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HomeMy WebLinkAboutEnvironmental Center Grant MoniesCounty Administration - Environmental Center report #11/12-2 December 2011 Environmental Center Grant Monies Audit committee: Michael Shadrach, Chair - Public member Chris Earnest - Public member Gayle McConnell - Public member Jean Pedelty - Public member Greg Quesnel - Public member Jennifer Welander - Public member Anthony DeBone, County Commissioner Tom Anderson, Community Development Director Scot Langton, County Assessor Deschutes County, Oregon David Givans, CPA, CIA Deschutes County Internal Auditor PO Box 6005 1300 NW Wall St, Suite 200 Bend, OR 97708-6005 (541) 330-4674 David.Givans@deschutes.org County Administration - Environmental Center report #11/12-2 December 2011 {This page left blank} County Administration - Environmental Center report #11/12-2 December 2011 TABLE OF CONTENTS: 1. INTRODUCTION 1.1. Background on work …………..………………………………………...…… 1 1.2. Objectives and Scope ………………….……………………………..……… 1 1.3. Methodology …………………………………….……………………..….… 1-2 2. BACKGROUND AND REVIEW ………..…………………………….……….. 2-3 2.1. Recycling trends ……………………………………………..................... 4-5 2.2. Requirements for recycling education ………………………................... 5-8 2.3. Recycling education costs ………………………………………………. 8-12 2.4. Benchmarking information …...…………………………………………. 12-13 3. MANAGEMENT RESPONSES 3.1. Deschutes County Department of Solid Waste …..………………..…. 13-14 3.2. Central Oregon Environmental Center ……………………………….…14-17 County Administration - Environmental Center report #11/12-2 December 2011 Page 1 of 17 1. Introduction 1.1 BACKGROUND ON RECALCULATION Authority: The Board of County Commissioners requested information for budgetary purposes regarding the funding of recycling education at the Central Oregon Environmental Center (a non -profit organization). The Audit Committee added the work to the 2011/2013 audit workplan with the understanding tha t this would be a non-audit service. 1.2 OBJECTIVES and SCOPE This review is intended to document what the County receives from the Central Oregon Environmental Center (the Environmental Center) and impacts to recycling. To put these questions in context, the review looks at the County’s current recycling trends, the requirements for recycling education, and the costs for recycling education provided by the Environmental Center. Objectives: 1. The audit objective was to review how the organization spends the monies it receives from the County. a. To the extent that records permit, provide financial information on the funds provided and costs associated with Deschutes county contract. b. To the extent that records exist, provide information on services provided and coverage. To the extent possible any measures of performance in this area. 2. Summarize County responsibilities to educate on recycling. Status of current responsibilities and how covered and DEQ compliance. 3. Information on comparable county spending, if available. Scope: The scope included the information obtained from interviews, observations, and analyses performed. W ork was primarily performed in September 2011. The scope is anticipated to include the most recent calendar years 2009 and 2010. When possible trend information will be shown. 1.3 METHODOLOGY Procedures included:  Reviewing and analyzing data provided in Oregon publications on recycling.  Reviewing applicable laws and regulations as might be relevant. DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT County Administration - Environmental Center report #11/12-2 December 2011 Page 2 of 17 There are a number of limitations to the analysis performed. Financial information received from the Central Oregon Environmental Center was reviewed but not verified, and no audit work was performed on them. Since this work performed is considered non-audit services, we did not conduct this work in accordance with generally accepted government auditing standards. 2. Background and review The Board of County Commissioners and Budget committee in preparation of fiscal year 2012 budget questioned the level of funding for recycling education. The Central Oregon Environmental Center (the Environmental Center) has been the primary provider of recycling education services to the County for some time. These services help the County achieve the recycling credits allowed by the State, promote recycling, and target certain recycling efforts. Chart 1 Trend in Deschutes Solid Waste - recycling education disbursements (by fiscal year) County financial information (acct 610-6200-432.34-19) The contract between the County and the Environmental Center (prior to the budget revision) provided nearly $155,500 in FY 2011/2012. It has since been reduced through the County budget process to $50,000. 