HomeMy WebLinkAboutItem 14 Sanipac Rate Increase AGENDA ITEM SUMMARY Meeting Date: 5/21/2018
Meeting Type: Regular Meeting
Staff Contact/Dept.: Neil Obringer
Staff Phone No: 736-1032
Estimated Time: 30 min
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE: SANIPAC RATE INCREASE
ACTION
REQUESTED:
Conduct a public hearing and adopt/not adopt the following resolution:
A RESOLUTION AMENDING THE MASTER SCHEDULE OF
MISCELLANEOUS FEES AND CHARGES, RATES, PERMITS AND
LICENSES TO AMEND THE MAXIMUM RATES FOR THE COLLECTION OF
GARBAGE AND REFUSE
ISSUE
STATEMENT:
Sanipac, the City’s franchise hauler for solid waste, has requested a rate increase
effective July 1, 2018 to accommodate the following; 1.) increases in operating
costs and lost material sales revenue due to the loss of foreign buyers of American
recyclables, 2.) standard increases in operating costs, and 3.) an increase in Lane
County’s tipping fee at the landfill.
ATTACHMENTS: ATT1: Proposed Fee Resolution with Exhibit A
ATT2: Sanipac Rate Increase Letter
ATT3: Sanipac Work Session Response with Exhibits
Exhibit A – What’s the Future of Recycling
Exhibit B – What’s Happening with Recycling
Exhibit C – Common Recycling Contaminants Flyer
Exhibit D – Sanipac Recycle Flyer 2018
Exhibit E – 2018 Summer Residential Newsletter
Exhibit F – Sanipac Register Guard Ad
Exhibit G – EcoSort Recycling Depot
Exhibit H – Sanipac recycling commercial (video)
DISCUSSION/
FINANCIAL
IMPACT:
Under section 16.1 of the City’s Franchise Ordinance, Sanipac can request rate
adjustments prior to June 30th of each year.
This item is a follow-up to a May 14, 2018 work session where Council discussed
the rate increase request (Attachment 2) from Sanipac and provided direction to
staff.
Sanipac is requesting a 1.1% increase for additional costs associated with the
continued world recycling crisis, a 4.2% CPI adjustment (based on the 2017 annual
Portland CPI) and a pass through disposal increase from Lane County of 2.6% at
the landfill. The 1.1% recycling increase is applied to the full rate, the 4.2% CPI
increase is applied to hauling costs only, and the 2.6% landfill increase is applied to
user fee (disposal) costs only. The end result of these changes is an approximately
5% overall increase in the total rates for the collection of garbage and refuse.
In the most commonly used 35 gallon residential container this would result in a
$0.90 increase in the monthly rate from $18.00 to $18.90/month.
Included as ATT3 is a letter from Sanipac in addition to a number of supporting
materials in response to a request from Council for information regarding the steps
they have taken and plan to take to mitigate rate impacts and educate the public in
response to the recycling crisis.
