HomeMy WebLinkAbout2001-02-13 - AGENDA REPORTS - STATUS RPT WASTE HAUL NEGOTIAT (2)UNFINISHED BUSINESS
DATE:
SUBJECT.-
DEPARTMENT:
UBJECT:
DEPARTMENT:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Appro,
Item to be presented
February 13, 2001
ORT ON
FRANCHIS DPSOLID WASTE HAULERSD NEGOTIATIONS WITH
Planning & Building Services
RECOMMENDED ACTION
Receive status report and provide direction to staff.
BACKGROUND
Pursuant to Council direction, City staff has negotiated with the franchised municipal solid
waste haulers to obtain service enhancements and a rate reduction/freeze similar to those
that could be achieved through re -bidding the franchise. Negotiations have been under way
for nine months - since April 2000. Currently, no agreement to the package of
modifications has been reached between all three franchised haulers and the City.
On November 14, 2000 staff provided an update
il on the status of the
negotiations that had taken place since April, 000. At that timeCouncCouncil directed staf tto
finalize negotiations and return o the Council when full agreement with all
reached, including agreement on the potential diaper recyclingen
ng
finalization of the independent studParties was
y and Council direction at the std session n diaper
recycling). On January 2, 2001 staff presented the results of the diaper
y session on diaper
the City Council at a study session. At that time, Council directed staff to work with the
haulers to determine 1) if the haulers could provide the Program recycling study to
City or residents, and 2) to identify P �� at no additional coat to the
implementing a diaper recycling the "cost," if any, to the negotiation package for
Y g program,
Staff then met with the haulers in January to conclude the negotiations, and was
unsuccessful in obtaining a modification package in which all parties were in agreement.
The following chart details the discussion points and the area in which negotiations broke
down and were unsuccessful:
DECEIVED Agenda item: tS"
Deal Point Clarita
ticias
Barrel Consolidat
1. Continue Residential rate freeze Dis osal
Di osal ed, Inc.
for 4 additional years, then have Agree
Agree Agree
ePPortunity to increase
annually for remainder of
contract at adjusted CPI
formula
2. Revise the terms of both the
residential and commercial Agree Agree Agre
franchises to coincide and
initiate a 4 -year fixed and 8 -
Year evergreen term (total of 12
years)
3. Modify the commercial
franchise to include both Agree Agree Agree
temporary and regular roll -off
services; haulers to indemnify
the City up to a level against
legal challenges (level not yet
determined)
4. Do not implement diaper
recycling program Agree Agree
g= until Agree
completion of a successful 6 -
month pilot program
5. All haulers are to present a plan Agree
to the City within 2 years to Agree Agree
build a MRF, and will be
operable in 4 years
Lift the recycling language in
the commercial agreement that
discourages price -based
competition for Atlas, and
define "new customer" for
applicability (Atlas proposal)
Agree
Agreement to item number four, diaper recycling, would have -cost -
implementation
of the commingled recycling program and the extension of the residential
rate freeze for an additional four ears, the City
noted that residential recycling increased between commingled pilot program, the haulers
Presents a significant believe and that the program
opportunity to increase residential diversion.
If staff and the haulers are unsuccessful in obtaini
Council may elect either to extend the residential fr chiselated agreementfiforlanang athen the
dditional
Year with no modifications or provide notice to the haulers and rebid the franchise in five
Years (at the end of theevergreen" term),
expected if no modifications Significant impacts on the community are
to the existing franchise agreements are obtained. In
Particular, the residential rate freeze will end on December 31 of this ear
the haulers to increase residential rates by as much
reflectingu Y , thus enabling
p to a $1.20 increase per month per household. Ina addition, it wilj be very
difficult for the City to reach its goal of 75% diversion by 2005 without the
modifications to both the residential and commercial franchise.
