HomeMy WebLinkAbout01/21/1997, 4 - LEASE OF REAL PROPERTY - 45 PRADO ROAD07
council
acEnaa Repoat
CITY OF SAN LUIS OBIS PO
From: John E. Moss, Utilities Directo
Subject: Lease of Real Property - 45 Prado Road
CAO Recommendation:
January 21 1 7
1. Receive and consider report from ECOSLO entitled ECOSLO Recycling Center -
1996 Report.
2. Approve lease extension to ECOSLO for City owned real property located at 45
Prado Road for a five month period ending June 30, 1997.
3. Re -affirm the provisions of Section 11. of the lease agreement relative to the
responsibility of ECOSLO for disposal of hazardous waste received or produced as a
result of their operation.
4. Approve the relocation of ECOSLO's administrative office from the downtown to the
Prado Road site for the remainder of the current grant period.
5. Direct staff to review and provide to Council, an analysis and recommendation
regarding the possible options for the future use of the 45 Prado Road property,
including ECOSLO's proposed transfer of the leased property management to Rallco.
Discussion:
Background
On November 15, 1971 the City granted ECOSLO their first lease of the City property located at
45 Prado Road for the purpose of operating a recycling Center. Since that time ECOSLO has
maintained and operated a recycling drop -off and buy -back center at that site. The City has
granted ECOSLO a number of lease extensions and on January 16, 1996 Council approved a new
one year lease agreement with ECOSLO which expires on February 1, 1997. The current lease
agreement contains a number of provisions directed at resolving past maintenance and operations
issues at the site. One of these provisions requires Council consideration of a report addressing
relevant operational information, maintenance and condition of the property, and environmental
services provided to and or for the City, prior to renewal or extension of the lease for an
additional year.
In addition to the lease of the property at 45 Prado Road, the City has also provided ECOSLO
grant funding in consideration of ECOSLO's provision of certain professional environmental
services including maintaining a downtown office for the purpose of providing information
regarding environmental services and programs to the public, serving as a clearing -house for
environmental programs and projects of the City, and functioning as a point of contact for the
public and other environmental service providers and organizations within the county. This grant
agreement expires on June 30, 1997 and typically runs with the City fiscal year.
In November of 1996 ECOSLO consolidated their downtown and recycling center offices to a
single office located at the Prado Road site. While this action had no direct bearing on this lease
agreement, under ECOSLO's grant agreement, Council's approval of the relocation of the
Council Agenda Report - Title of Report
Page 2
downtown office to this new location is required. Council will need to consider the possible
impacts to services under ECOSLO's grant agreement. Since this was an emergency move
caused by a financial crisis within ECOSLO, staff recommends that this relocation be formally
accepted by Council through the remainder of the grant period. Staff is also recommending the
term of this lease agreement be brought into line with the term of the ECOSLO professional
services grant, since both agreements now clearly overlap.
ECOSLO Recycling Center - 1996 Report
As stated previously, the current lease agreement with ECOSLO requires Council consider
certain relevant information prior to granting an extension of the lease for another year.
ECOSLO has provided the attached, ECOSLO Recycling Center - 1996 Report, for Council
review and consideration. The report summarizes the activities of ECOSLO's recycling center
over the past year. Also addressed in the report is a description of the environmental services
provided by ECOSLO and a brief discussion of how ECOSLO is addressing the services affected
by the consolidation of ECOSLO's offices and the loss of the downtown presence.
As identified in the report, ECOSLO's recycling center operations processed approximately 935
tons of recyclable materials yielding approximately $30,000 in net revenues in support of their
environmental services and programs. During this past year, ECOSLO has taken steps to control
the off -site migration of recyclables and improve the overall appearance of the site. Other past
issues such as parking of employee vehicles and the remediation of oil contaminated soils, have
for the most part been resolved. In general, staff agrees that the appearance, maintenance and
operation of the site has improved, but there is still significant room for improvement, particularly
in control of litter migrating from the site. Council had approved funding for paving a portion of
the site, however because of potential impacts of the 40 Prado Road development on the site and
discussions with ECOSLO regarding a possible desire by ECOSLO to move away from the
recycling operation, no project was ever completed.
Lease Extension
As stated previously, staff is recommending the extension of the lease agreement with ECOSLO
for an additional five months. This extension would bring the term for the lease of this property
into conformance with the City's grant agreement to ECOSLO. While these two agreements
have historically been viewed separately, it would be appropriate that the total program of grants
and services be considered at the same time. This is especially true in light of ECOSLO's recent
consolidation of offices and services at the 45 Prado Road site.
In consideration of the proposed lease extension, Council should consider the information
presented in ECOSLO's 1996 report discussed previously. Staffs evaluation of the recycling
center operation is that it has improved and that no significant violations of the lease agreement
have occurred. General site cleanliness has improved, but could be further improved with
additional control of materials on site, especially in the drop -off area. This should be somewhat
assisted by the recent action of ECOSLO to no longer accept mixed paper recyclables such as
junk mail and magazines.
Vehicle parking and bailed recycled materials loading on the access road to the Water
Reclamation Facility and Bus Facility has been eliminated by ECOSLO and no longer presents a
traffic hazard. ECOSLO has also eliminated the processing of recyclables collected in Morro Bay
via their Rock Solid curbside recycling program through an agreement to transfer Morro Bay's
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Council Agenda Report - Title of Report
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curbside program to Rallco. This has greatly reduced the volume of materials processed at the
Prado Road site and the subsequent problems associated with processing those large volumes.
All in all, staff is comfortable with the current operations of the ECOSLO recycling center and
supports the extension of their lease for an additional five months.
Section 11. of the Lease Agreement - Hazardous Waste
Contained in ECOSLO's 1996 report is a request for assistance from the City in dealing with the
hazardous wastes left illegally at the recycling center. Staff assumes the hazardous waste in
question would be used motor oil left at the drop -off center after hours on the presumption that
ECOSLO is still accepting waste oil. In any regard, Section 11. of the current lease agreement
clearly states that the "Lessee ( ECOSLO) shall be solely responsible for the proper storage and
disposal of any hazardous waste received or produced as a result of Lessee's operations." This
provision is intended to protect the City from any liability, current or future, having to do with the
storage and disposal of hazardous waste collected or left at the site. Staff strongly recommends
the City Council deny this request from ECOSLO and instead re -affirm that the provisions of
Section 11. of the lease agreement stand. City participation or involvement with the disposal of
hazardous waste from ECOSLO's operations, including legal disposal by today's regulations,
could leave the City open to future liability.
Office Relocation
On October 3, 1996 ECOSLO notified staff of their need to close their downtown office and
proposed to relocate their administrative offices to the 45 Prado Road site. Since there did not
appear to be a conflict with their lease agreement which would prohibit the use of the property as
an administrative office site, the relocation was tentatively approved by staff. While the office
relocation does not conflict with the terms of the property lease agreement, the location of said
office is subject to the approval of the City Council under the terms of ECOSLO's professional
services grant agreement.
Provision 2.A.1. of the professional services grant agreement specifies that ECOSLO will
"maintain a public office within the City of San Luis Obispo at a location acceptable to the
Council." The agreement then stipulates the services to be provided from this office as
"disseminate information on environmental topics of interest to the community, answer walk -in
and telephone inquiries on environmental topics, and provide a lending library of books, video
tapes and slides on environmental topics to the public." The agreement also requires ECOSLO to
"display and disseminate City program information, materials and supplies at the Environmental
Center Office."
