HomeMy WebLinkAbout08 WASTE MGMNT CONT 10-02-00AG E N DA RE'
NO. 08
DRT ,0.0 .00
DATE OCTOBER 2, 2000 '" '
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
',
REVIEW OF THE NEW SOLID WASTE MANAGEMENT CONTRACT
SUMMARY
This report reviews the development, approval, and implementation of the new solid waste
management services contract with Federal Disposal Service.
RECOMMENDATION
Receive and File.
FISCAL IMPACT
There is no fiscal impact associated with this item.
BACKGROUND
To provide staff with policy direction in the development of bid specifications, the City Council
conducted a public workshop on August 16, 1999, to discuss solid waste collection and recycling
program options. The key issues discussed at that workshop were:
· State of California requirements regarding diversion of waste from landfills (AB-939).
· The Public Works bid process and legal requirements.
· Whether to seek separate bids for residential and commercial customers.
· Residential collection options (number of carts, full automation, collection days)
Staff completed an assessment of the current services and developed a bid document that
attempted to balance public and solid waste industry issues while implementing the consensus of
the City Council and ensuring that the program would comply with State law.
AB-939 and subSequent implementing regulations mandated that the City recycle or divert from
landfills 25% of the City's 1990 landfill disposal tonnage bY 1995. in the year 2000, the
mandated diversion percentage doubled to 50%. Failure to comply with this mandate or to put
forth a "good faith effort" could result in fines levied by the State of up to $10,000 per day.
The California Integrated Waste Management Board (CIWMB) has determined that the City is
making a "good faith effort" and is in compliance with the 1995 25% diversion mandate through
the 1998 calendar year. While the previous level of solid waste service provided was in
compliance with the 1995 mandate, a hauler diversion rate of.55-60% is the minimum necessary
to insure that the City has an effective State calculated diversion rate of at least 50%.
Review of the New Solid Waste Management Contract
October 2, 2000
Page 2
·
In consideration of the issues identified by the City COuncil, staff, and other interested parties the
final bid specifications, approved by the City Council at its~ December 6, 1999 meeting,
incorporated the following key features:
· A single exclusive franchise agreement for all residential and commercial solid waste
services.
· An automated three-'cart residential collection program that is intended to be responsive to
the needs of individual customers.
· Five days a week residential collection.
· The availability of recycling services for all commercial customers on a voluntary basis.
· Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)
indemnification.
· Flat rate charges for single family residents with property tax billing
· Easy to understand rate calculation method.
· Increased public education.
· Increased waste diversion performance requirements to comply with AB 939
· Improved hauler performance reporting
On May 1, 2000, the City Council awarded the solid waste management services contract to the
lowest responsible bidder, Federal Disposal Service. Collection services will be initiated by
Federal 'Disposal on October 1, 2000. Staff anticipates that Federal Disposal will utilize the most
cost effective program components to comply with contract requirements and with the State's 50%
diversion mandate.
The new contract reduces the total annual rate revenue to the hauler by a minimum of.
$2,483,000. This represents a 41% reduction in total customer rates. Over the seven year life of
the contract, the savings to Tustin residents and businesses will be approximately $17.4 million. In
addition, future rate increases for residential and commercial customers will be strictly limited by
the new contract. Initial rates will be frozen for the first two years of the contract. Increases after
the first two years will be limited to the bid amount plus increases in the producer price index.
Monthly residential rates will decrease approximately 4%. Rates will immediately be reduced $.57
a month from the current $12.74 to $12.25. Overall, commercial rates will decrease by
approximately 51%. For the typical commercial customer who has a three-yard bin with twice a
week collection, the rate will decrease $80.91 per month from $153.26 to $72.35 per month.
Various rate comparisons are attached to this report.
The residential collection program is the most significant change in the total scope of services.
Initially, most single-family residential customers (including units in duplexes 'and triplexes) will be
provided with three collection carts. One cart will be provided for green waste only, another for
mixed recyclables, and a third cart for general refuse. If residents do fully utilize the mixed
recyclable and green waste'carts and need more capacity, additional carts will be provided for no
additional cost.
Review of the New Solid Waste Management Contract
October 2, 2000
Page 3
The general refuse cart is required for all single-family customers in order to facilitate the use of
automated collection vehicles. If a single-family customer requires an additional general refuse
cart, then the customer will be charged an additional monthly fee ($4) for each additional cart.
