Advanced Disposal delivers message to City Commission - Recycling no longer a revenue source

Submitted by Eric Bartelt

April 21. 2016 3:29 p.m.

A presentation at last Tuesday's City Commission meeting highlighted the challenges of maintaining a recycling program for the City. Making the presentation was Greg Huntington, Municipal Marketing and Government Affairs Manager for Advance Disposal in Florida, along with Jody Jackson, Advance Disposal's General Manager for Nassau County and Fernandina. In addition to providing residential, commercial and special event trash collection; yard waste collection; and cleanup after storms, Advance provides curbside collection of recyclables.

During the time Advance has provided these services to the City, recycling has switched from providing a source of revenue to becoming an ever increasing expense. Prior to May of 2013, the City received a rebate of $10 per ton of recycled material. By 2015, the rebate had turned into a cost of $20 per ton. Since then, that cost has steadily risen to this year's $70 per ton. Since Advance Disposal has a contract with the City, they have absorbed that cost. Their presentation on Tuesday was meant to inform the Commission about the cost trend for recycling and to indicate their desire to revisit their contract, which has been in effect for almost eight years and expires in 2018. Their contract currently has no provisions in it for sharing the cost with the city.

The reasons why recycling has become a cost instead of a revenue source, according to Mr. Huntington, are because of:

1. A slowing global economy. Recycling is a global business and much of our recycled material is exported. In the slowing global economy, demand for certain recycled commodities is decreasing.

2. A large amount of our recycled material is exported to China. With their economy slowing, they are taking less recycled material. At the same time, they are becoming more particular about the recycled materials they receive and the degree of contamination present in the material.

3. Lower fuel prices. Since petroleum is used in making plastic, it has become cheaper to make plastic products from virgin material like petroleum than using recycled plastic.

4. Increased contamination. It is more convenient to put all recyclable material into a single recycling cart rather than pre-sorting it. With that more convenient approach, contamination increases because it is easier to put material that isn't recyclable into the cart. Those unrecyclable materials then have to be removed at the processing facility, and that increases cost.

After the presentation, the Commission explored whether Advance's contract could be revised or whether, as Commissioner Poynter suggested, a new RFP (Request For Proposal) should be issued. Commissioner Smith and City Attorney Bach both agreed that given the 8 years Advance's contract has been in effect, it would be appropriate to put the contract out for bid. Commissioner Kreger thought a recommendation by the City's Fleet and Maintenance Director Jeremiah Glisson to form a committee to look at service levels, including twice weekly trash pickup, was a good idea before issuing an RFP. Commissioner Lentz questioned how the contract would be structured if declining recycled commodity prices reversed and again became a rebate. Mr. Huntington replied that a new contract could specify sharing of either a rebate or the cost.

Editor's Note: Eric Bartelt retired as a corporate design consultant and moved to Fernandina Beach in 2004. His previously lived in Wisconsin. Since Eric's arrival in Fernandina Beach, he spends his time volunteering. We thank Eric for his contributions to the Fernandina Observer.