ECOSLO has been requested to identify how they would continue to provide the required
services given the relocation of the office from the downtown to 45 Prado Road. The attached
1996 Report from ECOSLO identifies that ECOSLO proposes to address this issue through an
expansion of their "outreach activities in the City's downtown area (i.e. regular presence at
Farmer's Market, regular participation in community events, and development of an information
rack at the downtown City-County Library)."
Given the extreme circumstances which have prompted ECOSLO to relocate their administrative
office, staff recommends that Council approve the relocation of ECOSLO's administrative office
at this time, for the remainder of the professional services agreement term, which concludes on
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Council Agenda Report - Title of Report
Page 4
June 30, 1997. Further consideration of the adequacy of the new location and the services
provided, as well as the other terms of any future professional services agreement with ECOSLO
can be determined at the time such agreement may be developed and executed.
Future Use of the 45 Prado Road Site
ECOSLO has indicated a desire to move away from the recycling programs and move more
toward environmental education, community outreach and advocacy. Additionally, ECOSLO has
had some recent financial difficulties which have placed them in debt. ECOSLO has submitted a
proposal for City consideration which would in essence transfer the recycling center operation to
Rallco, a Npomo based, for profit recycling operator, and in exchange ECOSLO would receive
some amount of direct compensation from Rallco.
This transfer would represent a significant shift in the intent behind the lease of the property to
ECOSLO, and as proposed would grant a long term (five year) lease to a for profit recycling
operation. As Council is aware, the granting of a no cost lease of this property to ECOSLO has
been in consideration for the environmental services it supported. If the recycling center is no
longer serving this function for ECOSLO, alternative uses of the property should be considered.
Until such time as this can be done, granting a sole - source long -term lease agreement as proposed
would be inappropriate. As stated previous, the existing lease, absent Council's granting of an
extension tonight, will expire on February 1 .
Additionally, the issues associated with the proposal from ECOSLO are far ranging, All issues,
policy implications and procedural requirements should receive ample consideration before
approval of any proposal. Issues such as: What is the highest and best use of the property absent
the ECOSLO recycling yard ?; Should any private use of the property be leased via a bid
process ?; Does ECOSLO have an economic interest to sell via a transfer of the lease ?; Is it
appropriate for the City to help ECOSLO pay off incurred debt through granting another party a
long term lease ?; Should the City consider any long term lease of the property ?. Issues such as
these and others will need to be thoroughly discussed and considered by Council.
Staff s initial recommendation to Council would be to not consider the proposal as it is in conflict
with the intended purpose of the no cost lease to ECOSLO. Additionally, staff does not see that
ECOSLO has any economic interest in the property or its use to sell. ECOSLO has indicated an
interest in continuing operation of the recycling center should the City reject the proposed
transfer. However, given the complexity of the issues raised by ECOSLO's proposal, staff is
recommending that Council provide staff direction to return with a full report on the options for
future use of the property, including ECOSLO's proposed transfer. The recommended five
month extension of the existing lease to ECOSLO will allow staff time to develop an analysis and
appropriate recommendation for Council. If Council does not wish to consider this proposal
further, Council may indicate so at this time and no additional consideration by Council will be
required until reconsideration of the next lease extension to ECOSLO in June. A copy of the
proposal from ECOSLO to transfer the operation of the recycling center to Rallco is attached.
Concurrences:
The City's Natural Resource Manager, who is now responsible for the contract relative to the
City Grant to ECOSLO, has reviewed this report and concurs with the recommended actions.
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Council Agenda Repo z Title e dlkepoh
gen, Report
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Fiscal Impact:
There is no, direct fiscal impact associated with the recommended action.
Attachments:
First Affiendingint to the,Lease of Real Property
gCOSLO Recycfing_qenter - 1996 Report
December 20, 1996 ECOSLO Proposal fdr Future!of 45 PfiddRoad Recycling Center
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FIRST AMENDMENT TO LEASE AGREEMENT
The Lease Agreement dated February 1, 1996, between the City of San Luis Obispo and
the Environmental Center of San Luis Obispo County, for the lease of City owned real property
located at 45 Prado Road, San Luis Obispo, California, is hereby amended as follows:
1. The term of the lease stated in Section 2 of said lease will hereafter be determined in
accordance with the following provisions:
"The term of this lease agreement shall be for an extension of five (5) months and
shall commence on February 1, 1997 and expire on July 1, 1997."
All other terms, provisions and conditions of said lease remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their proper
officers duly authorized.
Dated CITY OF SAN LUIS OBISPO
By:
Mayor Allen K. Settle.
Attest:
City Clerk
ENVIRONMENTAL CENTER OF
SAN LUIS OBISPO COUNTY
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ENVIRONMENTAL CENTER OF
SAN LUIS OBISPO COUNT'
ECOSLO RECYCLING CENTER:
1996 REPORT
Prepared for the City of San Luis Obispo
by Geoffrey Land, Director
Environmental Center of San Luis Obispo County
December, 1996
Festive Summary
This report covers operations and activities carried out under ECOSLO's
lease agreement with the City of San Luis Obispo (Resolution No. 8487), in
compliance with Section 14 of the lease agreement, which covers reporting
requirements to allow the City to evaluate compliance with the provision of
AB939. During 1996, ECOSLO's Recycling Center received and processed
over 900 tons of recyclable materials, and majority of which originated within
the City of San Luis Obispo. In addition, progress was made to improve
management and site cleanliness at the Recycling Center. ECOSLO would
also appreciate assistance dealing with the hazardous wastes left illegally at
the Recycling Center.
Introduction and Overview
The Environmental Center of San Luis Obispo County (ECOSLO) is a membership, non -profit
organization dedicated to protecting and enhancing the environmental quality of San Luis Obispo
County. Since 1971, ECOSLO has leased (at no charge) the City's property located at 45 Prado Road
for the purpose of operating a recycling and buyback center. Since that time, revenues generated from
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Environmental Center Mailing Address Recycling Center
967 Osos Street P.O. Box 1014 45 Prado Road
Tel. 805/544 -1777 • Fax 805/544 -1871 San Luis Obispo, CA 93406 Tel. 8051781 -3199 - Fax 805/781 -3198
the recycling yard have provided support for environmental programs in San Luis Obispo. ECOSLO's
commitment to the diversion of usable resources from the solid waste stream has meant accepting
materials (such as plastics, cardboard, metals, and used motor oil) even when it was not profitable to
do so.
1XIIIJ-1 • ys :r071 I Lei n a anr:_ P 0
In addition to managing its community Recycling Center, ECOSLO provides environmental
education and outreach, networking and referral services, and program support for regional efforts to
promote environmental sustainability. Revenues from the Recycling Center have provided funding
support for time programs. Areas of focus have included open space preservation, composting, traffic
calming, waste reduction, coastal resources protection, water conservation, creek ecology, and
household hazardous waste solutions. During 1996, revenues from the recycling operations supported
a number of environmental and community activities, including, but not limited to, the following:
Community Education and Outreach
ECOSLO's Director spoke on regional environmental issues to community groups (eg.
