In a major shift, city to launch zoned-collection system for private carting industry

A Five Star Carting truck.

In a major victory for labor groups and environmental advocates, Mayor Bill de Blasio’s administration will begin implementing a “zoned-collection” system for the city’s private carting industry, undertaking an historic change in how commercial waste is collected and managed in New York City.

For more than a year, consultants and city officials have been studying the industry here and throughout the country to assess the conditions and impacts of private waste collection. In New York City, the Department of Sanitation is responsible for all residential waste collection, but private contractors are responsible for virtually all of the waste collected from businesses, both large and small — about 10,000 tons a night.

Teamsters Local 813, which represents some industry workers, along with a slew of environmental advocacy groups, have assailed the private carting industry as wasteful and exploitative of workers. In its May issue, POLITICO New York magazine examined conditions for workers and some of the environmental impacts of an industry that is relatively unregulated in New York.

In a report that’s scheduled to be released Wednesday, the de Blasio administration will argue a zoned-collection system, known elsewhere as “franchising,” will dramatically reduce vehicle emissions while also giving the city much greater regulatory authority over an industry critics have likened to the wild west.

“I was surprised by the magnitude that moving in this direction would mean,” sanitation commissioner Kathryn Garcia said in an interview before the report’s release.

Zone collection essentially means the city will be divided into zones and contractors will be allowed to bid on specific sectors. Now, a single city block can be serviced by more than a dozen different companies, leading to inefficient routes, excessive pollution and traffic.

Perhaps the most dramatic conclusion in the report is that a zoned-collection system would result in a 49 percent to 68 percent reduction in vehicle emissions and a 42 percent to 64 percent reduction in the industry’s greenhouse gas emissions.

Another notable finding is that the five largest carters serve 46 percent of all customers and collect 55 percent of all revenue, and that the 20 largest carters serve 81 percent of customers and collect 84 percent of all revenue.

The report, which Garcia oversaw, was prepared by a team of consultants including BuroHappold, Sam Schwartz Engineering, Appleseed, and Paul Carpenter Associates.

Private carters have argued that creating a zoned-collection system would drive up prices by eliminating competition, something Garcia says isn’t necessarily true.

"[One] thing we were surprised at is that the small businesses are paying substantially more than the larger businesses,” Garcia said. “They’re paying about 38 percent more.”

She also said the built-in efficiencies of a zone system were likely to drive prices down, based on research from other cities.

“Because you can get such incredible operational efficiency and save money on fuel and even the number of trucks you need, some cities saw prices go down,” she said.

By tailoring requests for proposals toward specific goals, the city will be able to exercise a level of control heretofore unseen in the private waste industry. Goals such as worker safety, recycling rates and environmental impact could all be worked into a contract designed by the city.

“You’d just be able to track [the industry] a lot better and be able to hold them accountable,” Garcia said of the carters. “We’d be able to force them, under this particular scheme, to get their act together.”

Labor and environmental groups said they were thrilled by the news.

“This is not a good day. This is a great day because these workers had no voice,” said Allan Henry, a union organizer with Teamsters Local 813 and a private waste worker. “I wish I could personally thank the mayor myself.”

Henry’s and the union’s primary concern is worker safety and pay. He and his allies have been tracking the industry, following trucks, monitoring transfer stations and talking to workers for two years. Stories abound of workers sustaining injuries, getting paid less than promised and being forced to work in dangerous conditions.

A large portion of the industry is not unionized.

The change could also lead to significant environmental benefits. In New York City, as much as 70 percent of trash is dumped at transfer stations in three areas: north Brooklyn, southeast Queens and the South Bronx. Residents of those neighborhoods, many of whom are low-income and minority, have long criticized the excessive traffic, stench and emissions that accompany the concentrated presence of transfer stations.

“The fact that the cluster of transfer stations happened almost exclusively in communities of color [made] the commercial waste industry the bane of our existence since the 80s and 90s,” said Eddie Bautista, head of the New York City Environmental Justice Alliance. “For us, what’s really key moving forward is how this will provide some relief to some communities that are overburdened with transfer stations. That’s what we’re going to be paying attention to.”

Bautista’s group was among many that formed a coalition roughly three years ago, called Transform Don’t Trash NYC, specifically dedicated to seeking reforms in the private waste industry.

He also applauded the mayor for tackling the issue.

“It’s hard to imagine a sector that affects so many New Yorkers but has been pretty much on its own for as long as it has,” Bautista said. “This is probably the last big piece of the solid waste puzzle that New York City hasn’t really grappled with.”

Industry groups that have long argued against the zone collection system did not declare all out war, but said there are many other ways to achieve the city’s environmental goals. The New York City chapter of the trade group National Waste and Recycling Association said it was eager to work with the city but cautioned against unintended consequences.

“Shifting to a district-based system of commercial waste services would constitute a major change with a multitude of impacts — both known and unknown; the next phase of discussions must give due consideration to alternate paths to achieve mutual goals, as well as carefully assess the trade-offs between various options,” said Kendall Christiansen, head of NWRA’s New York City chapter in a statement. “New York City is well-served by a robust and competitive marketplace that already is substantially consolidated and efficient, with customer choice the keystone of that system.”

Zoned-collection will not happen overnight. Garcia estimates it will take two years for the city to develop a plan and another three years or more to implement it. The City Council will have to pass legislation to codify the changes.

Garcia said the system design will incorporate significant input from the industry. About 22 zones will likely be developed in the five boroughs, each with its own set of parameters.

“This is going to be a relatively long process,” she said. “We want to make it so there are zones that are competitive for a medium provider a large provider a small provider. We know we need to work with [the industry].”

However long it takes, advocates said they were heartened by the direction the city plans to take.

Several workers testified before the City Council last year about conditions in the industry, breaking an industry silence common to workers who feared retribution from their employers. Henry credited those workers with helping set the city on its current path.

“I would want to let them know, ‘What you did mattered,’” Henry said. “Too many times people think nothing’s gonna change. But in this case there’s a lot that’s going to change.”

The executive summary of the report can be read here:http://politi.co/2boPVaF

CORRECTION: A previous version of this story misspelled the name of a consulting company. Sam Schwartz Engineering contributed to the city report.