HomeMy WebLinkAboutAllied Waste Presentation 06-18-18Recycling is Broken
The need for change…
Annual Request for Price Increase
Update on Cart Audit
Area Price Comparison
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•China Sword
−Explained
−Impact
•Requested Price Increase
•Additional Recycle Cart Request
•Area Price Comparison
Today’s Agenda
Replacing a fundamentally broken business model with a
durable and transparent partnership
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China Sword
Reductions took effect in March 2018, and drive costs and changes at most
recycling facilities in the country to meet new standards
•A significant reduction in acceptable
contamination levels (From ~3% to
0.5%) in any recovered paper and
plastic grades.
•Additionally, China banned all mixed
paper from import, regardless of
contamination levels.(20% of
historical stream).
For decades, China has been the largest importer of the world’s recycled
commodity, and the U.S. was 40% of the inbound stream.
In 2017, China announced efforts to clean up the country, which included
dramatic changes for acceptance criteria of imported recyclables.
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Market Impacts of China Sword
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China Sword Immediate Impacts
While we continue to process mixed paper and old newsprint, we are
proactively evaluating the need to dispose of excess material that
deteriorates beyond the point of commercial value, or poses safety risks
•Actively exploring other domestic and international markets
−Many are flooded by the global industry shifting away from China
Jan 2018 –Processed bales in Northwest,
without market buyers, deteriorated by weather
•Adjusted processing speeds to
improve quality of sorted material
−As a result, some facilities are unable
to handle daily material volume
•Adding human resources to our sort
lines, and increasing self-inspections
to further reduce contamination
•Exploring investments in newer, more
accurate sorting technology (in select
markets)
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Long Term -Public Education
1.Public Education –WHAT to Recycle
Paper Plastic
CardboardMetal
Glass
ALWAYS
Recyclable
NEVER Recyclable
Diapers Garden
Hoses
Plastic Bags
Shoes/
Clothing
Food
Waste Yard
Waste
Empty. Remove any remaining food or liquid contents from your
recyclable item before placing it in a recycling container;
Clean. Lightly rinse the recyclable item to remove any remaining
residue; and
Dry. Gently shake out excess water or let the recyclable item air dry
before placing it in a recycling container.
SOMETIMES
Recyclable
(Select Markets)
2.Public Education –HOW to Recycle
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Long Term -Reassessment of Accepted
Materials
Recycling programs must focus on Sustainable Materials Management, not
simply diverting material that may have no beneficial use
•Municipalities need to shift program focus to Sustainable
Materials Management-based views, which looks at the overall
benefits of each accepted material in the stream.
Some packages have evolved to
less marketable materials
•Programs have drifted to focus on
total diversion rates, rather than
what materials are truly beneficial to
recycle
•Some collected materials are
recyclable, but lack local end
markets, or have a negative recycling
value. These realities render the
processed materials unmarketable
($10)
Glass has a negative value to recycle
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Collection
•Cost to provide truck,
driver, container and
scheduled collection
service on contracted
basis
•Collected material
transported to
processing facility
Processing
•Capital & labor
intensive process
•Comingled material
sorted into separate
products, removing
contamination
•Clean products baled
and prepared to ship
Residual
•Contaminated or non-
recyclable material
•No marketability
•Must be transported
and disposed at
landfill for a cost
Commodity
Sales
•Processed material
transported and sold
to end markets
•Subject to quality
standards
•Product mix and
quality drives value
•Some material may
have negative value
The Cost of Recycling
New Recycling Business Model
Monthly Collection
Charge
Net Processing Fee
(Commodity sales –processing costs –residual cost)
The cost of a recycling collection program is the sum of the
Collection Charge and the Net Processing Fee
+
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CHINA SWORD IMPACT
1.The decades old recycling model is no longer
executable or viable.
2.Recycling costs are increasing.
3.Immediate partnering is needed, as well as a new
business model.
4.Implement Public Education Outreach with
Communications Dept. to inform residents what to
recycle and how to recycle –clean up the
contamination in the stream.
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Contract Status and
Price Increase History
•Current 5 year contract extension approved by
Ordinance 756 in December 2015; Expires December
2020.
•Contract allows for a 3% increase each year beginning
January 1, 2018 (subject to Council Approval)
−Last increase at contract renewal January 1, 2016
Solid waste and Recycling Rates
Solid Waste Recycling Total % Increase
2001 $7.00 $1.75 $8.75
2008 $8.00 $2.75 $10.75 23%
2016 $8.40 $2.89 $11.29 5%
2018 $8.65 $3.89 $12.54 11%
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$11.29
$12.54 $11.76 $12.63 $11.86
$13.87
$12.00
$14.53
$12.51
$14.94
$11.91
$18.92
$25.77
$27.00
$13.30
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Westlake
Current
Westlake
Proposed
Bedford Colleyville Euless Grapevine Hurst Argyle Roanoke Trophy
Club
Keller Highland
Park
University
Park
Westlake
Hills
Southlake
0%
2%
4%
6%
8%
10%
12%
14%
Solid Waste and Recycling
Rate Comparison
Trash Recycle Franchise Fee
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Price Increase Drivers
Solid Waste
•Disposal
•Carts
•Trucks
•Steel for Containers
•Fuel (sometimes)
Recycling
•Cart Audit reflects 398 additional recycle carts.
•Shortfall due to collection costs no longer covered by
commodity revenues-need $1.00 increase to recycle rate.
•Cart costs increase annually
Westlake Residential
Solid Waste and Recycling
467.54
408.28
513.42
468.68
212.25 198.7
285.7 277.91
0
100
200
300
400
500
600
2014 2015 2016 2017
Resi Trash Resi Recycle
T
o
n
n
a
g
e
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