparés à la source
REPORT RECOMMENDATIONS
2. That
the Planning and Environment Committee recommend Council approve:
a) The
city-wide implementation of a Source Separated Organics (SSO) program to
commence 1 March 2009; and
b) The
transfer in 2007 of one-time capital funds of $7.013 million from the Solid
Waste Compensation Reserve Fund to enable program implementation.
3.
That the
Planning and Environment Committee recommend that the Corporate Services &
Economic Development Committee recommend Council approve the award of
RFP No. 00407-96871-P01 to Orgaworld Canada Ltd. for the processing and
marketing of the City’s residential source separated organics for a period of
20 years.
RECOMMANDATIONS
DU RAPPORT
1. Que le Comité de l’urbanisme
et de l’environnement recommande au Conseil d’approuver :
a) la mise en œuvre, à
partir du 1er mars 2009, du Programme des déchets organiques séparés
à la source dans toute la ville;
b) le transfert, en 2007,
de fonds pour dépenses en capital ponctuels d’un montant de 7,013 millions de
dollars du Fonds de réserve compensatoire du Services de gestion des déchets
solides afin de permettre la réalisation du programme.
2. Que le Comité de l’urbanisme et
de l’environnement recommande au Comité des services organisationnels et du
développement économique de recommander à son tour au Conseil
d’approuver l’octroi de la DP no 00407-96871-P01 à Orgaworld
Canada Ltd. en vue du traitement et de la commercialisation des déchets
organiques séparés à la source pour une période de 20 ans.
BACKGROUND
Ottawa generates almost 330,000 tonnes of residential waste per year. Over 35% of the residential waste stream is organic and compostable (leaf and yard waste, and kitchen waste.) At present, most residential organic kitchen waste goes to landfill, with a small percentage processed through the City’s Compost Plus+ pilot project, or back yard composted by residents.
The City’s 2002 Integrated Waste Management Master Plan
(IWMMP) recommends implementation of a source separated organics program (SSO)
to divert this waste from landfill, and in 2005 Council directed staff to plan
for city-wide rollout of the program. Specifically, staff was directed to:
ü Draft the 2006
solid waste collection contracts to enable the separate collection of organics;
ü Apply to the
Federation of Canadian Municipalities’ Green Municipal Enabling Fund for grants
and loans to support implementation;
ü Solicit interest
from vendors of organics processing and marketing; and
ü Achieve 60% residential diversion from landfill by the end of 2008 through the above and related promotional and educational measures.
Accordingly, staff have:
· Drafted a new collections contract that provides for the addition of separate collection of organics;
· Secured a Federation of Canadian Municipalities (FCM) grant valued up to $1 million of the eligible costs to support program implementation;
· Set aside twenty-five million dollars in capital reserves for project implementation; and
· Run a competitive proposal for the processing and marketing of the City’s source separated organics program commencing spring 2009.
As per Council direction, this report presents the results of the procurement process, and provides the rationale for recommending that the contract be awarded to Orgaworld Canada Ltd.. It also outlines the other implementation requirements and costs associated with city-wide rollout of the SSO program, namely the:
· Purchase and distribution of organics collection carts;
· Notification of collection contractors, purchase of new fleet, and hiring and training of staff;
· Development of a Communication Plan; and
· Development of an Implementation Plan.
The benefits of this program are:
· Delay the need to develop a new landfill site for up to thirty years which could cost up to $120 million;
· Improve the diversion rate of residential waste from landfills to 60%;
· Reduce odour generation at local landfills and reduce impacts on neighbouring communities;
· Produce environmentally friendly soil thus reducing the need for chemical fertilizers;
· Reduce Green House Gas (GHG) emissions from local landfills;
· Create a potential for increased food waste diversion by the IC&I sector by providing a processing facility within local hauling distance; and
· Implement the City’s IWMMP in keeping with current Provincial policy direction.
The net annual incremental cost of the SSO program, with weekly residual garbage collection, on Solid Waste Services Division annual operating costs is estimated at approximately $13.1 million, which equates to $34/household/year (or $0.65/week).
Ottawa residents generate almost 330,000 tonnes of waste per year, of which 27% is kitchen organic waste (refer to Figure 1.) Currently, the City’s recycling programs successfully diverts approximately 32% of residential waste from landfill through paper and container recycling and leaf & yard waste composting. Separate collection and processing of kitchen organic waste is needed for Ottawa to achieve the 60% residential diversion target set out in the City’s Integrated Waste Management Master Plan.
Figure 1: Characterization of Ottawa’s Residential Waste Stream
Source: SWS, 2004 residential waste audit
Households that comply with the City’s waste by-law by participating in the blue and black programs and the kitchen organics program will produce, on average, less than two bags of residual waste every two weeks. Staff estimates that 60% to 80% of their waste will be picked up through the City’s organics and recycling programs.
DISCUSSION
Source
Separated Organics (SSO)
Landfills are nearing capacity throughout Ontario, and new or expanded
facilities are not only costly, but also increasingly unacceptable to the
public and therefore difficult to locate.
Ottawa will have a landfill disposal shortfall within 10 years unless
further action is taken to do more to increase diversion, expand landfills, or
implement other processing and disposal methods.
A citywide source separation program would
remove nearly 100,000 tonnes of organics going to landfill. Local development of this technology could
facilitate diversion of food wastes originating from restaurants, grocers,
hotels etc.—potentially diverting upwards of 60,000 t/y from landfill.
Diverting this material could provide an additional 20 to 30 years of life to
our existing landfill site.
SSO has been the subject of a number of reports to council, including the most comprehensive report that was presented in 2003 as ACS2003-TUP-UTL-0001. This matter was brought before the Environmental Advisory Committee in July 2005 and again in December 2006. Planning & Environment Committee last addressed this issue in March 2007.
In 2001, Council approved implementation of a pilot source separated organics (SSO) program: Compost Plus+. Since then, the City has offered collection of household organics to nine (9) communities comprising 5,300 households on a voluntary basis. The program has successfully captured and diverted approximately 2,000 tonnes annually of residential organics.[1] Diversion rates in participating communities averaged 49%, which is 15% greater than the City’s average diversion rate.
In June 2004, the Province issued Ontario’s 60% Waste Diversion Goal: A Discussion Paper, which sets out several approaches the Province is contemplating for the regulation of Ontario wastes. Key matters of note in the Discussion Paper are the following:
· “Diversion of organics through composting must be enhanced” to reach 60% diversion; and, “in the residential sector, the largest gains are likely to come from increased diversion of organics, both food and yard waste.”; and
· The Province indicates that it may phase in a waste diversion target of 60% by 2008 for municipalities with greater than 250,000 people (households or population to be confirmed): “These municipalities already have limited centralized composting infrastructure in place or have plans to develop centralized composting in the near future.”
Currently, over 3.5 million people in thirteen Ontario cities participate in source separated organics programs. Some municipalities, like the Town of Markham and Region of York, are already diverting over 70% of their waste.
The Province has stated its intention to mandate 60% residential waste diversion rates, with mandatory diversion of organics as the intended means to achieving that target.
In 2005, Council directed staff
to undertake the steps needed to enable city-wide implementation of a household
kitchen organics collection program, in keeping with the City’s 60% diversion
target. Specifically, staff was
directed to:
· Draft the 2006 solid waste collection contracts to enable the separate collection of organics;
· Make application to the FCMs’ Green Municipal Enabling Fund to support implementation;
· Solicit interest from vendors of organics processing and marketing; and
· Achieve 60% residential diversion from landfill by end of 2008 through the above measures.
As directed, the new residential waste collections contract provides for the separate collection of organics; successful application was made for a grant and loan from the FCM[2] to support implementation of a residential organics program; and, a procurement process was undertaken to secure organics processing and marketing services.
