1 Kaiser Permanente Electronic Equipment Disposition H2E Electronics Teleconference May 14, 2004

2 Overview Problem – Goals and Objectives Equipment Disposition Risks Environmental Stewardship Criteria Regulatory Compliance Due Diligence Vendor Selection Process Vendor Solution What’s in a PC System Sample Reports In-process Accomplishments

3 Goals and Objectives Original problem: Need to dispose of excess and obsolete IT Equipment in a cost effective manner Problem started with IT running out of SPACE - offices and cubes in addition to cabinets and closets were being used to store excess IT equipment The project lead - Director of National IT Finance, Jim Regan to manage process. IT quickly became aware of liability/pollution issues; involved National EH&S for the environmental components of IT Equipment Disposals National IT wanted to become “Best in Class” for equipment disposition IT needed to minimize overall “risk”

4 Main Equipment Disposition Issues Financial –  Space  Steep value curve of electronics  Any process needed to be cost effective Environmental & Safety  Compliance – RCRA, Universal Waste (CA and Federal), OSHA Due diligence visits and systems verification – more later  Stewardship – Waste minimization hierarchy  Social Justice – overseas recycling concerns Operational  Organizational and Patient Confidentiality  HIPAA Privacy and Security requirements Reporting and documentation are key to the minimization of all three risks.

5 Environmental Stewardship Criteria Waste Minimization Hierarchy – also happened to be the best way to make the process cost effective – Redeploy, Resale, Recycle Pollution Prevention – toxic and other hazardous components – land, air, water Social Justice – Domestic recycling due to safety and environmental concerns

6 Environmental and Safety Compliance Pre Visit Request for Information*  CAPABILITY AND CAPACITY  SUBCONTRACTOR RELATIONSHIPS Vendor’s due diligence of subs  CLIENT BASE; COMMUNITY/LABOR RELATIONS  OPERATIONS AND CONTROLS SOP’s, Policies Training Manuals  COMPLIANCE AND VIOLATIONS HISTORY Local, State and Federal Agencies Contamination and Clean Up actions  INSURANCE Worker’s Comp, Employers Liability, General Liability, Auto Liability and Pollution Liability  FINANCIAL 10K’s, Annual Reports, Audited Financials Dun & Bradstreet rating, Market Share, Litigation Site Visit*  EMPLOYEE EXPOSURE CONTROLS Accidents spills Medical surveillance  OPERATIONS AND PROCESSES VERIFICATION Process Diagram – Polices and Procedures Fire Dept. Floor Plan  TREATMENT, STORAGE AND DISPOSAL PRACTICES  RECORDKEEPING AND REPORTING FUNCTIONS Employee Training Permits - Haz Waste, Waste water discharges, POTW, Air, Underground Injection, Transportation, TSCA, UST Filings, Water diversion, other  VIOLATIONS/COMPLIANCE ISSUES Check for closure *Summary of regulatory and environmental stewardship criteria addressed through RFI’s and site visits. Not comprehensive criteria.

7 Vendor Selection Process Developed an RFP with Kaiser Permanente requirements, researched possible vendors and did pilot sites visits. Selected the best based on their ability to deliver services (logistics, data cleaning, reporting etc.) at an affordable price. NEH&S conducted due diligence of owned/leased transfer stations, transporters and recycling subcontractors of the selected vendor.

8 Vendor Solution - Redemtech 3 Immutable Laws of Technology Recycling  Best use is highest use Redeployment  Resale  Donation  Parts Recovery  Recycling  Everything is hazardous Documentation for all processes  Risk trumps cost Promotes IT asset budgeting with a long view

9 What’s in a PC system? Refer to handout: “Component Materials – cpu’s monitors and printers”

10 Audit Activity Summary* CategoryUnits Total Audits675 Total “Assets” Redeployed5,655 Total “Assets” Recycled62,091 Total “Assets” Remarketed40,445 Total “Assets” Processed108,191 July 18, 2001 – March 31, 2004 *Sample report.

11 Breakout By “Type” of Asset* Equipment TypeUnits Recycled Units Remarketed Units Re- deployed Total Monitor18,2835,0162,78226,081 CPU7,56027,4551,81436,829 Hard Drives8,0652,91010,975 Printers6,2391,6397,878 Misc21,0262, ,299 Peripheral/Parts Bulk8971,1841,0143,095 Total62,09140,4455,655108,191 Lifetime: July 18, 2001 – March 31, 2004 *Sample report.

12 % Working Assets by Category* CategoryUnitsWorking % Bulk3,095n/a CPU36,82964% Hard Drives10,97520% Misc23,299n/a Monitors26,08129% Peripherals342n/a Printers7,87865% As of March 31, 2004 *Sample report.

13 Summary of Accomplishments Persuaded Redemtech to sign the Silicon Valley Toxic Coalition’s Electronic Recycler’s Pledge of True Stewardship. Participated in a Computerworld Magazine article highlighting the steps taken by KP-IT to put this program in place. Started push to redeploy a larger share of the IT Equipment.

14 The End Questions/Comments Toxic Legacy - Computerworld article  rdware/story/0,10801,89552,00.html?nas=AM Contact:  Lynn Garske, Kaiser Permanente Office: