HomeMy WebLinkAboutStaff Report 2312-2377CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 06, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
18.Update on the Deconstruction and Construction Materials Management Ordinance
(Ordinance 5472, Palo Alto Municipal Code Title 5, Chapter 5.24); CEQA Status – Not a
Project
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: May 6, 2024
Report #:2312-2377
TITLE
Update on the Deconstruction and Construction Materials Management Ordinance (Ordinance
5472, Palo Alto Municipal Code Title 5, Chapter 5.24); CEQA Status – Not a Project
RECOMMENDATION
This is an informational report only and no Council action is required.
BACKGROUND
In August 2018, Council accepted the 2018 Zero Waste Plan.1 The plan contained 48 initiatives
to help the City meet its sustainability and climate action goals. In June 2019, Council approved
the Deconstruction and Construction Materials Management Ordinance2 (Deconstruction
Ordinance, Ordinance 5472/ PAMC Title 5, Chapter 5.24,) with the effective date of July 1,
2020. The ordinance implements the following key initiatives of the 2018 Zero Waste Plan:
•Initiative #1, Require Deconstruction and Source Separation of Construction Materials
•Initiative #2, Direct Mixed Construction Materials to High Diversion Construction
Materials Recycling Facilities
•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 Goals and Key Actions accepted by
Council in October 2022.2
The Deconstruction Ordinance applies to all residential and commercial projects undergoing a
whole structure demolition and requiring a deconstruction permit on or after July 1, 2020. The
objectives of the ordinance are to 1) increase salvage/reuse to the highest extent possible and
1 2018 Zero Waste Plan https://www.cityofpaloalto.org/files/assets/public/v/1/zero-waste/zero-waste-website-
files/2018-zero-waste-plan.pdf
2 City Council, September 27, 2022; Agenda Item #10; SR #14606
https://www.cityofpaloalto.org//files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-14606-scap-update-reach-code-changes-and-advanced-hpwh-program.pdf
2) increase the amount and quality of recyclable materials from all construction and demolition
projects, beginning with whole structure deconstruction projects.
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 occurred voluntarily in the City prior to
the ordinance, the requirements and process were new to most permit applicants and
contractors. During the development of the ordinance, staff estimated based on historical data
that the ordinance would affect approximately 114 projects annually (100 residential and 14
commercial). Staff developed outreach and education materials explaining the ordinance
requirements which were made available and sent to stakeholders prior to the ordinance
effective date on July 1, 2020.
Staff presented previous years’ implementation updates to City Council for Fiscal Year 20213
and for Fiscal Year 2022.4
ANALYSIS
Staff continues to conduct outreach and educate homeowners, general contractors, and
architects when building permit applications are submitted to provide information on the
ordinance requirements. Staff proactively schedules video conference calls to explain the
ordinance and answer questions from the applicants and their contractors. When the
deconstruction permits are issued, staff reaches 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 are communicated. During deconstruction, staff
inspects each project site multiple times to document progress, reiterates requirements for
source separation and hauling of single stream materials, and addresses any concerns
observed.
The City’s Development Center received 78 building permit applications for projects that
involved whole structure demolition (65 residential and 13 commercial) covered under the
Deconstruction Ordinance in Fiscal Year 2023, and received 74 permit applications in Fiscal Year
2022 (74 residential and 0 commercial). As summarized in Graph 1, there were 78 building
permit applications in Fiscal Year 2023, the City issued 44 deconstruction permits (42 residential
and 2 commercial), and 41 buildings were removed (40 residential and 1 commercial). This is a
decrease from Fiscal Year 2022 when the City issued 60 deconstruction permits and 57
buildings were removed (55 residential and 2 commercial). Staff expects the number of building
permit applications to increase in Fiscal Year 2024 based on the increased number of permit
3 City Council, January 24, 2022; Agenda Item #16; SR #13782
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-13782-deconstruction-ordinance-implementation-update.pdf
4 City Council, December 19, 2022; Agenda Item #23; SR #14836
https://www.cityofpaloalto.org/files/assets/public/v/1/cmr-14836.pdf
applications already submitted, and the economy’s and development industry’s continued
trajectory to recovery.
Graph 1: Fiscal Year 2023 Deconstruction Permit Application and Project Status
Table 1 below summarizes the tonnages generated from the residential projects that
completed permit documentation and had the whole structures removed in Fiscal Year 2023.
