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Item 07 - OC Grand Jury’s Investigative Report, Findings and Recommendations Regarding “Where Have All the CRVs Gone”
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Item 07 - OC Grand Jury’s Investigative Report, Findings and Recommendations Regarding “Where Have All the CRVs Gone”
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Clerk of the Council
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7
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9/20/2022
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to CalRecycle’s waste characterization study, 0.10% of Orange County’s residential waste <br />stream comprises aluminum cans. The City of Santa Ana has 1/5th the amount of aluminum <br />cans in its residential waste stream when compared to the OC average due to the high density <br />of CRV redemption centers in the City and the ease of CRV redemption enjoyed by residents. <br />Visit www2.calrecycle.ca.gov/WasteCharacterization/ to view CalRecycle’s waste <br />characterization study. <br /> <br />Additionally, based on CRV redemption data provided by CalRecycle, the City’s residents <br />utilized buyback centers for 30.2 million lbs. of the total 42.9 million lbs. of CRV redeemed in <br />the City. The hauler redeems only 30% of the total CRV in the City via curbside programs <br />while recycling centers are used by residents to redeem 70% of CRV in the City. In an Orange <br />County city with a lower density of redemption centers (approximately 1 buyback center for <br />every 85,000 residents), 70% of CRV is hauler-redeemed and 30% is redeemed by residents <br />via redemption centers. <br /> <br />F3 CalRecycle is attempting to improve CRV redemption and reduce CRV recyclables from <br />landfills and are offering financial incentives to do so. Orange County and its cities are not fully <br />taking advantage of the grant or pilot program opportunities available through CalRecycle. <br /> <br />City’s Response: Disagree wholly – As evidenced by the analysis included in the City’s <br />responses to Findings 1 and 2, CRV redemption levels are sufficiently high in Santa Ana <br />without the need for additional funding or programs. <br /> <br />F4 Orange County and most OC Cities do not make CRV redemption and recycling a priority when <br />negotiating their waste hauler contracts which results in missed financial opportunities and <br />convenience for their residents. <br /> <br />City’s Response: Disagree wholly – the City recently completed a competitive Request for <br />Proposals for trash and recycling services. The contract became effective July 1, 2022 and a <br />new service provider, Republic Services, is now collecting materials in the City. The City <br />included language in the contract that indicates the hauler receives all revenue from CRV <br />materials that end up in the recycling bins, as well as the scrap value of both CRV and non- <br />CRV materials. As a condition of receiving these revenue streams, the hauler assumes all <br />risks and rewards associated with fluctuations in commodity values. Additionally, the hauler <br />is prohibited from requesting rate adjustments from the City if commodity pricing results in <br />financial losses. The City believes this system of the hauler assuming all risks and rewards <br />associated with commodity and/or CRV revenue protects the ratepayer by keeping the rates <br />stable and consistent. Further, it provides an incentive to the hauler to maximize the amount <br />of clean recyclable materials it accepts through recycling programs and to take measures to <br />reduce CRV scavenging. <br /> <br />RECOMMENDATIONS <br /> <br />R1 By January of 2023, each of the cities in Orange County should research and apply for <br />available grants or pilot programs from CalRecycle for their community that focus on returning <br />more CRV funds to their residents. (F3)
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