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2019-103 Glass and Plastic Recycling UpdateDate: May 10, 2019 Report No. 2019-103 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Glass and plastic recycling update BACKGROUND: The City of Denton’s recycling program provides for collection and recycling of materials including plastics #1 – 7, glass bottles and jars, aluminum cans and foil, steel cans, mixed paper, cardboard, and cartons and juice boxes. The City’s Solid Waste department collects residential and commercial recyclables and delivers these materials to an onsite material recycling facility (MRF) owned and operated by Pratt Industries. On March 26, 2019, Pratt Industries informed Solid Waste staff that glass and plastics #3 – 7 were being landfilled due to issues with material quality and a lack of buyers in the regional recyclables market. Upon receiving this notice, staff initiated a review of the Pratt processing agreement to determine if the firm could be compelled to recycle this material. The agreement states that ownership of the recyclable materials collected by the City is transferred to Pratt upon delivery. Further, Pratt is solely responsible for marketing the materials to regional recycling processors. In the event that a recyclable material cannot be sold, Pratt’s processing agreement allows the firm to landfill that material by notifying the City of Denton. Please note, per Pratt, it is in their best financial interest to find end markets for the recyclable material being collected as anything that is landfilled does so at a cost to them. The contract review concluded in late April, and staff determined that a written notice had not been provided regarding the decision to landfill this material. On April 29, 2019, staff issued a letter to Pratt requesting written notification of this decision, an explanation of how this occurred, and the firm’s current and future efforts to divert these materials from the landfill. Staff’s written request and Pratt’s response are attached for Council’s review. As the review was conducted, staff maintained dialogue with Pratt regarding potential markets and alternative means of diverting and recycling these materials. Pratt assured staff that they were working diligently to secure end markets for these materials and recently notified staff that they have identified buyers. On April 24, 2019, Pratt identified two buyers for plastics #3 – 7 and began diverting and selling materials to those facilities. In regards to glass, Pratt has identified a potential buyer in Houston. A test shipment of glass was sent to this facility on May 7, 2019, and staff is awaiting word on whether the buyer will accept additional shipments. The remainder of this report provides an overview of the materials in question and a summation of next steps. Date: May 10, 2019 Report No. 2019-103 PLASTICS #3 - 7: Plastic products are typically labeled with numbers one (1) through seven (7) in accordance with a coding system that helps consumers identify the type of plastic used to make the item. Examples of Plastics #1 and #2 include most consumer drink bottles, plastic food jars, milk jugs, shampoo bottles, and household cleaner bottles. Plastics #1 and #2 are still being diverted and recycled. Plastics #3 – 7 are briefly described below. While these materials are currently being recycled and sold to recycling processors, the market for these materials is small and volatile. • Plastics #3 – Made from Polyvinyl Chloride (PVC or V). PVC is typically rigid and/or glossy. Common examples include spray bottles, mouthwash bottles, and clear food packaging. • Plastics #4 – Made from low-density Polyethylene (LDPE). LDPE plastics are typically flexible like mustard squeeze bottles. Common examples include packaging foam, flexible container lids, squeeze bottles, and plastic soda can rings. • Plastics #5 – Made from Polypropylene (PP). PP plastics are typically semi-rigid with a low gloss appearance. Common examples include bottle caps, medicine bottles, and margarine or yogurt tubs. • Plastics #6 – Made from Polystyrene (PS). PS plastics are typically brittle and glossy. Common examples include plastic cups and plates, compact disc cases, plastic cartons and trays. • Plastics #7 – Categorized as “other” plastics. Examples can include baby bottles, safety glasses, Tupperware, and reusable drinking bottles. GLASS: Denton’s recycling program accepts clear and colored glass bottles and jars. In order to recycle glass, the material must be sorted and separated twice. First, glass received in comingled recycling loads must be separated from contaminants and other recyclable materials, and then the glass must be separated according to color (clear, green, brown, etc.). Once separated, glass is easily recyclable; however, the sorting process associated with glass can be problematic if the material is contaminated or broken into small pieces. Additionally, the regional market does not include many glass recyclers, and those in the region have been flooded with an increased supply of glass as a result of the downturn in the recycling market. In response to depressed commodity prices and overwhelming supply, Pratt’s glass processor elected to tighten their quality standards to reject shipments containing contamination and glass cullet under two (2) inches in size. Because Denton’s glass is collected via a co-mingled single stream collection, the glass sorted by the Pratt processing facility is often broken into small pieces and contains non-glass contaminants. As a result, that glass processor decided to no longer accept Denton’s glass shipments. Date: May 10, 2019 Report No. 2019-103 As stated above, a potential glass buyer has been identified in Houston. While we are hopeful this facility will continue accepting Pratt’s shipments from Denton, staff is investigating additional options to improve the quality and marketability of the glass being collected in our program. NEXT STEPS: In regards to the recycling habits of our residents and businesses, customers should continue placing all acceptable material in their recycling containers. This includes plastics #1 – 7, glass bottles and jars, aluminum cans and foil, steel cans, mixed paper, cardboard, and cartons and juice boxes. The recycling market will likely remain volatile for the next several months; however, we want our customers to remain committed to separating these materials and exercising responsible recycling habits. Moving forward, Pratt has committed to immediately notify staff of any changes or updates regarding the sale of recyclable materials. As updates are received, staff will provide information to the City Council. An overview and update of this situation will be presented to the City Council during the May 21, 2019 work session. ATTACHMENTS: Exhibit 1 – City of Denton letter to Pratt Industries Exhibit 2 – Pratt response to City of Denton STAFF CONTACT(S): Ethan Cox Director of Public Works (940) 349-7421 Ethan.Cox@cityofdenton.com Solid Waste & Recycling 1527 S. Mayhill Rd., Denton, TX 76208  (940) 349-8700 OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD (800) 735-2989 April 29, 2019 Pratt Industries, Inc. Attn: Shawn State, President 1599 Highway 138 NE Conyers, GA 30013 Dear Mr. State: It has recently come to our attention that Pratt Industries has begun landfilling materials defined as acceptable recyclable materials in Pratt’s processing agreement with the City of Denton. During a telephone conversation on March 26, 2019, you informed me that Pratt’s Denton material recovery facility (MRF) had begun landfilling plastics #3-7 and glass due to a lack of buyers in the recycling market. City of Denton staff were not notified of the decision to landfill these materials prior to Pratt’s implementation. City staff have an obligation to the City Council and our community to provide relevant information regarding our programs and services. By neglecting to inform us of these changes, Pratt hindered our ability to communicate critical information to our customers in a timely and transparent manner. To date, Pratt Industries has not provided the City of Denton with written notification, as defined in Section 1.06 of the processing agreement, to allow these materials to be disposed of at the Denton landfill. Pursuant to the above concerns, this letter is being issued to request that Pratt provide proper written notification requesting that certain recyclable materials be landfilled due to market conditions that are preventing sale of said material. As part of Pratt’s response, the City of Denton requests that Pratt explain how the above breakdown in communication occurred as well as an action plan for how similar breakdowns will be prevented in the future. Additionally, the City of Denton asks that Pratt provide a brief written description of the events that led to plastics #3-7 and glass being landfilled. Finally, we request that Pratt describe the firm’s current efforts and future plans to market and sell these materials. 2 As a partner and vendor of the City of Denton, our customers and community hold Pratt Industries to the same values and standards as our organization. It is important that Pratt work to reestablish a trusting relationship with the City of Denton by being more transparent now and in the future. We look forward to your response. Sincerely, Ethan Cox Director of Solid Waste & Recycling