SLO Executives Association, SLO Kiwanis, FUERZA Leadership Program, Spring
Fest in Mission Plaza, SLO High School Assembly, SLO Chamber of Commerce
Legislative Committee), and the Latino Outreach Council. ECOSLO's Director
appeared on local radio programs (three times on KSBY, four times on KVEC's "At
Issue," twice on Dave Congleton's KVEC show), and wrote opinion pieces for
Telegram Tribune (nuclear waste disposal, support for environmental groups, methyl
bromide, coastal protection and composting).
Networldng, Partnerships and Referrals Services
ECOSLO provided support for a range of community and environmental organizations
in and around San Luis Obispo working to protect human health and the environment,
among them the Terra Foundation (technical support for series of composting
workshops), Cal Poly students and faculty (on issue of State Water Pipeline and
destruction of Stenner Creek habitat), and the Nuclear Waste Information Committee
(on issue of transportation of nuclear wastes from Diablo Canyon). ECOSLO
developed strong partnerships with other non -profit organizations to raise public
awareness about key environmental issues in the area, such as the League of Women
Voters (SLO-City Council Candidates Forum), California Rural Legal Assistance
(Methyl Bromide Forum), Nature Conservancy and Sierra Club (a county -wide Coastal
Issues Summit), ADAPT (to realize a Teen Video Project for high school students on
environmental issues), and the Earth Day Coalition of San Luis Obispo County (in
support of Earth Day '96).
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• Participation in Regional Decision - making on Environmental Issues
ECOSLO participated in a number of committees and coalitions working to improve
quality of life and protect the natural environment, such as the Open Space Financing
Task Force, the ad hoc Downtown Alternative Transportation Study Task Force, the
Nuclear Waste Management Task Force, the Friends of Measure O Committee, the
Morros Committee (intermittently), and the SLO Creek Task Force (intermittently).
ECOSLO's Director took part in the SLO Chamber of Commerce's Leadership
Program, which helped build linkages ECOSLO and area groups and individuals.
ECOSLO currently administers a city contract to promote environmental awareness and stewardship
programs in San Luis Obispo, which involves the provision of other, more specific services related to
the terms of the contract.
ECOSLO's Recycling Center
ECOSLO's Recycling Center is comprised on two principal components: a Donation
Center and a Buyback Operation. The Recycling Center is licensed with the California
Department of Conservation, Recycling Division. (ECOSLO's Community Recycling Program
#0001 is the oldest in the state of California.)
The Donation Center is a convenient 24 -hour drop -off area where the public can donate
recyclable materials such as aluminum cans, glass, cardboard, plastic, tin cans, newspaper and tin
foil. In November, 1996, ECOSLO ceased to accept magazines, junk mail and mixed paper
through its Donation Center. Through our donation services, individuals not having curbside
recycling pickup can divert their recyclables from the landfills. Also, those wishing to support
ECOSLO can do so by dropping off their recyclable items at the drop -off location.
The Buyback Operation involves the purchase of recyclable materials and California
redemption items. ECOSLO pays cash for aluminum cans, PET plastic, and redemption glass.
The hours for the Buyback Operation are 9am - 4pm, Tuesdays through Saturdays.
ECOSLO's most recent lease agreement with the City extends from February 1, 1996
through January 31, 1997. For simplicity s sake, this report will cover the Recycling Center's
activities from January through December, 1996. During this period, ECOSLO has enjoyed
strong and constructive relations with the City, and we have made progress in addressing
concerns that have previously been raised by City staff and Council.
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B=ding Center Revenues and Assets
During the first nine months of 1996, the difference between ECOSLO's total materials
total materials sales (CRV, donation and metals) and our "cost of goods sold," or buyback total,
was $101,000. The total for 1996 is expected to exceed $120,000. ECOSLO's 1996 operating
costs for the yard operation are expected to total $90,000, resulting in net revenues of
approximately $30,000. Those revenues are in turn "recycled" back into ECOSLO's programs
and services, which serve to protect and enhance the natural environment through community-
based problem - solving.
ECOSLO's Recycling Center assets include one forklift, two down- stroke balers, one
truck, one kiosk and cash register, two trailers, miscellaneous office equipment, two industrial
scales and 40 metal storage bins, representing an estimated asset resale value of $19,000.
As a result of years of used motor oil recycling and inadequate safeguards, ECOSLO was
faced with oil- contaminated soil at two separate sites at its Recycling Center. ECOSLO stopped
accepting used motor oil in August, 1995. During late 1995 and early 1996, approximately 120
yards of oil- tainted soil were excavated and treated onsite using bioremediation techniques
(application of oil- eating microbes). A licensed geologist (Leo Fedewa) tested the soil and
determined it to be clean and below the "action level" of 100 parts per million. In September, the
soil was removed from the site. The total cost of the excavation, bioremediation and removal has
exceeded $25,000, which has been bome entirely by ECOSLO.
Operational Improvements
r
Despite difficult financial circumstances, ECOSLO has worked during 1996 to upgrade
and improve the operations at the Recycling Center. Since February, new management staff has
been committed to running a safe, clean, attractive and efficient recycling. operation at 45 Prado
Road. The elimination of the Rock Solid curbside operation has given way to a simpler, cleaner
buyback and donation operation. As a result, there has been less wind -borne debris blowing
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offsite and an overall more attractive Recycling Center. We continue to work with the City to
investigate options for site improvement.
Materials Volumes
During 1996, ECOSLO received and processed approximately 935 tons of recyclable
materials through its Recycling Center at Prado Road. (See Table A, below.) ECOSLO's
Buyback Operation accounts for the vast majority of materials received and processed at the
Recycling Center.
ECOSLO's Recycling Center processes aluminum cans, glass bottles, plastic, mixed paper,
newspaper, cardboard, and a limited number of scrap metals. By tonnage, glass and cardboard
represent the highest volume materials. (See Table B, below.) Recently, ECOSLO has moved to
limit the donation of certain types of materials (polystyrene, magazines, junk mail, #3 -7 plastic)
that represent a financial burden for the recycling operation. We are recommending that these
materials be recycled through curbside service. .
Table A: Total Tonnage (Buyback and Donation Combined)
Month
Tonnage
January
87.4
February
73.2
March
80.3
April
75.8
May
77.1
June
82.4
July
81.7
August
77.5
September
71.9
October
79.1
November
75.2
December
73.4"
Total 19% 935
(continued)
P
*estimated
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Table B: 1996 Materials Volumes (by material)
Material
Volume (tons)
Polystyrene
1
Mixed Paper
35
Glass
358
Aluminum
94
Plastic
17
Newspaper
154
Cardboard
244
Scrap Metal
32
Greenwaste*
U
All materials
am
*Greenwaste was phased out with the Rock Solid curbside recycling operation m Morro Bay.
Materials Origins
The majority of the materials of materials processed at ECOSLO's Recycling
Center originate within the City of San Luis Obispo. Two informal surveys conducted in
April and August revealed that 89% of the material processed through ECOSLO's
Buyback Operation has its origin within the City of San Luis Obispo. The other 11%
originates elsewhere in San Luis Obispo County (unincorporated areas around San Luis
Obispo, 5 %; Morro Bay, 1 %; Arroyo Grande, 1 %; Pismo Beach, 1 %; other, north
county, 2 %; other, south county, 1 %). Similarly, the majority of materials received.
through the Donation Center come from the City of San Luis Obispo. Although no
formal survey has been conducted, we have observed that a larger percentage of the
donation items (perhaps as much as 25 %) come from unincorporated areas outside the
City limits in areas that do not have established curbside recycling services.
