Brady Landfill Put or Pay Industry Consultation Information Session. January 11, 2010 Canad Inns Polo Park
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1 Brady Landfill Put or Pay Industry Consultation Information Session January 11, 2010 Canad Inns Polo Park
2 Our recommendation That Council delegate authority to the Chief Administrative Officer to approve Put or Pay Agreements with high volume private waste haulers and other municipalities Brady Landfill Put or Pay Industry Consultation Information Session 2
3 Response to our recommendation October 13, 2009 Standing Policy Committee on Infrastructure Renewal and Public Works concurred October 21, 2009 Executive Policy Committee concurred October 28, 2009 Council referred report back to SPC on Infrastructure renewal and Public Works Brady Landfill Put or Pay Industry Consultation Information Session 3
4 Response to our recommendation November 10, 2009 The Standing Policy Committee on Infrastructure Renewal and Public Works directed us to consult with industry and that the delegations registered to speak at the Council meeting on October 28, 2009, be included in the consultation, for report back within 90 days. Brady Landfill Put or Pay Industry Consultation Information Session 4
5 What is a put or pay agreement? a legal contract that a hauler of commercial garbage will bring a predetermined amount of additional garbage to the Brady Landfill in exchange for a preferential tipping fee rate for the additional waste hauler pays the total contract price regardless if they have disposed of the agreed upon total the hauler must be bring waste to Brady Landfill that they wouldn t otherwise be bringing to our landfill the lower price compensates the hauler for the additional hauling cost to deliver to Brady Brady Landfill Put or Pay Industry Consultation Information Session 5
6 Example Currently company X collects a total of 10,000 tonnes: delivers 3,000 tonnes to Brady at regular rate ($33.50/tonne) delivers remaining 7,000 tonnes to other landfills Willing to bring 4,000 more tonnes to Brady Under a put or pay agreement: continues to deliver 3,000 tonnes to Brady at regular rate ($33.50/tonne) must deliver at least 4,000 tonnes at a reduced rate of $23.50/tonne (new revenue) Brady Landfill Put or Pay Industry Consultation Information Session 6
7 What a put or pay isn t A way to take hauler business away from other companies companies compete on many aspects, not just price An easy way to stop recycling part of agreement is monitoring total tonnes commercial recycling issue about cost and markets A decline in the tipping fees agreement is for additional tonnes, not all tonnes Brady Landfill Put or Pay Industry Consultation Information Session 7
8 Why are we doing this? Three landfills in Capital region pressure to compete for waste Overall waste stream has increased over last decade, yet Brady tonnage has remained flat Increase the revenue from Brady to assist the sustainability of other municipal programs (e.g., monitoring of 34 closed landfills, waste diversion and recycling) Brady Landfill Put or Pay Industry Consultation Information Session 8
9 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Commercial, industrial and other municipalities tonnage Brady Landfill Put or Pay Industry Consultation Information Session 9 January-96 April-96 July-96 October-96 January-97 April-97 July-97 October-97 January-98 April-98 July-98 October-98 January-99 April-99 July-99 October-99 January-00 April-00 July-00 October-00 January-01 April-01 July-01 October-01 January-02 April-02 July-02 October-02 January-03 April-03 July-03 October-03 January-04 April-04 July-04 October-04 January-05 April-05 July-05 October-05 January-06 April-06 July-06 October-06 January-07 April-07 July-07 October-07 January-08 April-08 July-08 October-08 January-09 April-09 July-09 October-09 Monthly Total Tonnage Metric tonnes per Month Metric Tonnes per Year BFI Landfill Opens October 1996 City raises tipping fee to $33.50 April 2008 City reduces tipping fee to $22.50 Feb 2000
10 Next steps Provide any comments to us, in writing, by Friday, January 15, 2010 Incorporate your feedback into report to Standing Policy Committee on Infrastructure Renewal and Public Works for consideration Tentative dates March 10 Standing Policy Committee on Infrastructure Renewal and Public Works March 17 Executive Policy Committee March 24 City Council Brady Landfill Put or Pay Industry Consultation Information Session 10
11 Questions and suggestions Brady Landfill Put or Pay Industry Consultation Information Session 11
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