In scandal’s wake, recycling pilot extended
by MICHAEL J. MISHAK
When local entrepreneurs Patrick Fitzgerald and Ron Gonen pitched their idea of a rewards-based recycling program to Philadelphia officials, they had selected their hometown in part for its reputation as one of the nation’s lowest big-city recyclers.
Now, eight months into a successful and popular pilot based in Chestnut Hill and West Oak Lane, the duo’s startup, dubbed RecycleBank, is unexpectedly contending with another aspect of the city’s character: municipal corruption.
Awaiting word from the Streets Department on their proposal to take the program citywide, the principals — both Germantown Academy graduates — have decided to extend the pilot, which was set to expire at the end of August, while the city’s recycling office recovers from the most recent in a series of Philadelphia corruption scandals.
Last month, David Robinson, the city’s recycling coordinator, in addition to two other officials, was indicted on charges of conspiracy to defraud the government in connection with birthday and retirement parties for a former streets commissioner that were allegedly paid for with $13,000 in city funds.
Robinson, who boosted the recycling pilot as “a brilliant combination of classic retail marketing and city service” in the Local last year, pleaded not guilty to the charges in U.S. District Court on Aug. 9.
“The internal turmoil put things into a tailspin for [the recycling] office, so we decided to continue the pilot for a little longer until they get their feet back on the ground,” Fitzgerald said in an interview last week.
Currently, about 2,500 households in the Northwest participate in the program by placing all recyclable material into 35-gallon bins, each stamped with a barcode to measure the amount each home recycles. The amount is then translated into coupons, worth up to about $30 a month in discounts, for participating local businesses. Customers get the coupons by registering on the RecycleBank Web site.
The Philadelphia pilot, which began in January, has been hugely successful, Fitzgerald said. Recycling rates in the targeted areas have tripled and participating businesses have reported increased store traffic, he said.
As the city Streets Department weighs RecycleBank’s proposal to expand the program citywide, other municipalities are taking notice and signing on.
The company is set to launch operations in Montgomery County and Wilmington, Del. next month, Fitzgerald said. The startup is also currently negotiating with Baltimore, New York City, Pittsburgh and Houston, he said. Several New Jersey counties and townships have expressed interest as well, he said.
Asked about the status of the RecycleBank proposal, city Streets Department spokeswoman Emily Buenaflor said, “The pilot project has shown promising results, however we must carefully review the true impacts of implementing the program on a larger scale.”
Buenaflor added: “We must also consider the long-term sustainability of the program. There is no definitive timeline on our decision, however the Streets Department has made this a priority and does not anticipate a lengthy decision-making process.”
In a report critical of the city’s recycling program released last month, City Controller Jonathan Saidel found that residents recycle just 6 percent of their household trash. Boosting that rate by 1 percent could save the city approximately $540,000 each year, the report said.
Saidel said the city could reach the “very achievable” goal of 35 to 40 percent, potentially saving $17 million annually. Among his recommendations: expanding the pilot incentive program if it proves successful.
