ANNUAL REP OR T
CONTENTS
MESSAGES | THE MINISTER OF ENVIRONMENT, THE CHAIRMAN, THE EXECUTIVE DIRECTOR
PAGE 4
MISSION
PAGE 7
MANDATE
PAGE 8
GOVERNANCE
PAGE 9
SSTC – THREE PHASES PAGE 10
REVENUE GENERATION – TIRE RECYCLING FEES
PAGE 1 1
MANAGING RESPONSIBLY – WHAT GETS MEASURED, GETS MANAGED
PAGE 12
ACCOUNTABILITY & TRANSPARENCY
PAGE 13
PROGRAM HIGHLIGHTS
PAGE 14
PARTNERSHIPS
PAGE 15
COMMUNITY INVOLVEMENT & GIVING
PAGE 16
EDUCATION & AWARENESS
PAGE 17
SSTC BOARD OF DIRECTORS & STAFF
PAGE 35
APPENDICES
APPENDIX A: 2014 SCRAP TIRE SUPPLY
PAGE 19
APPENDIX B: 2014 SCRAP TIRE COLLECTION & TRANSPORTATION PAGE 20
APPENDIX C: 2014 RECOVERY RATES
PAGE 21
APPENDIX D: 2014 SCRAP TIRE PROCESSING & MANUFACTURING
PAGE 22
APPENDIX E: BLACK GOLD RUSH PROGRAM HIGHLIGHTS PAGE 23
APPENDIX F: COMMUNITY DEMONSTRATION GRANT RECIPIENTS
PAGE 25
APPENDIX G: 2014 FINANCIAL STATEMENTS
PAGE 26
2 0 1 4 A N N U A L RE PO R T
A ME S S AG E
FROM THE MINISTER OF ENVIRONMENT
On behalf of the Government of Saskatchewan, it’s my pleasure to congratulate
the Saskatchewan Scrap Tire Corporation on another busy and successful year
of recycling tires in our province.
Every year, Saskatchewan generates the equivalent of one million passenger
car tires as scrap. Thanks to the good work of the Saskatchewan Scrap Tire
Corporation, these tires are diverted from the landfill and recycled into many
useful products such as rubber mulch and speed bumps.
In 16 years of operating an industry-led, province-wide recycling program
for scrap tires, the Saskatchewan Scrap Tire Corporation has overseen the
collection and recycling of more than 20 million passenger car tires. This
includes tires collected by its 1,375 registered retail tire dealers, as well as tires
from landfill and private stockpiles.
With Saskatchewan’s growing economy and population, the Saskatchewan
Scrap Tire Management Program and other provincial recycling programs are
an extremely important part of making sure that our environment is protected
and our quality of life is maintained.
The work that Saskatchewan Scrap Tire Corporation does contributes to the
environmental sustainability of our province. I offer my appreciation and wish
you continued success in 2015.
Sincerely,
Scott Moe
4
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
A ME S S A GE
FROM THE CHAIRMAN
On behalf of the Board, I am pleased to present the SSTC’s 2014 Annual Report.
This report outlines our achievements over the past year and demonstrates
our continued ability to deliver programs that are successfully diverting tire
waste from our landfills across the province.
Tire diversion from landfills continues to be our priority, and in 2014 we once
again increased the number of scrap tires collected and recycled. We also
increased the number of municipalities that benefited from the one time cleanup of historical scrap tires under Phase 3 of our program. Overall, we cleaned
up well over 52 million pounds of scrap tires from landfills and private lands in
Saskatchewan -- a very notable success. With the mandate to ensure that all of
Saskatchewan’s eligible scrap tires are collected and recycled responsibly, we
will continue to promote the benefits of the SSTC’s programs for the people
of Saskatchewan, and educate the public on the importance of recycling scrap
tires.
Our continued success is undoubtedly due to our people. On behalf of the
SSTC’s Board, I would like to thank our team for their efforts and congratulate
them on their achievements. The SSTC has a tremendously knowledgeable,
committed and focused staff whose strong relationships with collectors,
processors, and retailers have strengthened and enhanced the SSTC’s
programs. We wish them, and all of our stakeholders, continued success in
2015.
Sincerely,
Lanny McInnes
5
2 0 1 4 A N N U A L RE PO R T
A ME S S AG E
FROM THE EXECUTIVE DIRECTOR
Managing responsibly continues to be a re-occurring theme for the SSTC,
and in 2014 we achieved this through some very strategic changes that were
needed to ensure program sustainability.
The SSTC was able to implement many of the strategic plans outlined in our
2014-2018 Program Management Plan, which included a change in the rates
paid by the consumer when purchasing new tires. We were also able to focus
on our commitments to historical scrap tire material found on private land
across the province. The SSTC has a very dedicated plan to complete this
program objective.
We also continued down the path of scrap tire recovery and embarked on an
education campaign coined as, “What gets measured, gets managed.” Over the
last two years, the SSTC has developed metrics for many aspects of the scrap
tire business, with the largest focus being on tire recovery. Various metrics
have been shared with collectors and select retailers, and, going forward, these
metrics will continue to be the focus of the SSTC.
We look forward to working with our stakeholders and partners to provide a
strong and sustainable program.
Sincerely,
Theresa McQuoid
6
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
MISSIO N
T H E M I S S I ON O F T H E S S T C IS T O DE VE LO P ,
IM P L E M E N T A ND M A I N T A I N A S I N G LE COS T EF F E C TI V E, PR O V IN C E W I D E T I R E R E CY CLI N G
PR O G R AM O N B E H A L F O F I T S S TAKE HOLDE R S
AN D TH E P E O PL E O F S A S KA T C HE WAN . AS
SU C H , TH E S S T C IS A C C O U NT A B LE T O I T S
STAK E H O L D E R S , T H E PR O V IN C I AL G O VE R N M E N T ,
AN D TH E P U B L I C , FO R T H E C O L LE CT I ON ,
PR O C ES S I N G, A N D E N V I R O N ME NT ALLY S OUN D
DI S P O S AL OF S C R A P T IR E S IN SAS KAT CHE WAN .
