agenda_packet_2013_10_29 Costa Mesa Sanitary District
…an Independent Special District
Protecting our community’s health and the environment by providing solid waste and sewer collection services.
www.cmsdca.gov
Memorandum
To: Board of Directors
From: Scott Carroll, General Manager
Date: October 29, 2013
Subject: CR&R’s Anaerobic Digestive Facility – Organics Recycling Program
Summary
On October 1, 2013, staff presented a new program to the Board of Directors where green
waste and food scraps can be diverted from the landfill and recycled into clean renewable
energy. The waste, otherwise known as organics, would be delivered to CR&R’s
anaerobic digestive facility in the City of Perris, which is scheduled to be operational in the
fall 2014.
The new program will ensure the District is achieving 75% landfill diversion and help meet
California’s ambitious goal of recycling, composting and source reducing the State’s waste
stream by 75% by the year 2020. The State wants to reduce disposal at landfills by 43
million tons. CalRecycle, the agency responsible for managing the state’s recycling and
waste management programs, is required to provide a report to the Legislature in January
2014 that will provide strategies to achieving the policy goal. The strategies that will be
discussed will very likely change the trash industry in California and how people dispose of
their trash. One of the strategies CalRecycle is considering is repealing green waste as
alternative daily cover (ADC) at landfills, which is currently used as diversion. Another
strategy is requiring organics to be source separated for collection and then prohibit the
landfilling of source separated organics.
At the October 1st meeting, the Board of Directors directed staff to report back with
additional information about the proposed Organics Recycling Program.
Board of Directors
October 29, 2013
Page 2 of 7
Staff Recommendation
That the Board of Directors considers one of the following:
1. Approve implementing a District wide organics recycling program that includes
CR&R’s anaerobic digestive facility and direct staff to report back with an
amendment to CR&R’s exclusive franchise agreement; or
2. Direct staff to implement a pilot Organics Recycling Program that includes CR&R’s
AD facility and select a District neighborhood for said pilot program.
3. Remain status quo.
Analysis
How will the Organics Recycling Program work?
Depending on the size of cart residents currently have (32, 64 or 90 gallons), an organic
cart of the same size will be delivered by CR&R. The new automated carts will have a
green lid to clearly identify the cart is designated for organics. CR&R will have available at
the meeting a sample lid.
Residents will be able to keep their existing two trash carts and organic cart for six months
at no additional cost, which means they will have three carts. Residents will be required to
throw away trash and recyclable items (e.g. glass, plastic, paper, cardboard, tin cans, etc.)
in their existing trash carts while green waste (e.g. grass, tree branches, leaves,
vegetation) and food scraps (e.g. fruits, vegetables, meat, poultry, seafood, etc.) will be
thrown away in their new organic cart.
The new program is requesting a change in people’s behavior to throwing away their
trash, so staff believes six months is adequate time for residents to adjust and become
comfortable to the new program requirements. Post cards will be mailed to residents
reminding them that the six month trial period is nearing the end. The card will also
remind residents at six months they can request their second trash cart to be picked up at
no additional cost; however, if they decide to keep the second trash cart then a monthly
charge of $8.00 will be applied. If residents that have 32 or 64 gallon carts believe one
trash cart is not enough to meet their disposal needs, they can request to upsize their cart
at no additional costs, but the program will remain a two cart system.
There may be households that do not produce large volumes of green waste and/or food
scraps. These households will be encouraged to call CR&R where they will have several
options to consider. These options are identified below.
Board of Directors
October 29, 2013
Page 3 of 7
1. Household that generates no green waste:
Option: A. Replace 64 or 90 gallon organic cart with a 35 gallon Food Scrap Cart
at no additional cost. 64 gallon trash cart can be upgraded to 90
gallons at no additional cost.
Option: B. Opt out of Organics Program and keep both existing trash carts
2. Household that generates neither Food Scraps or Green Waste:
Option: A. Opt out the Organics Recycling Program and keep both existing trash
carts
CR&R and District staff will need to review and verify any changes to the Organics
Recycling Program.
It’s too much trouble to bring plates of food waste to the automated cart after each meal so
to make it easier to store and compile food waste, kitchen pails, like the one shown in
Attachment “B” will be made available to residents. The pails will be available on as
needed basis where residents can pick one up free of charge at CMSD HQ.
