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HomeMy WebLinkAboutRCC AGENDA PK 1993/05/24MEMORANDUM DATE: May 19, 1993 T0: Resource Conservation Commission Members VIA: Doug Reid, Environmental Review Coordinator FROM: Athena Lee Bradley, Conservation Coordinator~~-3 RE: New Yard Waste Recycling Proposal Submitted by Laidlaw Waste Systems and Multi-family Recycling Franchise Agreement 1. Staff is submitting to Council a new yard waste proposal submitted by Laidlaw. This submittal is done in accordance with Ordinance 2427 as well as staff's feeling that the new proposal offers two compromise proposals worthy of Council's consideration. The Council Report (draft) and new Laidlaw yardwaste proposal are submitted here for your discussion and comments, in Attachment A. 2. At the March 22 RCC meeting, members unanimously (4-0-2 absent) supported staff's recommendations to Council regarding negotiating with Laidlaw a franchise for multi-family recycling services. Minutes of March 22 meeting are contained in Attachment B. The draft franchise aggrement is attached for your review, comment and discussion. Items within the franchise that are underlined are still being discussed with Laidlaw and the City Attorney, so these may be modified or removed in the final document. As always, feel free to contact me at 691-5122 if you have any immediate comments or questions. I look forward to meeting with you on May 24. month) with a correspondingly higher sticker price (i.e., $.40 per sticker). • Proposal Two: Laidlaw's new rate on the exclusively "pay as you ~~ go fee proposal remains at $1.00 per sticker, however, they agree to allow unlimited set-outs on the $1.00 sticker charge. Staff believes that this is laudable, however, would suggest a limit of 5 to 6 cans in order to prevent residents from "sharing" stickers. • Proposal Three: This is a modified request for service proposal similar to the pay-as-you-go option. A resident desiring to participate in the yardwaste recycling system will be supplied a 60-gallon container for a monthly fee of approximately $3.00 per month. This $3.00 fee would include the cost of weekly collection of yardwaste. Residents who do not need weekly collection could then purchase stickers at the $1.00 per sticker rate and would not be charged the $3.00 per month rate. • Proposal Four: Laidlaw continues to offer their original Universal Rate Charge of $2.00 per residence. This has not changed from Laidlaw's original proposal. In summary, staff felt that it was important to provide Council the opportunity to review Laidlaw's new proposal. FISCAL IMPACT: Costs associated with the proposed yardwaste recycling program will be individually determined and brought to Council prior to moving forward with program implementation. Service costs are expected to be borne by the user. <Rate Survey> 3 L3000O0© LAIDLAW WASTE SYSTEMS April 29, 1993 Ms. Athena Bradley Conservation Coordinator City of Chula Vista 270 F Street Chula Vista, CA 92010 Dear Athena, Residential Yard Waste This letter is to follow up on our recent discussions regarding collection of yard waste from single family residences in the City in accordance with the County Mandatory Recycling Ordinance. At the risk of repetition, Laidlaw's position on all recycling services is that they are part of the existing franchises and the City, to comply with their own Ordinance, are required to negotiate modifications of the franchise with Laidlaw prior to considering a request for bids from other contractors. We look forward to completing these negotiations to our mutual satisfaction. At the January 26 Council meeting, the Council's direction seemed to focus on a "Universal Rate Charge", rather than a variable rate structure and, I can confirm that our proposed initial monthly charge would be $2.00 per home. The City Council also questioned our variable rate proposal in that, if a home participated each week their monthly charge would be $4.33. In calculating the $1.00 per sticker charge, we assumed only 50% weekly participation and so the average charge per home would in fact be close to the $2.00/month. You had asked us to review this proposal and to confirm the volume covered by one sticker. Given the assumptions that we used, we believe that $1.00 is the correct charge per sticker. If we could prevent incidents such as neighbors combining their greens using one sticker, or a resident saving all his greens for one month before placing it out for collection, we would be prepared to collect an unlimited volume for the price of one sticker. Perhaps such a solution could be based on a two-tier system whereby Laidlaw would offer 60-gallon yard waste containers for a monthly rental fee which would include the cost of weekly collection. Residents who did not anticipate sufficient volume for weekly service would have the alternative of purchasing single use