HomeMy WebLinkAboutCOM 0066.009 2004-2006 JN1v or M•~
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i 1d~~c: Barbara Bell
Harry Kim Director
MnYor ~ Nelson Ho
• or x• Deputy Diree(or
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DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Street, Room 210 • Hilo, Hawa~ i 96720-4252
(808) 961-8083 • Fax (808) 961-8086
email cohdem(rdco hawaii.hi.ua -
DATE: August 31, 2005
TO: Stacy Higa, Council Chair n ouncil Members _
fU~ ~c
FROM: Barbara Bell, Director/I/
RE: FINAL REPORT
Name of Grant Program: Glass ADF Recycling Grant
Federal or State Grantor: State Department of Health
County Grantee Department or Agency: Environmental Management
Grant No. (IF KNOWN): ASO Log No. 04-017, Mod. #1
County Revenue & Expenditure Account Numbers: 085.3305.06 & 085.601.5604.28.
Amount of Grant: $298,000
Amount of County Match: N/A
Grant Period (Commencement & Completion): 7/1/04 thru 6/30/05
Goals: Promote glass recycling in Hawaii County
Objectives: Provide opportunities for the public to recycle glass and conduct public
education/outreach about the transition of glass beverage containers to
the Beverage Deposit Container Program on 1/1/05.
Outcomes or Results: Promoted glass collections, mock redemption program and
developed public outreach materials in the form of cable TV ads,
cinema ads and signage to educate the public about glass
recycling and transition to the HI 5 program.
Comm. No. {O~O.~
Ref. To: C~
Ref. Date
Hnwni ~i C'ounly is nn e7unl oppar(uniry provider anAemployer.
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Annual Report
GLASS ADF RECYCLING GRANT PROGRAM
Department of Environmental Management -County of Hawaii
Fiscal Year July 1, 2004 -June 30, 2005
July 30, 2005
BACKGROUND
The County of Hawaii ("County") awarded its Glass Advanced Disposal Fee (ADF) Recycling
Program ("Program") grant contracts io three (3) glass processors on the Big Island: Atlas
Recycling Center, HMP Inc, d.b.a. Business Services Hawaii, and Club Shoyu Brewery, Inc.;
and three (3) organizations/vendors on the Big Island: Recycle Hawaii, The ARC of Hilo and Out
Of The Sea Media Arts to conduct public education & outreach during FY 2004-2005.
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 $0.08 per pound for glass recycled under this
Program during FY 2004-05. Prior to receiving any payments, each approved glass processor
must show proof that the collected glass has been diverted to an on-island oroff-island market
or that the collected processed (chipped or crushed) glass is shipped off-island. {nvoices,
customer receipts and photo documentation of crushed ADF glass delivered to local end users
are required before payment is made to ADF glass recyclers. Allowable end uses of the
processed ADF glass include: general aggregate, construction backfill, pipe cushioning, small
glasscrete projects, road subsurfacing, landscaping cover material, filter media and. craft art.
The County also awards payments for both glass bottles sanitized and refilled with liquids.
For processed glass, all products upon which payments are awarded must be delivered to an
on-island purchaser or off-island market. Documentation of the end use is required for on-island
end uses and documentation of off-island end markets is required. Companies reusing glass
containers must provide documentation of standardized container weights and an accounting of
the number of containers reused. In addition, all grantees receiving payments must include in
their reports documentation of promotional and educational activities conducted that would
encourage public and private participation in the glass-recycling program including buy-back
incentives and community recycling sites.
ADF Pro ram Overall Expenditures b Cate o
ADF Expenditure Category Purpose Expenditure
Glass Diversion Incentive to divert material from landfills $ 206,175.76
Advertise ADF glass recycling opportunities
Public Education/Outreach to the community and educate Public on $ 46,273.00
transition to Beverage Container Deposit
Pro ram.
County Administrative Cost Cover County costs in monitoring and $ 29,800.00
Share administerin the Pr ram
Total Expenditures $ 282,248.76
Listed below is a table, which highlights the volume of glass diverted and the respective
amounts paid to the glass processors in each semi-annual period.
