HomeMy WebLinkAbout2003-08-26 - AGENDA REPORTS - DIAPER RECYCLING PGM (2)UNFINISHED BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
AGENDA ITEM: 16
Item to be presented by: Chris Daste
August 26, 2003
REVIEW OF DIAPER RECYCLING PILOT PROGRAM
Field Services
RECOMMENDED ACTION
Council to receive information on the nine-month diaper recycling pilot program.
Based on the evaluation of the pilot results Council to direct staff to discontinue the program and
to instruct Knowaste to market the Knowaste Diaper Processor II (KDP II) for sale.
BACKGROUND
On May 13, 2003, staff presented an update on the progress of the first six -months of the diaper
recycling pilot program. City Council directed staff to continue the program for an additional
three months to further monitor the program and to gather the additional information needed to
evaluate the feasibility of implementing the program citywide.
As of August 12, 2003, the City has obtained the following information based on the
performance of the program:
• The program had an average number of 226.6 participants
• The average percentage of total households in the pilot area participating in the program was
98.7%
• The average number of households that setout a bin was 156
• The average setout rate for the program was 70.5%
• The total amount of diapers collected through the program was 43.1 tons
• The average amount of diapers collected per week was 2,155.9 pounds
• The total amount of diapers collected per household during the 40 week period was 381.4
pounds
• The total amount of fiber pulp that was recovered through the program was 6,140 pounds
• The total amount of plastics that was recovered through the program was 1,058 pounds
The City Council direction provided on May 13, 2003 was to continue to use the evaluation
criteria that were agreed to in the Memorandum of Understanding (MOU) that was prepared
prior to commencing the pilot. The MOU established the following evaluation criteria:
• Participation Rate
• Setout Rate
• Tonnage Collected
Continued To:l�
• Tipping Fees
Additionally, the City Council directed staff to pay particular attention to the cost of the program
and to the amount of diversion that would be obtained through the program. The following
results are further clarified in detail the "Staff Calculations and Details" attachment.
Participation Rate
The participation rate measurement is to evaluate, within the pilot service area, how many
residences that have diaper -aged children elected to participate by requesting a diaper recycling
bin. The target percentage for the participation rate is 70 — 100% of the eligible population.
Throughout the 40 weeks of the program, an average of 221.2 households participated in the
program, which was approximately 5.2% of the total population (contacted), which is roughly
98.7% of the total eligible population.
Setout Rate
The criterion was to determine, of the households participating in the program, on average how
many households setout their containers on a weekly basis. The target rate for the program was
70 to 100%u. On average, throughout the 40 weeks of the program, the average setout rate was
approximately 70.5%.
Tonnage Collected/Diversion
The criterion was to determine the amount of diapers that would be collected per child in the
program. The target amount was 375 to 675 pounds of diapers per child for a six-month period.
After 40 weeks worth of data, the amount of diapers collected per household in the program was
381.4 pounds, or, adjusting to a six-month period basis (26 weeks worth of data rather than 40
weeks), 247.9 pounds of diapers per household.
Amount of Diapers Anticipated Through a Citywide Program
Based on pilot program statistics, staff anticipates that the City would collect a total of 673.5 tons
of diapers per year through a citywide program. Knowaste, upon evaluating the City's
information felt that the numbers inaccurately represent the number of diapers that are in the
City. Therefore, Knowaste did its own set of calculations. Using four different methods for
calculating the amount of diapers in the City, Knowaste came up with estimates regarding how
many diapers are located in the City ranging from 1,300 tons to 1,985 tons (see attached letter).
Diversion
Based on 2001 generation numbers, the City could anticipate 0.22% diversion through a citywide
program. If the City were able to achieve the amount of diversion anticipated by Knowaste
(1,985 tons max) the City would obtain a total of 0.65% diversion through the program per year.
It should be noted that the City would get this amount of diversion with its current Base Year,
which was determined in the year 2000. Based on the atmosphere at the CIWMB and the City's
continuing growth, in the near future the City may need to prepare a new Base Year Study. The
CIWMB recommends that Base Years should be updated when one of fourteen different criteria
have exceeded established thresholds. The criteria include factors such as population growth,
commercial taxable sales growth, and the age of the Base Year. When the City must update its
Base Year, at that time the City will have to report the actual diversion obtained through the
recycling of diapers. Based on staff's conversations with the CIWMB Office of Local
Assistance and staff's experience with Base Years, there is a possibility that only a portion of the
diapers collected would be counted as diversion. The reason being that only the fiber pulp (24%
of the diaper by weight) and the plastic (10% of the diaper by weight) are actually recycled while
the water, super absorbent polymer (SAP), and waste (55%, 5%, and 6% of the diaper by weight
respectively) is directed to the sanitary sewer system. The remaining 66% will not count as
diversion or disposal since sewered items are not considered solid waste; rather it will now
become a part of the sewage treatment plant serving the location's diversion issue and not the
City. Since to the best of staff's knowledge the CIWMB has not had to evaluate an issue such as
this one in the past, the final decision will be left up to the Board Members of the CIWMB's
discretion, but if the CIWMB makes that determination, only approximately 34% of the total
weight of diapers collected will be counted as diversion. Therefore, the City will obtain 0.07%
(seven one-hundredth of one percent) diversion based on pilot program statistics or a maximum
of 0.22% diversion based on Knowaste's calculations.
Tipping Fees/Cost of Operation
The criterion was to evaluate the operations and maintenance costs to recycle diapers at the
processing location. A target operating cost was not established in the MOU since staff did not
have an adequate benchmark for determining what would be a reasonable cost for the
processing/diversion of diapers.
