Gov. Appoints to New Michigan Recycling Council Owner of Company That Over-Estimated Ann Arbor Single-Stream Collections By 40 Percent Costing $10.4M

GOV. RICK SNYDER recently announced a statewide plan designed to increase residential recycling access statewide. He also announced appointments to a nine-member Michigan Recycling Council to guide the plan’s implementation.

Jim Frey, of Detroit, was appointed to represent academics and consultants. He is CEO and co-founder of Resource Recycling Systems (RRSI).

In 2009, Ann Arbor City Council approved a no bid contract with RRSI—whose employee David Stead has been on the Ann Arbor Environmental Commission since 2000—to consult on the $6 million dollar switch to single-stream recycling.

In an October 12, 2009 presentation to City Council at a work session, RRSI materials claimed the switch to single-stream would increase the overall diversion of materials from the landfill to 70 percent by 2012. The report also predicted that taxpayers would save up to $750,000 per year.

One year after the 2010 implementation of single-stream recycling, it was revealed that the projected estimates of increased collections had been off by 40 percent, and that projected savings had not been realized.

Tom McMurtrie, the city’s solid waste coordinator, told City Council at a July 2011 meeting: “Projections were based on per-household generation rates provided by RecycleBank that were from communities that had a much larger percentage of single-family homes than Ann Arbor, which has almost 50 percent multi-family.”

McMurtrie, in fact, fingered the wrong contractor. It was RRSI officials who, in the October 2009 presentation, estimated collection rates would double, as would the overall diversion rate.

However, according to the most recent Five-Year Solid Waste Plan, the number of tons of material sent to the city’s landfill has risen significantly since 2010. In addition, single-family diversion rates remain stalled at 50 percent, where they were in 2006, when residents paid just half of what they pay now for solid waste service.

Most importantly, say some local environmentalists and City Council members, the city’s overall diversion rate plummeted from 40 percent in 2009 to 30 percent in 2012.

In 2002, shortly after Mayor Hieftje took office, officials announced a goal of diverting 60 percent of solid waste collected from the landfill. Twelve years and almost $110,000,000 million solid waste tax dollars later, the city’s most recent Five Year Solid Waste Plan “Waste Less” revealed:

“The city’s (2002) diversion goal of 60 percent has not yet been reached, as the single-family diversion rate remains around 50 percent.”

There is one area where there has been an increase with respect to recycling: the amount of money spent to pay Recycle Ann Arbor to haul recyclables. That amount has risen sharply since 2004, when the City of Ann Arbor granted the non-profit a 10-year no-bid contract.

That contract called for the Ann Arbor to pay Recycle Ann Arbor $766,000, according to minutes from the December 15, 2003 City Council meeting. Ann Arbor taxpayers pay for the trucks, fuel, and repairs of Recycle Ann’s Arbor’s collection vehicles. In 2012, Ann Arbor paid Recycle Ann Arbor $1.651 million.

RRSI employee David Stead sits on the Board of Recycle Ann Arbor as its “government liaison.” He was a member of the RAA Board in 2010, when, as a member of the Environmental Commission and an employee of RRSI, he advocated for a switch to single-stream recycling.

Michigan’s recycling rate for residential household waste is about 15 percent. The national average is 35 percent. A recent study concluded more than $435 million in recyclable metal, glass, paper and plastics goes from Michigan households to Michigan landfills each year.

“States with healthy recycling programs have found that, in addition to reducing pressure on landfills and helping the environment, recycling creates jobs and opens markets for recovered materials,” Snyder said. “We’ve been throwing away money for decades. Addressing this issue is simply the right thing to do, and I am pleased to announce we are committed to making Michigan a recycling leader.”

Gov. Snyder’s 15-point plan focuses on four key areas:

  • Benchmark and measure progress – including developing ways to better track Michigan’s recycling rate and document the progress of the state’s effort.
  • Public education and technical assistance for communities – other states report that an informed and supportive public is a key to increasing recycling, along with providing tools for local governments to develop local programs.
  • Provide convenient access – successful recycling programs feature convenient access at the local level.
  • Develop markets – stimulation of market opportunities for recycled products will be addressed with grants and other economic incentives.

The DEQ drafted the plan in cooperation with recyclers, landfill operators, manufacturers, waste haulers, bottlers, grocery store operators and others.

The effort is supported by a $1 million appropriation in the governor’s recommended fiscal year 2015 budget, along with $500,000 in DEQ pollution prevention grants that will be committed to support local recycling programs over the next two years.

“This initiative recognizes that we can and should do more to fully achieve the economic and environmental rewards that a comprehensive residential recycling program will bring to Michigan,” said Kerrin O’Brien

Other appointees to the Michigan Recycling Council are:

Michael Csapo, of Fenton, will represent the recycling community and is the general manager of Resource Recovery and Recycling Authority of Southwest Oakland County. Csapo holds a master’s degree in economics from Walsh College, a master’s of public administration and a bachelor’s in political science from the University of Michigan.

Linda Gobler, of Lansing, will represent the retailers on the council. She is president and CEO of the Michigan Grocers Association, where she has served in multiple capacities for the past 28 years. She earned a bachelor’s degree in social sciences/social work from Michigan State University.

Jim Kulp, of Dexter, will represent the processors. He has worked 32 years with Plastipak Packaging, and currently is the Operations Manager for Clean Tech Inc., the state’s largest bottle recycling facility.

Bill Lobenherz, of Lansing, will represent the bottlers. He has served as the president of the Michigan Soft Drink Association for more than 25 years. He has also worked as an attorney for Dykema Gossett PLLC, as vice president of Wayne State University, the legal counsel for Michigan School Board Association, and as a drafter for the Legislative Service Bureau. Lobenherz has a law degree from Wayne State University and a bachelor’s of business administration from the University of Michigan.

Kerrin O’Brien, of East Lansing, will represent environmental interests. She is the executive director of the Michigan Recycling Coalition and has also worked as an independent consultant, executive director of the Mid-Michigan Environmental Action Council, resource recovery agent, and a grant coordinator. O’Brien holds a bachelor’s in social science, with an emphasis of environmental issues from Michigan State University.

Tonia Olson, of Lansing, will represent waste haulers, waste industry, and landfill owners and operators. She is the director of Governmental and Community Relations for Granger. She also chairs the Michigan Chamber Energy and Environment Committee. Olson has a bachelor’s degree in resource development as well as agriculture and natural resource communications from Michigan State University.

Elisa Seltzer, of Levering, will represent public and community interests. She has been the public works director for Emmet County for 24 years. She has also worked as a curbside recycling coordinator and personnel coordinator for Recycle Ann Arbor. Seltzer has a bachelor’s degree in environmental education and advocacy.

Doug Wood, of Muskegon, will represent local government and regions. He is the director of the Kent County Department of Public Works. He has also worked as the executive vice president of ECH Recycling Inc., a project manager for a county resource recovery agency, the manager of a county waste-to-energy project, and as manager of the environmental health division of a county health department. Wood has a master’s of public health from the University of Minnesota and a bachelor’s of science in environmental health sciences from Ferris State University.

All members are appointed to a two-year term on the council.

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