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HomeMy WebLinkAbout2003-05-13 - AGENDA REPORTS - DIAPER RECYCLING PILOT PGM EXT (2)NEW BUSINESS DATE: SUBJECT: DEPARTMENT: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: May 13, 2003 Agenda Item: �li�/i✓.I /i u� DIAPER RECYCLING PILOT PROGRAM UPDATE AND PILOT EXTENSION Field Services RECOMMENDED ACTION Council to receive information on the six-month diaper recycling pilot program, approve an extension of the pilot for an additional three months on the condition that Knowaste cooperates with providing data needed to further evaluate the program. Council to direct staff to return with item on a regular council meeting agenda at the end of the three-month period to provide program update. BACKGROUND Program History On April 10, 2001, Council directed staff to implement a six-month residential diaper -recycling pilot program. As a result, staff coordinated a partnership between one of the City's waste haulers (Waste Management), Knowaste (the manufacturer of the Knowaste Diaper Processor II), and BFI (for the housing of the processor). To implement the pilot program, staff worked with Waste Management and Knowaste to identify viable residential locations for the pilot. In an effort to demographically represent the entire City, four residential neighborhoods were selected to participate. All of the communities chosen had the same collection date, but were located in different areas of the City. The selected neighborhoods were as follows: A F fll, 0WEi • Newhall (area between Pine Street and Race Street) • Canyon Country (area south of Soledad Canyon Road and west of Via Princessa Parkway) • Area behind Granary Square • Circle J area There are approximately 4,450 single-family residential units located in these areas. Initially staff contacted these households by mailing out brochures and by sending Community Center employees to the Newhall area to talk with the Spanish speaking residents. As a result, 214 residents initially agreed to participate in the program, and three residents that were eligible for the program declined. Therefore, after several months of planning and preparation, the City implemented the nation's first Diaper Recycling Pilot Program to the four neighborhoods on November 12, 2002. The program received recognition from the media, and was featured in local news along with an international Spanish channel, CNN, and the BBC. Results In the Memorandum of Understanding (MOU) signed between the City, Knowaste and the waste haulers on June 28, 2001, all of the parties involved in the program agreed to four criteria for evaluating the success of the pilot program. The criteria were as follows: • Participation Rate - This criteria was to measure the number of eligible residents located in the area that agreed to participate in the program. The target rate was 70 to 100 percent of the diaper households in the area. Based on calculations made through census data, SCS Engineers estimated in a pre -pilot program feasibility study that approximately 5.4 percent of the City's population is in diapers, and considering some houses may have more than one diaper -aged child, staff believes that approximately 98 percent of eligible residents in the pilot area are participating in the program. The City has no way of verifying the actual number of diaper -aged children in the neighborhoods since census data does not provide information that is that specific towards children. • Setout Rate - This criteria was to evaluate that of the amount of diaper households that requested to participate in the program, how many households actually set out the diaper bins with collectable material on a weekly basis during the pilot. The target rate for the program was 70 to 100 percent. The average setout rate during the pilot program is approximately 74.2 percent. • Tonnage Collected - The criteria 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 the six-month period. For the first 22 weeks of the program, the City collected 23.77 tons of diapers, which is equivalent to 211.47 pounds per household. It does not appear as if the targeted tonnage will be achieved through the remainder of the program. • Tipping Fees - The criteria was to evaluate the operations and maintenance cost to recycle diapers at the processing location. The target amount for recycling diapers was $28.00 per ton. Staff currently does not have sufficient data available in order to determine the processing cost. Extrapolated Diversion Data Staff prepared preliminary calculations on the amount of diversion that can be expected through the program if it were rolled -out Citywide. The attached contains a summary of staffs calculations and how the final numbers were obtained. The following is a summary of the findings: Diversion Annual Amount of Diapers Amount of Diapers per Week Program Statistics Summary of Diversion Estimates Santa Clarita Knowaste 0.22% 0.41% 661.7 tons 1,260 tons 12.7 tons 24.2 tons As of April 8, 2003, the City has obtained the following statistical information: • The program has 233 