Staff's Calculation of Pilot Costs
Staff obtained information from Knowaste pertaining to the cost of processing the diapers for the
first six months of the program. Staff used this information to determine the cost of operating
the KDP II for the first six months of the pilot program, which was estimated at a total cost of
$61,485.48 or $1,845.86 per ton collected. Within the last three months of the program, the
program has continued to cost $46,852.78 or $3,520.78 per ton collected (note that permitting
fees were not calculated for the three months).
Proposed Collection Rates from Residential Franchise RFPs
In response to the proposals received for the City's Residential Franchise RFP, staff sent a
follow-up letter to the three final proposers (Blue Barrel, Burrtec, and Consolidated). In it, staff
requested alternative collection methods that would prevent households from being identified as
households with diaper aged children or incontinence pants users. The proposed rates for
collecting diapers range from $163,884 to $379,274 per year depending on the proposal and
method of collection. The alternative collection methods proposed will either have a high
potential for contaminating residential recyclables or may slow down the residential refuse
collectors.
Other Issues
City Survey — The City sent out a survey to residents participating in the program to gauge what
they thought about the diaper recycling pilot program. The City received a total of 118
responses to the survey before the deadline. The respondents gave the program favorable marks
and would like to see the program continue. Although it should be noted that 37% of the
respondents were not willing to have a nominal fee added to their trash collection bill, and of that
37%, the majority were people who commented that their children are almost potty trained and
they will soon no longer need to be in the program. A summary page of the survey results has
been attached for review.
Other Diversion Opportunities - In the year 2000, the City achieved a 42% diversion rate. The
City needs to divert an additional 8% of its waste, or based on 2001 waste generation numbers,
over 24,500 tons of waste, to be in compliance with AB 939. To reach the Council's goal of
75% the City will need to divert an additional 33% of its waste or over 101,000 tons of waste.
Although diaper recycling will provide additional diversion, resources may be better utilized if
the City concentrated on other programs that yield a higher diversion for lower costs. For
example, the CIWMB estimates that on average construction and demolition debris (C&D)
makes up approximately 12% of the waste going into landfills and that C&D recovery facilities
have a recovery rate of 60 to 90%. Creating an aggressive, high quality non-exclusive franchise
system for roll -off and temporary bin operators in concert with a C&D ordinance would cost the
City approximately $50,000 to $100,000 for the preparation of the agreements and ordinance and
then would be revenue neutral from that point on since the participants would have to offset the
costs incurred by the City (primarily staff time) through franchise and permitting fees.
Therefore, by implementing a non-exclusive franchise system and a C&D recycling ordinance,
the City can divert more waste for a lower cost.
Additionally, the City has incorporated enhancements to its current recycling program through
its RFP process. In its RFP the City has written in enhancements to commercial recycling,
multifamily recycling, larger recycling containers for single-family homes, and several other
programs to enhance the City's diversion. For example, the City's commercial sector disposed
of 67,774.82 tons of waste in 2001 and less than 15% was recycled. The maximum amount of
diversion anticipated through diaper recycling would only be a small fraction of what is currently
being recycled and would be a smaller fraction of the anticipated commercial recycling once
recycling containers will be provided to businesses free of charge.
Water — The amount of water needed to process the diapers can be anywhere between 1,128,000
gallons to 10,901,000 gallons per year. An average single-family home uses 237,250 gallons of
water per year.
Conclusion
During the May 13, 2003 Council Meeting, the Council instructed staff to continue the diaper
recycling pilot program and to evaluate it based on the criteria established in previous
agreements and on its cost and subsequent diversion. Based on the evaluation of the results, the
program did meet minimum thresholds for participation rate and setout rate, but did not meet
minimum requirements for the tonnage collected. Additionally, although the previous
agreements do not give specific criteria for the cost of the program or its subsequent diversion,
staff believes that the cost does not justify the amount of diversion anticipated through the
program at the present time or after the City completes its next Base Year, especially with the
number of other programs that the City can implement to achieve higher diversion for a lower
cost (Council did direct staff to evaluate the program on this additional criteria during the May
13, 2003 Council meeting). Based on these factors, staff is recommending that the Council
determine that the pilot was unsuccessful and to instruct Knowaste to commence marketing the
KDP II.
ALTERNATIVE ACTIONS
1. Council to approve an extension of the pilot for an additional period of time to further
evaluate the program.
2. Council to direct staff to implement a citywide program
a. Council to direct staff to put the program on hold until the implementation of the
new residential franchise in April 2006 and then to roll out the program citywide.
b. Council to direct staff to continue the program in the pilot area until the new
residential franchise is in effect and then roll out the program citywide.
3. Other action as determined by the Council.
FISCAL IMPACT
Funds in the amount of $500,000 were used for the startup and acquisition of the diaper
processor ($250,000 of General Fund expenses in 3811-8021 and $250,000 from a State Grant in
3815-8021). Based on the agreement signed between Knowaste and the City, if the Council
determines that the pilot was unsuccessful (using the guidelines outlined in the Service
Agreement), within 12 months of the end of the pilot, Knowaste will obtain a buyer for the KDP
II for a minimum purchase price of $250,000. If after good faith efforts no buyer is obtained,
Knowaste will pay the City $100,000 and assume all ownership rights to and liability for the
KDP II.
ATTACHMENTS
• Staff Calculations and Details
• Memo to Council Regarding the Cost of the Program for the First Six Months
• Letter from Knowaste to Staff Regarding Diaper Volumes and Diversion Estimates
CD:TLL:BAL
S9FIELDSVCS\ENVSRVCS\SOLWAST2\COUNCIL\2003\Diaper Recycling Pilot Program Evaluation 3.doc
City of Santa Clarita
Review of Diaper Recycling Pilot Program
Calculations and Details
August 26, 2003
Participation Rate
The participation rate measurement is to evaluate, within the pilot service area, how many
residences that have diaper -aged children elected to participate by requesting a diaper recycling
bin. This rate is calculated by determining the percentage of diaper generating households in the
service area requested a diaper -recycling bin. The target percentage for the participation rate is
70 — 100% of the eligible population.
