HomeMy WebLinkAbout2021-06-08 - AGENDA REPORTS - TEMP BIN/ROLL-OFF FRANCHISE AGMT (2)of sXNTA C<
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CONSENT CALENDAR
CITY OF SANTA CLARITA
AGENDA REPORT
CITY MANAGER APPROVAL:
DATE: June 8, 2021
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Agenda Item: 9
SUBJECT: TEMPORARY BIN AND ROLL -OFF BOX NON-EXCLUSIVE
FRANCHISE AGREEMENT - ADDITIONAL PROPOSALS
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council:
1. Award the Temporary Bin and Roll -Off Box Non -Exclusive Franchise Agreement to AV
Equipment Rentals, Inc.
2. Authorize the City Manager or designee to execute all documents, 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. At the April 27, 2021, City Council meeting, nine haulers were
awarded non-exclusive contracts to begin on July 1, 2021.
After the April 27, 2021, City Council meeting, multiple haulers contacted the City expressing
interest in the franchise. Since the Temporary Bin and Roll Off Franchise is non-exclusive, staff
re -opened an RFP on May 5, 2021, allowing additional haulers to submit a competitive proposal.
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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. All haulers who submitted proposals are listed below:
Proposed Haulers
Location Score
AV Equipment Rentals, Inc.
Existing Hauler Santa Clarita, CA 88.00
365 Disposal and Recycling, Inc.
New Hauler Sun Valley, CA 64.83
Hollywood Depot Rentals
New Hauler Burbank, CA 29.17
Staff determined that AV Equipment Rentals, Inc., is the only qualified applicant from this
proposal process and recommends that they enter into the new agreement. If approved, the
agreement will be executed alongside the previously approved nine haulers 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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