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Home My WebLink About1993-06-22 - AGENDA REPORTS - WASTE RECYCLING AGMT (2)is) 049hit.`1:II17lf� 1`I ►1 .Y.`l DATE: June 22,1993 AGENDA REPORT City Manager A, Item to be presei Jeff Ko , Depu �5 6n SUBJECT: COMMERCIAL WASTE AND RECYCLING COLLECTION AGREEMENT -PROGRESS REPORT DEPARTMENT: Public Works BACKGROUND jbr� On January 26, 1993 the City Council approved staffs recommendations to establish a permit structure incorporating the Integrated Solid Waste Management Committee's (ISWMC) recommendation for the collection of regularly scheduled commercial sector waste and recyclables and directed staff to notify all regularly scheduled commercial route haulers of the City's intent to implement a modified exclusive permit agreement. Permit Negotiation Meetings Notice of City's intent was published through all local newspapers, the California Disposal Association, and the Greater Los Angeles Area Solid Waste Management Association. On March 9, 1993 staff held a meeting to initiate the modified exclusive permit agreement process. In attendance were representatives from Atlas Refuse, Blue Barrel Disposal, Santa Clarity Disposal, Rent -A -Bin and Crown Disposal. Haulers were requested to submit an application or letter of intent to be included in the modified exclusive agreement negotiations by the next meeting date on March 19, 1993. Staff also reviewed with the haulers the City's negotiation procedure and discussed the conditions of permit agreement outlined by the ISWMC (Attachment A). At that meeting it was also identified that all recyclers and roll -off haulers would not be part of the commercial modified exclusive permit agreement and would be subject to a separate permit agreement. A Roll -off hauler collects waste or recyclables in a large steel box that is sited at various locations in large volumes. When the roll -off box is full, it is loaded onto a flat truck and hauled away and an empty replacement box is left behind. At the March 19, 1993 meeting, staff received applications from Atlas Refuse, Santa Clarita Disposal, Blue Barrel Disposal and Rent -A -Bin. It should be noted that Rent -A -Bin is a roll- off hauler and therefore is not included in the commercial permit agreement process. Staff reinforced the ISWMC permit agreement conditions and reached a consensus with the haulers to conduct a rate analysis of all their commercial accounts. It was agreed by all parties involved that the City would select a consultant to perform a rate analysis. 6L9_o n -7/1-g Agenda Item: Commercial Waste and Recycling Collection Agreement June 22, 1993 Page 2 w RFP&O/Commercial Rate Stud Staff issued a Request For Proposal and Qualifications (RFP/RFQ) to conduct an analysis on the city's existing rate structure and to determine an annual rate adjustment index. Proposals were received from Hilton Farnkopf and Hobson and Arthur Anderson. At the April 13, 1993 council meeting, Council approved staff recommendation to contract with Hilton Farnkopf and Hobson for $39,850 to perform the rate analysis. A tentative rate analysis incorporates a rate band based on existing rates for services, cost of operations and profit margins. Environmental Impact Report An application for a Negative Declaration for the Environmental Impact Report has been filed with the State and County for the City's commercial refuse and recycling project (Attachment B). Contract for the Modified Exclusive Permit Staff has developed an agreement which incorporates the conditions outlined by the ISWMC. The haulers have tentatively agreed to a seven (7) year fixed tern. At the end of the term the agreement shall convert to a three (3) year evergreen agreement. The haulers have also agreed to submit to the city franchise fees not less than 10 percent of their gross receipts. The fees shall be paid to the City beginning July 1, 1993. Hilton Farnkopf and Hobson will complete the rate band review by June 25, 1993. City and waste haulers will meet with Valencia Industrial Association and Santa Clarita and Canyon Country Chambers of Commerce to inform them about the commercial refuse and recycling system. RECOMMENDATION Direct staff to continue negotiation, consider all comments, finalize agreement, and return to City Council on July 13, 1993 for final adoption. Attachments A. Conditions of the Permit Agreement. B. Negative Declaration. ATTACHMENT A CONDITIONS OF THE PERMIT AGREEMENT • 7 Year term of permit with a 3 year evergreen extension • Permit fees based on permittees 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 maintain performance/cash bonds • Permittee to maintain substantial insurance coverage • Permit will be transferable Enforcement of these permit conditions will enable the City to effectively achieve and monitor AB 939 goals. Mhomeljemersonl6-22.agn D. DETERMINATION On the basis of this Initial Study, It is determined that: The proposed project COULDNOThave a significant effect an the environment, and a NEGATIVE DECLARATION WILL BE PREPARED . .................................... ATTACHMENT B [xj Although the proposed project COULD have a significant effect an the environment, there WILL NOT be a significant effect In this case because the mitlgation measures described In this Initial Study have been added to the project. A NEGATIVE DECLARATION WILL BE PREPARED . ................ [ ] The proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT. REPORT Is required . ................. [ ] LYNN M. HARRIS DEPUTY CITY MANAGER -COMMUNITY DEVELOPMENT CITY OF SANTA CLARITA, CALIFORNIA Prepared By: Jeff Chaffin, Assistant Planner (Sign TOO (Name/Tftle) ' Dat Approv By: Ignat e) Donald M. Williams. Senior Planner (Name/Title) (Date) -13-