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HomeMy WebLinkAbout2001-03-05 - AGENDA REPORTS - SOLID WASTE FRANCHISE (2)CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manal Item to be DATE: March 5, 2001 SUBJECT: SOLID WASTE FRANCHISE DEPARTMENT: Planning & Building Services RECOMMENDED ACTION Receive staff report, direct staff to prepare detailed franchise amendments to reflect the negotiated deal with existing haulers as amended (based on verbal proposal by Waste Management on February 28, 2001) to exclude roll -off service, reduce the term to 10 years (7 year fixed followed by 3 year evergreen, with biannual reviews), and direct st to prepare a competitive non-exclusive roll -off franchise. aff BACKGROUND This item was before the City Council at its February 13, 2001 meeting. At this meeting, the Council heard public testimony and moved to direct staff to meet with Allied/BFI to seek clarification of the proposal submitted to the City on February 13. Staff was directed to obtain more detailed information on the specifics of the proposal from BFI/Allied dated February 13, 2001 without negotiating the proposal. The purpose of this agenda report is to provide the following to the Council: 1. Transmittal of the Alhed/BFI proposal, as expanded in a meeting held with City staff on Friday, February 16, 2001 (this and all material provided to the City from AlliedBFI is attached to this report) 2. Evaluation of the AlliedBFI proposal; 3. List of pros and cons for each of the two action alternatives described in the recommendation section above; 4. List of service enhancements agreed to through the negotiations with the existing franchisees (including recently proposed changes); 5. Response to objections raised by roll -off service companies; and 6. A chronology of discussions, meetings, and correspondence regarding the trash franchise issue. Agenda Item: Solid Waste Franchise Page 2 STAFF ANALYSIS &agluation of the AlliecUB rel Proposal: The following is staffs evaluation of the significant terms outlined in the AlhedBFI proposal. This evaluation is based on information presented to staff at the February 16, 2001 meeting and additional material submitted to staff subsequent to this meeting. • Residential Rate - Allied/BFI has proposed a residential rate that will not exceed $18.60 per month upon start of service at the end of the 5 -year notice period. After the 5 -year period, AIhed/BFI will use standard CPI adjustments in order to determine rate increases. AlliedBFI has not committed nor proposed a mechanism to limit rate increases during the 20 -year term of the contract. The currently negotiated deal with the existing franchisees anticipates a maximum annual increase of 2% (after four additional years of a rate freeze). Commercial ate - Al iedBFI proposes to set the commercial rate at the top of the existing commercial rate band for each level of service, thus eliminating the rate band. It is anticipated that commercial rates would increase by a maximum of 1% each year for five years until the current contract terminates. AlliedBFI has not offered a rate -based program to encourage commercial recycling. They do, however, have a 2 -cent recycling fee with an extensive public outreach capability. They have proposed to assign one full-time public outreach staff person for the City of Santa Clarita service. The current negotiations with existing franchisees anticipates that all commercial customers pay rates within the rate band, with a reduced rate to encourage recycling. aue�oling - AlliedBFI proposes to provide diaper recycling pick-up services for both residential and commercial (hospitals, day care centers, etc.) customers. The facility would be located at the Sunshine Canyon Landfill. However, AlliedBFI has not committed to fund the additional capitol start up costs nor the ongoing operational costs of the diaper recycling machine. The currently negotiated deal with the existing franchisees assumes a similar arrangement. All haulers have stated that they are willing to conduct a pilot only. In either case, the City must reach a specific arrangement and define the three -party partnership between the City, haulers and Knowaste before any funds are expended for the diaper recycling Program. Green Waste Recvcline - Allied/BFI is currently pursuing permits for a green waste facility at Sunshine Canyon Landfill. Future plans include an on-site compost area for green waste and food waste, which will allow them to expand their service to an organic recycling program rather than just green waste. MRF/Processing Center - AlliedBFI is considering constructing a MRF/processing center at the Sunshine Canyon Landfill. It is anticipated that this site would be operating within four years. The diaper processor would also be housed at the MRF location at Sunshine Canyon Landfill. It was not clear as to whether the diaper processor could be housed at the landfill prior to the construction of a MRF (thus delaying the implementation of a program until the MRF was constructed). Solid Waste Franchise Page 3 • Roll -off - Allied/BFI proposed to include only permanent roll -off service in the agreement. All temporary roll -off service would continue to be an open competitive market. Staff believes the City should include all roll -offs in the franchise in order to manage the waste stream properly. However, this can be done in an exclusive or non-exclusive arrangement. It is more important to the City that all of the waste generated be captured in our reports, rather than the party who specifically provides the service (see separate analysis of the roll -off service issue later in this report) • Landfill Capacity - Alhed/BFI reports that they have 25 years worth of landfill capacity at the Sunshine Canyon Landfill which is based on permits by Los Angeles County and Los Angeles City. A state permit to proceed with the expansion approval recently received from the City of Los Angeles has not yet been received, but is expected shortly. • Elsmere Dedication - Allied/BFI offered to donate 800 acres of their 1100 acre Elsmere Canyon holdings. The remaining 300 acres would be set aside for other potential development purposes such as the expansion of the Cascades Golf Course. The donated land could be dedicated through an option agreement upon the City's action to give notice to the existing haulers or at the time a contract is signed with AlliedBFI to provide citywide waste hauler services. Allied/BFI has stated that they are confident in their ability to be the selected company through a bid process, regardless of the offer to include Elsmere. • Senior Citizen Discount - Allied/BFI proposed offering a senior citizen discount to all citizens over 62 years of age. The senior citizen discount will be a 12% savings. Waste Management has agreed to amend the existing deal to include a senior discount at age 60. • Clean Fuel Vehicles - Allied/BFI proposed that all refuse vehicles will be "clean fuel" vehicles (LNG). Because Allied/BFI would be purchasing all new vehicles to service a new contract with the City, all vehicles would be "clean fuel" at the start of the contract. The existing franchisees have also agreed, and all haulers are required by the Air Quality Management District (AQMD) to conduct this conversion as new vehicles and/or replacement vehicles are purchase. • Violations at Sunshine Canyon Landfill - During the period between October 1999 and October 2000, the LA County Department of Health (LEA at Sunshine) issued a total of 15 violations at Sunshine Canyon Landfill that ranged from traffic control, to above -limit concentrations of methane gas, to acceptance of untreated medical waste. As of January 4, all violations issued by the LEA were either fully corrected or downgraded to "area of concern" and there were no outstanding LEA violations. From May to September 2000, 17 loads of suspected untreated medical waste were taken to Sunshine and identified by site personnel. In a report to the LA County Board of Supervisors on medical waste issues, the Health Department found that BFI/Allied acted diligently in carrying out its hazardous waste exclusion program. The suspected waste was identified (although it did not arrive properly tagged from the medical institutions), and was disposed in a distinct area apart from the normal trash discharge area. Thus, the Health Department believes that many of the suspected loads identified at the landfill were likely to have been properly autoclaved. Solid Waste Franchise Page 4 Pros and cons ofthe trno identified alter +- Accept negotiated franchise amendment with existin nchisees provide notice to the existing g franchisees and conduct Pros Cons a com titive rocess pros ' All negotiated service Potential for le al g challenge Least potential for Cons No increase in service enhancements successful legal enhancements for 5 would be effective challenge Year's (does not mean immediately (see that services will list following) decline since current haulers are still required to comply • No disruption of ■ City will be locked • Potential for donation with the current contract) service to. residents with into an evergreen term of 800 acres of Residential rate increases continuation of Els Can no on Y ( commencing on current provider Certainty) — only if a deal is January 1, 2002 (up made with Allied/BFI to 5% per year) based • Residential rate Lost potential to . on current franchise 1 a e freeze continued for additional obtain Elsmere City designed state- of -the -art) franchise Increased potential for 4 years (total of 10 Canyon (800 acres) through a document with new the City to not achieve its 75% ears) donation bid diversion goal by • Improved collection of waste Lost potential for City designed Potential to gain 2005. 