The organic waste cart will be placed out in the curb, along with the trash/recycling cart, on
regular trash collection day. A separate automated side loader trash truck will arrive to
pick the organic waste while another truck will arrive to pick up the trash/recycling cart.
This means that two trash trucks will be on the route instead of the traditional one truck.
Both trucks will be powered by compressed natural gas (CNG), a clean burning fuel that
emits less pollutant in the atmosphere than diesel fuel.
The organic waste truck will arrive at CR&R’s transfer station in the City of Stanton where
it will unload the organic waste. The waste will then be loaded into semi-truck trailers and
transported to CR&R’s anaerobic digestive (AD) facility in the City of Perris where the
organics will be converted into renewable clean gas (RNG). CR&R will use RNG to power
its fleet. Any residuals at the transfer station or at the AD will be disposed of at an Orange
County landfill.
Materials from the trash/recyclable cart will continue to be delivered to CR&R’s Material
Recovery Facility (MRF) in the City of Stanton where the recyclable will be separated,
bailed and shipped to various markets and the trash will be transported to an Orange
County landfill.
In addition, staff researched organics recycling programs from several organizations to
learn about the challenges they faced and how the program was accepted in their
community. Please see the results of staff’s discussion with these organizations along with
a story about the City of Portland’s successful program (Attachment “A”).
Board of Directors
October 29, 2013
Page 4 of 7
What are the costs for implementing this program?
Staff estimates it will cost the District an additional $487,416 a year to implement the
Organic Recycling Program. This cost includes new automated containers and the
disposal fee for the AD, which is $71.50 per ton. See breakdown of cost in Attachment
“C”. In addition, the cost for the kitchen pails will be $8,000 to purchase 1,000 pails.
How will the community be made aware of the new program?
The following is a proposed community awareness plan for the proposed Organics
Recycling Program. The cost for the proposed plan will be minimal (e.g. copying flyers
and billing inserts).
CR&R conducts several workshops throughout the community (e.g. East side, West
side, Mesa Verde, College Park, Mesa North.)
Describe the new program in CMSD’s newsletter at least twice a year.
Flyers about the program available at several public facilities such as City Hall,
libraries, community centers.
Possible TV coverage from local news stations (e.g. KTLA Morning News with
Gayle Anderson)
KOCI 101.5 FM radio station
Mesa Water invoice inserts.
CMSD’s booth at Concerts in the Park and Fish Fry
Will the program create odors?
No. After consulting with the three organizations identified in Attachment “A”, staff learned
that none of the agencies received odor complaints after implementing their organic
recycling program. Odors will be no different than the current CMSD method for collecting
solid waste.
Can the District utilize the AD facility with the existing mixed waste collection method?
No. trash waste (e.g. pet waste, broken glass, vacuum debris, soiled or chemically treated
paper, etc.) will contaminate organics and make it undesirable for the AD facility.
What other methods or programs are available to recycle green and food waste?
Composting is another method to consider, but the facility has to be permitted as a food
composter. The four organizations identified in Attachment “A” take their organics to a
food composting facility. CR&R has such a green waste composting facility in the City of
Board of Directors
October 29, 2013
Page 5 of 7
San Juan Capistrano that cannot accept food scraps. There is no food composting
facilities in operations in Orange County.
Can the District implement a pilot Organics Recycling Program?
Yes. A pilot program for the East Side or Mesa Verde, as an example, is possible and it
will give staff and CR&R an opportunity to evaluate the program. However, this option is
not favorable by CR&R. They prefer implementing the program District wide.
Can the District implement the program on a voluntarily basis?
No. A volunteer program would be economically unfeasible for CR&R and the District
would not be able to achieve the 75% diversion goal.
Will the Organics Recycling Program violate the Waste Disposal Agreement between
CMSD and the County of Orange?
No. On June 23, 2009, the District entered into an agreement with OC Waste & Recycling
(County), as did all Orange County cities and special sanitary districts, for disposing solid
waste at County owned landfills. The 2009 agreement was an extension of the original
waste disposal agreement that was approved in 1997.
