HomeMy WebLinkAboutCOM 0140.081 2002-2004 J~ZV•OF Mq`Y
40'~ _ 9,
~~~I~~~%~. Barbara Bell
Director
Harry Kim
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Mayor ':'o' Nelson H°
'°rf ~oF'wp'N Deputy Director
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DEPARTMENT OF EN~IR®NMENTAL MANAGEMENT
25 Aupuni Street, Room 210 • Hilo, Hawaii 96720-4252
(808) 961-8083 • Fax (808) 961-8086 -=-j
cohdem@interpac.net
DATE: August 9, 2004 ~ s--;
TO: James Y. Arakaki, Council Chair and ~
Council Members
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FROM: Barbara Bell, Directo
RE: FINAL REPORT
Name of Grant Program: Glass ADF Recycling
Federal or State Grantor: State Department of Health
County Grantee Department or Agency: Environmental Management
Grant No. (IF KNOWN): ASO LOG No. 04-017
County Revenue & Expenditure Account Numbers: 085 601 5604.28 115
Amount of Grant: $298,000.00
Amount of County Match: $0
Grant Period (Commencement & Completion): 7/1/03 to 6/30/04
Goals: Divert from landfill and recycle glass.
Objectives: Provide collections of glass containers convenient for residents. Offer
glass recycling to commercial sector. Recycle glass containers for reuse.
Develop end markets for processed crushed glass. Offer incentives to
increase glass recycling.
Outcomes or Results: Total of 2,972,380 pounds, or 1486 tons, was diverted and
recycled this fiscal year representing a 6% decrease over last
year. All carryover funds were depleted in previous fiscal year as
funds were not allowed to be carried over to the new fiscal year.
Because of the indication of the program's growth, rate per pound
was reduced to $0.10 this year from $0.12 paid in previous years
to help mitigate impacts. An additional 174,000 pounds, or 87
tons, was recycled at the Kea'au Recycle and Reuse Center,
Kea~au Transfer Station, which is not included in this Grant
Program. With EPA and other funding used for additional glass
recycling, such as the Kea'au Transfer Station, the overall
decrease for glass recycling was 23,630 pounds, or .7%.
Hawai ~i County is an equal opportunity provider and employer. RLf. 1f®,
Annual Report
GLASS ADF RECYCLING GRANT PROGRAM
Department of Environmental Management -County of Hawaii
Fiscal Year July 1, 2003 -June 30, 2004
July 30, 2004
BACKGROUND
The County of Hawaii (County) awarded it's Glass ADF (Advanced Disposal Fee)
Recycling Program (Program) to three (3) glass processors on the Big Island: Atlas
Recycling Center, HMP Inc, dba Business Services Hawaii, and Club Shoyu Brewery,
Inc. during FY 2003-2004.
In accordance with the State's Department of Health (DOH) Memorandum of
Agreement with the County of Hawaii regarding glass recycling, the Department of
Environmental Management (DEM) awarded grant payments at a rate of $0.10 per
pound for glass recycled under this Program during FY 2003-04. Prior to receiving any
payments, each approved glass processor must show proof that collected glass has
been diverted to an on-or-off island market or that collected processed (chipped or
crushed) glass is shipped out of state. The County awards payments for both glass
bottles sanitized and refilled with liquid, and processed glass. For processed glass, all
product awarded payments must be delivered to an on-island purchaser oroff-island
market. Documentation of the end use is required for on-island end uses and
documentation of off-island end markets is required. In addition, all grantees expecting
to receive payments must include in their reports, all promotional and educational
activities that would encourage public and private participation in the glass-recycling
program.
Listed below is a table, which highlights the volume of glass diverted and amount paid
to the glass processors each quarter.
QUANTITY OF GLASS RECYCLED FOR THE FISCAL YEAR
1 Half 2" Half Total
7/1 /03 - 12/31 /03 1 /1 /04 - 6/30/04
Weight(Ibs) 1,368,350 1,604,030 2,972,380
Pa ment $ $136,835 $160,403 $297,238
Semi-annual analysis of the above data reflects that the volume of recycled glass was
fairly consistent through the fiscal year 2003-2004 with a slightly higher volume during
the second half. The Program grants were advertised in the newspapers June 30,
2003. With early advertising and timely receipt of a contract agreement from the County
in a timely manner, vendors participating in the program knew that their reimbursement
rate per pound would be reduced by $0.02 over the previous two fiscal years and were
able to make adjustments to their business strategies. On average, about 1,486,190
i
pounds of glass were recycled in each semi-annual period, while paying $148,619 in
State grant monies. The total payment amount to the vendors was $297,238, which left
only $762 to be applied to the partial payment of the County's 10% administrative fee
allowed under this grant. Overall Program funding was less than the previous year, as
all surplus carryover funds were exhausted in the previous fiscal year, thus less tonnage
was reported this year.
QUANTITY OF GLASS RECYCLED FOR FIVE (5) FISCAL YEARS
FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY 03-04 TOTAL
Weight 1,702,108 1,920,038 2,531,743 3,170,010 2,972,380 12,296,279
Ibs
When comparing glass recycling efforts in the County, this year's performance reveals a
decrease of 197,630 pounds, when compared to last year's total quantity of 3,170,010
pounds of recycled glass. This represents a 6% decrease in the total pounds of glass
diverted over the previous fiscal year.
The following table below shows the Program quantities of recycled glass by contracted
glass processors and associated payments made to awardees.
Glass Weight Payment
Processor/Contractor (Pounds) (Dollars)
Atlas Rec clin Center 1,465,000 146,500
HMP Inc. dba Business 1,463,095 146,310
Services Hawai'I
Club Sho u Brewe ,Inc. 44,285 4,428
Total 2,972,380 297,238
HMP Inc. dba Business Services Hawaii, and Atlas Recycling Center processed
chipped glass and Club Shoyu Brewery, Inc. recycled bottles. Atlas Recycling Center,
owned by Michael Allen, and Business Services Hawaii, owned by Margaret and Shon
Pahio recycled nearly equal shares and the two businesses accounted for
approximately 99% of the quantity of glass recycled in the County.
REVIEW OF CURRENT GLASS RECYCLING EFFORTS
The decrease of 197,630 pounds, or approximately 99 tons, through the Program was
mostly offset by the County's EPA funded project at the Kea'au Recycling & Reuse
Center where an additional 173,424 pounds (87 tons) was diverted from the County
landfills this fiscal year from July 1, 2003 through December 31, 2003. Also, the rate
reduction from $0.12/Ib. to $0.10/Ib enabled the County to mitigate the impact of
anticipated decreases in the overall tonnage collected and diverted from landfill due to
z
the fact that no carryover funds were available in FY 2003-04. Given that the grant
amount will be the same for FY 2004-05 ($298,000), the County has elected to set the
per pound rate for FY 2004-05 at $0.08 to ensure that participating vendors continue to
increase the tonnage that is diverted
Currently, limited collection is provided at County transfer stations where vendors
supply their own collection bins and transport collected glass to their place of business.
This requires regular monitoring at the transfer stations to ensure maintenance of full
collection bins and containers. The glass needs to be relatively clean of other solid
waste and segregated from other recyclable materials since broken glass chards can
contaminate other valued recyclables, such as paper fibers, making the material
unacceptable to markets that process recycled materials. Preventing contamination,
providing collection bins, and transporting recyclable materials to private processing
facilities incurs time and cost to the participating vendor. Further reductions in the per
pound rate will force vendors to drop accounts that are remote from their processing
facilities. This occurred this fiscal year when Atlas Recycling Center dropped
commercial clients in Waimea as they had exhausted their contracted funding as of
April 2004.
No County sponsored glass construction projects were undertaken this year as
approximately 99% of the glass recycled was crushed and used on-island for private
construction projects including road subsurfacing, pipe cushioning, landscaping,
glasscrete projects, and general construction aggregate. Anticipated increases in
recycled glass tonnage as a result of the implementation of the State's new Beverage
Container Deposit Program may exceed the current demand for glass aggregate in
private construction projects, thus prompting demonstration projects to encourage new
uses for recycled glass.
All participating vendors are visible and active in their public relations and marketing
efforts and participate in community events promoting glass recycling and reuse
opportunities on the Big Island.
PROBLEM AREAS & CHALLENGES
The Program is advertised in both County newspapers. Currently, there are only two
vendors doing the majority of the collections, which limits the County's recycling efforts.
Both vendors direct the crushed glass to end markets on this island. Atlas Recycling
Center is currently delivering glass cutlet to Hokukano Ranch, a private property in
Kona, to be used to provide a subsurface for eight (8) miles of private roads. Business
Services Hawaii delivers the crushed glass to local residents who utilize the crushed
glass for landscaping their property, pipe cushioning, small glasscrete projects, or
general backfills. Business Services Hawaii sells some of the crushed glass to a vendor
who supplies artisans with glass to make ornaments and other functional art.
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The Program will be largely impacted when the State's Beverage Container Deposit
Program is implemented on January 1, 2005 as it is anticipated that 65% of the glass
containers currently covered by the Glass ADF Recycling Program are eligible deposit
containers under this new law. Therefore, after FY 2004-05, the amount of funds
available to Counties to administer Glass ADF Recycling Programs will be reduced to
approximately 35% of current levels as the eligible glass beverage containers (glass
containers 64 fluid ounces or less containing beer, soda, juice, water, tea, or coffee) are
expected to be handled under the Beverage Container Deposit Program wherein
recycling vendors operating redemption centers will be reimbursed $0.03 per eligible
container (approximately $0.06 per pound for eligible glass containers).
Paragraph 8 of the Scope of Service relating to the Program states that the County is to
pave the equivalent of two (2) miles of roadway. It has been difficult to acquire
cooperation from either of this County's two major suppliers of road paving material on a
demonstration glasphalt project since incorporating glass aggregate into a hot asphalt
mix requires production modifications that impact regular scheduled orders. With
construction projects queuing up due to a high level of construction activity, there is
currently little interest in pursuing a demonstration project. Since none of the glass
recycled in the County under this year's Program was shipped off-island and all was
used for local private construction projects, the County feels it is complying with the
intent of the Program guidelines to establish viable local markets for recycled glass
through developing new end uses. Until the supply of crushed glass exceeds the local
demand for the product as a substitute for construction aggregate and landscape cover,
additional demonstration projects do not appear necessary.
The next fiscal year will present new challenges in order to continue to increase
diversion rates through a combination of the Program and the mid-year implementation
of the Beverage Container Deposit Program. Uncertainties regarding the future of the
"Bottle Bill" as it is known, which persisted until June 2004, have made it difficult for both
the State DOH and the Counties to properly assist the recycling industry in preparing for
implementation of a new program. It is anticipated that although recycling vendors who
choose to operate redemption centers will receive less per pound ($0.06) for eligible
beverage deposit glass containers over the amount previously received through the
Glass ADF Recycling Program ($0.10 - FY 2003-04), participation in the State's
Beverage Container Deposit Program will be more lucrative as costs will be off-set by
higher profits in recycling aluminum beverage containers. Currently there are no
government subsidies paid for aluminum recycling, which has value in recycling
commodity markets. Under the State's new Beverage Container Deposit Program, over
one-half of the eligible containers are expected to be aluminum cans and the handling
fee paid to redemption center operators will be $0.03 on each eligible aluminum, glass,
or plastic container.
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GLASS RECYCLING FOR FY 2003-2004 FILENAME: DIVERSION GRANT RECON FOR FY 2003-2004
ACCOUNT NUMBER: 085-601-5604.28-115
CONTRACT AMOUNT $298,000.00
CARRYOVER FROM PREVIOUS FISCAL YEARS $0.00
TOTAL AVAILABLE 298,000.00
GLASS RECYCLING VENDORS Contract .10/Ib Actual Contract #
ATLAS RECYCLING CENTER 1st Half Jul-Dec 2003 72,750.00 727,500 72,750.00 04063 Crushed Glass
HMP DBA BUSINESS SERVICES HI 1st Half Jul-Dec 2003 72,750.00 618,096 61,809.60 04062 Crushed Glass
CLUB SHOYU BREWERY 1st Half Jul-Dec 2003 2,500.00 22,754 2,275.43 04061 Recycle bottles
Glass Grant for 1st Half $148,000.00 1,368,350 $136,835.03
GLASS RECYCLING VENDORS Contract .10/Ib Actual Contract #
ATLAS RECYCLING CENTER 2nd Half Jan-Jun 2004 73,750.00 737,500 73,750.00 04120 Crushed Glass
HMP DBA BUSINESS SERVICES HI 2nd Half Jan-Jun 2004 84,500.00 845,000 84,500.00 04122 Crushed Glass
CLUB SHOYU BREWERY 2nd Half Jan-Jun 2004 2,800.00 21,530 2,153.03 04121 Recycle bottles
Glass Grant for 2nd Half $161,050.00 1,604,030 $160,403.03
Partial payment of 10%admin fee
COUNTY OF HAWAII, SOLID WASTE 2nd Half Jan-Jun 2004 $761.94 $761.94 for FY 2003-2004
Total for the Fiscal Year $309,811.94 2,972,381 $298,000.00
GLASS RECYCLING BY VENDORS Contract .10/Ib Actual Contract #
ATLAS RECYCLING CENTER 1st Half Jul-Dec 2003 72,750.00 727,500 72,750.00 04063 Crushed Glass
ATLAS RECYCLING CENTER 2nd Half Jan-Jun 2004 73,750.00 737,500 73,750.00 04120 Crushed Glass
TOTAL FOR ATLAS RECYCLING CENTER 146,500.00 1,465,000 146,500.00
HMP DBA BUSINESS SERVICES HI 1st Half Jul-Dec 2003 72,750.00 618,096 61,809.60 04062 Crushed Glass
HMP DBA BUSINESS SERVICES HI 2nd Half Jan-Jun 2004 84,500.00 645,000 84,500.00 04122 Crushed Glass
TOTAL FOR DBA BUSINESS SERVICES HI 157,250.00 1,463,096 146,309.60
CLUB SHOYU BREWERY ist Half Jul-Dec 2003 2,500.00 22,754 2,275.43 04061 Recycle bottles
CLUB SHOYU BREWERY 2nd Half Jan-Jun 2004 2,800.00 21,530 2,153.03 04121 Recycle bottles
TOTAL FOR CLUB SHOYU BREWERY 5,300.00 44,285 4,428.46
Partial payment of 10°/ admin fee
COUNTY OF HAWAII, SOLID WASTE 2nd Half Jan-Jun 2004 $761.94 $761.94 for FY 2002-2003
Total for the Fiscal Year $309,811.94 2,972,381 $298,000.00
Tons
Balance of Funds 1,486 50.00