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Nienke ItjeshorstSolid Waste Services Manager Kāpiti Coast District Council

Refuse and recycling collections in Kāpiti

NO Council kerbside collections Commercial collectors only

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• 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

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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

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(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

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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

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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

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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

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• 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

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• 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

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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

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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

12YOUR LOGOYOUR LOGO

• 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

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sales go down

collection cost CPIor the

the same

bag price increases

1 bag sold ≠

1 crate paid for

tt

recycleevery week

bag out

once a

month!

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no mechanism to

deal with market

movementCouncil can’t be a

competitor

no flexibility in

price setting

no offsett for losses

• 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

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Fierce competition

Bag users are switching to wheeliebins

2 collectors started selling bags for kerbside

collection, undercutting Council and each other

Council bag sales drop even further

newLOW COST BINS

$3!

$2.50!$2.25

$3.60

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Two choices discussed by Council

1. fund kerbside recycling for whole district with ratesrates increase 1.2%get out of bag collections

2. exit all collections and leave collections to licensedcollectors

Decision was made to EXIT

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Council’s role

Council licenses collectors

Collectors have tomeet 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 LOGOYOUR LOGO

Lead by

example!

Regional A

ction!

Levy Fundin

g