038-05F Scrap Metal Waste
LEGISLATIVE ANALYST MEMORANDUM
To: Members of the Board of Supervisors
From: Andrew Murray, Office of the Legislative Analyst
Date: June 1, 2005
Re: Employee Suggestion - Sell Scrap Metal Waste (OLA#: 038-05F)
Employee Suggestion
As part of the 2005 Board of Supervisors Employee Suggestion Program, a City employee suggested that the City place someone in charge of selling scrap metal to a recycler rather than paying to dispose of it.
Executive Summary
The Department of Administrative Services Office of Contract Administration currently oversees a City-wide program for recycling scrap metal created by departments, which generates approximately $50,000 - $100,000 in revenue per year. Based on its assessment, there are not substantial opportunities to expand this program as all City departments that generate substantial amounts of scrap metal participate. Increased sorting by departments onsite of ferrous and non-ferrous metals might increase the value of the recycled scrap by $10,000 - $15,000 per year. The Department of the Environment, which will assume responsibility for overseeing the scrap metal recycling program on July 1, 2005, concurs that there are not substantial outstanding opportunities to expand this program.
The Department of the Environment is responsible for working with City departments and members of the public to decrease the amount of waste that the jurisdiction sends to landfills. It operates a program through which it conducts voluntary audits of departments’ disposal practices and identifies opportunities to reduce waste, which are often coupled with opportunities to save on disposal costs. Through this program, the department has identified a number of opportunities, including some that departments have not yet implemented, to reduce disposal costs. In addition, the adoption of best practices City-wide could additionally reduce disposal costs. Therefore, the Office of the Legislative Analyst (OLA) recommends that the Board of Supervisors direct City departments with large waste disposal costs to work with the Department of the Environment to identify cost saving opportunities. Implementing these suggestions will not only reduce City expenditures, but will aid the City in meeting its waste diversion targets.
Analysis
Scrap Metal Recycling Program
The Department of Administrative Services oversee a Citywide program of scrap metal recycling (the Department of the Environment will assume responsibility for this task on July 1, 2005). Under this program, Administrative Services has identified the departments that are the major generators of scrap metal and facilitated their relationship with a recycler (SIMS Metals). The departments that generate substantial scrap metal include the Airport, MUNI, Parking and Traffic, Port, Public Health, Public Utilities Commission, Public Works, and Purchasing.
As a result of this arrangement, the City recycled nearly 1,100,000 pounds of scrap metal in FY 2003-04. This generated nearly $55,000 in net revenue. Both Administrative Services and Environment believe that there are few outstanding opportunities to increase the amount of scrap metal recycled or to secure greater revenues from it.
Other Opportunities
Department-Specific Recommendations
Pursuant to its mission to reduce refuse created by City departments, the Department of the Environment conducts audits of departments’ refuse-related practices. Public Health, Public Utilities Commission, Public Works, and Recreation and Park are the departments with the largest trash bills. Some of these departments have not yet implemented waste audit recommendations that are technologically straightforward and cost saving.
City-Wide Opportunities
In addition to the department specific opportunities listed above, there are numerous opportunities to reduce waste or conserve supplies that all departments should observe. These include the following:
- Reduce trash bills, which are a function of container size and frequency of pickup, by increasing recycling and composting.
- Reduce paper purchasing costs by requiring City departments with duplexing printers to set computers to default to print double-sided; requiring the use of electronic, paperless communication whenever feasible (electronic memos, electronic faxes, online paychecks, electronic forms, electronic fliers); reducing unnecessary paper consumption, such as some City fliers, handouts, packages; requiring Reprographics to investigate paperless options; and requiring DTIS to assist all departments in implementing these paperless options.
- Reduce office supply purchases through reuse of items such as folders, binders, and envelopes.
The Department of the Environment’s City Government Recycling Coordinator estimates that the City could save more than $100,000 per year in paper costs and $300,000 per year in trash service if the practices listed above were observed.
Hazardous Waste Reduction and Energy Efficiency Opportunities
The Department of the Environment similarly works with City departments to reduce their consumption and disposal of hazardous materials and increase their energy efficiency. There might be unrealized opportunities in these domains similar to those discussed above.
Recommendation
The OLA recommends that the Board of Supervisors direct City departments named above to work with the Department of the Environment to identify and implement cost saving waste reduction measures. The OLA also recommends that the Board request a briefing from the Department of the Environment describing opportunities that the City has to reduce waste, hazardous material, and energy expenditures, including barriers to implementing changes that the Board might be able to help address.