participants. • The percentage of total households in the pilot area participating in the program is 5.26 percent. • The average number of households that set out bins per week is 166.81. • The average setout rate is 74.22 percent. • The total amount of diapers collected (from 22 weeks worth of data) is 23.77 tons. • The average amount of diapers collected per week is 2,160.45 pounds. • The total amount of diapers collected per household in the program is 211.47 pounds. • The total amount of recyclables that have been recycled (pounds from 4 weeks worth of data) was 2,190 pounds. • The percentage of materials that have been recycled is 4.61 percent. Program Status The Knowaste Diaper Processor II (KDPII) had several mechanical and technical problems throughout the pilot program. The most consistent problem that Knowaste has encountered is the pumps requiring repeated cleaning by hand since synthetic materials were getting tangled inside of them. This issue has already been resolved and the KDPII is operating as expected according to Knowaste officials. Until the beginning of March 2003, Knowaste was unable to market the fiber pulp derived from the recycling of diapers due to difficulties in finding a market because most paper commodities in Southern California are sent overseas to China. Since the fiber pulp was damp, the pulp would get mold on it and it would be undesirable to overseas recyclers. In March 2003, Knowaste found a local recycler who is accepting the fiber pulp free of charge and is currently mixing the fiber pulp with other paper commodities to make newsprint. As of April 8, 2003, a total of 2,190 pounds of fiber pulp has been recycled and diverted from landfills. To the best of staffs knowledge, the plastics derived from the diapers still have not been marketed or recycled, and have either been landfilled or stored for later recycling. Information Needed To date staff has not received the information from Knowaste required to determine the cost of recycling diapers. Consistent with the second part of the recommended action and consistent with a series of requests made in the past of Knowaste, staff has determined that it will need to know the following data to begin to evaluate how much it would cost to offer the program citywide: • The amount of water used during the pilot; • Sewage expenses for the program; • The amount of electricity used for the program; • Number of man hours actually used to run the machine; and • The cost of obtaining the several permits needed to operate the machine. In addition to cost -related information, staff also requires the following: • Information relating to how much fiber pulp has been recovered through the process (this includes the amount of fiber pulp that has been landfilled, not only the amount that has been successfully recycled); • The amount of plastics that have been recovered (landfilled and stored); and • How much overall has been landfilled. Summary of Recommended Action Staff recommends that Council approve an extension of the pilot for an additional three months on the condition that Knowaste cooperates with providing data needed to further evaluate the program, and to direct staff to return with item on a regular City Council meeting agenda at the end of the three-month period to provide program update. The benefits of this recommendation are as follows: 1. It will allow more time for the City to obtain substantial data on the program, especially since the fiber pulp just recently has been marketed and Knowaste has not yet marketed the plastics. 2. Participants that are currently in the program will be pleased to continue being a part of the program. 3. It will keep the City on the "Aggressive Recycling Map." 4. It will allow sufficient time for staff to receive quotes from the Residential RFP in order to determine the quoted cost for a diaper recycling program from the haulers. 5. It will still give the Council an opportunity to minimize costs and to instruct Knowaste to market the KDPII if it determines that a Citywide program is not feasible. Program Options The final collection day for the six-month pilot program was May 6, 2003. All parties have agreed to continue with the program for an additional week. Staff now requires direction from the Council as to if and how it would like the pilot program to continue. Staff will work with Waste Management, Knowaste, and BFI to implement the Council's decision. Attached is a summary of several options that are available to the Council, along with pros and cons to implementing the options. It should be noted that if Council chooses to not to continue the program, Knowaste would be required to market and find a purchaser of the KDPII for a minimum purchase price of $250,000 within one year of being instructed to do so. If Knowaste is unsuccessful in finding a buyer for the KDPII, Knowaste is required to reimburse the City $100,000 and Knowaste will assume ownership and responsibility for the KDPII. ALTERNATIVE ACTIONS 1. Council to approve an extension of the pilot for an additional three months pending Knowaste cooperation with providing data needed to further evaluate the program. 