[CALL TO ORDER]
[00:00:03]
I'D LIKE TO CALL, TO ORDER OUR WORK SESSION TONIGHT THAT HAS TO
[1. Update on the Recycling Market and the City of Chandler’s Recycling Program.]
DO WITH CHANDLER RECYCLING PROGRAM.AND, UH, AT THIS POINT I'D LIKE TO TURN IT OVER TO CITY MANAGER.
WE HAVE A QUORUM WITH COMPA MEMBER MCCLYMONDS CALLING IN ON THE PHONE CITY MANAGER, YOU MAYOR, MAYOR, AND COUNCIL.
BACK IN FEBRUARY, WE DID MAKE A PRESENTATION TO YOU ALL IN WORK SESSION REGARDING THE STATE OF RECYCLING.
AND WE HAD BEEN DISCUSSING THAT, I GUESS, FOR THE LAST, ALMOST TWO YEARS AT THIS POINT, IN TERMS OF SOME OF THE RECYCLING ISSUES THAT ARE OUT THERE AND THE COSTS THAT NOW WE WERE, WE WERE ACTUALLY MAKING REVENUE OFF OF RECYCLING, WHERE THAT'S ACTUALLY FLOPPED, WHERE WE'RE HAVING TO PAY DURING THAT WORK SESSION.
YOU ALL REQUESTED A SIX MONTH UPDATE ON RECYCLING.
SO WITH THAT, WE HAVE GREG CAPS, OUR WATER RESOURCE MANAGER HERE TO GIVE YOU AN UPDATE.
GREAT, THANK YOU, CITY MANAGER FOR THAT INTRODUCTION AND GOOD AFTERNOON, MAYOR AND COUNCIL, IT'S HARD TO BELIEVE IT'S BEEN SIX MONTHS SINCE WE PROVIDED THIS UPDATE TO YOU.
THE PURPOSE OF THE MEETING TODAY IS JUST TO PROVIDE AN UPDATE ON WHAT'S HAPPENED OVER THOSE SIX MONTHS AND WHAT TYPE OF ACTIVITY ACTIVITIES OUR RECYCLING PROGRAM HAS GONE THROUGH.
SO THE AGENDA IS GOING TO BE, I'M GOING TO PROVIDE A REAL QUICK HISTORY ON RECYCLING.
UM, ALSO GO OVER THEIR CURRENT RECYCLING TRENDS.
SOME OF THE EDUCATION ACTIVITIES OUR STAFF HAS BEEN, UM, INVOLVED WITH ALSO THE IMPACT TO THE BUDGET.
AND THEN THE NEXT STEPS, JUST A QUICK REMINDER ON THE RECYCLING PROCESS ON THE COLLECTION TRUCKS PICK UP THE CONTENTS OF THE BLUE CANS.
THAT'S CONTRACTED THROUGH WASTE MANAGEMENT.
SO THAT'S UNDER A SEPARATE CONTRACT.
UM, WASTE MANAGEMENT DELIVERS SOME MATERIAL TO UNITED FIBERS WHO THAT'S THE COMPANY THAT PROCESSES THE RECYCLING MATERIAL.
AND THAT'S THE, THAT'S THE CONTRACT WE EXTENDED IN FEBRUARY.
UM, UNITED FIBERS IS LOCATED ON ARIZONA AVENUE AND RAY, THE RECYCLABLES ARE SORTED INTO DIFFERENT CATEGORIES OR COMMODITIES.
UM, IT'S SORTED THROUGH OPTICAL SORTERS TYPE OF EQUIPMENT.
AND THEN ALSO WORKERS' HAND SORTS.
THERE'S ALSO QUARTERLY AUDITS THAT ARE COMPLETED AND THE QUARTERLY AUDITS, UM, LOOK AT THE PERCENTAGE OF EACH CATEGORY.
SO THEY'LL BRING A LOAD OF CHANDLER MATERIAL INTO THEIR FACILITY, SEPARATE IT ALL OUT.
SO THEY KNOW THAT THEY SEPARATED EIGHT DIFFERENT CATEGORIES, WHICH IS ALSO A COMMODITY, UM, WHICH HELPS WITH OUR REVENUE SHARE THAT I'LL TALK ABOUT IN A LITTLE BIT.
IT ALSO DETERMINES THE AMOUNT OF TRASH THAT'S IN THE LOADS COMING FROM CHANNEL.
THE ITEMS THAT AREN'T ACCEPTED FOR RECYCLING ARE THEN LANDFILLED AT BUTTERFIELD AND RECYCLING COMMODITIES THAT, UM, ARE NOT TRASH.
THEY'RE SOLD TO MAKE NEW PRODUCTS, A LITTLE BIT OF HISTORY.
THIS IS ANOTHER REFRESHER CAUSE WE COVERED THIS, UH, LAST MEETING.
UM, WE STARTED OFF WITH DROP-OFF SITES.
WE HAD FOUR THROUGHOUT THE CITY AND THOSE WERE BIG BINS THAT WE PUT IN SEVERAL PARKS.
WE STARTED OUR CURBSIDE RECYCLING NOW IN 1995.