As requested by Council in approval of report ACS2007-PWS-UTL-0007 in April 2007, this report contains the all-in costs for implementation of a city-wide residential organics program. The estimated capital and operating costs are within the budgets set out in the City’s Long Range Financial Plan (LRFP). Accordingly, staff recommends approval to implement a city-wide SSO program.
SSO Processing
& Marketing Contract
The costs set out in this report are based upon acceptance of a bid from Orgaworld Canada Ltd. to process and market the City’s residential organics. Orgaworld was identified as a result of a comprehensive, competitive two-stage procurement exercise to secure processing and marketing services for approximately 100,000 tonnes of organics per year, representing upwards of one third of the City’s residential waste stream.
The process followed the requirements of the City’s Purchasing By-law, and was overseen by an independent third-party Fairness Commissioner.[3] Appendix A summarizes the process followed, and analysis carried out to enable identification of a preferred bid.
It should be noted that all of the firms that qualified under the RFQ process expressed significant concerns regarding the City’s Fall 2008 implementation deadline. Specifically, the firms felt that proposed regulatory approval and construction timelines were optimistic, and were unwilling to commit to them. Staff considered the issues raised and the potential of receiving no competitive bids and determined that it was advisable to postpone program implementation to Spring 2009.
As a result of the overall best value analysis, staff recommend contract award to Orgaworld Canada Ltd. for 100,000 tonnes per year for a contract period of 20 years. This recommendation is based on the assumption that Ottawa will supply a minimum of 80,000 tonnes of Source Separated Organics per year.
Orgaworld Canada Ltd. has secured an option to purchase an 8.9 ha. property immediately north of the City’s Trail Waste Facility, east of the Hwy. 416 on which to build its processing plant. Material unloading and the first stage of composting will occur inside an air quality and climate-controlled building. After a period of intense material breakdown, the composted product will be transported outside, and off-site if required, for further composting and curing. Key odour reduction elements include two biofilters and a bioscrubber with a 40 m stack. All design and operational details for the facility are subject to approval by the Ministry of Environment prior to commissioning.
Orgaworld proposes to phase construction of the facility to meet the capacity requirements of the City. The first phase of construction will allow for roll-out of the program in Spring 2009, with subsequent phases in place to address the peak of organic waste typically received in the Fall, and projected maximum processing requirements by early 2010.[4] The City will work with Orgaworld over the next several months to refine the implementation plan, and will report back to Council with details in the new-year.
This report does not include alternative schedule options for residual garbage collection (bi-weekly). However, staff will be reviewing contract negotiations with the City’s three collection contractors and will present findings to Committee and Council for consideration at the same time as a detailed SSO Implementation Plan is tabled in Q1 of 2008.
It is estimated that introducing bi-weekly collection of residual waste while implementing weekly organics collection would:
· Increase program participation and help to ensure that the 60% diversion rate is achieved;
· Reduce collection costs by approximately $1.89 million per year;
· Increase revenues from Waste Diversion Ontario (WDO) and increased market revenue from additional recycling capture by $1.5 million per year;
· Increase participation in the City’s recycling program, which in turn will boost revenues and funding received from Waste Diversion Ontario (WDO);
· Prolong the life of Trail Waste Facility; and
· Significantly reduce the enforcement requirements budgeted for the program.
ENVIRONMENTAL IMPLICATIONS
Implementation of a residential source separated organics program will yield several environmental benefits. The most obvious benefit is the potential diversion of 60% of residential waste from landfill, the extended life of Trail Waste Facility and, therefore, the deferred need to expand or establish new landfills with consequent impacts on the natural and built environment. Other benefits of a residential organics program include:
· Diverting organics from landfill will help to reduce odour generation at local landfills;
· Reducing Green House Gas (GHG) emissions;
· Reducing the impacts of local landfills on neighbouring communities;
· Producing environmentally friendly soil, which reduces the need for chemical fertilizers;
· Potentially increasing food waste diversion by the IC&I sector by providing a processing facility within local hauling distance.
