HomeMy WebLinkAbout1995-06-13 - AGENDA REPORTS - YARD TRIMMINGS RECYCLING PGM (2)AGENDA REPORTC2anager
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Item to be presented by:
Dannis_Lupl/
UNFINISHED BUSINESS
DATE: JUNE 13, 1995
SUBJECT: YARD TRIMMINGS RECYCLING PROGRAM
DEPARTMENT: PUBLIC WORKS
BACKG,ROI TNT).
Pursuant to the California Integrated Waste Management Act of 1989 (AB 939) the City of Santa Clarita is
required by law to divert 25% of its municipal solid waste (MSW) from landfills by the year 1995 and 50%
by the year 2000. The law also authorizes the City to make adequate provisions for the handling of MSW in
order to achieve the state mandate. According to the City's Source Reduction and Recycling Element, in
1990 the City disposed of approximately 96,500 tons of MSW into landfills. Of that, 17 percent (17%) or
16,000 tons was attributed to yard "wastes." This type of waste or yard trimmings can be mulched or
composted and ultimately diverted from landfills
On September 28, 1993, City Council passed Resolution 93-127 establishing the "Forever Green" Pilot
Curbside Yard Trimmings Recycling Program. The pilot program was established in order to determine the
costs associated with the implementation of a Citywide yard trimmings collection and recycling program. At
the inception of the pilot program, the City's residential haulers were requested to document all associated
collection costs for the pilot program. This was done to determine the total costs to haulers and residents for
a Citywide yard trimming recycling program. The pilot program was initiated in October of 1993 and is
currently in effect until such time as a Citywide program is implemented.
In November of 1994, the City hired Hilton, Farnkopf & Hobson to conduct a study to calculate the
monthly rate for a Citywide yard trimmings program. The study evaluated manual and semi -automated
collection methods based on the franchised haulers' projected costs to provide a yard trimmings collection
and recycling service. Based on the three haulers' average projected costs of service, the monthly rate to
provide a weekly yard trimming collection would be $2.81 for a manual customer -provided container
program, and $3.77 to $3.82 for a semi -automated program where the hauler provides the container
(Attachment A). This represents a monthly increase to the existing residential refuse and recycling collection
rate ranging between 14% and 19%. These rates are based on a processing fee of $25 per ton being charged
by yard trimming acceptance facilities. Higher rates for semi -automated programs are due to the additional
costs of providing containers. The Hilton, Farnkopt & Hobson study based its rate calculations partly on
information that was provided to them by the haulers. The haulers submitted their projected costs to
implement a yard trimmings recycling program and the study then used an average of these projected costs
to arrive at the final program costs. The three residential franchise haulers have been notified that an audit
will be performed in order to verify the accuracy of these figures, confirm that the City is receiving all
contracted franchise fees, and confirm that residential rate calculations are based on assets necessary to
service only the City of Santa Clarita.
The study also included a survey of nine other cities that have implemented yard trimmings collection
programs (Attachment B). The results of the survey indicated that automated and semi -automated collection
systems achieved 58% greater diversion than the manual systems. Households serviced by manual collection
systems diverted an average of 15 pounds of yard trimmings per week while households serviced by
automated systems diverted an average of 26 pounds of trimmings. The Hilton Farnkopf & Hobson study
Ag;f-_:w Item:
recommends the implementation of a semi -automated yard trimmings collection system in order to maximize
diversion.
The findings of the study were presented to local businesses, landscapers and homeowner associations. To
date, City staff has made presentations to the Saugus Union School District, Public Information Resource
Group, local landscapers, various homeowner associations, the Santa Clarita Chambers, Environmental
Committee and the Senior Center. A synopsis of the questions and answers generated at these public
meetings is included in Attachment C.
On May 22, 1995, staff met with the haulers to discuss their specific yard trimmings implementation
requirements. It was agreed that a 64 -gallon, semi -automated bin, with weekly pick up, would adequately
handle an average single-family residential lot in the City. The haulers indicated that once the corresponding
rate increase for a Citywide yard trimmings program was approved by Council, they would order bins and
equipment for implementation of the program in November 1995.
The implementation and subsequent residential rate increase of the yard trimmings program is dependent
upon securing an acceptance facility. It has been a challenge for the haulers to identify a State permitted
yard trimmings processing facility. Those facilities that have been identified are able to offer a short-term
option, but finding a long-term facility has been much more difficult. Many of the existing permitted
composting facilities are located in outlying areas. Transportation costs associated with delivery to those
facilities could potentially increase operational costs to the haulers, which in turn may affect monthly rates to
the residents. In addition, several prospective facilities, such as Scotts and The Worm Concern, have
recently closed or are no longer accepting materials. Those permitted processing facilities still under
consideration are Trueman -Martin in Kern County, CalWood in Ventura County, and Applied
Environmental Management, Inc. (AEM).
