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HomeMy WebLinkAboutINS-17-013 - Supplemental Information on City of Kitchener Process for Handling Aggregate Materials REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 6, 2017 SUBMITTED BY: Roslyn Lusk, Director, Operations – Roads & Traffic, 519-741- 2600 ext.4599 PREPARED BY: Roslyn Lusk, Director, Operations – Roads & Traffic, 519-741- 2600 ext.4599 WARD(S) INVOLVED: ALL DATE OF REPORT: February 1, 2017 REPORT NO.: INS-17-013 SUBJECT: SUPPLEMENTAL INFORMATION ON CITY OF KITCHENER PROCESS FOR HANDLING AGGREGATE MATERIALS ___________________________________________________________________________ RECOMMENDATION: For Information EXECUTIVE SUMMARY: This report is intended to provide additional context and information regarding the City of Kitchener’s aggregate process per Council’s request during the August 29, 2016 meeting, and to allow for approval of the deferred award of Schedule B of Tender T16- 025 (Supply and Delivery of Aggregates and Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads). Tender T16-025 will be presented to Council on March 20, 2017. In 2009, Staff report CSD-09-049 recommended that 10 acres of the Battler Yard property be retained to allow for flexibility in the aggregate recycling program. The aggregate processing at Battler Yard was cost effective for internal use, however it was not a constant and significant revenue generating process. In September 2015, staff presented INS 15-044 recommending Battler Yard as the site for the Snow Storage and Disposal Facility (SSDF) With staffing changes in the INS Department in late 2015 and early 2016, the adjustments to the KOF site space allocation to support the recycling function stalled. In 2016, Battler Yard was converted to the SSDF and materials storage relocated to the KOF in spring 2016. The Aggregate recycling set up is underway but not fully implemented at the KOF A site plan for aggregate processing will be in place spring of 2017 *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. IF1 - 1 An internal audit of the City’s aggregate and materials handling process is also currently underway and is expected to be reported to Council in Fall 2017 Sorting methods have been enhanced to better separate concrete, asphalt and mixed loads at KOF Aggregate processing (crushing) for internal use will be reinstated at the KOF pending confirmation through the internal audit there is value-for-money for this process There will always be a need to truck waste and unusable materials off site for proper disposal Schedule B of Tender T16-025 for the Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads was deferred on August 29, 2016 pending receipt of further information BACKGROUND: On August 29, 2016, Tender T16-025 (Supply and Delivery of Aggregates and Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads) was presented to Council for approval through report FCS-16-124. There was thorough discussion during the meeting which identified the need for more information regarding the aggregate process and materials handling at the City of Kitchener (City). Staff have provided information regarding: the history of the aggregate process at Battler Yard the 2009 analysis of the aggregate process standards affecting ability to use recycled aggregate materials the relocation of the aggregate process from Battler Yard to the KOF changes attributed to the relocation of the aggregate process to the KOF As the tender was prepared with separate schedules; one schedule for the supply and delivery of aggregates (Schedule A) and the other schedule for the pickup and disposal of scrap asphalt, concrete and mixed loads, (Schedule B), Council approved Schedule A and deferred Schedule B, to allow for City-wide operations which rely on the supply and delivery of aggregate to continue. This report is intended to provide additional context and information per Council’s request during the August 29, 2016 meeting and to allow for reconsideration of the award of Schedule B of Tender T16-025 (Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads). With the conversion of the Battler Yard to the Snow Storage and Disposal Facility (SSDF) in 2016, there is no longer an ability to continue the aggregate crushing operations at that location. Therefore, scrap asphalt, concrete and mixed materials generated through regular city maintenance activities such as sidewalk reconstruction, watermain and sewer repairs are now shipped to the KOF where they are occupying space and are not reusable in their current form (uncrushed). Therefore, Schedule B of Tender T16-025 (Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads) is required to facilitate the removal of the unusable materials from the KOF until the feasibility of re-establishing our own crushing operation is confirmed. IF1 - 2 REPORT: In addition to the information provided in this report, as identified in staff report FCS 16- 183 (2017 Service Review and Internal Audit Work Plan), an internal audit of the City’s aggregate and materials handling process has commenced and is anticipated to be presented to Audit Committee in Fall 2017. Staff members from Infrastructure Services – Operations – Roads & Traffic, Operations – Environmental Services, Supply Services, and INS Administration are working with the City’s Internal Auditor to conduct a value- for-money audit to determine the best options to handle materials generated through regular operations. The audit will include a comparative review of aggregate operations at other municipalities. What are Aggregates? Aggregates are any granular materials that are used in construction. For the City, the term ‘aggregate’ typically refers to crushed concrete materials, and/or crushed asphalt materials. As part of the City’s core services related to right of way maintenance and gas and water works, staff use aggregates and also generate material that can be transformed into recycled aggregates; both recycled concrete aggregate and recycled asphalt aggregate. How are Aggregates Generated? Where are Aggregates Used? Concrete