julia wolfe, massdep using solid waste contracts as a tool to increase recycling and reduce waste...

Julia Wolfe, MassDEP

Using Solid Waste Using Solid Waste Contracts as a Tool to Contracts as a Tool to

Increase Recycling Increase Recycling and Reduce Wasteand Reduce Waste

Julia Wolfe, MassDEPJulia Wolfe, MassDEP

Commercial Waste Reduction CoordinatorCommercial Waste Reduction Coordinator

NEWMOA Conference, Sept 2005


Solid Waste ContractsSolid 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.


Use Your Solid Waste Contract as a Tool Use Your Solid Waste Contract as a Tool for Waste Reduction and Recyclingfor 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.


If your not recycling, you may be throwing

money away.


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

“Tipping” fees for trash:

$70-$120/ton

“Tipping” fees for recycling:

revenue generated - $60/ton

Term to Remember: Avoided Disposal Cost


Solid Waste Contracts 101Solid 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?


What’s in your contract?What’s in your contract?

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


What are the Charges?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?


What are you paying for…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


What are you paying for…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.


Identify Your NeedsIdentify Your NeedsKnowing 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?


What you are generating…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.


Adjust services or re-bid to Adjust services or re-bid to meet your needs.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.


Adjust servicesAdjust 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.


Adjust servicesAdjust 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


Re-BidRe-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.


Resource Management Resource Management ContractingContracting

“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.


RM In Action at Lemuel RM In Action at Lemuel Shattuck Hospital 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.


RM In Action at Lemuel RM In Action at Lemuel Shattuck Hospital 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.


ConclusionConclusion

Transparent chargesRequest monthly statements Adjust existing contract with proper

collection managementProvide incentives to reduce waste


Additional ResourcesAdditional Resources

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

There are lots of resources at your fingertips!


Julia Wolfe

Commercial Waste Reduction Coordinator

MassDEP617-292-5987

or

[email protected]

ContactContact

julia wolfe, massdep using solid waste contracts as a tool to increase recycling and reduce waste...

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