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Home My WebLink AboutSS4 - Solid Waste Franchise Agreements - PowerPointJuly 12, 2016 Item No. SS4 Solid Waste Franchise Agreements for Commercial and Construction/Demolition Waste Municipal Operations Department July 12, 2016 Today's Topics: Overview and pros/cons of our current non- exclusive solid waste franchises, which expire in March 2017 Changes in State law affecting solid waste services Potential alternative franchise system for the future Current Collection System Non-exclusive franchise system In place since 1997 All franchises issued between 2007 and 2015; all have an end date of March 1, 2017 Current Collection System 33 Haulers 8 collect commercial bins on regular schedule 25 haulers are roll off/demolition contractors performing specific jobs in the city Approximately half of the haulers work in the city at least quarterly Responsibilities of Franchised Haulers Requirement to recycle 55% of the collected material Payment of franchise fees equaling 16% of revenues collected in solid waste operations in the City (10.5% to General Fund, 5.5% to Environmental Liability Fund), generating over $1.6 million annually How are we doing in meeting our State waste reduction mandate? Our State -mandated disposal goal: 9.6 lbs./person/day 2014 Newport Beach disposal rate: 6.7 lbs./person/day (over 107,000 tons/year landfilled) 2009: 5.5 lbs./person/day during recession 2007: 7.8 lbs./person/day Benefits from the Current System Open Competition - Businesses can shop with multiple companies for the level of service at the lowest cost Franchised haulers are required to dump waste in OC Landfills; in return, they get a preferred tipping rate of $32.36/ton vs. the posted rate of $56.90/ton Downsides to Our Current System Multiple waste trucks service commercial bins in tight areas (Balboa Island, Newport and Balboa Pier areas, Corona del Mar) Administrative burden to track and verify the activities of 33 haulers for State reports State Requirements - Mandatory Commercial Recycles Since 2012, commercial businesses generating over 4 cubic yards of waste/week and multi- family complexes of five or more units are required to have a recycling program in place Most haulers meet this requirement by using mixed waste processing at a materials recovery facility (MRF) State Requirements - Mandatory Commercial Recycles The State now requires the City to compile statistics by category and document how the requirement is met at each business location in the City. Even though haulers are required to provide the data, it is difficult to get the information from them. State Requirements - Mandatory Organics Diversion AB 1826 passed in 2014, requires businesses generating a specific amount of organic waste to divert this waste stream starting in 2016. As of April 1, businesses generating over 8 cubic yards/week of organics must have a recycling program in place. These businesses include full service hotels, large restaurants, golf courses, grocery stores, and Hoag Hospital. State Requirements - Mandatory Organics Diversion As of January 1, 2017, businesses generating more than 4 cubic yards of organic waste/week will need to have a program in place. This will include the majority of the 400+ restaurants in the city. Haulers will be required to provide these services and report information back to staff. State Requirements - Mandatory Organics Diversion The solid waste industry is still developing ways to deal with this waste stream. Different processes include: Reuse - Donation of excess food to food pantries, homeless shelters State Requirements - Mandatory Organics Diversion Anaerobic digestion - Anaerobic digesters use the material to produce biogas, which generate electric power or fuel CNG vehicles Composting landscape waste to make mulch What does this mean for city staff, haulers, and businesses? State regulations will continue to change and the solid waste industry will need to invest in equipment/technology to process new waste streams. Haulers will be required to do more public education to ensure participation in these programs. What does this mean for city staff, haulers, and businesses? The City will be required to ensure each multi- family complex and business had appropriate programs for dry waste and organics. MOD staff will work with OCA to evaluate our refuse ordinance to make sure we have the necessary enforcement tools (which may also be included in new franchise language). Moving from Open/Non-Exclusive to Exclusive or Limited Franchise(s) Many cities moving from open franchises to closed systems due to similar challenges we experience (multiple trucks in confined areas, difficult to manage multiple haulers, new State regulations) For instance, in 2011, City of LA gave notice of its intent to move to an exclusive franchise system. In 2017, 11 separate districts will be serviced by separate franchisees. Moving from Open/Non-Exclusive to Exclusive or Limited Franchises) The City could consider creating one or two districts and issuing exclusive franchises while leaving open competition in other areas (predominantly north of Coast Highway) It would solve the issue of multiple collection vehicles in confined areas, and those companies would have economies of scale to develop comprehensive recycling/diversion programs District 1 District Residential Commercia Mixed-use Fo0 1.360 3.666 seal /may �� I '`,. �, ,,ter, �,, ,, �, � `�-� V 'i ti, � 1 _ �• r' , alEffik J�4 - ,F sir _ r \/�•f Jf,r -�'-_ _ T. �r� f`�. j �A'a A-� .fes aw.wic � 5 • � til' •lk RB ISR �~ r L= IS GA.VQl P� IP ` NAS I�f` +r f 3 - -- '0 i, rrr.c - NLW'PDII i BEACH Proposed Commercial Construction/Demolition i Solid' Waste District Map `';r�GIS �I,!-,_ � June 09, 2016 Reduction of Franchises and State Law Per Section 49520 of the Public Resources Code, a local agency has to give a 5 year notice to reduce the number of franchise. Consequently, the soonest this could occur would be 2021. Our Action Items Over Next 6-9 Months Educate haulers and the public on the requirement for organics diversion Review City ordinances for applicability to new solid waste requirements and amend as necessary Develop a plan and process for renewal of solid waste franchises in 2017 Seeking City Council Direction Is it appropriate to issue a 5 year notice of our (possible) intention to limit solid waste franchises now?