PAGE 1 of 2
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION AMENDING THE MASTER SCHEDULE OF MISCELLANEOUS FEES AND
CHARGES, RATES, PERMITS AND LICENSES TO AMEND THE MAXIMUM RATES FOR THE COLLECTION OF GARBAGE AND REFUSE
WHEREAS, Springfield Municipal Code 4.408(2) provides that the maximum rates for the collection of
garbage and refuse for a month shall be set by resolution of the Council;
WHEREAS, Sanipac, Inc. is the collector of garbage and refuse as defined by Springfield Municipal
Code Section 4.400;
WHEREAS, under Section 16 of Ordinance 6367 granting Sanipac, Inc. an exclusive franchise in the
city, the City may consider all relevant factors in setting the maximum rates for the collection of
garbage and refuse;
WHEREAS, the present rate for the collection of garbage and refuse consists of two parts: (1) the rate
that accounts for the cost of collection of garbage and refuse by the collector of garbage (the “collection rate”), and (2) the rate that accounts for the fees imposed by Lane County for the disposal
of garbage and refuse collected by the collector of garbage (the “disposal rate”);
WHEREAS, Sanipac, Inc. previously requested a supplemental rate increase of 5.9% of the total rate
due to increased costs associated with the world recycling crisis, and the Council approved that
increase effective on January 1, 2018;
WHEREAS, Sanipac, Inc. has advised the City that additional decline in the world recycling market has
resulted in additional costs not recouped under the prior 5.9% rate increase;
WHEREAS, the Consumer Price Index for Portland, Oregon increased by an average of 4.2% from
2016 to 2017;
WHEREAS, Sanipac, Inc. has advised the City that the Lane County Board of County Commissioners
has increased the fee for disposal of garbage by 2.6%, effective July 1, 2018;
WHEREAS, Sanipac, Inc., is requesting a 1.1% increase to the total rate for additional costs
associated with the world recycling crisis, a 4.2% CPI adjustment applied to the collection rate, and
2.6% landfill increase applied to the disposal rate, resulting in approximately a 5% overall increase in
the total rates for the collection of garbage and refuse;
WHEREAS, the collector of garbage has requested that the collection rate be adjusted to reflect these
increases in costs as of July 1, 2018;
WHEREAS, City staff have reviewed the request of the collector of garbage, and the additional
information and material provided in support of the request;
WHEREAS, City staff, following such review have recommended that the adjustment of the maximum
rates for the collection of garbage and refuse be approved as requested;
Attachment 1, Page 1 of 9
PAGE 2 of 2
WHEREAS, the Council has considered the request of the collector of garbage, the material and
information submitted in support of such request, and the analysis and recommendations of the staff,
and is fully informed as to the request and the circumstances;
WHEREAS, the opportunity for public comment at a public hearing has been provided prior to the
adoption of this Resolution; and
WHEREAS, except for the increase in the Garbage and Refuse rates as specified herein, the fees set
forth in the “Master Schedule of Miscellaneous Fees and Charges, Rates, Permits and Licenses” remain
unchanged and shall continue in full force and effect.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD:
Section 1: The Garbage and Refuse rates as set forth in the "Master Schedule of Miscellaneous
Fees and Charges, Rates, Permits, and Licenses" are amended as specified in the Schedule of Garbage
Rates attached hereto as Exhibit A and incorporated by reference herein.
Section 2: Except as specifically amended by this Resolution, the "Master Schedule of
Miscellaneous Fees and Charges, Rates, Permits, and Licenses" shall remain unchanged and in full
force and effect.
Section 3: Future Resolutions of the Common Council may be adopted to amend, add, or
delete any rate, permit fee, license fee, or other fee or charge as may be necessary to compensate the
City for providing the particular services set forth in the Master Schedule.
Section 4: In the event any particular rate, permit fee, license fee, or other fee or charge set
forth in the Master Schedule, Schedule of Garbage Rates, shall be held invalid by operation of law or
any court of competent jurisdiction or the enforcement of any fee restrained by such court pending the
final determination as to its validity, the remainder of the rates, permit fees, license fees, fees and
charges specified in the Master Schedule, Schedule of Garbage Rates, Exhibit A, shall not be affected thereby and shall remain in full force and effect.
Section 5: This Resolution will take effect on July 1, 2018.
ADOPTED by the Common Council of the City of Springfield this ___ day of _________, 2018,
by a vote of _____ for and ____ against.
_______________________
Mayor ATTEST:
__________________________
City Recorder
Attachment 1, Page 2 of 9
Other Rates
Solid Waste
(SMC 4.408, Resolution _________)(1) Charges for the collection of garbage and refuse as established herein shall
be payable monthly in advance. In the event that any person fails to pay the collector of garbage and refuse for the
services rendered by the collector for a period of 45 days, then the collector may prepare a statement to that
effect, and to the effect that he is terminating the service to such person and shall deliver a copy thereof to the
City manager. The City shall thereupon have the burden of seeing to it that such person for whom the service is
terminated disposes of his garbage in accordance with the terms of sections 4.400 to 4.430. The collector shall
have no duty to commence serving such person again until the collector shall have been reimbursed for the
delinquent payments.
Please refer to the following five pages for Sanipac rates effective July 1, 2018.