SO WE DISTRIBUTED A BUNCH OF BLUE RECYCLING CANS TO OUR RESIDENTS, UM, TO START THAT PROGRAM WITH THAT PROGRAM, WE HAD TO ENTER INTO THE PROCESSING CONTRACTS AND THAT'S THE RECYCLING CONTRACTS.
UM, AS MARCIA MENTIONED IN 1995, THROUGH 2018, LIFE WAS REALLY GOOD IN THE RECYCLING WORLD.
AND WE WERE ACTUALLY GETTING PAID FOR EVERY TON OF MATERIAL WE DELIVERED TO UNITED FIBERS.
AND THEN THE MARKET RECYCLING MARKET PRETTY MUCH TOOK A CRASH BEFORE 2000, RIGHT AROUND THE 2018 TIMEFRAME.
UM, IT WAS THE MATERIAL THAT WAS BEING ACCEPTED BY CHINA, WHICH WAS AT THE TIME WAS THE BIGGEST IMPORTER RECYCLED MATERIAL IS THERE WAS MORE RESTRICTIONS PLACED ON THAT MATERIAL.
SO IT HAD TO BE MUCH CLEANER AND THEY WEREN'T ACCEPTING THE SUPPLY.
SO WE HAD A LARGER SUPPLY AND WE DID DEMAND, WHICH ISN'T GOOD ECONOMICS.
SO THE RECYCLING REVENUE WENT DOWN.
UM, SO IN 2018 WE ENTERED INTO A NEW CONTRACT, UM, AND THAT INCLUDES FEES.
SO THE MATERIAL WAS DELIVERED TO UNITED FIBERS.
WE PAY A FEE TO PROCESS IT AND THEN WE GET 55% OF THE REVENUE SHARE OF THE MATERIAL THAT CAN BE SOLD.
AS CITY MANAGER MENTIONED IN FEBRUARY, WE HAD THE WORK SESSION.
UM, ONE OF THE DIRECTIONS THAT CAME FROM THE WORK SESSION IS EXTEND THAT CONTRACT.
ANOTHER YEAR WITH THAT CONTRACT, WE HAVE FEES, PROCESSING FEES, STILL THE REVENUE SHARE, PLUS AN ADDED WASTE CHARGE FOR ALL THE MATERIAL THAT ISN'T RECYCLABLE.
WE HAD A DISCUSSION ON OPTIONS.
UM, AT THE TIME THE OPTIONS WERE EITHER DISPOSED OF AT A RECYCLE.
UM, WE, UM, WERE DIRECTED TO REBRAND OUR RECYCLING PROGRAM.
[00:05:01]
ON THAT.TRACY CONAWAY, OUR RECYCLING SPECIALIST HAS PUT A LOT OF WORK WITH OUR KAPPA TEAM TO REBRAND.
NOW, UM, I'M GOING TO GO INTO THE SLIDES HERE, UM, WITH EDUCATION AND A COUPLE OF SLIDES.
WE ALSO, UM, WE WERE, HAVE BEEN BUSY ON EDUCATION OF, OF, OF EDUCATING RESIDENTS.
WHAT IS RECYCLABLE? WE WERE ALSO DIRECTED TO CONTINUE TO EXPLORE REGIONAL OPPORTUNITIES.
WE HAVE REGULAR MEETINGS, MONTHLY, QUARTERLY WITH, UH, WITH A LOT OF DIFFERENT RECYCLING GROUPS, CITIES, UM, MAINLY, UM, AND JUST EXPLORING DIFFERENT OPTIONS.
WHAT HAPPENED THERE WAS, IT STARTED OUT REALLY.
I MEAN, IT STARTED OUT FAIRLY PRODUCTIVE, BUT WHEN COVID HIT A LOT OF THE OTHER BIGGER CITIES ACTUALLY USE THEIR STAFF TO PICK UP THE TRASH.
UM, SO A LOT OF THE MESSAGING AT THAT POINT WAS HOW DO THEY GET THROUGH THE COVID AND KEEP THEIR EMPLOYEES HEALTHY ENOUGH TO SIT IN A TRUCK AND PICK UP THE TRASH.
SO THAT'S, WE HAVEN'T REALLY MADE A LOT OF HEADWAY THERE, BUT WE'RE CONTINUING TO DISCUSS, DISCUSS DIFFERENT OPPORTUNITIES.
UM, THE OTHER THING WE WERE DIRECTED OF COURSE, IS TO RENEW THE CONTRACT.
AND THEN AS CITY MANAGER MENTIONED ALSO TO PROVIDE AN UPDATE, WHICH IS WHY WE'RE HERE TODAY, BUT JUST TO GO OVER THE STATE OF RECYCLING, UM, RECYCLING MARKETS, WE SHOWED SOME IMPROVEMENTS IN APRIL AND THEN UNFORTUNATELY WE GOT THE JUNE AND JULY, UM, INVOICE AND IT'S DROPPED BACK DOWN.
I HAVE A GRAPH TOWARDS THE END HERE.
IT'S A GOOD VISUAL ON WHAT THEY'VE BEEN DOING.
UM, ONE OF THE BIG ISSUES THAT'S HAPPENED IS CARDBOARD IS LIKE 28% OF OUR TOTAL LOAD THAT WE DELIVER FOR PROCESSING.
