Contract Extension for Operation of the
Recycling Center
PUBLIC WORKS DEPARTMENT
April 30, 2024
BACKGROUND
• Recycling Center Managed by Allan Company
since 2006, extended 5 times.
• Last contract extension (March 2022):
• City initially received $26/ton (revenues)
but due to market disruptions since 2021,
continued operation of the operations
required expenditures from the City of
$54/ton
• Current extension ends March 31, 2025
• Focus shifted from issuing RFP to operate the
Center to developing a long-term solution
through a master planning effort
RECYCLING CENTER MASTER PLAN
• City issued an RFP (2023) to include:
o Evaluation of the present operation
o Phased plan for facility improvements
o Regional alternatives for managing materials
o Three alternatives to continued operations
• 1-year extension (to March 2026) allows time for the city to consider the Master Plan recommendations when engaging
with an RFP process for future operations
STATUS OF MASTER PLAN
TASK 1 Review and Analyze Data (Completed January – February 2024) TASK 2 Site Analysis and Existing Conditions (Draft Report received March 29, 2024):
a) Effective recyclables sorting with minimal contamination b) No immediate need for additional automated equipment c) Short-term improvement: Connect stormwater diversion to sanitary sewer d) Project will assess city's waste management options over 20 years TASK 3 Forecasting Waste Stream (April 2024)
Evaluation of regulatory factors (stormwater, AB 341, AB 1826, SB 1383, etc.) TASK 4 Regional Material Management Alternatives (May 2024) TASK 5 Drafting Master Plan (October 24, 2024)
ANALYSIS
Contract extension to include:
• Cost of processing recyclables increase from $54/ton to $90/per ton to March 31, 2026. Cost Factors/impacts:
◦ Decreased tonnage (recyclables are lighter)
◦ Amount of residuals increased (tons to landfill)
◦ Minimum wage increase
◦ Significant fuel increases
◦ CPI increases for equipment & supplies
• Shifting responsibility of maintenance of office trailer from City to Allan Company.
• Obtaining written City approval prior to allowing other haulers to use the facility.
#MyGlendale
QUESTIONS:
Q. Are recyclables exported or landfilled anyways?
A. Materials are source separated at the facility which produced a very low rate of contamination.
Recycling Centers are required to provide quarterly destination documentation.
Allan Company markets
Baled paper and cardboard Thailand, South Korea, Vietnam Aluminum cans Kentucky
Ferrous & non-ferrous, glass Local markets in Los Angeles County Plastics Local markets in Los Angeles County
Plastics Local markets in San Bernardino County
Plastics Local markets in San Diego County
QUESTIONS:
Q. What regulatory changes should we be aware of?
AB-881 (2021): Recycling Plastic Waste Exports
Plastic that is exported does not count as being recycled Recycling Centers must report to CalRecycle the destination of all marketed materials SB 343 (2021): Accurate Recycling Labels
Prohibits use of the chasing arrows symbol on products & packaging unless certain percentages are met Completed 129-page Material Characterization Study (December 2023) identifying percentage of materials in the waste stream.
SB 54 (2022): Plastic Pollution Prevention & Packaging
For materials to be considered recyclable, the material must be considered available by 60% of the population of the State and be recovered by at least 60% of recycling centers in California.