0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 04/05 05/06 06/07 07/08 08/09 09/10 10/11 Di s b u r s e m e n t s ( $ ) Fiscal year County Administration - Environmental Center report #11/12-2 December 2011 Page 3 of 17 Table 1 Recycling education contract breakdown by major element (with revised budget) Chart 2 Composition of Environmental Center revenues Focus area FY 2011/2012 % REVISED BUDGET % Youth Education 60,000$ 39%32,000$ 64% Public awareness 40,000 26%18,000 36% Residential behavior change 35,000 23% Commercial behavior change 19,000 12% DEQ 2% Credit report 1,500 1% 155,500$ 100%50,000$ 100% Central Oregon Environmental Center had the following revenue composition for July 2010 through June 2011: Deschutes County contract 35% Sponsorships and donations 27% Foundation and private grants 16% Dues & Memberships 8% Unrelated business income 5% Fundraising 4% Rental income 4% Other income 1% Financial information provided by Environmental Center for 7/2010-6/2011 Chart 2 is based upon the $155 thousand contract with the Deschutes County. The County adopted budget for fiscal year 2012 was reduced for the Environmental Center grant to $50,000 ($150,000 was requested), subject to additional review. The current budgeted amount of $50 thousand would result in an 11% contribution to their revenues at the above levels. County Administration - Environmental Center report #11/12-2 December 2011 Page 4 of 17 2.1 Recycling trends Chart 3 Trend in total recyclable rates (including goals) for Deschutes and State of Oregon Deschutes County’s improving recyclable rate is set back with 2010 figures. As noted in Chart 3, Oregon’s recycling rate has been steady, while Deschutes County’s rate has improved significantly. The decline in the recently released 2010 recycling rates shows the County’s recycling rates numbers declining a little more than the state. The County’s rates are still below the state averages. 34.0%33.0% 35.9%37.4% 45.1% 41.1% 49.2%47.3%46.6%48.3%48.4%46.3% 0% 10% 20% 30% 40% 50% 2005 2006 2007 2008 2009 2010 To t a l R e c y c l i n g R a t e P e r c e n t a g e ( % ) Report Year Trend in Total Recycling Rate Deschutes Goal Oregon Goal Deschutes Total Rate Oregon Total Rate Data extracted from 2010 Oregon Material Recovery and Waste Generation Rates Report. Total rate includes up to 6% in credits for certified programs in waste prevention, home composting, and reuse. County Administration - Environmental Center report #11/12-2 December 2011 Page 5 of 17 Chart 4 Trend in total waste generated and recycled per capita (Deschutes) Analyses by County shows that improvements in recycling rates in 2009 were given back in 2010. With current information, it is not possible to correlate specific programs (or the recycling education) to Deschutes’ recycling rate trends. - 500 1,000 1,500 2,000 2,500 3,000 3,500 2005 2006 2007 2008 2009 2010 Ll b s / C a p i t a Report Year Lbs Generated per capita Lbs Recovery per capita Data extracted from 2010 Oregon Material Recovery and Waste Generation Rates Report. The interesting thing to note about Chart 4 is the decline in overall waste generation, yet the relative persistence of levels of recycling. In DEQ’s report to the legislature (January 2011), they indicate the solid waste generation trends with the economy, but other factors may also be affecting the decline. The persistence of the recycling and increasing recycling rate seem to indicate that Deschutes County is doing something right. 2.2 Requirements for recycling education Minimum requirements for recycling education met without contract. From discussion with Timm Schimke, Solid Waste Director, the County meets Oregon’s minimum requirements for recycling education through efforts of the County and the franchise haulers before usage of the Environmental Center. Regulatory requirements for recycling education include: County Administration - Environmental Center report #11/12-2 December 2011 Page 6 of 17 Chart 5 Composition of recyclables - for State of Oregon 1) Give notice to each person of the opportunity to recycle; 2) Encourage source separation of recyclable material; 3) Utilization of either of two methods a) Preparing and implementing an education and promotion plan that includes actions to effectively reach solid waste generators and all new and existing collection service customers; or b) Provision for i) Recycling notification and education packets to all new collection service customers that include at a minimum the materials collected, the schedule for collection, the way to prepare materials for collection and the reasons persons should separate their material for recycling. At least annually, the above should be sent to