ECOSLO manages all hazardous materials in accordance with its Safety and
Handling Plan for Hazardous Materials (as defined by Federal and State Law) and its
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Hazard Communication Program as part of our Injury Illness Prevention Program (IIPP)
approved by Cal/OSHA. Section 11 of the lease agreement states that "Lessee shall be
solely responsible for the proper storage and disposal of any hazardous waste received
or produced as a result of Lessee's operations."
Since we stopped accepting used motor oil in August, 1995, ECOSLO has
posted several signs indicating that it is unlawful to leave motor oil, paint, batteries, and
other hazardous wastes at our Recycling Center. Nevertheless, we continue to receive
small quantities of hazardous materials at our donation area. We have established a
small, covered, interim storage area for hazardous materials dropped illegally at our
recycling yard. On two occasions we have scheduled haz -waste pick ups with the
Integrated Waste Management Authority. ECOSLO would appreciate any assistance
from the City in order to facilitate the timely and proper disposal of the hazardous
materials left at our facility.
In November, 1996, ECOSLO made the decision to consolidate our
administrative operations at the Recycling Center location as part of an ongoing effort to
improve and streamline the organization during difficult financial times. The decision
was communicated to City staff in two letters of correspondence (attached, dated
October 3 and October 15), and ECOSLO discussed the plans with City staff (John
Moss, Ken Hampion, Neil Havlik and Judith Lautner) beforehand and found the move to
be compatible with our lease agreement with the City. ECOSLO has taken steps to
address the contractual implications of the consolidation (primarily the loss of a
downtown presence) by expanding our outreach activities in the City's downtown area
(i.e. regular presence at Farmer's Market, regular participation in community events, and
development of an information rack at the downtown City-County Library).
ECOSLO has worked to ensure that our recycling operations in no way
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interfere with traffic on Prado Road or the Water Reclamation Facility access road. All
of our on and off - loading takes place within the property boundaries, and all ECOSLO
equipment is kept on site as well. We continue to work towards a point where we can
ensure that employee vehicles can be parked within the boundaries of the property.
Significant progress has been made to control materials received and processed
at our recycling facility. We have moved all of our donation bins inside the fence line,
and limited the number of paper and plastic we accept in the donation area. Same day
processing practices (when possible) have greatly reduced off -site migration of plastics,
paper and other wind -blown debris.
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December 20, 1996
To: Ken Hampian, Assistant CAO
John Moss, Utilities Director
City of San Luis Obispo
e
4� k5lx
ENVIRONMENTAL CENTER OF
SAN LUIS OBISPO COUNT`"
From: Geoffrey Land, Executive Director
Frank Seiple, Chair, ECOSLO Board of Trustees
Re: Proposal for Future of 45 Prado Road Recycling Center
On behalf of the Environmental Center of San Luis Obispo County ( ECOSLO), we would
like to present to you a proposal for future recycling operations at the City's property located at
45 Prado Road which would, we believe, benefit ECOSLO, the City and the residents of San Luis
Obispo. We would request that this proposal be placed on the Council's agenda for the meeting
of January 21, 1997, the date slated for consideration of ECOSLO's lease agreement.
Background and Context
Since 1971, ECOSLO has leased at no charge the City's property located at 45 Prado
Road for the purpose of operating a recycling and buyback center. ECOSLO was the first
recycling operation in the county and the first certified Community Recycling Program in
California. The waived lease charges have reflected the City's recognition that revenues generated
from ECOSLO's recycling operations provide support for community environmental programs in
San Luis Obispo, such as free public forums, newsletters, lectures, workshops, conservation
projects and educational outreach programs. (For a more detailed description of ECOSLO's
programs and services, please see Statement of Purpose, attached.)
The Recycling Center has been more than a business to ECOSLO: our commitment to the
diversion of usable resources from the solid waste stream has meant accepting materials (such as
plastics, cardboard, metals, and used motor oil) even when it was costly or not profitable to do so.
(For example, a recent clean-up of oil tainted soil resulted in costs exceeding $25,000, all of
which were borne by ECOSLO.) A 24 -hour Donation Center has allowed for the diversion of
materials from unincorporated areas of the county without curbside recycling services. During its
Environmental Center
967 Osos Street
Tel. 805/544 -1777 • Fax 805/544 -1871
Mailing Address
P.O. Box 1014
San Luis Obispo, CA 93406
Recycling Center
45 Prado Road
Tel. 805(181 -3199 • Fax 805/781-3198
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25 year history at the Prado Road site, ECOSLO has built up a strong and loyal customer base, as
evidenced by the proliferation of the "I Recycle with ECOSLO" bumper- stickers, as well as the
steady customer traffic at the yard, which averages over one thousand customers every month.
Since 1971, in no small part owing to ECOSLO's educational efforts, recycling has taken
firm hold in San Luis Obispo County. There are a dozen or so buyback centers throughout the
county which pay the public cash for recyclable materials. For -profit companies compete for
recycling contracts in virtually every city in the county. An Integrated Waste Management
Authority oversees the county's solid waste diversion programs, sponsoring hazardous waste
collection events and classroom -based education programs throughout the county. In San Luis
Obispo, residents benefit from a municipal curbside recycling operation which picks up most kinds
of recyclables and yard waste.
The Value of the Prado Road Recycling Center
We believe the ECOSLO Recycling Center provides a range of benefits to the community,
the environment and the City of San Luis Obispo. Continued diversion of recyclables through the
center supports the City's diversion requirements under A13939, which requires that the City
achieve 50% reduction in its solid waste flow (baseline 1990) by the year 2000. The Prado Road
Recycling Center continues to enjoy strong support from thousands of regular customers, despite
the virtual absence of formal advertising. During 1996, the Center diverted approximately 935
tons of reusable materials from area landfills, helping satisfy the City's solid waste diversion
efforts. (Please see the ECOSLO Recycling Center 1996 Report, attached.)
Each year our buyback operation pays out approximately $300,000 to our customers, the
vast majority (89%) of which are residents of San Luis Obispo, who return their revenues into the
local economy. All of ECOSLO's employees are residents of San Luis Obispo, and their wages
are recycled back into local businesses. In addition, each month over 500 hours of community
service work hours are contributed to the City's recycling goals at ECOSLO's Recycling Center.
Community services workers complete their community service obligations with a better
understanding of the importance of recycling. The Recycling Center supports the City's
educational goals by responding to hundreds of phone calls every week concerning recycling and
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environmental matters.
Rye ycling Venter Revenues and Assets
Fully licensed with the California Department of Conservation, ECOSLO's Recycling
Center is comprised of two principal components: a Donation Center and a Buyback Operation.
