Rancho Palos Verdes City Council
   

DECEMBER 21, 2004 ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2005 DECEMBER 21, 2004 ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2005

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: DECEMBER 21, 2004

SUBJECT: ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2005

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATION

Authorize the Mayor and the City Clerk to execute one-year non-exclusive commercial refuse collection and disposal services agreements with: Ace Roll Off Rubbish Service, Inc., BFI Waste Systems of North America, Inc., California Waste Services, CalMet Services, Inc., Consolidated Disposal Service, LLC, Easy Roll Off Services, EDCO Disposal Corporation, JJK Roll-offs, Inc., S & H Disposal Company, United Pacific Waste & Recycling Services, Universal Waste Systems, Inc., and USA Waste of California dba Waste Management and West Coast Waste & Roll off Service.

BACKGROUND AND DISCUSSION

Since 1992 the City has entered into one-year non-exclusive franchises for Commercial Refuse Collection and Disposal with any firm that meets the agreement requirements. These haulers provide bins to businesses for on-going business activities, and roll off dumpsters to residential and non-residential customers during construction, demolition, cleanup and remodeling activities. The number of authorized haulers varies slightly each year depending on economic conditions and availability of customers in the area, and mergers or acquisitions of smaller hauling companies with larger ones.

All haulers are required to submit payments on a quarterly basis along with a quarterly report, which provides refuse disposal and recycling information. Additionally, each hauler is required to annually obtain a City business license and submit proof of general liability, workers compensation insurance and endorse the City as additionally insured.

The non-exclusive franchise allows the City to collect a franchise fee of 5% of gross receipts and an AB 939 fee of up to five (5) percent of gross receipts from haulers doing business in the City. Since January 2001, haulers have been entitled to a reduction in their AB 939 fees if they show receipts of solid waste tonnage diverted from landfills to recycling or material recovery facilities. The goal is to encourage haulers by providing a financial incentive to recycle construction, demolition, remodeling and business waste such as dirt, concrete, asphalt, cardboard, etc.

In December 2000, a five-year notice of non-extension was issued to all of the City's authorized non-exclusive commercial haulers. Therefore, by or after December 2005, the City Council may decide to:

  1. Continue the City's current non-exclusive (unlimited) franchise agreements with various commercial haulers; or
  2. Change to an exclusive franchise agreement with a limited number of commercial haulers (the number to be decided by the City Council).

One of the benefits of reducing the number of haulers is more accurate disposal reporting, better monitoring, and implementing better recycling programs or goals in the commercial/non-residential sector. Staff is currently preparing a staff report for an upcoming City Council meeting addressing this issue and discussing the different options available to the Council.

FISCAL IMPACT

The City received approximately $30,000 in franchise fees and $25,000 in AB 939 fees in FY 03-04 from commercial haulers. AB 939 fees are deposited in the Waste Reduction Fund and are used to develop and implement recycling programs to meet the AB 939 mandate. Franchise fees and late submittal penalties are deposited in the General Fund.

Respectfully Submitted:

Dean E. Allison, Director of Public Works

Reviewed by:

Les Evans, City Manager

Attachment: Copy of Agreement