RFCOMMFNDFD ACTION
Direct staff to continue discussion and negotiation with residential franchise haulers.
Direct staff to continue their work in identifying potential sites for the processing of yard trimmings.
Direct staff to initiate contract negotiations with the residential franchise haulers to implement a
Citywide, semi -automated yard trimmings program with anticipated residential rate increases
between $2.62 and $4.96 per month, depending on final confirmation of a permitted processing
facility, and return to Council in August 1995 for final contract and rate increase approval.
ATTACHMENTS
Attachment A: Hilton Farnkopf & Hobson
Rate Calculations. Exhibit 3, Exhibit 4 and Recommendations.
Attachment B: Hilton Farnkopf & Hobson. City of Santa Clarita Yard Trimmings Collection
Rate Calcidations.. Exhibit 1.
Attachment C: Synopsis of public meeting questions and comments.
F:\HONME SOLWASTE\COUNCIL\YTPROG1.AGN
City of Santa Clarita
January 30, 1995
RATES
ATTACHMENT A: Page 1 of 2
Yard Trimmings �
Rate Calculations
4. Based on the pilot yard trimmings program disposal fee of $25 per ton, the monthly
cost of yard trimmings collection would be $2.81 to $3.82 per home.
Based on the Companies' projected costs, we calculated that the monthly rate per home
would be between $2.81 and $3.82 per home, based on the current tipping fee of $25 per
ton. The rate calculation is shown in Exhibit 3, and a breakdown of the rate components
is shown in Exhibit 4.
EXHIBIT 3
Rate Calculation
(Based on Yard Trimming's Disposal Fee of $25 Per Ton)
Cost Category
A. Net Annual Cost of Yard Trimmings „
$770,000
$1,048,000
$1,034,000
Collection
B. Profit ® 7.5% Margin 1(A + 92.5%) -A],
$62,000
$85,000
$84,000
C. Hauler's Revenue Net of Franchise Fees (A + B)
$832,000
$1,133,000
$1,118,000
D. Franchise Fees ®10% UC + 90%) - C1
$92,000
$126,000
$124,000
E. Total Annual Yard Trimmings Rate
$924,000
$1,259,000
$1,242,000
Revenue Requirement (C + D)
F. Monthly Rate Revenue Requirement (E + 12)
$77,000
$104,917
$103,500
G. Number of Homes
27,445
27,445
27,445
H. Monthly Rate Per Home (F+ G)
$2.81
$3.82
$3.77
EXHIBIT 4
Breakdown of Monthly Yard Trimmings Collection Rate
(Based on Yard Trimming's Disposal Fee of $25 Per Ton)
Rate Category Manual Semi -Auto Semi -Auto
15 lbs. 24 lbs.
Net Program Cost $2.34 $3.18 $3.13
Profit $0.19 $0.26 $0.26
Franchise Fee $0.28 $0.38 $0.38
TOTAL $2.81 $3.82 $3.77
-11-
Hilton Famkopf & Hobson' 01
ATTACHMENT A: Page p of 2
City of Santa Clarita Yard Trimmings
January 30, 1995 Rate Calculations
SECTION 4
RECOMMENDATIONS
1. Attempt to secure a long-term agreement with a yard trimmings acceptance
facility at a reasonable cost as soon as possible.
The City nor any of the companies has entered into an agreement for long-term
yardwaste disposal capacity. Laidlaw Waste Systems, Inc. has notified the City that the
tipping fee will be $44 per ton when the citywide yard trimmings program is
implemented. Even at this tipping fee, there is no assurance that yard trimmings will be
accepted over the long-term, or that the tipping fee will remain the same. Further, if the
City achieves more than 10 pounds of diversion per home per week, then it would
exceed the 20,000 yards per year which Laidlaw agreed to accept. Unless a long-term
agreement with an acceptance facility is secured, there is a risk that the yard trimmings
may not be accepted at a convenient location at a reasonable cost, which may result in
either:
• Yard trimmings being disposed in a landfill rather than being diverted, or;
Increases in the Companies' operating costs which would be passed through to the
rate payers.
It may be cost effective to contract separately for transfer and composting services. For
example, the Companies may find a firm with a nearby location from which to transfer
yard trimmings to another firm's more distant composting facility.
To ensure that the yard trimmings program is cost effective, the City may consider
delaying implementation until the Companies execute a specific agreement with an
acceptance facility to receive the yard trimmings at a reasonable tipping fee. However,
California Assembly Bill 939 (AB 939) requires the City to divert 25% of its waste stream
during 1995. Assuming that the City needs the diversion from the yard trimmings
program to meet the 25% diversion goal, the City is in the difficult position of
determining whether to proceed with the yard trimmings program to meet the goal
without having secured capacity at an acceptance facility a reasonable cost.
Since recent State policies have focused on a good faith effort to meet the diversion
goals, the City may want to contact the California Integrated Waste Management Board
to clarify its intent before proceeding immediately with implementation of the yard
trimmings program given the uncertainties of taking the yard trimmings to an
acceptance facility at a reasonable cost. Meanwhile, the City and the Companies should
attempt to work together to secure long-term_ capacity at a reasonable cost as soon as is
practical.
-15-
Hilton Farnkopf & Hobson'
z
City of Santa Clarita Yard Trimmings
January 30, 1995 Rate Calculations
2. Consider implementing a semi -automated yard trimmings collection program
rather than manual collection in order to increase diversion.
If the City decides to implement a yard trimmings collection program, we recommend
that the City implement a semi -automated yard trimmings collection system in order to
maximize diversion. By providing containers to all residents, the City would encourage
more participation and probably achieve a higher level of diversion than the manual
collection program.
Although the semi -automated program is $0.96 to $0.99 more per month than the
manual program, the residents would receive an industrial quality container for no
additional charge as part of the semi -automated program, whereas residents would
need to purchase their own containers for the manual program.
We calculated that the monthly rate for the semi -automated program would be $3.77 to
$3.82 based on a $25 tipping fee for yard trimmings disposal, depending on the amount
of diversion. Since the amount of diversion that will actually be achieved is uncertain
and since the monthly rates are similar for both semi -automated scenarios, a reasonable
approach would be to use the mid -point of the rate range during the first year, or $3.80.
Based on a higher tipping fee of $44 per ton for yard trimmings disposal, the monthly
rate for semi -automated collection would be $4.56 to $4.96, with a mid -point of $4.76.
3. The rates should be reviewed one year after implementation.
As described in Section 2, the haulers estimated their costs based on many assumptions
about future events. Since the actual amount of diversion and productivity may be
different than estimated, and since the yard trimmings acceptance facility and tipping
fee is uncertain, the City should review the Companies: actual costs for yard trimmings
collection and compare them to their projections one year after the program is
implemented, and adjust rates accordingly.
Hilton Famkopf & Hobson' �
-16-
City of Santa Clarita
January 30, 1995
YARDWASTE PROGRAMS IN OTHER CITIES
Exhibit 1
" .Excludes fr
Yardwaste
Number
Total Waste.
Yard Trimmings
Estimated Cost
Yardwaste
Collection
Vehicle'
Generation Per
Diverted Per
Percent
of Yard
CITY
Hauler
Method
Type
Acceptance
of
Home Per Week
Home Per Week
Divert
Nates
Facility
Homes
(Pounds)
(Pounds) ,
Collection"
MANUALPROGRAMS
Downey
CALSAN
Manual
Front Loader
Puente Hills
19,000
87
13
15%
$1.90
(a)
Glendale
City of Glendale
Manual
Rear Loader
Scholl Canyon
31,800
68
18
26%
$3.11
Rosemead
Consolidated
Manual
Front Loader
Puente Hills
9,400
84
14
17%
Not available
Average
15
19%
$2.51
SEMI -AUTOMATED & AUTOMATED PROGRAMS
Pasadena
City of Pasadena
Semi Auto.
Side Loader
Scholl Canyon
26,000
79
28
35%
$5.00.
Ventura
E.J. Harrison
Semi Auto.
Front Loader
Cal Wood Recyc
21,500
74
15
20%
$2.08
(b)
Burbank
Crown Disposal
Fully Auto.
Side Loader
Crown/Sun Vly
21,000
66
24
36%
$6.80
West Covina
Athen's Disp.
Fully Auto.
Side Loader
Spadra
21,500
106
32
30%
Not available
(c)
Chino Hills
Western Waste
Fully Auto.
Side Loader
Chino Prison
12,700
100
30
30%
$1.20
Average
26
30%
$3.77
OTHER PROGRAMS
Beverly Hills
City of Beverly Hills
Combined
Skip Loader
BFI -Central L.A.
7,200
102
37
36%
$4.38
(d)
AVERAGE -ALL
PROGRAMS
23
27%
$3.50
NOTES:
(a) Projected citywide data based on pilot program results and other assumptions.
(b) Projected 1994-95; greenwaste is collected every other week.