stickers. Recycled Paper 180 Otay Lakes Road, Suite 200 Bonita, California 91902 (619) 267 - 6900 A. Bradley April 29, 1993 Page 2 We would also offer the following compromise suggestion. A lower Universal Rate Charge to all residents, combined with a lower sticker price which would increase the cost to homeowners who most used the system. If you think that either of the above options would be of interest to staff and council, I would be pleased to meet with you very quickly to confirm specific price proposals for Council's consideration. The rates included in this letter are based on some favorable circumstances that are only available to us for a limited time. For this reason, the proposals contained herein are valid for the City's acceptance only until May 7, 1993. As always, I will be pleased to answer any questions that you have or provide any additional information. Sincerely, ~~ 1 ~/ ~% ~: // Alan J. Purees Market & Strategic Development Manager ~` ORDINANCE N0. ~~ AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING ORDINANCE NO. 1993, AS AMENDED, BY MODIFYING THE TERMS OF THE LAIDLAW WASTE SYSTEMS, INC. FRANCHISE TO REQUIRE COLLECTION OF RECYCLABLE MATERIALS FROM MULTI-FAMILY RESIDENCES WITHIN THE CITY OF CHULA VISTA AND TO RESELL SAID MATERIALS. The City Council of the City of Chula Vista does ordain as follows: SECTION 1: That Section 1 of Ordinance No. 1993, as has been amended from time to time, is hereby amended to read as follows: "Section 1. Definitions. Whenever in this ordinance the words or phrases hereinafter in this section defined are used, they shall have the respective meaning assigned to them in the following definitions (unless i the given instance, the context wherein they are used shall clearly import a different meaning): (a) "Grantee" ... RqF~ (e) "Exterior Recycling Containers" means (f) "Franchised Recyclables" means any Recyclables placed in Designated Recycling Containers placed at Designated Recycling Collection or Storage Location(s) to be collected by the Grantee. (g) "Interior Recycling Containers" means (6 gallon) to be used by each eligible residential customer (h) "Unit" means SECTION 2: That Section 2 of Ordinance No. 1993, as has been amended from time to time, is hereby amended to read as follows: " Section 2. Purpose. When codified, you can say the following to incorporate other definitions by reference: "Capitalized terms used herein not herein in this Chapter specifically defined shall have the meaning specially ascribed to them as set forth in Chapter 8.25." The franchise to collect and dispose of Refuse and to collect Residential Recyclables within the City of Chula Vista from Multi-family dwellings within the City of Chula Vista and to use for such purposes the public streets, ways and places within said City is hereby granted to Laidlaw Waste Systems, Inc. its successors and assigns." SECTION 3: That a new Section 22 is added to Ordinance No. 1993, as has been amended from time to time, which new Section 22 shall read as follows: " Section 22. Residential Multi-family Recycling Services Grantee shall provide Residential Recycling services to all Multi-family dwellings within the territory of the City as follows: A. Exclusivity - The City grants to Grantee the exclusive right to collect Recyclables deposited in Designated Recycling Containers (or alternatively, "Containers") located at Designated Recycling Collection or Storage Location(s) as may be iden- tified on each Multi-family residential parcel within the City. This grant of exclusive license is not intended and does not preclude duly licensed non-profit organizations and community groups from conducting recycling programs for the purpose of raising funds, nor does it preclude a person from selling or otherwise disposing of their own Recyclables. However, once materials have been placed in the Designated Recycling Containers provided by the Grantee, the material ("Franchised Recyclables") becomes one of the subject matters of this grant of franchise. B. Obligations of Grantee 1. Implementation Schedule Grantee shall implement this franchise as to not less than 10 multi-family parcels, without charge by July 1, 1993. Grantee shall thereafter commence and diligently implement this franchise Citywide through the summer and early fall so that all multi-family residential complexes in the City have Recycling Collection Service by October 1, 1993 in accordance to the City's mandatory recycling ordinance, Chapter 8.25. 2. Reporting Duties Z As required in Section < > for reporting purposes, the Grantee shall accurately report the number of customers serviced. Any increases to the number of customers shall be reflected by updated report accounting. 