Business Plan study for the City of Seattle Hybrid Deconstruction Center © 2009, City of Seattle Proprietary and Confidential prepared by Clearpath, LLC.

Business Plan studyfor the City of Seattle Hybrid Deconstruction Center

© 2009, City of SeattleProprietary and Confidential

prepared by Clearpath, LLCwww.clearpathusa.com

ScopeThis is the second annual recycling report for the City of Seattle. The report is called for in the 2007 Seattle City Council Resolution 30990.

“SPU will report to Council by July 1 of each year on the previous year’s progress toward recycling goals, as well as further steps to be taken to meet goals in the current and upcoming years.”

By the end of 2008, SPU piloted the deconstruction (or partial deconstruction) of eleven single family homes. The utility also provided pilot-project support for moving a single family house in the Fremont neighborhood, and garnered 30 tons of salvage from 15 structures related to the Sound Transit project in Capitol Hill. Case studies from both the deconstruction and house moving activities established them as viable alternatives to traditional building demolition.

Cost remains a concern and in order to bring down deconstruction cost, SPU is studying ways to centralize deconstruction in a Hybrid Deconstruction Center. During 2009 SPU will use a Washington State Department of Ecology Coordinated Prevention Grant to develop a business case for such a program as a public-private partnership or private sector enterprise.

from the City of Seattle 2008 Recycling Rate Report

Seattle Public Utilities, July 1, 2009 2

Principles in preparing this study

• Reduce Construction & Demolition going to landfill

• Facilitate existing private processors, do not compete

• Maximize energy value of material – i.e. maximize levels of: reuse, recycle, beneficial use, in that order

• Optimize user market demand and value to ‘pull’ supply of salvage and recycle

• Evaluate as a total market system and how we can beneficially influence success, directly or indirectly

3

Criteria for Assessment of Business Plan Scenarios

• Investment – Quickest to pay-out, best revenue stream

• Workforce Opportunities – Highest potential in level of wages

• Training – Highest potential in number of jobs

• Relationships – Best builds rapport with private business

• Embodied Energy – Least added energy to benefit as salvage or recycle

• Market Adapability – Best able to change with supply or demand trends • Diversion – Practical capability to meet demands • Liability Risk – Least concern for known unknowns

• Time to Implement – Quickest to achieve functional performance

4

5

1. Market Description and Definitions

2. National & International Market Summary

3. Evaluation of Policy & Regulation Framework

4. Evaluation of Market Potential

5. Associations & WebsitesGRAPHICS:Influencers Fishbone & MatrixMarket Data AnalysisHybrid Deconstruction System UniverseSalvage, Deconstruction Market System

Market Overview TASK 1

We must recognize and understand the existing building Salvage and Deconstruction market before we can help optimize or expand its performance.

The market is made-up of organizations and people that either influence or will be influenced by our work. Understanding who they are, how they contribute, and what their issues are will affect our ultimate success.

Identifying driving factors, we will indicate critical trends that present opportunities or risks to any effort. By design, we will include those people and factors that can contribute to our effectiveness.

6

Definitions

Hybrid Deconstruction is…

the use of people and machines to efficiently deconstruct buildings, with the goal of maximizing reuse and recycling.

It refers to the hybrid of demolition and manual deconstruction.

Other Definitions:Salvage

Construction and demolition waste (C&D)

City’s Waste

Municipal Solid Waste (MSW)

Beneficial Use

Recycling

Participant Business Roles

TA

SK

1

7

Benefits of Deconstruction

• Conserved landfill space

• Higher value of salvage (i.e. embodied energy)

• Opportunities for new modes of salvage

• Job creation

• Green building credits (i.e. LEED)

TA

SK

1

8

InfluencersT

AS

K 1

The Influencer Diagram represents the categories, organizations, roles, and (sometimes) specific individuals who can help influence, or will be influenced by, Hybrid Deconstruction.