Exhibit A, Page 1 of 7
Attachment 1, Page 3 of 9
(07/01/2018)
21 Gallon Mini Can
Pickups
Per Week 1 Can County
User Fee Total
EOW 8.84 1.77 10.61
1 10.99 2.32 13.31
35 Gallon Can/Cart
Pickups
Per Week 1 Can County
User Fee Total 2 Cans County User
Fee Total 3 Cans County
User Fee Total
EOW 9.99 3.21 13.20
1 14.68 4.22 18.90 29.32 8.49 37.81 44.00 12.71 56.71
2 29.32 8.49 37.81 58.68 17.03 75.72 88.05 25.47 113.52
3 44.00 12.71 56.71 88.05 25.47 113.52 132.10 38.18 170.29
4 58.68 17.03 75.72 117.42 33.96 151.39 176.10 51.00 227.10
5 73.37 21.25 94.62 146.79 42.46 189.24 220.16 63.71 283.87
6 88.05 25.47 113.52 176.10 51.00 227.10 264.16 76.47 340.63
Pickups
Per Week 4 Cans County
User Fee Total 5 Cans County User
Fee Total 6 Cans County
User Fee Total
EOW
1 58.68 17.03 75.72 73.37 21.25 94.62 88.05 25.47 113.52
2 117.42 33.96 151.39 146.79 42.46 189.24 176.10 51.00 227.10
3 176.10 51.00 227.10 220.16 63.71 283.87 264.16 76.47 340.63
4 234.84 67.93 302.77 293.47 84.96 378.44 352.26 101.89 454.15
5 293.47 84.96 378.44 366.94 106.16 473.11 440.31 127.37 567.68
6 352.26 101.89 454.15 440.31 127.37 567.68 528.31 152.89 681.21
65-Gallon Cart 95-Gallon Cart
Pickups
Per Week 1 Can County
User Fee Total
Pickups
Per Week 1 Can County
User Fee Total
1 20.26 7.25 27.51 1 24.63 10.48 35.11
2 40.62 14.51 55.13 2 49.17 21.06 70.23
3 60.88 21.76 82.64 3 73.80 31.54 105.35
4 81.14 29.01 110.15 4 98.44 42.08 140.52
5 101.50 36.27 137.77 5 123.03 52.61 175.63
6 121.81 43.52 165.33 6 147.61 63.09 210.70
Premium Condo/Multi Family Housing
Cart Size 1 Can County
User Fee Total Cart Size 1 Can County
User Fee Total
35 Gal 17.63 4.49 22.12 35 Gal 12.57 4.22 16.79
65 Gal 29.98 8.04 38.02 65 Gal 18.09 7.25 25.35
95 Gal 47.09 9.89 56.97 95 Gal 22.26 10.48 32.74
SPRINGFIELD CAN/CART RATES
Exhibit A, Page 2 of 7
Attachment 1, Page 4 of 9
(07/01/2018)
Pickups Per
Week 1.0 Yard
County
User Fee Total
Pickups Per
Week 1.5 Yard
County
User Fee Total
1 80.31$ 24.82$ 105.13$ 1 115.95$ 37.23$ 153.18$
Each Additional 70.49$ 24.82$ 95.31$ Each Additional 101.54$ 37.23$ 138.77$
2 156.82$ 49.58$ 206.41$ 2 221.03$ 74.46$ 295.49$
Each Additional 136.03$ 49.58$ 185.61$ Each Additional 194.47$ 74.46$ 268.93$
3 232.97$ 74.40$ 307.37$ 3 326.58$ 111.64$ 438.22$
Each Additional 200.45$ 74.40$ 274.85$ Each Additional 301.82$ 111.64$ 413.46$
4 306.52$ 99.17$ 405.69$ 4 469.96$ 111.64$ 581.60$
Each Additional 239.32$ 99.17$ 338.48$ Each Additional 415.69$ 111.64$ 527.33$
5 383.04$ 123.98$ 507.02$ 5 575.25$ 148.88$ 724.12$
Each Additional 296.82$ 123.98$ 420.81$ Each Additional 511.26$ 148.88$ 660.14$
6 455.90$ 148.75$ 604.65$ 6 680.37$ 186.11$ 866.48$
Each Additional 354.02$ 148.75$ 502.77$ Each Additional 603.25$ 186.11$ 789.35$