RURAL IMPLICATIONS
As currently
conceived, the SSO program will be made available in rural villages and country
estate communities.
CONSULTATION / PUBLIC
NOTIFICATION
Extensive public consultation was done from 1996 through to 2005 on organics implementation including open houses, a public liaison committee, phone and paper survey feedback, and pilot monitoring and feedback from two separate pilots. This feedback has been presented in a number of reports to council, including the most comprehensive report that was presented in 2003 as ACS2003-TUP-UTL-0001. This matter was brought before the Environmental Advisory Committee in July 2005 and again in December 2006, at which times EAC endorsed implementation of a SSO program. Planning & Environment Committee last addressed this issue in March 2007 at which time representation from the public was heard in support of the initiative.
FINANCIAL IMPLICATIONS
The implementation of SSO, including the approval of the award of the SSO processing contract, will have the following budget impacts:
Capital Budget
Funding of $9.75 million for the organics containers has already been approved in the 2007 Capital Budget in Capital Account 900351 Waste Management Alternatives.
Total remaining capital budget authority of $7.013 million is required in 2007 upon approval of this report for program implementation. Funding for this requirement is available in the Solid Waste Compensation Reserve Fund, which had a balance of $14.9 million as of 1 July 2007.
Operating
Budget
Approval of this report has no Operating Budget or tax implications for 2007 and 2008 since the implementation of SSO is not scheduled until the spring of 2009. The total annual net operating budget requirements and tax implications of SSO for 2009 and 2010 are summarized in Table 5.
The net annual incremental cost of the SSO program, with weekly residual garbage collection, on Solid Waste Services Division annual operating costs is estimated at approximately $13.1 million, which equates to $34/household/year (or $0.65/week).
The 2009 part year costs/pressures and 2010 full year annualization of these costs will be identified in the 2008-2010 LRFP Operating Budget Pressures. Costs for 2011 and beyond will be subject to regular inflation for CPI contract increases and growth pressures due to changes in tonnages.
DISPOSITION
1. Public Works & Services will undertake the steps necessary to enable city-wide implementation of the SSO program commencing 1 March 2009.
2. Public Works & Services in cooperation with Supply Management will negotiate final contract terms and execute an agreement with Orgaworld Canada Ltd.
3. Financial Services will transfer funding from the Solid Waste Compensation Reserve Fund for the 2007 Capital Budget Authority requirements for program implementation.
4. Public Works and Services will identify additional operating costs in the 2008 LRFP for 2009 and 2010.
SUPPORTING DOCUMENTATION
Document 1 – RFP Process
Document 2 - Fairness Commissioners Report, Cover Letter
Document 1
RFP Process
The objective of the RFP was to secure SSO processing and marketing services for 100,000 tonnes of kitchen organics annually. The RFP was structured to allow proponents to bid one or more delivery options to enable staff to identify the terms that would yield the best overall value for the City:
· Service Contract (SC) to provide 25 kilotonnes (kt), or 50kt, or 100kt annual processing capacity at an existing approved facility for a period of 10 years, or 15 years, or 20 years.
· Design, Build, Own, Operate (DBOO) a facility on private property to provide SSO processing and marketing for 25kt, or 50kt, or 100kt annually for a period of 10 years, or 15 years, or 20 years.
· Design, Build, Operate (DBO) a 25kt, or 50kt, or 100kt capacity processing facility, on City property[5], for a period of 10 years, or 15 years, or 20 years.
· Design, Build, Own, Operate & Transfer (DBOOT) a 25kt, or 50kt, or 100kt processing facility, on City property, for a period of 10 years, or 15 years, or 20 years.
Two firms met the mandatory submission requirements and achieved a minimum technical score of 80%: Conporec Inc. and Orgaworld Canada Ltd., which submitted several pricing options. Four system options were developed and evaluated based upon the submissions received, as outlined in Table 1.
