|
12.
RESPONSE TO WASTE DISPOSAL
ISSUES RELATED TO CARP AND TRAIL ROAD LANDFILLS RÉPONSE AUX QUESTIONS
DE RÉACHEMINEMENT DES DÉCHETS SOLIDES LIÉS AUX SITES D’ENFOUISSEMENT DE CARP
ET DU CHEMIN TRAIL |
Committee recommendationS
1.
That Council approve an amendment to the 2001
Settlement Agreement which states that Waste Management Canada reserves 90% of
available capacity for the City of Ottawa given the implementation of
negotiated tonnages for the years 2007 to 2011 at the Waste Management Canada
Carp Road Waste Facility;
2.
That Council receive this report for information.
RecommandationS du Comité
1.
Que le Conseil approuve une modification à l’entente à
l’amiable de 2001 stipulant que Waste Management Canada doit réserver 90 %
de la capacité de son installation du chemin Carp à la Ville d’Ottawa en raison
de l’application des tonnages négociés pour les années 2007 à 2011;
2.
Que le conseil municipal prenne connaissance du
présent rapport.
Documentation
1.
Deputy
City Manager's report Public
Works and Services
dated 5 November 2007 (ACS2007-PWS-UTL-0023).
2.
Extract
of Draft Minutes, 13 November 2007 follows the French version of the
report.
Report
to/Rapport au:
Comité de l’urbanisme et de l’environnement
and Council / et au Conseil
Submitted by/Soumis par : R.G. Hewitt
Deputy City Manager / Directeur
municipal adjoint
Public Works and Services / Services
et Travaux publics
Utility Services Branch / Services publics
(613) 580-2424, 22609, Dixon.Weir@ottawa.ca
1.
That the Planning and Environment Committee recommend
Council approve an amendment to the 2001 Settlement Agreement which states that
Waste Management Canada reserves 90% of available capacity for the City of
Ottawa given the implementation of negotiated tonnages for the years 2007 to
2011 at the Waste Management Canada Carp Road Waste Facility;
2.
That the Planning and Environment Committee and Council
receive this report for information.
1.
Que le Comité de l’urbanisme et de l’environnement
recommande au Conseil d’approuver une modification à l’entente à l’amiable de 2001
stipulant que Waste Management Canada doit réserver 90 % de la capacité de
son installation du chemin Carp à la Ville d’Ottawa en raison de l’application
des tonnages négociés pour les années 2007 à 2011;
2.
Que le Comité de l’urbanisme et de l’environnement
et le Conseil municipal prennent connaissance du présent rapport.
BACKGROUND
AND CITY STRATEGIC DIRECTION
(March 2003)
Landfill
That the City of Ottawa:
a) Retain its two landfill sites in public ownership as strategic assets that benefit the community.
b) Continue to reserve landfill disposal capacity within the City for locally generated solid waste.
c) Recognize the value of conserving landfill capacity, and consider the export of residential waste where economics warrant.
The City of Ottawa’s residential waste stream
is comprised of approximately 310,000 tonnes of materials. Of this amount, 70,000 tonnes is recycled
through the Blue and Black Box Programs, and 30,000 tonnes through the Leaf and
Yard Waste Program, leaving 210,000 tonnes for disposal. Approximately 140,000 tonnes of
residential waste generated per year are disposed of at the Trail Road Waste Facility. The remaining 70,000 tonnes of residential
waste is directed to other landfills in Ottawa, principally Waste Management’s
Carp Road Waste Facility.
In 2001, the City entered into an agreement with the owners of local landfills like Waste Management to secure the available landfill capacity for City of Ottawa solid waste. A key element of the agreement commits Waste Management to secure landfill space for waste generated within the city in exchange for the City’s commitment to direct a portion of its residential solid waste to the site. In this case, the maximum amount of private landfill capacity was secured should the City direct 30% of residential waste to this site.
Since 2001, the City has directed one-third, or approximately 70,000 tonnes, of the residential waste stream to the Waste Management’s Carp Road Waste Facility. This arrangement secured 90% of the facility for solid waste generated within the city. In addition to receiving the City’s residential wastes, the facility receives a large portion of the waste generated within Ottawa by the IC&I sector. The following information summarizes the disposal of residential and IC&I before the diversion of waste to the Trail Road Waste Facility.
Waste Management’s Carp Road Waste Facility is an important component in the City’s ongoing management of residential solid waste. Under the terms and conditions of the 2001 Settlement Agreement, the City currently directs approximately 70,000 tonnes of residential waste per year to the Carp Road Waste Facility. In 2007, the disposal of this waste was budgeted at $43 per tonne for a total budgeted cost of $2.94M. The distribution of the disposal of this waste is listed in table 1.
