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HomeMy WebLinkAbout4.06 WasteOilRecylOptions . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 25, 1993 SUBJECT: Evaluation Recycling Assistant) of options (Prepared Available for by: Bo Barker, Waste oil Management EXHIBITS ATTACHED: 1sf /Memorandum to Assistant city Manager regarding Waste / oil Recycling RECOMMENDATION: _ ~eceive staff report. Defer the implementation of \2\1L~ any City initiated program until the effectiveness of the county sponsored Hazardous Waste Facility in Livermore is evaluated. FINANCIAL STATEMENT: If a City sponsored curbside waste oil program was instituted, one plan would cost individuals $1.47 per container. In the second program every. rate payer would be charged seven cents per month. Residents are already paying for a county program through fees levied at the landfill. DESCRIPTION: As part of the 1992 adopted City Council Objectives, Staff was directed to prepare a report on the potential a curbside waste oil recycling program. Staff has evaluated this well as other options available to the rate payers. Goals and to provide concept as Under the new California Integrated Waste Management Act, AB 939, local governments are required to establish a comprehensi ve program for managing Household Hazardous Waste (HHW). This is commonly referred to as the Household Hazardous Waste Element (HHWE). HHW is defined by the California Integrated Waste Management Board as, "any discarded material from homes that may threaten human health or the environment if disposed of incorrectly. II These materials include paint, used auto batteries, cleansers, furniture polish, pesticides, pool chemicals and used motor oil. Under the HHWE, the City is required to initiate a program to deal with used waste oil. The primary emphasis of the adopted HHWE relies upon programs operated by the Alameda county Health Department. Staff has completed a report, Exhibit I, which analyzes programs other cities utilize for waste oil, as well as options for Dublin residents to properly dispose of their waste oil. There are only a few realistic options which the City can institute to cope with waste oil. These options include curbside pick-up, assisting private entities such as Kragen Auto Parts, or other service stations to promote their programs and the Household Hazardous Waste Facility currently under construction. Key aspects of these options are presented below. DescriDtion of Residential Curbside Program options One option to dispose of waste oil is to provide a curbside program similar to the residential recycling program. Staff has received preliminary proposals and cost estimates from Livermore Dublin Disposal to institute such a program. One curbside program would involve selling waste oil containers at a cost of $1.47 each. The containers would be distributed from a City facility or possibly through local auto parts stores. The containers would then be picked up at the curb by Livermore Dublin Disposal. Consideration would need to be given to City administrative costs associated with such a program. The second option consists of charging every rate payer an additional cents per month which would go towards the cost of picking up waste oil. cost would include containers provided, on request, by the Company. would increase residential rates by approximately 1 percent. In both of these scenarios the cost of service covers overhead, operations and start-up costs associated with the implementation of a waste oil recovery program. It can be expected that the cost of the program will increase in future years. As discussed elsewhere in this report, the provision of curbside oil recycling would duplicate other programs already in place in other cities. seven This This --------------------------~------------------------------------------------ ITEM NO. 4.6 COPIES TO: Dan . . Evaluation of Curbside Waste oil Recycling Proqram The two options for curbside pick-up have both positive and negative aspects associated with them. Waste oil programs have a favorable image in the community, although there may be some question as to the number of residents which participate. There is also the danger of accidental spills at the curb. Overall, the goal of any waste oil program is to divert illegal dumping of this oil into gutters and storm drains. In program I, individuals would be charged $1.47 per container and would make the program more convenient for those wanting curbside pick-up. However, individuals who are not inclined to properly dispose of their waste oil will not likely go to a facility and purchase a container for $1.47. Moreover, residents already have the option to dispose of their waste oil at Kragen Auto Parts and other auto service businesses. Some charge a small fee, however, Kragen offers the service for no charge. There is little incentive for people to go the store to pay for a container versus going to the store to dispose of the waste oil for free. The second option of charging each rate payer an additional seven cents to implement a curbside program would not be equitable. Experience of other cities show relatively low participation.' rates for curbside waste oil programs. Based on waste oil programs in other cities, Livermore Dublin Disposal estimates they would recover, at most, 250 gallons a month. A charge on all rate payers would benefit only a small portion of the community. Alameda county's Household Hazardous Waste Collection Facilitv The Alameda Waste Management Authority in conjunction with Alameda county Health Department will be constructing three Hazardous Waste Collection Facilities in the county over the next three to six months. This project was developed in response to AB 939 requirements to have a program in place to take care of household hazardous waste. The facilities will be located in Livermore, Hayward and as proposed, Oakland. The Oakland facility has encountered problems with the location of the facility which are currently being resolved. The facility in Livermore, which would service DUblin residents, is due to be completed in March and ready to open in April of 1993. It should be noted that