AND THAT CARDBOARD'S BEEN GOING UP AND DOWN, YOU KNOW, THE SALES OF THE CARDBOARD.
SO THAT'S ONE OF THE REASONS WE HAD FLUCTUATION IN THE MARKETS.
THE OTHER THING WE FOUND IS COVID BUYING HABITS, UM, INCREASED TONS THAT WE'VE BEEN COLLECTING.
THEY'VE GOT, UM, IN 2019 OF JUNE, JUST TO GIVE YOU AN IDEA, WE COLLECTED 1400 TIMES OR RECYCLE MATERIAL.
THIS JUNE, IT WAS 1,750 TIMES.
SO THE TONS WE'RE COLLECTING IS GOING UP BECAUSE PEOPLE ARE BUYING MORE, BRINGING CARDBOARD BOXES TO THEIR HOME.
CARDBOARD'S GOOD IF THEY COULD RECYCLE IT, BUT THEN ALL THE STUFF INSIDE OF IT ALSO GETS PLACED IN THE RECYCLE BIN AND THAT'S TRASH.
SO IT'S A CATCH 22, WE'RE DOING OUR BEST TO EDUCATE THE RESIDENTS ON WHAT WE CAN AND CANNOT DO FOR THAT.
THE, UM, PROCESSING CONTRACT IS MADE UP OF THREE DIFFERENT COMPONENTS.
THE FIRST IS LIKE I MENTIONED THE PROCESSING FEE AND THAT'S A FLAT RATE THAT WE PAY UNITED FIBERS TO PROCESS THAT MATERIAL.
THE SECOND PIECE IS THE REVENUE SHARE.
AGAIN, WE COLLECT 55% OF THE REVENUE THAT THEY SELL ON THE MARKET.
AND THEN THE LAST IS THE TRASH COMPONENT AND THAT'S $40 A TON.
SO ANYTHING THAT'S NOT RECYCLABLE, WE HAVE TO PAY THE $40 A TON.
INVOICES ARE CALCULATED WITH THOSE THREE METRICS.
YOU HAVE THE RECYCLING TONS FOR THE PROCESSING FEE PRICES, FREE COMMODITY REVENUE SHARE, AND THEN A QUARTERLY AUDIT FOR CONTAMINATION.
QUESTION ON THE PROCESSING FEE, YOU SAID AS A FLAT FEE, IS THAT A FLAT FEE PER TONNAGE OR IS THAT MONITORED RIGHT? OR AS A MAYOR VICE MAYOR, THAT'S CORRECT.
AS PER THE TON, IT'S JUST A FLAT FEE FOR THE AMOUNT OF TONS WE DELIVER EVERY MONTH.
OR EVERY DAY THAT THEY COLLECT IT, HERE COMES A MEMBER ORLANDO.
ON THAT PROCESS, I NEED THE $40 TODAY IS THAT WE NORMALLY PAY TO BRING THINGS TO THE CENTER.
IF YOU PICK UP AT THE HOUSE OR IS THAT SOMETHING SPECIAL OR THE DIFFERENT FEE? YOU MEAN WHAT WE DELIVER TO BUTTERFIELD THE LANDFILL? YEAH.
SO YOU, WE DELIVERED TO BUTTERFIELD NORMALLY, LIKE, YOU KNOW, IT'S TRASH, WHAT'S THAT NORMAL FEE, $41, LITTLE $41 A TIME TO DELIVER SAME WHERE THEY PICK UP THE RECYCLING CENTER OR THEY PICK IT UP.
BUT WHATEVER GOES OUT THERE THAT'S, IT'S, THAT'S WHAT WE PAY IS ABOUT $41 $41 AND 37 CENTS.
SO IT'S PRETTY CLOSE TO SAMPLE.
SO THE EDUCATION AND OUTREACH, UM, AGAIN, TRACY'S BEEN BUSY WORKING WITH OUR KAPPA TEAM TO COME UP WITH A GOOD PLAN.
AND THE WHOLE KEY WAS TO REBRAND THE RECYCLING PROGRAM BECAUSE WE'RE NOT ACCEPTING ALL THE PLASTICS WE USED TO.
AND IT'S JUST, WE'RE JUST TRYING TO MAKE A NICE, CLEAR VISUAL FOR OUR RESIDENTS.
THEY CAME UP WITH THE RECYCLE RIGHT, UM, BRAND.
AND THIS IS ONE OF THE POSTCARDS WE PUT IN THE UTILITY BILL INSERT JUST SHOWS WHAT'S RECYCLABLE.
UM, NICE, EASY VISUAL PICTURE TO LOOK AT.
THERE'S A LITTLE NOTE THERE THAT SAYS, IF YOU DON'T SEE IT ON THIS POSTCARD, IT'S NOT RECYCLABLE.
SO, UM, THAT'S KIND OF THE BRAND NOW THEY'VE USED IT IN OTHER DIFFERENT WAYS, BUT THAT WAS THE POSTCARD WE USED.
[00:10:02]
AND THEN, UH, TRACY DID SEVERAL DIFFERENT, UM, VIDEOS THAT HAD SIX DIFFERENT VIDEOS.UM, AND THEY USE THAT ON SOCIAL MEDIA.