material is generated through the following activities: removing sidewalks for replacement removing concrete curbs as a result of curb repair, sewer, and watermain/gas repairs removing concrete pads from playgrounds Recycled concrete aggregate can be used in the following instances: as bedding materials around sewers, gas lines, and watermains; to backfill holes created by utility cuts made to repair watermain breaks and install water/gas services to backfill deep potholes as base structural materials for replacement or new trail construction as base structural materials for sportsfields to repair gravel shoulders Asphalt material is generated through the following activities: utility cuts made to repair watermain breaks and to install water/gas services catchbasin and manhole repairs sewer repairs road repairs sidewalk and curb repairs IF1 - 3 Recycled asphalt aggregate can be used in the following instances: to backfill holes created by utility cuts made to repair watermain breaks and install water/gas services ditch repairs due to wash outs to repair gravel shoulders History of Aggregate Production at Battler Yard Until recently, staff from Operations - Roads & Traffic, Operations – Environmental Services and Kitchener Utilities (KU) divisions hauled concrete and asphalt materials (also known as removals materials) from a variety of core service activities, as described earlier, to the Battler Yard for crushing and reuse. The removals materials were stockpiled until a significant amount was available for crushing. Every two years, a contracted crusher was mobilized to the Battler Yard through a tender process to crush the materials into a granular material (concrete aggregate and asphalt aggregate) with the intent for reuse. In addition to materials generated through the City’s core services within the road right of way, contractors engaged by the City’s Engineering division to complete road reconstruction works on City roads were allowed to send removals materials to the Battler Yard for crushing and reuse by either themselves on City projects or by City forces in other applications. Over time, contractors completing road reconstruction works for Engineering realized a better cost-benefit existed for them to haul the removals materials to their aggregate supplier for crushing. The supply and install aggregate materials unit cost savings are realized by the City through the unit prices offered on tenders. Engineering contractors ceased hauling reconstruction removals materials to the Battler Yard in 2010. 2009 Analysis of the Aggregate Process (CSD-09-049) Staff report CSD-09-049, entitled the Consolidated Maintenance Facility (CMF) Project Update, in part, described the selection process for the location of the CMF, now called the KOF. The selection process for a suitable location for the CMF (KOF) contemplated the aggregate process at Battler Yard. In report CSD-09-049, it was noted that the aggregate recycling operation continued to be both a cost effective as well as environmentally responsible approach to handling waste concrete and asphalt. This conclusion was predicated on the fact that the aggregate process was a ‘break-even’ operation where the City was able to reuse ‘spent’ materials. The original approved budget for the CMF (KOF) project was based on the assumption that the aggregate recycling process at Battler Yard would be scaled back in size, by crushing materials into aggregate on an annual basis rather than bi-annual basis, meaning less aggregate would need to be stored, requiring less land area. As such, the report contained an analysis related to the potential revenue that may have been IF1 - 4 realized should the aggregate process be moved from the Battler Yard to CMF (KOF) lands. The funding considerations contemplated during the CMF (KOF) site selection included, in part, two options: the sale of the Battler lands in its entirety if the aggregate recycling process was relocated to the CMF (KOF) or the sale of a portion of the land (approximately 4 acres) at the CMF (KOF) that would not be required if the aggregate recycling process remained at Battler Yard.It was determined that either option would yield approximately the same net proceeds after considering the site preparation costs required for the land sale, and the amount of undevelopable land. With the infrastructure replacement program accelerating in 2009, there was expectation that there would be an increase in infrastructure maintenance and repairs, generating more materials available for recycling into aggregate for reuse. Standards Affecting Ability to Use Recycled Aggregate Ontario Provincial Standard Specifications for Municipal Public Works Projects (OPSS MUNI) 1010 is used as a basis for specifying the type, diameter, and quality of aggregates used in municipal infrastructure works. City projects use the OPSS as the guidelines. OPSS MUNI 1010 allows up to 30% recycled asphalt content in concrete aggregate. These standard specifications have been in place for a number of years, with the most recent revision in November 2013. City crews in Operations- Roads & Traffic, Operations- Environmental Services and KU have used the recycled concrete aggregate produced at the Battler Yard as structural fill, bedding material and backfill. The recycled materials were charged to the appropriate cost centres at a rate to cover costs to haul, sort and crush the material for reuse. A concern was raised regarding the asphalt content found in the recycled concrete aggregate generated at Battler Yard; specifically with respect to the material being used as bedding material around watermains. The issue has been revisited: OPSS MUNI 1010 has been reviewed in greater detail, and staff received an opinion from the Region of Waterloo Drinking Water staff. With the additional information, staff has determined that the recycled concrete aggregate generated internally is suitable for use. During the investigation to ensure suitability of use, material continued to be collected, resulting in surplus piles on the KOF site. With respect to the recycled asphalt aggregate produced at Battler Yard; more asphalt material is generated than can be reasonably be used by City crews. City Roads staff attempted to use the material for pothole repairs and to repair utility cuts, however the recycled material was deemed unsuitable for those applications. The consistency of the recycled asphalt proved difficult to use for pot hole repairs, it is difficult to grade, and it was found to not adhere as well as virgin materials purchased from off-site sources. However, asphalt aggregate has successfully been used to repair ditch wash outs and IF1 - 5 to stabilize gravel/granular shoulders. The City’s intent is to use as much recycled material as possible. In the past, attempts to sell the surplus recycled asphalt aggregate were unsuccessful, and the remaining asphalt aggregate was transported off-site at no cost by a larger- scale commercial asphalt recycler. The Relocation of the Aggregate Process from Battler Yard to the KOF In July 2016, the City’s lease for a plot of land on Ardelt Place used for snow storage expired and it was necessary to find an alternate location. In 2016, the Battler Yard was converted to the Snow Storage and Disposal Facility (SSDF), rendering the lands unavailable for removals material storage and aggregate production. Starting in spring 2016, removals materials from City maintenance activities began to be hauled to the KOF. In the absence of a specified area in the KOF yard designated for stockpiling and crushing, the removals materials are currently carefully sorted into three stockpiles for off-site disposal: uncrushed concrete; asphalt; and mixed loads via Schedule B of Tender T16-025 (Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads). Approximately 8,000 to 9,000 tonnes of recycled concrete aggregates previously processed at Battler Yard were hauled from Battler in preparation of the SSDF construction and stockpiled at the KOF for reuse by Operations and KU staff. Approximately 3,000 tonnes of recycled concrete aggregate produced at Battler remain at the KOF. It is expected that this stockpile with be depleted shortly; and virgin granular aggregate will be required to be purchased from the off-site supplier (Summit), via Schedule A of Tender T16-025 (Supply and Delivery of Aggregates) approved by Council on August 29, 2016. Changes Attributed to the Relocation of the Aggregate Process to the KOF With the development of the SSDF on the Battler Yard lands, the aggregate production process was relocated to the KOF and has subsequently undergone some changes. The following table identifies changes made between the historic process at Battler Yard and the current process at the KOF. DescriptionBattlerKOFChange in Process Yard Hauling removals Yes Yes No significant change materials from project location to yard Sorting Materials Yes Yes Sorting methods have been enhanced to better separate concrete, asphalt and mixed loads at KOF IF1 - 6 DescriptionBattlerKOFChange in Process Yard Crushing Materials Yes Pending Site plan for aggregate internalrecycling will be completed audit spring 2017. Crushing and recycling of useable material will be re-instated in fall 2017, pending validation through the internal audit. Off Site Disposal of Limited Yes Unusable material and surplus Materialsasphalt disposal will always be (Schedule B of Tender required. T16-025) Purchase of Virgin Limited Yes Limited amounts of virgin Aggregateaggregate materials for specific uses will always be (Schedule A of Tender required. However, re-instating T16-025)the production of concrete aggregate at the KOF, would reduce the need for virgin aggregates when recycled aggregate could be used. CONCLUSION: The aggregate production process has undergone a change since being relocated from the Battler Yard to the KOF. The changes are largely related to allocating designated space and comprehensive review of the overall process. The aggregate service review audit is currently underway. Operations – Roads & Traffic staff intend to have a site plan in place in spring 2017. The internal audit of the process is expected to be presented to Audit Committee in Fall 2017. In order to continue with City maintenance activities after Council’s deferral of Schedule B of Tender T-16-025 on August 29, 2016, a contract was established with Kieswetter on an interim basis to accept the material at negotiated unit rates until award of T16- 025. This report is intended to provide the supplemental information requested by Council on August 29, 2016 to allow for approval of Schedule B of Tender T16-025 (Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads). Awarding Schedule B of T16-025 will engage a one year contract for disposal of unusable material, which could be extended for up to two additional years if needed, upon mutual agreement. The tender was structured on a pay per unit basis, so at any point the City can increase/decrease both the amount of virgin aggregate material IF1 - 7 (Schedule A of T16-025) as well as the amount of removal of material (Schedule B of T16-025) without penalty. Both schedules of the tender are still required for the supply of virgin materials for specific locations (Schedule A) and the disposal of surplus scrap asphalt and mixed loads (Schedule B). Operations- Roads & Traffic staff will continue to manage the removals materials, sorting, and aggregate use process. Crushing operations will be reinstated at the KOF pending confirmation through the internal audit there is value-for-money for this process. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the City’s strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: There is no financial implication associated with this report. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: CSD-09-049 (Consolidated Maintenance Facility (CMF) Project Update) FCS-16-124 (T16-025 Supply and Delivery of Aggregates and Pickup and Disposal of Scrap Asphalt, Concrete and Mixed Loads) FCS-16-183 (2017 Service Review and Internal Audit Work Plan) ACKNOWLEDGED BY: Cynthia Fletcher, Interim Executive Director, Infrastructure Services IF1 - 8