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Home My WebLink About10 4TH QTR SOLID WASTE REPORT 03-17-09Agenda Item 10 y-.. ~._ Reviewed: .~ ~ AGENDA REPORT City Manager Finance Director NIA MEETING DATE: MARCH 17, 2009 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: TIM D. BEREFT, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: FOURTH QUARTER 2008 SOLID WASTE CONTRACT REPORT SUMMARY CR&R achieved the contractually required 50% solid waste diversion goal in 2008, but has yet to provide a Recyclable Buyback Center in Tustin to comply with contract requirements. RECOMMENDATION It is recommended that the City Council receive and file this report. FISCAL IMPACT There is no fiscal impact associated with this item. BACKGROUND CR&R Inc. assumed responsibility for City solid waste collection and recycling services on October 1, 2007. This report is intended to provide a summary of CR&R's accomplishments through the fourth quarter of 2008 and identify current outstanding issues. California Public Resources Code Section 40051 requires local agencies to achieve mandated waste diversion goals and implement programs which maximize the use of all feasible source reduction, recycling, and composting options in order to reduce the amount of solid waste that must be disposed of by transformation and landfill disposal. The City's contract with CR&R specifies programs that are consistent with these requirements by emphasizing source separation as the first priority for residential, multifamily, commercial and roll off services. Section 6.06 of the Franchise Agreement (attached) requires CR&R to achieve a 50% diversion rate for all waste collected and for each service category. The attached 2008 fourth quarter report from CR&R includes an annual collection and diversion summary and staff and has verified that CR&R achieved both of these major contract objectives in 2008. Fourth Quarter 2008 Solid Waste Contract Report March 17, 2009 Page 2 The service category and total diversion rates for 2008 are as follows: ServiceType Tons Tons Tons Diversion Collected Landfilled Recycled Rate Single Family 20,503 9,837 10,666 52% Multi Family 16,717 7,301 9,416 56% Commercial 29,361 14,648 14,713 50% C&D Roll Off 5,865 1,612 4,253 73% Total 72,446 33,399 39,047 53.9% Single family recycling proved to be more of a challenge than expected because recycling audits required by the City found diversion rates were lower than reported in past years. The audits found that 47% of the black trash carts inspected had more than 10% recyclables. After the audits were completed, CR&R followed up with outreach efforts in those areas where diversion rates were lower than expected to better educate citizens on the residential recycling program. Subsequently, a post audit found a 23% increase in the proper use of black trash carts. Multifamily recycling diversion goals have been achieved by emphasizing the processing of most waste materials through CR&R Material Recovery Facilities and by some source separation at those locations that have the physical space to accommodate recycling bins. For commercial customers, CR&R has met the program diversion goals by a combination of source separation and "A" routing those businesses that have recyclables but do not source separate. "A" routing involves the routing of collection trucks to waste bins which have been previously identified as having a high potential for recyclable material. The Franchise Agreement (Section 3.03.3) requires that CR&R deploy recycling bins to all commercial establishments by April 1, 2009. CR&R has not yet achieved this requirement and staff recognizes that the goal may not be fully attainable largely due to a business manager's perceived lack of space to store recyclables. Staff approved a CR&R request to divert mixed waste to a material recovery facility pending full bin deployment. Despite the obstacles, CR&R will continue their aggressive efforts to maintain and increase the deployment of bins to commercial customers. At some point in the future, the City may be compelled to consider mandatory recycling for all commercial and multifamily customers. Roll off recycling has been an unqualified success due to the strict enforcement of the exclusivity of the Franchise Agreement combined with CR&R's aggressive material recovery efforts at its facilities and City staff's ongoing implementation of the City's Construction and Demolition Debris Ordinance. Fourth Quarter 2008 Solid Waste Contract Report March 17, 2009 Page 3 Other Contract and Solid Waste Issues 1. CR&R has not established a recycling buyback center as required by Attachment B, Section 4.7 of the contract (attached). CR&R is disputing the requirement and requesting the City to instead approve .the siting of a reverse vending machine and/or to suspend the requirement for another year. Staff is continuing to discuss this issue with CR&R. 2. The Scoping Plan for The California Global Warming Solutions Act of 2006 was approved by the California Air Resources Board in December. The Scoping Plan contains the strategies that California will use to reduce the greenhouse gases and mandated commercial recycling is one provision that will have a profound impact in the City's Solid Waste Program. It is unclear at this time whether mandated commercial recycling is mandatory source separated recycling or just mandatory processing of all commercial waste. 