7 533.00$ 173.56$ 706.56$ 7 853.04$ 148.88$ 1,001.91$
Each Additional 412.32$ 173.56$ 585.88$ Each Additional 818.41$ 148.88$ 967.28$
EOW 31.19$ 22.52$ 53.71$ EOW 44.86$ 33.41$ 78.27$
1x Per Month 14.75$ 11.08$ 25.83$ 1x Per Month 21.11$ 16.39$ 37.50$
Pickups Per
Week 2.0 Yard
County
User Fee Total
Pickups Per
Week 3.0 Yard
County
User Fee Total
1 149.06$ 49.65$ 198.70$ 1 208.83$ 74.46$ 283.29$
Each Additional 130.79$ 49.65$ 180.43$ Each Additional 183.75$ 74.46$ 258.22$
2 284.91$ 99.24$ 384.15$ 2 399.40$ 148.88$ 548.27$
Each Additional 250.70$ 99.24$ 349.94$ Each Additional 347.92$ 148.88$ 496.80$
3 420.40$ 148.89$ 569.28$ 3 583.68$ 223.34$ 807.02$
Each Additional 379.38$ 148.89$ 528.26$ Each Additional 513.78$ 223.34$ 737.12$
4 606.60$ 148.89$ 755.48$ 4 855.72$ 223.34$ 1,079.05$
Each Additional 540.60$ 148.89$ 689.49$ Each Additional 758.74$ 223.34$ 982.07$
5 742.29$ 198.48$ 940.77$ 5 1,046.23$ 297.75$ 1,343.98$
Each Additional 660.41$ 198.48$ 858.89$ Each Additional 934.31$ 297.75$ 1,232.06$
6 877.94$ 248.13$ 1,126.06$ 6 1,236.42$ 372.21$ 1,608.63$
Each Additional 779.95$ 248.13$ 1,028.08$ Each Additional 1,102.81$ 372.21$ 1,475.02$
7 1,103.60$ 198.48$ 1,302.08$ 7 1,561.74$ 297.75$ 1,859.49$
Each Additional 998.75$ 198.48$ 1,197.23$ Each Additional 1,419.04$ 297.75$ 1,716.79$
EOW 50.87$ 44.20$ 95.07$ EOW 78.36$ 65.93$ 144.29$
1x Per Month 23.90$ 21.68$ 45.58$ 1x Per Month 36.84$ 32.25$ 69.09$
SPRINGFIELD CONTAINER RATES
Exhibit A, Page 3 of 7
Attachment 1, Page 5 of 9
(07/01/2018)
Pickups Per
Week 4.0 Yard
County
User Fee Total
Pickups Per
Week 5.0 Yard
County
User Fee Total
1 259.99$ 99.24$ 359.23$ 1 304.46$ 124.06$ 428.52$
Each Additional 229.74$ 99.24$ 328.98$ Each Additional 265.92$ 124.06$ 389.98$
2 498.97$ 198.48$ 697.45$ 2 585.37$ 248.12$ 833.49$
Each Additional 442.28$ 198.48$ 640.75$ Each Additional 512.36$ 248.12$ 760.48$
3 737.11$ 297.82$ 1,034.94$ 3 865.34$ 372.22$ 1,237.56$
Each Additional 653.96$ 297.82$ 951.79$ Each Additional 758.38$ 372.22$ 1,130.61$
4 1,076.56$ 297.82$ 1,374.39$ 4 1,247.39$ 372.22$ 1,619.62$
Each Additional 966.60$ 297.82$ 1,264.42$ Each Additional 1,130.99$ 372.22$ 1,503.21$
5 1,314.70$ 397.06$ 1,711.76$ 5 1,551.48$ 496.33$ 2,047.81$
Each Additional 1,189.11$ 397.06$ 1,586.17$ Each Additional 1,376.79$ 496.33$ 1,873.13$
6 1,552.99$ 496.35$ 2,049.35$ 6 1,831.60$ 620.34$ 2,451.94$
Each Additional 1,390.50$ 496.35$ 1,886.85$ Each Additional 1,622.92$ 620.34$ 2,243.26$
7 1,976.08$ 397.06$ 2,373.14$ 7 2,344.95$ 496.33$ 2,841.28$
Each Additional 1,801.12$ 397.06$ 2,198.19$ Each Additional 2,120.58$ 496.33$ 2,616.91$
EOW 95.77$ 87.34$ 183.11$ EOW 109.89$ 108.44$ 218.33$