3. Collection - Grantee shall furnish said labor, services, mater- ials and equipment required to perform this franchise. Grantee shall collect and remove all Franchised Recyclables which are placed in Designated Recycling Containers at Designated Recycling Collection or Storage Locations, as defined by the City of Chula Vista Municipal Code Chapter 8.25, segregated from trash, separated by commodity as outlined herein, from all Multi-family residences. Grantee shall collect the Franchised Recyclables at least once each week and provided any additional collections as shall be necessary to prevent overflow of the Containers, regardless of weather conditions. Collection will be on regularly scheduled days as shall be arranged with the building property manager or owner. The Grantee and the City will mutually agree to any changes in collection schedule frequencies. Grantee will notify the building property manager of any changes in collection day(s) by written notification no later than two weeks prior to the affected day. Design of collection vehicles shall be done to limit the contamination of collected Recyclables. To ensure this, vehicles shall be separated into two (2) compartments--one for hard (commingled) Recyclables and one for newspapers. Any and all changes to the collection of Recyclables, as herein outlined shall be notified to the City in advance, including any changes in the way that Recyclables are collected (separated and/or commingled), design of vehicles, etc. 2. Containers - Grantee shall purchase and distribute Recycling Containers, to include the following: a. Interior Recycling Containers. Appropriate containers to be used inside the residence, 6 gallon size to be used by each eligible residential customer included in the program. The type and cost of container to be used, or changes of container type shall be approved by the City prior to purchase and distribution. Grantee shall retain ownership of the containers. Replacement of containers that are ger household up to existina stock held by Contractor (20 percent of all containers needed for Citvwide collection). Grantee will be responsible for keeping records and making them available to the City regarding additional containers requested, and the reason for the request, e.g., damaged, stolen, needed to handle residence recyclables beyond capacity of one container, etc. <alternative>: If a residence needs an additional container(s) beyond the maximum of two allowed, or has had more than one damaged and/or stolen, they may purchase additional containers from the Grantee at a cost not to exceed < > per container. Also, once the Grantee has used the existing container stock, residents will be required to purchase any additional containers as noted above, regardless of the need for the container. b. Exterior Recycling Containers. Appropriate containers to be placed at each Multi-family complex so that said Exterior Recycling Containers meet the space restraints and collection needs of the respective complex and the residents therein. Said containers may include 90 gallon carts on wheels, 2 cubic yard bin or 3 cubic yard bin. Each container shall conform to the following: slots in lids for placement of beverage containers (circular holes of appropriate sizes) and newspaper (narrow slots of appropriate size); be made of recycled plastic content; be fire resistent; be of durable quality and warranty; be heat stamped or labeled for commodity; be clearly labeled on the lids and the front facing of the bin, in Spanish and English (with graphics) as to the Designated Recyclable (s) and "No Trash"; be clearly labeled with the Grantee's name and phone number. Grantee agrees to dedicate at least one Exterior Recycling Container per complex to commingled hard recyclables and one Exterior Recycling Container for newspapers. To the extent possible, Exterior Recycling Containers will be required to be placed adjacent to or near the refuse collection containers. 3. Transportation and Marketing of Recyclables - Grantee shall transport collected Recyclables to a central collection and processing point and shall retain responsibility for the sale of such materials in a timely and efficient manner, so as to yield the highest possible market value for the Recyclables. No Recyclables shall be landfilled, unless approved by City. Should market failure occur for one or more material types, only the City Manager of the City of Chula Vista may decide not to collect the affected material. All written Contracts, if any, with processors, recyclers or other buyers of Recyclables shall be submitted to the City. 4. Missed Pick-ups - In case of missed pick-up called in by a property manager, owner or resident, Grantee shall, where possible, provide collection within 24 hours. If unable to accommodate due to inadequate notice, the Recyclables shall be pick up on the next scheduled collection day and the property manager is to be notified. If the Designated Recycling Containers are overflowing, the Grantee is required to provide collection within 