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HomeMy WebLinkAboutStaff Report 13782 City of Palo Alto (ID # 13782) City Council Staff Report Meeting Date: 1/24/2022 Report Type: City of Palo Alto Page 1 Title: Update on the Implementation of the Deconstruction and Construction Materials Management Ordinance (Ordinance 5472/ Palo Alto Municipal Code Title 5, Chapter 5.24). From: City Manager Lead Department: Public Works Recommendation This is an informational report only and no Council action is required. Background In August 2018, Council accepted the 2018 Zero Waste Plan containing 48 initiatives to help the City meet its sustainability and climate action goals. In June 2019, Council approved the Deconstruction and Construction Materials Management Ordinance (Deconstruction Ordinance, Ordinance 5472/PAMC Title 5, Chapter 5.24, ID#10148) with the effective date of July 1, 2020. The ordinance aligns with the 2018 Zero Waste Plan and implements key provisions including Initiative #1, Require Deconstruction and Source Separation of Construction Materials; Initiative #2, Direct Mixed Construction Materials to High Diversion Construction Materials Recycling Facilities; and Initiative #4, Construction Project Recycling Technical Assistance. In addition, implementing and expanding the Deconstruction Ordinance is a key action identified in the Sustainability and Climate Action Plan to support diverting waste from landfills. The Deconstruction Ordinance applies to all residential and commercial projects undergoing a whole structure demolition needing to submit a building permit application for deconstruction on or after July 1, 2020. The objectives of the ordinance are to 1) increase salvage/reuse to the highest extent possible and 2) increase the amount and quality of recyclable materials for all construction and demolition projects, beginning with whole structure deconstruction projects. During the development of the ordinance, staff estimated based on historical data that it would affect approximately 114 projects annually. Discussion Outreach and education were developed explaining the ordinance requirements and resources available and sent to stakeholders prior to the ordinance’s effective date. Beginning July 2020, City of Palo Alto Page 2 staff proactively reached out to homeowners, general contractors, and architects when building permit applications were submitted to provide information on the newly enacted ordinance requirements and to schedule video conference calls to explain the ordinance and answer questions from the applicants and their contractors. When the deconstruction permits were issued, staff reached out again to meet the general contractors and subcontractors hired for deconstruction onsite to review the requirements, walk through the property together, and ensure expectations were communicated. During deconstruction, staff inspected each project site to document progress, reiterate requirements for source separation and hauling of single stream materials, and address any concerns observed. During the development of the ordinance, staff estimated that the new ordinance would affect approximately 114 projects annually (100 residential and 14 commercial); however, in Fiscal Year 2021, the first year of the ordinance, the City’s Development Center only received 44 building permit applications for projects that involved whole structure demolition (41 residential and 3 commercial) covered under the Deconstruction Ordinance. The main variable that may have impacted the lower number of applications is the COVID-19 pandemic. As summarized in Graph 1, of the total building permit applications in Fiscal Year 2021, the City issued 18 deconstruction permits (16 residential and 2 commercial), and 16 buildings were removed (15 residential and 1 commercial). Staff expects the number of building permit applications to increase in Fiscal Year 2022 while the economy and the development industry slowly recover from the COVID-19 pandemic, which postponed a significant number of projects. Additionally, it is expected that permits for many applications received in Fiscal Year 2021 will be issued in Fiscal Year 2022. City of Palo Alto Page 3 Graph 1: Fiscal Year 2021 Deconstruction Permit Application and Project Status Table 1 below summarizes the tonnages generated from the 15 residential projects that received building permits and had the whole structures removed. The tonnages of materials were documented in Green Halo Systems, a waste management tracking tool for development projects required by the Planning and Development Service Department. Graph 2 provides a visual of the percentage of material categories from these projects. In summary, although the salvaged materials recovered for reuse (mostly lumber, cabinets, doors, and windows) accounted for only three percent of the materials from the 15 residential projects, only eleven percent of the materials were landfilled. Examples of materials landfilled included insulation and painted wood. Materials recovered for recycling included clean wood debris and drywall aside from concrete. City of Palo Alto Page 4 Table 1: Fiscal Year 2021 Residential Deconstruction Tonnage Tonnage Percentage (%) Salvaged for Reuse 47 3.0 Recycled 391 24.7 Concrete Recycled 961 60.7 Landfilled 184 11.6 Total 1,582 Graph 2: Fiscal Year 2021 Residential Deconstruction Tonnage Percentages Palo Alto’s Deconstruction Ordinance is the first of its kind in the United States that covers all commercial and residential projects undergoing whole structure removal regardless of the age of the buildings. Although some deconstruction projects were occuring voluntarily in the City prior to the ordinance, the requirements and process were new to most permit applicants and contractors and, consequently, require contractors to learn the new process. Staff emphasizes continuous communication, outreach, and education with each covered project and the stakeholders involved. Oversight and instances of noncompliance were documented and addressed by Zero Waste staff while continuing to streamline and improve the implementation of the ordinance. City of Palo Alto Page 5 Staff will continue to implement requirements and monitor qualifying projects, and in the coming fiscal year will explore how to potentially expand the Deconstruction Ordinance to include more projects through a future Council action. Resource Impact The resources undertaken for the implementation of the new ordinance were primarily staff time to develop outreach and education as well as communication with stakeholders including project owners and contractors for each project, and collaboration with City staff in different departments and industry representatives. In Fiscal Year 2021, this effort totaled approximately 0.3 full time equivalents of staff time. Stakeholder Engagement Outreach was conducted during Fiscal Year 2021 as the new Deconstruction Ordinance was implemented and included communicating directly with stakeholders with upcoming and active deconstruction projects. A new webpage at www.cityofpaloalto.org/deconstruction was also developed to provide information and resources for the community and stakeholders. Environmental Review This informational report does not require an environmental review.