IMPLEMENTATION GOVERNANCE & POLICY CUSTOMERS (Market Place)

INFL

UEN

CER

S

SPECIAL INTERESTPOLITICALSUPPLIERS SUPPORT

9

InfluencersT

AS

K 1

IMPLEMENTATION• Leadership & Project Teams• City Staff• Other

GOVERNANCE & POLICY

• City• County• State & Legislators• Federal• Regional• Unions

CUSTOMERS (Market Place)• Hauler (Transport)• Retailer (Reuse)• Wholesaler (Reuse)• Designer, Architect (Reuse)• Developer, Agency, Institution (Reuse)• Source-separated Recycle Processor • Comingled Recycle Processor • Byproducts Synergy Recycle Processor • Energy Conversion (Beneficial Use)• Disposal

SUPPLIERS• Labor (Human Resources)• Product & Service Suppliers• Education & Training

POLITICAL• Local & Community• State & Regional• Federal

SPECIAL INTEREST• Business & Industry Associations• Community, Non-profits, Public & Special Interest

• Media• Seattle Establishment Icons

SUPPORT• Policy & Regulation• Insurers & Legal• Funders & Investors• Utilities• Public Services• Benchmark Peers

INFL

UENC

ERS

10

Market CharacteristicsT

AS

K 1

Washington State creates >6 million tons of C&D waste per year:

2.8 million goes into landfills 3.2 million tons is presently diverted to recycle, reuse, or other beneficial use

Prior to World War II ... buildings were typically disassembled by hand

The advent of heavy demolition machinery and spiking demand for housing, spurred the advent of crush-and-dump demolition that is practiced today

Deconstruction can succeed in areas where: Large number of vacant, deteriorated properties that are constructed prior to 1950 A strong accessible reuse market, including export markets Large metropolitan areas with a consistent demand for used building materials Non-profit programs that are focused on achieving both social and environmental objectives.

These issues influence the feasibility of deconstruction: Project time constraints Housing preservation Toxics: lead-based paint; asbestos-containing materials Market perception of used building materials Code issues Used building material markets and the Internet Export markets Alternative applications for used building materials

11

System UniverseT

AS

K 1

The System Universe represents a high-level map of the elements of an enterprise and the necessary relationships of those elements that determine the system’s ability to perform.

RESOURCES

CHALLENGES

MARKET

ACTIVITIES

EXTERNAL DRIVERS & TRENDS

Lessons Learned

12

System UniverseT

AS

K 1

We consider the four primary elements of this picture to define the macro characteristics that will affect the progression of a project. This gives us insight into our priorities, phasing, avoidance of risks, and windows of opportunity.

EXTERNAL DRIVERS & TRENDS• Constraints & Opportunities

RESOURCES• Governance• Labor Market & Union• Training, Academic &

Research• Business, Industry &

Associations• Investors, Funding,

Insurance• Political Support• Regional Assets &

Infrastructure• Community Support

MARKET• Regions• Buildings• Places• Programs• Collections

CHALLENGES• Current Conditions, Known Constraints / Barriers• Competitive Forces• Handling• Incentives, Timing• Proximity• Weather• Ownership, Accountability

13

Models & Needs TASK 2

To develop an effective operation, we first need a clear description of all the factors that are potentially involved with the operation. It does not matter who owns them or where they are, just what is needed to operate the system.

We will start with a broad view to give ourselves the greatest overall perspective (see System Universe).

Then, we will layout the activities and the way it all gets done to be a whole and viable operation (see Master Process).

Finally, we will identify the fundamental inputs and outputs to understand who’s doing what, how much, for whom (see Market System SIPOC– those suppliers, inputs, processes, outputs, customers).

These tools then help us decide how we fit with who is already doing what, how much, and what else must be done in activities, incentives, standards, etc.

Our goal is to have a set of tools that provide a framework to guide our conversations and help develop our options, approaches, and decisions – ultimately enabling necessary change.