2. Council to direct staff to extend the program on a month -by -month basis. 3. Council to direct staff not to continue with the program and instruct Knowaste to market the KDPII in order to reimburse the City for the expenses that it has incurred. 4. Council to direct staff to put the program on hold until the implementation of the new residential franchise in April 2006. 5. Roll the program out Citywide. 6. 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). The City agreed to the startup and acquisition expenses on the condition that it would not require the use of any additional funds for the pilot program. At this time staff is not requesting any appropriation of funds from the program. ATTACHMENTS Extrapolated Diversion Data Diaper Recycling Program Options Extrapolated Diversion Data According to Assembly Bill 939 (AB 939), all jurisdictions must divert a minimum of 50% of the waste they generate by the year 2000. The California Integrated Waste Management Board (CIWMB) determines a city's compliance with AB 939. Since the CIWMB places a greater importance on reducing and reusing waste over recycling the materials, the CIWMB cannot determine a city's diversion simply by comparing how much a city recycles in comparison to how much is landfilled. Therefore, the CIWMB requires city's to establish a Base Year, where a City determines how much waste they generate (disposal + waste reduction + reuse + recycling) in a year through an exhaustive study. Then based on the Base Year, the CIWMB determines how much a City diverts every year by calculating how much more (or less) waste the City should be generating based on changes in population, economic growth, and construction and then comparing the estimated amount with the amount that was actually landfilled in the reporting year. Staff has prepared preliminary calculations on the amount of diversion that can be expected through the program if it were rolled -out citywide. In order to determine the extrapolated diversion data, staff used information obtained through the 2000 Base Year Study approved by the CIWMB to determine the City's waste generation numbers. It should be noted that 2001 and later years have a greater waste generation rate than 2000 since the City has grown. Therefore, the actual diversion from recycling diapers will be lower than the calculated amount noted below. City Estimates The City calculated the projected diversion based on CIWMB's definition of diversion using data obtained from the pilot areas and extrapolating it out for the entire City. The calculations used to determine the diversion amount are as follows: D=RAT x G) R=C x W C=A x F D = Diversion (0.22%) R = Total number of diapers recycled (assuming the entire diaper is recycled) T = Total number of pounds in a ton (2000) G = Waste generation number of City according to the 2000 Base Year Study (307,465.38 tons) C = Diapers collected per week if every residential unit of the City participated in the program W = Number of work weeks in a year (52 weeks for this calculation) A= Average amount of diapers collected per week during the pilot program (2,160.45 pounds) F = Conversion factor for converting the pilot program weekly average to a citywide weekly average. The factor is determined by finding the ratio of citywide residential units (52,442) to the number of residential units in the pilot area (4,450), which equals a conversion factor of 11.78. Based on the City's extrapolation, staff estimates that a total of 661.7 tons of diapers will be collected per year through a citywide program being offered to all residential units (not just single-family residential units). Staff obtained this amount by first determining how many diapers would be generated per week. This was determined by obtaining the average amount of diapers collected per week through the pilot program and extrapolating out how many diapers would be collected if the program were offered to every residential unit in the City. Once the projected weekly amount was obtained, staff then multiplied the number by the amount of workweeks in a year. Once staff extrapolated the annual amount of diapers that would be collected, using the 2000 -year generation number of 307,465.38 tons, staff estimated that the program would create 0.22% diversion. Knowaste Estimates Knowaste also calculated the projected number of diapers that will be collected through the program. The City used the following calculations to determine the proposed diversion based on Knowaste's numbers: D=K/G D = Estimate diversion based on Knowaste's numbers (0.41%) K = Knowaste's extrapolated annual diversion if the program was rolled out citywide (1,260 tons) G = Waste generation number of City according to the 2000 Base Year Study (307,465.38 tons) Knowaste's extrapolated annual diversion is based on its own calculations using the average annual number of births in Henry Mayo Newhall Memorial Hospital, data obtained from its Canadian operations, and the assumption that the