1x Per Month 44.83$ 42.85$ 87.68$ 1x Per Month 51.30$ 53.12$ 104.42$
Pickups Per
Week 6.0 Yard
County
User Fee Total
Commercial
Container Rent All Sizes
County
User Fee Total
1 343.16$ 148.89$ 492.05$ Per Month 21.10$ -$ 21.10$
Each Additional 324.42$ 148.89$ 473.31$
2 660.45$ 297.82$ 958.28$
Each Additional 590.03$ 297.82$ 887.86$
3 977.01$ 446.71$ 1,423.72$
Each Additional 845.87$ 446.71$ 1,292.58$
4 1,445.17$ 446.71$ 1,891.88$
Each Additional 1,311.50$ 446.71$ 1,758.21$
5 1,761.93$ 595.59$ 2,357.53$
Each Additional 1,592.52$ 595.59$ 2,188.12$
6 2,078.44$ 744.48$ 2,822.92$
Each Additional 1,876.24$ 744.48$ 2,620.72$
7 2,677.56$ 595.59$ 3,273.15$
Each Additional 2,459.31$ 595.59$ 3,054.91$
EOW 121.34$ 129.27$ 250.61$
1x Per Month 56.44$ 63.30$ 119.74$
SPRINGFIELD CONTAINER RATES, CONTINUED
Exhibit A, Page 4 of 7
Attachment 1, Page 6 of 9
(07/01/2018)
Pickups
Per
Week 2.0 Yard
County User
Fee Total 3.0 Yard
County User
Fee Total
1 311.09$ 124.71$ 435.80$ 453.42$ 200.37$ 653.80$
2 578.36$ 227.93$ 806.28$ 906.95$ 400.69$ 1,307.64$
3 867.53$ 341.92$ 1,209.45$ 1,268.49$ 693.13$ 1,961.62$
4 1,156.71$ 455.86$ 1,612.57$ 1,690.63$ 924.92$ 2,615.55$
5 1,445.94$ 569.79$ 2,015.73$ 2,114.16$ 1,155.22$ 3,269.37$
6 1,735.11$ 683.73$ 2,418.85$ 2,537.09$ 1,386.26$ 3,923.35$
7 2,024.24$ 797.72$ 2,821.96$ 2,959.86$ 1,617.36$ 4,577.23$
EOW 123.43$ 82.90$ 206.33$ 215.98$ 94.04$ 310.02$
On Call 61.78$ 41.52$ 103.30$ 108.21$ 47.12$ 155.33$
Pickups
Per
Week 4.0 Yard
County User
Fee Total
1 605.95$ 267.15$ 873.10$
2 1,130.32$ 616.11$ 1,746.43$
3 1,695.48$ 924.24$ 2,619.72$
4 2,260.69$ 1,232.27$ 3,492.96$
5 2,825.80$ 1,540.40$ 4,366.20$
6 3,390.96$ 1,848.38$ 5,239.34$
7 3,956.12$ 2,156.51$ 6,112.63$
EOW 290.25$ 126.39$ 416.64$
On Call 145.10$ 63.19$ 208.29$
SPRINGFIELD COMPACTING CONTAINER RATES
Exhibit A, Page 5 of 7
Attachment 1, Page 7 of 9
(07/01/2018)
Extra or
Basic User Overflow On-Call
Container Size Charge Fee Charge Charge
1.0 Yard 14.95 11.08 26.03 26.03
1.5 Yard 21.42 16.39 37.81 37.81
2.0 Yard 24.38 21.68 46.05 46.05
3.0 Yard 37.57 32.25 69.82 69.82
4.0 Yard 45.72 42.85 88.57 88.57
5.0 Yard 52.40 53.12 105.52 105.52
6.0 Yard 57.81 63.30 121.11 121.11
Can Charges
1 Can 3.24 1.19 4.43
2 Cans 6.42 2.45 8.87
3 Cans 9.65 3.66 13.31
4 Cans 12.84 4.85 17.69
5 Cans 16.01 6.11 22.12
Major Appliances Stove - Refrigerator - Washer - Dryer - Hot Water Heater
Curbside 33.72 26.07 59.78
Backyard 45.12 26.07 71.19
Furniture Sofas - Chairs
Curbside 18.10 11.74 29.84
Backyard 29.66 11.74 41.40
Mattress & Box Spring (regardless of size)
Each piece 12.18 16.55 28.73
Brush, Boxes, Demolition
Will be charged by volume and time. Volume equated to 32 gallon cans
and time spent in loading.