1.Hybrid Deconstruction Pro Forma Models

2.Assessment Scenario Summaries

3.Scenario Descriptions & Assumptions

14

SIPOCT

AS

K 1

TA

SK

2

The SIPOC accounts for Suppliers and the Inputs they provide to a Process, which leads to creating Outputs for a set of Customers.This tool has the ability to clarify terminology and the pattern of issues of a Market System that ultimately affects the market and its processes. Based on this framework we account for resources and outcomes that will drive a business model and an operating business process. Here, we use it to indicate the flow of the market and the volumes and opportunities of each sector.

15

TA

SK

1T

AS

K 2

Pro Forma Introduction

The Pro Forma Model tool has the ability to take a prescribed a set of assumptions as inputs, constraints, and resources… and provide a set of output results based on a set of rules defined by a process and market.

Each Scenario includes a set of assumptions of material volumes, labor use, transportation, facilities & equipment, HDC referrals, and costs to provide output indicating results of revenue, redistributed volumes, and other benefits or risks.

16

King County

TA

SK

1T

AS

K 2

Proforma Template

Aggregate

Panels

Dropbox

Reuse

Wood

Gypsum

Asphalt

Structural Lumber

Non-structural Lumber

Furniture Lumber

Landfill

SALVAGE FOR SALE!

Wood grinding

Gypsum separation

Asphalt grindingHDC

//////////////////////////////////////////////////////////////////////// ////////////////////////////////////// //////////////////////////////////////

Structural Lumber

17

Assumptions for ProformaT

AS

K 1

TA

SK

2

• Sell materials at market rates

• Earn $178/ton for removal

• Disposal residual at $ 90/ton

• Business operations & management

• Grow business over 4-year ramp-up

• Invest in land & building

18

Pro Forma Summary AnalysisT

AS

K 1

TA

SK

2

The Ownership Scenario Assessment summary is a chart of various defined options compared using a set of predefined criteria.

Each option is rated against the criterion. A description is included in each case to clarify and record the basis for the rating. The options with the highest total ratings are the preferred options.

This technique records the agreed upon specifics that drove the decision and the criteria used. This provides transparency and facilitates the documentation of decisions. Often this approach leads to inspiring new or better combinations or choices.

19

TA

SK

1T

AS

K 2

Scenario 1HDC BASIC. HDC owns and operates a processing facility designed to optimize recovery value of building materials. Houses are panelized and transported to HDC for full deconstruction and then shipped off site for further processing by private companies.

SCENARIO TOTAL

#1 - HDC BASICHDC owns and operates a processing facility designed to optimize recovery value of building materials. Recycled commodities are sent to specific private processors. Structural lumber is processed, graded, and sold onsite.

24.0 2.0

$15.6 million

- Provides a structure and standard- Stabilizes the market

3.5

35 direct people

2.0 3.0 3.0

- Doesn't catch and use a volume of structural lumber

3.0 2.0

- Least impact on overall diversion objective

2.5

- Size of investment

3.0

Quickest to achieve functional performance; Funding; Popularity; Window-of-opportunity, etc.

Best able to change with supply or demand trends Can add or change processes as materials or volumes change

Practical capability to meet demandsGreatest diversion impactFlow, capacity

Least concern for known unknownsCertainity, Predictability in achieving objectives"Hanging your neck out"

Diversion Liability RiskTraining

Hybrid Deconstruction Business AssessmentPurpose: To divert the greatest amount of C&D waste from the landfill for useful value

Time to ImplementRelationships

Market Adaptibility

Workforce Opportunities

Highest potential in number of jobs

Best builds rapport with private businessSupports Existing Processers

Net value in 2020Quickest to pay-out, best revenue streamBest Economic benefit

Embodied EnergyInvestment

Least added energy to benefit as salvage or recycle

Highest potential in level of wages

20

TA

SK

1T

AS

K 2

Scenario 2HDC + Structural. HDC receives structural lumber from other building salvage and deconstruction operations, processes, grades and resells in “bulk” packages; this is in addition to HDC specific deconstruction projects identified in Scenario #1.

Advantages:This scenario is defined to fill a market need for structural grading which is missing because no one salvage company recovers enough structural lumber to make grading and storage economical.