all customers. ii) Recycling information in a variety of formats and materials at least four times a calendar year to collection service customers that includes at a minimum the materials collected and the schedule for collection. iii) Targeting of community and media events to promote recycling. The County’s goal of 45% recycling is that; a goal. Timm Schimk e, Solid Waste Director, indicates the recycling rate information used by the State is determined from many sources other than the landfill. The recycling stream includes lots of things that the County is not directly involved with or no influence over. Chart 5 indicates the various types of material categories used (based on 2010 DEQ report) in developing the recycling rates. The use of recyclable materials in compost and in creating energy has been increasing. Use of the recyclables for energy has been growing the fastest. Data extracted from 2010 Oregon Material Recovery and Waste Generation Rates Report. Glass 5% Metals 18% Papers 30% Plastic 2% Other 6% Organics 39% County Administration - Environmental Center report #11/12-2 December 2011 Page 7 of 17 Table 2 2010 Total recycling rate breakdown (Deschutes county) Additional program credits may be at risk without Environmental Center contract. The Environmental Center’s efforts for recycling education have ventured into areas beyond the minimum requirements under the coordinated direction of County and Environmental Center staff. Those efforts more closely target the areas for additional recycling program credits. Those areas currently include: o Youth education programs – presentations at schools, field trips, and EarthSmart kid program; o Grants to schools; o Waste prevention and reduction guide (ReThink Waste program) and website (www.rethinkwasteguide.org); o Waste prevention public awareness campaign; o Booths at community events; o Community presentations; and o Assist businesses with waste reduction implementation. The Environmental Center’s work has had a direct impact on the County’s ability to obtain the program credits and it is likely that it has also provided a more widespread impact on behavior for recycling in general. Deschutes County has a history of receiving 6% in program recycling credits towards the total recycling rate. The most recent (2010) total recycling rate of 41.1% is broken down as follows: State calculated recylcing rate 35.1% Additional program credits: Waste prevention 2.0% Residential composting 2.0% Reuse 2.0% Total Recylcing Rate 41.1% The program credits increase the recycling rate by nearly 17%. A majority of counties obtain one or more credits, but only 37% receive the 6% in credits in 2010. The mandatory elements under the program credits are primarily supported by efforts of the Environmental Center. Mandatory elements included: 1) Waste prevention a) General educational materials to residents and two additional prevention programs 2) Residential composting County Administration - Environmental Center report #11/12-2 December 2011 Page 8 of 17 a) Promotion of the residential composting program through public information and demonstration site(s) and two additional program options. 3) Reuse a) Promotion and education campaign on the benefits and opportunities for reuse and two additional program options. The Environmental Center prepares the report claiming the 6% in credits. Most of the complying programs described are Environmental Center programs. Reduced funding to the programs raises the potential for losing some or all of the 6% program credits. A significant decline in recycling rates might draw additional attention from DEQ who might look to the County for a new plan to improve their recycling rate. It is recommended, with the potential scale-down of Environmental Center recycling education programs, that the County monitor how they will fulfill the requirements for these credits. 2.3 Recycling education costs Disbursements from Environmental Center are in-line with County grant funds. The contract agreements with the Central Oregon Environmental Center provide specified levels of work. The scope outlines the extent and nature of services to be provided and appears to be written in the context of meeting the requirements for Oregon’s diversion credits. These credits are a necessary part of attaining the recovery rate goals established by the State of Oregon. The Environmental Center has been very responsive and has provide d some recalculations of their historical costs for performing on the contract on the County’s fiscal year. The information in Table 3 below appears to be a reasonable approximation of the costs to provide the contracted services. We reviewed and discussed the approach with Mike Riley, Executive Director for the