AGREEMENT FOR SOLID WASTE AND RECYCLABLES COLLECTION,
PROCESSING AND DISPOSAL SERVICES

 

Recommendation: 

1. That the City Council approve the agreement (note: Agreement is a PDF document.) to provide Solid Waste and Recycables Collection, Processing and Disposal Services with Consolidated Disposal Services, a subsidiary of Republic Services, Inc., effective October 1, 2001, and continuing through September 30, 2008.

2. That the City Council determine the implementation approach, public information and public hearing process.

Background:

The City initiated the solid waste procurement process in April 2001, with the approval of the Request for Proposals and draft contract by the City Council. Notices were sent to firms that were in this business and those that had requested to be on the City’s procurement list. A total of six (6) proposals were returned by the deadline. City staff and an outside consultant, Solid Waste Solutions, reviewed all six (6) proposals. Following the review and evaluation of each of the proposals, four (4) companies with the most complete proposals were invited to participate in an interview/evaluation of their proposal with the City’s team. The results of the interview/evaluation were that the City had received good proposals all of the companies. The best proposal with all issues considered was Consolidated Disposal Services.

Consolidated Disposal Services was selected as the company to enter into negotiations with as they provided best overall opportunity to reach an agreement meeting all of the City’s interests at the best price for service. Consolidated Disposal Services L.L.C. is a wholly owned subsidiary of Republic Services, Inc. Republic Services Inc. is the 3rd largest solid waste company in the nation. In Los Angeles County, Consolidated Disposal Services operates 24 exclusive municipal franchise contracts as well as a number of non-exclusive franchise contracts. A listing of the cities that they serve is attached.

The proposed agreement is attached for your review and approval. The agreement is proposed to be effective October 1, 2001, and will run through September 30, 2008. The agreement also includes an option for a 3 year extension if both sides agree. The initial rates will also be good through December 31, 2003. Exhibit B in the proposed agreement sets forth the rates for service. The initial rate for residential service will be $9.78 per month for the same service as is provided now. The present rate is $10.30 per month. The cart service rates will be as follows: 35 gallon, $8.78 per month; 65 gallon $9.78 per month; and 95 gallon, $10.78 per month.

The RFP required each of the companies to propose service on two basic options. One of the options included the use of company provided carts for both recycling and trash. The second option was to continue to provide service as we have done with unlimited number of cans provided by the residents. Both options provided for a larger recycling cart at either 35 or 65 gallons based on the choice of the resident.

The RFP further provided for a transition period from one company to the other, for the procurement of the carts and to provide a chance for residents to make their choices on the size of carts that they need. The cart option also provides for variable pricing based on the size of the cart selected. It was expected that the cart option could be implemented on April 1, 2002. As you know this is not a fully automated system. Our narrow streets, parked cars, etc. do not allow for the use of that type of equipment. This would be a semi-automated system that would be operated from two person rear loader trucks.

An option that the City Council has is to choose to continue the existing system of collection. A price ($9.78 per month) for this was provided in the RFP. The only change then would be that a new recycling cart would be distributed to each customer.

An alternative that the City Council may wish to consider is to set up a phased approach to the change over by starting the manual collection and in January, following a public information effort, have a public hearing on the cart system. This would provide an opportunity for the public to comment on the program before a final decision is made on the implementation of the cart system. If there were not any interest in the carts, then we would simply continue with the existing system. If we then decide to use the cart system, it could be implemented by July 1, 2002.

As you know, the RFP was very detailed in order to ensure that the residents and business community receives the service that it has come to expect. CDS will provide all of the services spelled out in the contract, which includes all of the services provided by BFI. CDS is very aware of the space limitations of many areas, so a number of options are being offered to accommodate everyone. Recycling will continue as it does now. Two additional recycling containers will be provided by the company, one is 35 gallon and one 65 gallon depending on the customer needs. There is an optional green waste program available for residents that are interested. The large item pickups will continue. CDS will also work with city staff in developing a long-term solution to the common trash facility in the downtown area including the use of compactor. City staff will work on an alternative program for disposal of Household Hazardous Waste under a separate contract with a specialist in this field; as a result, CDS will not be responsible for this program. City residents will continue to have access to the County sponsored Household Hazardous Waste Roundups held each Saturday.

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