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City of Unley & East Waste

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City of Unley & East Waste Regional Resource Sharing - collections Adam Faulkner General Manager East Waste [email protected] 0409 255 421 Presentation Format 1. Structure and Governance (boring, but important stuff…) 2. GPS, RFID, Telematics & bin weighing (exciting stuff...) 3. Benchmarking (back to boring…) 4. Education and Behaviour Change (exciting stuff to finish) A South Australian $1Billion industry . Waste management seen as an essential service, but it’s a big, maturing industry, exceeding $1B turnover in SA . Local Government is “responsible” for approximately 30% of SA’s waste generation – but actually Local Government generates very little waste . South Australian Councils either provide the service in- house (decreasing), contract the service out (commercial exposure), or form a Local Government Subsidiary to perform the services. Who is East Waste . A non-profit Regional Subsidiary established under the Local Government Act (SA) 1999 . Six Member Councils . Purpose is to collect and dispose/recycle Member Councils wastes, recyclables, FOGO, litter + public place bins, hard waste . Service approximately 30% of Metropolitan Adelaide per week (180,000 services per week) . >95% lids closed, bins upright! . Board of Directors & Independent Chairman . Purpose built depot, fuel supply, self- sufficient workshop and administration centre Our partnership in service delivery Services Council waste of collection Weekly recyclables of collection Fortnightly organics of collection Fortnightly organics waste in food HardWaste Call" "At Collection Bin Street/Park/Litter CustomerService Repairs/Maintenance/Replacements Bin tracking GPS RFIDtracking OrganicsProcessing Contract RecyclablesProcessing Contract promotion and Education Adelaide Hills Council x x x x x x x x x x x City of Burnside x x x x Trial x x x x x x City of Campbelltown x x x x x x x x x x x City of Mitcham x x x x x x x x x x City of Norwood Payneham & SP x x x x Partial x x x x x x x Corp Town of Walkerville x x x x x x x x x x x How do we do it? . East Waste is governed by a Charter . We employ 39 collection vehicles assigned as a “common fleet” . Member Councils only pay direct cost of the services without a commercial multiplier (non-profit) . Each Member Council has, or is developing, a Service Level Agreement . We use a unique cost allocation method based on GPS tracking . We are not constricted in service delivery efficiencies by Council boundaries . We track efficiencies using GPS timing, productivity rates, other industry metrics . >95% of bins returned to the kerb, upright, lids closed The numbers . We collect some 180,000 bins per week, every week, each day of the week (bar two) . >95% of bins returned upright and lids closed (an industry first) . Four years ago East Waste introduced GPS tracking to all collection vehicles . Two years ago East Waste introduced RFID tracking . This year East Waste is rolling out bin weighing on 3 trucks Governance . Each Member Council is an equal shareholder, and has equal voting rights . Each Member Council has a seat on the Board . Independent Chairman of Board and Audit/Risk Management Committee . Governed by a Charter, which is reviewed every 2 years . 10 Year Business Plan, Long Term Financial Plan, and Asset Management Plan . Risk Management Framework and Business Continuity Plan . Competitive Neutrality is managed . Covered by the LG Self Managed Insurance and Workers Compensation . Entry Point 1 – application and business case approved by Board and Member Councils . Entry Point 2 - Client Council – a Council Contract procured through competitive tender process . Exit Point – two years notice, and subject to any ongoing liabilities Allocating costs using GPS (time) Risk . People . Reputation (offline & on) . Operational . Financial/Contractual . Strategic . Workplace safety . IT/fraud/governance . Competitive neutrality . Value for money The local government subsidiary model is one way to reduce risk Risk . Compliance Risks – WH&S, LG Act, tax and revenue regulations . Contractual Risks – waste disposal and processing contracts, equipment, tyres fuel . Negligence Risks – property damage, reputation, maintenance, governance . Partnerships and JV’s – joining with another entity for risk and reward share . Risk Sharing – not unlimited, but equally split between Member Council . Legacy Risks – inheriting risk profile when joining, and carrying liabilities incurred whilst a member upon departure . Versus Benefits – waste industry is a scale industry with incremental savings multiplied by a larger scale operation Benefits of the Subsidiary Model . Non-profit . Increase in purchasing power for Member Councils (bins, fuel, tyres, vehicles) . Opt in (and out) of core services such as at-call hard waste, street litter, MUDs . Flexible and responsive to changes to industry conditions (e.g. recyclables processing) . Long term processing contracts in place . Innovation – GPS, RFID, at-call hard waste, bio diesel, low entry cabs, MUDs, HDCNG . Single customer service centre and lean administration . Common waste education and behaviour change messaging . No contract administration (hidden cost) Benefits of the Subsidiary Model . Common fleet used across all Member Councils . Council boundaries do not inhibit productivity . Well maintained fleet with a responsible vehicle replacement program . Reduced Member Council exposure to commercial markets . Any savings or revenue (recyclables) passed on to Member Councils at any time . Budgets, statutory reporting, auditing all aligned to local government . Member Council access to real-time web based GPS portal to assist with customer service and improve transparency around costing/charging Lets see it in practice…. https://pro.fleetmax.com.au/login.php How Does East Waste use GPS? Customer service and workflow interface linked to GPS/RFID tracking Real time access to fleet movements assists in customer service and reputation management East Waste “geofenced” areas allows time and efficiency monitoring What is the objective of using GPS/telematics/RFID? . Reduce risk . Future proofing . Driver safety . Real-time customer service (exceptions, photos) . Greater community amenity – less vehicle movements . Reduce cost and increase optimisation and utilisation . Asset management (whole of life bins, trucks) . Data…. Real time customer service Real time customer service Overfilling… Bins not out… No access… Bin repairs and replacements…. Contamination…. Illegal services… Prior spillage… ?????… Yes, that is a person. Really. Individual Bin Weighing . 3 Year truck supply agreement used to increase purchasing power . Tenderers to identify a (working and reliable) side bin weighing technology provider . We will be using the data to identify household behaviour, and measure effectiveness of education and promotion activities . Installation occurring on… East Waste Benchmarking project Methodology . Difficult to make like-for-like comparisons between councils . Council’s waste services differ in service levels, service areas, collection frequency and much more . Total collection costs therefore broken down to performance measures • Annual cost of collection (MSW, recycling, FOGO) per household serviced • Bin lift cost rates (MSW, recycling, FOGO) • Bin lifts per hour (MSW, recycling, FOGO) • Maintenance costs • Maintenance time per truck . Council-matching – LGA size, population, no. of households services, remoteness . Results ranked by population density Challenges in sourcing benchmarking data . The Challenge: how to convince Councils to provide data to a private company/ competitor . The Solution = Data Share . Data share offer was well received by most Councils approached Results MSW collections . On average, annual costs per bin slightly higher than the benchmark, by around $3-$5 . Costs per bin charged by East Waste are very competitive, particularly for the inner- metropolitan Councils . Benchmarks based limited data - some data excluded due to differing service frequencies Results Recycling collection . Costs for inner metro Councils: on average within 95 cents of the benchmark . Costs for Adelaide Hills Shire were moderately higher FOGO collection . Limited available data – not a common service . East Waste was within $2-3 of the industry average for three of the Member Councils Results Results Bin lifts per hour . East Waste average 163 lifts per hour, or 178 per hour for the East Waste metro Councils . Compared to the industry benchmark of 180 lifts per hour . Inner metro region close to benchmark – 174-187 lifts per hour Particularly competitive service efficiency for inner metro East Waste Benchmarking project Summary of Outcomes . Overall good performance . Bin lifts per hour for MSW particularly competitive . Possibly higher maintenance time than others . Generally higher costs, less efficient service for Adelaide Hills Shire Key Recommendations . More tailored approach for Adelaide Hills Shire . Improve bin lifts per hour for recycling, FOGO collections - Analysis of GPS tracking data, route optimisation - Assessment of compaction rates, load densities and truck load utilisation . Further analysis of maintenance times and workshop activities Common education & promotion . Reduction in services and budget of Zero Waste SA (GISA) . East Waste will facilitate projects that educate and promote responsible behaviour around reducing waste and improving recycling . Importantly, by doing this, East Waste will aim to leverage the zero waste levy funds from State Government .The result? Why Waste It?
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