5 -years of potentially stream data (upon state-of-the-art enhanced service and heavy lobbying by all inclusion of non- franc franchise cost package for the viable haulers to get exclusive rolloff services document community (exclusive franchise agreement) the ultimate contract after a competitive with new deal selection recess) commencing in 5 • Increased te • Ras will still ears potential for achievuig 75% remain among highest rates in ' Potential to alienate the Granada Hills diversion goal by Southern community against 2005 due to California. the City Solid Waste Franchise Page 5 ontract Enhancement: Term ofthe Contract (Section 10 A) ontract Enh-_ancement: Adjustment of Rates (Section 21BO ontract Enh-- an�cem_ent: AQMD Rule 1193 and Other Proposed Legislation (Section 22 B) The term of the franchise will be modified to a four-year Year evergreen for a total of 12 years. The recent amendment would reduce this term to followed by a 3 year term, with a biannual review) term with an eight - 10 years (7 year fixed Los- W wu mange tfus formula to equal 40% of the change in the Angeles -Anaheim -Riverside CPI with a cap of 2%. Criteria will be established to determine if haulers rate increase request is reasonable. City Council will have the right to approve a lower rate increase than that proposed by the haulers based on these criteria. A new subsection B is proposed to be added to Section 22 regarding SCAQMD Rule 1193. The proposed language would require indemnification of the City against any potential fines associated with SCAQMD 1193 as it relates to fleet vehicles of the waste haulers. A new subsection C is proposed to require haulers to comply with any and all legislation regarding environmental policy - including a requirement for the use of re -refined oil in fleet vehicles. Language will be added that indicates the City will partner with the haulers in developing a shared public alternative fuel fueling station. L- IThe haulers agreed to use re -refined oil as long as it does not conflict with the vehicles warrantee Contract A proposed new subsection Enhancement- len Q WO�d added to Sectiott 5. The proposed ------_ guage would not allow any single collection route to have addressee both City Only Routes inside and outside the City's franchise area. (Section 6 Q The haulers already have a tracking system, but the City is requesting quarterly re orts on route than es. Contract Proposed language update the franchise Superfund liabilit Ian Enhancement: additions include liability from disposal facilities not owned or operated bycthe Superfund grantee. In addition to updating Superfund len guage Liability oposed would require an annual meeting between the haulers and City Staff t discus ways to (Section 26B) reduce their respective potential CERCLA and other liabilities to third parties. Solid Waste Franchise Page 6 ontract Enh_ ancement: Enhanced Insurance Liability Enhancement: Comingled Recycling (Section 5 Cl, ervice Enhancement- Enhanced nhance_ m_ent: Enhanced Green Waste Services (Section 5 Cl, rvice Enh— an_ cement: Rate Freeze (Exhibit D-01) Proposed language revises current franchise insurance lan workers compensation limit to $10 million a gua$e. Increases ion and $5 million per occurrence and $20 million o general liability. insurance nasea on citywide. recycling program Proposed language would enhance green waste services to include: landscaping and gardening services would be able to place their green waste material at the curb for collection as well. In addition, containerized wood/lumber would be included as an eligible material for collection (as long as it fits in the container and is accepted by the recycler). The requirement for 12 additional green waste collections would be eliminated. nesiaential rates will remain frozen for an additional 4 years (ending December 31, 2005) and will apply to all rates on Exhibit D-01 (with the exception of item D). `•�r�a+ wouia acid several sections to Subsection K of Section 5. Language Enh-- anent: includes the requirement for the following enhancements to public education: E7every Educational lids on recycling and green waste bins Quarterly presentations to schools, and atwice-yearly report to the City re ardi the effectiveness of the resentations The haulers ¢gnB p (quarter per hauler) greed to two per Quarterly presentationstomulti-family communities and a twice -yearly eport to the City regarding the effectiveness of the presentations evelopment of public education materials designed specifically for multiamily communities otating radio and television ads roduction of a half-hour informational video – make a new video at least ve 9 to 3 years Solid Waste Franchise Page 7 - -- --� rroposes anew Subsection D2 to Section 6. Proposed language explicitly requires Enhancement:-- that all multi -family premises h Multi Family family premises ave recycling services provided. That all multi - that do not currently have recycling service will have recycling Recycling services b Jul 1 2001. The Cit will (Section 5 D2) recycling service is not practical, y grant exemptions to this in cases where =aupuoes a new Subsection C2 to Section b. Proposed language EnhaEnha ncement: that those single family units using residential bin service must also have Residential Bin recycling service. Service Recycling Proposed language defines all types of recyclable solid waste as eligible for ---------------- Enhancement- collection. Haulers will be required to collect all types solid rwastebles and recycle Expanded Types any types of material they are able to. ofRecyciables (Section 2 J) The haulers are willing to add materials to the list of recyclables as long as items t in cans and are accepted by thn .m r Servr *'x vrtcae N6 Uc $. �:" :3 x q S ✓� vv� � ��'t4Tkl7 The proposed language would add Subsection P of Section b. The City is Event: interested in determining an egective system for Proper Self Haut residents who wish to cancel their waste service. p Per waste disposal for (Section 5 P) Solid Waste Franchise Page 8 Contract Enhancement: Notification of Holiday Schedule (Section 5 G) Proposed language would require haulers to provide notification of changes to the collection schedule on billings statements immediately prior to all holidays. Solid Waste Franchise Page 9 Items raised by the City Council at the February 13, 2001 meeting are highlighted above. Additional items raised were considered but were deal: not included in the negotiated - -- ���_�_• ane "ty attorney advised against have the franchisees provide free services to the City; however, the current franchise includes an annual additional $112,000 for uns ecified services Waste The haulers have offered to contribute a portion of the $112,000 for this son ;ne At the February 13, 2001 City Council meeting on this item, several roll -off company representatives expressed concern that including roll -off, service in the franchise would Put them out of business. Staff had meetings with the following roll -off companies: Crown Disposal, Looney Bins, AN Equipment Rental, and Rent -a -Bin. They have all expressed a desire to continue operation and opposition to an exclusive franchise for roll- off services. Waste Management has verbally offered to amend the currently negotiated deal to take roll -off services out of the deal and to reduce the term to a total of 10 years (7 year fixed followed by 3 years evergreen). Staffs recommendation is to accept this offer and to pursue a competitive non -eve roll -off franchise. AllAIl�FI • February 1999 - Allied purchased BFI • Summer 1999 -- Staff contacted Allied to determine their interest in selling the Elsmere property to the City or some other public agency • January 2000 - - Staff met with Allied and toured the Elsmere property and reached agreement that as soon as the current lawsuit pending against Allied/BFI over the City of Los Angeles expansion of the Sunshine Canyon Landfill, the City could Proceed with an appraisal of the Elsmere property. It was expected that the City would make an offer to purchase the property upon • January 25, 2000 — City Council directs staff completion of the appraisal. City puts franchise agreement to investigate what will happen if the contract. out to re -bid rather than extending evergreen • March 7, 2000 — City Council Study Session reviews report of findings on what would happen if the City goes out to bid. • March 14, 2000 — City Council Meeting, direction provided to staff to negotiate with existing franchisees to get as much through negotiations as could have been obtained through the competitive bid process • April 28, 2000 — Hauler negotiation session with City staff • May 11, 2000 — Hauler negotiation session with City staff • May 17, 2000 — Hauler negotiation session with City staff Solid Waste Franchise Page 10 • May 25, 2000 – Hauler negotiation session with City staff • June 8, 2000 – Hauler negotiation session with City staff • October 20, 2000 – Hauler negotiation session with City Staff • November 3, 2000 – Hauler negotiation session with City staff • November 14 – Hauler Update to the City Council • November 27, 2000 – Allied/BFI met with staff to discuss their concern with the City potentially including roll -off services in the existing commercial franchise agreement. At this meeting, the staff encouraged BFI to submit a written proposal to the City. • November 28, 2000 – Hauler Update to the City Council. • December 15, 2000 – City staff and the City Council Solid Waste Committee received correspondence from Allied/BFI. This letter only advocated fo competitive roll -off market. No specific proposal was received.r the continued • December 19, 2000 – Hauler negotiation session with City staff • January 2, 2001– Diaper Recycling Study Session • January 22, 2001– Hauler negotiation session with City Staff • February 13, 2001 – City Council and City staff received a written