7
2 0 1 4 A N N U A L RE PO R T
MAN DATE
The Saskatchewan Scrap Tire Corporation, established in 1996, is a provincially
incorporated, non-profit organization governed by a seven member volunteer
board. The SSTC is the only organization approved by the Ministry of
Environment to administer a Product Management Plan for scrap tires, on
behalf of tire retailers and sellers that are required to meet the terms set out in
The Scrap Tire Management Regulations (1998).
The Scrap Tire Management Regulations (1998) contain two requirements
that make the SSTC unique amongst its Canadian peers, the uniqueness of
which has material implications for both the operations and the financial
requirements of Saskatchewan’s product management plan for scrap tires
(2014 – 2018). The requirements are:
1. Collection and recycling of stockpiled scrap tires must, by regulation, be included
in the approved scrap tire management programs. Saskatchewan is the only
western province to include this requirement in the regulation. The two programs
that fulfill this requirement are branded as the Black Gold Rush program and the
Return to Retailer (R2R) program.
2. All types of scrap tires must be accepted for collection, recycling and management,
including tires used on farming and agricultural machinery, as well as larger offthe-road tires such as those used in mining operations. To date, Manitoba is the
only other province that has this requirement.
Prior to 1996, most of the scrap tires in the province ended up in landfills
as domestic waste, or were stockpiled, buried, or dumped indiscriminately
throughout the province.
The SSTC and its stakeholders are committed to ensuring that all of the tire
recycling fees (TRFs) paid by consumers are used to recycle and promote the
recycling of scrap tires within the province.
8
THE SSTC IS THE ONLY APPROVED
OPERATOR OF A SCRAP TIRE
MANAGEMENT PROGRAM IN
THE PROVINCE.
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
GO V E R N A NCE
A seven member Board governs the SSTC in a manner
There are three main committees to assist the Board in
to ensure compliance to legislation, fairness, equity
dealing with specific issues faced by the program. The
and accountability to all stakeholders of the SSTC, the
Board Directives are carried out by:
program participants, partners, and the public. The Board
is comprised of representative directors from the following
organizations:
• An Executive Committee, comprised of the Chairman,
Vice Chairman and Treasurer. This committee is
responsible for the oversight of the Board and has the
Retail Council of Canada
authority and ability to execute decisions in the absence
Lanny McInnes, Chair
of SSTC Directors.
Saskatchewan Urban Municipalities Association
• A Finance Committee, responsible for overseeing the
Debra Button, Vice-Chair
financial activity of the corporation through reviews of
Saskatchewan Waste Reduction Council
performance, and the financial statements as prepared
Joanne Fedyk, Treasurer
by the external auditor.
Saskatchewan Association of Rural Municipalities
Judy Harwood, Director
Western Canada Tire Dealers Association
Mel Kiefer, Director
Canada West Equipment Dealers Association
Pat Zatylny, Director
the financial records and reports, monitoring budget
• An Industry Committee assists with the development
of policies and execution of strategies that benefit the
growth and stability of the scrap tire recycling industry.
The SSTC’s financial management activities are reviewed
annually by an independent audit firm. The audit provides
assurance that the corporation is conducting business in
accordance with acceptable accounting practices.
Responsibility of ensuring that all consumer-paid tire
CAA Saskatchewan
recycling fees are reported and collected, and that all
Kevin Lane, Director
retailers are compliant, is achieved through Retailer
Compliance Reviews.
Ministry of Environment (non-voting)
Kim Yee, Advisor
Evaluation and audits of collectors and processors involve
many facets of their business, and are conducted in
accordance with the SSTC policy defined in the Collector
and Processor Guidelines manual.
9
2 0 1 4 A N N U A L RE PO R T
SST C TH REE P H A S E S
The SSTC provides a comprehensive program that manages all tire waste in
three phases, to ensure scrap tires are recycled responsibly, thus helping to
maintain a healthy environment for future generations.
PHASE I
CURRENT GENERATION
PHASE II
LANDFILL TIRE CLEAN-UP
PHASE III
PRIVATE STOCKPILES
Is the daily activity of collecting tires
Was the removal of pre-program scrap
Is aimed at the cleaning up of scrap
accumulated at the retail level. At
tires from landfills of registered cities,
tires on private properties and farm-
no cost to the retailer, scrap tires are
towns, RMs and villages that passed
lands. This program gives landowners
picked up by SSTC collectors and
a bylaw prohibiting the disposal of
the opportunity to rid themselves of
delivered to processing facilities, thus
diverting scrap tires from landfills. This
phase is ongoing.
scrap tires in a landfill. This phase was
completed in 2009.
scrap tires at no cost. Two programs
guide the delivery of this phase, which
are the Black Gold Rush program and
the Return to Retailer (R2R) program.
10
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
R E V E NU E GE N E R A T I ON
TIRE RECYCLING FEES
For every new tire sold in the province, the retailer remits
A rate increase was applied in 2014 which more accurately
the tire recycling fee (TRF), sometimes referred to as the
reflects the cost of managing scrap tires in accordance
environmental fee. The TRFs are set by the SSTC and vary
with the requirements set out in the Regulations. In 2014,
according to the tire type.
the new rates were:
PLTT
MTRK
(Passenger Car/Light Truck)
(Medium/Semi Truck)
4.00
$
14.00
$
AG
OTR I
OTR II
(Agriculture)
(Off the Road/Mining)
(Off the Road/Mining)
$
25.00
$
57.00
140.00
$
E X P E NS E B R E A KD O W N
Revenue generated from the TRF is expended on activities
The remainder is committed to community involvement,
related to the program. The majority of the expenses are
consumer education, and administration.
attributed to collecting and processing the scrap tires.
