Transcript HOBI International, Inc.

Going Green! Recycle, Refresh and Replace,
Oh My!
Jason Marquardt
American Capital Financial Services
630-512-0066
[email protected]
John Vonder
Providence Capital Network
800-680-0560
[email protected]
IASBO Annual Conference
St. Charles, IL
May 20, 2010
Providence Capital Network, LLC
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Experienced in supporting more than 100 Schools with:
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Equipment Leasing
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End of Cycle Remarketing/Disposal
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Computer Equipment
Software
Copiers
Security Systems
Telecommunications
Transportation
& More
Laptops
Desktops
Monitors
Servers
Routers
Telecommunications
Member of IASBO and other ASBO organizations
Management experience serving on a school board
American Capital Financial
Services, Inc.
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Independent Equipment Lessor for Schools
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Laptops, Desktops and Servers
Monitors
Printers and Copiers
Athletic Equipment
Phone Systems
Buses and Vehicles
And Much More
Member of Illinois ASBO since 2002.
Frequent contributor to IASBO Quarterly Newsletter
Headquartered in Lisle, Illinois.
IT Recycling – The Facts
E Waste in 2007 – Was it Trashed or Recycled?
Products
Total** Trashed Recycled Recycling Rate
(millions) (millions) (millions) (weight)
Televisions
26.9
20.6
6.3
18%
Computer Products* 205.5
157.3
48.2
18%
Cell Phones
126.3
14
10%
140.3
*Computer products include CPUs, monitors, notebooks, keyboards, mice, and “hard copy peripherals”, which
are printers, copiers, mfp’s and faxes.
**These totals don’t include products that are no longer used, but stored.
Source: EPA 1
Why Recycle?
Protecting the Environment
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Hazardous material is prolific in electronics. These substances can
cause problems if the products are not properly managed at end of life.
Lead is used in glass in TV and PC cathode ray tubes as well as
solder and interconnects; older CRTs typically contain on average 4
lbs of lead (sometimes as much as 7 lbs in older CRTs), while newer
CRTs contain closer to 2 lbs of lead.
Mercury is used in small amount in bulbs to light flat panel computer
monitors and notebooks.
Brominated flame retardants are widely used in plastic cases and
cables for fire retardancy; the more problematic ones have been
phased out of newer products but remain in older products.
Cadmium was widely used in rechargeable batteries for laptops and
other portables. Newer batteries (nickel-metal hydride and lithium ion)
do not contain cadmium.
Why Recycle?
Abiding by the Law
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Some electronics (such as color CRTs computer monitors, color CRT
TV tubes, and smaller items such as cell phones and other “handhelds”) test “hazardous” under Federal law. If so, they are subject to
special handling requirements under Federal law, subject to certain
exemptions.
Currently, legislation is not agreed up on the Federal level, but almost
all 50 states have or are reviewing legislation regarding the proper
disposal of electronics.
A Look at ILLINOIS
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On September 17, 2008 Senate Bill 2313, sponsored by State Sen.
Susan Garret, D-29th, of Lake Forest, was signed into law which
establishes statewide goals for the recycling and reuse of electronic
devices. It also bans the disposal of those items in landfills starting
on January 1, 2012!
The program establishes a special fund paid for by manufacturers that
will be used to pay for electronic collections throughout the state.
Qualifying your Recycler
(from the R2 Policy, written and adopted Oct. 30, 2008)
Your recycler should
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HAVE a documented management system that covers environmental,
worker safety and public health practices on-site and downstream
management of end-of-life (EOL) equipment and materials. This may
or may not be a ISO 14001 System.
Comply with environmental, health, and safety legal requirements,
both domestically and internationally, that are applicable to the
recyclers' operations
Use practices to reduce exposures and emissions during recycling
operations.
Send EOL equipment and all material derived from this equipment,
that contain focus materials, CRTs, CRT glass, circuit cards, batteries,
and items containing mercury, only to facilities that are properly
licensed to receive these materials, and use technology designed to
safely and effectively manage these materials - whether in the U.S. or
another country;
Qualifying your Recycler
(from the R2 Policy, written and adopted Oct. 30, 2008)
Your recycler should
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Ensure that an electronics recycler does not use energy
recovery, incineration, or land disposal as a management
strategy for focus materials or equipment and components
containing focus materials.
Exercise due diligence in ensuring that downstream recyclers
and processors manage recycled materials appropriately,
throughout the downstream recycling chain.