To find participants in the pilot area, staff worked with Knowaste and Blue Barrel to prepare a
brochure with a survey that was to be sent out to every residence in the area. The brochure
explained the program to the residents and asked if they qualify for the program, and if they did,
if they would like to participate in the program. Working in concert with the brochure, staff
made phone calls to several homes that did not respond to the brochure. Additionally, since a
neighborhood that predominantly spoke Spanish that was selected for the pilot had a very low
response rate, staff worked with employees at the Community Center to go out door-to-door in
the neighborhood to discuss the brochure with the residents and to determine their willingness to
participate. Since the Community Center employees had a good relationship with the
community and went to visit them at their homes, the City had a very good response from the
community in the area. During the pilot period, Blue Barrel also sent out two newsletters to all
of their customers discussing the pilot program and encouraging them to participate in the
program if they do live within the pilot area. In addition to all of the outreach efforts made by
the City, Knowaste, and the hauler, the program received attention from print, radio, and
television media also helping to spread the word about the program. This outreach effort was a
very dedicated exhaustive effort that would be difficult to replicate on a citywide basis, therefore,
if the program were to be rolled out citywide, the participation rate may vary from the
participation rate from the pilot program.
On May 13`h, staff reported to the Council that there were a total of 231 participants in the
program, which was reported as 5.24% of the total population of the area and an estimated 98%
of the eligible population (based on the number of households that were contacted, since due to a
mailing house error, some houses were not contacted prior to commencing the program). On
average, throughout the 40 weeks of the program, a total of 221.2 households participated in the
program, which was approximately 5.2% of the total population.
Based on the information that staff currently has, 3 households located in the area were not
willing to participate in the program, which would create a 98.7% participation rate. According
to SCS Engineers in their feasibility study for the program, approximately 5.4% of the City's
population wears diapers. This is a rough estimate based on the extrapolation of census data,
since census data only covers children from 0 to 5 years of age and not diaper aged children
alone. Staff calculates that 5.2 is approximately 96% of 5.4. Since the City has no means of
determining exactly how many households do actually have diaper aged children, especially
since there are some households that have more than one diaper aged child while there are others
that may be babysitting diaper aged children during the day, staff believes that a 98.7%
participation rate is the best participation rate that can be calculated at the moment given staff's
current data.
Setout Rate
The criterion was to determine, of the households participating in the program, on average how
many households setout their containers on a weekly basis. The rate is calculated by determining
the percentage of households setting out their containers in comparison to the number of
households participating in the program. The target rate for the program was 70 to 100%.
In May the average setout rate during the pilot program was approximately 74.25%. On average,
throughout the 40 weeks of the program, the average setout rate dropped to approximately
70.5%. The setout rate for the first six months of the program had a range from 68.2% to 82.1%
while the setout rate for the subsequent three months had a range from 57.9% to 68.7% leading
to the lower setout rate.
Tonnage Collected/Diversion
The criterion was to determine the tonnage of diapers collected throughout the pilot program,
based on a per child basis. The target amount of diapers collected was 375 to 675 pounds of
diapers per child for a six-month period. The original intent of the evaluation criteria was to
determine the total diversion expected through the program, since according to a diaper recycling
feasibility study conducted by SCS Engineers, the City should expect up to 2.5% diversion from
diaper recycling. This was based on calculations performed by SCS that estimated that a child
would produce 31 pounds of (wet) diaper waste per week or 806 pounds of diapers per six month
period. Later staff found that the numbers were not as accurate since the City updated its base
year and found that its residential generation rate (31%) was lower than its commercial
generation rate (69%) and it was not almost an even split (49/51) as was determined in the City's
previous base year. Therefore, if the diaper generators were to generate as many diapers as
anticipated by SCS, the amount anticipated through the study would contribute to less diversion
then anticipated.
For purposes of preparing this information, staff calculated the amount of diapers generated per
household rather than child by calculating the amount of diapers collected through the program
and dividing the amount by the average number of participants in the program. In May the
amount of diapers collected per household (not child) in the program was 271.2 pounds. After
40 weeks worth of data, the amount of diapers collected per household in the program was 381.4
pounds, or 247.9 pounds per household per six month period.
Amount of Diapers Anticipated Through a Citywide Program
To determine the amount of diapers that the City can expect through a citywide program, staff
used the data from the pilot program to determine how many diapers can be expected per
household per year. Based on pilot program data, staff anticipates 495.8 pounds of diapers per
household (twice the amount expected per six month period). Staff then determined how many
residential units (including multifamily) are expected to participate in the program assuming that
the participation rate would stay the same in a citywide program, through this calculation staff
estimates that there would be a total of 2,717 households that would participate in the program.
Using the two amounts determined above, staff multiplied the numbers together to determine the
total amount of diapers anticipated through a citywide program. Based on staff's calculations,
staff anticipates collecting a total of 673.5 tons of diapers per year.
Knowaste, upon evaluating the City's numbers felt that the numbers inaccurately represent the
number of diapers that can be found in the City. Therefore, Knowaste did its own set of
calculations. Using four different methods for calculating the amount of diapers in the City,
Knowaste came up with four separate estimates regarding how many diapers are located in the
City. All of the estimates are based on a greater participation rate than the current rate and a
70% capture rate from the pilot program.
