HomeMy WebLinkAboutCOM 0066.012 2004-2006 JNiv or hw
- U~~~~<•. Barbara Bell
Dirermr
Harrv Kim
Mavor ~ ~ ~ Nelson Ho
~rE ci•M•'~ /Deputy Director
(~nunt~r ~ttfuttii
DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Stree[, Room 210 • Hllo, Hawa~ i 9fi720-4252
(808) 961-8083 • Fax (808) 961-5086
htto~// h ~ i' hi us/direc[orv/d~ ne htm
October 3, 2005
Chairman Stacy Higa,
And Members of the Hawaii County Council
25 Aupuni Street
Hilo, HI 96720
Re: Communications 66.9, 66.10, and 66.11
Aloha Councilmembers,
The following communications were previously referred to the Finance
Committee in early September. They have been revised and are attached here.
Comm. No. 66.9, FINAL REPORT GLASS ADF RECYCLING GRANT: An
addition error on the total pounds, for five years of glass recycling, was
corrected. It did not affect other items in the report.
Comm. No. 66.10, FINAL REPORT USED OIL COLLECTION PROGRAM:
Addition errors relating to inventory of oil pans, phone calls and Internet hits
were corrected. Comments were added regarding the Internet hits to the Used
Motor Oil page and the current events page.
Comm. No. 66.11, FINAL REPORT BEVERAGE CONTAINER DEPOSIT
GRANT (H15): A formula was corrected in the spreadsheet. It had no bearing on
the bottom line as the line item shows whether that category of expense was
under budget or over budget.
Regarding the questions written on the bottom of the spreadsheet in this report:
1. "Had sufficient budget for OT, why CTO?" We granted CTO
(compensatory time off) instead of paying OT (overtime) because the two
positions funded with this grant were new hires, with no accrued vacation time.
They requested CTO in lieu of OT to use for family time. Employees were
instructed to keep total CTO to less than two weeks (80 hours). This budget
was tight in FY 2004-05 and we were committed to achieving a successful
program start-up. (o(~.~~-
Comm. No.
Ref. To:~resen'~J
HawaCi C'ounry is an equal appnr(uniry provider and employer. ~
Revised Communications 66.9, 66.10, and 66.11
October 3, 2005
Page 2
2. "Over grant amount." This is a reimbursement grant as well as a new
program. We worked to project our expenditures accurately, however we
couldn't possibly have hit it right on the mark. The excess ($828.18 + $1543
CTO or $2,371) was covered out of the recycling education budget since
promotions/public outreach was the category where we had the most overages.
Early in the program we experienced that the statewide Department of Health
advertising was not responsive enough for our fluid Big Island situation. We
augmented the advertising regularly, especially in the early days of the new
program.
If you have any questions, please feel free to contact me at 961-8083 or Eileen
O'hora Weir, PhD., our Recycling Coordinator at 961-8942.
Sincerely,
iii ll'Ll~
Barbara Bell
DIRECTOR
attachments
cc: Solid Waste Division
v°.•'~.- ~
~16i%~:. Barbara Bell
Director
Ilarry Kim
Mnyor Nelson Ho
c r
rrr o7'n•'~ Deputy Direcror
U.IIIITifu II~ tI~tTMtt
DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
25 Aupuni Street, Ranm 2L0 • Hilo, Hawari 96720-4252
(808) 961-8083 • Rax (808) 961-8086
email cohdem~co.hawaii.hi.us
DATE: September 26, 2005
TO: Stacy Higa, Council Chair and Council Members
FROM: Barbara Bell, Director
RE: FINAL REPORT (Revised 09/26/05)
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.
!/awai'i Caunty is an equal appor(unity provider and en~Ployer.
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
(As Corrected September 26, 2005)
BACKGROUND
The County of Hawaii ("County") awarded its Glass ADF (Advanced Disposal Fee)
Recycling Program ("Program")grant contracts to 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) groups 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. Invoices, 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 oroff-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.
i
ADF Program Overall Expenditures by Category
ADF Expenditure Category Purpose Expenditure
Glass Diversion Incentive to divert material from landfills $ 206,175.76
Advertise ADF glass recycling opportunities to
Public Education/Outreach the community and educate Public on transition $ 46,273.00
to Beverage Container Deposit Program.
County Administrative Cost Share Cover County costs in monitoring and $ 2g g00.00
administering the Program
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
07/01/04 - 12/31/04 01/01/05 -06/30/05
Weight (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 2"d half of the fiscal year
volume of recycled ADF glass fell significantly (--55% decline vs. 1St 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 13,171,368
(Ibs)
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
~ Correcting for variances due [o 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 [he 5scal year (y.o.y.) and overall down 34% for the entire fiscal year.
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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 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 $ 2,000
Bill Redemption event (Part of larger overall
to educate public on grant.)
new BCDP law.
The ARC of Hilo Conduct outreach $ 20,000
activities to educate
public on transition to
HI-5 ro ram.
Out of the Sea Media Conduct media $ 24,273
advertising to educate
public on transition to
HI-5 ro ram.
Total $ 46,273
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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 provided for under 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/Ib. to
$0.08/Ib enabled the County to mitigate the impact of unanticipated increases in the
overall tonnage collected and diverted from the landfill should the situation have arisen.
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 at buy-back or drop-off sites and has proposed a new $0.12
rate for collection of ADF glass at the County's permitted convenience centers to offer
an incentive for participating vendors to make Program recycling more convenient to
residents and to increase the tonnage that is diverted
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.
a
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 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 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 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).
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 Hilo 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
s
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 wilt 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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