Item 07 - OC Grand Jury’s Investigative Report, Findings and Recommendations Regarding “Where Have All the CRVs Gone”

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City’s Response: The recommendation will not be implemented because it is not warranted as the residents of Santa Ana currently enjoy convenient access to redemption centers. Further, the pilot programs highlighted in the Grand Jury report, while innovative and convenient for residents, are not financially sustainable. In a July 15 th article titled ‘Pilot mobile recycling programs aren’t fix for California’s crumbling system’, the Orange County register found that the cost of redeeming a CRV container using the City of Irvine’s mobile CRV pilot program exceeded the CRV value of the container. Further, the pilot program in Irvine did not appear to be ‘scalable’ beyond a pilot phase due to subscription, financial non-sustainability, and participation. Due to the already high participation from Santa Ana residents in existing CRV redemption programs, it is unlikely that such a program would have better outcomes in Santa Ana. Grant funding or additional programming are not needed in Santa Ana to increase residential CRV redemption levels at this time. R2 By January of 2023, the Orange County Board of Supervisors should require OC Waste & Recycling to research and apply for available grants or pilot programs from CalRecycle for the unincorporated areas of OC that focus on returning more CRV funds to their residents. (F3) City’s Response: This recommendation will not be implemented by the City of Santa Ana because it is not warranted as the City does not have jurisdiction over the unincorporated areas of Orange County. However, it is the City’s understanding that there are CRV redemption resources available in cities located near unincorporated areas of Orange County. The City further understands that the small geographically isolated ‘islands’ of unincorporated County areas make mobile CRV programs or the placement of redemption centers infeasible. For these areas, hauler-provided curbside recycling programs are the most practical way to recover CRV materials. R3 When renegotiating their current waste hauler contract, all cities and the County of Orange should assess the value of the CRV funds received by the waste hauler in their jurisdiction and creatively leverage this revenue for the benefit of their residents. (F2, F4) City’s Response: This recommendation has been implemented. The City recently completed a competitive Request for Proposals for trash and recycling services. The contract became effective July 1, 2022 and a new service provider, Republic Services, is now collecting materials in the City. The City included language in the contract that indicates the hauler receives all revenue from CRV materials that end up in the recycling bins, as well as the scrap value of both CRV and non-CRV materials. As a condition of receiving these revenue streams, the hauler assumes all risks and rewards associated with fluctuations in commodity values. Additionally, the hauler is prohibited from requesting rate adjustments from the City if commodity pricing results in financial losses. R4 By January of 2023, all cities and the County of Orange should develop extensive community outreach programs aimed at educating the public about how to access CRV redemption in their jurisdiction. (F1, F3)