SCENARIO TOTAL

#2 - HDC +StructuralHDC receives structural lumber from other building salvage and deconstruction operations, processes, grades and resells in “bulk” packages; this is added to Scenario #1. Materials are tracked to provide credit to materials brought on

32.0 3.0

$18 million

- Provides a structure and standard- Stabilizes the market

5.0

35 direct people

More indirect people due to secondary use of structural lumber

3.0 4.0 4.0

- Collects and uses a volume of structural lumber

4.0

- Provides more space to handle variation

3.5 2.5

- Size of investment

3.0


InvestmentWorkforce

Opportunities Training Relationships Embodied

EnergyMarket

Adaptibility Diversion Liability RiskTime to

ImplementNet value in 2020Quickest to pay-out, best revenue streamBest Economic benefit









*

* Including lumber from all of King County

21

TA

SK

1T

AS

K 2

Scenario 3HDC + Recycle. HDC is collocated with commercial processing of essential material streams at one site. . Houses are panelized and transported to HDC for deconstruction and further processing by private companies on-site.

Advantages:Significant reduction in cost for transportation when compared to Scenario #1.

SCENARIO TOTAL

#3 - HDC +RecycleHDC is collocated with commercial processing of essential material streams at one site. HDC sends source separated non-reusable materials to co-located processors who take wood waste, gypsum and asphalt shingles and turn them into marke

30.0 3.0

$15.6++ million

- Provides a structure and standard- Stabilizes more of the market

4.0

35 direct people

4.0 2.5

Contract relationships

- May cause consolidation of industry players- Gives preference based on a bidding selection

4.0

- Minimizes transportation to the Recycling Processors

4.0


4.0

- Next best control of process and flow

2.0

- Size of investment- Requires cooperation of various other Recyclers- Not in my backyard

2.5

- Requires management and coordination


InvestmentWorkforce


EnergyMarket











22

TA

SK

1T

AS

K 2

Scenario 4Support Industry. Reinvest to Support Existing Market Players: Salvage and recycle processors manually deconstruct materials on site and haul to their own processing facilities. Post deconstruction building materials are commingled and sent to regional C&D facilities. This is a ‘virtual integration’ of Salvage and C&D Waste Operations (no HDC facility)

SCENARIO TOTAL

#4 - SUPPORT INDUSTRYReinvest to Support Existing Market Players. Maximize removal of their barriers: Salvage processors manually deconstruct materials on site and haul to their own facilities. Remaining deconstruction building materials are commingled

37.5 5.0

$11.3 million

- Shows commitment- Helps create market- Coordinates information

3.0

32 direct people

5.0

Knowledgeable people in the industry are used as mentors to train new employees

5.0

Contract relationships + Investment relationship

- Two major relationships

4.5 5.0

- Minimal capital investment and nature of distributed activity will tend to be the most robust and responsive to needs

3.0 3.0

- Sharing risk- Equipment risk

4.0

- No land acquisition, capital construction, startup


InvestmentWorkforce


EnergyMarket











23

TA

SK

1T

AS

K 2

Scenario 5

HDC + Structural + Recycle. HDC receives structural lumber from other building salvage and deconstruction operations, processes, grades and sells this lumber; and HDC is collocated with commercial processing of essential material streams at one site.

Advantages:This scenario is defined to fill a market need for structural grading which is missing because no one salvage company recovers enough structural lumber to make grading and storage economical. Significant reduction in cost for transportation when compared to Scenario #1 and to Scenario #2.

SCENARIO TOTAL

#5 - HDC +Structural +Recycle Sum of #2 and #3 34.0 4.0

$18++ million

- Provides a larger structure and standard- Stabilizes more of the market

5.0

35 direct people

More indirect people due to secondary use of structural lumber

4.0 2.5

Contract relationships

- Larger facility with benefits of #2 but consolidation of #3

5.0

- Maximizes use of structural lumber and minimizes transport to Recycle Processors

4.0


5.0

- Best control of process and flow of most materials

2.0

- Largest size of investment- Requires cooperation of various other Recyclers- Not in my backyard

2.5

- Requires management and coordination


InvestmentWorkforce


EnergyMarket











* Including lumber from all of King County

*

24

TA

SK

1T

AS

K 2

Status Quo

SCENARIO TOTAL

#6 - Status Quo

19.0 1.0

$0 dollars

- Sends the message of little commitment- Lacks sharing of needed information- No catalytic contribution

1.0

0 direct people

No change

1.0 1.0 1.0 3.0 1.0 5.0 5.0

Already doing it


InvestmentWorkforce


EnergyMarket











Status Quo. No change from present actions, policies, investments.