The purpose of the waste disposal agreement is to ensure that solid waste generated in
Orange County stays in Orange County. The County did not want cities entering
agreements with other counties or out of county transfer stations because that would
mean less revenues to Orange County.
Article III, Section 3.1(B) of the Waste Disposal Agreement states the following:
“(B) Recycled City Acceptable Waste. The parties hereto acknowledge the
responsibility of the City to meet the recycling and landfill diversion goals contained in the
Act. Nothing in this Agreement is intended or shall be interpreted to prohibit or impair the
ability of the City to meet such responsibilities, or to restrict the right of the residents,
businesses, or organizations in the City to practice source separation, recycling,
composting or other material recovery activities or to restrict the right of the City to
conduct, sponsor, encourage or require such activities in any form. No reduction in the
amount of Controllable Waste generated in the City and delivered to the Disposal System
by or on behalf of the City which may result from any such source separation or recycling
program shall cause the City any liability hereunder (other than potential adjustment to the
Contract Rate to the extent provided in Article IV hereof) and shall not constitute a breach
of this Agreement.”
Board of Directors
October 29, 2013
Page 6 of 7
Staff believes the section cited above gives the District authority to implement an organics
recycling program and will not be held in breach of the agreement. A copy of the Waste
Disposal Agreement can be found on the District’s website in the “Solid Waste” page at
www.cmsdca.gov.
Strategic Plan Element & Goal
This item complies with Strategic Element 2.0., Solid Waste and Strategic Goal No. 2.4,
Develop strategies for Zero Waste.
Legal Review
Not at this time; however, District Counsel will review and approve the amendment to
CR&R’s exclusive franchise agreement if the Board authorizes staff to proceed with the
proposed organics recycling program.
Environmental Review
The District has determined that this matter does not have a significant effect on the
environment and is categorically exempt as per Section 15308 of CEQA Guidelines, which
states, “Action by Regulatory Agencies for Protection of the Environment.”
Financial Review
The cost to implement a District wide organics recycling program is $487,416 a year,
which includes AD disposal costs and the cost to purchase additional organic carts.
The cost to purchase kitchen pails ranges is $8,000.
The cost for the community outreach plan will be minimal. For instance, costs associated
to workshops will be incurred by CR&R. The District has already budgeted funds for the
quarterly newsletter and printing several flyers for dissemination at public facilities will cost
less than $100. In addition, there is no cost to the District for radio and television
coverage and the Board has already approved staffing booths at Concerts in the Park and
the Fish Fry. Inserts in Mesa Water invoices is a very effective tool to send messages out
to the community. It will cost the District approximately $2,000 to place an advertising
insert in two Mesa Water billing cycles.
The cost to implement a pilot Organics Recycling Program will cost less than a District
wide program, but the projected cost is unknown until staff receives further direction from
the Board.
Board of Directors
October 29, 2013
Page 7 of 7
The additional cost can be absorbed using Solid Waste Fund Balance, which is
approximately $4 million, but eventually the District will have to raise rates to
accommodate the cost increase for implementing an Organics Recycling Program. The
Board directed staff to prepare a rate analysis that includes using the fund balance along
with small rate increases over a long period of time (e.g. several years) instead of one
significant rate increase after the fund balance has been depleted. Attachment D is a copy
of the analysis.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the
October 29, 2013 Board of Directors special meeting at District headquarters and on
District’s website.
Alternative Actions
1. Direct staff to report back with more information.
Attachment A
Questions:
Are the pails available to
residents on a first come first
serve basis?
How much do the pails costs
and what is the name of the
manufacturer?
Do they line the pails
w/biodegradeable bags to
control odors?
Is the city facing any
challenges w/their food scraps
program?
Do they have a separate
automated container for food
scraps?
How is the program accepted
in the community?
The city did not anticipate the amount of weight the
containers would create. Therefore, they
eliminated the 96 gal and for residents who
accumulate more trash, receive (2) 64 gal
containers.
No automated container for food scraps.
The program is widely accepted, it is free and good
for the environment.
City of Santa Monica
There is no limit.
They cost $9.00/per pail. The rep was not sure
where they were manufactured.
No.
Participation has been somewhat difficult and slow.
