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HomeMy WebLinkAboutAgenda Packet - October 7, 1991 - CC Ytr 1 City Administrator effiliglig 0 OF AZUSA 8)334- 25 Aka✓ AGENDA ITEM MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL FROM: GINNY DADAIAN, ADMINISTRATIVE ANALYST COPsoCt) VIA: CITY ADMINISTRATOR j DATE: OCTOBER 7, 1991 jam/ SUBJECT: CURBSIDE RECYCLING BACKGROUND In November of 1989, the California State legislature passed a comprehensive integrated waste management bill (AB939) which requires ongoing planning and studies by cities statewide. It also requires a diversion from landfills of 25% of solid wastes generated by 1995, with a 50% goal by the year 2000. (The City of Azusa's AB939 plan will be reviewed in November) . To reach these goals a comprehensive curbside recycling program needs to be implemented. This law was passed because of the solid waste crisis in this Country . The limiting of permitted landfills and the acceleration of solid waste has brought the State to this point. To maximize the use of our remaining disposal capacity is a crucial matter which is affecting all Cities and Counties in the United States. The recycling of solid wastes through source separation offers the best solution for diverting significant amounts of waste from a landfill disposal. It is important, however, to recognize that recycling, by itself, cannot dispose of the City' s entire waste stream. Recycling does and will not eliminate the need for other disposal technologies and programs. FINDINGS Attached for your review is a proposal for curbside recycling for single family dwellings from Western Disposal, the City' s waste hauler . The proposal outlines the start up day, type of collection and the fees to be increased by Azusa residents. Mr. Hartunian, owner of Western Disposal, will be present to answer any questions regarding the prog am. 'L �� `-s / AL Ea /o/07 j/ r0 213 East Foothill Blvd., P.O. Box 1395, Azusa, California 91702-1395 .:� ' a'` �, Page 2 Curbside Recycling Though this proposal is for single-family dwellings, multi-family dwelling recycling is also being considered as well. Research is being done by Western Disposal and staff on what type of recycling collection is best suited for multiple family dwellings. Unfortunately, a curbside recycling program is not a inexpensive operation. The revenue derived from the sale of recyclable material does not fully cover the cost of collection. This is due to unstable markets in the industry. A recycling fee of $1. 15 per household is being asked by Western Disposal. In comparison to neighboring cities recycling fees this fee is competitive. It should be noted as well that cities such as La Verne have lowered their recycling fees as the program became more successful . The higher the participation rates the more revenue received for recyclables. Attached for your information is a rate survey of neighboring cities refuse rates and the fees for recycling. As stated, participation is of utter importance and the sale of the recyclable materials is significant to the cost of the program. To guarantee that there will be materials in the bins at the point of pick-up by the hauler, an anti-scavenging ordinance will be on the next Council agenda. In surveying neighboring cities staff members all had the same conclusion that educating the public on recycling is essential. To educate the citizens of Azusa on the curbside recycling program, staff will be dedicating one whole newsletter on the program and the environment . Also staff plans to go to elementary schools to further spread the word on recycling. A slogan and logo contest will also be held for children ages 5-18. Civic groups can also call upon City staff to speak at various meetings and functions on the importance of recycling. Because of the education that is needed before a program is actually implemented, a start up day of Monday, January 6, 1992 is proposed. This date will give time for distribution of the bins, adjusting the new fee on the utility bills, and time to educate the citizens on the recycling program. CONCLUSION Many benefits can be derived from an effective recycling program. It is important that a strong "recycling ethic" be developed and supported by the City Council, staff, and the citizens of Azusa. The success of a recycling program is up to each individual household. Though the recycling fee is mandatory, participation is not. It is hoped though that by 1995 recycling will be a fact of life in Azusa. RECOMMENDATION Staff recommends that the City Council direct staff to prepare contract amendments incorporating the curbside recycling fee. GD/ta WESTERN 21.112.044.1A- 1017 W.GLADSTONE ST., AZUSA,CA 91702 (818)969-7908 • 334-5526 • 334-1128 INTRODUCTION Azusa Waste Recyclers, Inc. welcomes the opportunity to provide the City of Azusa a comprehensive recycling collection program. We feel that our extensive background in recycling will enable us to establish a cost effective program that is tailored to the particular needs of the Azusa Community. We have been serving the waste and recycling needs of surrounding communities for over 39 years. Recycling and waste collection has been our primary business. In the 1950 ' s our economy was set up to direct many of our current wastes to be recycled. Old clothing was an item that was even worth recycling. Unfortunately, many markets disappeared and we became a throw- away society. In those slow years we continued to recycle newspapers, cardboard, glass, aluminum, scrap