HomeMy WebLinkAbout1993-04-13 - AGENDA REPORTS - COMMERCIAL WASTE RECYCLING (2)`_" j ' • AGENDA REPORT •
City Manager Appro al
Item to be presented
Jeff Kolin, Deputy City Manager
UNFINISHED BUSINESS bin a�E F ICbGv�
DATE April 13, 1993
SUBJECT: COMMERCIAL WASTE AND RECYCLING COLLECTION
RATE STUDY
DEPARTMENT: Public Works'
At the regular City Council Meeting of January 26,1993 Council approved staff's
recommendation to establish a permit structure incorporating the City's Integrated Solid
Waste Management Committee (ISWMC) permit conditions for the collection of regularly
scheduled commercial sector waste and recyclables. The conditions include an annual rate
review study, an annual rate adjustment index, and incentives for recycling (see attachment
A). Accordingly, staff solicited Requests For Proposal and Qualifications (RFP/RFQ) to
perform a commercial rate analysis on the City's existing rate structure and to determine an
annual rate adjustment index.
The City received proposals from Arthur Anderson and Hilton Farnkopf & Hobson
(see attachments B and Q. Staff's reviewed both proposals and recommends that Hilton
Farnkopf & Hobson (HF&H) be selected to perform the rate review analysis since their
approach to the analysis will afford the City with the appropriate mechanisms to evaluate.and
adjust rates for the short and long term. The proposal submitted by Hilton Farnkopf &
Hobson presents two approaches:
1) Set a minimum/maximum rate band on existing commercial rates and to
determine the commercial sector profitability on the City's 1992 Residential
Rate Study. The 1992 study included a precursory overview of the
profitability in the commercial sector operations at that time. Cost to perform
this study is $29,220.
2) Set a minimum/maximum rate band.by restructuring the existing commercial
rates and evaluating the profitability of the commercial sector based on current
1993 operations. Cost to perform this study is $39,850.
Staff has reviewed the two approaches and proposes that the study entail the restructuring of
existing commercial rates and an evaluation of current operations to determine profitability.
This approach will incorporate the ISWMC conditions of permit to encourage commercial
recycling and at the same time maintain competition in rates. It will also represent the most
current information to set a rate adjustment index process for the short and Ions term.
RECOMMENDATIONS n no nnnUEn Agmaa liem:
Authorize the city manager to execute a contract with HF&H for the amount of $39,850.
Conditions of the PMO
' •
Conditions of the permit would include:
• 5 Year term of permit with annual performance review
• Permit fees based on pemlittees gross revenues or line item fee for AB 939 assessed
to all accounts
• Annual percentage base and cap for rate adjustments, based on a City rate review
analysis
• Annual City rate analysis
• Unannounced periodic waste audits on permittees by City staff
• Permittee will be required to employ a qualified recycling coordinator with basic
knowledge of recycling markets and design
• Permit to contain specific default provisions
• Permittee to establish a volume based rate structure for recyclables and trash approved
by the City
• Permittee to conduct waste audit and design site specific recycling plans for each
client
• Develop and implement commercial sector education programs
• Annual AB 939 diversion and disposal reports
• Permittee to develop a Co-op for common recyclable commodities ie: paper and
cardboard
• Permittee to maintain performance/cash bonds
• Permittee to maintain maximum insurance coverage
• Permit will be transferable
Enforcement of these permit conditions .will enable the City to effectively achieve and
monitor AB 939 goals.
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Attachment A