Loading...
HomeMy WebLinkAboutCOM 0550.001 2010-2012William P. Kenoi Mayor William T. Takaba Managing Director January 31, 2012 Count of DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 25 Aupuni Street • Hilo, Hawaii 96720 (808) 961 -8083 Fax (808) 961 -8086 http: / /co.hawaii.hi.us /directory/dir envmng.htm Dora Beck, P. E. Acting Director Hunter Bishop Deputy Director Ms. Brittany Smart, Chair And Members of the Hawai' i County Council Environmental Management Committee 25 Aupuni Street Hilo, HI 96720 Subject: Testimony on Communication No. 550 — Discussion Regarding the Possible Implementation of Fully Funded Diversion Recycling Grant Program Dear Chair Smart and Committee members, The Department of Environmental Management (DEM) has been working with the Council on a resolution relating to a multi -year contract for service of hauling recyclable materials from County Transfer Stations. The proposed contract would replace the current contract for these services started in 2007 and is part of the County's 2 -Bin Recycling Program. After several meetings and discussions with Council members and the Legislative Auditor, DEM revised the Resolution 202 -11 to include recommendations from the Council. At the January 20, 2012 Council meeting, the Council postponed voting on Resolution 202 -11 and received an unsolicited proposal from Atlas Recycling Center, LLC. Communication No. 550 indicates that the purpose is to discuss "concerns that were presented at the January 20, 2012 Council Meeting" and "during the course of the discussion a diversion grant program was mentioned as a possible alternative to the services described in Resolution No. 202-11." To avoid misinformation, DEM is providing written testimony regarding the unsolicited proposal and some of the claims regarding the County's 2 -Bin Recycling Program. The 2 -Bin Recycling is part of the County's Integrated Resources & Solid Waste Management Plan (IRSWMP) Update that is required by State Law. The IRSWMP Update was developed through many hours of deliberation by volunteers from the community and volumes of documents and research, and the 2 -Bin Recycling was determined to be the best option for the County to encourage more recycling for residents. Atlas's Proposal Atlas's proposal is to "develop a comprehensive community based recycling program for the residential sector and small commercial sector on the Big Island through the establishment of a fully funded Diversion Grants Program." County of Hawai`i is an Equal Opportunity Provider and Employer. Comm. No. Ref. To: Ref. Dote, t P 1 Emc.. 1. Fact: The County has been providing a `fully funded" diversion program to encourage recycling which provides funds to Atlas and five (5) other companies who have participated. Over the past four years, 99.12% of all diversion funds requested were granted. 2. Fact: The County already provides a comprehensive community based recycling program for the residential sector. The 2010 survey showed 80% of residents participated in the 2 -Bin Recycling. 3. Fact: A fully funded diversion program is already an important part of the current 2 -Bin Recycling program. 4. Fact: The current diversion program provides stability for private recyclers by increasing funding during downturns in the market value of the materials. It also protects taxpayers by reducing funding when the values increase. For instance, in 2009 the average diversion payment per ton was $102 and in 2011 it averaged only $36 per ton. 5. Fact: The proposal suggests paying $100 /ton for mixed, paper, plastic, aluminum, tin, etc. even when a representative market value of these commodities is high. The County's current program pays based on the market value and has been substantially less than $100 /ton for similar commodities. For instance, paper has a high market value and, as a result, the average 2011 diversion payment rate paid by the County for paper was $12.54/ ton. 6. Fact: The proposal replicates what is already in place and simply shifts the funds from the 2 -Bin Recycling Program at transfer stations (developed through the IRSWMP Update, supported by Council at the time) to another recycling center outside the transfer stations. This does not serve the community when 85% of the residents self -haul their rubbish and prefer the "one- stop" convenience of the transfer stations. Studies consistently support that people prefer the "one- stop" instead of driving to multiple locations. 7. Fact: The proposal states that the transfer stations in the larger populated areas generated the most volume of materials. While this is not a surprise, it does not juste eliminating services to smaller, less populated communities. The proposal does not provide options for servicing smaller, less populated communities. DEM believes all citizens should have equal opportunities to participate in the recycling programs. The 2 -Bin Recycling Program accomplishes this. Atlas's Claims about the "problems" with the 2 -Bin Program: 1. Limits participation to users of transfer stations Fact: 85% of the residents use the transfer stations and the residents who elect to hire a private hauler for their rubbish can still use the transfer stations for redemption or recycling. Some private curbside haulers do offer curbside recycling which is the best solution. Funding recycling centers at another public location will be to no advantage. 2. Dependent on voluntary recycling Fact: We acknowledge that recycling is voluntary and that mandatory recycling would increase diversion. There is nothing in the proposal that offers any alternative to voluntary. It simply offers a different location which will be less convenient and potentially result in less recycling due to lack of a "one-stop" drop -off for rubbish and recyclables. 3. Fails to reach business community Fact: 2 -Bin Recycling was developed primarily for the benefit of residents but there are many small businesses who wish to utilize these services at the transfer stations. The County is in the process of developing a program where small businesses can pay a fee and use the transfer County of Hawai' i is an Equal Opportunity Provider and Employer. station services which will encourage more recycling. The current landfill diversion program is intended to provide incentives for the recyclers like Atlas to provide recycling services to the businesses. 