HomeMy WebLinkAboutCOM 0065.000 2006-2008 4~JNjx•ai•~~G
~ 1,~,,u, Barbara Bell
Director
Harry Kim
Mayor - - - Nelson Ho
ei~t Deputy Director
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DEPARTMENT OF ENVIRONMENTAL MANAGEMENT r,:,
25 Aupuni Street, Room 210 ~ Hllo, Hawsii 96720-0252 y
(808) 961-8083 • Fax (808) 961-8086 L
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January 3, 2007 -
Bob Jacobson, Chair ~ ~ ~
And Members of Environmental Management Committee i
Hawaii County Council r~
Ben Franklin Building
333 Kilauea Avenue
Hilo, HI 96720
Subject: Solid Waste Preseutatiou
Dear Chair Jacobson and Committee Members,
We are requesting that Mr. Wayne Rifer, Rifer Environmental, be agendized for the
January 18, 2007 Environmental Management Committee. His presentation will include,
but is not limited to, the following topics:
• Business Models relating to recycling facilities (Elements of an Effective Relationship
between Government and Private Industry in Providing Recycling Services enclosed)
• Differences in recycling on the Big Island vs. (1) Honolulu, (2) urban mainland, (3)
rural mainland, (4) and other azeas
If you have any questions, please do not hesitate to contact me.
Sincerel ,
Bazbara Bell
DIRECTOR
cc: Harry Kim, Mayor
Michael Dworsky, SWD Chief
Linda Peters, Recycling Coordinator
enclosures Comm. No.
Ref. To: G
Ref. DateaJnN 0 3 lllil7
Hawaii County is an equal opportunity provider and employer.
Elements of an Effective Relationship between Government and
Private Industry in Providing Recycling Services
There is great variation between different communities in how local governments achieve high recycling
rates. Studies by US.EPA, the National Conference of State Legislatures, and others have
identified the elements of success. This memo summarizes the key findings in these studies'.
The studies emphasize the following two critical functions for local government:
1. It is the responsibility of the County, through a system Plan that has
Local community support, to clearly define "the roles of stakeholders",
government's including local government, recycling businesses, other businesses,
critical roles for and individual citizens.
an effective
recycling 2• The County then builds a cooperative relationship with these
progam. stakeholders, helping them fulfill those roles, by providing essential
assistance and support, for example:
o Protection against the inherent risks in recycling, such as the inevitability of mazket price
fluctuations. Recycling is, by nature, a low margin business and lacks a cushion against
such market vagaries. Govenunent can provide a cushion, which will increase the
amount of recycling that businesses can do.
o Assurance that private recyclers play roles that aze complimentary with each other and
with the County in order to collectively deliver convenient, reliable and cost-effective
services.
o Establishment of a cost structure, through contractual or franchise arrangements for waste
and recycling services, that provides incentives for businesses and residents to recycle.
The County of Hawaii has a unique opportunity to develop such a relationship
Opportunity with private recyclers through implementation of the recycling center at the
at the Hilo Hilo Transfer Station. Activities at that station will be integrated with
Transfer collection services at other transfer stations. By maintaining ownership of the
Station. land on which recycling services are provided, the County can provide some
financial support to recyclers, while maintaining the ability to adjust to
changing conditions and community needs.
Recyclers will provide what the private sector does best -equipment, labor, materials mazketing
and public service.
The County can let contracts to private companies with terms based on differences between
different recycling challenges -high capital-cost processing would logically have a longer
contract term, while lazgely service-oriented collection activities would be shorter contract terms
to assure high quality and responsiveness to community needs.
' Three key studies aze drawn from for this memo:
1. "A Legislator's Guide to Municipal Solid Waste Management" by the National Conference of State Legislators,
1996.
2. "Decision-Makers Guide to Solid Waste Management" by the U.S. EPA, 1996.
3. "Multifamily Recycling, A National Study" by U.S. EPA, 2001.
Effective Relationships for Providing Recycling Services October 2006
Rifer Environmental
Examples of Effective Recycling Strategies
The Pacific NW has several examples of recycling programs that have
Examples achieved high recycling rates through these principles:
from the
Pacific NW. • In Portland the transfer stations aze owned by public agencies, which have
private contractors providing recycling and transfer services. Collection
services are delivered by private haulers under franchises by the City of Portland and other
municipalities.
