THE CORPORATION OF THE CITY OF NELSON

REQUEST FOR DECISION

DATE: January 7, 2019 Regular
TOPIC: Environmental Health Services
PROPOSAL: Review of Residential Garbage Collection and Disposal fees
PROPOSED BY: Staff
_____________________________________________________________________
ANALYSIS SUMMARY:
Each year Council review the rates it charges to collect and dispose of waste and
recyclable material as part of the annual budget process. The purpose of this review, is
to ensure that rates are set at a level that ensures adequate funds are available to cover
the annual operating expenses, which include an equipment usage charge, to provide the
service and fund the equipment reserve to allow for the future purchase of equipment.
For 2019 Council has determined that there will be no change to rates, however, as a
result of the discussion around composting Council has proposed resolutions on this topic
that need approval.

BACKGROUND:
The City of Nelson provides residential collection of waste (RDCK) and recycling
(RecycleBC). The RDCK and RecycleBC are ultimately responsible for disposal of these
materials. What can be collected at the curbside is outside Council’s purview and is
established by the RDCK for waste and RecycleBC for printed paper and packaging
materials.

On December 13 2018, the City of Nelson Council held public budget working sessions
to review the Environmental Health services operations and set the 2019 residential
customer garbage collection and disposal fees. Staff presented an overview of the
actual and projected 2018 operating expenses. As part of the presentation Staff noted
that the main challenge for 2019 is the decision on what type of truck to purchase as the
current equipment is at end of life and the City needs to eliminate the use of single use
plastic bags to collect recycling. The City’s current resource recovery curbside program
is very efficient in that both waste and recycling are picked up at the same time. Staff
need to find equipment and a process that would allow this to continue.

In addition, discussion ensued on the proposed RDCK curbside composting program.

There was concern regarding the cost and effectiveness of such a program and there
were suggestions from Councilors that a better “made in Nelson” program involving
education and subsidized residential on-site compositing containers would be more
effective in handling compost.

Some highlights from reviewing the operations and challenges for 2018 and 2019 are as
follows:
 The City renewed their contract for 5 more years with Recycle BC, starting
January 1, 2019.
 As part of the new agreement the City is estimated to receive an additional
$8,000 in revenue.
 The new contract commits the City to eliminate the use of blue bags for recycling
collection effective July of 2020.
 With the recommendation of no increase to fees this year it will be 12 years since
there was an increase in the collection fee and 8 years since an increase to the
 garbage tag disposal fee.
 Collection costs are in line with what was budgeted for 2018, however, the City
has seen a decrease in tipping fee expense as compared to budget and previous
years.
 Staff believe that the decrease in tipping fee charges is a direct effect from the
City’s public education and compliance program which is resulting in a reduction
in the amount of contamination in the recycling collection.
 The City will continue with the education of residents as to what is permitted in
the current blue bag recycling under the Recycle BC program.
 Staff will continue the education, compliance monitoring and enforcement of the
updated Waste Bylaw.

Based on the discussions with Council and the review of operations, Staff is
recommending no changes for rates in 2019.

The rates for a Single Family Dwelling (SFD) are

 $40.00 annual charge per household for collection of recycling & garbage
 $ 1.50 charge per garbage bag (tag) for disposal.

It is staffs opinion that the City of Nelson, through picking up both garbage and recycling
at the same time on a bi-weekly basis is one of, if not the most, efficient and cost
effective environmental health service program in the province for a community of our
size
BENEFITS OR DISADVANTAGES AND NEGATIVE IMPACTS:
Environmental Health Services are based on a fee for service model. The rates charged
must pay for operating and capital costs as well contribute to the equipment reserve to
fund future capital expenditures. Garbage and recycling collection and disposal are
core services of the City and must be properly managed to ensure that these services
can be provided into the future.

LEGISLATIVE IMPACTS, PRECEDENTS, POLICIES:

It is within Council’s authority to set the residential customer garbage collection and
disposal rates.

COSTS AND BUDGET IMPACT - REVENUE GENERATION:

The overall revenues will cover the projected cost increases for Environmental Health
Services operating and capital costs over the next year. The City collected approx.
$263,000 in fees (including tags and the annual fee) for the collection and disposal of
waste in 2018, which calculates to $68 per household annually.

The City pays additional fees to the RDCK as part of the Central Waste Service for
disposal of waste and to fund the RDCK’s recycling program. The City paid $62,000 in
tipping fees to the RDCK and the RDCK collected $865,000 in taxation from city
residents and businesses.

Under the newly signed contract with RecycleBC the City is expected to receive
approximately $142,000 per year for collecting recycling materials.

IMPACT ON SUSTAINABILITY OBJECTIVES AND STAFF RESOURCES:

N/A
COMMUNICATION:
Once the resolution has been passed and the amending bylaws for residential waste
and recycling rates are approved by Council, invoices with the rates will be sent out to
residents/businesses in late January to early February 2019.

OPTIONS AND ALTERNATIVES:

1. That Council passes the resolution
2. Refer the matter back to staff for further review

ATTACHMENTS:
 Schedule P (Residential Waste) of the Fees and Charges Bylaw
 Environmental Health Services 2019 budget presentation

RECOMMENDATION:
That Council passes the following resolutions:

That the residential waste rates as established in schedule P of the Fees and
Charges Bylaw remain the same for 2019.

THAT Council direct staff to allocate $20,000 from the recycling reserve to fund any
additional cost for public education including a staff position regarding household
composting not covered by operational revenue;

THAT Council informs the RDCK that the City will not participate in the RDCK
curbside composting program.