Environmental Center. The approach relies upon the levels of labor identified by the Environmental Center as having been performed for the contract. They maintain detailed accounting records that mirror the above calculations with reasonable adjustment. We did a separate analyses based on similar assumptions for direct costs and had a little higher level of indirect costs. In addition to purchasing the above services, the County directly benefited from in-kind media contributions to the Environmental Center for 09/10 and 10/11 amounting to over $22 thousand. County Administration - Environmental Center report #11/12-2 December 2011 Page 9 of 17 Table 3 Comparison of Environmental Center costs to grant payments by fiscal year. FY 08/09 FY 09/10 FY 10/11 Total Grant revenues 155,498$ 155,496$ 155,493$ 466,487$ Estimated costs* Direct costs Personnel 122,298 115,927 88,430 326,656 Other program costs 22,776 12,910 27,919 63,605 TOTAL DIRECT 145,074 128,837 116,349 390,261 - Indirect costs 20,165 17,908 16,173 54,246 Total estimated costs*165,240 146,746 132,522 444,507 Net of revenues to estimated costs (9,742)$ 8,750$ 22,971$ 21,980$ Net as a percentage of revenues 5% * Costs estimated by Mike Riley, Director for Environmental Center The table shows the organization spending significantly all of the grant monies on direct costs and associated indirect costs. The contract does not identify or align specific performance measures with requirements being identified for the diversion credit programs. Annual reports provided appear to address the scope of work identified in the contract and provide a self -evaluation that aides in developing improvements to the programs. The DEQ “Recovery Rate Credit Claim” report for 2010 highlights other areas and is difficult to reconcile to the grant and the Environmental Center reports. It is recommended for the County, with the assistance of the Environmental Center, to consider adding to the contract performance measures aligned with the diversion credit categories and scope of services to assure requirements are being met in an efficient and effective manner. Environmental Center reports impact and request for programs. The Environmental Center was able to provide some breakdown of the contractual components for the current contract year, the current budget year and anticipated requests for additional funding. They have worked with Timm Schimke, Solid Waste Director to identify areas that may require additional funding for the current fiscal year and have coordinated that with a plan for the next budget year. County Administration - Environmental Center report #11/12-2 December 2011 Page 10 of 17 Table 4 Summary of funding requests Table 5 Youth education program funding by contract year with additional requests ACTUAL BUDGETED REVISED Request ANTICIPATED FY 2010/2011 FY 2011/2012 FY 2011/2012 FY 2012/2013 FUNDING LEVEL $155,493 $50,000 $88,550 $104,278 YOUTH EDUCATION 32,000 39,197 43,892 RESIDENTIAL 18,000 49,353 49,803 COMMERCIAL - - 10,583 The Environmental Center has identified the use of the budgeted funding of $50,000 (down from $155 thousand). They indicate their original allocation to programs did not provide for all their labor costs or their indirect overhead costs. The FY 2011/2012 increase requested is for additional identified services, all of their associated labor costs, and indirect costs. An additional $38,550 is being requested to cover $11,050 in indirect costs, $2,500 in employee mileage reimbursements, and $25,000 for a marketing campaign. Solid Waste is supportive of funding the marketing approach to strengthen the current ReThink Waste web site campaign. The detail of the service components and anticipated metrics are included below by the major components of youth education, residential awareness, and commercial awareness. ACTUAL FY 2011 Services Costs Services Costs Services Costs YOUTH EDUCATION 32,000$ 39,197$ 43,892$ Develop, promote and deliver in- school and after-school education programs, grades K-12. # of Presentations (est)229 150 30,000 150 30,000 150 30,900 # Student Contacts (est)6,024 4,000 4,000 4,000 # of $500 School Grants Awarded (est)5 4 2,000 4 2,000 4 2,000 Coordinate Oregon Green Schools program in Deschutes County and assist schools in completing OGS application and achieving OGS recognition. (est) 5 Schools ($750 grants) 3,750 Executive Director indirect cost 2,655 2,735 Mileage reimbursement 1,603 1,480 Other indirect costs (9%)2,939 3,027 BUDGETED REVISED Request ANTICIPATED FY 2011/2012 FY 2011/2012 FY 2012/2013 The reduction of monies has resulted in approximately a 35% reduction in presentations for youth at the County Administration - Environmental Center report #11/12-2 December 2011 Page 11 of 17 Table 6 Residential program funding by contract year with additional requests Table 7 Commercial program funding by contract year with additional requests schools. The request includes supporting the Oregon Green Schools program through grant awards. ACTUAL FY 2011 Services Costs Services Costs Services Costs RESIDENTIAL 18,000$ 49,353$ 49,803$ ReThink Campaign work: Rethink Waste guides and website for residents and businesses. 18,000 Marketing firm hired to develop marketing plan; and substantially more investment in marketing effort, in terms of numbers of ads placed and number of residents reached. 41,800 Same effort/results as last year but less of budget spent on planning and more on implementation. 42,200 # of community events (est)13 4 4 6 # of Rethink Waste Guides Dist. (est)30,000+~ 5,000 ~ 5,000 n/a # of hits on Rethink Waste web site. (est) n/a (began June 2011) Double volume of June/July 2011 Double volume of June/July 2011 Double volume of Apr-Jun 2012 # community presentations (est)3 8 8 12 Executive Director indirect cost 2,655 2,735 Mileage Reimbursement 897 824 Indirect costs (9%)4,001 4,044 BUDGETED REVISED Request ANTICIPATED FY 2011/2012 FY 2011/2012 FY 2012/2013 The reduction of monies has resulted in significantly fewer community events. The approach has been to focus and leverage on the website efforts. Environmental Center believes a marketing plan and implementation plan are now warranted. ACTUAL FY 2011 Services Services Costs Services Costs Services Costs COMMERCIAL -$ -$ 10,583$ ReThink waste :Develop, market and distribute ReThink Waste toolkit for businesses 9,300 # of business technical assistance 2 None None None # zero waste events 11 Minimal support Minimal support Minimal support Mileage reimbursement 446 Indirect costs (9%)837 BUDGETED REVISED Request ANTICIPATED FY 2011/2012 FY 2011/2012 FY 2012/2013 Most of the commercial efforts have been removed. Some of this is covered through other community efforts. The Environmental Center anticipates some of the ReThink Waste efforts can be packaged for use by business and will request funding for this in the next year. County Administration - Environmental Center report #11/12-2 December 2011 Page 12 of 17 The indirect costs for the executive director’s time and other indirect costs of 9% result in an overall indirect rate that is less than the 20% management and general overhead costs shown by the Central Oregon Environmental Center’s in their financial statements for 2010. It is not clear to what extent the lower level of FY 2011/2012 funding puts at risk the County’s ability to claim the recycling credits or whether there will be an impact to recycling rates. It is also not clear what impact the funding will have on the County’s recycling rate, since the County’s overall recycling rate comes from many sources outside of the County’s control (see Chart 5). 2.4 Benchmarking information Chart 6 Correlation of estimated costs per household to recycling rate (2009) for selected Oregon counties Previous County recycling education spending per household in midst of other comparably sized Oregon counties. The Environmental Center was able to provide information on recycling education costs for several Oregon counties (Lane, Marion, Benton, and Clackamas). Additional data was located for Douglas, Yamhill and Jackson Counties. Though these costs may not be comprehensive they provide some anecdotal indication of levels within the state. $0 $1 $2 $3 $4 $5 25%30%35%40%45%50%55% Do l l a r s p e r H o u s e h o l d Recylcing rate Trendline (approx.) Deschutes $155,000/64,090=$2.4 The overall information graphed in Chart 6 places Deschutes County somewhat in the middle of the pack County Administration - Environmental Center report #11/12-2 December 2011 Page 13 of 17 using the original FY10/11 funding level ($155,000). The higher spending by some of the counties per household did have a minor level of correlation with higher recycling rates. All of the counties in the analyses achieved the 6% in program credits. It is thought that many of the counties expending these funds are trying to impact their recycling rates as well as obtain the program credits as opposed to meet the statutory minimum requirements. It is not clear the analysis has captured all of the costs expended for recycling education. For Deschutes county, we have additional internal costs and costs paid by garbage haulers costs, not to mention other recycling operations within the county that feed into the recycling rates. There was insufficient data obtained to show differences in programs and how various programs might impact recycling rates. The current Deschutes County budget for recycling education of $50 thousand would place the approximate cost per