proposal from Al iedBFI that included the donation of Elsmere (first time the donation of Elsmere was included in the proposal by BFI/Allied). • February 13, 2001– Hauler update to the City Council • February 15, 2001– Staff met with Looney Bina to discuss the roll -off service issue. • February 16, 2001 – City staff met with AlliedBFI to obtain additional information regarding their February 13, 2001 proposal. • February 26, 2001 – City staff met with several roll -off companies (Crown, AIV, and Looney Bins) • February 27, 2001– City staff met with Rent -a -bin representative • February 28, 2001 – City staff met with existing franchisees to discuss status of negotiated deal • March 1, 2001 – City staff releases agenda report for March 5, 2001 City Council meeting ALTERNATIVE ACTIONS • Provide notice to the franchisees on the City's intent to re -bid the residential franchise at the conclusion of its term in five years • Other actions as determined by the City Council A—TTA--CHMENTS AlliedBFI proposal dated February 16, 2001 and additional material submitted to the City subsequent to February 16, 2001 City notes from February 16, 2001 meeting with Allied/BFI Correspondence from Allied/BFI to the City Correspondence from Looney Bin to the City Draft Notice of Intent to Bid Letter Map of the Elsmere Dedication Solid Waste Franchise Page 11 JJL:Iep a: \pbs\lambert\envsrvcs\wagda9-6.doc February 16, 2001 Mr. George Caravalho, City Manager City of Santa Clarita 23920 Valencia Blvd Santa Clarita, CA 91355-2175 Dear Mr. Caravalho: It is my sincerest pleasure to present this proposal to you in response to the city council's request. I believe it clearly displays the level of service and pricing for each business line and each point that was originally Presented red in the proposal letter dated February 12 2001. I also wish taddress the comments council meeti that were made during the public forum at the city ng on February 13, 2001. The first issue is that of the timiof the proposal. The initial ltial Proposal was issued to the City two weeks prior to the recommendations made by Staff in its report. Allied/BFI did approach the waste subcommittee of the city council with our thoughts and ideas. The proposal was given in advance of the city council meeting and was within legal guidelines, as affirmed by the city attorney. The Proposal was and is legitimate and the purpose was to ask the city to consider the benefits that our company can offer the city, Prior to a twelve -Year lock -in with the current haulers. We came forward hoping to help the city make good decisions about its future with regard to the waste and recycling issues. Our proposal was up -front and sincere, with no hidden agenda The second issue also Pertains to the timeliness of this proposal and the donation of the Elsmere Property that AlliedBFl owns• Approximately one year ago I was contacted by Jeff Lambert to discover our willingness cooperated with the City of Santa Clanta,sPs ro PertY o sell the property. Subsequently we and answered anaPPraiser, gave tours of the property, Y questions that the city had with regard to Elsmere. I had suggested at that time that Allied/BFI would like to entertain the idea of pursuing a waste agreement with the city in exchange for the property. Allied/BFI would be forfeiting one future Opportunity at Elsmere for another opportunity. Alter checkin Mr. Lambert reported at that time that the City "did not want t start a g with Upper arrbbageewwarr.- We respected that and left the idea alone at the time. We were not contacted again on the issue by the staff. Sun Valley Division • 9200 Glenoaks Blvd. • Sun Valley, California 91352 This past Year Keith Hester, General Manager of Los Angeles, made contact with the staff on three separate occasions. The contact Mayor Darcy. with stag Was directed by then mayor, members. The fiShe asked that we speak with you prior to contacting the city council rst contact was a face to face meeting to discuss Mr. Hester's concerns regarding the franchising of the temporary roll off business, and to bring up Allied/BFI's with two lest in tters; waste an datedrecycling agreement opportunities. He followed this meeting 2 15, 000. In each letter he expressed our �mrst 2000 a to other dated December n detailed the benefits to the City of Santa Clarita you find copies of these lettment ersanm this proposal packet. Finally, I wish to address the issues stated during the council meeting as to the credibility of Allied/BFI. The points made were specific to the Sunshine Canyon Landfill. Allied Waste Systems purchased Sunshine Canyon in August of 1999 and we are very proud d our track record at this facility. Sunshine Canyon is a very safe landfill that works closely with the LEA on a consistent basis. Sunshine Canyon has existed as a landfill for many Years and will continue to provide vital landfill capacity for many years to come. The City of Los Angeles and the County have proceeded to permit Sunshine Canyon to . met the landfill needs of the region for the next 25 years. We are proud of the company and proud of our employees for the great job they do at our facilities, and Sunshine Canyon is no exception. I have attached additional points to this letter and proposal that are specific to Sunshine Canyon. I trust that this letter and the proposal detail -pages that follow will bring clarity to our original proposal as submitted on February 12, 2001. I welcome any comments or uestions that you may have. Sincerely, Amoroso District Manager Southern California District Enclosure CC: Santa Clarita City Council Members Santa Clarita Daily News Signal News Santa Clarita Proposal i. Residential rate for single family: • $17.70 per residence per month. • Weekly waste collection. • Weekly curbside co -mingled recycling. • Weekly green waste collection Currently the residential rate is $22.13 per residence per month The $17.70 that Allied/BFI is proposing is a full 20% reduction from today's pricing.is 17v today's dollars and the base rate of $17.70 would escalate on a "go in fos figure rward" basis until the contract actually would begin. This rate would escalate with the change in the Consumer Price Index (CPI), not to exceed 1 % in any given year, provided the agreement $18.6 within five Years. nth at ther,ein in any scenario, the starting price will not exceed $18.60 per home per month at the beginning of the agreement. Even at $18.60 per tesid nce'oday. the savings realized would be 19.2% compared to the rates five years from This translates to a savings in today's dollars of $2,073,240 annually to the citizens of Santa Clarity Over a 20 -Year term the savings is $41,464,800. This further translates to a $1063.20 savings to each resident over the contract term Even in the worst case scenario, at $18.60, the savings would be $2,068,560 annualized in five years from now. These figures are based upon 39,000 homes and based upon the current haulers receiving a 2% increase at the beginning of the fifth year. 2. Senior Citizen Discount • The "senior" rate would be available at age 62. • The "senior rate" would be a 12% savings. 3. Commercial rate for businesses: • Same as the current waste collection rate at the top of the rate band, and eliminating the "band" to Provide a single rate for each level of. rvice. This eliminates any inequities from one business to the next. • Co -mingled recycling collection (bins or roll out carts). As in the residential scenario, the rates are based on today's dollars. The same escalators would apply to the commercial rate structure as well. 4. Enhanced Recycling • The recyclable items will be collected co -mingled, and in a single container (with the exception of the diapers). • The residential units will have a diaper -recycling program added to the recyclable items. The commercial segment that generates diaper waste centers, convalescent facilities) would also have diaper recyclinghospitals, day care The diaper processing equipment would be located at the Sunshine The to them. Canyon Lan • The commercial segment will receive recycling service in addition taste service. Allied/BFI will provide and collect co -mingled recyclables in a separate container; either a bin or a roll-out cart depending upon volume and space limitations. • Al ied/BFI has strong partnerships with area recycling processors. Additionally Allied/BFI is considering the construction of a MRF/processing center at the Sunshine Canyon Landfill. S. Green Waste Processing Site Sunshine Canyon currently accepts "hand unloaded" green waste and is in the process of obtaining a processing permit, The processing permit essentially will be a "chip and shiP" permit. The green waste and wood waste will be chipped and then sent out forcomposting by a third party. Future plans will include an on-site compost area for green waste and food waste. Sunshine Canyon is host to the largest oak tree nursery in California and the vario mulch/compost will benefit the tree cultivation. Additionally, Allied/BFI will have use. us opportunities for the citizens in Santa Clarita to obtain free compost for their 6• Quantifiable Recycling Reports • Detailed monthly reports given to the City to document the volume of materials diverted from the landfill. These reports will be from all waste streams that we collect (i e. residential, commercial, and industrial) 7, Roll Off Service Franchise Alfied/BFI's Position has remained consistent on this issue. Open competition for temporary roll off business allows other waste haulers to provide temporary roll off service within the franchised area, our recommendation would be to include only the Permanent rolloff service in the ag1eement. This allows for consistent and stable Ping for the customer and the greatest diversion and reporting of reeyclables. This would also increase revenue to the