Calculation Method
Minimum Tonnage
Maximum Tonnage
Households Extrapolation
1,500
1,985
Santa Clarita Demographics
1,550
1,650
CIWMB/Waste Characterization
1,470
1,940
Comparable City
1,300
1,950
Diversion
To determine the total amount of diapers that would be collected and the subsequent diversion,
staff used the amount of diapers anticipated through a citywide program and compared it to the
City's generation numbers for the year 2001 (306,368 tons) since the generation numbers for
2002 and 2003 are not yet available, although, based on the City's growth, staff anticipates that
the subsequent years' generation numbers should be significantly greater. The City's generation
number is a number calculated by the California Integrated Waste Management Board (CIWMB)
to determine a City's diversion. Since the CIWMB puts a higher priority on reducing and
reusing waste materials over recycling them, the CIWMB uses the generation numbers to
accommodate diversion through reducing and reusing. To calculate a City's diversion the
CIWMB must first establish a Base Year, where, through an exhaustive study, all of the City's
diversion is calculated and accounted for. Using the Base Year the CIWMB anticipates the
growth of the City taking into consideration factors such as population growth and commercial
taxable sales and calculates what the City's new generation number should be (the total amount
of waste generated). Then the CIWMB takes that number and compares it to the amount of
waste landfilled by the City to determine the City's diversion.
Based on the 2001 generation number for the City, the City could anticipate 0.22% diversion. If
the City were able to achieve the amount of diversion anticipated by Knowaste (maximum
amount of 1,985 tons) the City would get a total of 0.65% diversion through a citywide diaper
recycling program.
It should be noted that the City would get this amount of diversion with its current Base Year,
which was determined in the year 2000. Based on the atmosphere at the CIWMB and the City's
continuing growth, in the near future the City may need to prepare a new Base Year Study. The
CIWMB recommends that Base Years should be updated when one of fourteen different criteria
have exceeded established thresholds. The criteria include factors such as population growth,
commercial taxable sales growth, and the age of the Base Year. When the City must update its
Base Year, at that time the City will have to report the actual diversion obtained through the
recycling of diapers. Based on staff's conversations with the CIWMB Office of Local
Assistance and staff's experience with Base Years, there is a possibility that only a portion of the
diapers collected would be counted as diversion. The reason being that only the fiber pulp (24%
of the diaper by weight) and the plastic (10% of the diaper by weight) are actually recycled while
the water, super absorbent polymer (SAP), and waste (55%, 5%, and 6% of the diaper by weight
respectively) is directed to the sanitary sewer system. The remaining 66% will not count as
diversion or disposal; rather it will now become a part of the sewage treatment plant serving the
location's diversion issue. Since to the best of staff's knowledge the CIWMB has not had to
evaluate an issue such as this one in the past, the final decision will be left up to the Board
Members of the CIWMB's discretion, but if the CIWMB makes that determination, only
approximately 34% of the total weight of diapers collected will be counted as diversion.
Therefore, the City will obtain 0.07% diversion based on pilot program statistics or a maximum
of 0.22% diversion based on Knowaste's calculations.
Additionally, although the City can partner with other cities for the recycling of diapers, such
partnerships would only assist in offsetting the cost of processing diapers and would not assist in
the City's diversion efforts. Since the other cities would be directing their diapers to the
processor, the amount collected from those cities would count as their diversion efforts and not
the City of Santa Clarita's. Although, any residue solid waste generated through the processing
of the diapers may actually count as the City's disposal, though staff anticipates that the amounts
would be minimal in comparison to the amount of waste generated in the City.
Tipping Fees/Cost of Operation
The criterion was to evaluate the operations and maintenance costs to recycle diapers at the
processing location. A target operating cost was not established in the MOU since staff does not
have an adequate benchmark for determining what would be a reasonable cost for the
processing/diversion of diapers.
Staff Calculation of Pilot Cost
Staff obtained information from Knowaste pertaining to the cost of processing the diapers for the
first six months of the program. Staff used this information to determine the cost of operating
the KDP II for the first six months of the pilot program. Staff used several factors for
determining the cost of processing the diapers. The cost factors were as follows:
• Water Usage — Based on the specifications of the KDP II, approximately 1,032 gallons of
water is used per ton of diapers processed.
• Electricity Usage — The processor runs on a minimum of 225 AMP, therefore, electricity
costs contribute to the cost of operating the KDP II.
• Sewage Costs — All of the wastewater plus the human waste and SAP are directed to the
sanitary sewer system.
• Treatment Chemicals — Each batch of diapers requires two gallons of sodium hypochlorite
and 100 pounds of aluminum sulfate.
• Permitting — To operate the KDP II the City would need to obtain permits from the Air
Quality Management Districts, from the Sanitation Districts for the use of the sanitary sewer
system, and permits relating to the citing of the processor.
• Employee Wages/Equipment Maintenance — The KDP II would require at least one
employee with knowledge about the equipment to operate it. Additionally, the equipment
would require regular maintenance to insure that it is running properly and to prevent it from
breaking down.
• Collection Costs — An additional effort must be made by the waste hauler to collect the
diapers.
