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HomeMy WebLinkAboutRCC AGENDA 1991/09/17tC 3. Fwd :r ~ ~~ COUNCIL AGENDA STATEMENT Item_ Meeting Date 9 17 91 ITEM TITLE: Report Regarding Proposed Commercial and Multi-Family Recycling Programs in the City of Chula Vista and Resolving of Request for Proposals Issue. Resolution Approving Grant Application for San Diego County's Recycling Technical Assistance Program and Authorizing Matching Funds. SUBMITTED BY: Athena Lee Bradley, Conservation Coordinator REVIEWED BY: City Manager (4/5ths Vote: Yes X No_) Council Referral # BACKGROUND This report brings to Council a recommendation for contracting of recycling services for the City. It will also describe three comprehensive commercial and industrial recycling projects planned in the City for FY 1991-92 for which City Council support and funding allocation is requested in regard to County grant program. As Council is aware three driving forces, the California Integrated Waste Management Act of 1989 (AB 939), the new County Mandatory Recycling Ordinance, and diminishing landfill space are bringing about changes in the way the City approaches solid waste management. On April 26, 1990, the City Council of Chula Vista adopted a policy on recycling and integrated waste management which establishes a wastestream diversion goal of 30 percent by 1992. In February, curbside recycling service was expanded to atl single family residences in the City; in July, a multi-material office recycling program was established for almost 600 City employees. At this time no formalized commercial, industrial, and yardwaste (greens) recycling programs exist in the City. To allow staff to move ahead on these recycling programs, the issue of contract(s) for these services must be resolved. As directed by Council, staff recommendations for contracting of these services are brought together in this report. Additionally, the County of San Die o, through its Recycling Technical Assistance Program (TAP), has made available $525,000 during this funding cycle to promote commercial and industrial recycling programs, facilities, and activities. Last year, the City was awarded a grant from the TAP program of $15,000 to implement the Model Office Recycling Program. It is the intent of staff to coordinate and expand upon commercial and industrial recycling activities in Chula Vista if awarded funding from a proposed Technical Assistance Grant. The following projects are to be developed: 1) Office Recycling Project; 2) Service and Hospitality Recycling Project; and 3) Industrial Recycling Project and Materials Exchange Bank. See Attachment A for a complete description of the proposed projects. RECOMMENDATION: That Council: 1. Approve Resolution. 2. Allocate funds as requested. 3. Direct staff to develop permit and contract applications and request for proposals, as outlined in the Report. BOARDS/COMMISSIONS RECOMMENDATION: The Resource Conservation Commission reviewed these issues at their September 9th, 1991 meeting. Comments are attached. DISCUSSION: Staff proposes the following permit/contractual processes in order to allow for the comprehensive, integrated development of services to meet the City's commercial, multi-family, and yardwaste source reduction, recycling, and composting needs. 1. Commercial Recycling Staff recommends that the City allow for an open process for recycling services whereby all haulers interested in offering recycling services in the City must obtain a permit from the City. City staff will provide each hauler with specific permit application guidelines, requirements, reporting forms, permit fee information, and other pertinent materials as attachments to the permit application form. Applicants would submit a conceptual outline of the types of services they intend to offer and the approximate rate structure for these services. (See, Attachment B for partial list.) All submitted permit applications will be weighed on an established point system. (See, Attachment C for sample.) An annual, "permit processing and monitoring fee", similar to a "franchise fee," would be charged to each hauler based upon the number of service permits held. For example, permitted collectors could be required to report the gross (or net) receipts from recycling operations within the City and pay a fixed percentage from these revenues. Incentives, such as discounted fees, could be given to those collectors offering services for collection of "hard to collect/market" commodities (e.g., restaurant glass) and/or to smaller, lower volume generators. The amount of permits issued at any one time would be at minimum five and at maximum ten (i.e., five-to-ten separate haulers). This would allow full monitoring by City staff, while still providing for competition. Additionally, if desired, the City could regulate company profits to a set margin, therefore allowing for competition, but also a level of regulation to control collection fees. An annual report (including tonnages collected by material type and volume) to be filed by each permitted hauler would also allow for monitoring of recycling activities in the City as required under AB 939. Permits would be staggered so that staff is not reviewing all permit allocations at any one time. Permits would be granted for a period of two years, with two, one-year extensions to be granted upon favorable completion of the service during the initial two year period. All permit applicants would be bonded by the City. Each permitted hauler would be required to arrange for their own respective billing service requirements, and to bill the establishments receiving services, directly. Customer service would also be handled by the permitted haulers. City staff will be developing information and public relations materials on recycling to be distributed to area businesses and industries. Information relating specifically to the permitted hauler's recycling collection system will be the responsibility of that hauler. Justification: This type of contractual arrangement would allow for open, competition within the City for commercial recycling services. Businesses would be free to receive the type of service that best meets their needs, while becoming a part of the City's comprehensive Commercial and Industrial Recycling Program. Permit registration and limitation of the number of permits granted at any one time, will allow the City to track these services, as well as bring in revenue to cover staff monitoring time and program development. The permit application form, and related materials will be brought to Council sometime early next year. Permit applications would be issued shortly thereafter. 2. Multi-family Recycling Staff recommends that recycling collection services for multi-family residences be developed through a "service area" recycling contract arrangement. These "service area's" would be derived from established geographical areas (e.g., North, South, East, West), and clearly defined. Through a request for proposal's (RFP) process, staff would accept proposals from haulers to service all multi- family dwellings within a service area. (Staff will estimate the number of dwellings within each proposed service areas in order to ensure that the areas are reasonably close in size and of a scale to allow for hauler efficiencies.) The "service area" concept would be described in the RFP, however, all proposals would be required to be "generic" for all areas. Staff would then "assign" a service area to each respective contractor, based on assessed service area characteristics and corresponding contractor abilities. Each awarded service area contractor would pay a "contract fee" to cover staff costs for monitoring and program development (perhaps a percentage of gross receipts). In order to establish a level of service uniformity throughout the City, a "baseline" of service requirements (e.g., specified materials, weekly collection days, service hotline, etc.), and all permit requirements will be fully outlined in the RFP. Each awarded contractor would be required to provide educational materials, containers, collection vehicles and other equipment, and establish their own billing and customer services. City staff would closely monitor (and approve) the recycling services, billing fees, and public information materials. Each contractor would be required to submit an annual report on tonnages collected within the service area, as required by AB 939. Contracts would be for four (4) years, with two (2)-one (1) year extensions based upon satisfactory service. Justification: The concept of "service areas" would allow for a level of competition in multi-family recycling services, while providing the City with the ability to closely monitor services, by service area. Competition in service provision and rates between areas would occur due to the City's flexibility in awarding contracts for relatively short durations of time. Additionally, "contract fees" could be relatively easily assessed. Multi-family rate payers while benefiting from the service and cost competition between area service providers, would receive uniform services, rates, and billing requirements within their respective service area. Ongoing review of rate structures for each service area would allow for rate control measures to be established, if desired (e.g., a ceiling based on gross receipts). The RFP and related materials will be brought to Council sometime early next year. Contracted service providers would be required to submit plans for phased- in services to all multi-family dwellings within the service area by the July 1993 enforcement date under the County's Mandatory Recycling Ordinance. 3. Greens Recycling Staff proposes that residents be given several options for the diversion of yardwaste from the landfill. Residents would "sign up" for one of the following greens recycling programs: 1) Curbside Collection of Greens--weekly or biweekly service for an established fee (probably around $2.00 per month); 2) Backyard Composting--residents would purchase a compost bin (or designate a composting area), and sign-up to receive a composting instruction manual and/or training session; 3) Self-Haul--residents take all green materials to a composting site, or to the landfill for mulching; or 4) No Greens--residents would sign a form stating that they do not have yard waste. Under the County Mandatory Recycling Ordinance, the City will need to develop a plan for yardwaste recycling to be implemented City-wide by January, 1993. Through this proposal, the City would devise a method of enforcement allowing for residents to sign up for yardwaste recycling, as described above. Residents that do not comply would face penalties as established by the Mandatory Recycling Ordinance. Because yardwaste is over 17 percent of the City's wastestream, this method of accounting and diversion would assist the City in meeting the AB 939, 25 percent diversion goal by 1995. The specific services required for single-family curbside greens collection are best met by a single contractual award to an eligible hauler. This would allow for economies of scale in terms of collection and marketing of materials, uniformity of services and rates, less vehicles in neighborhoods, and easy monitoring. It will need to be decided whether the City will handle the "sign- up mechanism in-house, or whether this would be contracted under the greens hauler as part of a "comprehensive" yardwaste recycling program. City staff is already developing a generic "how to" guide for composting, and will develop additional materials for yardwaste diversion, as well. Collection services for multi-family dwellings that do not receive curbside collection of refuse could also work under a "sign-up" system between the property management and the City (or its contracted greens hauler). Basically, multi-family dwellings could sign-up to have their yardwaste materials hauled by the contracted greens hauler, or the dwelling could require its landscapers to transport the yardwaste to a compost facility or the landfill for mulching. Again, allowing for at least some degree of flexibility in the services. Staff will bring the RFP for yardwaste collection to Council in November. A backyard composting pilot project will be brought to Council in October. The sign-up mechanism and services would be designed for phased development in order to meet the timeline established by the Mandatory Recycling Ordinance. FISCAL IMPACT: It is required under the County's Technical Assistance Grant Program that matching funds of 50 percent be allocated for any proposed project. At least 25 percent of these funds must be in the form of cash or capital outlays ("hard match"). Staff is requesting that Council allocate $4,000 as a "hard match." Funds for this allocation are available from monies received from the County Solid Waste Enterprise Fund in Fiscal Year 1990-91 and encumbered for use this fiscal year. As designated by the County, all such Enterprise Funds must be utilized for recycling or composting programs. The "soft match" will be in the form of staff work on the proposed project (10 percent of the Conservation Coordinator's time). Costs associated with the permitting and contracting for the proposed commercial, multi-family, and greens recycling programs will be brought to Council at the time of the RFP for each program. As with similar programs, costs would more than likely be included in the fees charged to ratepayers, however, staff time and associated costs for program development and implementation will need to be discussed and allocated.