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Home My WebLink AboutCOM 0107.158 2016-2018 PJCOUMCIL colm4. 107 Murashige, Laura COUNTY CLERK �� i,uuNTi OF 1UAV4A From: Joy Gold <joy@joygoldunlimited.com> Sent: Wednesday,July 05, 2017 12:51 PM 2017 JUL _5 RI I' 05 To: Council Testimony Cc: Dexter Yamada Subject: Billl3draft2 Testimony for Hawaii County Council Meeting, Friday,July 7 9:00am Attachments: KYD_July7_2017_Billl3draft2.pdf Aloha, On behalf of Dexter Yamada, President of KYD, Inc.dba: K Yamada Distributors, please accept the attached testimony for: Bill 13draft2,Amends Chapter 20,of the Hawaii County Code 1983 (2016 Edition As Amended) By Adding a New Article Relating to the Reduction of Polystyrene Foam "Styrofoam" Food Containers and Food Service Ware Hawaii County Council Hearing Fri. July 7-9:00 am Hilo Please call me at 808-368-1146 if there are any questions about the testimony submittal. Thank you, Joy Gold Joy Gold Unlimited 1136 Union Mall, Ste. 403 Honolulu, Hawaii 96813 Phone: 808-526-3770 Mobile: 808-368-1146 Email: joy@joygoldunlimited.com www.joygoldunlimited.com "Working with you to achieve your organization's mission and public policy goals" CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,is for the sole use of the intended recipient(s)and may contain confidential and privileged information.Any unauthorized review, use,disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. 1D11t6• R=f. To: _ 1 Ref. Date KYD, Inc. dba k. yamada distributors _ An independent leader in packaging and wholesale distribution P.O. BOX 29669, Honolulu, Hawaii 96820 Phone: (808)836-3221 Fax: (808)833-8995 Hawaii Island County Council Hearing July 7,2017 BILL 13draft2: "Amends Chapter 20,of the Hawaii County Code 1983 (2005 Edition,As Amended), By Adding a New Article Relating to Reduction of Polystyrene Foam "Styrofoam" Food Containers and Food Service Ware" Position: Oppose Testimony By: Dexter Yamada,Joy Gold Chair Poindexter,and Members of the Hawaii County Council: Dexter Yamada is President of KYD Inc,doing business as K Yamada Distributors.Joy Gold is a consultant to Dexter Yamada and KYD, Inc a locally founded,family run business in Kalihi since the 1940's as a florist and a supplier of florist supplies. In 1958 KYD evolved into the packaging company of today and later expanded into a distributor of many other fine products.Today, KYD, Inc and its sister company, Hawaii Finest Products, LLC(nee: Hawaii Foam Products, LLC)employ about 90 employees and contribute to Hawaii's economy through taxes and payroll.The companies manufacture and distribute food packaging materials and distribute a variety of supplies for food processors,food establishments,supermarkets, hotels, hospitals and other institutions. KYD testimony at the Feb. 21,2017 Environmental Management Committee (EMC) meeting presented science- based information about the health and safety of food-grade polystyrene food service ware and other facts to refute claims of harm to people as well as to marine animals. We continue to oppose Bill 13draft2 because: 1. This is a ban on EPS food containers and tied to the assumption that compostable food container products can be diverted to the County's compost facility by July 1,2018. We believe in the benefits of composting for agriculture and farmers and wish the County's composting facility every success. However,we believe that caution is needed for the exact time of on-line food waste and post-consumer food service container composting. Such composting is a complicated initiative that has faced major challenges in other parts of the Continent. Mandating the use of compostable products will economically impact East Hawaii food operators and Hawaii County programs. Without a composting facility, it will go to the landfill where it will not degrade. All foodservice ware will not degrade in landfills because of the absence of air and water. 2. There is no differentiation about polystyrene foam used for coolers, ice chests,and packaging and food grade polystyrene for food service containers in regards to ocean debris. Local marine scientists admit that more research is needed to ascertain how much of marine debris is from PS food service containers. StyrofoamTM,a DOW trademark product is used for insulation, packaging and other industrial uses. It is not the same as food-grade foam food service containers. Trop(Tropie< Hawaiian Plantations® �yv ROPEs� H Me TAW of Punedixe 1J 4 WILL CALL,G&A,AND WAREHOUSE OFFICES:2949 Koapaka Street,Honolulu,Hawaii 96819-1923 Phone:(808)836-3221 Fax:(808)833-8995 ILZIIKVD, Inc. dba k. yamada distributors n independent leader in packaging and wholesale distribution P.O. BOX 29669,Honolulu, Hawaii 96820 Phone: (808)836-3221 Fax: (808)833-8995 zg,.'. r. y<4✓ .•';e' F t`�e�•s�'F':::ai'. 'f•L��" c�d.�S,:n "I._ �r�'a -. 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V: dy 4 ,,,• ,...,2,,,:,,,....,, #::,,,.;a", ky � z E. 4' �fir' T / < 'rs >�., vdMa�f.'� 9%:i,I ,n.n,xke *'am � t'tn i �M'* 1�'44roy k.ga .. 77.4.* 'r-- „.,.,,‘,,,,,,:,L., r . ! fXC r'...S�3 '' r ,rtE�a W' k, ,-4„,. „ !2 � firNhR � EYQL 5 , / '�.......,i,,,-„-;'' ,i°fi-SL. 4 py fWg ri k F' 5 ay ! , % l > ° G' > <N< � • as• ''7':„;,.,:,,::°,,,,`44,� ��R + y ,,-. es, ( :<,4,1,20.113 xd i s ;7 '��;.