City of Malden Trash and Recycling Background and

City of Malden Trash and Recycling Background and Proposal for Overhaul Ronald B. Hogan August 1, 2019 Malden City Council Meeting

THIS PRESENTATION IS AVAILABLE NOW ON THE CITY WEBSITE AT WWW. CITYOFMALDEN. ORG /TRASH

Background • In 2008, the City implemented a Pay-As-You-Throw (PAYT) program in response to increasing trash costs and to encourage recycling • Prior to the change, the City of Malden generated about 24, 000 tons of trash per year – Post-PAYT, the tonnage of trash decreased to about 11, 000 tons; about 4, 000 tons went to recycling; the remaining 9, 000 tons went to…. . ? ? ? • Since the implementation of the program, the global recycling markets have changed dramatically – China, the largest purchaser of US recycling, stopped taking our recycling due to contamination – It now costs MORE to handle and dispose of recycling than it does to handle and dispose of trash – The willingness of JRM to accept bad recycling to get at the valuable recycling materials has ended

Define the Problem to be Solved • Residents find the PAYT program inconvenient and are looking for an alternative program • The current PAYT program encourages residents to misclassify trash as recycling to avoid having to use ‘another bag’ • JRM has indicated that upwards of 40% of our recycling is ‘contaminated’ and has been urging us to take steps to address the issue OUR GOAL: To make program changes that modernize our current system by providing a more convenient means to dispose of an average amount of trash, while cleaning up the recycling contamination at the same time.

Trash and Recycling Overview Actually comprised of four distinct components Trash Hauling Recycling Hauling Trash Disposal Recycling Disposal Curbside pickup of all residential trash; all similar communities are weekly Curbside pickup of The process of all residential ‘getting rid of’ the recycling; most trash picked up often weekly although some communities are biweekly The process of ‘getting rid of’ the recycling picked up; entails a sorting process to get rid of contaminated materials

Two Models; Bundled and Unbundled Bundled (Malden/Medford) Unbundled (Everett/Revere) Service delivery One contract with one provider who provides hauling and helps with disposal (recycling and trash) One contract with hauler who does pickup, separate contract with company to ‘accept the trash, and third contract with company to accept/process the recyclables Advantages Simplicity of contract; take advantage of potential economies of scale of hauler with regards to disposal Can shop individual pieces to get the best deal Disadvantages Lack of transparency on actual costs More complex contract wise; Doesn’t necessarily save you money

Key JRM Contract Terms • Executed June 2011 – 20 year term – “Window” open from Jan to March of 2021 which allows city to seek proposal for same services; JRM has right to match or terminate Subject to interpretation just what ‘same services’ means’ and whether it is just ‘what’ or ‘how’ as well • Article III, Section 1 (trash) – Section (b) states that JRM shall pickup trash only when left in ‘city approved blue bags’ • • In other words, to change what the trash is left out in requires us to renegotiate Article III, Section 2 (recycling) – Section (a) states recycling to be separated (i. e. dual stream) – Section (c) states that JRM shall collect recyclable materials when items are left in suitable containers or bins without any further limitations • • Doesn’t appear to restrict our ability to change from bins to barrels Article III, Section 8 (trash and recycling) – Provides that JRM shall not be required to lift or handle waste or recyclable materials from any container with a gross weight of greater than 50 lbs. (except bulk items)

How do we compare SERVICE City Trash Collection Trash Cost Recycling Method Recycling Comments Frequency Malden Pay-As-You. Throw bags only $2 per 33 gallon bag; $1 for 15 gallon bag Dual-Stream; each resident 2 18 gallon bins Weekly Manual Collection Medford 1 64 Gallon city barrel; overflow bags $90 annual for barrel; $2 for overflow bags Single-Stream, 96 Gallon city barrel Bi-Weekly Automated Collection Melrose Resident provided barrels; max of 4 @ 45 gallons each $200 per year per unit Single-Stream, resident provided 45 gallon max barrel Weekly Manual Collection Lynn 1 64 gallon city barrel; overflow bags $90 per year per unit; $3 overflow bags Single-Stream, city provided 96 gallon barrel Bi-Weekly Semi-Automated Collection Revere 1 65 Gallon city barrel; over flow bags (resident drop off at DPW) $3 per overflow bag dropped off Single-Stream; 96 gallon city barrel Bi-weekly Semi-Automated Collection

How do we compare COSTS FY 2019 City Hauling Costs Tipping Fees Trash Tipping Fees Recycing Overall Annual Costs 10, 000 tons trash/4, 000 tons recycling Malden $1, 758, 000 (JRM) $78 per ton (JRM) $0 $2. 58 million Medford $2, 995, 000 Trash $1, 395, 000 Recy (Waste Mgmt) $85 per tonrebate for value of recyclables (Waste Mgmt) $5. 58 million Everett $1, 837, 000 (Capital Waste) $74 per ton (Wheelabrator) $115 per ton if clean $150 per ton if contaminated (Greenworks) $3. 18 million Revere $2, 027, 000 (Capital Waste) $74 per ton (Wheelabrator) $79 per ton; contaminated loads rejected or $150 a ton (Greenworks) $3. 36 million