City through franchise fees. 8. Ample Landfill Capacity As detailed in the cover letter, Sunshine Canyon has many Years to come; sufficient landfill capacity for Alhed/BFI will guarantee space for the City of Santa Clarita during the term of the agreement. Santa Clarita, as with the City of Los Angeles, will have "preferred status" at Sunshine Canyon Further, as owner, only Allied/BFI can offer long-term with higher ratess.. rate protection the City while other waste haulers will need to recover these costs 9. AMedBFI will Provide CERCLA Indemnification to the City of Santa Clarita at the Sunshine Canyon Landfill 10. Donation of the Elsmere Canyon property to the City of Santa Clarita start • significantthe portion of of the aas ee�t, �e�FI will transfer title ownership of all or a attached. ]smere Canyon Property to the City with no conditions The explanation of a ,,significant portion" includes all of the land designated for landfill Purposes, such that the City could control the outcome of any landfill proposal on the site. I. addition, Allportion o will provide for reasonable access to the City of Santa Clarita. The only Portion of land that may site. be considered for development is the south boundary. The portion available to the City is in excess of 800 acres of the 1100 acre The donation of Eismere Canyon provides a benefit for the citizens of Santa Clarita well into the future for open space and recreational purposes. The wildlife and habitat feature on that property represent a unique resource for the county's fastest growing community to enjoy for years to come, CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: Jeffrey Lambert, Director of Planning Jill Fosselman, Interim EnvironmeServiand ce Manag Services FROM: BeAjamin Lucha, Environmental Analyste--;e DATE: March 1, 2001 SUBJECT: BFI Proposal Notes The following are supplemental notes taken during our meeting with BFI further clarifying some points in BFI's proposal (the underlined portion requires actions from either us or them): 1) Violationa/North Valley Coalition a) According to BFI most of what the North Valley Coalition said was untrue. They feel that it is one of the finest landfills around and that it is an asset to LA County. b) They recently won a portion of a lawsuit against them, but the Coalition has submitted an appeal. C) Most of the several violations that Sunshine Canyon has received were "paper violations." In other words they were violations for not complying with record keeping requirements. According to BFI this is mainly attributed to personnel changes that occurred at the time. i) One violation that they mentioned was a methane gas violation, which was later determined to be attributed to natural occurring subterranean methane gas, and not landfill generated gas. ii) Medical waste related violations were other violations that they wanted to clarify. Most medical wastes that enter the landfill are treated. When a waste looks questionable the Department of Health is immediately notified. When the body parts were discovered, what they really discovered were apparent internal organs. The DOH was immediately notified and commended BFI for their response 2) Residential Rates for Single Family Homes a) After 5 years the rate will be subject to typical CPI rate adjustments, which can either increase or decrease the rate. b) The rate stability will mainly depend on tipping fees at the landfill. c) BFI promised to do the best they can to protect the City rate from increases. If tipping fees end up growing exponentially, they will do their best to make sure the City's rate does not grow the same way. d) BFI said that the a host City. If SaCity of IA gets preferential treatment from BFI since LA is treatment. City Clarita goes with BFI, the City will get the same e) BFI said that the reason they are proposing such a long-term contract is benefit the City with lower rates. to 3) Commercial Rate for Businesses a) Since rates will not vary BFI plans to encourage recycling by employing a full time Recycling Coordinator dedicated entirely to Santa Clarita. b) BFI encourages businesses to recycle by offering recycling containers to the businesses for $0.02 per month (purely for tracking purposes). c) The commercial rate is based on the higher current rate; therefore, the commercial businesses on the lower end will have to pay more. d) F aromised to send us a Sam le udit form that is currentl beim used b their solid waste auditors e) BFI sueeeRtoA +1, __„ n wtuua az tine uit of Monrovia to inquire about their waste audit row am 4) Enhanced Recycling a) BFI said that they probably would have a MRF constructed in less om now. than four Years fr b) BFI said that building a MRF here in Santa Clarita is highly improbably since it would not be very accessible for their other operations. c) BFI said that Santa Clarita residents would probably get a 64 -gallon trash container, a 90 -gallon (or maybe 64 -gallon) commingled recycling container, and they are not sure about what hey will offer for the o eeenwaste ction. They re lly do not want to limit the amount ofgreenwaste that they will allow people to recycle. 5) Green Waste Processing Site a) BFI said that their "Chip and Ship" program should be fully implemented in a little over a month from now. b) BFI said that in approximately two years from now they should have their composting facility completed. c) BFI said that chances are we would not have a greenwaste-recycling Program, instead it would be an organics -recycling program (thus also allowing food waste recycling). 6) Roll -Off Service Franchise a) BFI emphasized that this has remained consistent and it was not done in response to Lefty's speech in the City Council meeting. 7) Ample Landfill Capacity a) Currently LA is the only City with preferred status. With preferred status the City of Santa Clarita is guaranteed to have its waste taken there, even if other City's have to be turned away. b) BFI pointed out that according to a study performed on January 2001, the City of Santa Clarita's trash rate is ranked #64 out of the 76 cities surveyed in Southern California. Providing plenty of room for improvement. Thev romised that theY w 8) Elsmere Canyon uld forward a copy of the report to us. a) There are several developers interested in the additional 300 acres of Elsmere Canyon. One wants to add an additional 9 holes to a golf course, another wants to turn a portion of it into a residential area, and another wants to put an Industrial Development in the area. b) BFI stated that they are confident in their ability to be the selected company through a bid process, regardless of the offer to include Elsmere Canyon. c) BFI said that they might give Elsmere Canyon to the City as soon as a franchise agreement has been completed, rather than having the City wait until the end of the five-year period. BFI pointed out that City would have to sign an agreement promising to reimburse BFI if there is a sudden change causing them to lose the franchise before they even begin. d) BFI said that they are thinking about undoing the application for turning Elsmere into a landfill as a good faith effort, although they would have difficulty with Los Angeles County in doing so. e) BFI promiaPd „a a _t __ . on completion of thea eement. r IBmere will go to the Cit 9) Diaper Recycling a) BFI said that the diaper -re b) cycling program would not affect the rate. BFI said hat the would get back to us with information on how they will fund the cavital costs, along, c) BFI is proposing a pilot program and will do their best to push the process 10) Clean Fuel Vehicles a) BFI will use LNG vehicles for the City of Santa Clarita. b) 100% of the fleet serving the City of Santa Clarita will be LNG. c) BFI currently has an outside contractor going in to drop the fuel for them. d) If they make a fueling station it will probably be at the Sunshine Canyon Landfill. i) Allowing other vehicles to fuel there will strongly be dependent on traffic issues, they do not want it to interfere with their operations. 11) In Kind Services a) BFI is willing to supply free trash and recycling containers for special events. b) They donate quite a bit of money to schools and other charitable organizations. C) BFI promises to consider every charitable organization that comes to them, although they will not be able to accept them all. 12) Diversion 1�2 BFIntly is not.pro providing fullfnstrash service for any city in LA County. will )v es" comninTson, although they warned us that some haule&romico are dumping at Mex landfills saying that they are from rs Chula Vista Mee diversion rate. g problems with their BAL \\CITYiL►LL2\DEPT\PBa\ENVSRVCa\SOLWAST2\FRANCHIS\BFIPropNotee.d. November 28, 2000 Mr. George Caravalho, City Manager City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355-2196 Dear Mr. Caravalho: This letter is in response to our conversation o vn N ovember 27, 2000 in your office. BFI would like to propose the following to the City of Santa Clarita in lieu of the City extending the agreement with the two current waste haulers: • BE will meet or beat the current pricin • BFI will guarantee that rate for ag proposed by the sandcurrent haulers. landfill and has the ability to make Ne -year term. BE owns and operates its own • BE will provide automated waste commitment. • BFI will provide monthl and , yardwaste and recycling services. Clerita y quarterly waste diversion reports to the City of Santa • BFI will provide CIRCLA indemnification to the City of Santa Clarita. I realize that the City is well existing agreements but I beliinto negotiations with its current waste haulers to extend the eve that BFI can offer more to the City of Santa Clarita both now and in the years to come, especially in light of the landfill unknowns. We are the known commodity for the future landfill