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Table 1 – System Options for the Provision of 100kt
Processing Capacity |
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|
System |
Proposal,
Type and Tonnage Option |
Contract
Term |
|
1 |
·
Orgaworld Canada Ltd. (DBOO), 100,000 t/yr ·
Lowest bid system. |
20 years |
|
2 |
·
Orgaworld Canada Ltd. (DBOO), 50,000 t/yr ·
Conporec Inc. (DBO),
50,000 t/yr ·
Lowest bid system that provided for City-owned
facility |
20 years |
|
3 |
·
Orgaworld Canada Ltd. (DBOO), 50,000 t/yr ·
Conporec Inc. (DBO),
50,000 t/yr ·
Lowest bid system that provided for City-owned
facility over shorter contract period |
15 years |
|
4 |
·
Orgaworld Canada Ltd. (DBOO), 50,000 t/yr ·
Conporec Inc. (DBOOT),
50,000 t/yr ·
Lowest bid system that provided for City-owned
facility without upfront capital financing |
20 years |
Best Overall
Value Evaluation
In accordance with the
RFP, the study team undertook a “Best Overall Value” analysis of the four
“systems” using comparative evaluation criteria that considered:
·
The annual cost of each
system, based on the gross Full Cost per Tonne;
·
The ability of each
system to be expanded;
· The degree of redundancy to mitigate risk; and
·
The ability of each system to provide long-term
capacity.
When assessed against the first criterion, System 1 was the only option that came within the budget set out in the Long Range Financial Plan (LRFP) and within the balance of the Waste Reserve Fund. All other options were a minimum of 25% more expensive and would require debt financing.
When assessed against the other three criteria, System 2 had several advantages over System 1, specifically:
·
Ability to expand by
100% to 200,000 t/yr to serve IC&I sector;
·
Provision of 50%
redundancy provided through operation of two separate plants;
·
Ability of one plant to
expand to meet full capacity requirement if required;
·
Guaranteed provision of
50,000 t/yr long-term capacity through facility ownership;
·
Ownership of fully paid
facility at end of 20-year contract with an approximate residual value of $15+
million and 10 years remaining operating life; and
·
Significantly reduced
tipping fee during last 10 years of operation (i.e. operating cost and capital
replacement fund only.)
However, the System 2 option would have entailed construction of two facilities in close proximity to each other, and at considerable additional cost (over $20 million beyond the monies available in the Waste Reserve Fund). The advantages of System 2 may have weighed more heavily in its favour if the two facilities were at either end of the City (resulting in lower hauling costs and greenhouse gas emissions); and, had there been a less significant difference in the capital and operating costs of the two systems which met Council’s direction to implement a program “within the financial resources set aside for this purpose…” Given the above overall best value analysis, staff recommend contract award to Orgaworld Canada Ltd. for 100,000 tonnes per year for a contract period of 20 years.
Orgaworld Canada Ltd. is a joint venture company comprised of Orgaworld International B.V. of The Netherlands, and Conestoga-Rovers & Associates Limited (CRA) a North American environmental management firm. Orgaworld designs, builds, owns, and operates several composting facilities in The Netherlands and was retained in 2005 by the Region of York to construct a 40,000 t/y facility (expandable to 150,000 t/y) for the composting of SSO. CRA operates across Canada, with an office in Ottawa, and will provide detailed design, construction and approvals management, and related engineering and planning services to the consortium.
Orgaworld Canada Ltd. has secured an option to purchase an 8.9 ha. property immediately north of the City’s Trail Waste Facility, east of the Hwy. 416 on which to build its processing plant. Material unloading and the first stage of composting will occur inside an air quality and climate-controlled building. After a period of intense material breakdown, the composted product will be transported outside, and off-site if required, for further composting and curing. Key odour control elements include two biofilters and a bioscrubber with a 40 m stack. All design and operational details for the facility are subject to approval by the Ministry of Environment prior to commissioning.
Orgaworld proposes to phase construction of the facility to meet the capacity requirements of the City. The first phase of construction will allow for roll-out of the program in Spring 2009, with subsequent phases in place to address the peak of organic waste typically received in the Fall, and projected maximum processing requirements by early 2010.[6] The City would work with Orgaworld over the next several months to refine the Implementation Plan, and will report back to Committee and Council with details in the new-year.