household at $.80 per household and below all of the other collected data points. The requested budget of $88 thousand puts the cost per household at around $1.40 per household. The Environmental Center also provided a copy of a 2002 study on “Evaluating the Impacts of Recycling / Diversion Education Programs – Effective methods and optimizing expenditures” by Skumatz Economic Research Associates Inc. The study’s focus was on targeted recycling efforts. The conclusions of the study indicated certain methods could add 1 -3% to the recycling rate depending on their current diversion rate and method. The survey metric utilized was costs per household. The focus was not on general education efforts and the conclusions often were around distribution methods (such as bill stuffing). 3. Management responses 3.1 Timm Schimke, Solid Waste Director, Deschutes County Department of Solid Waste Department of Solid Waste response to Internal Auditor’s evaluation of funding of recycling education and promotion efforts through the Environmental Center. I believe the evaluation shows that the monies spent with the Environmental Center have been used judiciously, and are neither higher nor lower than other counties in the state when compared on a cost per household basis. I also believe these conclusions hold true at any of the funding levels discussed in the report. The report points out that it is very difficult to directly correlate levels of funding in recycling education and promotion to diversions levels. The solid waste and recycling industries as well as state governments can only report that it is clear that a good education and promotion program is a ke y ingredient to a successful diversion effort, and it is on that basis that we have approached recycling education and promotion in Deschutes County. County Administration - Environmental Center report #11/12-2 December 2011 Page 14 of 17 The report recommends establishing performance measures and aligning the scope of the grant agreement to focus on meeting the requirement for obtaining the additional diversion credits offered by the State for efforts in waste reduction, residential composting and reuse. I have no objections to taking steps to ensure that we qualify for these diversion credits, but I think it is important to recognize that this is not the only area that the Environmental Center adds value to our diversion program. Although minimum requirement specified in statute are being met primarily through the franchised collection syst em, I believe the Environmental Center’s efforts residential and commercial recycling are an important factor in our success in those areas as well. I would like to thank David Givans for the work he has done in this evaluation. 3.2 Mike Riley, Executive Director, The Environmental Center November 30, 2011 David Givans County Internal Auditor Deschutes Services Center building 1300 NW Wall Street, Suite 206 Bend, OR 97701 RE: Audit Report on Environmental Center Grant Monies Dear David: I agree with the facts as presented in the audit and support its findings and recommendations. County Administration - Environmental Center report #11/12-2 December 2011 Page 15 of 17 I have a few comments I would like added to the “Management Responses”, Section 3, of the report. 1. Substantial investments in education and promotion are a best practice in Oregon counties that achieve high recovery rates. Based on my experience in waste prevention and recycling in Oregon since 1998, I believe that professionals in the waste and recycling field view substantial investments in education and promotion programs as a best practice and a critical part of the overall program mix needed to achieve recovery rates goals and then sustain those rates. These professionals know that if you want customers to choose your product or service, you need to invest in education and promotion. Getting people to adopt new behavior s — to prevent waste, to reuse as much as possible, and to recycle and compost the rest — is no different. You see this best practice reflected in the research on per capita spending on recycling education and promotion in seven comparable Oregon counties that David Givans and I completed for this report, summarized on pages 12 and 13. Those counties with the highest recovery rates also invest significantly in education and promotion activities, and those activities are substantially more than the minimum required to comply with state law. 2. The current grant amount of $50,000 per year places Deschutes County dead last among the seven comparable Oregon counties looked at in the audit. See section 2.4, pages 12 and 13. 