availability. sup I woeruioldr wbe veryaste/recyinteclirested in talking with you further about BFI's ability to provide ng services at a price that is less than the City is currently paying. on this. In fact, I would like to meet with the members of the City Council to explain our position I would appreciate call earliest convenience. from you at our Sun Valley office at (818) 504-3014 at your Sincerely, Keith R Hester General Manager Los Angeles Market Sun Valley Division • 9200 Glenoaks Blvd. • Sun Valley, California 91352 • Phone 888-742-5234 December 14, 2000 Mr. George Caravalho, City Manager City of Santa Clarita 23920 Valencia Blvd, Suite 300 Santa Clarita, CA 91355-2196 Dear Mr. Caravalho: P EPLA NI G DIVISION DEC 15 20D11 PLANNING AND BUILDING SERVICES CITY OF SANTA CLARITA I would like to .begin by thanking Mr. Lambert and your self for meeting with Jim Brusseau and myself on November 27th of this year. Knowing that both you and Mr. Lambert maintain a busy schedule the time spent addressing the solid waste needs and issues for the City of Santa Clarita was appreciated. Our desire is to share with you and the council memberssome of the currently viable options available to the City of Santa Clarita along with our concerns with reference to the City's waste and recycling issues. As you know, BE is one of the largest and most respected waste and recycling services providers to municipalities in the greater Los Angeles area. As discussed BFI has a strong desire to enter the Santa Clarita marketplace and currently the only competitive segment of business within the Santa Clarita marketplace is the Roll Off segment. It is BFI's understanding that the City is currently negotiating to expand and/or extend the exclusive residential and commercial waste collection franchise agreements with the two incumbent haulers. Our concern, in part, is that the City may expand the current exclusive franchise agreements to include the Roll Off portion of the hauling services or may extend the current term of the exclusive franchise contracts as a concession for the two haulers either agreeing to lower or freeze the customers, current rates charged residential It is BFI's opinion that neither the current rate for residential service or a rate of 5% below should be a financial hardship for either of the two haulers nor is it sufficient to warrant the expansion or extension of the current franchise agreements. BFI would welcome the opportunity to provide the residents and business's of Santa Clarita with similar services while complying with the City's recycling and reporting requirements for a rate equal to those being considered. There are several logical reasons for not including Roll Off services inthe current exclusive franchise agreements, which would ultimately benefit the businesses and residents of the City of Santa Clarita. Some of these reasons are listed as follows: Sun Valley Division • 9200 Glenoaks Blvd. • Sun Valley, California 91352 Phone 888-742-5234 • Fax 818-504-o172 • A competitive environment commanding the best pricing and level of service for the customer. • BFI will comply with applicable permit and/or licensing requirements as stipulated by the City. • BFI will provide monthly diversion reports to the City stating the number of tons diverted for AB939 purposes, as well as those residual tons delivered to the landfill. BFI will meet or exceed the 75% diversion stipulation as detailed by the Santa Clarita City Council. • BFI owns and operates the Sunshine Canyon Landfill in Sylmar and can guarantee that ample capacity will be available for Santa Clarita's disposal needs for many years into the future. In addition, BFI will grant CIRCLA indemnification to the City for waste generated within its jurisdiction. We believe that BFI can provide a service to the businesses and residents in your community for Roll Off services at a very competitive price, while helping the City to achieve its waste diversion goals. The second concern I would like to raise is the current exclusive franchise contracts between the City of Santa Clarita and the two parent companies of Blue Barrel & Santa Clarita Disposal and Atlas Disposal which are Waste Management Inc. and Republic Services Group, respectively. Waste Management Inc. (NYSE: WMI) is the largest waste services provider and Republic Services Group (NYSE: RSG) is the third largest waste corporation in the country. BFI (NYSE: AW), as the second largest waste services provider worldwide has both the operational resources and financial integrity to back the commitments that we make. In the Los Angeles area, BFI as a fully integrated company is uniquely positioned to provide the City of Santa Clarita with comprehensive residential and commercial waste services that include a long-term rate commitment. The impending sale of Chiquita Canyon Landfill, currently operated by a Republic Services Group company and the imminent closure of Bradley Landfill, owned by Waste Management, Inc. leaves BFI's Sunshine Canyon as the only private landfill in the immediate area with the ability to make a long term commitment for disposal services. As I understand the Santa Clarita franchise agreements, three companies were providing waste and recycling service to the City. Certainly there is comfort in the "Imown' oma service, reliability and financial stability standpoint. However, with the aforementioned items in mind, I ask for your consideration in allowing BFI to be a proposer for future contracted waste services with the City of Santa Clarita. BFI would welcome the opportunity to submit a competitive proposal to the City that assures a five-year consistent pricing structure, superior service, landfill space for the City for the contracted period (Sunshine Canyon has several decades of landfill space available in the future), CIRCLA indemnification and recycling services for both businesses and residents. I am confident that BFI has the most to offer the City of Santa Clarita today and into the future. I respectfully request that the City create an RFP to determine the most responsible and competitive cost 'Provider of waste services for Santa Clarita and not to enter into contract extensions. I realize that there are several questions and concerns that may arise; items such as reliability, transition ability if a new vendor is awarded a contract, pricing issues, waste diversion, etc. Therefore, I would like to suggest you contact one of BFI's most recent major customers in the Los Angeles Area, Los Angeles Unified School District for a portion of their total services. BFI was able to create a very smooth transition from the Previous waste provider and recycler to our services. delivery of over 2200 three cubic yard It entailed the procurement and bins without disrupting the current service and then beginning the new service without "missing a beat." Our team of employees' put together an extremely thorough transition plan and then implemented it on time and as promised. I would encourage you to call Mr. Marc Monforte, Purchasing Services Manager or Mr. Benny Adauto, Truck Operations Manager at L.A.U.S.D. and get their perspective on not only the transition, but also the level of service that the school district receives. Finally, I wish to thank you again for your time and consideration. I sincerely hope that BFI can be an integral part of your waste the future. and recycling services needs both now and in Sincerely, Keith R. Hester General Manager Los Angeles Market Cc: Jeff Lambert City Council FEB 13'01 10:02PM BFI ,- OVMENR CAI_ 310 323 6063 P.2/3 February 12, 2001 Mr. GOorge ManM 239200 We n�Blvd, Smite 300 Sana Cladta. CA 91355-2156 Dear ft. Caravalbo: Should the City of Sarva Claim be In a position to contract wit) a new savior provider, BM wishes to make sure that our proposal for waste evaluation sad Cmaidaation. 11ig M placed bMM you and the City Council for 7his lefter wnff=s what am sure gaper and provides event mor demi � oonsidwatlon. have read in the a and advrrtlsem�ts in I1ae Signal TWs Proposal is predicated upon a 20•yew evvemeat, which greatest anortimtion of equipmentt the ���g the bock value own the Fdsmere props* •l�� for the will be BPl tnpresartatives you or the Couaal may havecil the°fig on February 13, 2001 to answer any questions that Tice proposal is as follows: • Residential upon todWa dolllam Escalation' f Perresidmcc Price of $17.00 to $lS.00 per month. Ibis to the beginniOg of the agreementhese rates would be subject to agreed upon escalators up • Senior Citizen rates would be author reduced beyond the cmtart pe+tages. • �Commercial waste collection with a single rate band et rates oro higher than the camut prices. recycling services and in pmsbLine Canyon nor, W and industrial servicea. CaIIBornia� Pt 0°°ssm8 art° at the Statah oto Canyon Landfill (pending permit issuance by the State of • QuOutiSable reporting to the • Roll offswviee can be ffendtl� ofthe diversionupon Perceamges • Ample landfill dat ��8 upon the wishes of the City. • CERCLA indemnificaallon to tbo Ci the Stmahme Canyon Reentry • DoWou of all or ty Santa Clarim, City of Santa Clmim for s portion of dee Elamere Canyon ProPaty that is owned by lin to the Open apex andtmal puryoses. Thew are the highlight, and the for 9uesdoas at the om,, city oouacil mof the ProposaL Again, BFI vee will be available Please do not hesitate to call me Itoetins tomorrow evening. in the meantime, if there are any questions (g S) SO4-3014. Sine'/ /9, lew Keith R Hester General Manager, Los Angeles Market Sun Valley Division • 9200 t3lcnoaks Blvd. • Sun Volley, California 91352 ti FEB 13 101 10: 03W BFI / GARDEN CAL 310 323 6063 P.3/3 CC: Mayor Lauren Waste Council Member Darcy Council Member Ferry Couno7 Member Keller Council Member Smyth . Santa C1arita Si" Santa Clarita Daily News Jeffrey Lambert, Director