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Home My WebLink AboutNB 1 RECYCLING PROG 06-17-91NEW BUSINESS N0. 1 Et 617,-91 l �- / -� m _ATE: JUNE 17, 1991 Inter-Co TO: WILLIAM A. HUSTON, CITY MANAGER FROM: RECYCLING CONTRACT NEGOTIATION TEAM SUBJECT: RECYCLING NEGOTIATION PROGRAM RECOMMENDATION It is recommended that the City Council approve the recommended recycling program and authorize the City Manager to execute modifications to the current franchise Agreement with Great Western Reclamation, Inc., subject to approval of final documents by the City Attorney. BACKGROUND The California Integrated Waste Management Act of 1989 (AB 939) requires cities and counties to reduce the quantity of wastes disposed in their jurisdictions by 25% by the year 1995 and 50% by the year 2000. AB 939 also requires the City to prepare a Source Reduction and Recycling Element (SRRE) which will be coordinated and incorporated into the County's Integrated Waste Management Plan. 'As required by AB 939, the City's draft SRRE is currently under review by the California Integrated Waste Management Board, adjacent cities, the County and the local County task force. The first public hearing on the SRRE will be held by the City Council on July 1, 1991. In order to meet AB 939 and SRR goals, the City of Tustin must increase its' waste diversion rate through recycling. Recycling alternatives explored in the City's Draft SRR Element include: curbside collection mobile collection drop-off centers ° buy back centers ° public area recycling receptacles ° commercial, industrial & government recycling ° material recovery facilities salvage operations Generally the two most successful techniques for achieving the greatest diversion results are curbside collection and/or the use of a material recovery facility. According to the City's Draft SRR Element's Waste Generation Study, 81,647 tons per year of solid City Council Report Recycling Program June 17, 1991 Page 2 waste is generated in the City of Tustin. Of the total diversion, only 14,484 tons per year or 17% is waste stream generated by single family uses. Since a large portion of the City of Tustin's population resides in multiple family housing and a large portion of the City's waste stream is commercial/ industrial users, a curbside collection program would have a marginal impact on the amount of solid waste diverted from disposal in the City. It is, therefore, staff's opinion that utilization of a material recovery facility (MRF) is the most desireable recycling approach. Under this arrangement all trash is taken to a facility where recyclable materials are sorted. This program will also eliminate the need for residents to sort their trash and maintain separate barrels for recycled materials. By using the MRF program, the City will be guaranteed to meet the AB 939 recycling requirements and it will not require additional capital outlay. Provisions of Section 11 of the Agreement for Collection and Transportation of Solid Waste Refuse between the City and Great Western Reclamation provides that Great Western respond to any City of Tustin terms and conditions for a recycling program. As a result of lengthy negotiations, Great Western has agreed to the MRF recycling program requested by Tustin which will require modifications to the current franchise agreement (Agreement). The proposed modifications to the agreement reflect changes to existing rates charged by Great Western. Utilization of a MRF and the need for an accurate data base on solid waste diversion necessitated negotiating new charges for solid waste collection. The proposed new charges take into account the County gate fees, MRF fees and the cost of hauling. The gate fee is incorporated with the MRF fee and will be a direct charge to the City. Any increases in gate fees at County landfills will be a direct pass through and the City will pay 75% of any of these actual cost increases. The hauling charge paid to Great Western covers the cost of pick-up of the trash and transport to the MRF. The following is a summary of current and proposed modifications to residential rates: Hauling Disposal Total Charge Charge Charges Current Charges 4.43 4.56 8.99 Proposed Charges 5.20 6.43 11.63 _ City Council Report Recycling Program June 17, 1991 Page 3 The proposed hauling charge of $5.20 per month is based upon the Consumer Price Index (CPI) formula set forth in the current agreement and additional costs associated with implementation of the recycling program. For example, Great Western has revised it's routes to ensure that the City is only billed for trash collected in Tustin. The hauling charge will also not be subject to a CPI adjustment until July 1, 1992, but the disposal charge may be adjusted in the event the County of Orange increases landfill disposal fees after July 1, 1991. The rate would include reycling at the MRF operated by Sunset Environmental, Inc. as approved at $36.75 per ton or approximately $2.56 per dwelling unit for use of the MRF. This compares favorably with costs of recycling programs in other southland communities. The estimated residential hauling charge is based upon an estimated average of 81 pounds of disposable solid waste per single-family residence per month. This assumed poundage will be used for the entire July 1, 1991 to June 30, 1992 period. If, at the end of that period, disposal weight records disclose that the actual average weight per single-family residence is other than 81 pounds, the parties agree to adjust to the actual tonnage for purposes of calculating the disposal charge per residence for the period July 11 1992 through June 30, 1993. Similar annual adjustments would be made each June during the term of the Agreement so as to reflect actual pounds per residence per month. All future disposal charge adjustments would be based on actual tonnage records for the prior year. The actual assessment amounts for residential accounts and identified costs for recycling to be applied against commercial, and industrial accounts will be considered at a future meeting. A summary of specific provisions of the tentatively negotiated agreement with Great Western involve the following major terms: All trash will be taken by Great Western Reclamation to Sunset Environmental, a MRF in Irvine. The MRF will sort the trash for recyclables and haul the balance to the landfill. Great Western will guarantee achievement of all AB 939 diversion goals and pay all fines and penalties that may be assessed by the State if AB 939 requirements are not met. City Council Report Recycling Program June 17, 1991 Page 4 Great Western will reimburse City consultant costs of preparation of its Source Reduction and Recycling Element and staff time necessary to coordinate said preparation. Great Western will provide "at demand" curbside pick-up of all large items and white goods in the City at no additional cost to accounts. Such collection service will enable residents to simply call Great Western to discard large items such as furniture and white goods which are not picked up as part of regular trash collection. In coordination with the City, Great Western will provide a Public Awareness Program on City's Source Reduction & Recycling Program. Said program will include at least production and mailing of two brochures twice a year during the next five years. These brochures will focus on residential and commercial recycling programs. A copy of the draft agreement for City Council approval will be transmitted under separate cover. I -R6 ault Finance Director RN:CAS:kbc\recyclin.cas Christine A. Shingle o Assistant City Mana