The Buyback Operation, which involves the purchase of recyclable materials and California
redemption (CRV) items, accounts for the vast majority of materials received and processed at the
Recycling Center. During the first nine months of 1996, the difference between ECOSLO's total
materials total materials sales (CRV, donation and metals) and our "cost of goods sold," or
buyback total, was $101,000. The total for 1996 is expected to exceed $120,000. ECOSLO's
1996 operating costs for the yard operation are expected to total $90,000, resulting in net
revenues.of approximately $30,000. Those revenues are in turn "recycled" back into ECOSLO's
programs and services, which serve to protect and enhance the natural environment through
community -based problem - solving. (Please refer to the ECOSLO Recycling Center 1996
Report, attached, .page 2, for a more detailed description of the services supported by yard
revenues.) ECOSLO's Recycling Center assets include one forklift, two down - stroke balers, one
truck, one kiosk and cash register, two trailers, miscellaneous office equipment, two industrial
scales and 40 metal storage bins, representing an estimated asset resale value of $19,000.
ECOSLO's Plans for the Future
In January, 1996, ECOSLO received unanimous support from the City Council for its
current lease agreement with the City, which extends through January, 1997. ECOSLO has
honored the lease agreement and made significant progress in addressing prior concerns about
yard management. The oil spill was cleaned up, the yard is cleaner, and a number of operational
improvements have been adopted. (Please refer to 1996 Report, attached, for specifics.)
ECOSLO is proud of the role we have played in support of the city and county's recycling
initiatives. During recent years, however, increased competition in the recycling industry has
meant tighter profit margins for the materials handling through our yard. More recently, a costly
oil spill and declining resale prices for materials have cut deeply into the yard's already limited
# -/7
4
revenues. While still producing revenues, ECOSLO's recycling operations have required a greater
degree of supervision and oversight. Given ECOSLO's principal mission of community education
and environmental advocacy, it is increasingly clear that there are significant opportunity costs to
running the Recycling Center. We feel that ECOSLO would be even more effective as a regional
resource center if it dedicated its energies toward environmental education, community outreach
and advocacy.
ECOSLO is willing and able to continue operating _its Recycl ne Center. However, we
would first offer the options outlined below for the City's consideration. We believe these
proposals will benefit ECOSLO, the City and residents of San Luis Obispo, maintain continuity in
the recycling operations, and sustain the good will and community support associated with the
Prado Road Recycling Center. If the City is unable to approve these proposals, we would ask
that the City move to grant ECOSLO a five -year lease for the Prado Road property, in order for
us to justify certain key yard improvement expenditures, such as fence improvements, improved
office conditions, rain protection measures, and a new forklift.
ECOSLO's Proposal for Management Changes
ECOSLO would propose that the City approve a change in management of the Recycling
Center at 45 Prado Road from ECOSLO to a for -profit company with proven experience
managing buyback operations. We ask that the City approve a new lease for the 45 Prado Road
property, with the successor company, commencing on February 1, 1997 (the day following the
end of ECOSLO's current lease agreement) and terminating on January 31, 2002 (for a total of
five years), with a rent of $500 /month. The approval of a five year lease is necessary to provide a
degree of certainty for the new lessee, ensuring that the company cover its start-up costs and
allowing it to recoup its initial investment in site improvements. ECOSLO proposes that the City
charge $500 /month under the new lease agreement, to ensure lease revenues for the City while
supporting the continued use of the site for recycling services.
In order to assess a variety of options, ECOSLO approached several recycling companies
about the possibility of assuming management of the yard. Two companies, RALCCO and San
Luis Garbage Co., have put forth tentative offers to ECOSLO for the recycling operation which
5
are consistent with the scenario outlined above. Naturally, these offers are contingent upon City
approval. (See more detailed description of offers, below.) Each company has offered ECOSLO
financial compensation for tangible yard assets, as well as the intangible "good will" value of the
recycling operation. (See offers, outlined below.) Both RALCCO and San Luis Garbage Co. are
well established companies with proven track records of success managing buyback recycling .
operations.
San Luis Garbage Offer
Tentative Offer: 18,000 up front for assets and "good will"
+ 10% of net revenues for first two years
Conditions/
Assumptions: City approval of 5 year lease for 45 Prado Rd. property @$500 /mo.
Offer would only include buyback kiosk and scales
RALCCO Offer (See attachment for more details)
Tentative Offer: $35,000 for assets and "good will" over 12 months
Conditions/
Assumptions: City approval of 5 year lease for 45 Prado Rd. property @$500 /mo.
Offer includes all yard assets
It should be noted that these offers, while made in good faith, are not set in stone, and
subject to ongoing discussions among the various interests represented. Should the approve this
proposal, ECOSLO would enter into more formal discussions regarding compensation for
ECOSLO's ongoing concern.
Advantages of a Change in Management
ECOSLO is willing and able to continue its recycling operation in an efficient, clean and
safe manner. However, our proposal for a change. in Recycling Center management offers several
mutual benefits for ECOSLO, the City, and the residents of San Luis Obispo. Itwould provide
the City with lease revenues ($30,000 under the proposed option) that it does not receive
currently for the Prado Road site. It would encourage the diversion of usable materials from the
landfills, provide a valuable service to citizens who seek cash for their recyclables, and maintain
continity in the existing operations. Yard management by RALCCO or SLO Garbage would
improve overall site cleanliness and appearance for the following reasons: 1) donation/drop -off
services, which account for much of the off -site debris, would be eliminated; 2) on -site processing
would be greatly reduced or eliminated, in favor of processing at 'home facilities' better equipped
for the purpose; and 3) site improvements would augment paving and fencing at the site. Finally,
the change would allow for ECOSLO to concentrate its efforts on other means of generating
program revenues, and channel its energies into environmental education and advocacy services.
Conclusion
For the past 25 years, the City of San Luis Obispo has recognized the value of ECOSLO's
tenancy on the Prado Road site and the reinvestment of recycling revenues to promote responsible
stewardship of the community's valuable natural resources. The city's "rent subsidy" has been
returned to the community in the form of educational services, support for a network of
community -based non -profit groups, sponsorship of free community events, establishment of used
oil recycling centers, heightened public awareness about solid waste diversion goals, and many
other services. In this way, the 25 -year partnership between ECOSLO and the City has mutually
benefitted ECOSLO, the City and the community at large.
We believe there is a benefit to the City, as there has been over the years, in ECOSLO's
continuing operations as a community -based environmental education and advocacy organization.
The current assets of our Recycling Center are both tangible (equipment, vehicles, etc.) and
intangible ( "good will," customers, etc.). ECOSLO has dedicated the past 25 years to building
community good will and a loyal customer base at our Recycling Center. The conversion of our
Recycling Center assets —both tangible and intangible —will allow ECOSLO to continue our
services to the community while focusing on education, outreach and environmental advocacy.
Continued recycling operations under this proposal at 45 Prado Road will provide the city with
continued diversion of materials from the landfill, as well as potential rental income. Our
recommendation that the City establish a five -year lease with a successor business at a rent of
$500 per month will permit the successor company to recoup the costs of its initial investment and
necessary site improvements.
