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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
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.
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In 2005, the agreement for three haulers were rescinded due to delinquency in paying fees, not providing insurance certification, and/or not obtaining a business license(s).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;
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
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.
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.
Ray Holland, Interim Director of Public Works
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.
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.