(c) Diversion of 32 lbs/week includes single and multi -family residences; waste generation of 106 lbs/week includes only single family customers.
(d) Beverly Hills uses both manual and automated collection in different areas of the City.
" .Excludes fr
ed
-- Trimmings
Nates
Facility
Homes
(Pounds)
(Pounds) ,
Collection"
anchise fees.
kopf & Hobson'
c
V
Hilton Farn
ATTACHMENT C
SYNOPSIS OF PARTICIPANT QUESTIONS
from the
PUBLIC INFORMATION MEETINGS ON 3/8/95 AND 3/29/95
on a
CITY YARD TRIMMINGS RECYCLING PROGRAM
Will the City promote and implement a backyard composting program?
Yes. The City will promote backyard composting. Currently 10% of the residents
compost organic wastes.
2. How will the City handle yard trimmings from larger lots such as in Placenta Canyon and
Sand Canyon?
One possibility is to offer a "drop-off" option for the excess yard trimmings that these
lots produce. Another possibility is that these residents will have to increase their
service level by ordering additional bins or one larger bin. Rates would then be based
on this increased service level
3. Will the City consider drop-off centers?
Yes. The City is considering drop-off centers for yard trimmings. Our challenge has
been in finding available open space areas and staffing resources to maintain them.
4, Will the City provide for yard trimmings service exemptions?
Yes. The City is considering an exemption to the yard trimming service rate for home
composters.
Is the City considering approving a composting site?
Yes. However, the City will not choose or operate the site It will be privately operated
The haulers will work together to find a cost effective, State permitted processing site
for the yard trimmings.
6. How will the City promote yard trimmings recycling in multi -family and commercial
landscape areas?
We know commercial businesses generate substantial amounts of materiaL We can
work with the landscape companies to set up a system far mulching and grass cycling
at each site
Z Will the City educate landscape companies and residents about residential mulching
practices which can reduce the amount of yard trimmings? Will the City promote the use
of mulching lawn mowers?
Yes. The public education campaign would strive to educate residents on the need for
yard trimmings source reduction. Although the City would encourage source
reduction through the use of mulching mowers, landscapers feel that their customers
want everything picked up. They are concerned that if they use mulching mowers,
their customers will go to their competitors who don't use them. One alternative is to
achieve source reduction through the use of native landscape plantings.
What markets are available for the composted material?
There are several alternatives: (1) Finding an existing company, like Scotts, who
already has a bagging and composting system in place to distribute to retail outlets. (2)
Finding someone local who could sell through different outlets throughout the City.
(3) Finding public agencies and private companies that have a need for the product
Businesses are coming up with more innovative uses Corporate farming areas and
desert communities use it for mulching into the soils. One company has markets as
far away as the Far East They use them as soil amendments.
9.Has the State approved Alternative Daily Cover at landfills?
Material used as Alternative Daily Cover (ADC), as limited and monitored by landfill -
based performance standards, is determined to be diversion and can be counted
towards the disposal reduction goals upon initiation of an approved Demonstration
Project but only if the Demonstration Project is approved upon completion. If the
Demonstration Project is not approved, the jurisdiction may not claim disposal
reduction for the material used in the Demonstration Project
10. Will the City provide adequate education and advertisement prior to implementation of the
program?
Yes Whenever a new program is introduced, the City launches a public information
campaign to educate the community and make them aware of the program and any
public participation requirements.
11. Why isn't the City implementing a manual system since it costs less than a semi -automated
system?
In other programs, the recovery rate for semi -automated is about 50%, while manual
recovery rates are about 19%.
12. How can the schools get involved with grass cycling?
Many schools leave clippings on the turf to mulch into the soil. Schools can contact
the City or their landscaper if they wish to pursue a grass cycling program.
13. Will the City educate children at schools on the program?
Yes. If a school requests a presentation, the City will be happy to set a date to come
out and meet with the children.
14. How often will the yard trimmings be picked up?
It will be picked up once a week on the same day as your regular trash, but in a
separate truck.
15. When will the City implement a unit price system -- the more trash you put out the more
you pay, the less you put out the less you pay?
The variable can rate if for refuse collection. The variable can rate means that the less
you put out in your trash, the less you will have to pay because there is less to landfill
This program has not been started but the City is looking into offering that type of
system.
16. What size container will be provided for yard trimmings?
A semi -automated system with 64 gallon, industrial quality bins.
17, Will the City offer residents free mulch?
We are trying to get a transfer facility in town that everyone can use. Our goal is to
either give the processed material back to residents or charge a small amount. That
does provide a closed loop system. Grow, collect, recycle and reuse it
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