Council`s role

Nienke Itjeshorst
Solid Waste Services Manager
Kāpiti Coast District Council
Refuse and recycling collections in Kāpiti
NO Council kerbside collections
Commercial collectors only
1
• Why did Council get out of collections?
• How did we get to where we are now?
• What is Council’s role now?
Starting point: collections funded user-pays – no rates
2
before 2008
• Council operates a landfill for general waste
• Council sells and collects rubbish bags
• In principle bag sales would cover
- collection cost
- disposal cost at the Council landfill
in 2008 two major changes
3
(1) Closure of the landfill for general waste Jan 2008
(2) End of Council bag collection contract July 2008
Council’s position changes significantly
Changes and innovation were needed
Council’s choice: stick to user pays funding mechanism
4
2007- 2008
• Otaihanga Resource Recovery Facility
• Leased to MidWest 15 yrs in December 2008
• MidWest sets the gate fees at Otaihanga not Council
• Significant change of Council’s position in collection
market
5
2008
wish to start kerbside recycling
• Open tender for rubbish and recycling collection
- Contractor collects council rubbish bags
- Alternative tender sought for kerbside recycling
• Council explored ‘partnership’ between all collectors (4)
for co-funding kerbside recycling
6
July 2008
• 1 contract Council - Envirowaste (3+2)
- Council bag collection co-mingled
- recycling collection for Council bag users and the
contractor’s wheeliebin users
• All collectors agreed to ‘partner’
and fund kerbside recycling on behalf of their customers
7
• Council funds 50% of recycling contract cost based on
estimated collection market share of 50% of all
households
• Collectors pay the remainder to Envirowaste based on
customer number
8
• 60L crate – every week - urban
• ‘you have already paid for it’
incentive
• Collectors incorporate cost in
wheeliebin rate
• Council cost in bag price
• kerbside sort system
9
Recycling introduction - strategic success
• districtwide
• no rates funding
• all residents in urban area same service
• 1 collector for all households
• paved the way for introduction of collectors license in
July 2010
10
Operational perspective
• performance management resulted in complaints
decreasing every year to less than 10 calls/month
• education resulted in behaviour change and good
quality recycling
• Financially contract was not a succes for Council
11
• bag price went up from $1.90 to $2.85 in 08/09
• to $3.60 retail price in 11/2
• 41% of bagprice to cover Council’s recycling cost
• co-mingled collection worked out negative for Council
YOUR
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LOGO
sales go
down
bag price
increases
recycle
every week
collection
cost CPI
or the
the same
t
t
13
Council can’t be a
competitor
no offsett for
losses
14
• July 2012 – discussions tender process
• What did Council have to offer? – market share
• Could Council afford to tender for more than 1 year?
• Collectors: we meet our license requirement to provide
recycling and will carry on as we are
new
Fierce competition
Bag users are switching to
wheeliebins
2 collectors started selling bags for kerbside
collection, undercutting Council and each other
$2.50!
$3!
$2.25
Council bag sales drop even further
$3.60
16
Two choices discussed by Council
1.
fund kerbside recycling for whole district with rates
rates increase 1.2%
get out of bag collections
2.
exit all collections and leave collections to licensed
collectors
Decision was made to EXIT
17
Council’s role
Council licenses
collectors
Collectors have to
meet Bylaw requirements
‘kerbside recyclables’
determined by Council
resolution:
• plastics 1-7 (clean)
• paper/cardboard (clean)
• glass bottles/jars
• alu/steel cans
• supermarket bags
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Council’s role
• monitor collections for
compliance
• quarterly collectors
meetings
• assist and support
• enforcement
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EDUCATE !
YOUR
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LOGO