THEY USED IT LIKE THEY HAD ONE FOR PAPER, CARDBOARD, PLASTIC, AND THEN ALL TOGETHER WE DID THAT.
AND THEN WEBSITE WAS UPDATED WITH THE NEW BRAND IN MARCH IN SOCIAL MEDIA AND MAYOR AND COUNCIL.
I'LL BE THE FIRST TO TELL YOU, I'M NOT AN EXPERT AT ALL ON SOCIAL MEDIA, BUT LUCKILY TRACY AND OUR KAPPA TEAM ARE.
SO THEY HAVE TO EDUCATE ME TO, UM, WHENEVER THEY GO OUT AND DO THE DIFFERENT THINGS THEY DO, BUT THEY DID COVER, UM, THESE DIFFERENT VIDEOS AND DIFFERENT BLOGS AND NEXT DOOR, FACEBOOK, TWITTER, INSTAGRAM, YOUTUBE, AND DIFFERENT BLOG POSTS.
UM, SO THEY REALLY COVERED A LOT OF THE SOCIAL MEDIA, NEWSPAPER ARTICLES.
SO, UM, THEY HA WE HAD A REALLY GOOD ONE AT COMMUNITY IMPACT.
THAT WAS RIGHT AFTER OUR WORK SESSION.
UM, BUT IT WAS A MULTI PAGE ARTICLE AND IT WAS, THEY USED THE RIGHT RECYCLE RIGHT BRAND.
AND THAT ONE OF THE SANTANA HAD ANOTHER REALLY GOOD ONE, UH, NEWSPAPER ARTICLES.
WELL, WE ALSO DO E NEWSLETTERS.
WE HAVE OVER A THOUSAND SUBSCRIBERS FOR THAT.
SO THAT'S THE NEWSLETTER THAT GOES OUT WITH THE MESSAGE.
UH, THE CITY STAFF PRESENTATIONS ONGOING.
WE ALSO ANSWER DAILY QUESTIONS ABOUT RECYCLING FROM OUR CUSTOMERS AND THEN A CURBSIDE INSPECTIONS.
YOU COULD SEE THAT IN THE TRUCK, WE DID 27,000 CURBSIDE INSPECTIONS SINCE MARCH.
AND WHEN THEY DO THOSE, IF THEY SEE SOMETHING IN THERE THAT'S NOT RECYCLABLE, THEY HAVE A BUNCH OF DIFFERENT FLYERS THAT THEY LEAVE.
IT DEPENDS ON WHAT PARTICULAR ITEM THEY PUT IN THERE THAT SHOULDN'T HAVE BEEN.
SO IT'S A TARGETED MESSAGE BACK TO THE RESIDENT, WHAT SHOULD NOT BE IN THERE.
SO I THINK THAT'S A REALLY GOOD PROGRAM AS WELL.
AND SO WITH ALL THAT, I'M SURE YOU'RE INTERESTED TO SEE WHAT THE CONTAMINATION RATE WAS SINCE WE LAST MET, UM, IN FEBRUARY, OUR, OUR AUDIT WAS 29% AND WE DROPPED THAT 7% TO 22% IN JUNE.
YES, MAYOR IS THAT I THINK THAT'S GREAT.
DO WE, I'M TRYING TO REMEMBER WHEN WE MET WITH YOU LAST TIME, DID, DID WE ASK HER, DID YOU SHARE SOME INFORMATION, HOW OTHER CITIES ARE THEIR CONTAMINATION RATE OR DO WE HAVE ANY IDEA HOW WE COMPARE WITH OTHER ENTITIES WITH THIS GOOD NEWS YOU DID ASK ABOUT THE DATA I DIDN'T BRING.
TRY TO, BUT TO SEE, DO YOU HAVE AN ANSWER FOR THAT? YEAH, IT'S, IT'S A BIT CHALLENGING BECAUSE WHAT EVERYONE HAS A DIFFERENT CONTRACT.
SO WE HAVE A CONTRACT WITH UNITED FIBER, BUT FOR EXAMPLE, TEMPE HAS ONE WITH REPUBLIC SERVICES.
AND SO HOW THEY DO THE SORTS, THE SAMPLE SIZES, THEY USE, IT'S A LITTLE APPLES TO APPLES, BUT WE CAN GET THAT FOR YOU AND SEE, YOU KNOW, HOW WE ARE DOING.
UH, I KNOW WHEN WE TALKED TO OTHER, UH, CITY, EVEN TOWNS, RIGHT NOW, THEY'RE HAVING THE SAME CHALLENGES THAT WE ALL ARE WITH INCREASED TONNAGE, WHICH USUALLY IS GOOD WHEN WE'RE EARNING REVENUE, NOT SO GOOD WHEN WE'RE PAIN, BUT OUR CONTAMINATION RATES, UM, ARE SIMILAR WHEN WE'VE TALKED TO OTHERS.
UM, A LOT OF THEM HAVE NOT BEEN DOING AUDITS, UH, BECAUSE OF COVID, LIKE I SAID, BUT WE JUST DID ONE IN JUNE, SO WE MIGHT HAVE MORE RECENT DATA.