46%
PROCESSING/RECYCLING
2 0 1 4 A N N U A L RE PO R T
34%
TRANSPORTATION/
COLLECTION
9%
COMMUNITY CLEANUP/
GRANTS
11%
ADMINISTRATION
11
MAN AG I N G RES P O NS IB L Y
WHAT GETS MEASURED, GETS MANAGED
Peter Drucker, a late American management consultant,
Retailers participating in the Return to Retailer Program
once coined the phrase, “What Gets Measured, Gets
were provided with activity reports that reflected the
Managed.” During 2013 and 2014, the SSTC developed
number of uncaptured scrap tires at their locations
metrics for many aspects of the scrap tire business,
over the past ten year period. Sharing the uncaptured
and shared those metrics with the Board, collectors,
metric with retailers will help them to understand and
processors, and select tire retailers.
enable them to convey to consumers the importance of
One of the metrics that the SSTC has used for many years
is recovery rate. The Canadian Council of the Ministers of
the Environment (CCME) expects that all environmental
stewardship programs measure recovery rate. The formula
are purchased. Leaving the scrap tires at the source thus
ensures that scrap tires enter the recycle stream in a
timely manner.
used to derive the recovery rate is the number of scrap
The role of collectors in the program is an important one,
tires collected, divided by the number of new tires sold, as
and is fundamental to program success. 2014 was the
reported by the TRFs remitted to the SSTC.
second year that contracted collectors were provided
The recovery rate metric will be a major focus of the
SSTC for the next few years. With this focus, the headline
story in the October 2014 issue of Treads, “Leave it at
the Source,” encouraged tire retailers to persuade
12
leaving their scrap tires at the source, when new tires
with activity reports that identified the level of service
that each collector provided to the retailers they serve.
The collector activity reports are intended to assist
collectors in the improvement of service delivery.
consumers to leave their scrap tires at the tire retailers,
The SSTC will continue to share key performance
so those scrap tires can be collected for delivery into the
indicators with retailers and collectors, which will help
recycle stream.
to improve overall performance and service delivery.
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
ACCO UN TAB I LIT Y & T R A NS PA R E N CY
Good governance encompasses accountability and transparency. The
SSTC ensures transparency by communicating honestly and openly with
all stakeholder groups. The SSTC is also accountable to the Ministry of
Environment, the Board of Directors, tire retailers, and all other program
participants. The SSTC ensures sound business and financial practices through
processes which include:
ANNUAL
FINANCIAL AUDIT
RETAILER
COMPLIANCE AUDITS
COLLECTOR &
PROCESSOR AUDITS
Conducted by an independent
Conducted to ensure that all
Which includes the evaluation of
auditing firm that provides
consumer-paid tire recycling fees
many facets of their business, in
assurances that the corporation is
are collected and reported, and that
accordance with the SSTC policy
conducting business in accordance
retailers are operating in compliance
defined in the Collector and
with acceptable accounting practices.
with regulations.
Processor Guidelines manual.
13
2 0 1 4 A N N U A L RE PO R T
PROGRAM HI G H L IGH T S
BLACK GOLD RUSH
SMALL INDUSTRIAL SCRAP TIRES
Phase III of the SSTC mandate, branded as the Black
In the early stages of the SSTC, there were minimal
Gold Rush program, offers a one-time free clean-up of
volumes of small industrial scrap tires being generated. In
scrap of tires from private land and urban residential
the past few years, the increasing waste being generated
property. Surplus dollars collected are used to remove the
by industry in Saskatchewan drove the need to formalize
scrap tires from the municipalities. The Black Gold Rush
a program for small industrial scrap tires, which includes
program facilitated the clean-up and removal of 114,514
forklift, skid steer, and press-on-solids. A pilot was
scrap tires from 44 rural municipalities in the south part
conducted in Regina, and subsequently rolled out to
of the province. The collective volume weight totalled
dealers in Saskatoon, which resulted in the collection of
5.72 million pounds, resulting in a 2014 program cost of
43,450 pounds of small industrial scrap tires.
$950,746.14.
Many of the targeted rural municipalities recruited a
non-profit or service group to assist with the scrap tire
clean-up campaign. Appendix “E” highlights the details of
the program success in 2014.
BE TIRE SMART
SSTC partners with Be Tire Smart, an awareness campaign
designed to increase public awareness that under-inflated
tires diminish fuel efficiency and increase emissions and
RETURN TO RETAILER (R2R)
The R2R program was designed to provide Saskatchewan
residents with an opportunity to drop off a maximum
of ten rimless scrap tires, free of charge, at select tire
retailers. This program is referred to as a “leave behind”
fuel costs. SSTC partnered with XM Experential Marketing
and engaged residents during the summer months, to
encourage motorists to adopt good tire maintenance
practices. XM ambassadors attended five events
throughout the summer, and reached out to educate over
1,400 motorists on how to properly maintain their tires.
program and is rolled out at select tire retailers in a
geographical area where the Black Gold Rush program
was previously offered, thus leaving behind a scrap tire
disposal option for residents.
There are seven select retailers, operating in 15
communities throughout 27 locations in the province.
Those R2R retailers collected 6,033 scrap tires at a total
program cost of $40,000, which included collection,
processing, and advertising.
14
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
PA R T N E R S H IP S
BIKE TIRE RECYCLING
The Bike Tire Recycling program is a voluntary recycling
partnership between the supporting bike retailers and the
SSTC. In 2014, SSTC partnered with Crown Shred Recycling
Management (CSR) to provide bike retailers with a bike
tire collection service. As a result of this partnership, the
The SSTC is one of the many organizations in the
province that manages a stewardship program,
dedicated to the long-term preservation of the
environment by diverting products from landfills into
the recycle stream. In order to advance responsible
stewardship, partnerships are established with many
organizations, which include:
corporation has experienced an increase in the collection
The Ministry of Environment to support the
of tires and tubes at participating bike retailer locations
preservation of the environment for future generations.
in Regina, Saskatoon, and other areas. Over 3,000 scrap
bicycle tires were collected in 2014, compared to the 522
Recycle Saskatchewan to support a province-wide
collected in 2013.
cause of creating a recycling minded culture by growing
and advancing stewardship programs.
