Rancho Palos Verdes City Council
   

DECEMBER 20, 2005 ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2006 DECEMBER 20, 2005 ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2006 DECEMBER 20, 2005 ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2006

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: DECEMBER 20, 2005

SUBJECT: ANNUAL AGREEMENT RENEWAL FOR NON-EXCLUSIVE COMMERCIAL REFUSE COLLECTION AND DISPOSAL SERVICES- 2006

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATION

  1. Authorize the Mayor and the City Clerk to execute one-year non-exclusive commercial refuse collection and disposal services agreements with: Advanced Waste Systems, 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., Pizzo Masonry dba DP Rolloff Service, 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.
  2. Adopt Resolution No. 05-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES LIMITING THE NUMBER OF HAULERS AUTHORIZED TO PROVIDE SOLID WASTE COLLECTION AND RECYCLING SERVICES FROM COMMERCIAL PREMISES, AND ROLL OFF SERVICES TO RESIDENTIAL PREMISES IN THE CITY OF RANCHO PALOS VERDES IN CALENDAR YEAR 2006

BACKGROUND

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.

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 five (5) percent of gross receipts and an AB 939 fee of up to five (5) percent of gross receipts from haulers doing business in the City.

DISCUSSION

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. All haulers are required to submit payments on a quarterly basis along with a quarterly report, which provides refuse disposal and recycling tonnage information.

In 2005, the agreement for three haulers were rescinded due to delinquency in paying fees, not providing insurance certification, and/or not obtaining a business license(s). These three haulers are not included in this staff report and staff recommendation.

In December 2000, a five-year notice of non-extension was issued to all of the City's authorized non-exclusive commercial haulers. Therefore, the City Council could decide to implement any of the following options effective January 2006;

  1. Continue the City's current non-exclusive (unlimited) franchise agreements with various commercial haulers and accept new haulers in 2006; or
  2. Change to limited franchise agreements and limiting haulers to the 14 haulers authorized in 2005 (with valid agreements and in good standing) and not accept new or replacement haulers in 2006; or
  3. Change to a limited franchise agreement with select commercial haulers, i.e. change/reduce the current 14 hauler to a lower number (the number to be decided by the City Council). Some contracts would have to be terminated.

Staff recommends option #2. It maintains the same authorized haulers in 2006 as in 2005. No new or replacement hauler could be added in 2006. With the numbers not varying, it will be easier to monitor and control authorized haulers’ activities and reports, and identify illegal haulers in the City.

Option #3 will involve a slightly lengthy process. Council can choose option #1 or #2, while pursuing or considering the long term option #3 for 2007, or after.

The following matrix lists the advantages and disadvantages of the various options with a rating of high (H), medium (M) and low (L) given to help with the evaluation process.

COMMERCIAL HAULER RENEWAL OPTIONS

#

Options

Advantages

Disadvantages

1

Open, non-exclusive franchise

(continue with current haulers and open to new haulers in 2006)

o Many choices for residents (H)

o No changes needed, system currently in place (M)

o Can be implemented by January 2006 (L)

o Difficult monitoring various haulers and activities (H)

o Considerable administration time required to approve new contracts, managing various haulers, agreements, insurances, reports and fees, and (if needed) rescinding hauler agreements not meeting City requirements (H)

o Lack of hauler consistency, number of haulers vary each year (M)

o Delinquency issue with some smaller haulers (M)

2

Limited franchise (Limit to current number of haulers)

o More accurate tonnage information and reporting (H)

o Easier to educate the public, and inform residents of who are the authorized haulers (H)

o Easier monitoring of haulers (M)

o Most major haulers are already included and authorized (M)

o Reduced staff and administration time (M)

o No variation in list of haulers throughout the year (M)

o Easier to identify illegal haulers (M)

0 Can be implemented by January 2006 (L)

o Fewer choices for residents (H)

o Hauler not on list could complain (M)

3

Limited franchise with select haulers (reduce the number of authorized haulers by terminating some contracts)

o Same general advantages as Option #2, but more enhanced (H/M))

o Approved haulers might be more motivated to do new recycling programs since less competition (H)

o Same as Option #2 (H/M)

o Criteria would have to be set to determine how to reduce haulers. Should it be based on: a) volume of business in RPV, b) recycling activity, c) timeliness of reports, insurance, fees, d) company size, and e) other variation or a mixture (H)

o Can not be implemented by January 2006 (L)

Additionally, the City’s residential hauling contract can expire as early as June 2007. Staff is planning bringing a staff report to the January 2006 City Council, addressing the different residential contract renewal options. Council may then decide to include the commercial sector with the residential contract when it goes out to bid. Then both the residential and commercial sectors will be included in any future procurement process.

FISCAL IMPACT

The City received approximately $35,000 in franchise fees and $20,000 in AB 939 fees in FY 04-05 from commercial haulers. The different options will not impact the City fees. The City requires these fees from any revenue generating activity, regardless of which authorized hauler does it. 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:

Ray Holland, Interim Director of Public Works

Reviewed by:

Les Evans, City Manager

Attachment: Copy of Agreement

Resolution No. 05-____

RESOLUTION 2005- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES LIMITING THE NUMBER OF HAULERS AUTHORIZED TO PROVIDE SOLID WASTE COLLECTION AND RECYCLING SERVICES FROM COMMERCIAL PREMISES, AND ROLL OFF SERVICES TO RESIDENTIAL PREMISES IN THE CITY OF RANCHO PALOS VERDES IN CALENDAR YEAR 2006

WHEREAS, pursuant to Section 8.20.260 of the City of Rancho Palos Verdes Municipal Code, only those solid waste haulers who have entered into a collection agreement with the City may collect solid waste and recyclables from commercial premises, and roll off services to residential premises in the City; and

WHEREAS, fourteen solid waste haulers provided the required insurance coverage and documentation, quarterly reports and fees to the City, obtained valid business licenses and entered into valid annual agreements for the collection of solid waste and recyclables from commercial premises, and roll off services to residential premises in the City in calendar year 2005; and

WHEREAS, the fourteen authorized haulers providing solid waste collection and recycling services from commercial premises, and roll off services to residential premises in calendar year 2005 have been adequate and can satisfactorily continue to provide similar services in calendar year 2006; and

WHEREAS, to improve monitoring and reporting of commercial and roll off disposal and recycling tonnage, and public education activities;

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The City Council herby orders that only those solid waste haulers who entered into commercial collection agreements in calendar year 2005 are permitted to enter into such agreements in calendar year 2006. No other solid waste haulers will be authorized to collect solid waste and recyclables from commercial premises, and roll off services to residential premises in the City in calendar year 2006.

PASSED, APPROVED, AND ADOPTED THE 20th DAY OF DECEMBER, 2005.

___________________

ATTEST: MAYOR

___________________

CITY CLERK

State of California )

County of Los Angeles ) ss

City of Rancho Palos Verdes )

I, CAROLYNN PETRU, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005- ___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on December 20, 2005.

____________________________

CITY CLERK