SO WITH THAT 7%, JUST TO GIVE YOU AN IDEA, THAT'S 128 TIMES, UM, THAT'S BEEN REDUCED PER MONTH AND KEEP IN MIND, THOSE ARE QUARTERLY AUDIT.
SO THAT CARRIES FORWARD THREE MONTHS, UM, AFTER THE AUDIT.
SO FOR THREE MONTHS, WE'LL HAVE THAT 7% REDUCTION ON THE BOOKS.
AND THEN JUST SO YOU KNOW, TRACY IS OUT THERE EARLY IN THE MORNING, INSPECTING THOSE AUDITS WHEN A UNITED FIBERS DOES THOSE AUDITS.
AND SHE DOES A REALLY GOOD JOB, MAKING SURE THAT EVERYTHING'S PER CONTRACT.
SO EDUCATION OUTREACH MOVING FORWARD, THAT'S A MEMBER OF STEWART, JUST CURIOUS ON THE CONTAMINATION THING.
NOT BECAUSE THE MAYOR IS COMPETITIVE OR ANYTHING, BUT WHAT WOULD BE LIKE THE BEST SCORE YOU COULD EVER GET ON THAT? THAT'S A REASONABLE SCORE SO THAT WE WOULD ALWAYS BE AHEAD OF EVERY OTHER CITY AROUND US.
CAUSE I KNOW THAT'S, WE'RE GOING TO GET MARRIED.
I WAS FISHING FOR LIKE TRACY MENTIONED.
IT'S KIND OF DIFFICULT BECAUSE DEPENDING ON WHERE THEY'RE SENDING IT TO EVERY, EVERY PROCESS OR HAS A DIFFERENT, UM, ITEM THAT THEY WERE WINNING IS WHAT YOU'RE SAYING.
THAT'S CORRECT UNTIL THE DATA PROVES OTHERWISE.
UM, SO WHAT WE'RE GOING TO DO MOVING FORWARD IS THERE'S GOING TO BE SOME E POSTCARDS SENT, UM, TO, UM, OUR EMAILS AND WE HAVE LIKE 55,000 EMAIL ADDRESSES.
[00:15:01]
WE COULD SEND THOSE TO FACEBOOK LIVE IS ANOTHER THING THEY HAD TO EDUCATE ME ON, BUT IT'S A VIDEO, A LIVE CHAT WITH OUR RESIDENTS.UM, WE'RE ALSO GONNA DO, THAT'S GONNA BE SEPTEMBER BUS SHELTER POSTERS IN SEPTEMBER.
WE'RE GOING TO MEET MONTHLY WITH CAPA, MAKE SURE THAT WE'RE ON THE SAME TRACK.
WE'RE ALSO GONNA MEET WITH OTHER, I CONTINUE TO MEET WITH OTHER MUNICIPALITIES AND ORGANIZATIONS, SOME OF THE, JUST TO LET YOU KNOW, WE MEET WITH EAST VALLEY RECYCLING ALLIANCE, UH, MAG SOLID WASTE ADVISORY EVERY QUARTER, UM, ARIZONA RECYCLING COALITION, EVERY QUARTER COLLAGE MEETINGS, WHICH IS THE CITY'S, UM, MONTHLY.
UM, THEN IT WENT TO BIWEEKLY WITH THE OUTBREAK.
SO WE DO MEET WITH SEVERAL OTHER CITIES AND ORGANIZATIONS.
UM, WE'RE ALSO GOING TO BE DOING SOME CLEANS THERE, THE LITTLE, UM, THEY JUST STICK ONTO THEY'LL STICK ONTO YOUR RECYCLE BIN AND THEY'LL HAVE THE BRAND ON THERE AND WHAT ITEMS THAT COULD BE THAT'S YOU'RE SUPPOSED TO BE RECYCLING RIGHT ON YOUR CANON DOORS.
WE'RE ALSO GONNA TRY STICKER, GOING TO DO A SMALL PILOT STICKERS, HAVE SOME CHALLENGE BECAUSE THE HEAT AND THE FADING AVANT.
AND THEN IF YOU CHANGE OUT THE MATERIAL, LIKE LET'S SAY WE WANTED TO REDUCE TONNAGE AND WE'D TAKE GLASS OUT.
YOU MIGHT WANT TO TAKE GLASS OUT OF WHAT'S ACCEPTABLE.
UM, SO THEN WE WOULD HAVE TO GO BACK AND TAKE ALL THE STICKERS OUT, BUT WE'RE GOING TO TRY THAT ON A PILOT.
AND THEN THIS, THE NEXT COUPLE OF SLIDES ARE GOING TO BE TALKING ABOUT OUR BUDGET AND HOW THE IMPACT OF WHAT'S TO OUR BUDGET FOR THE RECYCLING MARKET.
UM, THIS FIRST SLIDE, THIS, IT SHOWS YOU HOW VARIABLE.
AND AGAIN, THIS IS EIGHT DIFFERENT COMMODITIES GROUP TOGETHER.
UM, AND THIS IS THE VALUE WE'RE GETTING AND THE TRASH IS ACTUALLY TAKEN OFF OF THIS AS WELL.
SO THIS IS A HUNDRED PERCENT OF WHAT UNITED FIBERS SOLD THAT MATERIAL FOR MINUS OUR TRASH.
SO IN JUNE IT WOULD HAVE BEEN $38 AND 24 CENTS.
THAT'S WHAT WE WOULD HAVE GOTTEN BACK FROM OUR REVENUE SHARE.
WE DIDN'T GET THIS UPDATED FOR JULY.
WE JUST GOT THE INFORMATION, BUT JULY UNFORTUNATELY WENT DOWN TO $61 AND 8 CENTS FOR THE TOTAL.
SO IT DID DROP A LITTLE BIT MORE.
UM, IF YOU NOTICE, MAY, MAY, THE MAY INCREASE WAS DUE TO THE CARDBOARD, AGAIN IS 28% OF THE WEIGHT OF THE MATERIAL.
CARDBOARD INCREASED 47% FROM APRIL TO MAY AND THEN DROP BACK DOWN TO MONTHS IN A ROW.
SO IT'S JUST VERY VARIABLE AND THAT'S JUST ONE OF THE EIGHT COMMODITIES.
UM, THE OTHER THING THAT HAPPENED IN JULY IS GLASS.
WE DIDN'T COLLECT ANY REVENUE FROM GLASS AND THAT'S THE OTHER COMMODITY WHERE WE WORK, COLLECT A LITTLE BIT, UM, THE WEIGHTED AVERAGE, UM, OH, OKAY.
THIS, THIS NUMBER IS, THIS NUMBER IS THE COMMODITY.
SO THEY HAVE THE EIGHT COMMODITIES, THE CARDBOARD GLASS, THEY SELL THAT ON THE OPEN MARKET.
SO THAT'S THE VALUE OF OUR RECYCLING MATERIAL THAT THEY'RE SELLING.
AND THEN WE SUBTRACT THE WEIGHT, THE TRASH OFF AND DIVIDED BY THE TOTAL RECYCLING TONS WE DELIVERED.
AND THAT'S WHAT THIS NUMBER IS THE RECYCLING INVOICES.
UM, THIS IS WHAT WE'VE PAID, KIND OF GIVES YOU THE HISTORY AND MARCH, 2020.
THAT'S WHEN WE EXTENDED THE CON FEBRUARY EXTENDED, BUT THE FIRST INVOICE YOU COULD SEE WHERE THAT STARTED AGAIN, IT'S GONE UP AND DOWN AGAIN.
MAY THE REASON WHY IT WAS A BETTER VALUE IN MAY IS BECAUSE THE CARDBOARD WAS A GOOD VALUE.
JUNE DROPPED AND THEN JULY, WE JUST GOT THAT INFORMATION DROPPED AS WELL.
AND TO GIVE YOU AN IDEA, THE, REMEMBER THE OPTIONS WE TALKED ABOUT DISPOSING, UM, VERSUS RECYCLING.
IF, FOR, IF WE WOULD HAVE DISPOSED THE MATERIAL ON JULY, IT WOULD HAVE BEEN $75,800.
SO IT'S STILL A LITTLE MORE EXPENSIVE TO RECYCLE THAN DISPOSE OF.
HOPEFULLY WE'RE HOPING THE MARKET'S COME BACK.
WE MIGHT HAVE TO WAIT THAT OUT A LITTLE BIT THOUGH.
SO THAT WOULD BE THE COST AVOIDANCE MIRROR.
SO JUST I'M INTERESTED IN THE NUMBERS HERE.
SO WHAT I'M HEARING IS IS THAT AT ITS WORST MONTH OF 96, THE, THE COST OF DISPOSE OF IT IS A FLAT RATE.
THAT'S NEVER REALLY GOING TO CHANGE BASED ON THE CONTRACT.
SO THOSE NUMBERS COULD FLUCTUATE.
SO WE'RE LOOKING AT A DELTA BETWEEN WHAT IT WOULD COST TO DISPOSE AND WHAT IT'S COSTING COST TO RECYCLE OF ABOUT 500,000 OR 400,000
[00:20:01]
A YEAR.NO, THE DELTA, CAUSE THIS IS, UH, THIS, THIS NUMBER, THIS INVOICE KEEP MINUS THREE DIFFERENT COMPONENTS.
IT'S THE PROCESSING FEE, THE COMMODITY SALES AND THE TRASH.
YEAH, THE, THE, WHAT WE SEND A BUTTERFIELD IS JUST A FLAT $41 AND 37 CENTS A TON.
SO THE DELTA IN JULY WOULD BE $16,000.
IT COSTS US $16,000 MORE PER TON TO RECYCLE, CORRECT? NO TOTAL FOR THE MONTH.
THIS, THIS GRAPH SHOWS YOU HOW WELL WE'VE BEEN PERFORMING WITHIN OUR BUDGET.
SO I TRIED TO THROW IN AT LEAST A LITTLE BIT OF GOOD NEWS HERE IS, UH, WE'RE LIVE WE'RE WELL PERFORMING WITHIN OUR BUDGET.
THE MAROON COLOR IS WHAT WE PRECIS PROJECTED.
UM, IT WAS OUR ESTIMATE TO BUILD THE BUDGET ON THE BLUE WAS WHAT OUR ACTUAL COSTS WERE.
SO WE'RE $33,000 UNDER BUDGET.
UM, SO THAT'S A LITTLE BIT OF GOOD NEWS.
