City of Loveland City of Loveland Solid Waste DivisionSolid Waste Division

Diversion Versus Disposal: Determining the Diversion Versus Disposal: Determining the CostsCosts

Conventional Industry AssumptionsConventional Industry Assumptions

Landfill space is abundant and inexpensive in Landfill space is abundant and inexpensive in Colorado.Colorado.

Recycling markets are far away.Recycling markets are far away. Many smaller communities don’t have access to Many smaller communities don’t have access to

facilities to sort and process recyclables for facilities to sort and process recyclables for market.market.

Diversion, while it may be a good idea, is too Diversion, while it may be a good idea, is too expensive relative to cheap disposal.expensive relative to cheap disposal.

No federal or state mandates to divert materials No federal or state mandates to divert materials from landfill disposal.from landfill disposal.

Community and Program Community and Program InformationInformation

Loveland population: 60,000Loveland population: 60,000 Solid Waste Division operates Solid Waste Division operates

as an enterprise fund in an as an enterprise fund in an open, competitive market with open, competitive market with private waste haulers.private waste haulers.

City has approximately 96% City has approximately 96% market share.market share.

Households served: 22,000 Households served: 22,000 single-family, duplex, and single-family, duplex, and triplex.triplex.

Historical PerspectiveHistorical Perspective

1992: flat monthly fee of $5.75 for up to ten 1992: flat monthly fee of $5.75 for up to ten bags collected weekly.bags collected weekly.

No incentive for waste reduction/recycling.No incentive for waste reduction/recycling. Worker injuries from lifting heavy bags of Worker injuries from lifting heavy bags of

grass.grass. Increased worker compensation costs.Increased worker compensation costs. Community interest in recycling.Community interest in recycling.

1993: New Program Implemented1993: New Program Implemented Base rate currently $5.25/month.Base rate currently $5.25/month. Volume-based, “pay-as-you-throw” rates for Volume-based, “pay-as-you-throw” rates for

refuse.refuse. Curbside and drop-off recycling and yard waste Curbside and drop-off recycling and yard waste

composting.composting.

PAYT OptionsPAYT Options City trash stamp: $1.00 for 32-gallons.City trash stamp: $1.00 for 32-gallons.

PAYT OptionsPAYT Options Trash carts:Trash carts:

32-G $5.00/month.32-G $5.00/month.64-G $10.00/month64-G $10.00/month96-G $15.00/month96-G $15.00/month

Carts used by about 70% of City customers.Carts used by about 70% of City customers.

Program Compatibility with Program Compatibility with Collection EquipmentCollection Equipment

Residential front loaders: manual or Residential front loaders: manual or automated collection.automated collection.

Recycling ServicesRecycling Services

Curbside collection: Curbside collection: Glass bottles and jars, Glass bottles and jars, metal cans and plastic metal cans and plastic bottles in green bin; bottles in green bin; mixed paper in blue bin.mixed paper in blue bin.

Drop-off: all curbside Drop-off: all curbside materials, plus scrap materials, plus scrap metal, appliances, metal, appliances, batteries, tires, TVs and batteries, tires, TVs and

motor/cooking oil.motor/cooking oil.

Yard Waste Composting ServicesYard Waste Composting Services Curbside pickup: 96-gallon cart provided Curbside pickup: 96-gallon cart provided

for weekly collection April through for weekly collection April through November for $6.00/month.November for $6.00/month.

Yard Waste Composting ServicesYard Waste Composting Services Free drop-off for Loveland residents.Free drop-off for Loveland residents. Materials accepted: branches, leaves, grass Materials accepted: branches, leaves, grass

clippings, garden trimmings and lumber.clippings, garden trimmings and lumber. A-1 Organics produces high-quality A-1 Organics produces high-quality

compost for wholesale.compost for wholesale.

The ResultsThe Results

Residential diversion rate has exceeded Residential diversion rate has exceeded 50% annually since ’93.50% annually since ’93.

