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

Using Solid Waste Contracts as a Tool to Increase Recycling and Reduce Waste. Julia Wolfe, MassDEP Commercial Waste Reduction Coordinator NEWMOA Conference, Sept 2005. Solid Waste Contracts. Contracts – primary vehicle for solid waste service:

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

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  1. 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

  2. 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

  3. 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

  4. If your not recycling, you may be throwing money away. Julia Wolfe, MassDEP

  5. Recycling is not free – but it is often less expensive than disposal Term to Remember: Avoided Disposal Cost “Tipping” fees for recycling: revenue generated - $60/ton “Tipping” fees for trash: $70-$120/ton Julia Wolfe, MassDEP

  6. 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

  7. What’s in your contract? • Contract length • Materials collected (trash and recyclables) • Charges • Volume of waste/recycling containers • Collection frequency Julia Wolfe, MassDEP

  8. 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

  9. 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. GOAL: calculate the cost per ton of disposal/recycling of each material Julia Wolfe, MassDEP

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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 for business recycling company locator. • 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

  15. 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? • 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 Julia Wolfe, MassDEP

  16. 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

  17. 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

  18. 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

  19. 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

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

  21. Additional Resources There are lots of resources at your fingertips! • MA DEP’s Websitewww.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

  22. Contact Julia Wolfe Commercial Waste Reduction Coordinator MassDEP 617-292-5987 or julia.wolfe@state.ma.us Julia Wolfe, MassDEP

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