Department of Public Works NonExclusive Solid Waste Collection
Department of Public Works Non-Exclusive Solid Waste Collection Franchise System – Review September 29, 2014
Overview Department of Public Works • Continuation of review of City’s franchise system • Seeks to answer 2 questions 1. What system is best for Pasadena today? 2. What steps Pasadena should take to meet anticipated future needs? § City sustainability & conservation policies § Zero Waste Strategic Plan § Current & expected state legislation » AB 1826 – commercial organics recycling 2
Chronology Department of Public Works • April 8, 2014 – MSC recommended City Council retain closed system & place franchisees on 5 -year notice of intent to consider modification to franchise system • April 28, 2014 – City Council deferred action & directed staff to > Update PMC to address composting haulers > Provide information on C&D haulers & inert materials 3
Chronology Department of Public Works • September 9, 2014 – MSC unanimously recommended City Council approve recommendations contained in report > Requested staff review definition of organics in response to public comments 4
Recommendations Department of Public Works 1. Direct City Attorney to amend PMC Chapters 8. 60 (Solid Waste) & 8. 61 (Franchise System) & return to City Council in 90 days 2. Open non-exclusive franchise system to composting haulers for processing organic, yard waste & other compostable material from commercial & residential accounts to state approved/permitted composting facilities 5
Recommendations Department of Public Works 3. Retain closed franchise system for solid waste & construction & demolition (C&D) haulers 4. Direct City Manager to place solid waste & composting haulers on notice of City’s intent to consider modification of current nonexclusive system including possibility of moving to exclusive system in 5 years (excludes C&D-only haulers) 6
PMC Amendments Department of Public Works • Proposed amendments to PMC Chapters 8. 60 (Solid Waste) & 8. 61 (Solid Waste Collection Franchise) > Allow composting haulers to collect organic, yard waste & other compostable material from residential & commercial properties § Organics – materials that are or were living (leaves, grass, crop residues & food scraps) § Other compostable material – material confirmed in writing as compostable by certified processing facility 7
Composting Department of Public Works • Open franchise system to composting haulers > Processing organic, yard waste & other compostable material from commercial & residential accounts • Diversion opportunity > 42% of Pasadena materials disposed of in landfills are compostable (2008 Statewide Waste Characterization Study) > Moves City toward Zero Waste Goal of 87% diversion by 2040 > Provides additional options for AB 1826 compliance 8
Composting Department of Public Works • New composting franchises > Will be awarded to haulers meeting requirements § Remain open & be evaluated in next franchise system review in 3 years • What to expect > Manageable number of new haulers to enter franchise system § Limited number of processing facilities in region § Cost of transporting & processing material 9
C&D Debris Department of Public Works • Retain closed franchise system for C&D collection > Processing of material generated from construction, renovation, demolition & paving projects § C&D debris – gravel, plaster, wallboard, metals, glass, plastic pipe, roofing, carpeting & wood § Inert material – rock, concrete, brick, sand, soil & asphalt 10
C&D Debris Department of Public Works • Why keep C&D franchise closed > Adequate number haulers (21 of 22) provide service > Each hauler exceeds 75% diversion requirement § 77% - 100% diversion in FY 2013 > Additional franchises will not increase diversion since diversion primarily based on processing facilities’ “certified diversion percentage” § 9 C&D processing facilities certified by City of LA have 75% or higher diversion rates 11
5 -Year Exclusive Notification Department of Public Works • Place solid waste & composting haulers on notice of City’s intent to consider modification of current non-exclusive system including possibility of moving to exclusive system in 5 years (excludes C&D-only haulers) > Enables City to be prepared if adjustments needed > Supports City sustainability & conservation policy directions & anticipated state legislation > Does not obligate City to pursue system modification 12
5 -Year Exclusive Notification Department of Public Works • Why issue notice to new composting haulers > Provides flexibility for City as industry matures > Difficult & expensive to site, permit & operate organics processing facilities > Exclusive organics franchise(s) may be most costeffective service option § Processors need consistent tonnages to develop & operate facilities 13
5 -Year Exclusive Notification Department of Public Works • Why exempt C&D-only haulers from notice > 6 of 22 haulers provide C&D services only > All haulers exceed mandatory 75% diversion requirement > If 5 -year notice issued, haulers may stop investing in advanced technologies knowing they will not be able to compete to become exclusive provider if new service model implemented > Municipal industry trend is toward exclusive systems where C&D service is exempted 14
Proposal Summary Department of Public Works 1. Amend PMC Chapters 8. 60 (Solid Waste) & 8. 61 (Franchise System) & return to Council in 90 days 2. Open non-exclusive franchise system to composting haulers for processing organic, yard waste & other compostable material from commercial & residential accounts to state approved/permitted composting facilities 3. Retain closed franchise system for solid waste & C&D haulers 4. Notify solid waste & composting haulers of intent to consider moving to exclusive system in 5 years (excludes C&D-only haulers) 15
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