QUANTITY OF GLASS RECYCLED FOR THE FISCAL YEAR
15 Half 2" Half Total
07101 /04 - 12/31 /04 01 /01 /05 -06/30/05
Wei ht Ibs 1,782,080 795,118 2,577,197
Pa ment $ $ 142,566.36 $ 63,609.40 $ 206,175.76
Semi-annual analysis of the above data reflects that the 2nd half of the fiscal year volume of
recycled ADF glass fell significantly (-55°f° decline vs. 15` half of the fiscal year 2005) as a result
of the implementation of the Beverage Container Deposit Program (BCDP) and other various
factors'. The ADF Program grants were advertised in the newspapers June 30, 2004. 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 fiscal year and were able to make adjustments to their
business strategies. On average, about 1,288,599 pounds of ADF glass were recycled in each
semi-annual period, while paying nearly $103,088 in State grant monies in each period.
QUANTITY OF ADF GLASS RECYCLED FOR LAST FIVE (5) FISCAL YEARS
FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 TOTAL
Weight 1,920,038 2,531,743 3,170,010 2,972,380 2,577,197 13,144,189
I~
When comparing ADF glass recycling efforts in the County, this year's performance reveals a
decrease of 395,183 pounds, when compared to last year's total quantity of 2,972,380 pounds
of recycled glass through the ADF Program. This represents an approximately 13% overall
decrease in the total pounds of ADF glass diverted under this Program 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 the awardees.
Glass Weight Payment
Processor/Contractor (Pounds)
Atlas Rec clin Center 1,321,640 $105,731.20
HMP Inc. d.b.a. Business 1,212,780 $ 97,022.40
Services Hawaii
Club Sho u Brewe ,Inc. 42,778 $ 3,422.16
Total 2,577,197 $206,175.76
HMP Inc. d.b.a. Business Services Hawaii and Atlas Recycling Center both 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
`Correcting for variances due to recycling dates, invoice dates and County grant payments, adjusted FY2004-OS
Program results were up 10% on a year-on-year comparison with the 1°` half of FY2003-04 and down 69% in the 2°a
half of the fiscal year. Overall total ADF glass recycling was down 34% for the entire fiscal year.
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relatively similar amounts and the two businesses accounted for approximately 98% of the
quantity of ADF glass recycled in the County.
EDUCATIONAL OUTREACH PROJECTS: 04-017, Modification Order No. 1 (Glass ADF
grant FY2004-05)
The following table shows the Program awards allocated to groups contracted with the County
of Hawaii for purposes of public outreach and education pursuant to Attachment 1 paragraph
#9 in the Scope of Services, as acceptable educational outreach expenditures.
Glass Education Payment
Contractor Project/Outreach
Cam ai n
Recycle Hawaii Conduct Mock Bottle Bill $ 2,000
Redemption event to (Part of larger overall grant.)
educate public on new
BCDP law.
The ARC of Hilo Conduct outreach $ 20,000
activities to educate
public on transition of
specific glass beverage
containers to the HI-5
ro ram.
Out of the Sea Media Conduct media $ 24,273
advertising to educate
public on transition
specific glass beverage
containers to the HI-5
ro ram.
Total $ 46,273
The total payments to the recycling vendors and outreach groups was $206,175.76 &
$46,273.00 respectively, which left a balance $45,551.24 of which $29,800 is to be applied to
the County's 10% administrative fee in accordance with the State legislation. The remainder of
$15,751.24 is to be returned to the State ADF Program. Overall Program funding was the same
as the previous year but the future year's funding will decrease with the full effect of the BCDP
implementation impacting ADF revenues.
REVIEW OF CURRENT GLASS RECYCLING EFFORTS
The decrease of 395,183 pounds of recycled ADF glass, or approximately 198 tons, through the
Program was more than offset by the implementation of the Beverage Container Deposit
Program (BCDP). Overall glass recycling (ADF &BCDP) increased by over 87% or
approximately 1375 tons. Also, the rate reduction from $0.10/lb. to $0.08/Ib in FY2004-OS
enabled the County to mitigate the impact of unanticipated increases in the overall tonnage
collected and diverted from the landfill. Given that the anticipated FY 2005-06 grant amount will
be approximately 75% of the previous year's funding or $223,500, the County has elected to
keep the per pound rate for FY 2005-06 at $0.08/Ib at buy-back or private sector drop-off sites
and will provide an additional $0.04/Ib rate for collection of ADF glass at the County's permitted
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convenience centers to provide an incentive to make Program recycling more convenient to
residents and to increase the tonnage thak is diverted. In the County of Hawaii, approximately
85% of single-family households self-haul rubbish to one of the County's 20 convenience
centers.
