PowerPoint Presentation

Recycling Update
June 8th, 2021

2
Introduction
• Jan. 14, 2020 Council Workshop – “Recycling 
Program Update” presentation
• Council request for survey to determine citizen’s 
interest in recycling
• Recycling Program & recommendations
and potential rate impacts

Then
Now
Effects
Newsprint Tonnage down 75%       
Plastics  - lighter weight (thinner)
- many new types
- most are not economically recyclable
Water Bottles (now 2x as light) 
Trends: Then (2000) vs. Now (2021)

Changing Market 
Effects
MRF Cardboard Tonnage down 40%       
Aluminum Cans Relatively Constant 
(but small component)
Trends: Then (2000) vs. Now (2021)

Recycling  Costs
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2014
Costs lower due 
to inbound 
material being 
cleaner and 
heavier
Low residual 
averages (28%) 
Commodity 
values strong, 
due to supply & 
demand and 
cleaner material
Collection costs 
seeing 
inflationary level 
increases
Revenue/Exp.
($110/Ton)
($20/Ton)
$190/Ton
($229/Ton)
2020
Dramatically 
higher costs 
from  labor, and 
technology
Residual average 
up to 38% 
requiring more 
transport and 
disposal
Average 
values down 
significantly
Costs higher 
from due to 
materials, 
labor, fuel and 
technology
Revenue/Exp
($122/Ton)
($28/Ton)
$80/Ton
($301/Ton)
PROCESSING
COMMODITY
RESIDUAL
COLLECTION

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• Market Volatility
•Tonnage of marketable material down
•Volatile Commodity pricing
–Blended rate down $220/ton in 2011 
- $80/ton in 2020​
•Market Competition
• Recycling costs (increased labor, sorting, 
collection, and repair costs)
• Revenues not covering expenses​
Recycling Challenges

Material Recovery Facility 
Operational  Challenges
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• Currently not operating due to equipment breakdowns 
and fire
• No significant upgrades to Material Recovery Facility 
since 2000
• Increased residual percentage (more landfilled)
• Cannot handle glass (landfilled)
• Small paper/cardboard cannot be captured (landfilled)

Review of Recycling Program
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•Council request for resident’s survey
•Council request for in depth operational 
analysis/review
•Recommendations

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Recycling Survey
• Week of Oct. 19 – Postcard mailed to 54,961 active accounts
• “Residential Trash and Recycling Survey” open to customers         
Oct.19 to Nov. 16, 2020.
• Survey could be taken online or by calling Customer Service

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Survey Results
• 7,267 surveys submitted – 13% of households eligible for 
collection services
• Exceptional Response
• Statistically valid
• Some of the more significant survey findings include . . .

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Survey Results
84% of respondents indicated that recycling is “Very important” 
or “Important” to their household.

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Survey Results
62% of respondents indicated their household puts recycling out 
weekly, and 27% indicated every other week.

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Survey Results
90% of respondents are willing to pay more for 
recycling collection.

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Survey Results
90% of respondents are willing to pay more for recycling 
collection.

15
Survey Results
75% of survey respondents are willing to reduce or eliminate     
free disposal at the Glendale landfill.
21%
25%
54%
Q8(b.)  Would you support reducing or eliminating “Free Disposal” 
at the landfill in order to minimize increases in your monthly 
service charge?
Reduce to 6 times per year
No change to monthly disposal
Eliminate free disposal

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Survey Results
97% of respondents rated their satisfaction with residential 
collection services as either “Very Good” or “Good.”

Recycling Economics

Recycling – Regional Markets
Economics of Recycling
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Source: RecyclingMarkets.net information for Market Region 2
Mixed Paper ($/ton)

Recycling – Regional Markets
Economics of Recycling
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Source: RecyclingMarkets.net information for Market Region 2
Plastics ($/ton)
HDPE
PET
3 -7’s

Recycling – Regional Markets
Economics of Recycling
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Source: RecyclingMarkets.net information for Market Region 2
 $-
 $200.00
 $400.00
 $600.00
 $800.00
 $1,000.00
 $1,200.00
 $1,400.00
2016
2017
2018
2019
2020
Aluminum
Aluminum
Aluminum ($/ton)

Recycling – Cost to Process
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•Labor Intensive 
Minimum Wage in Arizona

Recycling – Cost to Collect
22
•Increases in benefits & wages; landfill 
fees; and equipment costs
Cost per residential household per month

How are Others Responding?
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•Arizona:
–Surprise stopped August 2019
–Sierra Vista, Casa Grande ended programs July 2019
–Tucson reduced collection frequency to every other 
week
•Nationally:
–Similar as in Arizona
–Added monthly “surcharge” for recycling

Recycling Options – MRF 
Operations
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• Option #1 - Rebuild MRF - $18M capital estimate 
($2.80/month for 10-years – capital recovery)
• Option #2 - Outsource MRF Processing Services 
Request Statements of Qualifications for processing options
Costs (net savings to the City) market driven
Worst case scenario (zero value of commodities) – unlikely
Conservative estimate shows $350,000 annual savings 
compared to in-house operations

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Summary
•Residents overwhelmingly support the 
continuation of the recycling program
•Residents willing to pay more to continue 
the program

Consensus
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Staff Recommends:
- Continue recycling
- Outsource MRF processing services
Benefits:  - Maintain rate structure
- Add glass to recycle program
- Adjust number of “free loads” to 6 per year
Benefits:  - Customer Service / Wait Times
- Safety

Strategies to Minimize Future Rate 
Increases
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•Consider biweekly collection of recyclables
Collection costs are increasing
Minimize any future rate increases

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Questions?
Thank you!