Item - 2015.BU6.2

The Budget Committee recommends to the Executive Committee that:

Rates and Fees:

1.         City Council adopt a 3% (2.25% annualized) increase on all Solid Waste Rates and Fees in 2015 as set out in Appendix A to the report (January 15, 2015) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer, to become effective on April 1, 2015.

2.         City Council approve the introduction of fees for the sale of Clean Fill from the Green Lane Landfill as set out in Appendix A to the report (January 15, 2015) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer.

3.         City Council approve the adjustment of the transfer station Drop and Load Fees to reflect market rates as set out in Appendix A to the report (January 15, 2015) from the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer.

4.         City Council allow Non-Residential customers that are or will be eligible to participate in the Waste Diversion Rate Waiver Program (adopted by City Council on July 8, 9, 10 and 11, 2014 – Item PW32.19 Waste Diversion Rate Waiver Program for Non-Residential Charitable Sector) and that apply for the waiver in 2015 only, to have such waiver apply retroactively from approval date back to April 1, 2015 regardless of when during 2015 the customer applies for the waiver.

Capital Budget:

5.         City Council approve the 2015 Recommended Capital Budget for Solid Waste Management Services with a total project cost of $11.796 million, and 2015 cash flow of $67.924 million and future year commitments of $231.718 million comprised of the following:

a.         New Cash Flow Funds for:

i.          40 new / change in scope sub-projects with a 2015 total project cost of $11.796 million that requires increased / (decreased) cash flow of ($53.017 million) in 2015 and future year cash flow commitments of $33.506 million in 2016; $20.623 million in 2017; $11.411 million in 2018; ($2.634 million) in 2019; $0.765 million in 2020; $0.061 million in 2021; $1.206 million in 2022 and ($0.125 million) in 2023;

ii.         42 previously approved sub-projects with a 2015 cash flow of $85.105 million; and future year cash flow commitments of $53.786 million in 2016; $27.240 million in 2017; $20.820 million in 2018; $18.045 million in 2019; $17.016 million in 2020; $13.389 million in 2021; $13.968 million in 2022 and $2.640 million in 2023; and,

iii.       13 sub-projects from previously approved projects with carry forward funding from 2013 and prior years requiring 2015 cash flow of $35.836 million which requires Council to reaffirm its commitment; and

b.         2014 approved cash flow for 14 previously approved sub-projects with carry forward funding from 2014 into 2015 totalling $8.083 million.

6.         City Council approve the new debt service costs of $0.616 in 2015 and incremental debt costs of $5.152 million in 2016; $7.606 million for 2017; $5.887 million for 2018; $6.431 million for 2019; $5.183 million for 2020; $5.137 million for 2021; $3.394 million for 2022; $2.049 million for 2023; and $1.851 million for 2024 resulting from the approval of the 2015 Recommended Capital Budget, to be included in the 2015 and future year operating budgets.

7.         City Council approve the 2016-2024 Recommended Capital Plan for Solid Waste Management Services totalling $372.114 million in project estimates, comprised of $15.985 million in 2016; $27.980 million for 2017; $67.913 million for 2018; $69.858 million for 2019; $69.116 million for 2020; $48.388 million for 2021; $15.281 million for 2022; $26.774 million for 2023; and $30.819 million in 2024.

8.         City Council consider operating costs (or savings) of $0.022 million net in 2015; $0.268 million net in 2016; ($1.143 million) in 2017; ($1.485 million) in 2018; ($1.956 million) in 2019; ($0.155 million) in 2020; ($0.117 million) in 2021; ($0.123 million) in 2022; ($0.122 million) in 2023 and ($0.117 million) in 2024, emanating from the approval of the 2015 Recommended Capital Budget for inclusion in the 2015 and future year operating budgets.

9.         City Council direct that, pending completion of a capital asset condition assessment, Solid Waste Management staff work with the Financial Planning Division to review the state of good repair of capital assets and report any changes as part of the 2016 Budget process.

Operating Budget:

10.       City Council approve the 2015 Recommended Operating Budget for Solid Waste Management Services:

11.       City Council approve the 2015 recommended service levels for Solid Waste Management Services as outlined on pages 22, 25, 29, 33 and 36 of the 2015 Staff Recommended Operating Budget for Solid Waste Management Services, and the associated staff complement of 1,108.7 positions.

12.       City Council request the General Manager, Solid Waste Management Services consult with the Financial Planning Division to finalize the Solid Waste Management Services performance measures prior to the 2016 Budget Process.

13.       City Council request the General Manager, Solid Waste Management Services and the Deputy City Manager and Chief Financial Officer to report back to the Public Works and Infrastructure Committee prior to the 2016 Budget process on the results of a study regarding price hedging agreements as a means of stabilizing, directly or indirectly, Solid Waste Management Services annual revenue from the sale of its recyclable materials.

14.       City Council direct the City Solicitor to submit the necessary bills to City Council required to implement the above recommendations.

The Budget Committee, at its meeting on February 13, 2015: