SWANA - NJ CHAPTER th and 21st Republic Services of NJ · 3 • Introduction to Republic Services (NJ) • Sustainability • Recycling Reimagined • Simple Solution • Automation
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Republic Services of NJ
SWANA - NJ CHAPTERApril 20th and 21st
2Republic Services Confidential
“The greatest difficulty in the world is not for people to accept new ideas, but to make them to forget about old ideas…”
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• Introduction to Republic Services (NJ)
• Sustainability
• Recycling Reimagined
• Simple Solution
• Automation
• Public-Private Partnerships
• Q&A
Republic Services Team
Gary SmalleyMunicipal ManagerSouth Plainfield, NJ
Jeff BrykSales SupervisorNew Brunswick, NJ
Agenda – Building Stronger Communities Together
4Republic Services Confidential
Introduction
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• Midco Waste Systems: New Brunswick & South Plainfield 2 Transfer Station –1 Public
• Marpal Disposal: Tinton Falls Public C&D Transfer Station
• Raritan Valley Disposal: Clinton Public Transfer Station
• Republic Services of NJ: Mount Laurel Transfer Station
Republic Services of New JerseyFortune 325
6Republic Services Confidential
Republic Service of New Jersey
• Same Company – More Options
• Same People – More Resources
• Same Equipment – More Innovative
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OLD
Garbage Company
Trash/Recycling
3 Person Collection
Compliant
No Risk - Recycling
Manual Processes
NEW
Environmental Company
Material Management
Automation (1 Driver)
Sustainable
Revenue Sharing
Digital/Simple Solutions
Think Different
Recycling Reimagined Overcoming Today’s Challenges…
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The Recycling Life Cycle
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Trends in Markets
• Glass has negative value in most markets, unless supported by subsidies
• Corrugated Cardboard on an average has decreased in price per ton for last 5 years
• End markets impacted by global slow-downs
• (Green Fence)
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Trends Implications
Material no longer in circulation18M tons in 2000 ~2M in 2015
Lighter-weight and limited end marketsHDPE off-spec PET
Lighter-weight and flexible packaging not recyclable
Tin can copolymer pouch
Trends in Material
Waste minimization increasing pressure on total waste and recycling tons
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Lightweighting of Material
Lightweighting requires processing of more material to yield a ton of marketable commodity
1. Pulp & Paper Weekly, Official Board Markets, 20163. International Bottled Water Association. Retrieved from http://www.bottledwater.org/
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Music storage devices have been reduced by up to 99.9%
1920’s 1970’s 1990’s 20091 iPod
0.34 lbs. 259 CD’s over 9 lbs.
350 cassettes over 70 lbs.
467 records over 200 lbs.
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Print media can now be accessed online
Newspapers Books One Kindle DX3,500 books
1.2 lbs.3,500 books nearly 2 tons
10 annual subscriptions Nearly 4 tons
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THE ISSUESEffects on Current Recycling Businesses
Tons CollectedNet Revenue
2011 2015
Working harder to process more tons, for a fraction of the revenue
Collection Prices do not cover costs
• Unable to subsidize from commodity sales
Light-weighting leads to more items per load
• We have more material to process per ton
Lack of Public Education and Contamination drives additional costs
• Cross contamination
• Disposal costs from residual
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Risk Mitigation
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• Partnership – Contracts structured to cover costs (with reasonable return), with shared upside (and downside) from commodities
• Service Changes – Potential changes can yield lower costs, without change in pricing to community. Allow day changes to increase competition. (1x per week to Every-Other-Week)
• Flat Rate Increase – Common approach to reconciling contracts (Contractor (hauler) owns ALL of the risk)
• Commodity-based Index – Similar to FRF, enables price adjustments based on market conditions
• Contamination Fees – Recognize added costs when contamination passes a certain level
Contract terms need to be durable to facilitate success
THE ANSWER(S)????Five Approaches to Durable Contracting
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Simple Solutions• My Resource
• E-Waste
• Universal Waste
• Republic Rewards
• Automation
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Automation: General Information
• Reduces waste volumes• Decreases disposal costs• Cleaner for the neighborhood• Carts are easy to use• The carts hold a lot• Safer for the resident and the worker• Promotes recycling – increase waste diversion• Easier for Residents• More efficient collections
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• Automation is safer for the customer and the worker. It results in fewer injuries and claims resulting in lower costs.
• Cart is easy to move by the resident (no dragging or lifting trash cans)
• Reduces employee turnover
The Safety of our Employees, Customers and your Community is
our #1 Priority.
Safety
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• Full automation is the most efficient means of refuse collection (One driver truck)
• Increased productivity, reducing time spent on the streets
• Automation refuse collection can also drive recycling efforts
• Bottom line: More cost efficient
Sustainability
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1. City issues bonds to fund purchase.
2. Contractor purchases carts and retains ownership at end of the contract.
3. Contractor purchases carts and ownership transfers to City at the end of the contract.
4. Grants??
Options to Fund Carts:4 Basic Options
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The Equipment
Trucks Carts
Senior citizens love the carts…
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• Cherry Hill Township: January 1, 2016
• Somerdale Borough: June 1, 2016
• Delran Township: January 1, 2017
Recent Republic Services “Conversions”
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• Cherry Hill Township: 15th
largest municipality in NJ• January 1, 2016 went fully
automated for Solid Waste and Recycling collection services
• 2015 – months January thru September : 14.953 tons
• 2016 - months January thru September : 13,893 tons
• Projection for ’16: Reduction in volume of 1,324 tons
• Financial disposal cost savings: $84,074
Proven Success Story!!
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Public-Private Partnerships
• 2% Cap• Anti-tax pressure• Increased
competition for capital expenses
• Tighter budgets due to lack of revenue
• Ever-growing demands for better services
Municipality Challenges
• Government is still in charge
• Privatization does not mean “loss of control”
• Governments role will be to serve as watchdogs by monitoring our performance and enforcing the contract for services
Government still Maintains a critical role with Privatization
• Lower Costs• Quality of
Services• Management
Efficiency
The Case for Privatization
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• Recent Bid Results• Examples of Bid Spec Language• Work Specifications• Sustainability Support• Community Engagement• Education• Cost & Risk Mitigation
Partnership Support
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Questions??
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