48 hours of notification of missed pick-up. Information on missed pick-ups shall be logged by Grantee and shall be available to the City. 5. Public Awareness Program - The parties hereto agree to work diligently to formulate promotional plans and/or advertising to encourage recycling in the City and thereby maximize the mutual benefits of this Agreement. The Grantee, in conjunction with the City, is responsible for promotion, education and outreach activities related to the Program. The Grantee will prepare an Introductory Packet of information regarding the Citywide Multi- family Recycling Program and will distribute such packet with the Interior Recycling Containers to each eligible residence. The packet shall include, but not be limited to: a) an informational notice, appropriate for hanging on refrigerator or other location indoors, that details all program elements, Recyclables to be collected, how residents can participate, use of the Interior Recycling Container, proper placement of Recyclables in Exterior Recycling Containers, the City's mandatory recycling ordinance and recycling hotline phone number; b) posters that can be placed in complex laundry rooms, pool areas and other public locations that explain the program, materials to be collected, description of program elements the City's mandatory recycling ordinance and recycling hotline phone number. All promotional materials shall be developed with the City's Conservation Coordinator's or other designated City employee's advise and consultation, from the first step in development, through the final printing and distribution of materials. No '~ materials shall be developed or distributed without the approval of the Conservation Coordinator or other designated City employee. All Introductory Materials shall be fully translated into Spanish, unless otherwise approved by the City. All subsequent materials shall be fully or at least partially translated into Spanish, unless otherwise approved by the City. All program materials shall utilize graphic representation of Designated Recyclables. The Grantee shall provide to the City a detailed outline of program promotional materials to be developed and outreach activities to be conducted in advance of program implementation. The Grantee will participate in community and school outreach activities during the pilot phase of program implementation and provide ongoing outreach activities, to include, but limited to multi-family tenant and owner associations, community events, media events, make presentations to community groups and businesses on an as needed basis and as directed by the City, and attend County-wide meetings related to recycling, speaking on the City's Multi-family Recycling Program if needed and directed by the City. The Grantee also agrees to assist in developing incentives to increase participation and tonnage collected, and to encourage involvement of community and youth groups. The Grantee and the City agree that the main purpose of an aggressive public education program is to increase participation and diversion, as well as limiting contamination of Recyclables. Beginning in the second year, if, in the City's judgement, it is reasonably determined that the public education effort has not resulted in high enough Program interest, the Grantee will perform reasonable public education activities at the City's direction at a cost not to exceed $.10 of the monthly billing. If needed, as determined by he Grantee and the City, the Grantee will develop incentives to increase participation, such as, offering rewards for complexes that have high participation levels and high tonnage levels. The Grantee agrees to provide technical assistance to property owners/managers and to work with the City in said providing technical assistance to property owners/managers in design and implementation of program. The Grantee agrees to work with the City to provide ongoing Program monitoring services and quality control to prevent ice' contamination of materials and encourage participation to property managers, to include on- site visitations, as deemed necessary by the Grantee and/or the City. The Grantee will provide to the City a quarterly accounting of all outreach activities conducted during the previous quarter. The Grantee will also provide an accurate accounting of all costs associated with all Program outreach, to include, but not limited to, costs for designing of outreach materials, printing of outreach materials, etc. 6. Local Manager - The Grantee agrees to provide, at a minimum, one (1), half-time person directly assigned to the Multi-family Recycling Program, whose duties are to include: promotional material development and distribution; program monitoring (including on-site visitations); educational outreach to school children; community outreach. 