This program feature is the sole incentive for customers to participate in the recycling program.
As illustrated in the attached summary, the use of the extra cart fee is similar to fees charged by
other neighboring jurisdictions. This aspect of the program will commence early next year.
The three cart program also features the extra collection services which customers have come to
expect with no additional charge. Bulky item collection is allowed twice a year for up to three
items on each pickup for each dwelling unit. This service is available to all single and multi-family
residences. Additional pickups will be $20.00 for each. An additional $10.00 per item may be
charged for any item over three (3) items in any one collection. In addition, automated cart
customers may request up to two special pickups per dwelling unit per year, at no additional
charge, of up to one cubic yard of refuse per pickup that exceeds the capacity of the customer's
automated Refuse Cart(s). Additional pickups in excess of two per dwelling unit per year may be
requested for an additional fee of $5.00 per pickup to be billed by the Company.
The three-cart collection system provides the City with the maximum residential recycling in order
to comply with State law. Staff believes that the three-cart system and the aggressive commercial
source reduction and recycling program identified in the specifiCations will result in the following
approximate landfill diversion/recycling percentages and clearly demonstrate a good faith effort to
the CIWMB. The table below demonstrates the approximate landfill diversion percentages that the
City will most likely attain with the new contract.
Program Component Estimated hauler diversion
80% of Residential recyclables 15%
recovered
50% Commercial recyclables recovered 15%
Approximate Commercial source
reduction (non-public programs not
measured in waste stream reports)
15%
Diversion of waste to a permitted Waste 10%
to Energy facility (optional)
TOTAL: 55%
Director of Public Works/City Engineer
Senior Management Analyst
Public Works Department
TDS:JM:ccg:review of Solid Waste contract.doc
Attachments:
City of Tustin Solid Waste Rate Comparison
Additional Cart Fees in neighboring jurisdictions
City of Tustin Solid Waste Rate Comparison
Residential
Existing
SingleFa $12.74
Extra Carts
Commercial Rates
2 culyd Existing
1x $68.34
2x $111.28
3x $154.16
4x $197.12
5x $240.02
6x $282.88
,
Proposed Difference %Change
$12.17 ($0.57) (4)
$4.00 new,fee
Proposed Difference %Change
$35.53 ($32.81) (48)
$63.51 ($47.77) (43)
$91.50 ($62.66) (41)
$119.48 ($77.64) (39)
$147.47 ($92.55) (39)
$175.45 ($107.43) (38)
Average
3 culyd Existing
lx $95.04
2x $153.26
3x $211.52
4x $267.63
5x $325.91
6x $384.14
($70) (41)
Proposed Difference %Change
$39.95 ($55.09) (58)
$72.35 ($80.91) (53)
$104.76 ($106.76) (50)
$137.16 ($130.47) (49)
$169.56 ($156.35) (48)
$201.96 ($182.18) (47)
Average
4 culyd Existing
lx $107.98
2x $182.37
3x $256.24
· 4x' $330.42
5x $404.62
6x $478.89
($119) (51)
Proposed Difference %Change
$44.37 ($63.61) (59)
$81.19 ($101.18) (55)
$118.01 ($138.23) (54)
$154.83 .($!75.59) (53)
$191.65 ($212.97) (53)
$228.48 ($250.41) (52)
Average ($157) (54)
Additional Cart Charges Comparison
City of Irvine
Occasional extra refuse bags outside of the cart - no charge
Additional trash carts - $2.40 each per month
Additional recycling or green waste carts- $1.75 each.per month
City of Lake Forest
Unlimited trash in customer provided containers
Additional recycling or green waste carts - $2.00 each per month
City of Laguna Beach
1 additional recycling and 1 additional green waste cart - no charge
Additional refuse carts - $2.00 each per month
City of Orange
1 additional recycling and 1 additional green waste cart - no charge
More than 2 green waste is $2.00 each per month
Additional refuse carts - $2.40 each per month
City of Santa Ana
Additional refuse, recycling or green waste carts - $2.00 each per month
County Unincorporated
Additional refuse carts - $3.25 each per month
Additional recycling carts - $2.00 each per month
Green waste is in customer provided containers
City of Tustin
Occasional extra refuse bags outside of the cart - no charge
Additional refuse cart - $4.00 each per month
Additional recycling and refuse carts - no charge