Past discussions at the staff and Council have included the idea that the Prado Road site
#.- OW
could be offered to the "highest bidder" for recycling operations. The question this raises is: what
is being put out for bid? For example, if the City were to terminate ECOSLO's lease -- requiring us
to vacate the property and remove our materials and equipment —and then advertise the site to for-
profit entities, ECOSLO could. not compete with for - profits offering rent, since we return our
"rent" back to the community through our programs and services. Such a bidding situation would
exclude ECOSLO from participation in the management transfer process. It would also deprive
ECOSLO of the opportunity to recoup the good will asset value of our business, built and
nurtured by committed staff and volunteer corps over the past 25 years. On the other hand, our
proposal for the preservation of the yard operation as a going concern, with a transfer in
management, maximizes the value of the assets for both the City and ECOSLO. In this way, a
consensual management transfer will ensure continuity in the site's recycling services, and
maintain the community good will which is essential to the future value of the recycling
operations.
Thank you for your consideration of this proposed course of action. We would welcome
the opportunity to work with the City toward a solution that preserves the strong partnership
between ECOSLO and the City of San Luis Obispo.
Sincerely,
Geoffrey Land / Fr Seigle -
Executive Director Chjdr, Board of Trustees
cc: Neil Havlik, Natural Resources
attached: ECOSLO Statement of Purpose
1996 Recycling Center Report
Letters to City regarding office consolidation
RALCCO outline of plans for recycling operations
51r
ENVIRONMENTAL CENTER OF
OVERVIEW SAN LUIS OBISPO COUNTY
STATEMENT OF PURPOSE
The Environmental Center of San Luis Obispo County ( ECOSLO) is a non- profit
[501(c)(3)], membership organization dedicated to environmental education, problem
solving and advocacy. ECOSLO serves as a community resource center working to
strengthen collaborative initiatives intended to protect human health and the environment
throughout the Central Coast region. ECOSLO works closely with environmental
organizations, government and community groups to promote regional sustainability and
innovative approaches to resource management.
ECOSLO's primary areas of attention are coastal resources protection; progressive
waste management/recycling options; watershed, habitat and open space protection;
pollution prevention and cleanup; sustainable development and land use; altemative
transportation; and environmental education.
As a regional resource center, ECOSLO actively supports dozens of groups, individuals
and projects working on a daily basis to promote sustainable solutions to the problems of
pesticide use, nuclear waste, coastal access, creek restoration, toxic waste, offshore oil
development and onshore oil spills, water use, and development sprawl.
Founded in 1971 and currently celebrating its 25th anniversary, ECOSLO has grown from
being a volunteer -run recycling center to being the county's only non -profit environmental
resource and recycling center. ECOSLO operates the county's longest running and only
non -profit Recycling Center (45 Prado Road in San Luis Obispo), which helps divert
usable materials from the waste stream while returning revenues to the community in the
form of environmental programs and services.
ECOSLO CURRENTLY PROVIDES THE FOLLOWING SERVICES TO THE
COMMUNITIES OF SAN LUIS OBISPO COUNTY:
• a downtown, walk -in Environmental Center office which offers information on current
projects, issues, plus a lending library of books, and videos
• a Recycling Center whose revenues are used to support ECOSLO's environmental
services and programs
• informed advocacy and practical problem solving to support responsible land use
planning, pollution cleanup, toxic use reduction, solid waste diversion, and sustainable
development in San Luis Obispo County and the Central Coast region
• referral, networking and information services for dozens of active, communit"ased
environmental groups in San Luis Obispo County
• a toll free Recycling and Household Hazardous Waste Hotline
• regular public forums, presentations, workshops and conferences to educate and
involve the community concerning key environmental topics
Environmental Center trailing Address Recycling Center
I&ENosstimt J [ ay M" (kVz VI f}_ P.O. Box 1014' 45 Prado Road
Tel. 805/544 -1777 • Fax 905/544 -1871 San I.uk Obispo. CA 93406 Tel. R05f781 -3199 • Fax 805/781 -3198
ECOSLO Statement of P se April 1996
AMONG ECOSLO'S MOST NOTEWORTHY PAST ACHIEVEMENTS ARE:
• pioneered progressive recycling practices in San Luis Obispo County by establishing
the county's first recycling center, spearheading used motor recycling, promoting
curbside recycling, publishing recycled products guides, and school outreach programs
(1971 to present)
• played a key role in promoting transportation alternatives for San Luis Obispo City
and County, resulting in expanded bus systems, bike lanes and carpooling incentives
(1970's -1994)
• leadership role in grassroots campaigns to protect the Central Coast from offshore oil
production activities, ensure cleanup of oil spills, and promote the establishment of a
Central Coast National Marine Sanctuary (1985 to present)
• development and implementation of an innovative, community —based curbside
recycling program in Morro Bay (1993 -95)
ECOSLO possesses an extremely devoted staff and a diverse and active Board of
Trustees. ECOSLO has made an effort to recruit to its staff and board women and people
of color, who presently constitute 3/4 of ECOSLO's staff.
ECOSLO works closely with the City of San Luis Obispo to broaden public awareness
about, and stewardship for, the natural environment in and around San Luis Obispo.
ECOSLO provides advisory and support services to the City on a range of
environmental programs, such as protection of San Luis Obispo Creek, establishment of
a Greenbelt around the City, annexations, and other natural resource issues.
OTHER CONTRACTUAL SERVICES PROVIDED By ECOSLO ARE ...
t
• promotion of residential and business participation in curbside recycling in Morro Bay
• coordination of a series of backyard composting workshops to educate the public about
green waste recycling systems (in partnership with the regional waste management
authority and the Terra Foundation)
• management of the county's first on —line materials exchange for construction and
demolition materials (in partnership with the regional waste management authority and
Steven McGrath Associates)
Recently, ECOSLO has been working to expand its outreach and educational initiatives
to promote sustainable alternatives to pesticides, especially methyl bromide, an acutely
toxic chemical used widely in strawberry production. ECOSLO is developing an informal
pesticide /sustainable agriculture network and actively strengthening our links to the Latino
community.
ECOSLO currently provides support for a Summer 1996 environmental "Teen Video"
project for at—risk high school students.
-J.5 3
U
ECOSLO Statement of P se April 1996 3
ECOSLO is represented on the Morros Committee, established to develop a
management plan for the Morros chain of volcanic peaks stretching from San Luis Obispo
to Morro Bay, and the Open Space Financing Task Force of the City of San Luis Obispo.
ECOSLO relies on membership support, service contracts, small grants, and Recycling.
Center revenues to cover its operational costs. ECOSLO has never deceived funding
support from private foundations.
We welcome membership support, financial contributions, volunteer and In —kind support.
All contributions are tax deductible.
ECOSLO is managed by an Executive Director and a paid staff of 12 employees, the
majority of which operate the Recycling Center. ECOSLO is governed by its Board of
Trustees.
For more information contact Geoffrey Land (Director) or Amy Shore (Environmental
Services Coordinator) @ (805) 544 -1777 (tel) and 544 -1871 (fax). ECOSLO's
environmental. center and business office is located at 1124 Nlpomo Street, Suite A, In
downtown San Luis Obispo. Our office hours are 10am - 4pm, Monday through Friday.
ECOSLO's e—mail address is ecoslo @slonet.org.