average child wears diapers for two and a half years. Based on these assumptions, Knowaste estimated that a total of 1,260 tons of diapers would be collected per year through a citywide program. Knowaste's calculations assume that every diaper from every eligible generator/household in the City would be collected for recycling. Using the 2000 -year generation number combined with data provided by Knowaste, staff estimates that the program would create 0.41% diversion. JES:BAL S: \ FIELDSVCS \ ENVSRVCS \ SOLWAST2 \ COUNCIL \ 2003 \ Diaper Recycling Diversion Explanation.doc A O O O O W c O r T N N d c °N y N __ d ... E Y O �. O 0 y o 0 Y Q V Nca c a) C Y .9 0E ° o o y O c c y ">. f~�/1 -0 3 15 c a c Y 3 V LO oro E ro o e o 4 c -3:-3- o o N c° a° E Oc '�'2 `� 7 N m N 3 % m N °c N c o Y= o y ? 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O r O U Z LL N vi LL 0 L r \ / CD \ 0§ CL A 0 \\ a k5CL // ;w= w§ )\f\E §0(i�m] ) _\/\\](\j \0cCL 0 �ƒ0 0 }{/}\/ §//\f)))0=ff/§)fit 7e2 LL,]k«k4>t\/ 6w&G&«;w§4;`2700! jD \\ 0 \�\ \/ \- co 0 \}.\\ ; 00 0 CEKf» —{)- OL C )/(7f� 2J )}/ ■w�>t w)ZCi m)/ai ))� \ §,$ / / \c} /\\ / 0205 0 L6 CL o¥ƒ) \ / May -13-2003 08:38pm From - STAT[ CAPITOL SACRAMENTO. CA 95814.4900 1918) 448-0837 ANTELOPE JAUEY OPIICE 1008 W. AVENUE M-14 SUITE O PALMDALE. CA 92551 ,881) 2740188 SANTA OL AMTA VALLEY OFFICE 25709 RYE CANYON ROAD SUITE 104 SANTA CLARITA. CA 91358 too i 1204-8 184 (galifornin Afide Arnate SENATOR WM, J. "PETE" KNIGHT SEVENTEENTH SENATORIAL DISTRICT May 13, 2003 The Honorable Cameron Smyth Mayor, City of Santa Clarita 23920 Valencia Bot S Santa Clarita, C Dear Ca T-711 P.002/003 F-129 INO,AN WEL1 VALLEY OFFICE 1268 CALIFORNIA AVENUE SUITE A MAILING ADDRESS P.G. box 13" RIDGECAEST. CA 933s6 (760) 271.1840 VICTOR VALLEY OFFICE 15278 MAIN STREET SUITS D HESPERIA, CA 9234E (760) 244•ZAOZ WEBSITE: WW W.SEN.CA.GOW KNIGHT I am writing to urge you to oppose extending the Santa Clarita diaper recycling pilot program for any length of time (May 13, 2003 City Council Agenda Item 18). As you well know, I rarely interject myself into local matters where the decision rests with local leaders. However, for several reasons, Including efforts at the state level to Impose a "tax" on diapers based on this project, the continuation of this program has become an Issue of statewide concern. I was certainly surprised to read that the recommendation by city staff was to extend the program for another three months, especially after reviewing the Memorandum of Understanding (MOU) between the City of Santa Clarita and Knowaste and the project results outlined In the city staff report. Under the MOU's Pilot Evaluation criteria, the project met the target rates for sufficient number of participating households (98%) and enough of these homes setout their diaper bins for collection each week (74%). But the data also shows that even with these participation and setout rates, the program failed to collect the target amount of diapers per household; at an unknown, yet likely significant cost to recycle; and failed to adequately dispose of the recyclable and waste by-products. Even if you assume the goal of this program was to recycle diapers no matter what the cost, the project has failed. Only a portion of the recycled material under this project has found a user of the fiber pulp produced by the Knowaste machine. The remaining recycled material is either sitting in a pile somewhere or will eventually have to be shipped to a landfill. It Is quite clear that the project has failed to achieve any real measurable recycling results. May -13-2003 05:33pm From - The Honorable Cameron Smyth May 13, 2003 Page 2 T -T11 P.003/003 F-129 Finally, the staff recommendation Is to approve a three-month extension "on the condition that Knowaste cooperates with providing the data needed to further evaluate the program." i find it odd that Knowaste cannot provide the City with the necessary data to evaluate the project most especially on the additional costs associated with this program. Under the MOU, Knowaste is responsible for all installation and startup costs beyond the $500,000 from the City and State, as well as any unfunded processing costs. I see no reason why Knowaste cannot provide the City with the costs of this program prior to the vote by the City Council. The facts do not support the extension of this "pilot" project beyond the initial six-month period. Any extension of this program will only further fuel the efforts by Knowaste and other sponsors of the diaper tax to burden young, working families and older adults on fixed Incomes with the costs of a failed program. The City should recognize that the technology to recycle diapers Is not ready for implementation on a large scale and end this "pilot" project. I again urge you to oppose the extension of the diaper -recycling program. Please do not hesitate to contact me If you have any comments or questions on this letter. Sincerely, v WM. J. "PETE" KNIGHT Senator, 17"' District WJK:cb cc: Santa Clarita City Council Members Senator Tom McClintock Assemblyman Keith Richman