HomeMy WebLinkAbout1995-06-27 - AGENDA REPORTS - YARD TRIMMINGS RECYCLING PGM (2)AGENDA REPORT
UNFINISHED BUSINESS
DATE: JUNE 27, 1995
City Manager
Item to be ore
SUBJECT: YARD TRIMMINGS RECYCLING PROGRAM
DEPARTMENT: PUBLIC WORKS
BACKGROUND
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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. In an effort to meet or
exceed these mandates, staff is pursuing a Citywide Yard Trimmings Recycling Program. Staff'
requested direction from Council on many occassions throughout the implementation of the
Forever Green Yard Trimmings Recycling Pilot Program and continues to seek direction from
Council on all steps necessary to secure the development and implementation of an effective
Citywide program,
On May 22; 1995, staff met with the residential franchise haulers to discuss their specific yard
trimmings recycling implementation requirements. It was agreed that a 64 -gallon, semi -
automated bin, with a 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 recycling program was approved by Council, they would order bins and
equipment for implementation of the program in November 1995.
On June 13, 1995, City Council directed staff to initiate contract negotiations with the residential
franchise haulers to implement a Citywide, semi -automated yard trimmings recycling program
with anticipated residential rate increases between $2.62 and $4.96 per month, depending on final
confirmation of a permitted processing facility (Attachment A). Staff was directed to return to
Council in August 1995 for a public hearing to finalize the contract and residential rate increase.
In order for the residential franchise haulers to begin implementation of the Citywide Yard
Trimmings Recycling Program, they will be expending $4,220,000 over the next five years on the
purchase/lease of equipment and recycling bins. They have expressed a desire to get confirmation
from City Council that the City is committed to the Yard Trimmings Recycling Program and that
the program will go forward in November 1995 with an anticipated residential rate increase of
$2.62 to $4.96.
Continued lo: -7
A�r"I. ltem:
In addition, the residential franchise haulers have expressed the need for additions and changes to
the existing Franchise Agreement in order to effectively implement a yard trimmings recycling
program. They include the following:
Mandatory Service Enforcement
There are approximately three thousand residents that have not applied for a self -haul
permit and do not want to receive or pay for trash collection services. At this time, the
City and the haulers do not know where they are disposing of their trash.
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Yard Trimmings Recycling Service Exemption
Some residents have indicated that they are currently home composting and would like to
continue to do so. Eligible residents, not to exceed 2% of the residential service
population, would apply for a yard trimmings recycling service exemption and would pay
a nominal administrative fee toward the Citywide program.
Yard Trimmings Ban
In order to offer a Yard Trimming RecyclingExemption, a ban on yard trimmings in the
trash receptacles would be necessary. Those bins that have yard trimmings would be
tagged and the resident would be required to call the hauler to arrange a special pick up.
If the violation continues to occur, fines would be assessed to the resident.
The three residential franchise haulers have also been notified that an audit will be conducted in
order to confirm that they have been:
Paying the correct amount of franchise fees due to the City per the Franchise Agreement.
Basing their capital expenditures and operational cost allocations on services provided to
only the City of Santa Clarita,
Reporting accurate cost projections to Hilton Farnkopf & Hobson for the 1992
Residential Rate Review and the 1994 Yard Trimmings Collection Rate Calculations.
RECOMMENDED ACTION
Staff requests discussion from Council on the haulers' proposals for:
1. Mandatory Service Enforcement with a Self -Haul Option
2. Yard Trimmings Recycling Service Exemptions
3. Yard Trimmings Ban
Direct staff to proceed with requests for proposals for an audit of the franchise haulers.
Direct haulers to proceed with implementation of the Citywide Yard Trimmings Recycling
Program and make the necessary expenditures of $4,220,000 over the next five years for
purchase/lease of recycling bins and equipment.
ATTACHMENTS
Attachment A: Hilton Famkopf & Hobson. City of Santa Clarita Yard Trimmings
Collection Rate Calculations. Exhibit 6.
FGHOMEWLWA.WE\rOUNCILIP PROG?.AGN
ATTACHMENT A
City of Santa Clarita
January 30, 1995
Yard Trimmings
Rate Calculations
6. Based on the proposed $44 yard trimmings disposal fee at the Chiquita Canyon
Landfill, the monthly cost of yard trimmings collection would be $3.28 to $4.96.
As shown in Exhibit 6, the monthly rate would be $3.28 to $4.96 per home based on
Laidlaw's proposed fee of $44 per ton for a citywide yard trimmings collection program.
This Exhibit also shows that a $1 per ton change in the cost of yard trimmings disposal
(i.e., from $25 to $26 per ton) will change the monthly rate per home by approximately
$0.02 to $0.06.
EXHIBIT 6
Sensitivity Analysis of Yard Trimmings' Tipping Fee
on Estimated Citywide Rate
(Based on a Solid Waste Disposal Fee of $31.49 Per Ton)
TippingScenario 2 Scenario 3
, Semi -Automated :i Semi -Automated
$0
$2.18
$2.85
$2.21
$15
$2.56
$3.43
$3.15
$2.81.
$3.82
$3.77
$26
$2.83
$3.86
$3.83
$35
$3.06
$4.21
$4.40
$44
$3.28
$4.56
$4.96
7. Based on a yardwaste tipping fee of $25 per ton, the monthly rate to provide semi -
automated yard trimmings collection service appears similar for different
diversion quantities.
Based on a yardwaste disposal fee of $25 per ton, the monthly rate to provide semi
automated collection service is $3.77 to $3.82, a difference of $0.05, depending on
whether 15 pounds or 24 pounds of yard trimmings are diverted. The reason the
monthly rates are similar is because the landfill disposal fee of $31.49 per ton is close to
the yard trimmings disposal fee of $25 per ton. Therefore, increases in waste diversion
only result in small savings in the cost of disposal.
As previously shown in Exhibit 6, when the yard trimmings tipping fee approaches
zero, the benefit from avoided disposal cost increases, and the rate for semi -automated
service is reduced as diversion increases. Conversely, when the yard trimmings
disposal fee exceeds the landfill disposal fee, then the rate for yard trimmings collection
increases as diversion increases because the benefit of avoided solid waste disposal
costs are more than offset by higher yard trimmings tipping fees.
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Hilton Famkopf & Hobsonle�
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