Table
1
|
|
Carp Road Landfill
Tonnes |
Trail Road Landfill
Tonnes |
Total
Tonnage
|
IC&I
|
120,000 ++
|
0
|
120,000
|
Residential
|
70,000
|
0
|
70,000
|
Total
|
190,000
|
0
|
190,000
|
++ Carp Landfill
receives IC&I beyond the 120,000 tonnes currently under negotiations.
Effective August 1, 2007, Waste Management (WM) reduced its operations at the Carp Road Waste Facility due to concerns regarding existing capacity constraints. It is WM’s plan to direct 120,000 tonnes of waste to the Trail Road Waste Facility for at least the next four years. Through the Trail Waste Facility Update Report (ACS2007-PWS-UTL-0016), Council was informed that the result of WM’s plan to reduce the tonnage of waste previously handled at their site had resulted in additional tonnage being diverted to the Trail Road Landfill Facility. Thus in August, WM began to direct approximately 70,000 tonnes annually of the City’s residential waste. In addition, 50,000 tonnes of the 120,000 of local IC&I waste that had previously gone to Waste Management was also directed to Trail Road due these operational reductions. The following information represents a summary of the current disposal scenario as it relates to WM’s disposals as of August 1, 2007.
|
|
Carp Road Landfill
Tonnes |
Trail Road Landfill
Tonnes |
Total
Tonnage
|
IC&I
|
70,000
|
50,000
|
120,000
|
Residential
|
0
|
70,000
|
70,000
|
Total
|
70,000
|
120,000
|
190,000
|
As noted previously, prior to August 1, 2007, the Trail Road Waste Facility was operated with the intent of disposing of approximately 110,000 tonnes of residential waste and 30,000 tonnes of IC&I waste per year. The additional 120,000 tonne of residential and IC&I waste exceeds the capacity of the current equipment and human resources.
As a result of consideration of the Trail
Road Waste Facility Update Report (ACS2007-PWS-UTL-0016) at it’s meeting on October 10, 2007, Council
passed the following motion:
BE IT RESOLVED
that Planning and Environment Committee Report, Item 4 be deferred to the 2008
budget discussions (except for the purchase of the compactor and the cover
system) and that until that time staff be directed to meet the 30% quota of the
City’s residential waste stream at Carp Road landfill in order to maintain the
City’s 90% preservation of the capacity at that landfill and that a full report
come back on the entire issue.
This report responds to Council’s direction to
report on the impact on the Trail Road Waste Facility as a result of Waste Management’s
decision to restrict the intake of solid waste at its Carp Road Waste
Facility.
The 2001 Settlement Agreement was developed to ensure that area landfills retained capacity to handle solid waste generated within the City. On a sliding scale, landfill capacity is retained for City waste dependent upon the amount of City generated residential waste directed to those landfills. The City’s strategy has been to maximize the volume retained for City solid waste by sending 30% of residential solid waste to the Carp Road Waste Facility.
The Settlement Agreement does not specifically address the issue should Waste Management not choose to accept City generated residential waste. However, discussions with Waste Management indicate they will retain the maximum available capacity for City generated waste despite not accepting the City offered volumes of residential waste. Staff will proceed to obtain an amendment to the settlement agreement with Waste Management, with Council’s approval of the negotiated outcome as outlined in this report.
The 2001 Settlement Agreement does not provide the City the ability to require Waste Management to accept certain types of waste. A negotiated outcome on the split of residential versus IC&I waste is the only ability for the City to adjust with some degree of certainty the waste arriving at the Trail Road Waste Facility.
Based on the above framework, staff has negotiated a split for the disposal of the additional 120,000 tonnes of residential and IC&I waste between the Carp Road Waste Facility and the Trail Road Waste Facility. The following information represents a summary of the negotiated outcome:
Table
3
|
|
Carp Road Landfill
Tonnes |
Trail Road Landfill
Tonnes |
Total
Tonnage
|
IC&I
|
35,000
|
85,000
|
120,000
|
Residential
|
35,000
|
35,000
|
70,000
|
Total
|
70,000
|
120,000
|
190,000
|
Under the terms of this negotiated agreement, Waste Management has agreed to continue to receive 35,000 tonnes of residential waste annually at its Carp Road Waste Facility. Effective January 1, 2008, this waste will be received at $44.08 per tonne for an operating cost of $1.54M. As a result of the negotiated outcome, the City is reducing the solid waste budget requirement for disposal at Carp Road by approximately $1.4M.
Waste Management will also redirect 85,000 tonnes of IC&I waste to the Trail Road Waste Facility. This will result in additional revenues to the City of Ottawa in 2008 of $6.545M. The increase in revenues will be modestly offset by a reduction in the Host Community Fees that the City currently receives from Waste Management. Host Community Fees from WM will go from a 2007 Budget amount of $300,000 to $35,000.
To summarize
City costs to send 35,000 tonnes to Carp = $1,542,800
Increased
revenues at Trail + Carp Host Community Fees =
($6,545,000) + ($35,000)
2008 Proposed Revenue Requirement Total ($5,037,200)
However, in order to adequately handle these additional tonnages in compliance with the Certificate of Approval at the Trail Road Waste Facility, as outlined in the previous report (ACS2007-PWS-UTL-0016), it is necessary to incur additional capital and operating expenses. Capital costs for 2008 are estimated at $1.65M (for equipment not approved on October 10, 2007) and additional annual operating expenses at $1.2M (fleet costs and FTE costs). As directed by the Council motion, these costs have been identified and included in the 2008 Draft Solid Waste Capital and Operating Budgets.
Table 4 summarizes the proposed landfill expansion site life. The table assumes that waste received at the site may fluctuate in the next few years as waste disposal technologies are investigated, but will then stabilize as disposal options are implemented.
The additional 120,000 tonnes/year of waste from the Waste Management Carp Road landfill for four years reduces the projected life of the Trail Road facility by approximately three years.
The site life calculation assumes that after the four-year period, the 120,000 tonnes will be redirected away from the Trail Waste Facility due to any combination of the following:
· Success of emerging technologies e.g. Plasco; and/or
· Additional landfill options become available.
Council recently approved three projects that will improve the overall site life of Trail Road:
For example, the Source Separated Organics Program is expected to remove up to 100,000 tonnes of waste annually from disposal once it is fully implemented. As a result of these decisions Table 4 has been updated (since the October 10th, 2007 report ACS2007-PWS-UTL-0016).
Due to recent decisions, the revised Trail Road facility site life is approximately 42 years, assuming baseline 2006 tonnages or 39 years with increased tonnage.
Please note that this forecast is
based upon only four years of increased loads from Waste Management. Should the
additional waste continue beyond four years further investigation would be
required to determine the long-term impacts on Trail Road Landfill.
Table
4
Updated -Landfill
Expansion Site Life
Stages |
Proposed Work |
Years of Operation(without the increased tonnages but including improvements) |
Years of Operation(with 4 yrs. of increased tonnages with improvements) |
|
Stages 1 and 2 |
Vertical Expansion |
2007 - 2021 |
2007 - 2018 |
|
Stages 3 and 4 |
Vertical Expansion |
2022 - 2036 |
2019 - 2033 |
|
Stage 5 |
New Landfill Cell |
2037 - 2049 |
2034 - 2046 |
In 2008, the City will commence work on its Residual Management Plan, which will include a Landfill Strategy as identified in the Integrated Waste Management Master Plan. This first step in that process will be to conduct an evaluation of the need for long term residual disposal capacity and the current projected availability of capacity. Key to that analysis is the outcome of the ongoing IC&I 3R Waste Strategy, which will enable staff to project waste residual requirements from the IC&I sector.
ENVIRONMENTAL IMPLICATIONS
Due to the City’s careful management of the Trail Road Waste Facility, it currently meets all provincial requirements and standards. At this point, it is expected that with the acceptance of this additional tonnage, additional operating expenses will be necessary to ensure cost-effective handling of these new wastes and to remain in compliance. If these 2008 draft budget pressures are approved, the Trail Road Waste Facility will continue to provide a long-term environmentally sound solid waste handling option for the City.
Approval
of this report will have no tax levy or rate implications for solid
waste since sufficient revenue and operating savings will be generated to
offset capital costs and operating expenditures.
Summary of Budget Impacts
The following table (5) summarizes the Solid Waste Services Operating
Budget impacts if approved:
Table
5
2008 Draft Budget Requirements
|
2008 |
|
|
Cost of
35,000 tonnes to Carp |
$1,542,800 |
|
Revenues from 85,000 tonnes to Trail |
($6,545,000) |
|
($ 35,000) |
|
|
Additional Fleet Costs for Landfill Equipment Additional FTE/Compensation Costs |
|
|
Net Impact |
($3,835,200) |
The 2008 Draft Budget pressures are as listed below:
+ $ 6,545,000 Increased
revenues at Trail
+ $ 1,397,200 Change in tipping fee paid to Carp ($2,940,000 - $1,542,800)
- $ 265,000 Change in Carp Host Community Fees ($300,000-$35, 000)
= $
7,677,200 Net
Revenue Savings
- $ 782,000 Additional
Fleet Costs for Landfill Equipment
- $ 420,000 Additional FTE/Compensation
Costs
$
6,475,200 2008
Net Budget Pressure Impact
Capital
requirements of $1.65M for new equipment that was not approved by Council on 10
October 2007 have been identified and included in the 2008 Draft Solid Waste
Services Capital Budget.
The
additional operational expenses $1.2M ($782,000 + $420,000) will be part of the
2008 Solid Waste Budget Approvals.