25

TA

SK

1T

AS

K 2

Definitions

Break even for the cost of operations…

This is the cost of operating the HDC, and retiring the investment cost, but providing no further return on investment (except increase in land value).

It is listed in terms of the required cost for removal of one ton of material from a demolition site.

26

TA

SK

1T

AS

K 2

Pro Forma Breakeven Comparison of Scenarios

$167 $165

$160

$138

$158

$170

#1 #2 #3 #4 #5 #6

Bre

ak e

ven

$$/T

on

Business Scenario

GO

OD

150

140

170

160

180

130

$215200

190

$11.3M$18++M

$18M$15.6++M

$15.6M$0 $ Investment

27

TA

SK

1T

AS

K 2

Pro Forma – Comparison of Scenarios

Hybrid Deconstruction Business Assessment

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

#4 -SUPPORTINDUSTRY

#5 - HDC+Structural+Recycle

#2 - HDC+Structural

#3 - HDC+Recycle

#1 - HDCBASIC

#6 - StatusQuo

Scenario

Cri

teri

a

Time toImplementLiabilityRiskDiversion

MarketAdaptibilityEmbodiedEnergyRelationships

Training

WorkforceOpportunitiesInvestment

$138

$158

$165

$160

$167

$178

$11.3M

$18++M

$18M

$15.6++M

$15.6M

$0

Break even $$/Ton

$ Investment

# 4Support Industry

# 5HDC + Structural +

Recycle

# 2HDC +

Structural

# 3HDC +

Recycle

# 1HDC Basic

# 6Status Quo

28

TA

SK

1T

AS

K 2

Pro Forma – Comparison of Scenarios

Assessment Rating of Two Factors

0.0

2.0

4.0

6.0

8.0

10.0

12.0

#5 #4 #3 #2 #1 #6

Scenario

Ra

tin

g

Diversion

EmbodiedEnergy

29

TA

SK

1T

AS

K 2

Pro Forma – Comparison of Criteria

Hybrid Deconstruction Business - Scenario Assessment

0

5

10

15

20

25

Criteria

Sc

en

ari

o R

ati

ng

#6 - Status Quo

#5 - HDC+Structural+Recycle

#4 - SUPPORTINDUSTRY

#3 - HDC+Recycle

#2 - HDC+Structural

#1 - HDC BASIC

InvestmentWorkforce


EnergyMarket

Adaptibility DiversionLiability

RiskTime to

Implement

For any given criteria, which scenario has the advantage, or disadvantage?For any given criteria, which scenario has the advantage, or disadvantage?

30

1. Basic Tools & Materials Necessary for Deconstruction

2. Workforce Impact – Job Activities

3. Workforce Development Options4. Training Manual Table of Contents

(with example manuals)

5. Deconstruction Training & Education Resources• Existing national C&D training programs

• Technical education materials

GRAPHICS:Workforce Development – A Sustainable SystemMaster Process

Workforce Development TASK 3

Various roles, skills, and attributes are needed to run the processes necessary to achieve the goals of Hybrid Deconstruction, community-wide. As our market demands grow, the need for more skilled people will increase.

To this point, various organizations have adapted the skills of their existing teams to meet the needs, or as entrepreneurs have built the team they needed.

Some organizations are near capacity with the people they have.

Our intention is to assure that appropriate marketing, development, training, and certification programs are in place to ensure we have a qualified and available workforce and contribute to our economic development of the region.

