LTC 537-2019 Recycling Program Update MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC# 537-2019 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members •f the City; ommission
FROM: Jimmy L. Morales, City Manage
DATE: October 7,
ctobe2019
SUBJECT: Recycling Program Update
The purpose of this Letter to Commission (LTC) is to provide information on the city's recycling
programs as part of ongoing discussions regarding the Coca-Cola Contract and the franchise
waste contractors agreement renewal. The LTC addresses the following topics: 1) history of
recycling in Miami Beach; 2) franchise waste contractors and their roles; 3) changes in the
recycling industry and how they impact Miami Beach programs; and 4) existing initiatives and
future efforts on improving recycling.
History
Miami-Dade County adopted ordinance 91-123 in 1992 to facilitate the establishment of recycling
programs and encourage recycling activities. Although the county code (Sections 15-2.2 to 15-
2.4) required multifamily and commercial establishments to have a recycling program, it was not
comprehensively enforced. In order to accomplish its sustainability goals of reducing waste
diversion, greenhouse gas emissions, and improve overall recycling practices, the City of Miami
Beach established several recycling initiatives over the years.
In 2008, the city entered an interlocal agreement with the county. Within this agreement, the
county provides single-stream recycling services to 5,147 single-family homes and properties with
up to eight units. Current costs associated to this agreement are $3.62 per household at an
estimated annual cost of$223,585. Services for these properties are provided by a World Waste
Services and managed directly through the county.
On June 2012, the City Commission adopted ordinance 2012-3768 which mandates that multi-
family residences of nine units or more and commercial establishments implement a single-
stream recycling program. On July 2014, ordinance 2014-3886 included multi-family residences
of two to eight units, meaning that all properties in the city are required to have a recycling program
in place. Since the adoption of these ordinances, the city has been conducting extensive outreach
and education to inform residents, property owners and businesses of these
requirements. Recycling options for the City of Miami Beach properties may vary depending on
the property type as listed in the following table.
Multi-Family Homes Multi-Family Homes
Single-Family Homes Commercial
2-8 Units 9 Units or More
•Single-family homes are •Residences with two to •Properties with nine units •Businesses are required to
automatically enrolled for eight units have the or more are required to coordinate their own
single-stream recycling option to obtain a single- contract with a licensed single-stream recycling
services with a scheduled stream recycling service recycling hauler or utilize plans.Businesses can
pick up on Wednesdays. with the city or contract a one of the franchise waste arrange recycling services
This is also known as"city licensed recycling hauler, haulers permitted to with a licensed recycling
service" utilizing one of the operate in the city. hauler or utilize one of the
franchise waste haulers waste haulers permitted
permitted to operate in to operate in the city.
the city.
Franchise Waste Contractors
The city has an existing franchise agreement with Waste Management and Waste Connections
to provide collection of solid waste and recyclable materials. The city receives 20% of gross
monthly receipts from franchise waste contractors for an approximate total of $3.9M. As part of
their agreement, the contractors also provide public services that help further promote waste and
recycling programs in the city (attachment). These services include waste and recycling services
for city properties and funding for hazardous waste events, bulk waste drop-off events, and
sustainability/education grants. Additionally, 1.5% of the gross receipts from the haulers is utilized
to fund salaries, operating costs, and educational programming related to sustainability, including
litter reduction and recycling programs.
Further, each recycling contractor assists with identifying properties that are not in compliance by
providing the city a monthly report with information on any registered accounts. Contractors also
help with identifying properties which do not have a recycling program or have allowed a recycling
program to lapse or expire. These reports are sorted and grouped by the Environment and
Sustainability Department then provided to the Code Compliance Department as a guidance
document for compliance.
In 2012, recycling compliance for the city was an estimated 24% and increased to approximately
95% by 2018. However, it is important to note that this number only reflects properties that are
signed up for recycling services, not whether properties are recycling properly. Waste
Management and Waste Connections are the most frequently used waste haulers, but properties
with more than two units can choose any licensed waste hauler for recycling services.
Changes in the Recycling industry
Recycling is a market driven industry that fluctuates based on the commodities market. Over the
last couple of years, the international recycling industry has changed significantly. This is primarily
the result of the implementation of several restrictive international policies from China, which was
historically the largest importer of recyclable commodities. These recycling policies have placed
a limit on the types of recyclables that are accepted in China and have significantly lowered the
allowable percent of contamination. Each new policy was designed to replace and reinforce the
last by increasing standards to accept only the cleanest and highest-grade materials.
The policy restrictions have significantly dropped the number of accepted recyclables which also
lowers their value. According to Resource Recycling, Inc, this year, prices for mixed paper,
cardboard, and certain types of plastics like natural high-density polyethylene (HDPE) continue
to drop in value when compared to previous years. However, items like aluminum and
polyethylene terephthalate (PET) plastic have remained constant in their value, supporting the
fact that recycling is an industry that is constantly transforming. Despite these challenges, waste
haulers such as Waste Management claim to have identified alternative domestic and
international markets for the most common recyclables. The industry is also expected to continue
changing as domestic Material Recovery Facilities (MRF) expand their operations by upgrading
equipment and increasing their workforce to improve the material sorting while decreasing
contamination. Additionally, some international recycling operators such as Global Win Wickliffe
(paper manufacturer) and Nine Dragons (cardboard manufacturer), have announced plans to
invest, buy, expand, or restart recycling processing facilities within the U.S.
In Miami Beach, the majority of recyclables serviced by the city's waste haulers are delivered to
the Waste Management MRF located in Pembroke Pines. From there, the materials are sorted
and placed into large bales to prepare for shipment to purchasers of those commodities. These
items are then transferred to alternative markets, some of which are located within the U.S. and
other are overseas. Plastics, for example, are processed in domestic markets while paper is
exported to other countries. The city's franchise waste haulers, Waste Management and Waste
Connections, have both informed the administration that it is difficult to track what happens to
commodities once they are shipped overseas as there are often multiple transactions. Materials
can be resold after initial purchase in secondary and tertiary markets before being used in final
consumer products. Below is a breakdown of where commodities processed by Waste
Management are sent domestically and internationally.
DOMESTIC MALS
CHINA
2019 77.0% 20191 3.0%
4111% 2018 60.0% EUROPE 201&i0%
2119 2.1% 3 172
%211& 1.f%
201?; 0"0%
i E1 ASU
M19:3.EXICO 9` 2019TO%
/kW ' . illallibio
2019:30%41Pki°11201& 6%
201&3.2% INDIA&M. r I t 261 ,9°4
.Th7 13% 2019:7.0% , '#
211&15.6%
:.»w.:. 2017 i.9.
SOUTH AMERICA
2019:1.0%
WM was the 7'^largest exporter of all
goods in 2017(by volume from the
U.S'
27%of our fiber went into China►n Following the Path of„,
2017
<3'iinQ32018 4.. Our Commodities 2017-2019
wM is no Longer exporting any
residential ptastics
Destinations of recyclable commodities-Waste Management
Moreover, despite the many changes occurring in the industry, contamination is still considered
to be the biggest threat to the success of recycling programs. Contamination is the disposal of
the incorrect items and/or the incorrect method of disposal within the recycling bin. As it stands,
contamination within Miami Beach and Miami-Dade County has always been a challenge. The
State of Florida has an average contamination rate of 30% while our region ranges between 30-
40%. Nevertheless, the lowering of the allowable contamination rates from 10% to a stringent
0.5% as a result of the China's waste importation policies has made addressing the issue more
important than ever.
The State of Florida has 20 million residents and about 113 million visitors that generate over 37
million tons of municipal solid waste every year. This provides many opportunities for recycling.