Implementation
Requirements and all-in Program Costs
Over the past five years, the City’s Compost Plus+ pilot has been used to assess different containers and bins, equipment, collection schedules, incentives and communication tools, and other options for the implementation of a source separate organics program. A detailed Implementation Plan will be developed for approval by Committee and Council next year based upon the lessons learned, feedback provided by the 5,300 households that have participated, and consultations with other municipalities.
In the meantime, the following tables outline the key implementation requirements and full cost implications of the program:
Table 2 presents the draft schedule for citywide implementation of a SSO curbside collection program.
Table 3 presents the one time capital costs required to implement the SSO program across the City, including the additional requirements for the City’s In House Collection Group that collects waste in Zone 3. Capital authority to be funded from the Solid Waste Compensation Reserve Fund will be required in 2008 and will be identified in the 2008 Draft Capital Budget.
Table 4 presents the regular on going operating costs are required to operate and maintain the SSO program. Note that changes in waste streams caused by the implementation of organics have impacts on other waste streams and their associated costs.
|
Table
2 – Draft Implementation Schedule |
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|
ITEM |
2007 |
2008 |
2009 |
‘10 |
|||||||
|
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
|
|
Processing Facility |
|
|
|
|
|
|
|
|
|
|
|
|
·
Contract Award |
|
|
|
|
|
|
|
|
|
|
|
|
·
Detailed Design & Approval |
|
|
|
|
|
|
|
|
|
|
|
|
·
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
·
Commission[7] |
|
|
|
|
|
|
|
|
|
|
|
|
Collection Carts |
|||||||||||
|
·
Tender |
|
|
|
|
|
|
|
|
|
|
|
|
·
Manufacture / Shipping |
|
|
|
|
|
|
|
|
|
|
|
|
·
Delivery to Households |
|
|
|
|
|
|
|
|
|
|
|
|
Collection Contract & Fleet |
|||||||||||
|
·
Contract Negotiation |
|
|
|
|
|
|
|
|
|
|
|
|
·
Tender New Fleet |
|
|
|
|
|
|
|
|
|
|
|
|
·
Fleet Production & Delivery |
|
|
|
|
|
|
|
|
|
|
|
|
·
Collections Staff Training |
|
|
|
|
|
|
|
|
|
|
|
|
Communications & Education |
|||||||||||
|
·
Communication Planning |
|
|
|
|
|
|
|
|
|
|
|
|
·
Design & Production |
|
|
|
|
|
|
|
|
|
|
|
|
·
Implementation |
|
|
|
|
|
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|
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|
|
|
Compliance Promotion |
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|
·
Planning |
|
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|
|
|
|
|
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|
|
|
|
·
Implementation |
|
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|
|
TABLE
3 - SSO Capital Costs |
|
|
Requirement |
2007
$ |
|
· Purchase & distribution of organics bins[8] |
11,925,000 |
|
· Communications, Education and Compliance Promotion |
1,450,000 |
|
· Start up costs for Zone 3 City In-House Collection Group |
|
|
· Organics Collection Vehicles (9 @ $312,000) |
2808,000 |
|
· Facility Upgrades for the In-House Group |
485,000 |
|
· Vehicles for Additional Inspector and Supervisor |
95,000 |
|
Total
Capital Requirements |
16,763,000 |
|
- Authority approved in 2007 Capital Budget |
(9,750,000) |
|
Balance of Capital Authority
Required in 2007 to be funded from Solid Waste Compensation Reserve Fund |
7,013,000 |
|
Minus
FCM Grant up to $1 million.* |
|
|
Fund Balance at July 1, 2007
- $15.7 million |
|
*Exact value of
grant to be determined based upon detailed Implementation Plan and actual
costs.
