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HomeMy WebLinkAbout2005-11-22 - AGENDA REPORTS - BURRTEC ANNUAL REVIEW (2)Agenda Item: 3 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Travis Lange DATE: November 22, 2005 SUBJECT: BURRTEC'S ANNUAL PERFORMANCE REVIEW DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council to direct staff to continue working with Burrtec in; (1) identifying alternative locations for a Materials Recovery Facility (MRH (2) the siting and construction of a MRF, and (3) implementing programs to increase the City's commercial diversion rate to achieve 25 percent diversion in their waste stream for the 2006 calendar year. BACKGROUND Pursuant to Article 7 of the "Agreement Between City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services" (Franchise Agreement), the City may hold an annual Solid Waste Services and Performance Review Hearing. The purpose of the hearings are to give the City an opportunity to discuss and review the services provided by Burrtec. The topics that may be reviewed include, but are not limited to, the regulatory, technological, and economic facets of solid waste, recycling, source reduction, and disposal. Topics suggested by the Franchise Agreement include services provided, feasibility of providing new services, application of new technologies, customer complaints, amendments to the agreement, development in the law, new initiatives for meeting or exceeding AB 939's goals, regulatory constraints, and company performance. Staff has compiled information for said categories in order to provide the Council with sufficient information to gauge Burrtec's performance. Services Provided. Currently, Burrtec provides exclusive commercial collection services for the City of Santa Clarita, excluding approximately 109 businesses that currently subscribe to permanent roll -off bin collection services. In accordance with the Commercial Franchise Agreement, Burrtec provides containers ranging in size from 32 gallons to six cubic yards. To assist the City with its diversion efforts, Burrtec is required to provide free recycling services and greenwaste collection services at a discounted rate. Burrtec is also required to provide mixed -waste processing services for approximately one half of its clients. This requires Burrtec to create separate routes to collect cleaner waste, rich in paper and cardboard, for processing at a Materials Recovery Facility (MRF) located in Sun Valley. They collect other waste from locations that contain insufficient or contaminated recyclables (such as restaurant waste) on a separate route. To complement Buirtec's waste diversion efforts, they are required to have a full time employee trained to visit local businesses and to assist the businesses in establishing a recycling program. There have been issues that have required significant follow-up from the City that should be considered when evaluating Bumec's performance and the services they provide. The issues are as follows: • Select Load Mixed Waste Processing - As mentioned, per Section 4.2.2 of the Franchise Agreement, Burrtec must provide select load mixed waste processing for at least 50 to 65 percent of all loads they collect. As of August 1, 2005, Bumec has indicated they are sending 50 percent or more of their loads for mixed waste processing. Although Burrtec is now sending the full amount for processing, as required by the Franchise Agreement, the recovery rate for the materials is approximately 12 percent, when the Franchise Agreement requires 50 to 55 percent. Burrtec is working with the MRF they are currently utilizing to increase the recovery rate and, according to them, once the City MRF has been completed and is up and running, the recovery rate for the program will be at the required amount. • Street Litter Abatement Program - Per Section 4.1.10, Burrtec must provide the City with one collection vehicle and eight man-hours per month for assistance with litter abatement. Burrtec did not immediately implement the program when services in the City first began. After discussing the program with City staff, Burrtec provided a service schedule to City staff for street litter abatement. In addition, Burrtec agreed to make up previously scheduled abatement days in areas selected by the City. As of the end of October, Burrtec has provided almost 130 man-hours and has collected over 45 cubic yards of litter at several different locations throughout the City. • Burrtec Website - Per Section 5.3.3, Burrtec must have a web site page dedicated to services provided in the City. The Burrtec website was not up and running when Burrtec's Franchise