The SSTC makes this program available to bike retailers,
despite the fact that bicycle tires are not assessed a tire
The Saskatchewan Waste Reduction Council
recycling fee, thus further ensuring the collection and
is unified in the province to bring together major
processing of this scrap tire type, in order to eliminate
players of the recycling industry for the benefit of the
landfill disposal.
environment.
The Canadian Association of Tire Recycling
AUTO RECYCLERS
The SSTC partners with the Saskatchewan Auto Recyclers
Agencies (CATRA) to work together for the betterment
of tire recycling initiatives in Canada, through the
sharing of information, expertise, and resources.
Association (SARA) to address scrap tire material that is
The Tire and Rubber Association of Canada to
accumulated and is stockpiled at auto recycler locations in
educate consumers about the benefits of proper tire
the province. As a result of this partnership, auto recyclers
inflation and maintenance, and to promote proper tire
no longer include tires in vehicles that are destined for
care programs through Summer Car Care Clinics.
destruction. As a result of this partnership, 17,585 scrap
tires for a total volume weight of 351,700 pounds were
Summerhill to supply event ambassadors who are
collected from auto recyclers, for delivery into the recycle
the “boots on the ground” assisting with scrap tire
stream.
stockpile abatement in support of the Black Gold Rush
program.
Crown Shred & Recycling manages a marshalling yard
on behalf of the SSTC where scrap tires are sorted and
redirected to various locations for recycling.
15
2 0 1 4 A N N U A L RE PO R T
COMM UN I TY I N V O L V E ME NT & GI V IN G
COMMUNITY DEMONSTRATION GRANTS
Saskatchewan Scrap Tire Corporation has awarded
SUMMERHILL
TUNDRA TAKE-BACK
over 79 community grants as a way to encourage
Saskatchewan communities and organizations to use
The SSTC realizes the need to place a greater emphasis
products made from recycled scrap tire rubber.
on the accumulation and recycling of scrap tires from the
The program, which awards eligible Saskatchewan-
Rush program, Summerhill, has been doing some excellent
based communities and organizations up to $5,000
work recycling end-of-life vehicles in northern Canada
towards the purchase and installation of Saskatchewan-
with the Tundra Take-Back program. To assist the funding
manufactured recycled rubber products, has benefited
of the Tundra Take-Back program, Summerhill initiated a
communities across Saskatchewan through projects such
crowdsourcing initiative, of which the SSTC contributed
as playgrounds, community sidewalks, and skating rinks.
$5,000. When it is time for the SSTC to collect tires in
The 2014 approved grant recipients and project details
the far north of Saskatchewan, we will leverage on the
are highlighted in Appendix F.
learnings of Summerhill.
Canadian far north. A service provider to the Black Gold
CITY OF REGINA
HOUSEHOLD HAZARDOUS WASTE EVENTS
The City of Regina hosted two Household Hazardous
Waste (HHW) Days – one in the Spring and one in the Fall.
SSTC staff attended both events, which saw the collection of nearly 600 scrap tires. Residents are encouraged
to drop off household hazardous waste items which may
include fertilizers, aerosols, batteries, major appliances,
electronics, toys, bedding, etc., as well as scrap tires. All
items dropped off by residents are then labelled for reuse, recycle, or disposed of in an environmentally-responsible manner.
16
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
EDU C A T I O N & A W A R E NE SS
The SSTC uses significant efforts to reach out to
• Website at www.scraptire.sk.ca which received 11,489
stakeholders to communicate and raise awareness of
visits in 2014, up by 22% from 2013, of which 8,339
scrap tire recycling, and the importance of scrap tire
were unique visitors.
recycling in the province, of which includes:
• Periodic meetings with the Ministry of Environment
representatives
• Communication with MLAs
• Communication with SARM Directors
• Communication with Mayors, Reeves, and Rural
Administrators
• Distribution of a quarterly newsletter, Treads, to all
stakeholder groups including tire retailers
• Distribution of periodic E-News newsletters to Collectors
and Processors
• Face-to-face meetings with Collectors and Processors
• Attendance at tradeshows which include SUMA, SARM,
and the Saskatchewan Waste Reduction Council Forums
2 0 1 4 A N N U A L RE PO R T
• Facebook www.facebook.com/SKScrapTire to promote
all SSTC programs, and the Summer Tire Family
• Twitter #skscraptire to promote all SSTC programs
• Newspaper advertising, both print and online, to
promote the Black Gold Rush and Return to Retailer
programs
• Radio advertising to promote the Black Gold Rush
program
• Informational conference calls with municipal leaders
and service group members to promote the Black Gold
Rush program
• Busboard and Cineplex Odeon theater advertising,
featuring Dawn of the Treads.
• Issuance of press releases to announce program
highlights.
17
APPEN D I C E S
18
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
A PP E ND I X A
2014 SCRAP TIRE SUPPLY
The SSTC has 1,375 registered retailers that reported total sales of 1,595,894
tires in 2014, including new vehicle tire sales.
UNITS SOLD
(2013)
UNITS SOLD
(2014)
PERCENT
OF ANNUAL
SALES
YEAR-OVER-YEAR
PLTT
1,063,418
1,063,074
66.61 %
-0.03 %
MTRK
200,561
207,106
12.98 %
3.26 %
AG
44,215
38,769
2.43 %
-12.32 %
TIRE TYPE
PERCENT
OF CHANGE
OTR I
7,415
6,122
0.38 %
-17.44 %
OTR II
1,507
1,123
0.07 %
-25.48 %
279,770
279,700
17.53 %
-0.03 %
1,596,886
1,595,894
Vehicle Sales
(5 PLTT Tires/unit)
TOTAL
19
2 0 1 4 A N N U A L RE PO R T
APPEN D I X B
2014 SCRAP TIRE COLLECTION & TRANSPORTATION
The SSTC has four registered tire collection companies that are responsible
for the collection and transportation of scrap tires. Collectors transported
889,210 scrap tires in 2014, amounting to 52,306,764 lbs. (2,679,293
passenger tire equivalents).