I TRY TO GET TRACY COUNCIL MEMBER OR VICE MAYOR LOPEZ TO CHANGE THE BLUE TO, TO A GOAL, BUT SHE WOULDN'T DO IT FOR ME.
SO ARE THERE ANY QUESTIONS ON THAT? OKAY.
THE MAIN TRAIT, MY FINGER WAS AS QUICK AS THAT.
SO THE WAY IT'S AVERAGE COMMODITY SALES, LET'S GO BACK TO THAT CHART REAL QUICK.
SO WHEN DID YOU SAY JULY WAS AGAIN? JULY WAS JULY WAS $61 AND 8 CENTS.
SO IT'S A LITTLE BIT ABOUT, BUT I THINK YOUR TREND LINE HERE, THOUGH, IN ALL FAIRNESS TO YOU, JANUARY 5TH, WE HAD A COUPLE OF DIPS IT'S STILL HIGHER THAN THE, THE HIGH POINT WAS LASHED BEFORE JANUARY.
MOST OF THESE WERE IN THE FIFTIES TO MID FIFTIES.
SO YOU'RE STILL SHOWING A HIGHER TREND LINE HERE.
AT LEAST THE ISSUE THOUGH, IS THE PROCESSING FEE.
SO BACK, IF YOU LOOKED AT JULY, YOU KNOW, WE WERE PAYING $60 A TON TO PROCESS THE MATERIAL.
SO KEEP IN MIND, THIS, THIS CHART DOES NOT INCLUDE WHAT WE PAY FOR PROCESSING.
SO THAT'S A DIFFERENT CASE, BUT AGAIN, EVEN THOUGH YOU'RE PRESSING YOUR FEET WENT UP, YOU STILL HAD AN INCREASE IN SOME OF THESE SALES.
IT LOOKS A LOT BETTER THAN IT LOOKS BETTER THAN WE THOUGHT.
IF YOU HAD A DOWNWARD TREND HERE, YOU HAVE, LIKE I SAID, YOU HAVE A COUPLE OF SPIKES IN HERE OR A LITTLE LOW, BUT IT'S STILL PRETTY HIGH IN THE SIXTH.
IT'S HIGHER THAN THE 16TH, SO THAT'S GOOD.
SO THE NEXT STEPS, AND AGAIN, TRACY GUARANTEED ME.
THIS WAS NOT STAGED IN THIS RECYCLING BIN.
UM, BUT NEXT STEPS IS CONTINUE OUR EDUCATION AND OUTREACH, UM, CONTINUE TO EXPLORE OUR REGIONAL PARTNERSHIPS AND HOPEFULLY WE CAN GET BACK ONTO THE RECYCLING DISCUSSIONS.
WE'RE GOING TO EXPLORE, UH, POTENTIAL CODE CHANGES TO REDUCE CONTAMINATION.
AND WE'RE GOING TO EVALUATE OUR CONTRACT EXTENSION, WHICH COMES UP FEBRUARY OF 2021.
CAUSE IT'S A ONE YEAR EXTENSION WITH THAT.
TELL TRACY I'M LOOKING FOR A WIRE BASKET LIKE THAT SO I CAN DO, SHE TOOK THE PICTURE.
SO ANY QUESTIONS THAT'S A MEMBER STEWART.
THAT WAS A NICE, DID EVERYBODY HANG ON TO THAT? THAT'S A CHARCOAL.
HEY, UM, REAL QUICK, UM, ON THE, UH, EXPLORING CODE CHANGES, WHAT, WHAT DOES THAT MEAN? SO SOME OF THE CITIES ARE, UM, THEY'RE REMOVING CANS FROM REPEAT OFFENDERS NOW THAT'S, WE'RE MONITORING WHAT THEY'RE DOING.
IF WE EVER DID ANYTHING LIKE THAT, W YOU KNOW, WE'RE GOING TO CONTINUE TO MONITOR THE CITY PROGRAMS. WE'RE GOING TO HAVE TO REVIEW THE RECOMMENDATIONS WITH OUR CITY MANAGER'S OFFICE, THAT ALL THAT OUT.
AND IF WE GET APPROVAL, WE'D COME TO YOU WITH THAT.
BUT WE DON'T HAVE ANY SOLID RECOMMENDATIONS AT THIS POINT, BUT WE ARE LIKE MESA FOR INSTANCES, REMOVING CANS, IF, IF A CUSTOMER, RESIDENT PLACES, MATERIAL, AND IT SHOULDN'T BE IN MULTIPLE TIMES.
AND I REMEMBERED A CONVERSATION.
SO JUST SO I'M CLEAR WHY THAT CAN, THAT CAN SPOIL AN ENTIRE TON, RIGHT.
78 BUCKS JUST FROM ONE PERSON USING THE RECYCLING CANS FOR TRASH.
IT CONTRIBUTES TO THE TRASH COMPONENT OF THAT AND YEAH, YEAH, YEAH.
THE QUESTION I HAD FOR YOU, THEN I'LL WRAP IT UP.