Based on the criteria, staff did the following to determine the cost of the program for the first six
months of the program. It should be noted that the following amounts are based on the first six
months, therefore, it does not contain adjustments for any losses due to equipment failure or take
into consideration that the machine was not operated at full capacity:
Item
Cost During 6-
Notes
month Pilot
Water
$10,584.22
Based on the Castaic Lake Water Agency rate of
$0.87 per cubic foot of water
Actual data not available since KDP it ran on
Electricity
$271.00
electricity from a generator. Knowaste provided
the data based on a conservative rate of 75% load,
based on a kilowatt ratinq of 107
Sewage
$274.00
Knowaste provided the cost for sewage based on a
rate of $0.33 per gallon of discharge
Treatment Chemicals
$918.00
Knowaste estimated that the chemical costs would
be $27.00 per batch ton
Knowaste had to resubmit several permits leading
Permitting
$22,872.96
to an increase in permitting costs, ongoing
permitting costs would be significantly less
Employee
Knowaste estimated the employee rate for a KDP II
Wages/Maintenance
$4,762.80
operator would be $18.90 per hour (including
overhead
Collection Costs
$21,802.50
Based on Blue Barrel Driver rate of $90.00 per
hour finclurfinn overhead
TOTAL
$61,485.48
Cost er Ton Collected
$1,845.86
Proposed Collection Rates from Residential Franchise RFP
When the City released the Residential Franchise RFP, in it the City asked the haulers to put in
separate information that would indicate how much more single-family home residents would
have to pay for a citywide collection program. Part of the program would also include the
collection of diapers from hospitals, day care centers, and other commercial diaper generating
locations. As a result, the proposers submitted the following information to the City:
Proposer
Rate Increase per Every Single -Family
Residential Household per Month
Total Cost for Collection per Year
BFI
$0.95
$445,000
Blue Barrel
$0.70
$328,000
Burnec
$0.81
$379,000
Consolidated
$6.66
$309,000
Crown
$6'23
$2,917,000
Harrison
$1.00
$468,000
$2.00 if extended to multi -family)
In the follow-up to the proposals that staff prepared for three of the haulers (Blue Barrel, Bumec,
and Consolidated) staff requested alternative collection methods that would secure households
from being identified as households with diaper aged children or incontinence pants users. The
general theme to the haulers response was to do a co -collection program, where the diapers
would be placed in a separate bag that will be placed with the recyclables (increasing the
potential for contamination of the recyclables). Another proposed method was to place the bags
in the trash container, and then the driver who will have a list of participants will then have to get
out of his vehicle when he gets to the house and will retrieve the bag and will place it in a
separate compartment of the truck, which will significantly slow down the driver in collecting all
of the containers in his route. Although these proposed methods would either increase the
potential for the contamination of the recyclables or will significant slow down the trash
collector, the proposers proposed an overall decrease in collection costs for the diapers. The
proposed rates for collecting diapers range from $163,884 to $379,274 per year depending on the
proposal and method of collection.
Other Issues
Other Diversion Opportunities
In the year 2000 the City had a 42% diversion rate, therefore, the City needs to divert an
additional 8% of its waste, or based on 2001 waste generation numbers, over 24,500 tons of
waste. To reach the Council's goal of 75% the City would need to divert an additional 33% of
its waste or over 101,000 tons of waste. Although the recycling of diapers could give the City
additional diversion, City money and staff time would be better utilized if the City concentrated
on other diversion activities that may yield higher diversion for a lower cost.
Currently, the City has not yet adequately addressed commercial recycling, the implementation
of a construction and demolition debris ordinance/program, or potential enhancements to multi-
family recycling programs. Although the new franchise agreements were written to encompass a
few of these issues, the City can still yield higher diversion numbers for a significantly lower
cost by focusing staff time and efforts on these topics. At the point where the City is at in
diversion, the City would better be able to address its diversion needs by not focusing on one
specific commodity rather than focusing on the greatest generators of landfilled waste in the
City.
Privacy of Participants
In evaluating the potential for rolling out the program citywide, the privacy of the diaper
recycling program participants should be taken into consideration. Some residents with diaper
aged children would prefer to not advertise that they have diaper aged children in their
households to others. Additionally, many adults wearing adult incontinence products would not
like to let their neighbors and others know that they are wearing such products by placing diaper
containers out in front of their houses. Therefore, staff asked the proposers to supply the City
with alternative proposals. The alternatives in essence involved commingling the diapers with
the recyclables or with the residents' trash. This led to a rate reduction, although staff is still
concerned with the potential contamination of the City's recyclables (especially if the
contamination ends up offsetting the subsequent diversion) and the potential impact to the
haulers being able to collect the residents' trash at a reasonable rate.
TLL:BAL
S:\FIELDSVCS\ENVSRVCS\SOLWAST2\COUNCIL\2003\Diaper Recycling Pilot Program Evaluation Reading FileAce
CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO:L A,4
and City Councilmembers
FROM: eCity a
DATE: July 16, 2003
SUBJECT: OPERATION COST FOR INITIAL SIX MONTHS OF KDPII PROGRAM
At the City Council meeting of May 13, 2003, Council requested that staff obtain and analyze
information pertaining to the operational costs incurred by Knowaste for the initial six -months
operation of the Knowaste Diaper Processor II (KDPII) pilot program. Based on actual
information provided by Knowaste and on some assumptions made by staff or Knowaste, staff
estimates that the program costs amounted to approximately $61,485.48 or $1,845.86 per ton of
diapers processed. This is a calculation of the operating costs alone and does not include the
purchase of the machine or expense for education and outreach efforts.
The following assumptions were made for obtaining this calculation:
• The cost for water was based on the Castaic Lake Water Agency rate of $0.87 per cubic
foot of water.
• Knowaste provided the cost for sewage based on a rate of $0.33 per gallon of discharge.
• Knowaste provided the cost for electricity based on a conservative rate of 75 percent
load, based on a kilowatt rating of 107.
• The employee cost is based on an estimated employee rate provided by Knowaste of
$18.90 per hour (including overhead).
• The miscellaneous costs are based on the cost for purchasing chemicals required to run
the processor, which was estimated by Knowaste to be $27.00 per batch (ton).
The attached summarizes the factors used to determine the total costs. Please note that this may
not completely reflect the actual costs for running the program because the KDPII was not
operated at full capacity.
Please feel free to contact me at (661) 255-4905 with any questions that you may have regarding
the City's diaper recycling pilot program.