7. Anti-scavenging - The Grantee agrees to provide information to all property manager's regarding the City's anti-scavenging ordinance, what information about scavengers is needed in order to enforce said ordinance, and how to report scavenging occurrences. The Grantee agrees to inform all of its employees of the City's anti-scavenging ordinance on a regular basis and how said employees shall report scavenging occurrences. C. Obligations of the City - The City shall have lead responsibility for directing the development and expenditures of the Public Awareness Program as provided in paragraph B. (5) The City also agrees to take such steps as may be reasonably necessary to protect the Recyclables placed in the Designated Recycling Collection or Storage Containers placed for in the Designated Recycling Collection Location(s) for collection by Grantee under the terms of this Agreement and shall reasonably enforce the City's anti-scavenging ordinance (No. 2492). D. Funding and Rates for Collection 1. Funding Sources - The Residential Multi-family Recycling Program will be funded by four sources: a monthly recycling fee to all eligible residents (to be billed to the property manager or resident, as with refuse billings); revenues from the sale of collected recyclable material; savings in disposal cost of material diverted from the landfill; grant funds when available and awarded. a. A monthly recycling fee charged to eligible residents is the primary source of funding for this Program. In general, it will be allocated equally among the customer base receiving said recycling service and will be determined by the Grantee's operating expenses directly attributable to the recycling program, less: revenue received from the sale of the collected Recyclables, the savings realized in disposal costs of material diverted from the landfill, and application of grant funds. Specific fee information is outlined in paragraph D. (2) below. b. All collected Recyclables will be sold at fair market value and revenues obtained from such sales shall be retained by Grantee as an offset against operating expenses. The fair market value of Recyclables shall be the highest price commonly paid by purchasers of such materials in and around the San Diego County area at the time of sale. The City shall be noticed of significant changes in fair market values in writing as part of the quarterly reporting requirements. c. Recyclables collected in the Program will be diverted from disposal in the landfill, thereby resulting in a cost savings to the Grantee ("Landfill Diversion Credit'). On a monthly basis, Grantee will determine the recycled material tonnage collected and the resulting Landfill Diversion Credit and will credit this savings during the first year of operation as an offset against operating expenses. When reevaluating program costs in subsequent years, the City agrees to consider Landfill Diversion Credits of less than 100 percent. The amount will be subject to negotiation and the intent is to provide an economic incentive for the Grantee towards increased participation and program success. d. A grant funds received will be applied to the costs of the program when award is noticed or during the next rate review procedure if the award takes place once a specific rate has been determined, with the intent of directly reducing the monthly fee to the homeowner. 2. Rates for Collection - it is the City's intent to ensure that the rates charged to the citizens t~ for the Multi-family Recycling Program are appropriate and equitable. Bases on experience gained in the Single-family Recycling Program and other Multi-family Recycling Programs, the recycling fee for the first period of operations will be $1.50 per Unit per month, billed quarterly in the same manner as the refuse collection fee. The monthly fee of $1.50 per unit will be the established fee for the period of July 1, 1993 through July 1, 1994. Specific rate review procedures will be prepared by the City and will be used with the concurrence of the Grantee in consideration of all requests for rate adjustments by the Grantee. Rate review will include adjustments for actual sale of Recyclables and Landfill Diversion Credits in previous period compared to original estimated amounts. Shortfalls or overages will be used in determining rates for upcoming periods. Rate review will be conducted annually beginning in January 194, and will be concluded prior to the notification deadline for the 45 day notice of the annual CPI increase for refuse collection as referenced in Section 9 of the Franchise as amended by Ordinance No. 2104, Rates for Collection. An increase in rates for Multi- family Recycling services will be subject to the same limitations and conditions for refuse collection rates listed in Section 9. <senior/low income discount> C. Record Keeping and Reports - Grantee agrees to accurately record collection data sufficient to comply with the