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4c - A Garcia RecyclingProtecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum T o: Board of Directors Via : Scott Carroll , General Manager From: Javier Ochiqui, Management Analyst Date: October 15 , 2013 Subject: Garcia Recycling’s Closure and I ts Impacts to CMSD’s T onnage Summary O n February 2, 2011 , t he Costa Mesa City Council voted 4 -1 to deny a request by Garcia Recycling for a nine -month extension to stay open while it obtained approval to build a permanent f acility at another location . Garcia Recycling ’s request was denied and closed its door s on February 14, 2011 . As per Board direction, s taff is providing an analysis on Garcia Recycling’s c losure and its impacts to the Costa Mesa Sanitary District (CMSD ), and Orange Coast College Recycling Center (OCC Recycling Center ) tonnages. Staff Recommendation That the Board of Directors receive and file the report. Analysis Garcia Recycling was located at 759 W. 19 th St. in Costa Mesa. At the time, it was the largest recycling center (in terms of recycling volume) in the City of Costa Mesa. However, the recycling center was blamed for attracting large crowds of people to the area . Below is a picture of where the Garcia Recycling was located: Board of Directors October 15 , 201 3 Page 2 of 5 Seve ral Costa Mesa residents complained about the odor and mess left behind and argued that its customers were taking up parking space s from businesses next door. T he issue was presented to the City’s Planning Commission in 2010 . The Planning Commission stated that Garcia Recycling ’s permits were for one address and customers were parking next door at Smart & Final (at another address ). T herefore, Garcia Recycling was found to be in violation of their permit requirements . The City Council upheld that finding. The OC Register , a local newspaper, stated that Garcia Recycling was taking in 4.2 million pounds of recycling material per year. Staff contacted the Department of Resources Recyc ling and Recovery (Cal Recycle) and asked them to provide us with a br eakdown of their volume reports. The report from Cal Recycle indeed confirmed that Garcia Recycling was submitting payment request data equal to 4.2 million pounds of recycling material per year (Attachment 1). Below is the volume breakdown (in pounds) for the Garcia Recycling location: Board of Directors October 15 , 201 3 Page 3 of 5 Garcia Recycling - Volume Reports 2009 2010 2011 1 358,000 355,165 245,061 2 358,000 355,165 245,061 3 358,000 355,165 0 4 358,000 355,165 0 5 358,000 355,165 0 6 358,000 355,165 0 7 358,000 355,165 0 8 358,000 355,165 0 9 358,000 355,165 0 10 358,000 355,165 0 11 358,000 355,165 0 12 358,000 355,165 0 lbs. *4,296,000 *4,261,980 490,122 *Monthly numbers are the average since only yearly numbers were reported to the State Once G arcia Recyclin g closed in February 2011 , OCC Recycling Center experienced a small increase in their recycling amounts. In 2011, OCC Recycling Center collected 218,511 more pounds of recycling material than they did the previous year. However, t his increase is only equiv alent to 5 percent of the total amount that Garcia Recycling was collecting annually . OCC Recycling Center ’s volume decreased in 2012 . Therefore, the OCC Recycling Center did not benefit long term from Garcia Recycling’s closure. Below is the volume breakd own (in pounds) for the OCC Recycling Center (Attachment 2): OCC Recycling Center - Volume Reports 2010 2011 2012 1 257,040 341,989 330,391 2 356,830 *287,486 265,556 3 384,904 280,017 230,487 4 232,132 351,479 291,413 5 309,584 313,408 298,280 6 271,578 316,520 291,700 7 334,936 381,948 285,560 8 342,830 364,561 332,628 9 346,946 324,379 261,225 10 228,447 323,493 260,449 11 306,330 264,718 277,773 12 301,785 341,855 180,035 lbs. 3,673,342 3,891,853 3,305,497 *Garcia Rec ycling closed its doors on February 14, 2011 Board of Directors October 15 , 201 3 Page 4 of 5 On the other hand, CMSD’s volume reports indicate a huge increase of over 5 and 6 million p ounds of materials for both 2011 and 2012 , respectively . This increase is more than what Garcia Recycling was collectin g annually. Below is the volume breakdown (in pounds) for CMSD (Attachment 3): CMSD - Volume Reports 2010 2011 2012 1 3,240,000 3,667,833 3,821,333 2 3,240,000 *3,667,833 3,821,333 3 3,240,000 3,667,833 3,821,333 4 3,240,000 3,667,833 3,821,333 5 3,240,000 3,667,833 3,821,333 6 3,240,000 3,667,833 3,821,333 7 3,240,000 3,667,833 3,821,333 8 3,240,000 3,667,833 3,821,333 9 3,240,000 3,667,833 3,821,333 10 3,240,000 3,667,833 3,821,333 11 3,240,000 3,667,833 3,821,333 12 3,240,000 3,667,833 3,821,333 lbs. 38,880,000 44,013,996 45,855,996 *Garcia Recycling closed its doors on February 14, 2011 S ince CMSD ’s total volume reports are based on the mixed waste or single stream system, and since the recyclables are based on a waste character ization process, actual recycling amounts are difficult to identify . Therefore, we cannot be certain that this increase was all recyclable material. However, based on CMSD’s historical recycling percentages, it is safe to say that at least 54.14 percent of the extra pounds collected in 2011, and 57.84 percent of the extra pounds collected in 2012, were indeed recyclable materials. Strategic Plan Element & Goal This item complies the with objective and strategy of Strategic Element 2.0, Solid Waste, w hich states: “Objective: Our objective is to manage the collection and recycling of residential trash in the most economical and environmentally friendly way.” “Strategy : We will do this by looking for ways to improve efficiencies, achieve high customer satisfaction, and considering prudent new recycling methods.” Board of Directors October 15 , 201 3 Page 5 of 5 Legal Review Not applicable at this time . Environmental Review Closure of a private recycling firm and its impact on others, including CMSD, who might collect subject refuse, is not a dist urbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review CMSD does not benefit financially from additional recyclable materials that end up in our waste stream. Per o ur Agreement , CR&R “…shall become owner of all solid waste when collected and shall have exclusive right to market all recycled material reclaimed from solid waste generated by the District… and shall be entitled to any and all income derived from said mar keting over which District shall have no claim.” Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the October 15 , 2013 Board of Directors Study Session at District Headquarters and posted o n the District’s website . Attachments 1. Cal Recycle Report (Ga rcia Recycling Volume Report ) 2. Complete Analysis of All Volume Reports Attachment 1 YEAR REDEEMED WGT - AL CRV - AL REDEEMED WGT - GL CRV - GL REDEEMED WGT - PET CRV - PET REDEEMED WGT - HDPE CRV - HDPE 2009 430,458.23 675,819.43 $ 3,084,926.31 323,917.26 $ 638,580.87 612,676.63 $ 139,197.61 75,166.71 $ 2010 424,580.43 663,951.26 $ 3,093,248.00 324,791.04 $ 617,191.18 569,974.90 $ 121,573.58 61,782.15 $ 2011 47,251.90 72,767.92 $ 365,475.09 38,009.41 $ 68,082.81 63,317.01 $ 9,309.73 5,120.35 $ 902,290.56 6,543,649.40 1,323,854.86 270,080.92 AL = Aluminum GL = Glass PET = PET plastics HDPE = HDPE plastics PS = PS plastics (#6) BM = Bimetal Attachment 1 REDEEMED WGT - PS CRV - PS REDEEMED WGT - BM CRV - BM TOTAL CRV 127.30 453.19 $ 3,498.05 851.12 $ 1,688,884.34 $ 4,296,788.37 489.30 2,623.77 $ 4,906.08 1,226.52 $ 1,624,349.64 $ 4,261,988.57 2.60 10.87 $ - -$ 179,225.56 $ 490,122.13 619.20 8,404.13 3,492,459.54 $ 9,048,899.07 9,048,899.07 lbs 2009 2010 2011 2010 2011 2012 2010 2011 2012 1 358,000 355,165 245,061 1 257,040 341,989 330,391 1 3,240,000 3,667,833 3,821,333 2 358,000 355,165 245,061 2 356,830 287,486 265,556 2 3,240,000 3,667,833 3,821,333 3 358,000 355,165 0 3 384,904 280,017 230,487 3 3,240,000 3,667,833 3,821,333 4 358,000 355,165 0 4 232,132 351,479 291,413 4 3,240,000 3,667,833 3,821,333 5 358,000 355,165 0 5 309,584 313,408 298,280 5 3,240,000 3,667,833 3,821,333 6 358,000 355,165 0 6 271,578 316,520 291,700 6 3,240,000 3,667,833 3,821,333 7 358,000 355,165 0 7 334,936 381,948 285,560 7 3,240,000 