KP:TL:sas
S:\FIELDSVCS\ENVSRVCS\SOLWAST2\1)iaper\Cost for first six months memo to Council.doc
Attachment
cc: Chris Daste. Director of Field Services
Travis Lange. Environmental Services Manager
$4,005.00
$0.00
11,440.00
$2,925.00
$0.00
9,600.00
$3,240.00
$0.00
13,270.00
KDP II OPERATION COSTS
'Average is based on expenditures for the same month for at least 3 previous years
November
December
Residential Driver Casts
$2,880.00
Residential Driver Costs
Commercial Driver Costs
$405.00
Commercial Driver Costs
Amount of Diapers Collected (lbs)
5,860.00
Amount of Diapers Collected (lbs)
January
February
Residential Driver Costs
$2,970.00
Residential Driver Costs
Commercial Driver Costs
$0.00
Commercial Driver Costs
Amount of Diapers Collected (lbs)
8,600.00
Amount of Diapers Collected (lbs)
March
April
Residential Driver Costs
$2,790.00
Residential Driver Costs
Commercial Driver Costs
$0.00
Commercial Driver Costs
Amount of Diapers Collected (lbs)
9,120.00
Amount of Diapers Collected (lbs)
May
Residential Driver Costs
$2,587.50
Commercial Driver Costs
$0.00
Amount of Diapers Collected (lbs)
8,730.00
Total for 6 -Month Pilot
Water Use
91,000
Water Expenditures
$10,584.22
Actual Sewage Expenditures
$274.00
Actual Electricity Expenditures
$271.00
Permit Fees
$22,872.96
Employee Hours
252
Employee Cost
$4,762.80
Misc. KDPII related Expenditures
$918.00
Residential Driver Costs
$21,397.50
Commercial Driver Costs
$405.00
Amount of Diapers Collected (tons)
33.31
Total Cost
$61,485.48
Cost per Ton
$1,845,86
$4,005.00
$0.00
11,440.00
$2,925.00
$0.00
9,600.00
$3,240.00
$0.00
13,270.00
ENVIRONAq N q SERVICES
pES/0N
PIAN AUG 052003
NINC AND BUILDI
4
CI
GS
HACKER, KANOWSKY & BRALY, LLP Attorneys and Counselors at LawwDFSANIq CLR lgRVICES
A Limited Liability Partnership
24510 Town Center Drive / Suite 200 / Valencia, CA 91355 / Phone: (661) 259-6800 / FAX: (661) 259-6836
August 4, 2003
VIA FACSIMILE & U.S. MAIL
Fax No. (661) 259-8125
Mr. Ben Lucha, Environmental Services
City of Santa Clarita
23920 Valencia Blvd., Suite 220
Santa Clarita, California 91355
Re: Disposable Diaper Volume and Diversion Estimates
Dear Mr. Lucha,
Over the past few months, Knowaste and the City of Santa Clarita have been working together
on our diaper recycling demonstration program. Knowaste has demonstrated the ability of our
technology to successfully separate the components of a disposable baby diaper and recover the
pulp fiber and plastic for recycling. In addition, the program has been evaluating the
willingness of city residents to participate in a collection program and the ability to collect this
waste in an effective and cost-efficient manner.
The purpose of this letter is not to discuss the results of the demonstration program or the
specific goals of that program. We will do that separately. This letter is to discuss a separate
question raised by the city that is quite important. Specifically, how much disposable diaper
waste can be diverted from landfill using a citywide recycling program?
Of course, neither the City of Santa Clarita nor Knowaste knows the exact amount of diaper
waste that is generated by Santa Clarita residents, but we believe that it is possible to develop a
reasonably accurate estimate using a variety of methods. The purpose of this letter is to assist
the City by discussing several possible methods for estimating tonnage using our experience in
other locations, various government studies and reports, and the information from the
demonstration project.
Knowaste has spent a great deal of time analyzing the amount of diversion that the City would
expect from a citywide diaper recycling program. To date, the diversion estimates have covered
a large range, including the 6,741 tons in the SCS Engineering study and the city staff estimate
contained in the May 12`h staff report of 661.7 tons. The same staff reported Knowaste's
estimate of 1,260 tons, which is on the low-end of the expected range. As we reach the
conclusion of the demonstration program, we believe it is time to revisit these figures because
of the wide range in estimates, particularly the large difference between city staff s and
Knowaste's estimates. We believe that our analysis will assist the city staff and the Council in
forming their final decision.
Mr. Ben Lucha, Environmental Services
City of Santa Clarita
August 4, 2003
Page 2
As discussed in the detailed analysis below, we conservatively estimate the tonnage that can be
collected from residential, city-wide diaper collection (excluding daycare centers and all
sources of adult incontinence) to be between 1,300 and 1,985 tons per year. With daycare
centers, adult incontinence products, or other municipalities included, this figure would be
much higher. Using the Knowaste process, at least 90% of this tonnaa could be diverted from
landfill. Based upon 61,342 tons of residential waste in Santa Clarita, this diversion of diaper
waste would represent 2% -3% of that residential portion of the total waste stream.
In the rest of this letter, we discuss the methods used for estimating A) tonnage collected and B)
tonnage diverted.
A) Diaper Tonnage Collected
We have selected four methods of estimating the total and collectible tonnage from available
data. We should not expect that different methods will yield the same result, but looked at
together they provide some comfort that our range of estimates is reasonable. Whenever
possible we will identify the weaknesses and strengths of each method and the potential errors
and ranges of estimates.
It should be noted again that we limited the estimated tonnage to the residential, baby diaper
market in Santa Clarita. We did not consider the possibility of obtaining tonnages from other
likely sources including: other municipalities, daycare centers, or hospitals. We also did not
include incontinence products that could come from residences, care facilities or nursing homes.
• Method 1. Extrapolation of Households in Test — An estimate based upon the
extrapolation of the number of households participating in the demonstration project.
• Method 2. Santa Clarita Demographic Analysis — An estimate of the total tonnage
available for collection based upon demographic data.
• Method 3. CIWMB/Characterization Studies — An estimate of total tonnage from the
U.S. EPA and the California Integrated Waste Management Board (CIWMB) and other
characterization studies.
• Method 4. Comparable City Method — Based upon the experience of a city in Ontario,
Canada that has implemented disposable diaper collection on a citywide basis.