In 2008, the Florida Legislature adopted the Energy, Climate Change and Economic Security Act,
which established a statewide weight-based recycling goal of 75% by 2020. As of 2016, the
recycling rate reached 56%. In order to continue increasing the state recycling rate, the Florida
Department of Environment Protection recommends additional actions such as policy/regulatory
changes, recycling based educational programs or grants, and statewide concepts on source
reduction and sustainable materials management. Furthermore, in Miami-Dade County, over 90%
of residential solid waste is diverted to a local waste-to-energy plant. The energy converted within
this plant goes back into the Florida Power and Light electrical grid which helps power over 35,000
homes annually. The county receives recycling credits from using this type of waste management
method.
The city's single-stream recycling system allows residents and business to place all recyclables
into one container. The convenience of the system increases participation and the potential
amount of materials available, but it also leads to the contamination that contributes to increased
processing costs and the rejection of material. Excessive trash and non-recyclables make sorting
materials harder and more expensive. It also dilutes the total amount of recyclable materials and
brings down recovery costs. Some of the most common items that are known to contaminate the
recycling stream are pizza boxes, food/beverage takeout containers, and plastic bags.
Additionally, contamination has been exasperated by what the recycling industry calls
"aspirational recycling"—the assumption that everything thrown in a recycling bin gets recycled.
While plastic straws, grocery bags, and yogurt containers are all technically recyclable, they are
almost never recycled because many require special processing facilities that either do not exist
in our area or have a special disposal process (i.e. plastic bags at Publix). For example, plastic
bags jam machinery and lower the profitability of recyclable materials with which they are mixed
with.
What is Miami Beach Doing?
Municipalities nationwide have been impacted by these changes. However, there is still a market
for recyclables as some materials become more valuable than others. And although a number of
municipalities have considered pausing or ending their recycling programs, it is recommended to
not take this action as it often difficult to restart a program once it is halted and could take years
to reach a high recycling compliance rate. Instead, many cities and towns are now focusing their
waste management programs on overall waste reduction, a limited number of recyclables, and a
ramp up of their education and enforcement efforts.
Last year, Miami-Dade County launched the "Enforcement Blitz" program for properties on city
service. Through this program, the county deploys Code Officers from their Enforcement Division
to assess the contamination of recycling carts and leave warning notices with properties that have
non-recyclables present within their cart. The October 2018 Blitz resulted in 106 notices
distributed to properties on city service. This year's blitz was scheduled to be carried out on both
September 18, 2019 and September 25, 2019. The results will be provided by the county at the
conclusion of the assessment. In addition to this effort, the city's waste haulers are combating
high rates of contamination by informing accounts with excessive contamination of the
requirements to recycle properly. Accounts that do not comply are charged a fee based on the
property's agreement with their contracted hauler.
campaign has been designed to simplify the types of items that are placed in the recycling bin. It
focuses on the most common materials that continue to be accepted in the recycling waste
stream: narrow top plastic bottles, steel/aluminum cans, mixed paper, and clean cardboard. It has
been found that by only focusing on these items, the chance of contamination is much lower.
OR
ALLOWED
PERMflWDO aw
.:..
LABLES
RECYC /RECICLABLES
NOT ALLOWED MIAM1BEACH
NO PERM17PDO X RISING
ABOVE
City of Miami Beach Recycling Label
Other educational efforts include highlighting the importance of being a conscious consumer.
Residents and businesses can make changes to their purchasing practices by thinking twice
before buying; avoiding containers and packaging that have no recycling value; and opting for
products that are made of sustainable materials.
Moreover, the Environment and Sustainability Department is planning a series of recycling
workshops in November to inform residents and businesses on the correct way to recycle,
introduce them to the new recycling campaign, and provide them with important educational
material. Other efforts include further promoting the city's textile and electronic waste recycling
services year-round to ensure the proper disposal of items that are not accepted within the city's
curbside recycling programs. Household hazardous waste events are held twice a year to
maintain out of the ordinary, hazardous materials from the regular waste stream.
City staff will continue exploring opportunities to reduce contamination within the curbside
recycling program while considering the establishment of recycling streams for items that are not
accepted within that program.
JLM/SMT/E W/FCT/YP
EXHIBIT A
ADDITIONAL PUBLIC SERVICES TO BE PROVIDED
Throughout the Term of the Service Agreement, Contractors shall provide the City with the
following additional services and public benefits.
1. Provide Municipal Solid Waste and Recycling Services as referenced (Municipal
Solid Waste and Recycling pick up at City owned facilities).The service provided
by each Contractor shall be detennined by each Contractor's current Market
Share.
2. Pick-up and disposal of all City owned litter cans in the public right of way and
City parks. Contractors shall provide service seven (7) days a week; service is to
be provided before 11AM. (Exceptions: litter cans located on or in Lincoln Road,
Ocean Drive, Washington Ave. from 5th St to Lincoln Road, the beach walk,
South Pointe Park, and Open Space Park. City crews shall service these litter
cans.) The service provided by each Contractor shall be determined by each
Contractor's current Market Share.
3. Pick-up and disposal of all City-owned recycling cans in the public right-of-way
and City parks (services shall be provided two times per week). (Exceptions:
Recycle cans located on or in Lincoln Road, Ocean Drive, Washington Ave. from
5th St to Lincoln Road, the beach walk, South Pointe Park, and Open Space Park.
City crews shall service these Recycle cans.) The service provided by each
Contractor shall be determined by each Contractor's current Market Share.
4. Contractors shall provide additional support for special events by collectively, in
equal shares, providing the City with a total of fifteen (15) twenty-cubic-yard
rolloff containers (five rolloff containers per Contractor per year), and one
hundred (100) event boxes per Contractor per year. Event boxes are to be
delivered to the Sanitation Division yard. Rolloff containers to be provided will
be distributed equally amongst the Contractors.
5. On October 1" of each year during the Term of the Service Agreement, the
Contractors shall collectively provide funding, in the amount of Thirty Thousand
dollars ($30,000), to the City for two (2) hazardous material pickup events per
year. These two events shall be managed by the City, at sites to be specified and
approved by the City Manager. The proportionate amount due by each Contractor
shall be determined by each Contractor's current Market Share.
6. On October 1" of each year during the Term of the Service Agreement,
Contractors shall collectively provide the City with an annual cash contribution,
which sum shall be equivalent to the latest and most current purchase price of
twenty five (25) of the urban style recycling containers utilized by the City. The
proportionate amount due by each Contractor shall be detennined by each
Contractor's respective current Market Share. (The actual price in 2013 was
$1,200.00 per can.)
34
7. On October of each year during the Term of the Service Agreement, the
Contractors shall collectively provide funds, in the total sum of eight thousand
dollars ($8,000.00), to the City for security services for the "Wasteful Weekend"
event at each of the sites where the event is held in the City each month. The
proportionate amount due by each Contractor shall be determined by their
respective current Market Share. (The actual annual cost for 2013 was$8,000.00)
8. During the Term, each Contractor shall pay to the City one and one half percent
(1.5%)of its Gross Receipts in the City, to be used by the City to establish a fund
for implementation of sustainable initiatives in the City of Miami Beach (which
initiatives shall be as approved by the City Commission, in its sole and reasonable
discretion). This contribution will be payable and due at the time of, and in
conjunction with, Contractors' franchise fee payments to the City.
9. On October 151 of each year during the Term,the Contractors shalt pay to the City,
collectively, in equal shares, the sum of$75,000 ($25,000.00 per Contractor) per
year, to support educational programs in the City. The City Commission, in its
sole and reasonable discretion, shall determine the time, place, and manner of
such programs.
10. On October I u of each year during the Term, the Contractors shall collectively
pay to the City the amount of$400,000. The proportionate amount due by each
Contractor shall be determined by each Contractor's current Market Share. These
funds wilt be used to offset costs incurred by the Sanitation Division's efforts to
eradicate illegal dumping.
11. On October 151 of each year during the Term, the Contractors collectively, in
equal shares, shall pay to the City the sum of twenty five thousand dollars
($25,000)per year($8,333.34 per Contractor),to support environmental programs
in the City. The City Commission, in its sole and reasonable discretion, shall
determine the time,place, and manner of such programs.
35