Using Solid Waste Contracts as a Tool to Increase Recycling and Reduce Waste

Julia Wolfe, MassDEP Commercial Waste Reduction Coordinator NEWMOA Conference, Sept 2005

Julia Wolfe, MassDEP

Solid Waste Contracts

  Contracts – primary vehicle for solid waste service: – two-thirds or more of the U.S. municipal solid waste stream is managed through contracts. Most contract managers don’t understand waste issues.  Solid waste is usually not a large part of the budget.  Solid waste costs rising and recovered materials markets are strong.

 Facility managers not taking advantage of cost cutting opportunities. Julia Wolfe, MassDEP

Use Your Solid Waste Contract as a Tool for Waste Reduction and Recycling  Solid Waste Contracts 101.

 How to get the most out of your SW contract.  Examples of specific tools to assist you.

Julia Wolfe, MassDEP

If your not recycling, you may be throwing money away.

Julia Wolfe, MassDEP

Recycling is not free – but it is often less expensive than disposal

Term to Remember:

Avoided Disposal Cost

“Tipping” fees for trash: $70-$120/ton “Tipping” fees for recycling: revenue generated - $60/ton Julia Wolfe, MassDEP

Solid Waste Contracts 101

 What’s in your solid waste contract?  What are you paying for?

 What are you really generating?

 How can you adjust services to meet your needs?  Should I re-bid?

Julia Wolfe, MassDEP

What’s in your contract?

– Contract length – Materials collected (trash and recyclables) – Charges – Volume of waste/recycling containers – Collection frequency Julia Wolfe, MassDEP

What are the Charges?

Unbundle charges – they should be transparent!

Trash Costs

•Trash container rental •Collection/hauling fee •Disposal facility charges (tipping charges)

Recycling Costs

• What materials are included? • What are the specific charges • recycling container rental/service • • transportation/hauling fee processing fee • Are you paid for any collected materials? Julia Wolfe, MassDEP

What are you paying for…

 Read your statements and keep track of your charges – in a spreadsheet if possible: – Is your service provider giving you a monthly statement that includes all charges? – – Determine what you are actually paying for. Does this match your contract? – Track your service and costs:   WasteWise Update "Measuring Waste Reduction" http://www.epa.gov/epaoswer/non hw/reduce/wstewise/pubs/wwupda3.pdf

Harvard University tracking spreadsheet at www.recyclemaniacs.org/tools-measurement.htm

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GOAL: calculate the cost per ton of disposal/recycling of each material

Julia Wolfe, MassDEP

What are you paying for…

 Monitor your current operations for a period of time: – How many times/week are containers picked up? – Are containers full when picked up?

– Is recycling being picked up? If not, why?

GOAL: determine if receiving the service you are paying for.

Julia Wolfe, MassDEP

Identify Your Needs

 Knowing the volume or weight of waste generated is the key to obtaining competitive bids: – Are there materials you are recycling that you could recycle more of? – Are there new materials that you would like to recycle? Julia Wolfe, MassDEP

What you are generating…

 – Conduct a waste audit/assessment to find out what’s really in your wastestream: Waste Audit Forms:   Earth911 Business Waste Audit Form: www.earth911.org/library/brrc/pdf/WasteAssForm .pdf

EPA’s Business Guide to Reducing Solid Waste: www.epa.gov/epaoswer/non hw/muncpl/pubs/red2.pdf

GOAL: to baseline your current trash and recycling levels.

Julia Wolfe, MassDEP

Adjust services or re-bid to meet your needs.

 Talk to others to find out what they are paying for trash and recycling.  Adjust existing service levels – Pick Up Savings:Adjusting Hauling Services While Reducing Waste: www.p2pays.org/ref/03/02098.pdf

 Re-bid if necessary. Julia Wolfe, MassDEP

Adjust services

 Discuss needs with existing service provider: – Make sure trash contract does not have minimum volume requirements. – Find a recycler: check www.cleanup.org

recycling company locator. for business  Structure pricing differently: – If using bins/dumpsters/toters, consider a cost per pickup rather than a cost per ton. Sometimes hard to get tonnage amounts on trucks that pick up at other facilities. Julia Wolfe, MassDEP

Adjust services

 Reduce trash container size. – Could fewer/smaller disposal containers be used?

– Would using pressure gauge on your trash compactors help you determine capacity?

 Reduce frequency of trash pick-up.

– If recycling, reducing amount of material going into trash. – Is an on-call service sufficient? Julia Wolfe, MassDEP Containers typically used: • Cubic yard bins/ dumpsters (typical sizes: 1, 2, 3, 6, 20, 30 & 40 cubic yard) • Small and large wheeled containers with lids • 30-40 cubic yard compactor boxes

Re-Bid

 Consider bidding trash and recycling separately.  Consider having primary bid to recycler who subcontracts trash.  Let potential contractors review your operations before bidding.

 Send RFP to at least 3 service providers.

 Consider a Resource Management Contract – see Lemeul Shattuck Hospital Case Study.

Julia Wolfe, MassDEP

Resource Management Contracting

“THERE ARE NO WASTE STREAMS, ONLY WASTED RESOURCES” — Raj Mishra, General Motors Corporation, 1999

 Resource management (RM) compensates waste contractors based on performance in achieving waste reduction goals rather than the volume of waste disposed.  Incentives for innovative approaches that to cost-effective resource efficiency through prevention, recycling, and recovery.

Julia Wolfe, MassDEP



RM In Action at Lemuel Shattuck Hospital

Replaced 35 yd. compactor with 40 yd. compactor. Service level reduced: 3x - 2x/wk. $400/month savings.  Eliminated 40 yd. dumpster for bulk debris. Savings from dumpster rental (approximately $100/month), hauling and disposal costs. Temporary dumpster rented if needed.  New recycling: cardboard, organics, scrap metal, pallets and electronics  Reduced administrative overhead – one contract as opposed to many.  Excellent relationship between contractor and hospital. Julia Wolfe, MassDEP

RM In Action at Lemuel Shattuck Hospital

   In FY’04 Shattuck saved $11,000 and diverted 44 tons of material to recycling. Excellent relationship between contractor and hospital.

RM provider will be compensated about $10,000. Julia Wolfe, MassDEP

Conclusion

 Transparent charges  Request monthly statements  Adjust existing contract with proper collection management  Provide incentives to reduce waste Julia Wolfe, MassDEP

Additional Resources

There are lots of resources at your fingertips!   MA DEP’s Website www.mass.gov/dep/recycle MA DEP’s Resource Management Website: http://www.mass.gov/dep/recycle/files/rm/rmcontr.htm

 Join the MA WasteWise Program www.epa.gov/wastewise  Earth 911 or Cleanup.org

www.cleanup.org

Julia Wolfe, MassDEP

Contact

Julia Wolfe Commercial Waste Reduction Coordinator MassDEP 617-292-5987 or [email protected]

Julia Wolfe, MassDEP