The tonnages of materials were documented in the Green Halo Systems, a waste management
tracking tool for development projects required by the Planning and Development Services
Department. Graph 2 provides a visual of the percentage of material categories from these
projects. In summary, the salvaged materials recovered for reuse (mostly lumber, cabinets,
doors, and windows) accounted for seven percent of the materials from the 33 complete
residential projects with completed documentations in the Green Halo System, and only eight
percent of the materials were landfilled. Examples of materials landfilled included insulation
and painted wood. Materials recovered for recycling included clean wood debris, drywall and
concrete. This is consistent with Fiscal Year 2022, when approximately 3,635 tons of materials
were created and 251 tons, or seven percent, were salvaged for reuse.
Table 1: Fiscal Year 2023 Residential Deconstruction Tonnage
Tonnage Percentage (%)
Salvaged for Reuse 251 7%
Recycled 880 24%
Concrete Recycled 2,221 61%
Landfilled 283 8%
Total 3,635
Graph 2: Fiscal Year 2023 Residential Deconstruction Tonnage Percentages
Concrete is a heavy material with very high recyclability in the range of 95 to 99 percent. The
common practice to manage concrete and other inert materials at most of the deconstruction
projects is to separate and haul it as a single material for recycling. In Fiscal Year 2023, 2,316
tons of concrete were generated from the 33 residential projects, where 2,221 tons, or 95.9
percent, were recycled. Table 2 and Graph 3 below summarize the tonnages excluding concrete
to provide a different perspective and focus on the management of the rest of the building
materials. This focused analysis more accurately reflects the efforts and results to separate
traditionally mixed waste at the deconstruction projects as required by the ordinance.
Table 2: Fiscal Year 2023 Residential Deconstruction Tonnage
Excluding Concrete
Tonnage Percentage (%)
Salvaged for Reuse 251 19%
Recycled 880 67%
Landfilled 189 14%
Total 1,320
Salvage
7%
Recycled
24%
Concrete
Recycled
61%
Landfilled
8%
Residential Deconstruction Projects Tonnage
Graph 3: Fiscal Year 2023 Residential Deconstruction Tonnage Percentages Excluding
Concrete
Staff conducts continuous communication, outreach, and education with the stakeholders
involved in each covered project. Staff also oversees, documents, and addresses instances of
noncompliance. The most common form of noncompliance is improper sorting of waste into
single material types.
In Fiscal Year 2023, staff proactively worked with the project team of a commercial project
where the structure was planned for complete removal and considered a covered project under
the ordinance. Despite multiple conversations, meetings, and coordination attempts initiated
by staff to assist the project team to fully understand and comply with all aspects of the
ordinance requirements, the structure was rapidly demolished, and materials were not source
separated as required by the municipal code. Staff issued a citation to the permit applicant to
address the violations observed. Staff is evaluating the enforcement plan and appropriate
penalties to be assessed to deter future incidents of non-compliance.
In Fiscal Year 2024, staff continues to implement requirements, monitor covered projects, and
emphasize better onsite source separation for all active and upcoming deconstruction projects.
Staff will also update outreach material and incorporate a feedback mechanism for project
owners and stakeholders to acknowledge their understanding of all related ordinance
requirements. With the ordinance now having been in place since July 2020, staff is also
working with a consultant to conduct an evaluation of the Deconstruction Ordinance’s cost and
effectiveness.
Salvage
19%
Recycled
67%
Landfilled
14%
Residential Deconstruction Project Tonnage
(excluding concrete)
FISCAL/RESOURCE IMPACT
The primary resource impact is staff time for project site visits, documentation, and
communication with stakeholders including virtual meetings and onsite meetings with project
owners and contractors. Staff spends approximately 9 staff hours for each project. Staff also
spends time and resources on collaboration across different City departments and with industry
representatives. In Fiscal Year 2023, this effort totaled approximately 0.33 full time equivalents
of staff time or 700 hours annually.
STAKEHOLDER ENGAGEMENT
Outreach and education were conducted prior to when the Deconstruction Ordinance was
implemented, which included direct communication with stakeholders of upcoming and active
deconstruction projects. Engagement is ongoing through documents, emails, webpage, online
and onsite meetings that emphasize reuse and source separation requirements for all active
and upcoming deconstruction projects. Staff is also involved in regional, statewide, and
nationwide efforts via working groups that focus on deconstruction, reuse, market
development, and construction, demolition, and deconstruction debris management.
ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the Council and is
therefore not a project subject to California Environmental Quality Act (CEQA) review.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer