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Home My WebLink AboutSS2 - Update on City's Residential Refuse Collection - PowerPoint1 fees November 24, 2020 Item No. SS2 RESIDENTIAL REFUSE COLLECTION Council Study Session November 24, 2020 •00• Solid Waste Management in the City The City has Various Agreements for Citywide Refuse Collection & Recycling Operations: Commercial & Industrial Businesses — Construction Project Demolition and Waste City — Beaches, Street Containers and Facilities — Residential Households Changing Laws Regarding Solid Waste Collection, Recycling and Disposal Past and near-term changes in State mandates are requiring adjustments to our refuse collection operations, as well as increasing program costs. AB 1826 AB 1594 �I :moi RRIV Will require all homes and businesses to recycle organic waste by Jan 1, 2022 0000 Mandatory Landfill AB 341 commercial alternative daily cover organics no longer AB 939 Mandatory recycling by considered commercial 2020; goal of diversion in 50% recycling recycling by 50% reduction 2020 requirement 2012; State in organics by 2000 or up goal of 75% disposal by to $10K/day diversion by 2020 fines 2020 �I :moi RRIV Will require all homes and businesses to recycle organic waste by Jan 1, 2022 0000 •••• Recycling - Where We Stand Today Overall Recycling (50% required by 2000) /_1:9'1'] Commercial Recycling (Goal of 75% diversion by 2020) AB 341 Commercial Organics (Goal of 50% reduction by 2020) AB 1826 Organic Recycling (Req. Residential by 2022) SB 1383 62% equivalent diversion rate (5.7 lbs. per person per day in 2019) 89% participation rate in 2019 45% participation rate in 2019 On Track to expand organics recycling to multi -family & residential properties • Source separation at the curb • Need to modify residential refuse contracts ✓ Municipal Code update ✓ Franchise Agreement update ✓ Compliance reporting • Enforcement ✓ Municipal Code update ✓ Franchise Agreement update • Compliance reporting • Enforcement • Need to modify residential refuse contracts • update Municipal Code Citywide Residential Refuse Collection Citywide Residential Refuse Collection is performed under 2 Separate Franchises, both with CR&R Inc. Newport City Newport Coast (inherited with annexation) 1 2 4 Mlles Santa Ana Heights has 2 -cart wet/dry residential service provided by CR&RFire Station x via Costa Mesa Sanitation District.� •Santa Ana Heights l� The City of Newport Beach residential '— refuse and recycling services provided Utilities Yard) by CR&R. Franchise expires O Corporation Yard March 31st, 2021 Fire Station 46 h up to 36 months of extensions. ank Farm Fire Station #3 Fire Station #2 Poke Station • Marina Park • Central Library 9 • Lincoln Elementary • • • Balboa Yacht Basin Community Center Balboa Fun Zone City Hall • mac— • Lawn Bowling Center Fire Station #8 i City Beaches •Oasis Senior Center • City facilities and city beaches are serviced by Fire Station #S various haulers. New ort Coast Residential Refuse Collection The contracts will be consolidated p - into one effective on 12/1/2019. Newport Coast refuse and recycling service • City Facilities rovided by CR&R. Franchise expires in 2022. City Beaches N Newport Coast Residential Refuse Santa Ana Heights W E City of Newport Beach 5 Citywide Residential Refuse Collection Current 2 -Cart Collection System • Blue -Lid Recycling Cart is processed at a `Clean' MRF* • Black -Lid Trash Cart is processed at a `Dirty' MRF • 27,038 Residential Accounts in the City ,r�-- • 73% of Total Households participating • Dry Recycle Diversion Rate: 43% *MRF — Material Recovery Facility Citywide Residential Refuse Collection Program Additions Needed to Accommodate Changes in State Law • City Must Now: • Implement Extensive Diversion Programs to Comply with AB 939 / SB 1383 • Maintain 50% Plus on Recycling Diversion Rate • Residents Must now `Source -Separate' their Green Waste and Food Waste into New Green Cart to comply with State Mandates included in SB 1383 • The City will realize Sizeable Cost Increases to Comply with Diversion Rates and Should also Explore Options to Help Off -Set Increased Cost 0000 Proposed Collection and Processing Modifications City Requested CR&R Pricing with the Following Program Parameters: • Require Blue Recycling Carts for all Households (need 7,329 new carts to complete the program). • Expand to 3 -Cart Program for All Households in City with New Green Organics Carts Note: CR&R no longer offers 2 -cart 'wet/dry' service configuration presented in the June 2020 Study Session and will Phase -Out all Dirty MRF operations • Increase Automation. Require All Refuse Material be Placed within Carts for Pick -Up. No more bags, boxes and other material left on the ground outside the carts. Proposed Collection/Processing Modifications City Requested CR&R Pricing for the Following Program Parameters: • Defined Bulky Item Collections to 5 Pick -Ups per Household per Year as Opposed to Unlimited Bulky Collections under Current System • 2 Full -Time CR&R Staff for 18 Months to provide Extensive Recycle and Organic Outreach including Door -to -Door Provision, and Required Contamination Monitoring • Limited `Free' Trash Carts to One 90 -gal per Household • Require 7 -Year Average Collection Vehicle Age, with No Vehicle Over 10 -Years Old 0660 9 Proposed New Waste Collection Cart System 3 -Cart Option • Blue Recycling Cart for clean recyclables processed at a clean MRF • Green Organics Cart for yard trimmings and food scraps processed at an organics processing facility. — Smaller green carts for space constrained property areas • Black Trash Cart for everything else (trash) sent to Landfill • Increase in Overall Residential Diversion Rate/ Full program implementation •00• 10 Overview of Preliminary Pricing Received from CUR • CR&R initially requested a 67% rate adjustment in October to implement this program, an increase of $3.3 million per year • CR&R's initially proposed program would increase the cost per household for providing service from $15.22 to $25.42 per month • City has reviewed CR&R's proposal and has identified potential cost saving areas and asked for proposal revisions • CR&R has made initial cost reductions in revised program pricing after several meetings with the City and its consultants • Additional reductions are contingent on development of cost reconciliation process to allow for `true up' process for currently uncertain cost factors 0660 0000 Contract Unknowns F • Per household contribution rate of organics • Productivity rates • expanded recycling route • number of households serviced per hour for new organics route, • reduced MSW route • Hourly operational costs and productivity for single -pass rear -loader in space constrained neighborhoods • Recoverability levels for recyclables collected on expanded recycling route and after extensive outreach Negotiations Options Moving Forward Estimated Cost Impact Alt. (Status as of 11/16/2020 Description Negotiation) No. Indicated Cost Percent Per Household Increase Continue negotiations without reconciliation 1 mechanisms in place assuming 8 to 10 year term $23.25 - 24.20 53-59% Continue negotiations with reconciliation 2 mechanisms in place assuming 8 to 10 year term $21.80 - 22.74 43-49% Continue negotiations for a 3 year contract to 3 accommodate roll-out of all program changes and Requires further Analysis develop base data to define next contract (negotiated CR&R or RFP) RFP ALTERNATIVE Prepare RFP for with contract start date of Oct 4 2021. Initial residential organics programs starts $21-$24.00 38-58% implementation during 10/21 0660 Comparison of Residential Organics 0000 Pro rams in OC City (RFP Date) Lake Forest (2013) Mission Viejo (2019) Mission Viejo (2019) San Juan Capistrano (2019) Tustin (2018) g Pre- Monthly Program Hauler program Rate Percent Processing Type Monthly 7/1/2020 Change Rate $16.76/ Compost/ 3 -cart CR&R $14.98 $17.30 12-15% AD 3 -cart CR&R $17.46 $23.68 36% AD 3 -cart WM $17.46 $23.30 29% AD 3 -cart CR&R $19.95 3 -cart CR&R $18.03 Newport Beach 3 -cart (proposed) OC Average - RFP COMPOST OC Average - RFP AD CR&R $15.22 $17.58 $17.58 $24.00 $18.40/ $19.72 $25.26 $21.08 $21.60 10% AD 2-9% Compost/ AD 68% Compost/ AD 21% 23 City's Options for Residential Refuse Service ➢ City Agreement with CR&R (excluding Newport Coast area) expires March 31, 2021. Agreement may be extended for up to 36 -months with 90 -days prior written notice (i.e. on or before Dec 31, 2020) ➢ City Agreement with CR&R for Newport Coast area could end on October 1, 2021 with 180 -day prior written notice, or will automatically renew for one more year ❑ Option 1: City extends CR&R's City Agreement to October 1, 2021 and continues negotiating for compliant residential collection program ❑ Option 2: City extends CR&R's City Agreement to October 1, 2021, continues to negotiate, and prepares Request For Proposals (RFP) to obtain competitive market -pricing for Residential Refuse Collection Service if necessary. ❑ Option 3: Other Direction as City Council Desires offs 15 •00• Discussion on Potential Exclusive Commercial Refuse Collection Zones Collection of Commercial Refuse within the City ➢ City Currently has 17 Non -Exclusive (open) Commercial Franchised Haulers ➢ Five are `Tier V Haulers who Collect Commercial and Multi -Family Trash, Recyclables, and Organics ➢ One Downside of an Open System is that often Multiple Hauler Service the Same Area, Leading to Excessive Truck Traffic that is Disruptive to Nearby Businesses, Residents and Adjacent Streets/Allies 0� er v Two Current Commercial Areas of Concern: Marine Ave - Balboa Island Corona del Mar Village Maps of Hauler Accounts *Note: Colors of pins not correspond with hauling company branding v Q Q Q� Corona del Mar Village Maps of Hauler Accounts *Note: Colors of pins not correspond with hauling company branding Alley Adjacent to Marine Ave. Balboa Island �i YI � 4f 1 r �aN L Time Rt 71 (Recycle 8:41 AM -a-49 AM -8 55 AM) Sat Rt 72 (8:01 AM) Republic Services p Thu Rt 71 (Recycle) Tue Rt 74 (Stinger) -�a NB—GiS Mon Rt 72 (9:03 AM Dahlia Aye - 9:09 AM Fifth Ave CRBR Route or w+xaos Fri Rt 72 (7:31 AM - 7:41 AM - 7:45 AM) Ware Daily Service Potential Resolution for Truck -Impacted Areas Exclusive Commercial Franchise Zones ➢ Establish Exclusive Commercial Franchise Zones where only One Franchised Hauler May Operate ➢ Targeted to Specific Areas, Blocks (i.e. CdM and Balboa Island) to Reduce Truck Traffic, Trips and Conflicts ➢ Bid out a 5 -to -7 -year Exclusive Franchises to Service these Specific Zones ➢ Remaining Areas of the City Would Remain `Open' ➢ Reduces Trucks, Truck Trips, Neighborhood Noise and Disruption, as well as Pedestrian and Vehicle Conflicts. •00• Exclusive Commercial Franchise Zones ❖ Request Straw Poll to Gage Interest in Concept •'• If Interested —Areas to Pursue: ➢ Marine Avenue? ➢ CdM Village Commercial Area? ➢ Other Areas? •00• •00• Questions Your Public Works Department Protecting and Providing Quality Public Improvements and Services Newport Beach (proposed) 3 -cart CUR $15.22 $25.26 68% Sample Comparison of Pricing for Residential Programs in OC COMPOST/ AD Pre-program Monthly Rate Percent City Program Type Hauler Processing Monthly Rate 7/1/2020 Change Aliso Viejo 3 -cart CR&R $16.60 $18.53 12% AD Costa Mesa 2 -cart CR&R $18.74 $20.05 7% AD Dana Point 3 -cart CR&R $16.03 $18.03 12% AD Lake Forest 3 -cart CR&R $14.98 $16.76/$17.30 12-15% Compost/AD Laguna Niguel 3 -cart CR&R $18.64 $23.97 29% AD Mission Viejo (CR&R Proposed 3 -cart CR&R $17.46 $23.30 36% AD 2022) Mission Viejo (WM) 3 -cart WM $17.46 $22.57 29% AD Orange 3 -cart CR&R $13.60 $17.65 30% AD Rancho Santa Margarita 3 -cart CR&R $14.93 $17.88 20% AD *San Clemente 3 -cart CR&R $20.31 $22.85 13% AD San Juan Capistrano 3 -cart CR&R $19.95 $24.00 10% AD Stanton 2 -cart CR&R $19.95 $19.95 0% AD Tustin 3 -cart CR&R $18.03 $18.40/$19.72 2-9% Compost/AD OC Average $17.84 $20.14 15% CUR Average $17.88 $19.91 14% Newport Beach (proposed) 3 -cart CUR $15.22 $25.26 68% Sample Comparison of Pricing for Residential Programs in OC COMPOST/ AD