31

TA

SK

1T

AS

K 2

Workforce DevelopmentT

AS

K 3

The System Universe for Workforce Development is interdependent on several factors:

32

Master ProcessT

AS

K 1

TA

SK

2T

AS

K 3

The Master Process is a high-level view of the critical business inputs, activities, roles, skills, tools, external relationships and key measures needed to achieve our desired outcomes.

33

TA

SK

1T

AS

K 2

TA

SK

3

• Communicate, educate, incentives 1

• Manage Audit, inspection, certification 1

• Innovate methods, materials, measures 3

• Load, Logistics, Haul (on-site) 6

• Evaluate, Plan, Measure (incl. hazards: asbestos, lead, etc.) 4

• Extract (on-site) 5

• Disassemble, Machine, Process (at HDC) 12

• Grade lumber 1

Job Activities with unique issues for Hybrid Deconstruction

# FTE’s

34

Training Manual Highlights, What’s DifferentT

AS

K 1

TA

SK

2T

AS

K 3

Section 1: Introduction Section 2: Deconstruction versus Demolition Section 3: Worker Safety, Health, and ConductSection 4: Planning the Job

Building Survey and Action Plan walkthroughBasic Tools neededEquipment and transport mechanisms WorksheetsLayout of a jobsite

Section 5: The Deconstruction Process – On-sitePrinciples of DeconstructionSequence of work

Section 6: The Deconstruction Process – Off-sitePrinciples of DeconstructionProcessesTools and Equipment

Section 7: Business OperationsTeam PlanBest practices and case studies of teams & projects

Deconstruction vs. Construction

35

OptionsT

AS

K 1

TA

SK

2T

AS

K 3

1. Find their own way, based on market need – companies, schools, and individuals. Be sure challenges and barriers are understood and minimized so this happens as quickly and efficiently as possible.

2. Target communications and education to high-leverage roles – i.e. to Construction Estimator, Planner, Auditor, Supervisor, and Leadership. Having key people aware and trained in these positions helps clarify the real issues and opportunities that entrepreneurial companies will want to know. This insight would then leverage appropriate action to develop the jobs and workforce.

3. Provide information and incentives to Industry Associations to train, certify. This raises broad awareness and provides a legitimate place to learn and an honor to achieve.

4. Provide information and incentives to teaching organizations (public, private) to train, certify. This sensitizes existing institutions to the role they can play in developing the new practices.

5. Provide information and incentives to individuals to get trained, certified. This alerts people who are interested in doing this kind of work.

6. Develop and deliver a series of training programs. This standardizes the regional, perhaps national, way of approaching the work and seeing the opportunities.

36

1. Recommendations & Other Opportunities …ways to Strengthen the Market

2. Assessment Criteria

GRAPHIC:Assessment Ladder Scenario Rating Pareto ChartCriteria Influence Bar Chart

Recommendations TASK 4

An effective business is based on how well it can orchestrate several interdependent factors: external forces, market attitudes, resources available, business processes needed, and challenges to overcome.

Specific features within these factors can help, hinder, or sometimes catalyze our ability to achieve our goals – things like incentives, standards, consistency of policy, assistance.

Sometimes, when we do things is as important as what we do. Our business model will introduce a way to take what we know now and help us decide and plan what to do next.

37

RecommendationsT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

1. Select Scenario #4 or #5 to establish the means for hybrid deconstruction to maintain a share in the C&D waste marketplace

2. Improve the information management and market communications surrounding C&D activities

3. Require a Site Audit for every substantial C&D demolition site

4. Incentivize new processes

5. Demonstrate higher diversion for government construction projects

6. …Maintain or expand existing programs

38

RecommendationT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

1. Select Scenario #4 or #5 to establish the means for hybrid deconstruction to maintain a share in the C&D waste marketplace. This involves at least one of these activities:Scenario #4:– Write two RFP’s requesting private organizations to increase savage and recycle

coordination by offering funds to invest in increased private capacities. • Salvage must require lumber grader, construct a facility for sorting, storing, and selling structural

lumber, partner with a recycle organization to perform on-site deconstruction targeting higher recovery rates for both recycle and reuse

• Recycle must require invest in facilities and equipment to process increased material flows, partner with a salvage organization to perform on-site deconstruction activities targeting higher recovery rates for both material streams

Scenario #5:– Procure land and construct a facility, or procure land with an existing reusable facility.