4. Allows for contamination & moisture Fact: Recyclers must manage these issues as part of the contract and can, and do, provide covered bins or compactors where needed. All recycling programs have issues with contamination and the 2 -Bin Recycling Program has had very minimal contamination. The recycle bins are routinely inspected by County personnel for contamination. Having the collection sites at private sites as recommended in the proposal does not remove this problem unless there is a paid person(s) at all times searching each customer's recyclables before they are deposited. 5. Costs the taxpayers millions for infrastructure Fact: During the update of the IRSWMP which considered cost impact to taxpayers, it was determined by the Solid Waste Advisory Committee after 18 months and hundreds of hours of research that managing solid waste services through the transfer stations was the best method and that the cost of converting to curbside services would be prohibitive. Transfer stations will be in our island's future for many years to come. As the IRSWMP Update was being developed, regular public meetings and presentations to Council were conducted with subsequent approval by Council. 6. Is overly expensive - $230 /ton Fact: In 2010, the cost for the 2 -Bin hauling contract averaged $137 /ton. The estimated cost for the diversion or processing in 2010 was $38 /ton. Some commodities, like paper fibers including cardboard was at a high market value and the diversion payment was zero. The State funds most of the glass recycling at $160 /ton through the Advanced Disposal Fee (ADF) Grant. DEM has requested council approval since June 2011 for a 3 -year contract to seek cost reductions as well as using compactors where feasible to further reduce the costs. 7. Creates no financial incentive to participate Fact: DEM recognizes that offering financial incentives like the HI -5 program would increase recycling. Normally, these types of advanced disposal fees are managed through the State and are not an option for the County to implement such fees. The proposal does not offer financial incentive. Despite offering no financial incentive to participants, 2 -Bin Recycling at the transfer stations registered a higher participation rate in the 2010 survey than the HI -5 Redemption Program. 8. Fails to create diversity & limits to mixed Fact: Studies show that participation increases with convenience and most municipalities have moved to single stream or mixed recycling as the norm. Participation increased with the 2 -Bin Recycling making it more convenient and easy to recycle. Recyclers do have choices at certain Transfer Stations (e.g. Hilo, Kea `au & Kealakehe have cardboard recycling collection; Kea `au has newspaper too). Source - separated recycling is provided at these larger transfer stations where demand and space is appropriate. Private recyclers like Atlas have been free to establish recycling drop -off of any type of commodities and could have used funds from the Landfill Diversion Program for this purpose. 9. Fails to create competition Fact: Pursuant to State Procurement laws, contract services undergo an open competitive bidding process and anyone who qualifies can bid. Nothing prevents a private company from competing and offering recycling centers. Establishing at least 2 zones provides the opportunity County of Hawai' i is an Equal Opportunity Provider and Employer. for companies to bid on one or both zones and provides economies of scale with larger material flows. Other Excerpts /Claims in Atlas's Proposal: • It will benefit the County of Hawai' i to upgrade the current Diversion Grants Incentives program and streamline the program to focus on the residential sector and the small business sector, removing the program's subsidies to large commercial businesses that bale and compact cardboard. Baled and compacted cardboard from large commercial businesses can be hauled and processed more economically and should be eliminated from the diversion program. Fact: When market prices are good for cardboard, as they are currently, DEM pays much less than the $100 /ton that is being proposed. Sometimes it pays nothing. A substantial portion of the diversion program is to encourage recycling from the residents and is paid as mixed recycling. It is important to encourage recycling from all size businesses. Many of the large businesses like Wal -Mart and Costco do not receive any funds from the landfill diversion program — they recycle as part of a corporate national program. • The proposed fully funded Diversion Grants Incentives program would pay a $100 per ton diversion fee to fully certified recycling businesses for all mixed recyclable items including; cardboard, newspaper, magazines, all paper types, tin cans, aluminum foil, and #1, #2, #4, #5 plastic bottles and plastic bags to State - permitted certified recycling businesses. Glass bottles would continue to be paid at a rate of $160 per ton through the State's Advance Disposal Fee (ADF) funds. Fact: The diversion payment rate for mixed recyclables averages much lower than the proposed $100 /ton. The values for each commodity are quite different and therefore the proposal to pay "one rate " for all types of materials will result in DEM paying more for high value materials and less for the low value commodities. DEM has continued, and plans to continue, to promote glass recycling through State ADF grant. • This is why the County must look beyond the transfer station program to help achieve its goals of Zero Waste. It is vital to work more closely with the private sector to expand recycling opportunities for all the islands residents and businesses and to do so in the most cost effective manner as to minimize the burdens on the taxpayers. Fact: DEM has continued to provide diversion incentive funding to encourage the private sector to offer more convenient recycling. The 2 -Bin Recycling is part of the IRSWMP and is the best opportunity to increase recycling short of mandatory laws and financial incentives like the HI-5 program. Thank you for allowing us the opportunity to provide testimony on this very important subject. Sincerely, Dora Beck, P.E. ACTING DIRECTOR cc: Billy Kenoi, Mayor Bill Takaba, Managing Director Hunter Bishop, Deputy Director Greg Goodale, SWD Chief Linda Peters, Recycling Coordinator County of Hawai' i is an Equal Opportunity Provider and Employer.