weather conditions or other unforeseen circumstances could delay the project. The construction of the facility is being supervised by the Alameda County Environmental Health Department. . These facilities are funded through a tipping fee of $1.25 per ton levied at the landfill. The fee becomes an operating expense of the Garbage Company and is recovered through the garbage rates. The fees have been collected since October of 1990. As of June of 1992, the County had collected over $3.8 million and none of the facilities were operational. Although the expenditures for the program are administered by the Health Department, the responsibility for levying the fee is under the jurisdiction .of the Waste Management Authority. The facilities will accept hazardous wastes from county households, and from qualifying county businesses which are "very small quantity generators." There will be no additional costs to Dublin Residents for utilizing . the facility as the cost of the facility is already paid for through the landfill tipping fee and the current rate base. Users will have a regular opportunity, once a month, to dispose of all their hazardous wastes in addition to their waste oil. This reinforces the concept that HHW, including waste oil, must be treated differently than regular garbage. Recommendation It is recommended that the City avoid implementation of a new curbside waste oil program. The County HHW drop off center is designated to provide this service and has already been funded by the rate payers. The focus on the new facility will also help' reinforce the concept that waste oil is a hazardous waste and not something that is poured down the drain or put out with the trash. The facility will also be accepting all types of household hazardous waste for no additional cost to residents as opposed to charging rate payers an additional amount for removal of one type of hazardous waste. Promotion of the new facility will be conducted when the facility opens in order to maximize usage. This will also avoid City administrative costs of implementing a new service. . CITY OF DUBLIN . MEMORANDUM TO: Assistant city Manager FROM: ~O Management Assistant SUBJECT: Report on potential to Provide Curbside Waste oil Recycling DATE: July 8, 1992 California State Law requires local governments to establish a comprehensive program for managing the Household Hazardous Waste Element as described in the California Integrated Waste Management Act, AB 939. In conjunction with the Household Hazardous Waste Element (HHWE), the city is required to initiate a program to deal with waste oil. Curbside recycling of waste oil is one alternative described in the HHWE. The following is an analysis of a curbside recycling of waste oil, alternatives and options for the City of Dublin. The following cities have waste oil curbside programs in place and were surveyed to determine how their curbside waste oil pick-Up programs work. Fremont Fremont is served by Oakland Scavenger Company (OSC). The waste oil program requires residents to purchase one gallon containers from local auto parts stores for a price of $.50 per one gallon container. The actual cost of the program is estimated at $1.00 per gallon of oil. The difference between what the participants pay and the total cost of the program is spread over the entire rate base. Residents fill containers and place them on the curb. OSC picks up the containers and transports them to a non-profit center where lids and labels are affixed to them. OSC again picks up the containers and takes them to Recycle America Center where Evergreen oil assumes the oil for recycling. Fremont estimates they receive 5,000 gallons of waste oil per year. Additionally, they estimate that 10,000 gallons of waste oil is self hauled to alternate facilities. According to the recycling coordinator these numbers indicate that a small portion of the community is utilizing the curbside program. San Ramon The City of San Ramon utilizes a "subscription" only program. A resident will request 4 one gallon containers which are dropped off at the household by the garbage company. The resident is charged $1.35 for each gallon container (a total of $5.40) which is added to their normal monthly garbage bill; . . San Ramon estimates they pick up 2,400 gallons of used oil per year. This indicates a small percentage of residents are participating. Although no statistics where available, it appears due to a low participation rate, that most people who change their own oil dispose of it by other means. This may include taking it to a hazardous waste facility, taking it to Kragen Auto parts, or taking to a service station willing to accept used oil. The cities of Fremont and San Ramon are good examples of the limited financing options available for curbside waste oil recycling programs. 1. Participants are charged for the entire cost of the service. 2. The participant is charged for part of the service and the rate base covers the remaining costs. 3. The entire rate base is charged an equal amount which covers all costs. Dublin Currently, Dublin residents have a number of alternatives for disposal of their waste oil. Kragen Auto Parts, the auto parts chain is now accepting used oil as long as there are no other elements in the substance. The service is free of charge. Kragen's plan stems from the idea that by accepting used oil, participants will buy other goods from the store. Residents could also take used oil to a willing service station or, in the near future, to the new Household Hazardous Waste Facility. Alameda County's Household Hazardous Waste Collection Facility The County will be constructing three Hazardous Waste Collection Facilities in Alameda County over the next 6 to 9 months. One of the facilities will be located in Livermore which would serve the City of Dublin. The Household Hazardous Waste Facility will accept hazardous wastes from County households, from qualifying County businesses and from "very small quantity generators." (VSQG's). The cost of the facility is already paid for through the landfill tipping fee and the current rate base, therefore there will be no cost for Dublin residents. Users