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ENVIRONMENTAL CENTER OF
SAN LUIS OBISPO COUNTY
ECOSLO RECYCLING CENTER:
1996 REPORT
Prepared for the City of San Luis Obispo
by Geoffrey. Land, Director
Environmental Center of San Luis Obispo County
December, 1996
Execrative Summon
71» s report covers operations and activities carried out corder ECOSLO's
lease agreement with the City of San Luis Obispo (Resolution No. 8487), in
compliance with Section 14 of the lease agmement, which covers reporting
requirements to allow the City to evaluate compliance with the provision of
I AB939. During 1996, ECOSLO's Recycling Center received ayrd processed
over 900 foes of recyclable materials, and majority of which originated within
the City (?f San Luis Obispo. hr addition, progress was made to improve
management aid site cleanliness at the Recycling Center. ECOSLO would
also appreciate assistance dealing it the hazardorts wastes left illegally at
tl?e Recjrh»g Cemer.
Introduction nnd Overvi
The Environmental Center of San Luis Obispo County (ECOSLO) is a membership, non -profit
organization dedicated to protecting and enhancing the environmental quality of San Luis Obispo
County. Since 1971, ECOSLO has leased (at no charge) the City's property located at 45 Prado Road
for the purpose of operating a recycling and buyback center. Since that time, revenues generated from
ironmental Center
Osos Street
RI15 /544.1777 • Fax R11.5/514- IR71
— Plaiting Address
P.O. Rns TO 14
San I.ni.c (lbign). CA 43406
Recycling Center
45 Prado Road �– a
TO. 9051781 -3199 • Fox 805/781 -3198
the recycling yard have provided support for environmental programs in San Luis Obispo. ECOSLO'Iv
commitment to the diversion of usable resources from the solid waste stream has meant accepting
materials (such as plastics, cardboard, metals, and used motor oil) even when it was not profifable to
do so.
In addition to managing its community Recycling Center, ECOSLO -provides environmental
education and outreach, networking and referral services, and program support for regional efforts to.
Promote environmental sustainability. Revenues from the Recycling Centet have provided flurding
support for these programs. Areas of focus have included open space preservation, composting, traffic
calming, waste reduction, coastal resources protection, water conservation, creek ecology, and
household hazardous waste solutions. During 1996, revenues from the recycling operations supported
a number of environmental and community activities, including, but not limited to, the following.
• Community Education and Outreach
ECOSLO's Director spoke on regional environmental issues to community groups (eg.
SLO Executives Association, SLO Kiwanis, FUERZA Leadership Program, Spring
Fest in Mission Plaza; SLO High School Assembly, SLO Chamber of Commerce
Legislative Committee), and the Latino Outreach Council. ECOSLO's Director
appeared on local radio programs (three times on KSBY, four times on KVEC's "At
Issue," twice on Dave Congleton's KVEC show), and wrote opinion pieces for
Telegram Tribune (nuclear waste disposal, support for environmental groups, methyl
t t bromide, coastal protection and composting).
• Networking, Partnerships and Referrals Services
ECOSLO provided support for a range of community and environmental organizations .
in and around San Luis Obispo working to protect human health and the environment;
among them the Terra Foundation (technical support for series of composting
workshops), Cal Poly students and faculty (on issue of State Water Pipeline And
destruction of Stenner Creek habitat), and the Nuclear Waste Information Committee
(on issue of transportation of nuclear wastes from Diablo Canyon). ECOSLO
developed strong partnerships with other non -profit organizations to raise public
awareness about key environmental issues in the area, such as the League of Women
Voters (SLO City Council Candidates Forum), California Rural Legal Assistance
(Methyl Bromide Forum), Nature Conservancy and Sierra Club (a county -wide Coastal
Issues Summit), ADAPT (to realize a Teen Video Project for high school students on
environmental issues), and the Earth Day Coalition of San Luis Obispo County (in .
support of Earth Day '96).
• Participation in Regional Decision - making on Environmental Issues
ECOSLO participated in a number of committees and coalitions working to improve
quality of life and protect the natural environment, such as the Open Space Financing
Task Force, the ad hoc Downtown Altemative Transportation Study Task Force, the
Nuclear Waste Management Task Force, the Friends of Measure O Committee, the "
Morros Committee (intermittently), and the SLO Creek Task Force (intermittently).
ECOSLO's Director took part in the SLO Chamber of Commerce's Leadership
Program, which helped build linkages ECOSLO and area groups and individuals.
ECOSLO currently administers a city contract to promote environmental awsireness and stewardship
programs in San Luis Obispo, which involves the provision of other, more specific services related to
the terms of the contract.
ECOSLO's Recycling Center
ECOSLO's Recycling Center is comprised on two principal components: a Donation
Center and a Buyback Operation. The Recycling Center is licensed with the California
Department of Conservation, Recycling Division. (ECOSLO's Community Recycling Program
I
#0001 is the oldest in the state of California.)
The Donation Center is a convenient 24 -hour drop -off area where the public can donate
recyclable materials such as aluminum cans, glass, cardboard, plastic, tin cans, newspaper and tin
foil. In November, 1996, ECOSLO ceased to accept magazines, junk mail and mixed paper
through its Donation Center. Through our donation services, individuals not having curbside
recycling pickup can divert their recyclables from the landfills. Also, those wishing to support ;
ECOSLO can do so by dropping off their recyclable items at the drop -off location.
The Buyback Operation involves the purchase of recyclable materials and California
redemption items. ECOSLO pays cash for aluminum cans, PET plastic, and redemption glass.
The hours for the Buyback Operation are 9am - 4pm, Tuesdays through Saturdays.
ECOSLO's most recent lease agreement with the City extends from February 1, 1996
through January 31, 1997. For simplicity's sake, this report will cover the Recycling Center's
activities from January through December, 1996. During this period, ECOSLO has enjoyed
strong and constructive relations with the City, and we have made progress in addressing
concerns that have previously been raised by City staff and Council.
3
./'s?
Recycling Center Revenues and Assets
During the first nine months of 1996, the difference between ECOSLO's total materials
total materials sales (CRV, donation and metals) and our "cost of goods sold," or buyback total,
was $101,000. The total for .1996 is expected to exceed $120,000. ECOSLO's 1996 operating
costs for the yard operation are expected to total $90,000, resulting in net revenues of
approximately $30,000. Those revenues are in turn "recycled" back into ECOSLO's programs
and services, which serve to protect and enhance the natural environment through community-
based problem - solving.
ECOSLO's Recycling Center assets include one forklift, two down - stroke balers, one
truck, one kiosk and cash register, two trailers, miscellaneous office equipment, two industrial
scales and 40 metal storage bins, representing an estimated asset resale value of $19,000. 1
911 Spill Clean up
As a result of years of used motor oil recycling and inadequate safeguards, ECOSLO was
faced with oil - contaminated soil at two separate sites at its Recycling Center. ECOSLO stopped
accepting used motor oil in August, 1995. During late 1995 and early 1996, approximately 120
yards of oil- tainted soil were excavated and treated onsite using bioremediation techniques
(application of oil- eating microbes). A licensed geologist (Leo Fedewa) tested the soil and
determined it to be clean and below the "action level" of 100 parts per million. In September, the
soil was removed from the site. The total cost of the excavation, bioremediation and removal has
exceeded $25,000, which has been borne entirely by ECOSLO.