Agreement was first in effect, but it is now in operation and has a page with information tailored specifically to its Santa Clarita operations. • Alternative Fueled Vehicles - Per the First Amendment to the Franchise Agreement (Section 4.4.2.B), Burrtec is to implement the use of alternative fueled vehicles by October 15, 2005. Burrtec supplied City Staff with purchase orders for eight alternative fueled vehicles to demonstrate its efforts to be in compliance with the requirement. The first two completed vehicles were delivered during the week of September 5, 2005. Burrtec converted its entire fleet to alternative fueled vehicles by the October 15 deadline. Materials Recovery Facility (MRF) - Per the First Amendment to the Franchise Agreement (Section 4.2.7), Burrtec must break ground for the MRF within six months after a decision has been made by the Appellate Court for the Gate King project (the proposed site for the MRF). The hearing for the appeal occurred on September 29, 2005, and the Court of Appeal made a decision on November 2, 2005; therefore, Bumec's new deadline is May 2, 2006. The opinion from the Court of Appeals stated the water supply section of the project's EIR was inadequate. Staff estimates a revision of the section will take approximately six months to complete. Staff will be working closely with Burrtec to ensure they break ground and begin construction of the MRF as soon as possible. This project went before the Planning Commission on October 18, 2005, and was approved for a Conditional Use Permit. Although the location was in litigation at the time, Burrtec took the MRF to the Planning Commission and had the MRF approved for a Conditional Use Permit in order to expedite the process once the issue has been resolved. Considering the current situation with the proposed site, staff is also encouraging Bumec to explore other potential sites for the MRF. Feasibility of Providing New Services. Staff has been working with Burrtec on the implementation of enhanced outreach programs in order to increase the number of local businesses that recycle. Burrtec's efforts include the following: • Conducting lunch and learn meetings in conjunction with the Santa Clarita Chamber of Commerce. • Enhanced site visits to work one-on-one with local businesses to assist them with creating customized recycling programs. • The preparation of a new, fully updated brochure to encourage businesses to divert waste and to outline the services provided by Burrtec. Beyond the outreach programs, City staff recommends that the Council encourage Burrtec to continue with its efforts to site and build a MRF in the City. The MRF was required by the Franchise Agreement, but due to constraints being placed on the originally proposed site, and a litigation issue related to the more recently proposed site, the deadline for siting and building the MRF has been extended. Staff believes once a local MRF has been constructed, Burrtec will be better equipped to divert more waste and to implement new, effective programs. Application of New Technologies. Originally, to comply with Section 4.4.2 which requires the use of alternative fueled vehicles, Burrtec purchased eight liquefied natural gas (LNG) vehicles. Due to constraints imposed on Burrtec and the proposed site for setting -up a fueling infrastructure, Burrtec was not able to use the vehicles for providing collection services. Considering the constraints that Burrtec had to face with the use of alternative fueled vehicles, the City Council granted Burrtec an extension until October 15, 2005, to comply with the requirement of the Franchise Agreement. Recently, to remedy the issue and to comply with the Franchise Agreement, Burrtec has moved forward with the purchase of eight compressed natural gas (CNG) fueled vehicles. Although most haulers prefer the use of LNG vehicles, Burrtec purchased the CNG fueled vehicles to take advantage of the availability of CNG fuel in the City. Burrtec was able to convert its entire fleet to alternative fuels prior to the deadline. Burrtec will also apply new, innovative, technologies in its proposed Materials Recovery Facility (MRF). Although construction has not yet begun on the MRF, Burrtec has discussed some of the technologies that will be used for the MRF with City staff. Among the new and innovative equipment that will be used to separate commodities for recycling will be separation equipment which will utilize an optical sensor to detect different types of materials and specialized blowers that will propel the materials into the appropriate bins. Staff recommends that Council direct Bumec to continue with