Method 1. Extrapolation of Households in Test
We understand that the City of Santa Clarita extrapolated the results of the demonstration
program to a citywide program using the number of participating households as a percentage of
the total households in Santa Clarita. In the May 12th report, city staff estimated 661.7 tons of
Fmm CIWMB 1999 data.
Mr Ben Lucha, Environmental Services
City of Santa Clarita
August 4, 2003
Page 3
diversion. We will outline the way this was estimated and show why we believe that estimate is
too low.
The City sent brochures to 4,450 single-family residential units (and sent an unspecified number
of Community Center employees to the Newhall area). This generated 233 participants (214
initially) with 3 rejections for a response rate of 5.26% of households in the test areal. Then, in
order to estimate the tonnage in a citywide program the city assumed the same 5.26% positive
response rate and the current collection of 2,160 pounds per week and multiplied that by 11.78
(52,422 total households divided by the test area of 4,450). This results in the 661.7 tons per
year estimated by city staff.
From the demonstration, we can safely conclude that almost 100% of the people who responded
wanted to participate, which is a very positive result. However, the problem occurs when the
May 12`s report asserts that while "there is no way to verify the actual number of diaper -aged
children", the staff believes that "approximately 98% of eligible residents in the pilot area are
participating in the program." The city apparently reached this conclusion because 5.26% is
consistent with the SCS Engineering estimate that 5.4% of the population is diaper age children.
However, 5.4% of the population would be 8,640 children while 5.26% of households
represents 2,758 total households. The estimate of 661.7 tons would be true only if there are
3.13 diaper age children per household. Assuming that there are much closer to 1 child per
household (in diapers), then the estimate should be about 3 times larger or 1,985 tons. Even
reducing this figure for a more conservative estimate of number of children as discussed under
Method 2, this would result in at least 1,500 tons.
This estimated tonnage is more consistent with our other methods discussed below. Of course,
this result also means that in our current demonstration project, sending 1 brochure was clearly
not sufficient to reach all the households in the test area. Based upon the low rejection rate, we
believe that a higher participation rate is quite reasonable given more publicity. However,
given a citywide program and further communication efforts, we believe that the participation
rate would certainly approach that achieved in Orillia, see Method 4. We also believe that if
direct marketing professionals were polled, they would be confirm that a 33% initial response
rate is very impressive considering that direct mail returns 1-2% at best.
Method 2. Santa Clarita Die noLyraphic Analysis
Based upon demographic data that we obtained from the City of Santa Clarita website, we
estimated the number of babies in diapers and then estimated the amount that would be
collected from those babies using our experience in the Santa Clarita demonstration program
and confirmed by our experience from the Smallplanet division of Knowaste.
Minor note - 233/4450 = 5.239% but throughout the Mav 12" report 516% is used.
Mr. Ben Lucha, Environmental Services
City of Santa Clarita
August 4, 2003
Page 4
Our method would be quite similar to the method used by SCS Engineering in their report
prepared for the City that estimated 6,741 tons of diaper waste generated by Santa Clarita
residents. However, while we believe that the method is valid, our calculations are a bit more
conservative. To calculate the total diaper waste generated, SCS performed the following steps:
First, SCS concluded that the average child uses 5,000 diapers in the first 30 months of use.
This is from an Ohio State University Study and is consistent with our experience. This
translates to 38.5 diapers each week or 5-6 per day.
Second, SCS then multiplies the number of diapers used by the weight per diaper. SCS used
0.75 pounds per diaper for their estimate. According to SCS, this estimate was generated by an
SCS characterization study. We don't have access to this study, but we have weighed diapers in
Santa Clarita, Canada, and Europe and have consistently found a lower figure, between 0.33
and 0.36 pounds per diaper on average. For this estimate, we used the lower figure. Further our
weight estimate is confirmed by EPA data discussed and footnoted in Method 3.
Third, SCS estimated the number of children of diaper age. Using census data on children, SCS
estimated 8,427 children in diapers in Santa Clarita. Knowaste estimates 6,200 children.
Knowaste used data specifically from Santa Clarita while SCS estimated Santa Clarita figures
using data for LA County. SCS also seems to have made a calculation error in their estimate of
children between 0 and 2.5 years old .3
Fourth, by multiplying these figures, you estimate the tonnage per year. 38.5 diapers/week x
0.33 pounds/diaper x 6,200 children generates about 40 tons per week on a citywide basis and
2,050 tons per year (over 2,200 tons per year assuming 0.36 pounds) °
Assuming that all of this is collected, this method estimates 2,050 —2,200 tons. With a 75%
setout rate, we estimate approximately 1,550-1,650 tons.
Method 3. CIWMB Profile of Santa Clarita (2000)
Throughout the US and Canada, federal, state/provincial, and local governments have
performed waste characterization studies to understand the contents of our municipal waste
stream and find ways to divert this tonnage from landfill and into productive uses. The State of
California and the California Integrated Waste Management Board (CIWMB) have done
extensive studies of this kind. However, in most of these. studies, diapers are not specifically
categorized thus making accurate estimates difficult. Of Santa Clarita's estimated 61,342 tons
' SCS states that they divided by 4 and multiplied by 2.5 because their data was for children from "0-4 years old". The data
Knowaste multiplied by 5 since our data was for children "under 5 years old." The SCS report indicated that its data for
LA County shows children aged 0-4 (8.6%). The source we used shows 7.7% for children under 5 in LA County.
Knowaste used the figures for Santa Clarita from the website (7.8%)
' While SCS rounded upward once during the calculation, we have not included any rounding here.
Mr. Ben Lucha, Environmental Services
City of Santa Clarita
August 4, 2003
Page 5
of residential waste from the 1999 CIWMB study, diapers are included in the
Remainder/Composite Organic category that represents 9.5% or 5,880 tons of waste. We
believe that diapers represent probably the largest single component of this category, but we do
not know the % that diapers represent. Even at just 25% to 33% of this category, diapers would
represent 2.4-3.2% of the total residential waste stream and 1,470 —1,940 tons respectively.