Ensure that materials going for reuse are refurbished and
tested for functionality, and residual focus materials are
managed responsibly;
Qualifying your Recycler
(from the R2 Policy, written and adopted Oct. 30, 2008)
Your recycler should
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Track throughput and keep records; store and transport material
securely and safely; and possess insurance, closure plans, and
financial mechanisms to cover the potential risks of the facility.
In general, the export of electronics except in cases where full
documentation of working gear sold for reuse is clearly shown, is
strongly discouraged, due to the lack of proper environmental control
and policies.
Ensure that personal data on EOL electronics going to reuse or
recycling are cleared or destroyed
Your recycler should have a clear and documented plan to handle data
both on a software level, up to and including the DOD level of security
and a physical destruction model for storage devices that cannot be
properly rewritten.
Why Create A
Refresh Program?
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To advance technology within the classroom.
To reduce technology costs within the
District. (Warranty issues)
To eliminate headaches associated with a
mix/match of equipment. (OS issues)
To support the educational needs now and in
the future.
Why Create A
Refresh Program? (continued)
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State driven mandates for compliance.
Eliminate disposal costs and headaches.
“Going Green” initiatives (energy costs)
Stay current with software licensing and
other total cost of ownership costs.
What Are The
Initial Steps?
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Get a detailed count of your current environment. (#
of machines, location, age, etc)
Figure the future needs of the District.
(increase/decrease of users, types of usage,
programs, etc)
Determine what a reasonable annual deployment
schedule could look like?
Investigate if there are any financial constraints tied
to technology.
What Are The
Initial Steps? (continued)
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Discuss the concept with the Board of
Education and District Administration.
Discuss the concept with vendor partners.
(equipment suppliers, leasing co’s, etc)
Set aside time to determine deployment
goals with IT staff.
Kick off the program.
How Can It Be
Implemented?
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By School Location (per building)
By Grade Level
By Building Type (K-12 District’s)
By User (Students, Teachers, Administrators)
What Are Some Of
The Pitfalls to Avoid?
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Unequal Distribution of Resources (jealousy
amongst users).
Lack of Administration Commitment.
Re-alignment of Financial Resources.
Different equipment models, operating
systems.
How Can Leasing
Play a Role?
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Leasing can reduce the financial cost of
technology within the District. (0% or below)
Leasing can help create a balanced budget,
with even annual expenditures.
Leasing can help avoid equipment
obsolescence.
Leasing can eliminate the disposal costs and
headaches associated with refresh.
Lease vs. Purchase
($100,000 of computers)
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Lease
Payments
($32,000/year x 3) =
$96,000
No out of warranty
costs
Easy to forecast
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Purchase
Purchase = $100,000
Break/Fix costs
Indirect costs for
unreliable equipment
(user frustration,
downtime)
IT Resale (Replace)
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Reuse can be an effective mechanism for recovering value and
extending product life
Resale should be considered for working equipment generally less
than 5 years old for:
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Computer equipment
Networking equipment
Cellular telephones
Business telephone systems
Associated Peripherals.
Benefits
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Careful observance of the life cycle of electronics and increased
velocity of retirement will benefit the owner/lessor economically in the
EOL management.
Working electronics, less than 5 years old, should have residual
value.
This residual value can be used to purchase or lease new or slightly
used electronic equipment.
This residual value may also support the cost of reverse logistics and
equipment removal as well as the recycling of non working gear.
Best Practices for Resellers
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Reseller should provide reverse logistics both safely and cost
effectively.
Logistical coordination between the IT Recycler/Reseller is
critical for cost savings.
Reseller should provide full asset tracking, both serialization
and asset tag tracking where applicable.
Data protection should be a number one priority for the IT
Reseller/Recycler. Data destruction certification should be
required by the owner/lessor of the material.
Resale channels should be multi-tiered, including international
channels, on line channels, as well as domestic refurbishers
and resellers, and other end users (schools).
Reselling
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Maintain an inventory of equipment
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Provide the inventory list to a qualified remarketer/recycler
Evaluate their qualifications, pricing, process, & references
Evaluate merits of selling equipment to constituents through the
remarketer
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Specifications
Year Acquired
Quantity
Revenue Maximization or
Discounted Equipment
Obtain proper documentation
Successful Tech Rotation Programs
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Refresh Lease
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3 or 4 year terms
Leasing company owns the equipment
Leasing company is responsible for disposal/liquidation
Total payments are less than the cost of the equipment
Capital Lease with Remarketing in the Future
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3, 4, or 5 year terms
School owns the equipment
Leasing company liquidates what you don’t want to keep and returns significant
revenue back to the school