PERCENT
OF CHANGE
UNITS COLLECTED
(2013)
UNITS COLLECTED
(2014)
PLTT
666,874
741,225
11.15%
MTRK
118,250
133,901
13.24 %
AG
12,412
12,279
-1.07 %
OTR I
1,641
1,625
-0.98 %
OTR II
239
180
-24.69 %
TOTAL UNITS
799,416
889,210
TOTAL WEIGHT
47,572,027
52,306,764
TIRE TYPE
YEAR-OVER-YEAR
20
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
A P P E ND I X C
2014 RECOVERY RATES
The formula used to derive the recovery rate is the number of scrap tires
collected, divided by the number of new tires sold as recorded by the TRFs
remitted to the SSTC by retailers. The overall recovery rate for all tire types
was 68%. Analysis conducted by the SSTC in 2014 revealed the average of all
provincial stewardship programs at 85.4%.
Recovery rates, by tire types, are as follows:
PLTT
MTRK
AG
(Passenger Car/Light Truck)
(Medium/Semi Truck)
(Agricultural Tires)
RIM SIZES 8" - 30"
RIM SIZES 15" - 24.5"
RIM SIZES 24" - 54"
NEW TIRES SOLD
NEW TIRES SOLD
SCRAP TIRES
COLLECTED
RECOVERY RATE
NEW TIRES SOLD
SCRAP TIRES
COLLECTED
65%
1,063,074
207,106
133,901
RECOVERY RATE
32%
38,769
12,279
SCRAP TIRES COLLECTED
OTR I
741,225
(Off the Road/Mining)
RIM SIZES (UP TO AND INCLUDING) 23.5" - 25"
NEW TIRES SOLD
RECOVERY RATE
70%
OTR II
(Off the Road/Mining - Larger)
SCRAP TIRES
COLLECTED
RECOVERY RATE
RIM SIZES 26.5 - 25" UP TO 39"
NEW TIRES SOLD
SCRAP TIRES
COLLECTED
27%
6,122
1,625
RECOVERY RATE
16%
1,123
180
21
2 0 1 4 A N N U A L RE PO R T
APPEN D I X D
2014 SCRAP TIRE PROCESSING & MANUFACTURING
The SSTC is committed to ensure that all of the scrap
processors through utilization of a marshalling yard that
tires generated in the province are recycled in a timely
was established in 2013. Diversion statistics are highlighted
manner. To facilitate this recycling effort, scrap tires are
in the table below:
recycled within the province, as well as diverted to other
2013
2014
PERCENT OF CHANGE
POUNDS
POUNDS
YEAR-OVER-YEAR
CRUMB
5,470,983
1,962,866
-64%
SHRED/MULCH
30,843,411
18,019,327
-42 %
MOLDED/STAMPED
1,781,217
2,317,626
30 %
ENERGY
974,660
6,187,311
535 %
OTHER: MATERIAL TRANSFER
2,078,030
8,799,342
323 %
WASTE STEEL/FIBRE
2,081,981
863,712
-59 %
TOTAL
43,230,282
38,150,184
2013
2014
YEAR-OVER-YEAR
MATERIAL
22
CARRY OVER INVENTORY
FROM PREVIOUS YEAR
66,813,640
71,603,573
7%
RECEIVED TIRE VOLUME
FROM PROGRAM
48,020,277
53,585,865
12 %
TIRE VOLUME RECYCLED
43,230,282
38,150,184
-12 %
CLOSING INVENTORY
71,603,635
87,039,054
21 %
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
63
622
62
63
62
61
61
60
Meadow Lake
59
60
588
58
561
57
59
58
57
56
555
56
55
55
54
521
501
53
50
498
Lloydminster
49
48
471
472
496
497
493
45
442
44
491
467
466
440
439
437
436
42
406
409
39
381
380
379
37
403
404
Martensville
Saskatoon
378
351
429
428
350
347
349
346
399
400
320
292
319
318
290
317
288
28
targeted 44 rural municipalities in
343
371
370
368
369
40
342
340
341
339
37
331
333
334
287
315
313
309
310
312
336
34
260
261
282
254
256
281
280
275
274
273
253
252
251
246
245
244
243
216
215
214
31
28
241
232
228
230
231
229
20
map inset). The target area included
225
226
194
19
18
17
the City of Estevan, 17 towns, 39
223
224
168
171
163
162
15
14
141
13
villages, and one First Nations
12
22
21
20
183
157
156
19
155
Regina
18
17
154
153
151
16
15
127
136
135
134
133
132
131
130
129
128
107
106
105
104
103
102
101
100
099
098
097
077
076
075
074
070
069
068
067
126
125
124
123
095
094
093
064
063
121
122
14
13
110
12
11
109
10
community, with a total population
138
23
152
159
160
Moose Jaw
Swift Current
137
139
161
184
185
24
181
189
158
164
186
25
211
213
Melville
187
190
191
217
218
219
165
166
169
142
16
167
221
222
193
220
26
Yorkton
23
22
29
271
27
247
248
250
255
32
30
277
278
279
257
259
305
303
276
285
301
304
307
308
283
284
286
24
21
36
Collected: 45,409 tires
Total Weight: 2,382,948 lbs.
Cost: $399,537.51
35
337
338
38
2012 - EAST
335
314
26
the south part of the province (see
111
9
108
096
091
092
11
10
9
8
079
7
estimated at 52,000.
078
6
072
073
071
Weyburn
065
066
8
061
046
4
051
019
30
29
28
27
042
017
2
1
26
25
24
23
22
21
7
6
049
5
3
Rural municipalities have the option
42
41
366
367
Humboldt
345
316
27
25
43
397
398
30
The 2014 Black Gold Rush program
426
33
321
31
29
46
44
427
39
372
33
322
Melfort
430
401
344
352
47
395
402
373
376
36
34
48
394
45
431
405
377
382
A PP E ND I X E
49
456
457
458
BLACK GOLD RUSH PROGRAM HIGHLIGHTS
410
40
38
435
459
460
434
North Battleford
438
411
464
51
50
Prince Albert
461
463
43
41
490
487
470
52
486
469
468
53
Collected: 95,656 tires
Total Weight: 4,395,201 lbs.