their efforts in siting and constructing a state of the art MRF in the City. Customer Complaints. During its first year of performing services for the City, a total of 19 complaints logged by City staff were related to Burrtec. Of the 19 complaints, seven were about the services rendered by Burrtec, six were regarding missed collections, three for billing issues, two for customer service issues, and one regarding disposal issues. A greater proportion of the complaints received by the City (six of the 19) were received during their first two months of providing services. Staff anticipated such problems since Burrtec had to compile service information for thousands of customers, and from one day to the next had to start providing services for all of them. Staff believed that it was to be expected that some miscommunications would occur and as a result, some local businesses would end up not receiving the services that they normally would expect. In all of the complaint situations, Burrtec: was very responsive to the complaints and cooperative with the City in finding a resolution to the problem. Amendments to the Franchise Agreement. Since the commencement date for the Franchise Agreement, the Council has added one amendment to the Franchise which affected two sections of the Agreement, extending the deadlines for two separate programs. The first section of the Franchise Agreement that was affected by the amendment was Section 4.2.7, which applied to the siting and construction of a MRF in the City. Originally, Burrtec was required to break ground for the MRF on April 15, 2005, and was to complete construction by February 15, 2006. Due to several issues with the original site identified by Burrtec for the MRF, and a pending litigation issue with the Gate King Development, the most recently proposed site, Council granted Burrtec an extension on both deadlines. The new deadline for breaking ground is six months following the day a decision has been made by the Court of Appeal for the Gate King litigation issue, and ten months following the said date for completing the construction of the facility. On November 2, 2005, the Court of Appeal ruled that the EIR prepared for the Gate -King Project was adequate in dealing with oak trees, endangered species and the ridgeline; but it was inadequate in its description of water availability. As a result, the deadline for breaking ground is now May 2, 2006, and the deadline for completing construction is March 2, 2007. Since the revised EIR will take approximately six months, staff will work closely with Burrtec in expediting the siting and construction of the MRF, and will also encourage Burrtec to continue looking for alternative sites in order to stay within its deadlines in case the issues at the Gate King project cannot be resolved. The next section affected by the amendment was Section 4.4.2.B of the Franchise Agreement, which required the use of alternative fueled vehicles. Some of the changes were made to update the section with changes in local air quality laws, removing references to the South Coast Air Quality Management Districts (SCAQMD), and instead referencing the California Air Resources Board, United States Environmental Protection Agency, and all federal, state, and local laws and regulations. This change was done in response to a court decision overruling some SCAQMD requirements stating that it interfered with federal regulations. The primary reason for the amendment to the section was to extend the deadline for the use of the vehicles. As previously mentioned, originally Burrtec intended to use LNG vehicles, but due to outside agency concerns with the siting of a temporary fueling site, Burrtec had to find a different method to comply with the alternative fueled vehicles requirement. Therefore, the Council granted Burrtec an extension for compliance with the requirement from the commencement date of the franchise (August 1, 2004) to October 15, 2005. Developments in the Law. There are several laws that have been passed, or are in the works, relating to solid waste and recycling issues. Staff has identified a few key regulations that may be of concern in the implementation of programs by the franchised haulers. 