|
TABLE
4 – SSO Operating Costs |
||
|
ITEM |
2009 $ |
2010 $ |
|
Collection Contracts[9] |
Part
Year |
Full
Year |
|
·
New Organics Collection |
4,327,000 |
7,436,000 |
|
·
Savings in Residual/Regular Garbage Collection |
(1,856,000) |
(3,234,000) |
|
·
Savings in Leaf and Yard Collection |
(1,003,000) |
(1,686,000) |
|
·
Increase in Recycling Collection |
1,261,000 |
1,431,000 |
|
Net Increase of Collection
Contracts (A) |
2,729,000 |
3,947,000 |
|
RFP-Based Processing Contracts |
Part
Year |
Full
Year |
|
·
Organics Processing |
5,744,000 |
7,474,000 |
|
·
Recycling Processing (fibre and container) |
225,000 |
310,000 |
|
Total Impact on Processing
Contracts (B) |
5,969,000 |
7,784,000 |
|
In-House Collection Group for Zone 3 |
Full
Year |
Full
Year |
|
·
9 Vehicle Operator FTE’s to Operate New Organics Collection Vehicles
and 1 Supervisor |
565,000 |
585,000 |
|
·
Fleet Operating Costs for New Organics and Supervisor Vehicles (10 in
total) |
800,000 |
1,005,000 |
|
Total In-House Collection
Group (C) |
1,365,000 |
1,590,000 |
|
Other Costs and Revenues |
Full
Year |
Full
Year |
|
·
1 Additional Waste Inspector (Including Fleet O&M costs for 1
Vehicle) |
82,000 |
82,000 |
|
·
Ongoing Communications, Compliance Promotion and Program Support Costs |
416,000 |
416,000 |
|
·
Estimated increase in Recyclable Revenues and Waste Diversion Ontario
Funding |
(565,000) |
(757,000) |
|
Total Other Costs and
Revenues (D) |
(67,000) |
(259,000) |
|
Total Net Operating Costs (A+B+C+D) |
9,996,000 |
13,062,000 |
|
Approximate Tax Increase in Each Year |
1.0% |
0.3% |
|
TABLE
5 – Summary of SSO Operating Budget |
||
|
ITEM |
2009
$ Part Year |
2010
$ Full Year |
|
· Net Impact on Collection Contracts |
2,729,000 |
3,947,000 |
|
· Total Impact on Processing Contracts |
5,969,000 |
7,784,000 |
|
· Total In-House Collection Group |
1,365,000 |
1,590,000 |
|
· Total Other Cost and Revenues |
(67,000) |
(259,000) |
|
Total
Net Operating Costs |
9,996,000 |
13,062,000 |
|
Estimated Tax Increase in Each Year |
1.0% |
0.3% |
|
Approximate Share of IC&I Taxation (29%) |
2,898,840 |
3,787,980 |
|
Balance Funded from Residential
Taxation |
7,097,160 |
9,274,020 |
|
Total Cost per Household[10] (average assessment) |
$25.84 |
$33.66 |
|
Cost per Household per week[11] |
$0.59 |
$0.65 |
Document 2
August 08, 2007
Ms. Sally McIntyre
Program Manager
Environmental Programs
City of Ottawa
800 Green Creek Drive
Gloucester, ON
K1J 1A6
Sally.McIntyre@ottawa.ca
Processing and Marketing of Source Separated
Organics
Fairness Commissioner Report No. 2
Dear Sally:
We are pleased to submit
our Fairness Commissioner Report No. 2 which provides our
review and commentary on the implementation of the Processing and Marketing of Source Separated Organics procurement
initiative.
This Report covers the procurement management
activities undertaken during the Request for Proposals (RFP) Stage Two of the
procurement initiative.
In our opinion, all the procurement management
activities to-date have been conducted in an open, fair and transparent manner
without any actual or perceived conflicts of interest; without any compromise
to the fair and equitable treatment of all qualified proponents; and without
any compromise to the integrity of the process as a whole.
Sincerely,
Joan Ramsay
Principal