3. The Environmental Center has significantly leveraged DCSW grant funds. With DCSW grant funds as a base, The Environmental Center has been able to significantly leverage additional financial support for waste prevention, reuse, recycling, composting and other sustainability education and promotion activities in our county. This support has come to us as both in-kind donations (goods and services) as well as cash. As described on page 8, we secured over $22,000 of in -kind media services to support delivery of messages to County residents in the 2009 to 2011 grant period alone. Additionally, over the last ten years we have secured approximately $150,000 in cash from foundation grants, state and federal government grants, and corporate contracts and donations, to support a wide range of activities that complement and build on the activities paid for by the DCSW grant, including promoting reuse, sustainable business practices, and zero waste events as well as delivering sustainability education programs to youth. 4. Traditional marketing strategies and tactics are an important tool that we should use more often in Deschutes County. We propose to do so in our current grant revision and in the 2012-2013 grant year. My research on education and promotion activities in comparable Oregon counties, as well as a literature search on what activities produce results, suggests that we should try more traditional County Administration - Environmental Center report #11/12-2 December 2011 Page 16 of 17 marketing strategies and tactics to deliver waste prevention and recycling messages to County residents and businesses. Other Counties in Oregon have used this approach substantially more than we have, and the research by Skumatz referred to on page 13 of the audit supports it as an effective strategy. We laid the foundation for such a marketing campaign last grant year with the publication of a Rethink Waste guide and web site (www.rethinkwasteguide.com). The main program objective of increasing our current 2011-2012 grant from $50,000 to $88,550 is to develop and begin implementing a marketing campaign that raises awareness about waste prevention, reuse, recycling and composting, and drives people to the Rethink Waste resources where they can learn how to take action. The tactics would be a mix of paid advertising, social media, earned media coverage, and print and web-based resources. 5. Deschutes County saves money by extending the life of Knott Landfill, currently the least cost waste disposal option available to County residents. Waste prevention, reuse, recycling and composting activities are key components of an overall strategy to extend landfill lif e. The last time that Deschutes County Solid Waste compared a range of waste disposal options for County residents it was clear that extending the life of Knott Landfill was the lowest cost disposal option for County residents. So a plan was adopted and implemented to expand the footprint of the landfill. As DCSW Department Director Timm Schimke pointed out last January, recycling alone has extended the life of the landfill at least 6.3 years and saved County residents approximately $7,000,000, just in reduced transportation costs. Undoubtedly, waste prevention, reuse, and composting activities also have kept stuff out of the landfill and saved more dollars, albeit the financial savings from these activities are difficult to quantify because the results of the activities cannot, unlike recycling, be weighed on a scale. (Thus the two percent credits awarded by DEQ for activities that promote these behaviors.) Finally, I’d like to suggest a new waste recovery framework for Deschutes County. Back in the 1980s, when recycling was just beginning in Oregon, a full recycling bin was the right stretch goal. But recycling alone is no longer enough. While recycling rates have grown significantly over the last decade in Oregon and Deschutes County, so too has the total amount of stuff we throw away. Today, we need to change our focus from recycling to waste prevention. We need a new stretch goal: a full recycling bin and an empty garbage can. We’ll protect the environment and extend the life of Knott landfill, our count y’s lowest-cost disposal option. That’s a win-win outcome that I believe is supported by Deschutes County’s citizens. Achieving that new stretch goal will require continued investments in education and promotion programs. County Administration - Environmental Center report #11/12-2 December 2011 Page 17 of 17 We look forward to being part of the County’s team that delivers those programs. Thanks for your patience, diligence, and objectivity in preparing this audit. It’s hard to describe any audit as a pleasant experience. Your professionalism made it as pleasant as possible and I appreciat e that. Sincerely, Mike Riley Executive Director {End of Report}