will have a regular opportunity once a month to dispose of their hazardous wastes in addition to their waste oil. Dublin's Curbside Options Livermore Dublin Disposal (LDD) has supplied two options for a potential curbside waste oil pick up program in Dublin. The first program is a pay per use method in which a resident would purchase individual one gallon containers for $1.47 each. This rate covers all overhead and setup costs associated with the start of a new waste oil recovery program. Containers would be purchased by a resident at Livermore Dublin Disposal or a City facility. Once filled, the container is set at the curb, picked up and transported to a waste oil recycling . . facility. The container would not be reused in seemingly high per container cost is due to the of rate payers in Dublin, overhead costs and an of participants. In the second program containers would be dropped off at a residence. The full container would be replaced on the curb with an empty container. This program would cost every rate payer an additional $.07 per month. This price also includes overhead aha-:set up costs. Because every rate payer will be participating in this program, Livermore Dublin Disposal can easily set a price that covers all costs. this scenario. The relatively small number estimated small number It should be noted that these rates are estimates and could change in the event curbside waste oil must be treated differently under state or Federal law. Future increases in fees might be expected as well. Cost\Benefit Analysis The goal of a waste oil curbside pick-up program is to make oil disposal as inexpensive and convenient as possible so illegal dumping is averted. In determining the cost\benefit of a curbside program the cost of the program should be compared to how much oil is actually diverted from illegal dumping. The benefit of a curbside program would be stopping those individuals who currently dispose of their waste oil improperly, i.e. in the storm drain, in the gutter, etc. Generally, if the program has a relatively high direct cost, such as San Ramon'S program, individuals will be less likely to participate. It may be easier, and cheaper, to put oil in a personal container and take to Kragen Auto Parts, or a hazardous waste facility for no charge. Additionally, someone who is already properly disposing their oil for free will be resistant to paying more even if it may be slightly more convenient. Less responsible individuals who are dumping their waste oil illegally will realistically not begin to participate at a greater cost. In a program where there is a direct cost subsidized by the rate base many of the same problems still exist. This program would require a resident to purchase a container from another facility such as an auto parts store, as in Fr.emont's program, or other city facility. Individuals in this program would be required to make a trip to the store to purchase the container and set it out curbside. There seems to be little difference between going to the store to buy a container for a small fee and going to the store to dispose of the waste for free. This system is the worst of both worlds. Residents still pay for containers and the whole rate base subsidizes the program. Alternately, the cost of the program could be absorbed by the entire rate base. This program is somewhat unattractive because a only small portion of the community would be benefiting at the expense of the whole rate base. Residents may argue; 1. Why should.I pay when they already do it myself for free; or . . 2. Why should I help pay for somebody else to have curbside service and then pay a mechanic to change my oil. Yet, spreading the cost of the program over the entire rate base carries the greatest benefits. Because the resident is already paying for the cost of the program through the rate base, they are more likely to utilize the program. Those people disposing of their waste oil properly, will probably continue to do so. The main benefit, of course, comes from that person who decides to place a container on their curb rather than dumping it illegally. Recommendation The two programs available for Dublin residents would be a direct cost for participating individuals of $1.47 or a $.07 charge to all rate payers. Participation could be expected to be low for a direct cost program because it is believed individuals will find it is cheaper and no more inconvenient to take the oil to disposal sites themselves. It is unlikely that those individuals who are dumping illegally will voluntarily elect to pay for a container for curbside recycling. Charging all rate payers an additional amount would not only be unpopular, as with any rate increase, but would still not guarantee the benefit of large participation. Livermore Dublin Disposal estimates that a curbside program would yield at the most only 250 gallons per month or 3,000 gallons per year. The estimates are based on their experience with curbside waste oil programs in other cities. There are no statistics available on how much waste oil is currently being self hauled to recycling facilities. However, if a program was to be implemented, charging all rate payers would achieve the best results. As stated previously, the goal of a waste oil recycling program is to divert illegal dumping. Individuals who already take care of the waste oil correctly will continue to do so with or without a curbside program. It is estimated that a curbside program could divert a small quantity of waste oil from improper disposal. Although there are benefits to a curbside program, the costs appear to outweigh the overall, benefits of such a program. Relatively low participation in other cities substantiate a low benefit factor. Moreover, our residents have options available for the proper disposal of their waste oil and can achieve safe disposal at a lower cost than the city could provide. Further marketing efforts to inform residents of the hazards of improper disposal as well as providing information on disposal sites will continue and perhaps should be expanded through the National Pollution Discharge Elimination system (NPDES) and other awareness efforts.