[00:25:01]
REMEMBERED IN FEBRUARY ABOUT A CO-OP BETWEEN THE OTHER EAST VALLEY CITIES FOR PROCESSING, UH, HAS THAT CONVERSATION CONTINUED? YES, THAT WAS THE MEETING.I MENTIONED THAT WE MEET WITH THEM MONTHLY, UM, EXTRA, THE CO OP WAS LIKE WEEKLY MEETINGS THAT WENT REALLY.
MEAN WE DIDN'T HAVE A SOLID PROPOSAL AT THAT TIME, BUT ONCE COVID HIT, MASON'S DRIVE, THEY WERE MORE CONCERNED ABOUT GETTING THEIR DRIVERS IN THE TRUCKS TO COLLECT THE MATERIAL.
AND THAT DISCUSSION KIND OF FADED AWAY.
WE'RE STILL MEETING REGULARLY THOUGH.
SO IF THERE EVER IS AN OPTION, WE'RE GOING TO BE THERE AT THE MEETING.
UM, SO WHEN WE TALK ABOUT RECYCLE ITEMS AND YOU'VE GOT YOUR LIST OF WHAT'S ACCEPTABLE AND WHAT'S NOT, AND YOU'VE GOT, BUT, UM, GLASS LET'S TAKE LAST, FOR INSTANCE, IT WEIGHS QUITE A BIT AND, UH, YOU DON'T GET MUCH FOR IT.
IF ANYTHING IS THAT THIS MONTH WE DIDN'T GET ANY JULY.
WE WERE MAKING A LITTLE BIT OF MONEY EARLIER.
IT GOES UP AND DOWN AS WELL, BUT WE DON'T MAKE A LOT OF MONEY OFF CLASS.
IS THERE EVER ANY THOUGHT TO TAKING CERTAIN ITEMS OFF THE LIST AND SAYING, WE'LL EAT IT, MAYBE EVEN GIVING A PLACE FOR PEOPLE TO DROP GLASS IF THEY WANT, BUT JUST NOT MAKE IT A MAINSTREAM ITEM OR SOMETHING, SOMETHING THAT'S JUST A FOR INSTANCE.
I MEAN, THAT'S SOMETHING WE'VE TALKED ABOUT.
WE'VE TALKED ABOUT IT WITH OTHER CITIES TOO, AND THAT WAS PART OF THIS PARTNERSHIP AND THE MESSAGING.
THE PROBLEM IS, IS IF WE DO IT AND THE OTHER CITIES, DON'T, IT GETS CONFUSING OF A RESIDENCE.
UM, SO RIGHT NOW WE'VE KIND OF DECIDED TO BE IN A HOLDING PATTERN FOR THAT.
BUT THAT'S, THAT'S A VERY GOOD POINT BECAUSE IT'S VERY HEAVY AND WE'RE NOT MAKING A LOT OF MONEY OFF IT.
SO WE'RE PAYING THE PROCESSING FEE.
WE'RE NOT GETTING A REVENUE PROJECTION BACK, BUT, BUT THAT'S SOMETHING THAT'S BEEN DISCUSSED WITH ALL THE CITIES.
AND THAT'S KIND OF THE REASON WHY THEY HAVEN'T YET IS JUST BECAUSE YOU START TAKING ONE CITY, TAKES ONE ITEM OFF AND THEN IT GETS REAL CONFUSING.
SO WE WERE HOPING TO DO A PARTNERSHIP IF THAT EVER HAPPENS TO HAVE ALL THE EAST VALLEY CITIES, MAYBE DO THAT.
I MEAN, THERE'S DIEHARD PEOPLE THAT WANT TO RECYCLE EVERYTHING IF THEY COULD.
AND SO IF THERE'S SOME, ONE OR TWO ITEMS, YOU CAN SAY, HEY, THERE'S SELECT DROP SPOTS FOR THAT, BUT OTHERWISE IT'S NOT AN ITEM.
SO ANYWAY, IT SOUNDS LIKE YOU'RE ALL ON IT.
I WAS JUST MENTIONING THAT THE UNINTENDED CONSEQUENCES, BECAUSE THEN IF WE DO REMOVE THAT FROM GLASS FROM RECYCLABLE, BUT PEOPLE CONTINUE TO DO IT AS IT'S A TYPICAL RECYCLABLE ITEM THAT JUST THEN CONTRIBUTES TO THE HEAVIER TRASH AUDIT.
SO WE DEFINITELY HAVE TO HAVE A LONGTERM, LIKE A LONG RUNNING TRANSITION PERIOD.
THAT'S A HARD, THAT'S A HARD DEAL.
AND MOST PEOPLE, I MEAN, YOU KNOW, WHEN YOU THINK RECYCLABLE, YOU KNOW, ALUMINUM CANS, GLASS BOTTLES, THAT'S NEWSPAPERS, THOSE ARE TOP LINE ITEMS. RIGHT.
SO YEAH, JUST THE THOUGHT ANY OTHER COMMENTS? OKAY.
AND UM, YOU'RE GONNA KEEP US, KEEP US ABREAST OF ANY CHANGES IN THE PROGRAM THEN.
THANK YOU FOR THE PRESENTATION.
MARIN CONSOLE WITH THAT, THAT CONCLUDES OUR WORK SESSION.
IT IS FIVE 28 AND WE'LL HAVE OUR STUDY RP HACK SESSION START AT SIX.