OoerationalImprovements
Despite difficult financial circumstances, ECOSLO has worked during 1996 to upgrade
and improve the operations at the Recycling Center. Since February, new management staff has
been committed to running a safe, clean, attractive and efficient recycling operation at 45 Prado
Road. The elimination of the Rock Solid curbside operation has given way to a simpler, cleaner
buyback and donation operation. As a result, there has been less wind -borne debris blowing
CM
00
offsite and an overall more attractive Recycling Center. We continue to work with the City to
investigate options for site improvement.
Materials Volumes
During 1996, ECOSLO received and processed approximately 935 tons of recyclable
materials through its Recycling Center at Prado Road. (See Table A, below.) ECOSLO's
Buyback Operation accounts for the vast majority of materials received and processed at the
Recycling Center.
ECOSLO's Recycling Center processes aluminum cans, glass bottles, plastic, mixed paper, .
newspaper, cardboard, and a limited number of scrap metals. By tonnage, glass and cardboard
represent the highest volume materials. (See Table B, below.) Recently, ECOSLO has moved to
limit the donation of certain types of materials (polystyrene, magazines, junk mail, #3-7 plastic)
that represent a financial burden for the recycling operation. We are recommending that thest
materials be recycled through curbside service.
Table A: Total Tonnage (Buyback and Donation Combined)
Month Tonnage
January 87.4
February _ 73.2
March 80.3 -
t t April 75.8
May 77.1
June 82.4
July 81.7
August 77.5
September 71.9
October 79.1
November 75.2
December 73.4"
Total 1996 935
*estimated
(continued)
5
Table B: 1996 Materials Volumes (by material)
Material Volume (tons)
Polystyrene
1
Mixed Paper
35
Glass
358
Aluminum
94
Plastic
17
Newspaper
154
Cardboard
244
Scrap Metal
32
Greenwaste"
0
All materials
935
*Greenwaste was phased out with the Rock Solid curbside recycling operation in Morro Bay.
Materials Origins
The majority of the materials of materials processed at ECOSLO's Recycling
Center originate within the City of San Luis Obispo. Two informal surveys conducted in
April and August revealed that 89% of the material processed through ECOSLO's
Buyback Operation has its origin within the City of San Luis Obispo. The other 11%
t toriginates elsewhere in San Luis Obispo County (unincorporated areas around San Luis
Obispo, 5 %; Morro Bay, 1 %, Arroyo Grande, 1 %; Pismo Beach, 1 %; other, north
county, 2 %; other, south county, 1%). Similarly, the majority of materials received
through the Donation Center come from the City of San Luis Obispo. Although no
formal survey has been conducted, we have observed that a larger percentage of the
donation items (perhaps as much as 25 %) come from unincorporated areas outside the
City limits in areas that do not have established curbside recycling services.
Hazardous Materials
ECOSLO manages all hazardous materials in accordance with its Safety and
Handling Plan for Hazardous Materials (as defined by Federal and State Law) and its
R,
11-30
Hazard Communication Program as part of our Injury Illness Prevention Program (IIPP)
approved by Cal /OSHA. Section 1 I of the lease agreement states that "Lessee shall be
solely responsible for the proper storage and disposal of any hazardous waste received
or produced as a result of Lessee's operations."
Since we stopped accepting used motor oil in August, 1995, ECOSLO has
posted several sighs indicating that it is unlawful to leave motor oil, paint, batteries, and
other hazardous wastes at our Recycling Center. Nevertheless, we continue to receive
small quantities of hazardous materials at our donation area. We have established a
small, covered, interim storage area for hazardous materials dropped illegally at our
recycling yard. On two occasions we have scheduled haz -waste pick ups with the
Integrated Waste Management Authority. ECOSLO would appreciate arry assistance
from the City in order to facilitate the timely and proper disposal of the hazardous
materials IeR at our facility.
Mice Consolidation
In November, 1996, ECOSLO made the decision to consolidate our
administrative operations at the Recycling Center location as part of an ongoing effort to
improve and streamline the organization during difficult financial times. The decision
was communicated to City staff in two letters of correspondence (attached, dated
t
October 3 and October 15), and ECOSLO discussed the plans with City staff (John
Moss, Ken Hampion, Neil Havlik and Judith Lautner) beforehand and found the move to
be compatible with our lease agreement with the City. ECOSLO has taken steps to
address the contractual implications of the consolidation (primgrily.the loss of a
downtown presence) by expanding our outreach activities in the City's downtown area
(i.e. regular presence at Farmer's Market, regular participation in community events, and
development of an information rack at the downtown City- County Library).
Traffic and Litter Control
ECOSLO has worked to ensure that our recycling operations in no way
7
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interfere with traffic on Prado Road or the Water Reclamatioh Facility access road. All
of our on and off - loading takes place within the property boundaries, and all. ECOSLO
equipment is kept on site as well. We continue to work towards a point where we can
ensure that employee vehicles can be parked within the boundaries of the property.
Significant progress has been made to control materials received and processed
at our recycling facility. We have moved all of our donation bins inside the fence line,
and limited the number of paper and plastic we accept in the donation area. Same day
processing practices (when possible) have greatly reduced off -site migration of plastics,
paper and other wind -blown debris.
8
y 3�
■ M1 ADDRESS: P.O. DRAWER 1110
NIPOMO, CALIFORNIA 93444
• PLANTS: HIGHWAY 1 & 801 RALCOA WAY
NIPOMO, CALIFORNIA 93444
1291 MESA VIEW DRIVE
ARROYO GRANDE, CALIFORNIA 9342'
• PHONE: (805) 343 -2289
RETURNING TO A RESOURCEFUL AMERICA ■ FAR: (805) 343 -5515
Proposal for Operation of a Recycling Buy -back Center at
45 Prado Rd., San Luis Obispo
RALCCO is a locally owned and operated recycling firm committed to the maximum possible
collection of materials for diversion from the landfill. RALCCO has been recycling on the Central
Coast for over twenty years, and currently operates buy back centers in Cambria, Morro Bay,
Lompoc, Santa Ynez and Nipomo.
RALCCO proposes, with the cooperation of the City and ECOSLO, to continue operation of the buy
back center at the above location.
RALCCO requests a five year lease, at $500 per month rental, with a five year option to renew.
Immediately, RALCCO will provide new fencing around the property. The fence will be a six foot
wooden (cedar) fence providing immediate visual mitigation and improving the look of the property.
Additionally, RALCCO will provide paving for those portions of the site requiring improvement.
All employee parking will be within the confines of the site.
The property will be reorganized to allow for more efficient movement of clients. Vehicles will arrive
and leave by different gates, stopping at one of three weigh stations for unloading of recyclables.
Customers will be paid cash at the time of reimbursement. Yard staff will use laptop computers for
tracking of purchases and disbursements, communicating by modem with RALCCO's administrative
office in Nipomo.
The Center will:
• Employ two to five people full time
• Be open from 8:00am - 4:30pm Monday through Friday, 8:00am - 4:00pm on Saturday
• Will buy all redemption materials
• Will accept other materials of value
• Will not allow materials to accumulate on -site outside of closed containers.
• Provide a location for the dissemination of recycling education literature.
At the request of the city, RALCCO will pursue grant funding to allow for the collection of used motor
oil at this location. We are aware of the problems inherent in the collection of hazardous materials,
and have successfully operated oil recycling collection centers and curbside collection with no
leaks, spills or other contamination.