+ & £ 7* ' f6�i„„ Q: �, L x° yx"� x � ta'kx. erse�. sxt N , ,iez < x; a .,y.t. Pacific Beach Coalition Photo(Styrofoam on the Beach) It is ironic the proposed ban bill exempts coolers,ice chests and packing material when these product fragments are more readily found in coastal areas. Rather than impose bans that will raise the cost to business as well as residents,stronger litter management and consequences for failing to dispose trash properly must be a focus of the Council and community. 3. Economics. Food operators buy food service ware by the cases and not by individual pieces of food containers so the unit cost of product is not really the focus of attention. Smaller mom/pop operators must outlay cash to purchase cases of product in advance of sales. This impacts thin profit margins and raising the cost of plate lunches is not always a competitive option. The price comparison between foam and compostable products by the case can be as much as $40.00/cs for regular pulp and$45.00/cs for higher-end potato-based product. (See attachment, KYD Cost Comparison Based on Freight Included in Pricing) According to one local distributor, East Hawaii businesses buy 80 percent foam food service ware and 20 percent compostable or other paper products. The demographics of West Hawaii reverse that ratio. The ban of PS foam products will have budget impacts on Hawaii County's Coordinated Services for the Elderly,affecting Meals on Wheels and Congregate Dining programs. (2016 Polystyrene Ban Research, Implications for Local Businesses and Consumers, Department of Research and Development, Business Resource Center) 4. PS Foam Ban—What Will It Accomplish? PS foam food service products are estimated at less than 1%of Hawaii County's landfill composition. (December 2009, IRSWMP,2-13). A much broader discussion about landfill diversion is needed since once banned, compostable and • alternative products will increase in the landfill. BioEnergy Hawaii,a private enterprise, must be involved in these broader county discussions because it is a part of the solution for landfill diversion, and includes the use of PS foam foodservice containers as a valued feedstock. Q Thank you for the opportunity to testify. b iC Hawaiian Plantations IQ 1I R'8+�/1` S li� The nil,ofri.the WILL CALL,G&A,AND WAREHOUSE OFFICES:2949 Koapaka Street,Honolulu,Hawaii 96819-1923 Phone:(808)836-3221 Fax:(808)833-8995 KYD, Inc. dba k. yamada distributors _ An independent leader in packaging and wholesale distribution P.O. BOX 29669,Honolulu, Hawaii 96820 Phone: (808)836-3221 Fax: (808)833-8995 Please keep in mind that the KYD sales prices are subjective because the wholesaler may sell it with a higher/lower margin. Ultimately,it is the end-user that pays for it. COST COMPARISON BASED ON FREIGHT, INCLUDED IN PRICING COMPOSTABLE FOAM CS COST UNIT PRICE COST/CASE P.S. DIFF DIFF (CS) COST/CS 8"x 8" HINGED CONTAINERS PULP(HIGHER END) 54.00/CS 20.00/CS 34.00/CS +0.17 CENTS 200/CS MORE/EACH 8"x 8" HINGED CONTAINERS PULP(STANDARD) 52.56/CS 20.00/CS 32.56/CS +0.163 CENTS 200/CS MORE/EACH 9 x 9 HINGED CONTAINERS PULP(STANDARD) :61 16/CS: 2956/CS 31.60/CS +0.158 CENTS 200/CS _ ; MO RE./EACH 6"x 6" HINGED CONTAINERS PULP(STANDARD) 79.36/CS 29.94/CS 49.42/CS +0.165 CENTS 300/CS MORE/EACH 10' ° PLATES COMPOSTABLE(POTATO BASE HIGH : :80:00/CS35.00/CS : 45.00/CS' +..0.09 CENTS.' END) 500/CS MORE/EACH 8.3"X 4.3" PULP TRAY 500/CS(STANDARD) 60.00/CS 20.00/CS 40.00/CS +0.08 CENTS MORE/EACH STANDARD STANDARD COMPOSTABLE COFFEE CUP W/ 55.00/CS 22.50/CS 32.50/CS +0.065 CENTS COFFEE CUP PLANT BASE LINING 500/CS MORE/EACH STANDARD ,STANDARD DARD COMPOSTABLE SOUP BOWL:;12' 105.00/CS 40.00/CS: 65.00/CS +0.13'CENTS SOUP BOWL OZ W/PLANT BASE LINING 500/CS: (12 OZ) MORE/EACH While the unit price differences for compostable and foam PS cost varies from $.06 to $.17,food service operators buy by the case. So the case price difference is what matters to the food operator. It's easy to see that some of local-style foods will not do well in the pulp containers. KYD customers like the feel of the higher end potato-based plate. It's sturdy, nice weight and local style foods will not soften, bend or leak from it. However,when customers see the case price difference compared to foam containers,they say, "Too expensive." While some people may do home composting,the vast majority of residents and businesses using compostable products probably do not. Without a commercial composting facility,compostable and EPS foam containers go to the landfill,where nothing degrades due to the lack of air and moisture to allow for bacteria to breakdown material. EPS Foam In Municipal Waste Streams: Less than 1%of the US Municipal solid waste stream (2012 EPA) Less than 1%in,Hawaii Islands' landfill (2009 IRSWMP) - Less than 1%of Maui landfill (Maui Waste Characterization Study) - Less than 1.9%of Kauai landfill (2016-2018 Overall MSW Composition), includes packaging, foam blocks,#6 containers I opiC Hawaiian Plantations ��011011/11R6ct1�s9 The TAW afParoJLm WILL CALL,G&A,AND WAREHOUSE OFFICES:2949 Koapaka Street,Honolulu,Hawaii 96819-1923 Phone:(808)836-3221 Fax:(808)833-8995