HomeMy WebLinkAbout2021-04-27 - AGENDA REPORTS - TEM BIN/ROLL-OFF BOX FRANCHISE AGMT (2)Agenda Item: 15
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: '11 JJ�1
DATE: April 27, 2021
SUBJECT: TEMPORARY BIN AND ROLL -OFF BOX NON-EXCLUSIVE
FRANCHISE AGREEMENT PROPOSALS
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
1. Award the Temporary Bin and Roll -Off Box Non -Exclusive Franchise Agreement
(Agreement) to nine haulers: American Reclamation, Inc; America's Bin Company, Inc.;
Arkelian Enterprises, Inc., dba Athens Services; Burrtec Waste Industries, Inc.; Reel Waste
& Recycling, LLC; Randfam, Inc., dba Rent -A -Bin; Republic Services, Inc.; Triscenic
Production Services, Inc.; and USA Waste of California, Inc. (Waste Management).
2. Authorize the City Manager or designee to execute all documents pertaining to the
Agreement, subject to City Attorney approval.
BACKGROUND
In order to reach the 50 percent diversion requirement of the California Integrated Waste
Management Act of 1989 (AB 939), the City Council awarded non-exclusive franchise
agreements to ten solid waste haulers at the November 8, 2005, City Council Meeting for
Temporary Bin and Roll -Off Box (TBRO) services within the City of Santa Clarita (City). These
haulers are crucial in helping the City achieve its diversion goals by ensuring that construction
and demolition materials are recycled.
Six haulers currently have agreements that will expire on June 30, 2021. The City conducted a
Request for Proposals (RFP) to solicit proposals from qualified vendors to ensure that the TBRO
program continues successfully. The RFP was advertised on the City's website on March 1,
2021. Staff received nine proposals from highly qualified applicants with interest in becoming a
solid waste franchised hauler, with four being first-time applicants. The proposals were reviewed
and evaluated based on each company's ability to meet the specific needs of the City.
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Criteria required by the RFP consisted of the following:
• Achieve at least 50 percent diversion
• Agree to submit monthly activity updates showing the amount of diverted and landfilled
materials
• Agree to have all containers labeled with company name, phone number, an identifier,
and containers must be clear of graffiti
• Assist the City with as -needed emergency services and illegal bin impound
• Maintain a minimum insurance requirement of $2 million aggregate and $1 million per
occurrence
• Agree to pay a franchise fee of 10 percent of gross revenue
A panel of City staff members reviewed the submitted proposals based on selection criteria
above and interviews with the haulers. All haulers who submitted proposals are listed below:
Proposed Haulers
Location
Score
American Reclamation, Inc.
New Hauler
Los Angeles, CA
92.00
America's Bin Company, Inc.
New Hauler
Sun Valley, CA
78.00
Athens Services
Existing Hauler
City of Industry, CA
94.33
Burrtec Waste Industries, Inc.
Existing Hauler
Fontana, CA
91.33
Reel Waste & Recycling, LLC
New Hauler
Santa Clarita, CA
78.33
Rent -A -Bin
Existing Hauler
Santa Clarita, CA
79.33
Republic Services, Inc.
Existing Hauler
Sun Valley, CA
87.33
Triscenic Production Services, Inc.
New Hauler
Santa Clarita, CA
76.83
Waste Management
I Existing Hauler
Santa Clarita, CA
90.83
Staff determined that all nine haulers who submitted proposals are qualified and recommend that
each enter into the new agreements. If approved, the agreements with each hauler will be
executed effective July 1, 2021, and will expire June 30, 2026, with three annual, one-year
options to renew.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Each hauler will pay the City a 10 percent franchise fee based off of their monthly gross
revenues. The fee will offset the cost of the franchise to the City, which includes administrative
staff time, cost of maintaining the vehicle that will be utilized for inspecting sites, auditing the
franchises, record keeping with respect to AB 939 compliance and repair to local roads caused
by the excessive wear and tear created by the large collection vehicles. The recommended
franchise fee is comparable to franchise fees required by other local cities for the same services.
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