• In Seattle private haulers collect recyclables under competitive contracts with the City,
through which the city is divided into districts to maintain a strong competitive environment
in the bidding to provide services.
Reasons for Both Seattle and the Portland metro area have exceeded 50% diversion rates
success in through recycling and composting, without using high-technologies. Why have
the NW. these NW communities been so successful? They have implemented a diversity
of programs in cooperation with, and through regulation of, the private sector:
• They have maximized the convenience of recycling by providing curbside collection of
recyclables and yard trimmings, no-cost collection from many businesses, and convenient
drop-off locations for businesses and the public. And these services have included a wide
variety of materials.
• Most communities have instituted financial incentives to reduce waste into the rate structure,
and some have established bans on the disposal of certain materials.
• They have conducted extensive public education and recycling promotion to businesses.
• And, of course, the Pacific NW is fortunate to have an abundance of markets for recyclables,
helping lower the costs, as well as a public that is environmentally conscious.
Pros and Cons of Different Business Models
The County has choices in how it delivers enhanced recycling services.
Business Model #1: Government land, with a private operator providing equipment and
labor This is a very common model. The contract term maybe short if future funding is
uncertain, or longer if a lazge private investment must be amortized over the contract term, or if
there is a need to attract a larger pool of proposers since longer contract terms aze more attractive
to companies.
Pros:
• Provides a stable recycling location for the public.
• Planning/synergy with other government services are possible.
• It provides the ability to assure convenient public service with a common "look and feel"
island-wide.
• There is the ability to adjust services and/or the contractor on annual basis if service is
not adequate or conditions change.
Cons:
• County must invest in the initial infrastructure.
• Material mazkets may cause contractor to adjust how service is delivered.
Effective Relationships for Providing Recycling Services October 2006
Rifer Environmental
• Repeated education or new practices maybe needed if conditions change, for example, if
different materials aze collected.
Business Mode[ #2: Government land, government equipment, with a private operator. This
model is less commonly used now, but it has been tried by some communities. Contract terms
may vary as in Model 1, though shorter terms aze normal due to less private investment.
Pros:
• County exercises maximum control over operations, though they are privately delivered.
Cons:
• County must invest in and maintain equipment.
• Private operators may not caze for equipment they do not own.
Business Model #3: Private land, private operator and equipment. This model is used
especially where local government does not provide waste management services, where private
businesses have previously and independently established recycling or waste services, or where
government is less committed to achieving a high recycling rate. A 5-10 year contract is normal.
Pros:
• County is not responsible for facility.
• County liability is negligible.
• Some contractors may prefer this because they control service more and they maybe able
to integrate recycling with other business interests.
Cons:
• County has faz lesser ability to assure convenient service with a common "look and feel",
or to adjust services as conditions demand.
• Land proposed by contractors is seldom where municipality would like the service to be.
• It is much more difficult to integrate various services for public convenience, e.g.
recyclable collection cannot be co-located with green waste or trash collection. This
creates a need for more public education and likely delivers lower convenience and
therefore a lower recovery rate.
• County will pay for land and infrastructure through contract every yeaz.
• Fewer businesses can afford to own their site, reducing competition.
Business Model #4: Government land, government operator. Union contracts are typical.
This has been a frequently used model, but it is becoming less common.
Pros:
• It provides stable operation.
• Services can be designed exactly as the County would like.
• Public education can be specific and not need to be adjusted over a longer term.
Cons:
• Generally it is the most expensive due to higher public employment costs.
• It fails to take advantage of the private sector's ability to provide quality public service.
• It has less flexibility since specialized skills and specialized equipment aze harder to
acquire/replace with formal procurement policies/laws.
Effective Relationships for Providing Recycling Services October 2006
Rifer Environmental
Conclusion
The following conditions prevail for the County of Hawaii:
• The County provides core waste disposal services, and experiences directly the costs of
waste disposal.
• The County has available land that can be used for recycling services.
• The County has a knowledgeable and capable waste management staff.
• The County is committed to an effective recycling program.
Given these conditions the best available option is for the County to play a strong role in the
recycling system through owning the land on which services are delivered, providing oversight
through specific contractual terms, and utilizing private operators who bring their expertise in
service delivery. This is the most common model given these advantages.
Effective Relationships for Providing Recycling Services October 2006
Rifer Environmental