Proposed
Atlas Disposal contends that they will not sign any agreement without deal
six because the rest of the package provides little opportunity ,point number
their business in Santa Clarita. Atlas indicates that the fco btination to of continue
small
Percentage of the market share and the structure of the franchise agreement leave little
room for improving the position of their business in Santa Clarita. Atlas also desires to see
the current evergreen clause of the franchise agreements triggered, with both franchises
entering into a bidding process when the evergreen term expires. Blue Barrel Disposal and
Santa Clarita Disposal indicated that they would not agree to the package of modifications
if the City modifies the language in the commercial agreement to lift the recycling
language. Each of the three haulers has, however, agreed to the balance of the package
ALTERNATIVE ACTIONS
I. Direct staff to continue franchise modification discussions h the franchised refuse
it
haulers until a package is developed that is acceptable to with
�Ljl Parties vi
with direction, including Council priority, on specific areas in which to continue
negotiations and/or focus discussion efforts. Prode staff
2. Make no modifications to the residential franchise agreement and continue the
residential franchise for an additional year, thus forgoing many improvements that
have otherwise been agreed to as
Attachment pof the package of modifications. (please see
3. Direct staff too halt furtfor a listing of the Part
negotiated to date.)
her discussions and provide notice to the franchisees on the I
City's intent to re -bid the residential franchise at the conclusion of its term in five
Years (the new franchise to be effective in 2006). Ir
4. Other actions determined by the City Council. I
FISCFISC--SACT
i
I
No fiscal impact is anticipated at this time.
ATTA— C— HMENT—S I
Attachment A: Summaryt
of Negotiated Modifications
�:JF:agp:rh
SJEav a rvcs/Counc"/Sol Wa8te/&13 council franclvse update2.doc
C
Con_ traot
Enha— ement:
75% Diversion
Goal
(Section 26 C,
Exhibit C-01
item A)
Contract
Enhan—cement'
Term of the
Contract
SUMMAR,y OF NEGOTIATED MODIFICATIONS
February 13, 2001
—Auu
curection, the
City will
achieve 75% diversion by the Year 2005.
Segment of proposed language to read as follows:
"In addition, Grantee shall pursue good faith efforts to
cause at least seventy five percent (75%) of the waste
stream to be collected under this agreement to be
diverted from landfills or transformation facilities by
December 31, 2005. "
In addition to the above, haulers will continue to
meet all requirements ofAB939 including SRRE
comnlinnn.
The term of the franchise will be modified to a
four-year fixed term with an eight-year
evergreen for a total of 12 years.
ontract Proposedlan
guage wouldEnh—ane— event: equal 40% of the change
Dula to
in theBAng
Ac�justrrtent of Anaheim_Riverside CPI with
Rates
(Section 21B,
a cap of 2%les
Criteria will be established to determine if
haulers rate increase
Exhibit D-01)
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.
Contract
Enh—ance— inept:
Anew subsection B is Proposed to be added to
Section 22regarding
`4QMD Rule
1193 and
SCAQMD Rule 1193. The
proposed language would require
Other
indemnification of the City against an
fines associated with SCA Y Potential
Proposed
to fleet vehicles of the haul19a as it relates
Legislation
waste
(Section 22 B)
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.
..u. iracl;arttiy stated that the
lack of control over the roll -off
market makes it difficult to
achieve the 75% diversion goal.
4—users are resistant to using
re -refined oil in their fleet
because they fear it will negate
the warranties on their vehicles.
Haulers agreed to use re -refined
oil in vehicles without warrantee
conflicts. They stated that they
currently recycle their used oil.
.tract
Enhan--- cent'
City Only
Routes
(Section 5 A)
Enhancement:
Super*nd
Liability
(Section 26B)
ontract
Enh--cement:
Enhanced
Insurance
Liability
(Section 26
A proposed new subsection Q would be added to -�-
Section 5. The proposed Ian a Haulers already have a system
allow any single collection route hayed not to track this, but the City is
nside and outside the it s requesting quarterly reports of
addresses both i
franchise area. tonnage.
,+Y= language updates the franchise
Supeund liability language. Specific additions
include liability from disposal facilities not
owned or operated by the grantee. In addition to
updating Superfund language, the proposed
would require an annual meeting between the
haulers and City Staff to discuss ways to reduce
thea respective potential CERCLA and other
liabilities to third Parties.