AUTHOR: REVIEWED BY:

_______________________________ ____________________________
CHIEF FINANCIAL OFFICER CITY MANAGER
 SCHEDULE "P" TO
FEES AND CHARGES BYLAW NO. 3092, 2008
*Amended by Bylaw 3362, 2016 – Schedule P added.
being a schedule of
RESIDENTIAL CUSTOMER GARBAGE COLLECTION AND DISPOSAL FEES

The following shall be the rates charged for collection and disposal of residential
garbage in accordance with the City’s Waste Management and Wildlife Attractant Bylaw

Description Annual Fee

Single Family Collection $40.00

Dwelling Units Disposal Garbage disposal tag on
each bag

Two-Family Dwelling Unit Collection $80.00

Disposal Garbage disposal tag on
each bag

Legal secondary suite within a Collection $40.00

single family dwelling unit Disposal Garbage disposal tag on
each bag

Multi-Family Dwelling Unit Collection $32.00

(properties with up to 10 units) Disposal Garbage disposal tag on
each bag

Residential Garbage Disposal Disposal $1.50 per tag

Tags
2019 – 2023 Financial Plan
December 13, 2018
History
1994 Limit set of 1 bag per week, additional bags cost $1. Start of tag a
bag program. Collection costs in taxation
1997 Collection costs taken out of taxation. Flat rate of $50/yr for 1
bag/wk. Additional bags required $2 tag each
2001 Flat rate of $74/yr for 1 bag/wk. Additional bags still at $2 tag each
2003 Flat rate $56/yr every bag tagged with $1 tag.
2004 Flat rate $57/yr every bag tagged no change to tag fee. Frequency
changed to bi-weekly for part of year
2005 Bi-weekly pickup continued, annual rate $57 but split between
collection $34.50 and recycling $22.50
Recycling fee collected in 2005 used for a zero waste coordinator,
the Rosemont curbside recycling pilot and enhanced education
programs. Excess recycling fees put into reserve for future recycling
initiatives
2006 Flat rate of $34.50/yr, every bag needs $1 tag, no recycling fee, bi-
weekly collection
History
2007 Flat rate increased to $40/yr, no change in tag fee, no change in
bi-weekly collection.
2008 No change in flat rate, tag fees increase to $1.20/tag, curbside
recycling begins and shortfall to be taken from reserve. Extra tag
revenue makes requirement from the reserve less than budgeted.
2009 No change in flat rate or tag fees; controlled operating costs
required less funding from reserve
2010 No change in flat rate, tag fees increase to $1.50/tag
2011-2018 No change in flat rate or tag fees. City has 3,852 households
May 2014 MMBC program (now Recycle BC program pays the City for
collecting recycling–provided $70K in revenue in 2014
2015-2018 The City has been receiving $134,000 in revenue from the Recycle
BC program for the years 2015 to 2018
2019 City signed a new 5 year contract with Recycle BC in October 2018
with a start date of January 2019. As part of the agreement is the
requirement that the City eliminates single use bag for collection
by July of 2020. Financial incentive increased to $142,000 a year
Enviromental Health Services
2017  2017  $ 
Actual Budget Variance 

Revenue
Tags 130,845 109,000 21,845
Billed 151,277 149,520 1,757
282,122 258,520 23,602

Expense
Collection 224,806 194,736 30,070
Tipping 60,354 77,333 ‐16,979
285,160 272,069 13,091
Surplus (deficit) ‐3,038 ‐13,549 10,511

* The average cost per household for curbside waste recovery (garbage and recycling) in 2017 was $74
Enviromental Health Services
2018  2018  $ 
Forecast Budget Variance 

Revenue
Tags 109,760 115,000 ‐5,240
Billed 153,231 153,000 231
262,991 268,000 ‐5,009

Expense
Collection 200,928 199,855 1,073
Tipping 61,390 77,333 ‐15,943
262,318 277,188 ‐14,870
Surplus (deficit) 673 ‐9,188 9,861

* The estimated average cost per household for curbside waste recovery in 2018 is $68
 No proposed increase in tag or flat fees in 2019
 Increase to wages will be based on the collective
agreement with an inflationary increase of 1.75%
to the other operational expenses for 2019
 Staff will continue with the education of residents
as to what is allowed and what is not allowed in
the current City blue bag recycling program
 In addition, staff will continue the education,
compliance monitoring and enforcement of the
updated waste bylaw
 Current garbage/recycle truck is getting to end of life
◦ Does the City purchase a similar dual compartment truck
◦ Purchase a truck that uses an automatic arm that would pick up
both garbage and recycling bins
◦ There does not seem to be a triple compartment truck on the
market currently
 City recently renewed the contract with Recycle BC
◦ New 5 year contract requires the elimination of collection through
blue bag single stream by July of 2020
◦ Contract only allows single stream collection by automated carts or
other solid/reusable container types
◦ Offering increase of $5 per household to move to multi-stream
collection
◦ All options appear to have a significant cost increase to the City
 Castlegar contracts out garbage/recycling pick-up at an
annual cost of $320k plus tipping fees, which amount to
an average of $100k annually for 3,176 households
 The estimated cost of adding compost pick-up is
$260K plus any allocated operating and capital
costs to undertake the program by the RDCK
 Compost could be supported if the City only paid
for their portion of the cost of recycling in the
central waste service and the remaining funds
they currently collect are used to fund
composting
 Risk of being committed to an RDCK service
where any expansion cost is significantly funded
by the City, as has happened in other services