3. In December, 2008, The California Integrated Waste Management Board (CIWMB) approved the City's 2005-2006 biennial review with diversion rates of 48% in 2005 and 53% in 2006. The 2006 rate is the first time the City has ever surpassed the state required 50% diversion rate. Staff attributes this to the aggressive implementation the City's Construction and Demolition Waste Debris Recycling Ordinance and the City's implementation of the Commercial and Multifamily Recycling Programs required by the CIWMB during the SB-1066 time extension proceedings. Because the City has complied with the 50% diversion by 2006, the City will now be subject to quadrennial reviews by the CIWMB pursuant to the recently enacted SB 1066. Although staff is still required to submit annual reports to the CIWMB, the next full review by the CIWMB will not occur until 2012. 4. This spring, CR&R will request the first contractually required rate adjustment since the contract started in October of 2007. The adjustment will include a Producer Price Index for Natural Gas and Finished Goods for the period of October 1, 2008 to December 31, 2008 and a 1% rate bonus for achieving the contract waste diversion goal. Staff will return to the City Council in April to introduce the proposed rate adjustments and to request the City Council to set a public hearing for June. If approved by the City Council, the adjusted rates would become effective July 1, 2009. Fourth Quarter 2008 Solid Waste Contract Report March 17, 2009 Page 4 In conclusion, staff is satisfied with CR&R's efforts to date. However, CR&R must complete its contractual obligation to site and operate a buyback center in Tustin. Staff will continue to wo k c s I ' h CR&R to accomplish the contract requirement. - ~~ im erlet Joe M rs it r of Public Works/City Engineer Administrative Services Manager Public Works Department Attachment: Contract Sections CR&R December Report 6.06 Annual Diversion Requirement. Contractor shall divert a minimum of fifty percent (50%) of all MSW ,(including Recyclable Materials, Yardwaste, and Construction and Demolition Debris) collected by Contractor in the City on a calendar year basis, beginning with the 2008 calendar year. The Annual Diversion Rate shall be calculated by dividing the total Tons of MSW Disposed (including Residue attributable to the City from the processing operations at all of the Processing Facilities processing materials from City including, but not limited to, the clean and dirty MRFs, Compost Facility, Construction and Demolition Debris Processing Facility and Transformation Facility by the total Tons of all MSW collected by Contractor within the City. The Annual Diversion Rate shall be calculated as shown in Attachment O. In addition to diverting a minimum of fifty percent (50%) of the tons Collected by Contractor in City, Contractor must also divert a minimum of fifty percent (50%) of the Tons Collected by Contractor in each of the following categories: (a) Single Family, (b) Multi-Family, (c) Commercial and, d) Roll Off. For purposes of this requirement, Roll Off includes both permanent and temporary bins and Roll Off Box service, collection of Compactors of ten cubic yards or larger in size, and Construction and Demolition Waste Collection. Attachment B Section 4.7 Buyback Recycling Center Contractor shall establish a Buyback Center for redemption of, at a minimum, all CRV (California Redemption Value) containers within the City limits (PARIS code 2020-RC-BYB). At Contractor's discretion, the Buyback Center may also purchase clean dry cardboard and other Recyclable Materials having commercial value. Contractor shall take all actions necessary to establish the Buyback Center including locating a suitable site, obtaining all local and state land use and other permits required for operation of the Buyback Center, and installation and maintenance of any fencing, gates, landscaping, structures, signage or other improvements required by agencies and jurisdictions having authority over the site. Contractor shall operate the Buyback Center in compliance with all permits and applicable laws at all times. The Buyback Center shall be fully operational on or before October 1, 2008. Contractor shall operate the Buyback Center for a minimum of four (4) hours per day, Monday through Saturday. At Contractor's discretion, the Buyback Center may operate during additional hours and days. Contractor shall establish all buyback prices in accordance with California Department of Conservation rules and regulations. Contractor shall retain all of the revenue from sale of the purchased materials. Contract Compliance - Attachment O Calc Analysis TONS DISPOSED RESIDENTIAL Res Subtotal SFH Curbside MSW 8,081.93 SFH Clean MRF Recycling Residue 1,608.58 Bulky Pick-up Reside 146.80 9,837.31 MULTI-FAMILY MF Subtotal Dirty MRF Residue 5,501.19 MF Landfill 1,799.98 7,301.17 COMMERCIAL "Commercial Subtotal A Route Residue 5,537.46 B Route 6,360.13 Commercial Compactor Residue 2,750.67 14,648.26 C&D C&D Subtotal CRT C&D Residue 1,612.29 1,612.29 TRANSFORMATION Transformation Subtotal Transformation Residue 0.00 0.00 TOTAL DISPOSED 33,399.03 TONS COLLECTED RESIDENTIAL Res Subtotal SFH Curbside MSW 8,081.93 SFH Curbside GW 5,463.48 SFH Curbside Recycle 4,840.74 SFH Rec cle Residue 1,608.58 Bulky P/U 273.24 Bulky Residue 146.80 E-waste 14.65 White Goods 73.86 20,503.28 MULTI-FAMILY MF Subtotal MF Recycle 915.73 MF A Route Rec cle 6,739.15 MF Greenwaste 177.92 MF Landfill 1,799.98 MF A Rte Residue 5,501.19 MF/SFH SERRF Tons 1,582.83 16,716.80 COMMERCIAL Commercial .Subtotal Com Rec cle 1,870.37 Com A Route Recycle 7,846.49 Com A Route Landfill 5,537.46 Com B Route 6,360.13 Com Greenwaste 129.52 Com Rolloff Rec cle 2,521.24 Com Rolloff Residue 2,750.67 ` Com Rte SERRF Tons 2,226.63 Com Rolloff SERRF Tons 118.75 Buyback Center 0.00 29,361.26 C&D C&D Subtotal C&D Recycled 4,234.57 C&D Landfill 1,612.29 C&D Roll-off Recycled 18.23 5,865.09 TOTAL COLLECTED 72,446.43 Attachment O Disposal Percentage 46.10% Attachment O_Diversion Percentage 53.90% YEAR-TO-DATE Summary Report Attachment O Calculatons Page 1 of 1