Average weekly trash setouts decreased Average weekly trash setouts decreased from three to one 32-gallon bag. from three to one 32-gallon bag.

Workers are staying healthy since yard Workers are staying healthy since yard waste (and increasingly refuse) waste (and increasingly refuse) containerized.containerized.

Customers are very happy with services.Customers are very happy with services.

Determining CostsDetermining Costs

Since more than one-half of residential Since more than one-half of residential waste stream is diverted from landfill waste stream is diverted from landfill disposal, is it cheaper or most expensive disposal, is it cheaper or most expensive than disposal?than disposal?

How do we determine costs per ton for How do we determine costs per ton for disposal versus diversion?disposal versus diversion?

Cost MethodologyCost Methodology

Each activity area (refuse, recycling and yard waste) has Each activity area (refuse, recycling and yard waste) has its own assigned personnel and equipment.its own assigned personnel and equipment.

Costs specific to an activity are charged solely to that Costs specific to an activity are charged solely to that activity.activity.

Across the board expenses (work clothing, printing, Across the board expenses (work clothing, printing, postage, etc.) are allocated among the three activities, postage, etc.) are allocated among the three activities, based on the allocation of labor.based on the allocation of labor.

Costs are inclusive: labor, benefits, supplies, services, Costs are inclusive: labor, benefits, supplies, services, equipment, transfers, PILT and capital.equipment, transfers, PILT and capital.

Refuse includes landfill disposal fees, while income from Refuse includes landfill disposal fees, while income from sale of recyclables is credited against recycling expenses.sale of recyclables is credited against recycling expenses.

2005 Data2005 Data

Disposal Expenses: $1,749,624Disposal Expenses: $1,749,624 Disposal Tons: 16,339Disposal Tons: 16,339 Cost Per Ton: $107Cost Per Ton: $107

Diversion Expenses: $1,489,318Diversion Expenses: $1,489,318 Diversion Tons: 20,756Diversion Tons: 20,756 Cost Per Ton: $72Cost Per Ton: $72

The Bottom LineThe Bottom Line

In 2005, diversion was $35 per ton cheaper In 2005, diversion was $35 per ton cheaper than disposal.than disposal.

Key FactorsKey Factors

Pay-As-You-Throw rates encourage a high Pay-As-You-Throw rates encourage a high level of waste reduction and recycling.level of waste reduction and recycling.

As diversion increases, the cost per ton As diversion increases, the cost per ton decreases.decreases.

Aggressive recycling and composting Aggressive recycling and composting efforts pay big dividends.efforts pay big dividends.

Yard waste makes up two-thirds of all Yard waste makes up two-thirds of all diversion tons – the low-hanging fruit.diversion tons – the low-hanging fruit.

New InitiativesNew Initiatives

Automation of recycling and single-stream, Automation of recycling and single-stream, fully-commingled cart-based collection: fully-commingled cart-based collection: 2009.2009.

Automation of refuse collection: 2010.Automation of refuse collection: 2010. New fleet and five-year replacement New fleet and five-year replacement

schedule in future.schedule in future. Add new recyclables and compostables, Add new recyclables and compostables,

when feasible: aseptic boxes, textiles, other when feasible: aseptic boxes, textiles, other plastics, food waste, etc.plastics, food waste, etc.

SummarySummary

Plan for high levels of diversion.Plan for high levels of diversion. Create incentives for residents to recycle: PAYT.Create incentives for residents to recycle: PAYT. Make waste diversion and recycling convenient.Make waste diversion and recycling convenient. Provide drop-off options, especially for yard Provide drop-off options, especially for yard

debris: These are cheaper per ton than curbside.debris: These are cheaper per ton than curbside. Understand costs and how they are allocated.Understand costs and how they are allocated. Waste diversion does make economic sense for Waste diversion does make economic sense for

Colorado.Colorado.