1. SCAQMD Proposed Rule 410 - The proposed rule is in its early planning stages, but if passed, will place odor control requirements on MRFs and Transfer Stations. Staff does not anticipate the rule having a significant impact on the City's proposed MRF since the City is already requiring odor mitigation measures on the MRF. 2. SB 411 - Currently, many jurisdictions send their greenwaste to landfills to be used as alternative daily cover (ADC), the required daily cover put over landfilled waste as a vector control measure. Currently, ADC counts as diversion although the material does end up in a landfill. This proposed bill will require the CIWMB to prepare a schedule for excluding greenwaste and wood waste, used as ADC, from counting toward a jurisdictions compliance with AB 939. The City's Franchise Agreement, as it is currently written, only permits Burrtec to direct the City's greenwaste as ADC as a last resort for diversion. Burrtec is not currently using the City's greenwaste as ADC. 3. SB 420 and SB 928 - Although these proposed regulations are different, they are both intended to increase the diversion requirements of AB 939 beyond 50 percent. SB 928 would require jurisdictions to divert an unspecified amount by 2011. SB 420 would require jurisdictions to divert 75 percent of their waste by 2015. Although the City's overall goal is to divert 75 percent of its waste, it currently is not in compliance with the 50 percent diversion requirement of AB 939. If either of the proposed regulations pass, the City may need to explore additional programs with the hauler to come into compliance with the new diversion requirements. 4. CIWMB Proposed Alternative Compliance Measurement Methods - On August 31, 2005, the CIWMB conducted a workshop in Long Beach, California, to discuss a proposed alternative means of measuring compliance with AB 939. Rather than measure compliance through program evaluation and a complicated diversion calculation system, the CIWMB is considering measuring compliance by placing disposal goals on a county as a whole (not on individual cities). They would also evaluate an individual jurisdictions' efforts in implementing diversion programs. Staff will continue to monitor the proposed changes. New Initiative for Meeting or Exceeding AB 939's Goals. Staff is not aware of any new initiative from the State or County to meet or exceed the goals of AB 939. The City continues to participate in the State's Recycling Market Development Zone (RMDZ) program, and recently had its membership renewed until October 2015. Through the program, the State provides low interest loans to businesses attempting to create a market for recycled materials. The City, in its capacity as an RMDZ zone, provides assistance to local businesses, or new businesses that wish to obtain the loan. This creates an initiative for recycling as businesses that apply for and receive the loans then contribute to the local demand for recyclables, making it easier and more convenient to recycle. Recently, the City has also implemented new programs to encourage additional diversion. The City passed a construction and demolition debris recycling ordinance to encourage the recycling of waste materials generated at construction and renovation projects. The City is also in the process of creating a franchise system for roll -off box and temporary bin providers to encourage recycling through a large sector of the City's waste stream. Additionally, as previously mentioned, the City has partnered with Burrtec in providing additional outreach to local businesses to help encourage the businesses to recycle. Regulatory Constraints. During the first year of providing services in the City, regulatory constraints encountered by Burrtec affected their operations. As previously stated, although Burrtec had already purchased LNG trucks for use in the City, current regulations did not allow for a temporary LNG fueling station, and Burrtec was unable to use the new vehicles. This created significant delays in Burrtec's efforts to commence the use of alternative fueled vehicles. Another regulatory constraint that affected Burrtec's performance was the constraints encountered by Burrtec with the first location they identified for siting and constructing a MRF. Late in the process of siting the MRF, the Public Utilities Commission wrote a letter to the City stating they would not support Burrtec's request for the railroad crossing required to access the site and recommended that Burrtec find an alternative location. This created a significant delay in Burrtec's efforts to site and construct the MRF, and caused the need for them to seek an amendment to extend their deadline. Company Performance. Overall, Burrtec has been effective in providing services to the City and working to increase the City's diversion. Since beginning services in the City, Burrtec has increased the number of commercial recycling customers in the City from 375, when they first began providing services on August 1, 2004, to 557 in September of this year, which is