In 1990, the U.S. EPA estimated that there are 16 billion baby diapers and representing 2.7
million tons of Municipal Solid Waste (MSW) each years. Out of the total of 230 million of
MSW, the agency estimated that diapers represented 1.2% of the waste stream. 6 However, the
U.S. EPA includes commercial and institutional waste in its figures. Therefore, assuming Santa
Clarita is average, 1.2% of total waste, 211,523 tons would be 2,500 tons. Even after adjusting
for a 75% setout rate, this figure would be 1,775 tons.
According to another statistic of the U.S. EPA, the average person throws away 4.6 pounds of
waste per day. Based the current population, Santa Clarita residents would generate 125,000
tons of waste per year. At 1.2% of this figure, Santa Clarita would generate 1,500 tons.
SCS reported that during a one-vear period the City of Orillia collected diapers representing
4.6% of total garbage. If Orillia was used as a large waste characterization study, the estimate
for Santa Clarita is even higher. Without estimating for the hieher number of children per
capita. Santa Clarita would collect 2.820 tons per year.
Method 4. Comparable City Method
The small city of Orillia, Ontario, north of Toronto, has been collecting diaper waste for the past
few years. Orillia began collecting the diapers in 1997 and has significant direct experience in
the tonnage of diaper waste that can be reasonably collected. Orillia is too small for a KDP of
its own and intends to send the material to a larger city for processing. The City of Orillia
provides an interesting benchmark for Santa Clarita because they have a mature program in
place and therefore are not based upon theoretical calculations don't need to be adjusted for
participation rate or setout rate.
According to the City of Orillia, they collect approximately 240 tons of diaper waste per year in
their collection program. As a city much smaller than Santa Clarita, we adjusted this figure for
population. Based upon a size 5.4 times larger 8, the Santa Clarita would collect 1,300 tons.
5 This EPA data also confirms our weight assumptions in Method 2 at 0.338 pounds per diaper.
e SCS quotes a figure of 1.4% of the waste stream.
7 Per the CIWMB, total MSW for Santa Clarita was 211,523 tons in 1999, 61,342 or 29% of that is residential. Growing with population this
figure would be closer to 220-225,000 tons.
8
In the 1996 census. Orillia had 27.846 residents. According to the Statistics Canada website. the 2001 population is 29.121. Accordine to
the Citv of Santa Clarita's website. the 2002 000uiation Is estimated to be 158500.
Mr. Ben Lucha, Environmental Services
City of Santa Clarita
August 4, 2003
Page 6
Adjusting by children of diaper age instead of population, Santa Clarita would be 8.1 times
larger and collect 1,950 tons.9
While we don't have more detailed demographic data to compare Orillia to Santa Clarita,
Orillia is actually a conservative estimate considering the following facts:
• Both are cities outside of a much larger metropolitan areas,
• Canada overall has a lower birthrate than the United States, an estimated 11/1,000 births
compared to more than 14 for the US.10
B) Tonnaae Diverted
After collecting the diaper waste tonnage, the material would be processed by Knowaste's KDP
machine instead of being landfilled. In the processing of diapers, the KDP generates pulp fiber,
plastic material, wastewater, and waste material. In total, 90% of the weight of the original
material will be diverted from landfill with 10% of the material filtered out during the Knowaste
process. Based upon our tonnage estimates above, the following diversion will be possible:
Summary
In the table below, we summarize the high and low estimate from each of the four methods (leaving out
in between estimates where applicable.):
Nieffiod
1
2
3
4
In each our analyses, using multiple methods and sources, we would conclude that diaper
collection on a citywide basis can have a significant impact on overall diversion rates for the
City of Santa Clarita. We estimate that between 1,300 and 1,985 tons can be collected and 90%
diverted from landfill representing 2-3% of the residential waste stream.
9 According to the statistics Canada website, 2001 population of from 0-4 years is 1,525 or 762 from 0-2.5 years. According ro the City of
Santa Clarita's websire, the 7.8% of the population is between 0-4 years from the 2000 census, estimated to be 6.178 in 2002.
'o CIA: World Factbook 2002
• - • •. .�•• .0END
•
IR-O.U�ll • u
•� .ii .u• •
��
�
In each our analyses, using multiple methods and sources, we would conclude that diaper
collection on a citywide basis can have a significant impact on overall diversion rates for the
City of Santa Clarita. We estimate that between 1,300 and 1,985 tons can be collected and 90%
diverted from landfill representing 2-3% of the residential waste stream.
9 According to the statistics Canada website, 2001 population of from 0-4 years is 1,525 or 762 from 0-2.5 years. According ro the City of
Santa Clarita's websire, the 7.8% of the population is between 0-4 years from the 2000 census, estimated to be 6.178 in 2002.
'o CIA: World Factbook 2002
Mr. Ben Lucha, Environmental Services
City of Santa Clarita
August 4, 2003
Page 7
In conclusion, it is also important to note that we have not adjusted our estimates for the
following factors:
• Santa Clarita growth above the average in California (in a state that has also growing faster
than the average) and the impact of that growth on tonnage forecasts for 2005, 2010.
• Tonnage from daycare center collection
• Tonnage from nursing home or convalescent collection
• Tonnage from other municipalities
We would appreciate the opportunity to discuss these details in person and to use our combined
data to accurately determine the impact of a citywide program for the City of Santa Clarita. We
can also discuss, and will separately report on, the results of the demonstration project itself.
Sincerely,
4"A— (,�.�..�
Hunt C. Braly
HCB/ilm
cc: Roy Brown, President, Knowaste, LLC
Chris Daste, Director, Field Services, City of Santa Clarita
Travis Lange, Environmental Services Manager, City of Santa Clarita