reporting requirements delineated below and shall file with the City written quarterly and annual reports of Grantee's performance under this agreement as follows; 1. Quarterly Program Reports - Within ten (10) working days after the last day of each quarter, Grantee shall submit a quarterly Program report to include, but not be limited to the following: a. Summaries of all revenues, operating expenses, and tonnage of all Recyclables recovered, by material. b. Summaries of tonnages of all Recyclables sold, by material and including a revenue statement of all sales of Recyclables from the Program broken down by material. c. Market price for all Recyclables collected i~ from the Multi-family Recycling Program and sold by the Grantee and/or its processor assignee. The weight receipts and market value for material at the time sold shall be available for inspection by the City. d. Total number of customers served in Program and resident participation rates in terms of overall complex participation. e. Discussion of problems and noteworthy experiences in the Program operation, to include specifically contamination occurrences, listed by complex. Grantee agrees to monitor each complex at least once per year in order to accurately reflect participation by complex residents, contamination problems, other problems and access need for additional public outreach activities. f. Report of all education and community outreach efforts conducted during the quarter. g. Overall assessment of performance during the quarter. h. Recommendations to increase tonnage of recyclable materials recovered. 2. Annual Report - On or before July 31 of each year of the term of this agreement, Grantee shall submit a fiscal year-end annual report to include, but not be limited to the following: a. A collated summary of the information contained the quarterly reports and a summary of the participation rates and tonnages of recovered Recyclables. b. Discussion of problems and noteworthy experiences in the Program operation, measures taken to resolve problems, increase efficiency and household participation. Number of complaints listed by type of complaint, i.e., missed pick-up, quality of service, etc. that occurred during the year. c. Report of all education and community outreach efforts conducted during the year and their impact on participation and recovered tonnages. d. Overall assessment of performance during the L~ year. e. Recommendations to increase tonnage of recyclable materials recovered. f. Additional information as necessary to meet State and/or Federal mandated reporting requirements. F. Performance Standards - This Agreement for Residential Multi-family Recycling services is subject to the performance standards and franchise conditions detailed in Section 14 Forfeiture of the franchise (ordinance No. 1993). While it is the intent of Section 22 to describe specific Multi- family Recycling collection services to be provided by the Grantee in addition to existing refuse collection and disposal services, Grantee agrees that acceptable performance of recycling services will be considered severable from this agreement. G_ Additional Franchise Fee - The Grantee as part of H. Performance Standards - The following performance standards shall be met by the Grantee in the completion of this agreement. The Grantee's performance will be reviewed on a monthly, quarterly and annual basis in conjunction with the Grantee's submittal of required reports for those time periods and general performance observations. Should the Grantee fail to meet the performance standards on a quarterly or annual basis, the Conservation Coordinator or other designated City staff will meet with the Grantee to determine the cause of the discrepancy and recommend corrective action. Should the Grantee continue to fail to meet the performance standards after receiving direction for corrective action, this may serve as the Grantee to increase charges in order to "pass through" the cost of the franchise fee. grounds for termination of this agreement. Every effort must be made by the Grantee to maintain high levels of participation in order to reach the City's established diversion goals and assist in meeting the diversion standards set out in Assembly Bill 939 and the City and County's Mandatory Recycling Ordinances. I. Term - it is the intent of the City that the term for the provision of Residential Multi-family Recycling Services shall be to the year 2002, subject to a two year notice of cancellation by the City without cause which cannot be tendered sooner than the end of the third year. The services remain cancelable for cause at any time. SECTION 3: This ordinance shall take effect and be in full force and effect on the thirtieth day from and after its adoption. Presented by Approved as to form by Athena Lee Bradley Conservation Coordinator Bruce M. Boogaard City Attorney