They are collected in the green waste containers, so
it gets mixed in with yard waste.
It has been a mixed review, some residents are
extremely receptive whereas other residents are
extremely against the program.
City of Berkeley
They are available as ordered and complimentary
per order.
They cost $7.00/per pail, which were purchased
through a Canada based company called Orbiz.
No odor control.
Many have odor concerns, however seem interested to participate. Mid 40s
participation, but wasn't as bad other food programs in the bay area. Low 30s-weekly
participation. Measured once a year, and assessed once a year.
Central Contra Costa Solid Waste Authority
First come, first serve.
They are free for residents and cost $8.00/per pail.
Placing food scraps in the green cart is no different than placing food scraps in the
garbage cart. It should not create a bad odor. In fact, placing food scraps in with yard
waste will help reduce potential odors. They advise not to use biodegradable or plastic
bags in the program. Film plastic is very hard to remove from compost and reduces the
marketability of the finished compost. The facility operator has no way to distinguish
between non-biodegradable and biodegradable bags when mixed with yard waste, they
have prohibited use of biodegradable plastic bags. If and when biodegradable plastic
bags become more easily distinguishable from regular plastic, then they may be
accepted in the program.
Discarding food separately. Also, preventing residents from inserting food scraps into the
disposal. Another issue was the implementation date, they had implemented it in
summer and the heat had caused the scraps to become aromatic and attract flies. Some
residents have also asked if a green cart container yard and food waste will exhaust
methane gas or other dangerous gases. This will not happen in a yard waste cart
containing food waste for a short period of time.
No, it is collected in the green waste containers, which are mixed with yard waste.
Attachment B
Attachment C
Annual Cost - Status Quo Rate Household Monthly Annual Cost
Hauler:8.9054 21,500 191,466.10 12 2,297,593.20
Rate Tonnage
CRT:51.97 40,000 2,078,800.00
Total Cost:4,376,393.20
Annual Cost - Organic Recycling Rate Household Monthly Annual Cost
Hauler:9.7954 21,500 210,601.10 12 2,527,213.20
Rate Tonnage
CRT:51.97 26,800 1,392,796.00
AD:71.50 13,200 943,800.00
Total Cost:4,863,809.20
Estimated additional annual cost:487,416.00
Quantity Cost per pail Total Cost
Kitchen Pails 1,000 8.00 8,000.00
Attachment D
CR&R Contract
Expires
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2021-22 2022-23 2023-24
Expenses 5,306,894 5,615,535 5,809,265 5,809,625 5,939,973 6,073,623 6,073,623 6,210,280 6,210,280 6,350,011
Annual Charge 4,644,000 4,644,000 4,837,500 4,837,500 4,979,400 4,979,400 5,095,500 5,095,500 5,673,420 5,918,520
Additional
Container
Charge
100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Property Tax 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Investment 54,000 54,000 53,000 50,000 46,000 40,000 33,000 25,000 15,000 3,500
Contributions 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Other 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
Total Revenue:5,098,000 5,098,000 5,290,500 5,287,500 5,425,400 5,419,400 5,528,500 5,520,500 6,088,420 6,322,020
Net:(208,894) (517,535) (518,765) (522,125) (514,573) (654,223) (545,123) (689,780) (121,860) (27,991)
Fund Balance 4,150,594 3,981,117 3,498,218 3,009,247 2,511,994 2,017,395 1,376,803 839,997 151,719 30,158
Net Balance 3,941,700 3,463,582 2,979,453 2,487,122 1,997,421 1,363,172 831,680 150,217 29,859 2,167
Occupancy 21,500 21,500
Rate:18.00 18.00 18.75 18.75 19.30 19.30 19.75 19.75 21.99 22.94
8.9054 Hauler Rate (9.1554 - 0.25 = 8.9054) from Nov 2013 through Oct 2014
9.7954 Hauler Rate (8.9054 + 0.89 = 9.7954) effective Nov 2014
51.97 CRT Disposal
Rate (52.22 - 0.25 = 51.97)
71.50 AD Disposal Rate
67% of CRT disposal tonnage @ $51.97 a ton
33% of AD disposal tonnage @ $71.50 a ton
Evergreen