Currently, limited collection is provided at County convenience centers where vendors supply
their own collection bins and transport collected Program glass to their place of business. This
requires regular monitoring at the convenience centers to ensure service and maintenance of
the collection bins and containers. The glass needs to be relatively clean of other solid waste
and segregated from other recyclable materials since broken glass shards 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 from the convenience centers
incurs time and expense to the participating vendor thus the County will be offering a higher
incentive rate for providing the service at the County's convenience centers in FY2005-06.
Further reductions in the per pound rate as a result of decreasing funding may likely force
vendors to drop collection bins that are remote from their processing facilities. This occurred
last fiscal year when Atlas Recycling Center dropped commercial clients in Waimea as they had
exhausted their contracted funding as of April 2004.
Since approximately 98% 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, no County sponsored glass construction projects
were undertaken this year. The increase in recycled glass tonnage as a result of the
implementation of the State's new Beverage Container Deposit Program has been absorbed by
the current demand for glass aggregate in private construction projects.
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 and businesses that 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 vendors who supply artisans with glass to make
ornaments and other functional art.
The Program was significantly impacted when the State's Beverage Container Deposit Program
was implemented on January 1, 2005 as it was anticipated that 65% of the glass containers
previously covered by the Glass ADF Recycling Program would be eligible deposit containers
under this new law. Therefore, in FY 2005-06 the anticipated amount of funds available to
Counties to administer Glass ADF Recycling Programs will be reduced to approximately 75% of
current levels as most of 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
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under the Beverage Container Deposit Program wherein recycling vendors operating
redemption centers will be reimbursed handling fees of $0.03 per eligible container
(approximately $0.072 per pound for eligible glass containers).
As a result of the implementation of the State's Beverage Container Deposit Program in January
2005, a new condition was added to FY200405 ASO 04-017, Modification Order No. 1 which
required the County to conduct public outreach and educational activities to inform the public
about the transition of specific glass beverage containers from the ADF Program to the new
BCD Program. That condition was satisfied through contract with local educational and media
service vendors to conduct outreach to inform the public about glass recycling options.
The Program also suffered the loss of the privately operated Hilo Community Recycling Drop-
Off site, which included a heavily utilized glass recycling bin that serviced the majority of Hito
residents. It is difficult to estimate the impact of the closing of this site on recycling rates in the
Hilo area because the closure happened midway in the reporting period and the BCDP was still
in its infancy. Other open topped recycling bins at various County convenience centers were
also discontinued during the year due to problems of scavenging for BCDP containers, but the
County will be replacing the old collection bins with scavenger-proof closed top bins and new
signage to expand diversion opportunities in the near future.
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 and impose additional costs on the supplier.
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.
Beverage Container Deposit Program Impact
The next fiscal year will present new challenges in order to continue to increase glass diversion
rates through a combination of the Program and the Beverage Container Deposit Program. It is
anticipated that although recycling vendors who choose to operate redemption centers will
receive less per pound ($0.072) for eligible beverage deposit glass containers over the amount
received through the Glass ADF Recycling Program ($0.08 - FY 2004-05), the difference is
nearly negligible and participation in the State's Beverage Container Deposit Program will be
more lucrative as costs will be off-set by efficiencies of scale and higher profits in recycling
aluminum beverage containers. Currently there is no government subsidy paid for aluminum
recycling, which has a material value in recycling commodity markets. Under the State's new
Beverage Container Deposit Program, nearly 60% of the eligible containers in the previous
fiscal year were aluminum cans and the handling fee paid to redemption center operators is
$0.03 on each eligible aluminum, glass, or plastic container.
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