approximately a 49 percent increase. Burrtec's staff has also been very cooperative with the City, especially in setting up free services for the City. The Franchise Agreement does not have diversion requirements for Burrtec at the present time. Beginning with their second full calendar year in the City, which begins in January 2006, Burrtec will be required to divert at least 25 percent of all of the waste they collect, and 50 percent for all subsequent years. The City will continue to closely monitor Burrtec's diversion efforts and will ensure that Burrtec diverts at least 25 percent of the waste that it generates for 2006, and 50 percent for all subsequent years. Burrtec Report to the City Pursuant to the Franchise Agreement, Burrtec is allowed to prepare and submit a report to the City in preparation of its performance hearing. According to the Franchise Agreement, the report may contain the following three topics, although Burrtec is permitted to provide more information as it sees fit: Current diversion rates and a report on its outreach efforts for the past year. Recommended changes and/or new services to improve the City's ability to meet the goals of AB 939, and to contain costs and minimize impacts on rates. Any specific plans for provision of changed or new service by Burrtec. The report has been attached for Council's review. ALTERNATIVE ACTIONS Other action as determined by City Council FISCAL IMPACT None by this action. ATTACHMENTS Burrtec Report to the City K OF WASTE INDUSTRIES, INC. "We'll Take Care Of It" October 31, 2005 Mr. Travis Lange City of Santa Clarita 23920 Valencia Blvd Santa Clarita, CA 91355 Dear Travis: This past year has been filled with a variety of challenges for Burrtec and the City of Santa Clarita during the transition of a new commercial solid waste collection contract. Through our combined efforts we have successfully addressed program implementation, regulatory compliance and hurdles surrounding our MRF development. Our on-going communication with City staff and the City's business community has kept us informed and prepared to handle the issues at hand. In response to the performance requirements outlined in Article 7 of the Commercial Solid Waste Management Services Agreement between the City of Santa Clarita and Burrtec Waste Industries we have prepared the following report to be considered as part of the solid waste services and performance review hearing. Burrtec appreciates the opportunity to serve the City of Santa Clarita as we strive to provide the utmost in solid waste collection services now and in the future. Please contact me if there are any questions or if additional information is needed (Santa Clarita/Perbrmance Review -10.31-05) 9890 Cherry Ave • Fontana, California 92335 •909-429-4200 • FAX 909-429-4290 DIVERSION RATE SUMMARY Commercial waste diversion has steadily increased over the past year through on-site recycling programs, select load processing and customer education. Many businesses are taking advantage of the recycling bins offered at no charge giving them equal or greater disposal capacity and the opportunity to reduce costs. Those businesses that cannot or will not recycle at their location may be part of the select load program. This program identifies bins filled with dry trash that contain many recyclables. These bins are collected on a separate load and sent to a materials recovery facility for processing. CITY OF SANTA CLARITA Month Tons Generated Tons Processed Tons Diverted % Diversion Aug -04 3,388.38 179.82 141.95 4.19% Sep -04 3,561.32 223.84 180.34 5.06% Oct -04 3,741.96 249.42 199.69 5.34% Nov -04 3,640.37 270.83 216.66 5.95% Dec -04 3,695.20 275.61 249.23 6.74% Jan -05 3,882.12 283.98 233.74 6.02% Feb -05 3,652.20 293.75 235.00 6.43% Mar -05 4,224.24 331.08 271.58 6.43% Apr -05 3,830.22 259.95 208.97 5.46% May -05 3,968.38 289.57 234.67 5.91% Jun -05 4,220.41 440.11 245.98 5.83% Jul -05 4,061.84 823.11 313.09 7.71% Aug -05 5,006.18 2,454.57 499.50 9.98% Sep -05 4,337.57 2,077.03 459.75 10.60% GROSS DIVERSION 3,000 2,500 2,000 N Mt Z 1,500 O IJ 1,000 �� Vol 500 ie Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep - 04 04 04 04 04 05 05 05 05 05 05 05 05 05 MONTH }�'ui° }.N S� ". i✓t� "`""�-.f n .?+i� wA x R,:,Y sgsr x 1�i '%4'' 'ice£ tT a x .1 Y . �t PS �� }x "ntt` `• l� i`Si" k� y£i ! �1 a vai.. y".^.'e r+l�*i Vi ,' � �' C �3 �� � bl �� � �r.�JFa)F -r`PP� �r5 �L 4 � �'. y �4L� ijx�} ly'��54 � Y�A t�3 �. ✓ l5, V': d Yf f ha�i RTi 4s �� \LL n .0 g $2 F B` A 1 M 4 i� PVNS i>:-Im� �£ii� a,�' � 4� �'�4`i FF '.t Ski T � ��F 4 } y�"'�v; Atli �K L'F(i+rl �+ki k ♦Fye �''e S. 