1. California Roundtable May 23, 2005 Sacramento, California Donna Perala City of San Jose Single Stream & Beyond

2. 11th Largest City in US 945,000 Residents 200,000 SFD Households 3,200 MFD Complexes 90,000 MFD Households Citywide Diversion (preliminary) for 2003: 59% A Little About San Jose...

3. Residential Service Districts Norcal of San Jose (80% of City) GreenTeam of San Jose (20% of City) District A District C District B Yard Trimmings Collection Green Waste Recovery - A B Norcal - C Multi-Family City Wide Collection Green Team of San Jose

4. San Jose Materials Glass Mixed paper Newspaper Mixed plastics Metal cans Scrap metal Cardboard Polystyrene Plastic bags Aseptic packaging Textiles

5. Service is meeting performance standards –Missed collections at minimal levels –Routes completed by required times –Other services completed on time Haulers have identified problems with contamination in some areas of the City –Pay-as-you-throw system can encourage residents to put extra garbage in recycling cart –96-gallon recycling cart may provide contamination opportunities This Past Year...

6. 4-Sort System vs. Single Stream Comparisons (SFD Tons) 4 - Sort StartupYear 2 % Change FY01-02 FY02-03FY03-04FY01-02 to 03-04 Garbage 176,659167,558162,939-7.8% Recycling 86,172110,915107,81525.1% Residue 6,74933,26216,614146.2% SFD Diversion 30.2%27.9%33.7%11.5% Total Diversion w/ MFD & YT45.0%43.9%49.5%10.0%

7. San Jose’s Single Stream Challenges Trade-off for collection efficiencies and convenience = higher contamination Some Rejected Paper Shipments Highest and Best Use goals compromised

8. San Jose’s Single Stream Challenges Outreach and education to targeted audiences more critical than ever Business model challenges & opportunities

9. Business Model Case Studies Business Model #1 Collection contractor owns and operates MRF Business Model #2 Collection contractor subcontracts processing

10. Business Model #1 Owner Operated Contractor has incentive to maximize diversion because: Gets contract extension ($$$) if meets 35% diversion requirement Receives bonus payment if achieves over 40% diversion Stays within Permit and avoids solid waste fees if under 10% residual

11. Business Model #1 (cont’d.) Owner Operated Contractor pays $35 / ton to dispose of residual  Contractor motivated to invest in new processing technology and even pay to divert material  03-04 Average Residue: 7.6%  03-04 SFD Diversion:41.6%

12. Business Model #1 (cont’d.) Owner Operated Innovations include: MFD Compostable Pilot introduced in 2003 to meet 35% MFD diversion requirement Installed optical plastic sorter last year Plans to install optical paper sorters to clean up loads Pays to recycle hard-to-market commodities

13. Business Model #2 Processing Subcontracted Subcontractor has minimal incentive to maximize diversion because: No direct relationship with the City, so not involved in many contract issues Hauler, not processor, would receive bonus payment if Sub achieves over 40% diversion Sub now has Solid Waste Facility Permit so no LEA problems if over 10% residual

14. Business Model #2 (cont.d) Processing Subcontracted Subcontractor does NOT pay for disposal of residual  Subcontractor has minimal incentive to invest in new processing technology or look for innovative ways to divert material  03-04 Average Residue:17.3%  03-04 Diversion:31.6%

15. Solutions tried so far…. Outreach Over $2M spent on transition outreach Over $350,000 / year spent on on-going outreach Annual hauler outreach requirements Door-to-door outreach in 2003, visiting 2,000 households in targeted areas

16. Solutions tried so far…. Enforcement An average of 360 Non-Collection Notices per month are issued by haulers Cart upsize policy in place, but emphasizing outreach and education first

17. What Have We Learned? Contract incentives help make Single Stream work -take great care when reviewing terms of any subcontracts - take great care to maintain control of materials stream

18. What Have We Learned? Outreach and education play a vital role in transitioning to Single Stream and beyond Consider offering a 64-gallon recycling cart as default size rather than a 96!

19. Is It Worth It? All-in-all ….. Single Stream is still worth the trade-offs Fewer worker injuries; reduced labor costs Participation and diversion have increased Tonnages of recyclable materials collected have increased Updated technology and on-going education will help address quality issues

21. Total Tons Recycled – 251,511

22. Residential Diversion - 49.5%