Cost: $801,300.40
494
47
46
2013 - NORTH
488
502
51
32
54
499
52
35
520
045
044
19
18
17
3
012
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
5
4
043
018
20
031
032
033
034
035
036
037
038
039
040
1
30
29
011
28
27
26
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
Estevan
005
006
007
008
009
010
10
9
8
7
6
5
4
3
2
001
002
003
004
2
1
1
34
33
32
31
30
of recruiting a service group to assist
with the program. The SSTC provides
the service groups with a fundraising
opportunity, and service groups that participated in
Project Complete
Dates TBD
The cheque presentation ceremony was very well attended
Project Zone in 2015
and included Wayne Elhard, MLA for Cypress Hills,
the 2014 Black Gold Rush program collectively earned
representatives of the four rural municipalities, service
$106,345.25.
group leaders and some very young 4-H members, SSTC
One of the success stories is of the Shaunavon 4-H
staff, and a representative of Shercom Industries.
Multiple Club, who was recruited to lead a partnered
The Shaunavon 4-H Multiple Club allocated their funds
scrap tire collection campaign on behalf of the rural
to three projects: beef, light horse, and archery, as well
municipalities of Wise Creek No. 77, Grassy Creek No. 78,
as local community projects such as repairs to the rodeo
Arlington No. 79, and Bone Creek No. 108. For their efforts,
WWW.SCRAPTIRE.SK.CA
grounds.
The general leader of the club, Curtis Jacob,
the group earned a very well deserved $20,841.75.
stated that
“funds earned
were, and will continue to be,
RE-TIRE
• RE-CLAIM
• RE-CYCLE
earmarked to assist 4-H members to learn to do by doing,
which is the 4-H motto.”
Another service group that experienced considerable
success with the Black Gold Rush program, recruited by
the RM of Miry Creek No. 229, was the Cabri Volunteer
Firefighters. The funds raised by the firefighters went
towards the purchase of a new-to-them (used) fire truck.
Funds that are raised by service groups, as a result of the
Black Gold Rush program are contributing to some very
worthwhile causes throughout the province, and are very
much appreciated, as evidenced by the acknowledgement
published by the RM of Miry Creek in Cabri Herald (see
inset).
2 0 1 4 A N N U A L RE PO R T
23
Many of the participating service groups, like the
Shaunavon 4-H Multiple Club, and the Carnduff Joint
Volunteer Fire Department, found their efforts in the
program both rewarding, and lucrative.
A result summary of the Black Gold Rush program to date
is presented:
IN ADDITION TO THE SSTC SPONSORED PROMOTIONS
AND ADVERTISING, THE BLACK GOLD RUSH PROGRAM
RECEIVED EXCELLENT MEDIA COVERAGE. SUCH
COVERAGE INCLUDED WESTERN PRODUCER AND
WESTERN PRODUCER AG NOTES, SWIFT CURRENT
ONLINE, THE OXBOW HERALD, THE CABRI HERALD, THE
SHAUNAVON STANDARD, CJWW RADIO, AND THE FARM
CREDIT CANADA EXPRESS.
2010
2012
2013
2014
TOTALS
# RMs
30
51
32
44
157
# TIRES
57,713
104,794
95,656
114,514
372,677
WEIGHT
(lbs.)
2,808,001
5,619,556
4,395,201
5,271,253
18,094,011
Surplus funds collected are used to remove the scrap
A Request for Proposal was issued in March for the
tires from the municipalities. Over fifty percent of the
collection, transportation, and recycling/processing of
geographical area of the province has experienced the
all the scrap tires accumulated from the program. An
Black Gold Rush program.
Evaluation Committee, comprised of Joanne Fedyk,
Executive Director of the Saskatchewan Waste Reduction
Council, Rod Seiffert, Partner of MNP, Shantel Lipp,
President of the Saskatchewan Heavy Construction
Association, and SSTC management, selected the proposal
from Shercom Industries Inc. of Saskatoon.
53 % 47 %
To the credit of Shercom
Industries Inc., they
successfully collected all
the scrap tires from each of the RM collection sites within
five days of the end of each collection period.
157 RMs HAVE BEEN CLEANED UP
24
139 RMs SCHEDULED FOR FUTURE CLEAN UP
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
A PP E ND I X F
COMMUNITY DEMONSTRATION GRANT RECIPIENTS
In 2014 the SSTC approved grant applications, worth nearly $20,000, of the
following recipients:
Dundurn Lions Club Community Spray Pad
With the spray pad being one of the few recreational resources available, it
is important to have an attractive and safe area for children and families to
enjoy. The existing concrete will be covered with a green flecked rubber paving
surface.
Lakeland Early Learning Cooperative Childcare Center in Christopher Lake
THE SASKATCHEWAN SCRAP TIRE
CORPORATION IS DIVERTING
TIRE WASTE FOR PRODUCTION
INTO MARKETABLE PRODUCTS;
THEREBY CONTRIBUTING
SIGNIFICANTLY TO SOUND
ENVIRONMENTAL STEWARDSHIP
IN SASKATCHEWAN.
This outdoor project will reflect the environment and energy of its natural
surroundings and will provide the 50 children with a safe environment to
explore nature. The rubber “Pour-in-Place” pathway will connect trees, shrubs,
and natural play areas.
Spiritwood Recreation Centre Landscaping Project
The Spiritwood Recreation facility is the center of the community, and
residents will see the beautification of the landscaping that has utilized tree
rings, pavers, edging and mulch all made from recycled rubber.
Town of Fort Qu’Appelle Playground and Path Project
This project will create a comfortable and accessible path connecting a splash
park and playground area, which provides accessibility for residents and
visitors with walkers or wheelchairs. Rubber EcoBorder, Cobblestone rubber
paving tiles, and colored nugget will be used in this project.
Watson Regional Daycare Centre Inc. Outdoor Play Area
This early learning outdoor classroom will encourage children to discover how
things that they can grow and nurture can become sustainable products. The
daycare also encourages the recycling and reuse of various products. The
rubber “Pour-in-Place” path will also provide accessibility to all children.
25
2 0 1 4 A N N U A L RE PO R T
Saskatchewan Scrap Tire Corporation
Financial Statements
December 31, 2014
26
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
Management's Responsibility
To the Members of Saskatchewan Scrap Tire Corporation:
Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for
significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations and
ensuring that all information in the annual report is consistent with the statements. This responsibility includes selecting appropriate
accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is
required.
In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the
necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets
are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements.
The Board of Directors and Finance Committee are composed entirely of Directors who are neither management nor employees of the
Organization. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for
approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial
information prepared by management and discussing relevant matters with management and external auditors. The Board is also
responsible for recommending the appointment of the Organization's external auditors.
MNP LLP is appointed by the members to audit the financial statements and report directly to them; their report follows. The external
auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit
findings.
March 2, 2015
Management
27
2 0 1 4 A N N U A L RE PO R T
28
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
Saskatchewan Scrap Tire Corporation
Statement of Financial Position
As at December 31, 2014
2014
2013
420,607
978,502
55,256
19,636
541,495
976,206
48,973
33,304
1,474,001
1,599,978
Assets
Current
Cash and cash equivalents
Marketable securities (Note 3)
Accounts receivable
Prepaid expenses and deposits
Capital assets (Note 4)
105,453
67,921
Investments (Note 5)
516,923
474,308
2,096,377
2,142,207
769,116
57,606
701,022
27,462
826,722
728,484
1,269,655
1,413,723
2,096,377
2,142,207
Liabilities
Current
Accounts payable and accruals
Goods and services tax payable
Commitments (Note 8)
Reserves
Stabilization reserve (Note 6)
Approved on behalf of the Board
Director
Director
The accompanying notes are an integral part of these financial statements
1
2 0 1 4 A N N U A L RE PO R T
29
Saskatchewan Scrap Tire Corporation
Statement of Operations and Changes in Reserves
For the year ended December 31, 2014
Revenue
Tire recycling fee (Note 2)
Other
Unrealized gain on investments
Recycling costs
Recycling fee commission
Processing and collection costs
Professional fees - program compliance
Special projects
Program administration expenses
Advertising, sponsorships and memberships
Amortization
Bad debts
Computer support
Conferences
Directors' remuneration
Equipment rental
Insurance and licenses
Canadian Association of Tire Recycling Agencies (CATRA)
Meeting expense
Office operations
Postage
Printing and publications
Professional fees
Recycle Sask
Rent
Salaries, wages and benefits
Stationary and supplies
Telephone, fax and internet
Training and education
Travel
Net loss
Transfer from stabilization reserve (Note 6)
Unrestricted reserve, end of year
2014
2013
9,259,477
34,985
20,039
8,211,563
42,877
48,194
9,314,501
8,302,634
159,380
7,258,964
64,465
1,057,003
137,931
6,739,940
70,061
887,863
8,539,812
7,835,795
179,225
39,515
9,987
35,747
3,115
10,257
3,522
17,287
17,921
5,361
21,523
7,083
43,446
106,974
10,869
39,088
335,012
9,922
12,148
527
10,227
132,562
28,315
46,611
39,850
3,796
19,950
5,438
16,146
17,109
4,433
11,652
7,970
38,370
175,008
14,034
39,763
317,270
4,315
9,594
17,579
918,756
949,765
(144,067)
(482,926)
144,067
482,926
-
-
The accompanying notes are an integral part of these financial statements
30
2
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
Saskatchewan Scrap Tire Corporation
Statement of Cash Flows
For the year ended December 31, 2014
2014
Cash provided by (used for) the following activities
Operating
Cash received from customers
Cash paid to suppliers
Cash paid for salaries and benefits
Other revenue
2013
9,243,207
(8,984,724)
(335,012)
34,985
8,153,695
(8,330,203)
(317,270)
42,877
(41,544)
(450,901)
(77,048)
-
(4,707)
(13,415)
(77,048)
(18,122)
Decrease in cash resources
Cash resources, beginning of year
(118,592)
1,517,701
(469,023)
1,986,724
Cash resources, end of year
1,399,109
1,517,701
420,607
978,502
541,495
976,206
1,399,109
1,517,701
Investing
Purchase of capital assets
Purchase of investments
Cash resources are composed of:
Cash
Marketable securities
The accompanying notes are an integral part of these financial statements
3
2 0 1 4 A N N U A L RE PO R T
31
Saskatchewan Scrap Tire Corporation
Notes to the Financial Statements
For the year ended December 31, 2014
1.
Incorporation and nature of the organization
Saskatchewan Scrap Tire Corporation (the “Organization”) was incorporated under the Not-for-profit Corporation's Act and
is exempt from income taxes. The purpose of the Corporation is to establish and manage a mandatory scrap tire waste
reduction program on behalf of its members as set out in The Scrap Tire Management Regulations.
2.
Significant accounting policies
The financial statements have been prepared in accordance with Canadian not-for-profit accounting standards and include
the following significant accounting policies:
Going concern
These financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
the payment of liabilities in the ordinary course of business.
The SSTC has identified that the sustainability of the program depends on its ability to adequately fund its mandated
activities. The 2014-2018 Saskatchewan Scrap Tire Corporation Product Management Plan outlines measures to solidify
the program and create a foundation for continued success.
The key piece of the plan is the development and implementation of the TRF Rate Setting Methodology. This methodology
gives credibility to rate setting and ensures that the tire recycling fee accurately reflects the cost of managing scrap tires in
accordance with the requirements set out in the Scrap Tire Management Regulations.
In December 2013, the Ministry of Environment approved the 2014-2018 Saskatchewan Scrap Tire Corporation Product
Management Plan.
It is the belief of management that these measures adequately address the going concern issues.
Revenue recognition
Revenue from tire recycling fees is recognized when retailers submit reports for tires sold. All other revenue is recognized in
the period it is earned.
Cash and cash equivalents
Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less.
Capital assets
Capital assets are initially recorded at cost. Amortization is provided using the method and rates intended to amortize the
cost of assets over their estimated useful lives.
Method
Rate
Computer equipment
declining balance
30 %
Computer software
declining balance
100 %
Office equipment
declining balance
20 %
In the year of acquisition, amortization is taken at one-half of the above rates.
Measurement uncertainty
The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Accounts receivable are stated after evaluation as to their collectability and an
appropriate allowance for doubtful accounts is provided where considered necessary. Amortization is based on the
estimated useful lives of capital assets.
32
4
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
Saskatchewan Scrap Tire Corporation
Notes to the Financial Statements
For the year ended December 31, 2014
2.
Significant accounting policies (Continued from previous page)
Financial instruments
The Organization recognizes its financial instruments when the Organization becomes party to the contractual provisions of
the financial instrument. All financial instruments are initially recorded at their fair value.
The Organization subsequently measures all its financial assets and liabilities at amortized cost, except for marketable
securities and investments that are quoted in an active market, which are measured at fair value. Changes in fair value are
recognized in the statements of operations and changes in reserves in the period incurred. Fair value is determined by
published price quotations.
Financial assets measured at amortized cost include cash and cash equivalents and accounts receivable. Financial assets
measured at fair value include marketable securities and investments. Financial liabilities measured at amortized cost
include accounts payable and accruals.
Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial
instruments subsequently measured at fair value are immediately recognized in the deficiency of revenues over expenses
for the current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financial
instruments subsequently measured at amortized cost or cost.
3.
Marketable securities
Marketable securities consist of cash and money market mutual funds with interest rates of 1.47% to 1.86% (2013 - 1%)
and fixed maturity date of May 22, 2015 (2013 - no fixed maturity dates).
4.
Capital assets
Accumulated
Cost amortization
Computer equipment
Computer software
Office equipment
5.
2014
Net book
value
2013
Net book
value
247,075
48,842
82,267
186,318
36,146
50,267
60,757
12,696
32,000
58,616
1,310
7,995
378,184
272,731
105,453
67,921
Investments
2014
Fixed income
Income
Canadian equity
U.S. equity
International equity
5
2 0 1 4 A N N U A L RE PO R T
2013
208,922
19,131
130,125
97,866
60,879
176,536
29,816
121,524
86,735
59,697
516,923
474,308
33
Saskatchewan Scrap Tire Corporation
Notes to the Financial Statements
For the year ended December 31, 2014
6.
Stabilization reserve
In 2006, the Board internally restricted funds through the establishment of a stabilization reserve to ensure that funds are
available to meet financial obligations of the Corporation.
The amount of $144,067 (2013 - $482,926) was transferred from the reserve as at December 31, 2014 and is subject to
change at the discretion of the Board of Directors. The ending balance includes $105,453 (2013 - $67,921) invested in
Capital Assets.
2014
2013
Stabilization reserve, opening balance
Transfer from unrestricted reserve
7.
1,413,723
(144,068)
1,896,649
(482,926)
1,269,655
1,413,723
Unrestricted reserve
The opening balance in unrestricted reserve was $nil (2013 - $nil).
8.
Commitments
The Organization has entered into various lease agreements with estimated minimum annual payments as follows:
2015
64,768
2016
69,879
2017
78,184
2018
81,954
2019
85,785
9.
Financial instruments
The Organization, as part of its operations, carries a number of financial instruments. It is management's opinion that the
Organization is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial
instruments except as otherwise disclosed.
Liquidity risk
Liquidity risk is the risk that the Organization will encounter difficulty in meeting obligations associated with financial
liabilities. The Organization exposure to liquidity risk is dependent on the receipt of tire recycling fees, collection of accounts
receivable, purchasing commitments and obligations or raising funds to meet commitments and sustain operations.
Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or
factors affecting all similar financial instruments traded in the market. The Organization enters into transactions to
purchase/sell equity investments for which the market price fluctuates.
Credit Risk
The Organization is exposed to credit risk resulting from the possibility that parties may default on their financial obligations,
or if there is a concentration of transactions carried out with the same party, or if there is a concentration of financial
obligations which have similar economic characteristics that could be similarly affected by changes in economic conditions,
such that the Organization could incur a financial loss.
10.
Comparative figures
Certain comparative figures have been reclassified to conform with current year presentation.
34
6
SASKATC HEWAN SC R AP TIR E C ORPO RATIO N
S ST C
BOARD OF DIRECTORS & STAFF
SSTC BOARD OF DIRECTORS
SSTC is governed by a Board of Directors which is comprised of
seven directors:
LANNY MCINNES | CHAIR
MEL KIEFER | DIRECTOR
Retail Council of Canada
Western Canada Tire Dealers
DEBRA BUTTON | VICE CHAIR
Association
Saskatchewan Urban Municipalities
PAT ZATYLNY | DIRECTOR
Association
Canada West Equipment Dealers
JOANNE FEDYK | TREASURER
Association
Saskatchewan Waste Reduction
KEVIN LANE | DIRECTOR
Council
CAA Saskatchewan
JUDY HARWOOD | DIRECTOR
KIM YEE | ADVISOR
Saskatchewan Association of Rural
Saskatchewan Environment
Municipalities
(non-voting)
SSTC STAFF
SSTC’s staff is in charge of the daily activities directly related to scrap tire
recycling:
THERESA MCQUOID
JACKIE KUNTZ
Executive Director
Director, Special Projects
JEREMY GOURLAY
JOLENE KAINZ
Accounting & Audit Compliance
Retailer & Collector Services
KATELYN HEISLER
Administrative Assistant
35
2 0 1 4 A N N U A L RE PO R T
610-2220 12TH AVENUE | REGINA, SASKATCHEWAN | S4P 0M8
PHONE: 306.721.8473
FAX: 306.721.1585
E-MAIL: INFO@SCRAPTIRE.SK.CA
@SKScrapTire
facebook.com/SKScrapTire