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SCr�i lIX1 ttk� t Fp t V if Y` 1 �tA• a4� °7h { � � ���n A t" ,a Yy. 1 li�'a'a17° P�+N�{a+� � "p—t'S'}">,, a 4��P i to yt y t � i'a ,YN t `i trs YI,t b!A i R \ E� 114w1 V1vf4 l 0k ut a lt�x f � � e5 tk i' Y 3 � � fk4�T x Y ifd ° AL `ii- 1^YA�i 'rt \}'4r]x� Su AS 5 � C• g x '_ Ji k i r N� 4s � ra F "hb{ 7a`3 ^� r5i,�ix} Pr as w .s v £` ei {{,,� h u t rs fib.. t ! ;• 8 W? �i '�y'n YAe i tl �4 ,M' 3 �4;. aY P', I' i ✓S'- .�< i s!" in ��f yyd� ��e r X fPt 1 ;l Ay, 4k,'. �k i3 a X �''� � Tia—" @✓ ��. t �a'Y,. � - 3d �3 i +�,' I J � i u i 9 rs d ki n x P v°_ 1•_ £, Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep - 04 04 04 04 04 05 05 05 05 05 05 05 05 05 Month OUTREACH EFFORTS Burrtec has implemented an aggressive outreach program through customer on- site visits, mailings and publications, community workshops, tradeshows and chamber events. These outreach activities are identified in the report submitted to the City each quarter. The following is a summary of some of this past year's activities. Month Action May 2004 The Foundation for Children's Dental Health Sponsorship July 2004 0 of July Parade Santa Clarita Chamber Activities August 2004 Child & Family Center Golf Tournament SCV Historical Society Sponsorship Santa Clarita Rotary Activities Santa Clarita Chamber Activities Valley Industrial Association Activities City and Chamber Environmental Meeting Commercial Waste Audits September 2004 Commercial Waste Audits October 2004 River Rally Sponsor Santa Clarita Chamber Expo Santa Clarita Chamber Activities Commercial Waste Audits November 2004 Hart Music Booster Sponsorship Valley Industrial Association Activities Santa Clarita Chamber Activities Commercial Waste Audits December 2004 Santa Clarita Builders Christmas Ball Santa Clarita Chamber Activities Valley Industrial Association Activities Commercial Waste Audits January 2005 Santa Clarita Chamber Activities Valley Industrial Association Activities Santa Clarita Chamber Environmental Committee Commercial Waste Audits Month Action February 2005 Santa Clarita Chamber Activities Valley Industrial Association Activities Santa Clarita Chamber Environmental Committee Commercial Waste Audits March 2005 Santa Clarita Chamber Activities Valley Industrial Association Activities Santa Clarita Chamber Environmental Committee Commercial Waste Audits April 2005 YMCA Golf Tournament Valley Industrial Association Activities Santa Clarita Chamber Activities Santa Clarita Chamber Environmental Committee Commercial Waste Audits May 2005 Santa Clarita Chamber Activities Valley Industrial Association Activities Santa Clarita Chamber Environmental Committee Commercial Waste Audits June 2005 Boys & Girls Club Auction Oak Leaf Golf Tournament Santa Clarita Chamber Activities Valley Industrial Association Activities Santa Clarita Chamber Environmental Committee Commercial Waste Audits July 2005 Valley Industrial Association Activities Santa Clarita Chamber Activities Commercial Waste Audits August 2005 Old Town Newhall Association Sponsorship Santa Clarita Chamber Activities Valley Industrial Association Activities Santa Clarita Chamber Environmental Meeting Commercial Waste Audits September 2005 Adler Public Affairs Sponsorship Veterans Historical Plaza Flagpole Donation Old Town Newhall Association Sponsorship Valley Industrial Association Activities Santa Clarita Chamber Activities Santa Clarita Chamber Home and Business Expo RECOMMENDED CHANGES/SERVICE ENHANCEMENTS The City of Santa Clarita has developed a very comprehensive solid waste service agreement that includes extensive service requirements. These services are geared toward achieving the goals of AB939. Through the City's new commercial solid waste agreement, rates have been lowered and stabilized for a two-year period of time. At this time our recommendation is to maximize the current programs offered while we await the completion of the Santa Clarita Materials Recovery Facility. With this facility in operation, new and improved diversion programs will be available that may or may not have potential rate impacts. SPECIFIC PLAN FOR CHANGED OR NEW SERVICES Annually, throughout the term of this agreement, the City and Burrtec will be reviewing service changes and/or new service programs. This process will assist in evaluating, program efficiencies, industry improvements or discoveries, increased diversion and cost saving procedures. Our plan for this coming year is to achieve the highest level of diversion possible from the current service programs and materials processing. New opportunities will present themselves with the opening of the Material Recovery Facility.