metals, etc. . . Today, new markets are being formed for many additional throw- away items. With public support and governmental legislation we can continue to improve products and markets for the future. Thus recycling is becoming a major part of our business again. !, Several thousands of tons of recyclable materials are collected and marketed annually by Azusa Recyclers. We must have protection from scavengers who prowl the streets and create problems by spilling trash in parkways, interfering with the progress of the recycling program. Our goal is to implement recycling throughout our service area, in order to conserve natural resources, energy, and future landfill space. We realize that this will require hard work and dedication from all involved, including the community, City of Azusa, staff, and Azusa Waste. "SERVING THE SAN GABRIEL VALLEY" WESTERN Did.posat ea.„ 1017 W.GLADSTONE ST., AZUSA,CA 91702 (818)969-7908 • 334-5526 • 334-1128 PROGRAM DESCRIPTION 1 . CURBSIDE RECYCLING Curbside recycling would be implemented by January 6, 1992 at single-family residences. Each residence would receive 2 containers for the commingled collection of recyclables. The recyclables that will be collected will include newspapers, glass, aluminum, tin cans, and plastic bottles. All items with exception of newspaper would be placed in the collection container that is provided. Newspapers would be tied and set in the containers provided. Collection would take place weekly on the same day as garbage collection. The truck used to collect the recyclables will be a compart- mentalized recycling truck, made specifically for this purpose. NET COST OF PROGRAM As with other municipal recycling programs, there are revenues generated and costs for collection and processing. Revenues usually are not adequate to cover the cost of opera- tions, so there is a net cost for providing the recycling programs. In our financial evaluation, we have carefully assessed our capital requirements as well as collections and processing expenses. In projecting revenue, we have considered both current and future markets conditions . "SERVING THE SAN GABRIEL VALLEY" AZUSA WASTE RECYCLERS, INC. FORECASTED FINANCIAL DATA AND COMPUTATION OF BREAKEVEN FORECASTED MONTHLY OPERATING DATA Revenue From Sale of Recyclable Material - Paper and Cardboard - 50 tons $ 1, 000 - Aluminum Cans - 1/2 ton @ $.80/ton 800 - Cullet - 30 tons @ $40/ton 1,200 - Plastic - 1 ton @ $. 05/lb. 100 - Miscellaneous Scrap 200 Total Forecasted Revenue $ 3 ,300 Expenses - Labor $ 6, 000 - Vehicle Expense 1,800 - Insurance and License 1,200 - Administration 1, 000 Total Forecasted Expense 10, 000 Forecasted Monthly Shortfall ($ 6,700) COMPUTATION OF "BREAKEVEN" CHARGE TO RESIDENTS Forecasted Monthly Operating Shortfall $ 6,700 Number of Residents to be Served 5,424 Monthly Charge to Residents to "Breakeven" $ 6, 500 / 5,424 = $ 1.2353 Proposed Monthly Charge to Residents $ 1. 15 wEsTERN Di .., 1017 W.GLADSTONE ST., AZUSA,CA 91702 (818)969-7908 • 334-5526 • 334-1128 FORECASTED CAPITAL EXPENDITURES Trucks-Recycler Two at $60,000.00 $120, 000.00 Container for curbside pickup 46,000. 00 Pickup Truck Support Vehicle 10, 000 . 00 Total Forecasted $176,000.00 5% Contingency 9, 000.00 Capital Expenditures $185,000 .00 FORECASTED MONTHLY OPERATING BUDGET Revenue: Fees charged to Residents 5424 units at $1 . 15 $6,237.60 Paper- 50 tons at $20.00 1 , 000 .00 Aluminum cans- 2 ton at $.80 800 .00 Cullet- 30 tons at $40.00 per ton 1 ,200 .00 Plastic- 1 ton at 5(V per lb. 100.00 Misc. scrap 200.00 Total Revenue $9, 538.00 EXPENSES Labor $6,000 .00 Vehicle Expense 1 ,800 .00 Insurance and License 1 ,200.00 Administration 1 ,000 .00 Total Expense $10,000 .00 "SERVING THE SAN GABRIEL VALLEY" WESTERN 9)141204at eastCAW 1017 W.GLADSTONE ST., AZUSA,CA 91702 (818)969-7908 • 334-5526 • 334-1128 FORECASTED MONTHLY LOANS FROM OPERATIONS There is no provision for the "opportunity cost" of not otherwise investing the $185,000 .00 in cash or other investments. There is no expense shown for depreciation which, while an expense for income tax purposes, does not require a monthly cash expenditure. There is no charge for rent. The company will use the existing facilities of Western Disposal Co. , Inc. There will be no need for any other initial capital expenditures than the $185,000.00 . Other ancillary equipment, supplies and materials will be made available by Western Disposal Inc. The present forecasted monthly loss from operations is not designed to be "altruistic" . Rather, it is based on the fact that the prices of most of the material to be recycled are depressed right now and are expected to rebound. Also, as a result of the Activities of Azusa Waste Recyclers, Inc. Western Disposal will experience some operating efficien- cies which will enhance that company' s operating profits. We would however expect the support of the City Administration in the area of promotion and public education. The nature of this support would involve media relations and more importantly, the coordination of local organizations and volunteer groups to assist us in promotional efforts. We would like a review after 6 months to reevaluate our progress. Sincerely, B. Hartunian "SERVING THE SAN GABRIEL VALLEY" REFUSE DISPOSAL RATE SCHEDULE OCTOBER 1991 RESIDENTIAL AZUSA ARCADIA DUARTE GLENDORA MONROVIA SAN DIMAS LA VERNE $ 9.27 9. 63 10. 01 10.90 10. 13 60 Gallon $ 8.86 7.88 90 Gallon $ 9. 54 Recycling Yes Yes 1. 20 Yes .49 .37 Program Rate Increase Ant. Minimum 10% e