ofPlanning Rate Calculation Template Difference in rate at the start of the agreement would be $4.42 per household, or 19.2% less than the current haulers at that time. Annualized savings at the start of the agreement would be $2,068,560 based upon 39,000 single-family residences. This is only a first-year savings. As CPI percentages are applied to the rates at 2% each year, the savings grow incrementally. Year 2 savings would be $2,134,080 simply because the initial rate from BFI is lower and consequently the dollar amount increased is less. Allied Pro 2w Current Haulers Current $17.70 $2213 Year 2 $17.88 $22.13 Year 3 $18.06 $22.13 Year 4 $18.24 $22.13 Year 5 $18.42 $22.57 (2% increase) BFI Starts $18.60 $23.02 (2% increase) Difference in rate at the start of the agreement would be $4.42 per household, or 19.2% less than the current haulers at that time. Annualized savings at the start of the agreement would be $2,068,560 based upon 39,000 single-family residences. This is only a first-year savings. As CPI percentages are applied to the rates at 2% each year, the savings grow incrementally. Year 2 savings would be $2,134,080 simply because the initial rate from BFI is lower and consequently the dollar amount increased is less. February 23, 2001 1 Mr. Jeffrey Lambert, Director of Planning City of Santa Cladta 23920 Valencia Blvd, Suite 300 Santa Clarita, CA 91355-2196 Dear Mr. Lambert: In response to the questions that were raised in our meeting on February 16, 2001, please find the following responses and attachments: • Allied/BFI's proposed rate calculation was already faxed to you on Thursday, February 22, 2001. 1 have included it in the packet as well. The rate adjustment method after the start of the agreement will be based upon a reasonable CPI adjustment on an annual basis. In addition, there will be a long-term price protection formula that will be applied. This price protection will include items such as landfill rate stability and other items as negotiated. The issue of "why a 20 year term?" was also discussed. 1 believe we answered this in our meeting but 1 will recap our response. The key reason is the assurances that Allied/BFI can offer with a long-term agreement for landfill space and rate stability. The 20 -year term also allows the company to replace its capitalized equipment twice during the contract period. Further, should a MRF be constructed, the amortization period would be 20 years at a minimum. Finally, we believe it to be the most attractive scenario for the City due to using today's dollars and pricing as a base, with experiencing CPI adjustments going forward. This provides the lowest cost for the City over a longer time period. • Staff had also asked for the report prepared by Hilton Farnkoff & Hobson for the City of La Canada Flintridge detailing the residential and commercial rates in Los Angeles County. A copy of that report is enclosed. • Staff had asked us specifically how we would enhance the recycling Programs. We addressed this by referring to our "2 cents program." I have enclosed a packet of materials that our recycling personnel send to the commercial customers, along with the letters that are sent out, the timing of each, and our tracking and audit systems. The enclosed documents are Sun Valley Division • 9200 Glenoaks Blvd. • Sun Valley, California 91352 i specific to Pasadena but are applicable for all communities that we provide service to. • There were two letters discussed that Staff would like Allied/BFI to consider writing. The first dealt with our pursuit of rescinding the landfill permit at Elsmere Canyon, and the other addressing our support of the expansion of the City's sphere of influence. These two letters are being looked at currently by Jim Ambroso and our legal counsel. Mr. Ambroso hopes to have a response to you on each by next week. • You had asked for a list of cities that BFI provides recycling service for to analyze our diversion percentage. The following is a list of cities that Allied/BFI provides some form of exclusive diversion program. - Alhambra (residential recycling and yardwaste services) - Santa Barbara (residential recycling service) - Chula Vista (residential recycling and yardwaste services) - Clovis (residential and multi -family recycling services) Finally, you had requested a map of the land that Allied/BFI owns at Elsmere Canyon. Dave Edwards, General Manager of Sunshine Canyon Landfill, will supply this to you no later than next Friday, March 2, 2001. 1 do not physically have it available today to include in the packet. If you have any questions with regard to this map, please contact Jim Ambroso at (818) 504- 3017. I hope that this letter and the enclosed information are the items that you requested. I realize that there are three items still forthcoming; the two letters from Allied/BFI pertaining to the landfill permit and the sphere of influence issues, and the map of Elsmere Canyon with detail. If you need additional information or if I can answer any questions please feel free to call me at (818) 504-3014. Sincerely, 06 Aa0" Keith R. Hester General Manager Los Angeles Market FROM : LOONEY BINS, Inc. Fqx N0. : 818 '768 7107 Looney/ Bins. Inc. Feb. 26 2001 04:56pM p2 11616 Shddan 9uoq Fw V.Ihry CA 9133a FA 818.768.7197 r" 818.764.7107 lawuy�nh: V n�y�hno.mn City of Santa Clarita Attention: Jeff Lambert Director of Planning & Building Services 23920 Valencia Blvd #300 Santa Clarita, CA 91355 February 26, 2001 Dear Mr. Lambert, •rw. This letter is in response to our meeting on February 26, 2001 in which the temporary r off service was discussed and what role LOONEY BINS would like to continue to play the City of Santa Clarita. Let me first thank you for taking the time to meet with us to discuss these issues. I understand the time frame is short and we do appreciate your tim As discussed the fallowing is an outline of what we would like to see happen with then off and temporary bin service in the City of Santa Clarita- • Either a non- exclusive roll off franchise or roll off permitting system • All participants to be consistent with a reasonable diversion rate in order for the Cit, to be in compliance with AB 939 • Mandatory monthly recycling reports to be provided to Staff in a consistent and universal format to be agreed upon, by both haulers and staff • Adequate insurance requirements met by haulers including workman's comp and liability with the proper forms to be provided to the City • All bins or boxes delivered to the City to be in safe and proper condition • Complimentary bins or boxes available to the City for charitable events • Recycling educator available to any school or organization upon request of Staff or i Council Members In closing, I would like to thank you in advance for your consideration and as always I am available to discuss any of the above and other issues pertaini recycling. ng to solid waste and Best rega ds, 14� Kimberley Heilemann Recycling Coordinator �._.. WRdF ewe "�„ i Looney Bir, 5, Inc.' 1332 Ph 818.768.7197 Fax 818.768.71o7,00 inW&nhw_�,�, •- . Wednesday, February 14, 2001 Santa Clarita City Council Members City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarits, California 91355-2196 Dear council members: Thank you for taking the time to read this letter. Asa resident of Santa Clarita and employee of Looney Bins I was very interested in expressing my view on staffs proposal to include rolloff services into the waste haulers franchise agreement. On February 13, 20011 filled out a speakers card at 6:30 p.m. and planned to speak to the council 1egarding the proposal, however, my name was never called and the agenda quickly moved to discussion by the council. Both my company and I strongly oppose the exclusive franchising of roll -off services in Santa those Clarita. do believe that it will and those whhave negative ramifications to residents, businesses, o do business in Santa Clarita. If you choose to accept staff proposal in its Present form'it will not only put Lefty from Rent -A -Bin out of business in Santa Clarita but also several other companies including ours. The independent haulers have invested significant capital and resources into providing quality service to the citizens and businesses of Santa Clarita. As it pertains to roll -off services the present independent haulers outperform franchise haulers; one, in the ability to quickly respond to the customer needs, and two, in the ability to far exceed their roll- off recycling rates. Looney Bins' landfill diversion rate (construction and demolition debris) in Santa Clarita was 73% in 1999 and our 2000 percentages (available 3-1-01) will be comparable to, or in excess of the 1999 diversion rate. Crown Disposal reports similar landfill diversion rates. At the Chamber legislative meeting on January 9t" the Waste Management representative stated their roil -off diversion rate was approximately 5%. These rates are gravely inferior to the independent haulers who recycle. If you choose to except staff's proposal you will put out of business those who are in a position to help you reach your 75% diversion rate. This agreement, as pertaining to roll -off, is counter-productive to quality customer service. Delivery of roll -off containers from Waste Management presently (and :s lm f,,, 1Y1MMe11 1MC►'YINMKMr Printed on 100% Recycled Paper typically) takes three to five days. Whereas, independent competitors provides same day service to its customers. Construction companies and film production companies require and rely on same day service. I am personally well aware of needs in the film industry and know they will be outraged with any agreement that limits their ability to choose waste haulers. This change will greatly affect their production schedules and may force Production companies to seek alternative locations. Representatives