Other Can Charges
Yard Waste Service EOW 5.97 0.00 5.97
Additional YW Pickup 5.97 0.00 5.97
Recycle Only Service EOW 4.61 0.00 4.61
Additional Recycle Pickup 5.97 0.00 5.97
Food Waste
32 Gal 1x per wk 15.15 0.00 15.15
64 Gal 1x per wk 22.12 0.00 22.12
1 YD 3x per wk 246.85 0.00 246.85
SPRINGFIELD EXTRA CHARGE RATES
Exhibit A, Page 6 of 7
Attachment 1, Page 8 of 9
(07/01/2018)
Drop Box Size & Description Basic Charge User Fee
20 YD 142.38 86.12$ per ton
30 YD 213.55 86.12$ per ton
40 YD 284.76 86.12$ per ton
Stationary Compactor
Charge Per Cubic Yard 7.12 86.12$ per ton
Box Delivery Fee (Any Size)27.88
Spotting Fee & Relocate Box 27.88
Demurrage Charge (Box Rental)
Beginning after the seventh day 7.18 per day
Excluding Sunday and Holidays
10 Gallon Incinerated 23.56
20 Gallon Incinerated 25.83
35 Gallon Incinerated 29.42
1 Gallon Container 9.88
SPRINGFIELD BIOMEDICAL CHARGES
SPRINGFIELD DROP BOX CHARGES
Exhibit A, Page 7 of 7
Attachment 1, Page 9 of 9
5/1/2018
Neil Obringer
225 Fifth St.
Springfield, OR 97477
RE: Request for Annual Rate Increase
Dear Neil,
Over the course of providing many years of service to the citizens of the City of Springfield, we have actively sought out cost effective
ways to provide a high level of service to our customers. We are very thankful to be a long time partner and look forward to a
continued strong working relationship. Sanipac and our team of safety driven employees are committed to “Doing Good in our
Community.” Below are a few highlights from 2017 and 2018:
• Springfield Annual Clean-Up Event (Scheduled for this Month)
• Donation of services to City facilities and Main Street cans.
• City street sweeper box donations.
• Christmas Parade Sponsor
• Leaf pickup program.
• Sponsorship to Springfield Education Foundation.
• Springfield Alley Cleanup.
• Donation of services for Lights of Liberty Event.
We are thankful to have the opportunity to give back to the community we have been blessed to serve for many years and look
forward to continue to serve the citizens of Springfield.
During our presentation on the recycle crisis and emergency price increase during the January city council work session, we promised
to provide an update on the negative impacts that the worldwide recycle crisis has caused globally and here in the City of Springfield.
Unfortunately, we must report that the crisis continues to drag on due to many factors. The Chinese government has stood firm on the
expectation of <.5% contamination on all imported commingle material which has lead to a ripple effect across the world recycle
market. The “China market” effect has led to a consistent increase in commingle processing costs from end processors who sort and
Attachment 2, Page 1 of 2
prepare this material for markets around the world. To quantify this, compared to 2017, Sanipac is expecting to pay processors an
additional $670,000 this year for processing of Springfield recyclables. We are very thankful that the council and mayor approved a
5.9% emergency rate increase in January in an effort to offset much of these escalating costs; however due to continued market
decline an additional smaller adjustment of 1.1% is needed to recoup the increased costs. We are also seeking the annual CPI increase
of 4.2% and the pass through disposal increase from Lane County of 2.6% at the landfill (Effective July 1st). All told the price
increase averages 5% across all lines of service. (The 1.1% recycling increase is applied to the full rate, 4.2% CPI increase is applied
to hauling costs only, 2.6% landfill increase is applied to user fee (disposal) costs only.) For the most common residential service
level, a 35 gallon trash picked up once per week, the rate increases $0.90/month from $18.00 to $18.90/month.
It remains unclear if the recycle markets will correct themselves in 2018 and beyond. Our intention is to work diligently to re-educate
customers to the new recycle standards that are now in place and continue to focus on cleaning up the recycle stream in any way
possible. In the January meeting we also provided data as a reference point should the City decide to landfill recycling instead of
paying the additional costs. We believe an estimated 3% price increase would be needed at this time should the City decide to go that
direction.
We look forward to walking through this request with council and answering any questions. Thank you in advance for your time and
please let us know if you need any additional information.
Respectfully Submitted,
Brian White Aaron Donley
District Manager Municipal Accounts Manager
Attachment 2, Page 2 of 2
Hello from Sanipac,
We appreciated the opportunity last night at the Council work session to discuss the continued recycling crisis and its
impact locally for Springfield.
Per Council’s request, please see the attached memos:
What’s Happening with Recycling?
What’s the Future of Recycling?
Sanipac would be happy to print out any number of these for distribution at Springfield public locations to help with
education efforts. We also have available for distribution our Sanipac Recycle Flyer and Common Recycling
Contaminants Flyer. (attached)
Other outreach efforts include:
Newsletters to all customers (see attached)
Updated information on mobile app and Sanipac Waste Wizard.
Email Blast sent out to all customers we have email addresses for.
Ads in local newspapers. (attached)
TV ads. (attached)
Since our discussion we’ve also decided to create an area at EcoSort for public collection of items that are no longer
accepted in the cart, including yogurt and dairy tubs, detergent and shampoo bottles. (See attached EcoSort Recycling
Depot – We will be making signs.) We will keep these materials and actively search for a market for them.
We also have taken into consideration the increased rates and their potential hardship on low income families in
Springfield. As Springfield Utility Board has an effective system set up with Catholic Community Services to “keep the
heat on” during the winter we would like to commit to $5,000 per year to this cause to aid in overall Springfield resident
utility costs.
Regarding the future of domestic plastics recycling, Sanipac will continue to invest in educating ourselves through
regular attendance at recycling conferences and organization memberships with groups such as the Association of
Oregon Recyclers, Oregon Refuse and Recycling Association, and the National Recycling Coalition.
Thanks again for your time and please let us know if there is anything else Sanipac can do to benefit the Springfield
community.
Best,
Aaron Donley
Sanipac Inc.
Attachment 3, Page 1 of 9
What’s the Future of Recycling?
The Pacific Northwest gets a “PRF.”
While obviously no one knows the future there are some hopeful signs when it comes to recycling in our
region. The most substantial opportunity will hopefully come in the form of a Plastics Recovery Facility or
“PRF.” A “PRF” could accept a wide variety of plastics and process them into forms that could be resold to
American manufacturers. There is currently no such facility in the Pacific Northwest, but possible
development of one has recently been announced by Denton Plastics in
Portland http://www.dentonplastics.com/ . Several Chinese inventors have also shown interest in creating a
PRF in the Seattle area. Additionally, an existing facility in British Columbia, Merlin Plastics, recently
announced plans to dramatically increase purchase of Oregon and Washington mixed plastics.
Exciting other developments:
In the wake of the recycling crisis many businesses are looking to fill the void through innovation. Here are a few
examples:
ReWall http://www.rewallsolutions.com/ is a company manufacturing building insulation products made from
recycled milk cartons.
Agilyx Corp. is opening a new plant in Tigard that can process 10 tons a day of Styrofoam. St. Vincent De Paul
currently accepts Styrofoam locally https://www.svdp.us/what-we-do/recycling-and-manufacturing/styrofoam-
recycling/
Trex Co. https://www.trex.com/ takes plastic bags returned to local grocery stores and converts the material
into plastic decking materials.
Increased regulation on manufacturers:
The recycling crisis affects us locally but truly is a national and global issue. As such our local, state, and
federal agencies are engaged in researching potential guidelines for the manufacturing sector. Potential items
of discussion include materials used in the manufacturing process and long term product stewardship
responsibilities. For more information please visit the Oregon DEQ website: 2050 Vision for Materials
Management:
http://www.oregon.gov/deq/mm/Pages/2050-Vision-Workgroup.aspx
Exhibit A, Page 1 of 1
Attachment 3, Page 2 of 9
What’s Happening With Recycling?
After your recycling is collected at the curb it is disposed of for a fee at large processing facilities throughout
the region. These processors sort and separate the recycling then sell the materials at market. China, as the largest manufacturer in the world, has historically also been the largest market for American recyclables (to use
as raw material for manufacturing.) Unfortunately American recycling also contained on average 5-10% non-
recyclable contamination (or garbage.) Due to health and environmental concerns China announced it would
no longer be accepting recyclable loads from processors that contain more than 0.5% contamination. This
announcement caused major disruption in the worldwide recycling industry as processors had to increase sorting labor, operational hours, and find other markets to sell their materials. All of this had the effect of
limiting the types of materials that had viable markets, and dramatically increased costs for haulers to deliver
recycling. The end result for residents at the curb is there are less items that can go into the cart and the cost to
have the remaining items processed has risen.
What are the changes to what I can put in the cart? The main adjustment has been with regard to plastic items. Previously the plastics accepted were jugs, tubs, and
bottles. Moving forward the acceptable plastics will be milk jugs and drink bottles only. Other
changes include no aseptic containers (these are commonly in the form of soy milk or juice boxes), no drink
cartons (such as milk or juice cartons), and no shredded paper (shredded paper falls through the sorting machinery and contaminates other recycling). Is there anywhere else I can take items that aren’t accepted in the cart?
Sanipac is still accepting delivery of clean yogurt and dairy tubs, along with detergent and shampoo bottles at
EcoSort free of charge for the public. EcoSort is located in Glenwood at 3425 E 17th Ave. Although there are no
current markets available that are accepting this material, Sanipac will make every effort to find an alternative use or end
processor to ensure to the best of our ability that this material does not end up in the landfill. There are many other opportunities for recycling in Lane County. Please visit Sanipac.com and check out the Waste Wizard where
you can type in any item to see if there is a recyclable option in the area. The free Sanipac app also provides
recycling updates and reminder notifications to set out your cans before your pickup day.
Will the market recover? What can I do to help?
We are hopeful foreign and domestic markets and innovations will rise to meet the challenge. Sanipac is in regular communication with the DEQ and other stakeholders throughout the region to learn of any new
opportunities. In the mean time please continue to recycle whenever possible and:
Recycle it right – please only include the acceptable items free of food contamination.
Prevent waste from the start – Reducing waste starts at the point of generation. Please consider recycling opportunities when making purchasing decisions.
Exhibit B, Page 1 of 1
Attachment 3, Page 3 of 9
Exhibit C, Page 1 of 1
Attachment 3, Page 4 of 9
Exhibit D, Page 1 of 1
Attachment 3, Page 5 of 9
Exhibit E, Page 1 of 2
Attachment 3, Page 6 of 9
Exhibit E, Page 2 of 2
Attachment 3, Page 7 of 9
Exhibit F, Page 1 of 1
Attachment 3, Page 8 of 9
Exhibit G, Page 1 of 1Attachment 3, Page 9 of 9
Exhibit H
Sanipac Recycling Commercial Transcript for Public Record
Narration Transcript
It’s the Sanipac Recycling Quiz!
New recycling guidelines say you can recycle…
Flattened cardboard boxes and egg cartons [“Yeah!”]
Plastic bottles and milk jugs [“Yeah!”]
Exhibit H, Page 1 of 4
Pop cans and food cans [“Yeah!”]
Newspaper, magazines, junk mail, office paper [“Yeah!”]
Remember, keep it clean…
and recycle with Sanipac.
Exhibit H, Page 2 of 4
For complete information, go to the Waste Wizard on Sanipac’s app…
Or online at Sanipac.com.
Exhibit H, Page 3 of 4
Exhibit H, Page 4 of 4