First Key Impediment to Change I. Our below market hauling costs reflect simplicity of our current system I. Throwing bags into the back of a truck is simpler and faster for JRM; semi-automated (truck mounted tipper) collection methods are more labor intensive II. 18 Gallon recycle bins are easy to dump and return III. Wheeling barrel(s) to the curb to have truck pick it up, then wheel it back, is slower for JRM IV. JRM in general is not setup to do semi-automated pickups which would allow for larger containers

I. Second Key Impediment to Change Our contract doesn’t require us to pay for disposal of recycling I. When we signed our contract, the recyclables had enough value for JRM that it offset any ‘processing and disposal’ costs II. The market is quite different now; new contracts signed show it costs MORE to process/dispose of recyclables than trash III. Modern contracts have very specific terms dealing with increased costs for contaminated loads

Therefore…. Changes MUST be Negotiated • Introducing a barrel in place of any element of the ‘blue bag’ program needs to be negotiated – Hauler will look for increase in our hauling costs to reflect additional labor involved • Introducing a larger barrel for recycling and going to single-stream recycling to improve on current ‘bin’ system will need to be negotiated – Contract calls for dual-stream currently; traditionally additional costs associated with singlestream sorting • The 10 year “shop it” clause is of little value – Sufficient market data exists for surrounding communities who have signed a contract after us to tell us that in all cases, the current market is higher than our existing contract To make meaningful change to both trash and recycling, it is a give and take. JRM is going to require increased revenue both for the new services involved AND to improve on a contract that is below market. To suggest changes could be made by simply playing hardball is to not understand anything contained in the previous slides.

Heightened Urgency Received July 8 th, 2019 All of our recycling loads are greater than 10% contaminated At 4, 200 tons a year (2018), this would cost us $630, 000 While contractually we believe they don’t have the right to just impose this fee, we clearly need to take comprehensive action

Proposed Changes • Provide each qualifying residential unit a 65 Gallon Toter to use to dispose of trash; enough to deal with the typical households trash – Trash MUST be in a bag in the toter for JRM to pick up • “Overflow” trash would require a sticker that is available for purchase online (stickers could be mailed) or at City Hall • Institute ‘trash holiday’ weeks (for example, Christmas and Thanksgiving) where no overflow bags are required • Provide each qualifying residential unit a 32 gallon barrel to dispose of proper recyclables • Convert to a single-stream recycling method for the convenience of residents • Implement an annual solid waste and recycling fee of $10 per month (equivalent to the cost of just over one 32 gallon bag per week) per qualifying residential unit to replace PAYT revenue and cover expected increase in expenses

Toter vs Barrel 65 Gallon “Toter” 32 Gallon “Barrel”

Contractual Changes • Additional annual cost of $200, 000 for single-stream recycling; escalator • Additional annual hauling cost of $50, 000 initially, $50, 000 for years 11 to 15 and another $50, 000 for 16 to 20. • Tipping fees to be memorialized in a contract at cost plus 10%.

Balancing the Revenue and Expense Impact Revenue Expenses Monthly Solid Waste Fee @$10; 15, 000 households Contract increases; $200 k single stream, $50 k Hauling Overflow stickers Increased tonnage due to program changes and proper recycling Revenue reduction from elimination of PAYT bag sales Purchase of barrels; paid for over 5 year period

Next Steps • Public meeting(s) to get feedback • Ordinance language to support proposed changes • Finalize and execute contract amendment with JRM • Barrel ordering (long lead time) • Outline of education campaign (recycle IQ or similar)

FAQs Question Answer Why Now? We were recently notified by JRM that a cost of $150 per ton would be assessed for contaminated recycling starting July 29 th; in short, something has to be done to address the recycling problem. Solving it all at once therefore made sense. Why not use the 65 or 96 Gallon recycling carts I see in other communities? Our trash hauler, JRM, utilizes a manual pickup system. We are therefore limited in the size and weight of the container they are willing/able to pick up. What do I do if I have trash beyond the amount I can fit in the 65 gallon container? Two trash holidays will be instituted (for example, weeks after Christmas and Thanksgiving) to facilitate disposal during those heavy weeks. Otherwise, overflow stickers will be available for purchase online or at City Hall and can be attached to any 32 gallon bag. Why no lids on the recycling barrels? The City and JRM believe that detached lids will quickly get lost or blown away. We considered the 32 gallon toter but the shape is not conducive to recyclable materials and with limited weight inside, it has a tendency to tip more easily.