Proposed language revises current franchise
insurancelanguage. Increases workers
compensation limit to $10 million aggregate, $5
Million auto insurance and $5 million per
occurrence and $20 million for general liability.
uaseu on the results of the commingled
Enh--moment: study, implement the program citde.
Comingled ywi
Recycling
(Section 5 Cl,
Enhancement: services to in lode• landscaping age would ce
greenwaste
Enhanced services would be able to place taeinr gardening
Gree ces material at the curb for collection as well• In
aste
Services addition, containerized wood/lumber would be
(Section 5 C1, included as an eligible material for collection.
Exhibit C-Ol) The requirement for 12 additional greenwast
ene
llo,.t;.. . --__u ,
went:
nua a new Subsection Cl to
Section 5 andlamend Subsections
Weekly
Weekly Bulk
Item
Ll and L2 of
Section 5. Language would require
Cnaoulddropoffs.
haulers to
collect one bulky waste item from the curb each
. The definition of "bulky
waste" will not
ge from the current franchise,
and the
ers will continue to be obligated to follow the
sal hierarchy defined
in the current
ment. The current requirement for
ction of two bulky
waste items each year
d be eliminated, as would drop offs.
language to haulers for their
review, concepttentatively
agreed to.
language to haulers for their
review, concept tentatively
agreed to.
-- ,,Luers are willing to add
material, specifically lumber, if
it fits in can, and if recycler will
accept it.
-••c uauiers agreed to have 4
bulky waste tags instead of two
tags per year.
Service
Enh—_cement:
Residential rates will remain frozen for an
additional 4 (ending
Rate Freeze
(Exhibit D-Ol)
years Decemr 31, 2005)
and will apply to all rates on Exhibit D-Ol (with
the exception of item D).
Service
Enhancement:
Proposal would add several sections to
Subsection K of Section
Enhanced
Public
5. Language includes
the requirement for the following enhancements
Education
to public education:
• Educational lids
(Section 5 Ki,
on recycling and
bins greenwaste
K2, M)
• Quarterly presentations to schools, and a
twice -yearly report to the City regarding the
effectiveness of the
presentations
• Quarterly presentations to multi -family
communities and a twice -yearly report to the
City regarding the effectiveness
of the
Presentations
• Development of public education materials
designed specifically for
multi -family
communities
• Rotating radio and television ads
• Production of a half-hour informational video
– make a new video at least every 2 to 3
years
e 'ce
Enhancement:
Multi -Family
Recycling
(Section 5 D2)
a'roposes a new Subsection D2 to Section 5.
Proposed language explicitly requires that all
multi-fara"Y Premises have recycling services
Provided. That all multi -family premises that do
not currently have recycling service will have
recycling services by July 1, 2001. The City will
grant exemptions to this in cases where
recycling service is not practical.
- «oposes a new Subsection C2 to Section 5.
E— anc–int: Proposed language would specify that those
Residential single family units using residential bin service
Bin Service must also have recycling service.
Recycling
the cost of a 15 minute video V
would be $15,000. The City
Proposes to have the haulers
split this cost based on market
share. A new video would be
created every 2 years.
Haulers agreed to conduct 2
school presentations per hauler
Per quarter. They would like
City Staff to be present. As
large an audience an possible is
desired.
Haulers will make a multi-
family recycling brochure and
after approval from the City it
will be distributed to all multi-
family units.
5/25/00: Video (Residential or we
can swap each time)
a.,r riauiers and City will work
together to enforce mandatory
recycling.
Haulers will be responsible for
Placing recycling decals on all
recycling bins in complexes.
Haulers will be responsible to
retrofit all decals to reflect any
additions made to the recycling
stream.
.nr. ivlcUarthy stated that
recycling bins are provided,
however due to lack of
enforcement, recycling is not
occurring in some areas.
K3
rules
Enh— an�cement:
Proposed language defines all types of recyclable
solid waste
Expanded
Types of
as eligible for collection. Haulers
will be required to collect all types of recyclables
Recyclables
and recycle any types of material they are able
to.
