1. City of Loveland Solid Waste Division Diversion Versus Disposal: Determining the Costs Diversion Versus Disposal: Determining the Costs

2. Conventional Industry Assumptions Landfill space is abundant and inexpensive in Colorado. Landfill space is abundant and inexpensive in Colorado. Recycling markets are far away. Recycling markets are far away. Many smaller communities don’t have access to facilities to sort and process recyclables for market. Many smaller communities don’t have access to facilities to sort and process recyclables for market. Diversion, while it may be a good idea, is too expensive relative to cheap disposal. Diversion, while it may be a good idea, is too expensive relative to cheap disposal. No federal or state mandates to divert materials from landfill disposal. No federal or state mandates to divert materials from landfill disposal.

3. Community and Program Information Loveland population: 60,000 Loveland population: 60,000 Solid Waste Division operates as an enterprise fund in an open, competitive market with private waste haulers. Solid Waste Division operates as an enterprise fund in an open, competitive market with private waste haulers. City has approximately 96% market share. City has approximately 96% market share. Households served: 22,000 single-family, duplex, and triplex. Households served: 22,000 single-family, duplex, and triplex.

4. Historical Perspective 1992: flat monthly fee of $5.75 for up to ten bags collected weekly. 1992: flat monthly fee of $5.75 for up to ten bags collected weekly. No incentive for waste reduction/recycling. No incentive for waste reduction/recycling. Worker injuries from lifting heavy bags of grass. Worker injuries from lifting heavy bags of grass. Increased worker compensation costs. Increased worker compensation costs. Community interest in recycling. Community interest in recycling.

5. 1993: New Program Implemented Base rate currently $5.25/month. Base rate currently $5.25/month. Volume-based, “pay-as-you-throw” rates for refuse. Volume-based, “pay-as-you-throw” rates for refuse. Curbside and drop-off recycling and yard waste composting. Curbside and drop-off recycling and yard waste composting.

6. PAYT Options City trash stamp: $1.00 for 32-gallons. City trash stamp: $1.00 for 32-gallons.

7. PAYT Options Trash carts: Trash carts: 32-G $5.00/month. 64-G $10.00/month 96-G $15.00/month Carts used by about 70% of City customers. Carts used by about 70% of City customers.

8. Program Compatibility with Collection Equipment Residential front loaders: manual or automated collection. Residential front loaders: manual or automated collection.

9. Recycling Services Curbside collection: Glass bottles and jars, metal cans and plastic bottles in green bin; mixed paper in blue bin. Curbside collection: Glass bottles and jars, metal cans and plastic bottles in green bin; mixed paper in blue bin. Drop-off: all curbside materials, plus scrap metal, appliances, batteries, tires, TVs and motor/cooking oil. Drop-off: all curbside materials, plus scrap metal, appliances, batteries, tires, TVs and motor/cooking oil.

10. Yard Waste Composting Services Curbside pickup: 96-gallon cart provided for weekly collection April through November for $6.00/month. Curbside pickup: 96-gallon cart provided for weekly collection April through November for $6.00/month.

11. Yard Waste Composting Services Free drop-off for Loveland residents. Free drop-off for Loveland residents. Materials accepted: branches, leaves, grass clippings, garden trimmings and lumber. Materials accepted: branches, leaves, grass clippings, garden trimmings and lumber. A-1 Organics produces high-quality compost for wholesale. A-1 Organics produces high-quality compost for wholesale.

12. The Results Residential diversion rate has exceeded 50% annually since ’93. Residential diversion rate has exceeded 50% annually since ’93. Average weekly trash setouts decreased from three to one 32-gallon bag. Average weekly trash setouts decreased from three to one 32-gallon bag. Workers are staying healthy since yard waste (and increasingly refuse) containerized. Workers are staying healthy since yard waste (and increasingly refuse) containerized. Customers are very happy with services. Customers are very happy with services.

13. Determining Costs Since more than one-half of residential waste stream is diverted from landfill disposal, is it cheaper or most expensive than disposal? Since more than one-half of residential waste stream is diverted from landfill disposal, is it cheaper or most expensive than disposal? How do we determine costs per ton for disposal versus diversion? How do we determine costs per ton for disposal versus diversion?

14. Cost Methodology Each activity area (refuse, recycling and yard waste) has its own assigned personnel and equipment. Each activity area (refuse, recycling and yard waste) has its own assigned personnel and equipment. Costs specific to an activity are charged solely to that activity. Costs specific to an activity are charged solely to that activity. Across the board expenses (work clothing, printing, postage, etc.) are allocated among the three activities, based on the allocation of labor. Across the board expenses (work clothing, printing, postage, etc.) are allocated among the three activities, based on the allocation of labor. Costs are inclusive: labor, benefits, supplies, services, equipment, transfers, PILT and capital. Costs are inclusive: labor, benefits, supplies, services, equipment, transfers, PILT and capital. Refuse includes landfill disposal fees, while income from sale of recyclables is credited against recycling expenses. Refuse includes landfill disposal fees, while income from sale of recyclables is credited against recycling expenses.

15. 2005 Data Disposal Expenses: $1,749,624 Disposal Expenses: $1,749,624 Disposal Tons: 16,339 Disposal Tons: 16,339 Cost Per Ton: $107 Cost Per Ton: $107 Diversion Expenses: $1,489,318 Diversion Expenses: $1,489,318 Diversion Tons: 20,756 Diversion Tons: 20,756 Cost Per Ton: $72 Cost Per Ton: $72

16. The Bottom Line In 2005, diversion was $35 per ton cheaper than disposal. In 2005, diversion was $35 per ton cheaper than disposal.

17. Key Factors Pay-As-You-Throw rates encourage a high level of waste reduction and recycling. Pay-As-You-Throw rates encourage a high level of waste reduction and recycling. As diversion increases, the cost per ton decreases. As diversion increases, the cost per ton decreases. Aggressive recycling and composting efforts pay big dividends. Aggressive recycling and composting efforts pay big dividends. Yard waste makes up two-thirds of all diversion tons – the low-hanging fruit. Yard waste makes up two-thirds of all diversion tons – the low-hanging fruit.

18. New Initiatives Automation of recycling and single-stream, fully-commingled cart-based collection: 2009. Automation of recycling and single-stream, fully-commingled cart-based collection: 2009. Automation of refuse collection: 2010. Automation of refuse collection: 2010. New fleet and five-year replacement schedule in future. New fleet and five-year replacement schedule in future. Add new recyclables and compostables, when feasible: aseptic boxes, textiles, other plastics, food waste, etc. Add new recyclables and compostables, when feasible: aseptic boxes, textiles, other plastics, food waste, etc.

19. Summary Plan for high levels of diversion. Plan for high levels of diversion. Create incentives for residents to recycle: PAYT. Create incentives for residents to recycle: PAYT. Make waste diversion and recycling convenient. Make waste diversion and recycling convenient. Provide drop-off options, especially for yard debris: These are cheaper per ton than curbside. Provide drop-off options, especially for yard debris: These are cheaper per ton than curbside. Understand costs and how they are allocated. Understand costs and how they are allocated. Waste diversion does make economic sense for Colorado. Waste diversion does make economic sense for Colorado.