from Waste Management have argued in the past that the roads of Santa Cladta would incur less wear if their company had exclusive franchise rights on rolloff business. For residential service this would be a true statement, however, it is totally incorrect for temporary roll -off service. Roll -off deliveries require one truck for each bin that is serviced. The number of haulers does not and will not affect the number of trucks on the streets or the amount of wear to city streets. We understand and appreciate the desire of city staff to increase and track recycling for roll -off containers. We believe that Santa Clarita and the businesses that provide roll -off services will be better served by a non-exclusive permit, having recycling and reporting requirements included. Various forms of permitting are presently being used successfully in other cities such as Santa Monica, Malibu, Thousand Oaks, Calabasas, West Hollywood, Glendale, Pasadena, and others. I will be contacting you this week to further discuss this matter by appointment. Thank for taking time from you busy scheduleto liste consider our business interests when n to our concerns. We ask you to please making your decision. Recycling CC: Mayor Lauren Weste Council Member Joanne Darcy Council Member Frank Ferry Council Member Robert Keller Council Member Cameron Smyth Jeffrey Lambert, Director of Planning George Caravello, City Manager Carl Newton, City Attorney Santa Clarita Signal Santa Clarita Daily News Printed on 100% Recycled Paper March 5, 2001 [Name] [Company Name] [Address] [City, State Zip] Dear Mr./Ms. [Last Name] Please accept this letter as a formal notice of the City of Santa Clarita's desire to not provide a twelve-month automatic extension on its current residential franchise agreement. Per Section 10 (B) of the franchise agreement, Santa Clarita reserves the right not to issue a twelve-month extension to the agreement as long as written notice of the City's desire is submitted at least thirty days prior to the end of the current twelve-month period. In accordance with the provisions in the current franchise agreement, the City's franchise agreement with Blue Barrel Disposal will end on April 14, 2007 unless it is terminated earlier by default. If you have any questions or would like any additional information please feel free to contact Jill Fosselman in the Environmental Services Division at (661) 255-4337. Sincerely, George A. Caravalho City Manager GAC:JJL:JAF:BAL:ch S:\PBS\ENVSRVCS\SOLWAST2\FRANCHIS\TenuLTR.doc NOTICE OF ADJOURNMENT CITY OF SANTA CLARITA CITY COUNCIL NOTICE IS HEREBY GIVEN that the adjourned meeting of the City Council of the City of Santa Clarita held March 5, 2001 was adjourned to Tuesday, March 6, 2001 at 7:00 p.m. in the Century Room lat floor of City Hall, 23920 Valencia Blvd., Santa Clarita, CA, for the purpose of conducting a Closed Session under Government Code Section 54956.9 (c) - one matter. Dated this 5' day of March, 2001. SHARON L. DAWSON, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. AFFIDAVIT OF POSTING CITY OF SANTA CLARTTA ) SHARON L. DAWSON, being first duly sworn, deposes and says that she is the duly appointed and qualified City Clerk of the City of Santa Clarita and that on March 6, 2001, she caused the above Notice to be posted at the door of the Council Chamber located at 23920 Valencia Blvd., Santa Clarita, CA. SHARON L DAWSON, CITY CLERK FomWadjmtg.doe ATLAS CONSOLIDATED s e r v i c e s February 28, 2001 Honorable Mayor Laurent Weste City Hall 23920 Valencia Blvd. Suite 300 Santa Clarita CA 91355-4377 Dear Honorable Mayor Laurene Weste, Atlas 7Ymapon l.as Yuge 3 Disposal Blue Stu Disposal RECEIVED MAR 0 2 2001 CITY 0 SAN ANCLARITP INDIVIDUAL LETTERS IU C OUNCIL cX?W>:s TO ,CITY CLFJgK As one of the two franchised solid waste and recycling haulers for the City of Santa Clarita I find it necessary to write to you today concerning the recent issues of certain monetary contributions by Waste Management Inc., the other franchised hauler. I feel this issue should not be taken lightly. Republic Services Inc. does not condone this type of business practice. Our company worked diligently with City Staff to ensure that an "above board" good faith negotiation process was adhered to and that no singular member of City Council or third party entity was contacted during this time -period. Waste Management Inc. a vendor/contractor for the City, chosen by the City acted inappropriately, thus creating actions detrimental to the City of Santa Clatita's best interests. The City of Santa Clarita should conduct a review of Waste Management Inc. and it's subsidiaries, Blue Barrel Disposal and Santa Clarita Disposal and its' actions during the re -negotiation period. As a contingency for the City of Santa Clarita, Republic Services Inc. stands ready, willing and able to provide service to the entire city both residentially and commercially, without service interruption to the residents or businesses, should Waste Management Inc. be disqualified. Republic Services Inc remains committed to providing top-quality services to the City of Santa Clarita and this contingency should give the City Council, Staff and Constituents a secure assurance of the level of out commitment Your time and consideration on this matter are greatly appreciated. Should you have any questions or concerns with this letter or any other issue please feel free to contact me via telephone at (800) 950-0005 or cellular (818) 4024079. ATll I General Manager, Atlas / Consolidated Services / Republic Services cc: Santa Clarita City Council G. Caravalho, City Manager J. Lambert, Dir. of Planning & Building Services 21524 Nordhoff Street Chatsworth, CA 91313 800 -994 -HAUL 818-3414745 661-257-2119 Allen Matkins Leck Gamble & Mallory LLP attomeys at lain 515 South Figueroa 7th Floor Los Angeles California 900713398 Allen Madins I telephone. 213 822 5555 facsimile. 213 820 8818 www.allonmetkins.com vnkw. Jarry Neuman t 219 955 5679 9M"umbar.C9095901AA543165.01 a.jneumarWallannmwna.00m March 1, 2001 VIA MESSENGER Mayor Laurene Weste Mayor Pro -Tem Frank Ferry Councilmember Jo Anne Darcy Councilmember Bob Kellar Councilmember Cameron Smyth City of Santa Clarita 23920 Valencia Blvd. Valencia, CA 91355 RECEIVED MAR 0 12001 CITY COUNCIL CITY OF SANTA CLARITA INDIVIDUAL LETTERS TO COUNCIL 017PIES TO. CITY MANAGEA.'CITY CLERK Re: Inclusion of Permanent and Temporary Roll -Off Services Into Current Franchise Agreements Dear Mayor Weste, Mayor Pro -Tem Ferry and City Councilmembers: We represent a number of privately -owned companies who are currently providing permanent and temporary rolloff services within your City of Santa Clarita (the "City"), included among which is Crown Disposal Co., Inc., the largest of the privately -owned, non- franchise companies offering permanent and temporary rolloff services in the City. During your regular City Council meeting of February 13, 2001 (the "Council Meeting"), it came to our attention that City staff had revised their recommendation to the City Council, and that, as part of their recommendation, they were requesting that the City Council approve a re- negotiated franchise agreement with a minimum 12 -year term, which would include all temporary and permanent rolloff business within the City. As we hope you are aware, such an action by the City Council would effectively put a number of smaller businesses which have been serving the City since its inception, and in many instances, for decades prior to the incorporation of the City, out of business. Additionally, we believe, such action would be in contravention of current State law which provides for a minimum of five years' notice to be given to hauling enterprises which maintain active businesses within a city prior to a city council's determination to render such services to an exclusive provider. As indicated above, City staffs recommendation presented at the Council Meeting was a shocking revelation in that just weeks prior thereto a meeting had been held between members of City staff and a number of the small roll -off haulers at which City staff indicated that the inclusion of rolloff services in the franchise agreements had been taken off the table and that there was "no need to worry" that such services would at any time in the future be included in the Lor Angeles CenturyCity Orange County San Diego San Francisco Allen Matkins Leck Gamble & Mallory LLP Stomp at taw Mayor Laurene Weste, et al. March 1, 2001 Page 3 competitive system. Further, in that the impacts associated with providing roll -off service are generally the same, whether provided by a single hauler or multiple haulers, since only one truck can pick up one bin at a time, the relative benefits afforded the City by franchising the roll -off services would be far outweighed by the reduction in both service and the increase in costs that would result from such an effort. Finally, it is my understanding the current franchise haulers believe that the incorporation of permanent and temporary roll -off service into the franchise agreement are necessitated by the anticipated high level of recycling requirements that the City will impose as part of the negotiated contract. As far as we are aware, no mandatory goals for recycling have been set under the renegotiated franchise agreements, but rather mere targets have been set, which are already being met by independent roll -off providers in the open competitive system. Therefore, it would seem that if the existing haulers are concerned over achieving recycling goals desired by the City, the enforcement of the current permitting requirements would provide the City with sufficient data to ensure that recycling goals are being met City-wide and, therefore, no liability would need to be cast either to the franchise hauler or any of the permittees operating under the permit system. Therefore, by merely enforcing the regulations as they exist today, the City can be assured of both meeting its recycling goals and maintaining long-standing businesses which have served the community well. I appreciate the attention each of you will give to this matter and look forward to the opportunity of answering any questions you may have at the next City Council Meeting during which you will examine this issue as well as the proposed franchise agreements. In the meantime, if you have any questions, please feel free to contact me, either directly or through City staff, at the above -referenced address and phone number. JBN:ar cc: Mr. George Caravalho, C: Jeff Lambert, Director of 0�6tj CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: or��W,�to��and Members of �the City Council FROM: orgerA."Cara"va 'tyMi%er DATE: March 2, 2001 SUBJECT: ADDITIONAL CORRESPONDENCE FOR THE SOLID WASTE FRANCHISE AGENDA REPORT Please add the attached documentation to your current Agenda Reports for the City Council meeting that will be conducted on March 5, 2001. The attached correspondence is comprised of the following letters: 1. A letter from Blue Barrel Disposal outlining their suggested changes to the proposed franchise agreement amendments. 