• This facility shall be located adjacent to sufficient land to support one or more private recycle processing lines.

• Write one RFP inviting existing recycling organizations to move to this collocated HDC/processing site.

• Further, this facility shall support reuse structural lumber recovered from around King County, brought to the facility for the purpose of grading and resale.

Added option for either Scenario #4 or Scenario #5:– Execute this action with either scenario in partnership with King County – expanding the

scale of the facility and investment to include Type 5 C&D materials from Seattle and King County.

39

RecommendationT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

2. Improve the information management and market communications surrounding C&D activities.

Goal: Provide a data management capability to all market participants • Maintain and access a central database of materials across all C&D sources• Provide access to this information database tool for the region suppliers and customers to input

and find reusable materials – easily, comprehensive, timely, etc. • Create an advertising and promotional program to expand availability and improve use • Market it and integrate it into existing operations

This involves one of the following:– Improve the King County Material Exchange Web Site system– Create a City of Seattle C&D data management tool, connected to permits

(Data may include: site, location, material inventory, hazardous materials, etc.)

– Build a City of Seattle C&D data management tool, from an existing private company’s system

40

RecommendationT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

3. Require a Site Audit for every substantial C&D demolition site.

Legislate the requirement and connect the audit to the permit process, or establish a demolition materials inspection arm of DPD

Address the difference between identifying hazardous material that can be taken to the landfill and material clean enough (based a much stricter requirement) that it can be recycled for beneficial use, or reused directly.

Purpose: To identify diversion potential. Clarify nature of hazardous waste at a site.

41

RecommendationT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

4. Incentivize new processes

Offer one grant each year (~$20,000 – $80,000) to invite an existing market participant to expand C&D processing into an underexploited area of recycle or reuse.

The grant must require a partnership between recycler and end-user, or recycler and manufacturer, with an agreement to utilize material in a pilot program to test quality control, scalability and market value of the innovation.

The City must back this grant with a seed-loan program to insure the partners can scale their innovation if it is effective.

42

RecommendationT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

5. Demonstrate higher diversion for government construction projects

Establish a City construction and demolition (C&D) waste management plan that would set “best-management” policy (including deconstruction goals) for all City government projects.

Not only would this help to establish protocol for City offices that have construction or demolition projects, but it would also set a standard for contractors and homeowners in the region.

Further, this plan must require the City to use salvaged and recycled building materials on new and remodel projects. For example, fund all government buildings to include 2% for construction with reused or recycled materials (like 1% for art).

A funding target of 2% should enable reuse and recycle rates of between 10 and 30%, since many products containing recycled materials are available at small premium cost.

43

RecommendationT

AS

K 1

TA

SK

2T

AS

K 3

TA

SK

4

6. …Maintain or expand existing programs

Sustainable Building: The City provides technical assistance for the building industry regarding the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) standards, local Built Green standards for residential construction, and a Green Home Remodel Program.

Waste Prevention: Research is underway into the cost/benefits of salvage and deconstruction activities during the demolition phase.

Recycling Technical Assistance and Training for Contractors: Recycling information is available through the Resource Venture.

Recovery of C&D Materials in Self Haul Loads to City Transfer Stations: The future redesign of its transfer stations should allow the City to recover a much higher percentage of C&D materials.

Business Plan studyfor the City of Seattle Hybrid Deconstruction Center

© 2009, City of SeattleProprietary and Confidential

prepared by Clearpath, LLCwww.clearpathusa.com

Thank you

Business Plan study for the City of Seattle Hybrid Deconstruction Center © 2009, City of Seattle Proprietary and Confidential prepared by Clearpath, LLC.

Documents

market description

market adapability

deconstruction cost

partial deconstruction

evaluation of market

total market system

user market demand

city of seattle proprietary