(Section 2 J)
compost.
Enh1111Piement a six-month pilot program as a
an— Cement: Partnership between the Haulers, Knowaste,
Dra1°er and the City. Upon a successful pilot,
Recycling implement thero
Service P gram citywide.
(Section b O)
�rrvice
E—cement:
Free
I The proposedlan
to Section b. Language image would add Subsection N
Compost
(Section 5 5D
te
where residentsould collect free compost 81The
facility would be operated
on Saturday's by
hauler staff. Each resident would be entitled to
two one -yard bags of
compost.
Service
Enhancement:
Self Haul
(Section 5 P)
Enhancement:
Senior
Senior Citizen
Discount
ontract
Enh— anccem_ent:
Notification of
Holiday
Schedule
(Section 5 G)
=+avers are willing to add
materials to the list of
recyclables as long as items
fit in cans and are accepted by
the recycler.
In the partnership, the haulers
are to provide collection services,
Knowaste is to install and
operate the processor, and the
City is to provide the location to
house the processor. Knowaste
has not agreed to partner on a
is was decided that a free
compost site would not be
productive for local businesses
that sell compost. (Free compost
will be provided at River Rally
and Arbor Day -Amendment.)
Haulers agreed to include
coupons for Cal Agromin's
Product in their mailings. (Not
of Section b. "" auu auoaection P Haulers did not o
The City is interested in phase as long
determining an effective system for proper waste tgas zts for self haul are
disposal for residents who wish to cancel their This is a mandatory
waste service.
The proposed language would define "senior requirement.
citizens" as those customers 65 and older.
rropoaed language would require haulers to
Provide notification of changes to the collection
schedule on billings statements immediately
Prior to all holidays.
this.
ervice
Enhancement:
B�g3
The proposed language
to Section 5. Proosland add Subsection Ds
language
Service
(Section 5 D2)
would define
what is included in ba Baggy service
will onlybe offered
in Multi-famil y communities.
Language is as follows: Bae—ice: Grantee
shall collect as many as two (2) 40_gallon trash bags of
solid waste per week Grantee shall provide all
residents with a single 34 -gallon bin for the disposal of
recyclable material. Service rates for baggy
desinnntod ;., ri L:L:. r , service are
yyn—Ct-.—.••••«... +ua�i'uilYll'ilYJ
The term of the franchise will be modified to a
Enhances ent• four -Year fixed term with an eight-year
Term of the evergreen for a total of 12 years.
Contract
, 4ggie service will change toto 65•
gallon automated bins for trash
at 75% of the Standard Fee rate.
All other services unchanged.
Baggie service is not allowed for
any new development. This
mostly involves mobile estates.
ntract Pursuant to City Council direction, the will S
Enh— anc�eme_nt: achieve 75% diversion by the year 2005. 'City re Residential Franchisi
75% Diversion Segment of proposed languagesection about 75% diversion.
Goal `7n addition, Grantee shall rrsue good faith effortO'los folloto.
(Section 6 E) cause at least seventy five percent (75%) of the waste
stream to be collected under this agreement to be
diverted from landfills or transformation facilities by
December 31, 2005. "
In addition to the above, haulers will continue to
meet all requirements of AB939 including SRRE
com liance.
Service SERVTCE'MMXCEMENTS
Proposed program would require haulers to
EnhEnh—went: assist with a commercial waste audit program.
Portion of $112,000 (services),
Waste Audit Haulers would assist in characterizations ofthe $45,000 toward waste audit.
Program waste streams of individual businesses as a Karl fine with 00. P 00, Matt
part
of the sales process. The goal of the programfine with $12,000. Pay monthly.
to increase commercial diversion through is
educating local businesses on how source
reduction and recycling can benefit the cost
Add tem r P
Po dry and et Permanent roll -off services
to the commercial franchise This modification Tlua it� added to assist in
will include compactor service. Haulers to meetin 75% diversion goal.
indemnify the City for legal challenges up to a
SDeciiiPri air.n,,..a r___
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