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Figure 2: Estimated Value of Commodities and
<br /> Organics under Mandatory Ordinance
<br /> c.Piedmont,$63,077
<br /> Oakland, Pleasanton,
<br /> $11,831,078 $4,282,491
<br /> Newark,
<br /> $1,605,660
<br /> San
<br /> Livermore, `Leandro,
<br /> $3,794,061 $3,885,406 Union City,
<br /> $1,936,709
<br /> Hayward, Unincorporated,
<br /> $5;041;662 . $454,996
<br /> Oro Loma S.D,
<br /> Fremont $1,077,155
<br /> $6,840,564 Castro valley S.D.,
<br /> • . Albany, $976,149
<br /> ink \$247,380
<br /> Emeryville, I Alameda,
<br /> $866,461 Dublin,$1,670,176 $1,714,374
<br /> As we all consider how to capture this value, whether through this ordinance or other means, it is important
<br /> to recognize that the net benefit to a community can be positive even if rate payers in the community pay
<br /> more for solid waste services. Consider a situation where it costs $101 to capture $100 of value that was
<br /> previously thrown away. Even in that situation it may be worthwhile for a community to invest in
<br /> recycling since the value added to a local economy from bringing money into the community is much
<br /> larger than the money brought in. Selling $100 of commodities to Asian buyers, and spending that money
<br /> locally, will have a multiplied effect on the local economy of perhaps $400. For example, if recycling
<br /> workers are paid $70 to collect and sort $100 of materials, and those workers then spend $50 of that
<br /> money in local stores, retailers have a gross benefit of$50 that they may use to hire more workers (or
<br /> increase their profits). If more retail workers are hired, they will in turn spend some of their new wages in
<br /> local stores. And the same 'virtuous cycle' applies to rents, purchases of supplies, and so forth. Standard
<br /> local economy economic analysis shows that bringing money in from outside a local economy creates
<br /> local economic activity 3-5 times larger than the amount of money brought in. Bringing about $100
<br /> million into Alameda County would have large benefits for our residents and businesses. Consequently, it
<br /> is economically important for all of our member agencies -- whether participating in the ordinance or not -
<br /> - to think about how they might capture wasted commodity values to stimulate the local economy.
<br /> RECOMMENDATION
<br /> It is recommended that the Authority Board waive reading of the full ordinance(Attachment A) and adopt
<br /> the ordinance at its January 25th meeting.
<br /> Attachment A: Ordinance 2012-1
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