3,667,833 3,821,333 8 358,000 355,165 0 8 342,830 364,561 332,628 8 3,240,000 3,667,833 3,821,333 9 358,000 355,165 0 9 346,946 324,379 261,225 9 3,240,000 3,667,833 3,821,333 10 358,000 355,165 0 10 228,447 323,493 260,449 10 3,240,000 3,667,833 3,821,333 11 358,000 355,165 0 11 306,330 264,718 277,773 11 3,240,000 3,667,833 3,821,333 12 358,000 355,165 0 12 301,785 341,855 180,035 12 3,240,000 3,667,833 3,821,333 lbs.4,296,000 4,261,980 490,122 lbs.3,673,342 3,891,853 3,305,497 lbs.38,880,000 44,013,996 45,855,996 OCC Volume Reports CMSD Volume Reports Garcia Recycling - Volume Reports 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011 2012 OCC's Impact: Garcia Recycling closed its doors on February 14, 2011 Attachment 2 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 MATERIAL WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT Mix/Office Paper 47,460 34,160 32,600 29,640 47,520 34,780 33,520 39,920 34,740 29,646 30,700 15,390 Newspaper 37,040 26,960 26,420 34,080 27,180 26,480 31,700 28,200 24,640 27,160 27,120 38,620 Cardboard 39,410 N/A 39,840 39,170 N/A 36,030 N/A 41,390 N/A 38,240 40,400 N/A H.D.P.E.5,435 3,920 4,220 5,620 4,260 3,600 5,280 4,220 4,180 4,960 3,716 4,840 P.E.T.35,560 35,500 28,400 35,760 37,240 36,700 39,000 30,140 39,640 40,480 33,040 25,160 Aluminum Cans 22,807 24,340 19,007 22,087 24,160 23,940 24,260 21,350 25,935 23,682 19,397 17,805 Glass 111,020 108,200 75,060 98,760 146,860 105,500 140,280 138,120 104,960 72,800 119,360 71,320 Scrap Metal 6,000 12,220 4,940 6,040 11,060 5,320 11,520 10,540 7,440 5,240 4,040 4,980 Bi-Metal 4,380 N/A N/A N/A N/A N/A N/A N/A 878.10 N/A N/A 1,920 E-Waste 21,279 20,256 N/A 20,256 N/A 19,350 N/A 18,748 18,812 18,241 N/A N/A Total:330,391 265,556 230,487 291,413 298,280 291,700 285,560 332,628 261,225 260,449 277,773 180,035 2012 Total:lbs.3,305,497 Attachment 2 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 MATERIAL WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT Mix / Office Paper 57,965 43,240 46,120 46,020 44,360 50,940 33,060 38,120 52,392 50,580 34,380 47,590 Newspaper 41,080 43,380 31,960 28,620 40,900 29,520 28,900 33,860 28,680 35,820 34,020 32,640 Cardboard 40,760 32,420 N/A 40,160 40,400 N/A 40,070 39,360 N/A 40,100 N/A 40,420 H.D.P.E.4,820 4,740 6,480 6,160 5,883 6,040 4,840 6,160 4,880 5,568 4,620 4,980 P.E.T.41,120 40,940 N/A 40,600 39,100 39,760 73,060 39,980 40,100 40,300 40,240 32,820 Aluminum Cans N/A 30,387 30,217 30,807 N/A 33,160 35,772 33,800 28,102 33,605 25,417 22,965 Glass 104,140 65,660 143,980 134,404 114,622 146,400 141,100 148,460 138,380 106,500 98,420 132,660 Scrap Metal 33,080 6,108 21,260 5,620 7,460 10,700 5,340 6,220 11,400 11,020 5,680 23,400 Bi-Metal N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 4,380 E-Waste 19024 20611 N/A 19088 20683 N/A 19806 18601 20445 N/A 21,941 N/A Total:341,989 287,486 280,017 351,479 313,408 316,520 381,948 364,561 324,379 323,493 264,718 341,855 2011 Total:lbs.3,891,853 Attachment 2 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 MATERIAL WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT WGT Mix / Office Paper 41,600 58,040 72,080 30,700 47,580 37,040 69,320 60,360 49,520 42,040 50,820 60,528 Newspaper 44,180 44,300 52,540 38,040 38,720 44,040 34,680 44,240 33,760 36,020 46,140 43,400 Cardboard 43,400 36,396 42,240 N/A 39,260 N/A 40,290 38,450 38,450 N/A 40,240 40,520 H.D.P.E.5,580 2,500 9,480 5,020 5,340 5,980 4,840 4,660 4,620 5,700 4,840 6,660 P.E.T.N/A 43,920 38,520 36,940 28,360 N/A 39,880 39,800 39,580 37,300 N/A 39,720 Aluminum Cans N/A 29,835 25,605 23,472 N/A 31,200 N/A 31,620 33,164 N/A 31,385 23,357 Glass 109,500 105,260 106,920 73,880 113,100 117,820 106,480 108,480 114,200 75,620 106,720 68,780 Scrap Metal 12,780 16,580 16,640 24,080 15,960 12,500 20,160 15,220 13,620 11,120 7,120 18,820 Bi-Metal N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A E-Waste N/A 19,999 20,879 N/A 21,264 22,998 19,286 N/A 20,032 20,647 19,065 N/A Total:257,040 356,830 384,904 232,132 309,584 271,578 334,936 342,830 346,946 228,447 306,330 301,785 2010 Total:lbs.3,673,342 Attachment 2