2. A letter from Atlas Consolidated Services indicating that they have accepted the suggested changes to the proposed franchise agreement amendments. 3. A letter from Looney Bins, Inc. dated February 14, 2001, which through a photocopying error was not submitted in its entirety with the Agenda.Report. GAC:JJL:BL:ch B:%FRS\ZNVSRVCS%SOLWAM%FRANCMSVy &Mad&tim .dm March 1, 2001 Blue Barrel Disposal A Waste Management Company Mr. George Caravalho City Manager City of Santa Clarita 23020 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355-2196 Re: Santa Clarita Franchise Agreements Dear Mr. Caravalho: On behalf of Blue Barrel Disposal and Santa Clarita Disposal, we are writing to suggest some changes in the proposed terms and conditions for an extension of the solid waste franchise. These suggestions are based on our review of comments made at the council hearing, and believe they will enhance the overall proposal and respond to concerns raised by the council. First, we suggest that roll -off. services remain open. •However, in order to make certain that there is a full commitment to recycling by these haulers, and full reporting of waste diversion, we believe these haulers should be regulated under a non-exclusive franchise system.. We have attached a list of requirements that 'we believe are adequate to assure that the City's aggressive recycling goals can be met, and to protect other important City interests. . Second, we believe a slightly shorter franchise term would be more in line with the desire of the council. As a result, we suggest that the term be changed to a fixed seven year term, followed by a three year evergreen. Finally, we are pleased to provide to the City a proposed timeline for the development of a MRF/Transfer Station, which we believe is a crucial element to maintaining the City's leadership in recycling and to meet its goals. We anticipate that with the assistance of City staIX the MRF can be operational in about four years. A detailed plan and timeline is attached for your information. 25772 Springbrook Road, Saugus, Califomia . 91350 • (661) 259-2398. (661) 259-4253 Fsx . Mr. George Carvalho March 1, 2001 Page 2 Blue Barrel/Santa Clarita is dedicated to playing an important role in the continued growth and development of the City. As a local manager and a local company, we recognize every day .that teamwork with the City and commitment to the community are fimdamental to our success.. We look forward to continue to have a role in this City for many years to come. Sincerel , 1 McCarthy District Manager Attachments cc: Jeff Lambert Jill Fosselman SUGGESTED CONDMONS FOR TEMPORARY ROLLOFF HAULERS 1. Issuance of solid waste collector's permit; fixed term permit 2. Good faith effort to maximize recycling services; customer education 3. Regular reporting of waste diversion to City 4. AB 939 indemnification of City (per PRC Section40059.1) 5. Payment of franchise fee 6. General indemnification of City 7. Insurance coverage 8. Performance bond 9. CERCLA indemnification DEVELOPMENT TIl�,ELME MATER ALS RECOVERY FACILFjy/TRANSFER STATION C•1 and/or zone change.7 "ea "1ng rano use approvals (assn Cem UP (assume F,IR)required) and CEQA requirements 19n' prepare Draft EjR, public co to comments ininent 8 months Prepare draft and final Report W.M- T_ _ _ to prepare Sohd Waste 7 Assuming that certain activities can be performed concurrently, total project time should be approximately 48 months. SERVICES March 2, 2001 Mr. George Caravalho City Manager City of Santa clarity Santa Claiita CA 91355-2196 Cast Ma Caravaiho, FAX No. : 81S 341 4903 Mar. 02 2001 01:04PM pZ C�NSO IL DATED S e r v I c e s Atm'hmspon 8 Sly Spsaf �lal Dispolal After further review of the "Verbal'• offer from Wute Metuget ocnt Ina concerning amendment of the current re-negodsted deal for the Solid Write enncltise, I find the amended iterrts (Term and Ron exclusion) accoptablc to our company, Republic Service Ina is in support of Staff's recommend action to City Council. We would like to c=nd our gratitude to the City of Santa Clarity for its confidence in our company. Sine rely, Matt errelj Cenral Manager, Atlas / Consolidated Services / Ropublic Services cc J Lambert, Dir. of planning & Building Services R. K111, President, Repubilc Services Inc. 21524. Nordhoff Street Chatsworth, CA 91313 800.994 -HAUL. 818-341.4745 661-257-2119 Looney Bins, inc. Wdesday, February 14, 2001 Santa Clarita City Council Members City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, California 91355-2196 Dear council members: Thank you for taking the time to read this letter. As a resident of Santa Clarita and employee of Looney Bins Iwas tinclude roll -off services very interested in expressing my view on staff's proposal into the waste haulers franchise agreement- On February 13, 20011 filled out a speakers card at 6:30 pm. and pled to speak to regarding the Proposal, however, my name was never called d the the council moved to discussion by the council. the quickly Both my company and I strongly oppose the exclusive franchising of rolloff services in Santa Clarita. We believe that it will have negative ramifications to residents, businesses, and those who do business in Santa Clarita. If you choose to accept staffProPosal in its present form it will not only put Lefty from Rent -A -Bin out of business in Santa Clarita m ut also several other companies including ours. The independent haulers have invested si quality service to the citizens and businesses s cant capnta Ch�an resources ital d into providing services the present independent haulers outperform pertains to rolloff to quickly respond to the customer needs, and two • franchise haulers' one, in the ability off recycling rates. Loon Bins' 1 m the ability to far exceed their roll - debris) in Santa Clarita was 73% in 119 9 and our n rat (co�ction and demolition will be comparable to, or in excess of the 1999 diversiorate. ds (available 3-1-01) similar landfill diversion rates. At the Chamber legislative meeting Crown Disposal reports n January . Waste Management representative stated their rolloff diversiorate owas approximathe ely ly 5%. These rates are gravely inferior to the independent haulers who recycle. If you to choose to except staff's proposal you will Put out of business those who are in a position help you reach your 75% diversion rate. sans agreemet, as Pertaining to roll -off, is counter-productive to quality customer Delivery of rolloff containers from Waste Management Presently (and r1P� it' ta„wiax as Printed °n I N% Recycled Paper typically) takes three to five days. Whereas, independent competitors provides same day service to its customers. Construction companies and film production companies require and rely on same day service. I am personally well aware of needs in the film industry and know they will be outraged with any agreement that limits their ability to choose waste haulers. This change will greatly affect their production schedules and may force . Production companies to seek alternative locations. Representatives from Waste Management have argued in the past that the roads of S Ganta Clarita would incur less wear if their c°mpanY had exclusive franchise rights on roll -off business. For residential service this would be a true statement, however, itis totally incorrect for temporary roll -off service. Rolloff deliveries require one truck for each bin that is serviced. The number of haulers does not and will not affect the number of trucks on the streets or the amount of wear to city streets. We understand and appreciate the desire of city staff to increase and track recycling for roll -off containers. We believe that Santa Clarita and the businesses that provide roll -off services will be better served by a non-exclusive permit, having recycling and reporting requirementsothercities included. such Santa Varipus forms of permitting are Presently being used successfully Malibu, Thousand Oaks, Calabasas, West Hollywood, Glendale, Pasadena, and others. I will be contacting you this week to fiuther discuss this matter by appointment. Thank for taking time from you busy schedule to consider our blisten to our concerns. We ask you to please business interests when making your, decision. Recycling CC: Mayor Lauren Weste Council Member Joanne Darcy Council Member Frank Ferry Council Member Robert Keller. Council Member Cameron Smyth Jeffrey Lambert, Director of Planning George Caravello, City Manager Carl Newton, City Attorney Santa Clarita Signal Santa Clarita Daily News Princes on t00% Recycled p2W