SUBJECT: AWARD OF CONSTRUCTION AND DEMOLITION RECYCLING INFRASTUCTURE GRANTS FOR FY 2000 - 2001 AND APPROVAL OF GRANT AGREEMENTS WITH MATERIAL RECOVERY, LLC, ZANKER MATERIALS PROCESSING FACILITY, INC., WASTE MANAGEMENT, INC. AND JONNA CORPORATION DBA PREMIER RECYCLING
Approve grant agreements with the
following businesses for constructing additional construction and demolition
(C&D) recycling infrastructure for the period July 1, 2001 to June 30,
2003, in the amount not to exceed $500,000:
1) Material
Recovery, LLC, for the construction of a carpet recycling system, in an amount
not to exceed $200,000.
2) Zanker Road
Resource Management, Ltd., for the purchase of an organics removal system for
recycled roadbase, in an amount not to exceed $129,000.
3) Waste
Management, Inc., for the construction of a roofing waste recycling system, in
an amount not to exceed $100,000.
4) Jonna
Corporation, d.b.a. Premier Recycling, for the purchase of a wood waste
recycling system, in an amount not to exceed $71,000.
BACKGROUND
The
Construction and Demolition (C&D) Recycling Infrastructure Grant Program
has been created to provide an incentive to local area recyclers to establish
an adequate infrastructure for diverting C&D debris from disposal at
landfills. To ensure maximum diversion,
the City has commenced the Construction and Demolition Diversion Deposit
Program (CDDD). The CDDD program
establishes a deposit collection process on construction and demolition
projects to provide an incentive for C&D waste diversion.
During FY 1999
– 2000, the City awarded the first round of grant funding totaling
$250,000. When the projects funded by
this first cycle are fully implemented later this year, it is anticipated they
will divert as much as 55,000 tons at an average cost of $4.54/ton. This average per ton cost makes the C&D
Recycling Infrastructure Grant Program one of the most cost-effective solid
waste diversion programs administered by the City.
On December 8,
2000, the City issued a second round request for proposals for the C&D
Recycling Infrastructure Grant Program.
The City solicited proposals from all interested businesses wishing to
compete for $500,000 in funding to develop additional C&D recovery
operations in San Jose. On February 2, 2001, the City received eight proposals
for funding. Staff then selected four
proposals for full or partial funding.
ANALYSIS
From the first
grant cycle to the second, the term of the agreements was changed from one year
to two years to provide a more realistic timeline for implementation. Feedback received from solid waste companies
in the area informed staff that 12 months was too short a period of time to
permit, purchase equipment, and construct the large facilities necessary for
recycling construction & demolition debris.
An objective
scoring criteria was used to evaluate the proposals. The rating panel was comprised of City staff, a C&D expert
from the Alameda County Waste Management Authority and the City’s C&D
recycling consultant, Environmental Planning Consultants, Inc. The selection criteria took into account
each proposer’s objectives and implementation, cost effectiveness, and the
qualifications of the proposer. Based
on these criteria, the Administration recommends approval of grant funding for
the following projects.
Material
Recovery, LLC ($200,000 award)
This project
will construct a carpet recycling operation that will recover at least 6,000
tons per year of discarded carpeting that would otherwise be landfilled and will
be located at the Newby Island Landfill.
The facility will receive, process and consolidate carpet waste that
will be transported to either shipping ports for sale to overseas markets or
manufacturing plants in the eastern United States.
Zanker Materials
Processing Facility ($129,000 award)
Located on Zanker Road, this project
will install a residual screening system.
The screening system makes it possible for Zanker to manufacture a
variety of higher value end-uses, eliminating the use of these materials as
alternate daily cover at landfills.
These higher value end-uses include concrete for road construction, wood
waste for biomass fuel and soil amendments.
This system is expected to divert over 17,500 tons per year.
Waste Management, Inc. ($100,000 award)
Located on Leo Avenue, this project
would construct a building to house equipment that will separate shake shingles
and wood waste from other types of roofing waste for recycling. This project will process 17,050 tons per
year that are currently being used as alternate daily cover and divert them to
higher value end-uses. These higher
value end-uses include recycling into medium density fiberboard and biomass
fuel.
Jonna Corporation, d.b.a. Premier
Recycling ($71,000 award)
Also located on Leo Avenue, this
project will purchase equipment to expand an existing wood waste recycling
system. This new system will allow
Premier Recycling to recycle an additional 15,500 tons of materials annually. These materials will be recycled into medium
density fiberboard and biomass fuel and soil amendments.
The grant awards to all of these
businesses are contingent upon the grantees acquiring all necessary permits to
implement the projects. All of the
projects are located on parcels zoned appropriately for recycling activities.
AB 939 requires the City to increase
the amount of materials diverted from the landfill. This diversion is measured by weight. Due to their density, C&D materials are the heaviest portions
of the City’s waste stream. As a
consequence, relatively small volumes of C&D materials will yield large
amounts of diversion as measured by weight.
The Construction and Demolition
Recycling Infrastructure Grants for FY 2000-2001 are expected to divert over
60,000 tons per year at a cost to the City of $8.85 per ton. This very low cost per ton of diversion
makes this grant cycle one of the most cost-effective diversion programs the
City administers. Although some of this
material is currently counted as diversion because it is used as landfill cover
material, most is not. If only half of
the targeted amount is counted as new diversion, the City’s diversion rate
would increase by 2-4%.
PUBLIC OUTREACH
The Construction & Demolition Recycling Infrastructure Grant request for proposals was directly mailed to 55 interested businesses in the Bay Area. In addition, an announcement of grant funding was posted on the Environmental Services Department’s web site and announced on the California Integrated Waste Management Board’s internet mailing list. ESD staff conducted two grant writer’s workshops on December 20, 2000 and January 4, 2001. At these workshops, proposers were given guidance on how to complete the grant application and strategies for preparing successful proposals.
This memorandum has been coordinated with the City Attorney’s Office, the Department of Planning, Building, and Code Enforcement, and the Manager’s Budget Office.
COST IMPLICATIONS
The grantees will be awarded a total of
$500,000 from the IWM Special Fund (Fund 423).
Existing funds are available for this purpose. No appropriation action is required.
Fund: Integrated
Waste Management – (423)
Amount: $500,000
Budget Document: 2000-2001 Adopted Operating Budget
Page 481
CARL
W. MOSHER
Director,
Environmental Services Department