department of public works non-exclusive solid waste collection franchise system – review april...
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Department of Public Works
Non-Exclusive Solid Waste Collection Franchise System –
Review April 28, 2014
Department of Public Works
2
Overview
• 3-year 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 in
furtherance of policies to increase conservation & sustainability? City Council strategic goals Open Space & Conservation Element UN Urban Environmental Accords Green City Action Plan
Department of Public Works
3
Chronology
• August 2007 – City Council approved closure of solid waste collection franchise system>Reduce environmental pollution & number of
trucks >Addition of new haulers would cause further air
& noise pollution, road damage & congestion>Addition of new haulers not likely to improve
service or increase competition>Provide staff time to enforce franchise
requirements• Directed staff to update City Council
every 3 years on status of franchise system
Department of Public Works
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Vehicle Impacts on Pavement
SUV Delivery Truck
Semi/ Big Rig
Bus Garbage Truck/ Green Waste
0
2,000
4,000
6,000
8,000
10,000
1 442
4,526
7,774
9,343
Pavement Stress per Trip (1 vehicle unit = 1 SUV)
Nu
mb
er
of
Veh
icle
Un
its
Department of Public Works
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Chronology
• December 2010 – City Council received 3-year franchise update
>Approved retention of closed system>Directed Public Works to report back in 3
years • April 8, 2014 – MSC received 3-year
franchise update>Recommended City Council retain closed
system
Department of Public Works
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Franchise Statistics
Franchises Vehicles
2007 34 160
2010 26 125
2013 22 111
10
30
50
70
90
110
130
150
Department of Public Works
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Current Franchise System
• Statistics>22 haulers service
3,465 commercial & multi-family customers 5 haulers serve 3,233
customers (96% of customer base)
17 haulers serve 142 customers (4% of customer base)
» Range from 1 to 40 customers
Other; 142; 4%
Universal
Waste; 120; 3%
Valley Vista; 181; 5%
Athens; 1986; 57%
2013 Customer Data
Consolidated/ Republic, 772,
22%
Waste & Re-cycling, 264,
8%
Department of Public Works
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Franchise System Performance
• Diversion>FY 2012 Citywide diversion rate – 75%>75% minimum diversion rate for C&D
100% of haulers in compliance (77% to 100%)
>60% minimum recycling diversion rate for solid waste 100% of haulers in compliance (60% to
100%)• Time to enforce franchises
>12 (35%) fewer franchises since 2007 Termination provisions for PMC non-
compliance Annual audits
Department of Public Works
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Franchise System Performance
• Reduce environmental pollution>Phase-in of alternative-fuel vehicles per
SCAQMD Rule 1193 to achieve 100% use by July 1, 2018 100% of haulers in compliance
>Reduce number of vehicles on City streets 49 (31%) fewer vehicles since 2007
>3-year average number of days exceeding federal ozone standard between 2010 & 2012 Decreased by 74.6%
Department of Public Works
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Alternative Service Arrangements
• Common commercial/multi-family service arrangements>Fully open non-regulated system>Non-exclusive permit system>Non-exclusive franchise system (current
model)>Single exclusive franchise>Multiple exclusive franchise
• Non-exclusive (current system) & exclusive franchise systems provide agencies greatest control over haulers
Department of Public Works
Exclusive System Benefits
Category Exclusive
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Description - Service provided by 1 hauler citywide or multiple haulers with geographic zones
- Rates approved by city
Diversion - Potential for higher waste diversion as haulers would have sufficient customers in proximity for new programsBusiness - Routing efficiencies may make this most cost effective option
- Encourages infrastructure development & vehicle investmentEnvironmen
t- Systematic routes minimize environmental impacts
Customer Rates
- Rate equity – customers pay same price for same service
Other City Benefits
- Reduces staff time required to monitor/manage hauler(s) allowing staff to focus on diversion program efforts
Department of Public Works
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San Jose Model
• San Jose>June 2012 – moved
from non-exclusive (20 haulers) to exclusive system
>Reasons for transition Increase diversion
from commercial waste stream due to limited infrastructure investment for recycling by current haulers
Implement efficient citywide service delivery models to improve economies of scale & reduce environmental impact
>Performance indicators Advanced recycling &
commercial-scale anaerobic digestion facilities opened
Commercial recycling rate increased from 25% to 70%
Department of Public Works
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Los Angeles Model
• Los Angeles>Early-2017 –
implementing commercial exclusive system 11 geographic zones Contracts awarded
via competitive bid
>Reasons for transition 120+ haulers Trucks traversing city
on uncoordinated schedules
Extra wear & tear on roads
Air pollution
>Anticipated benefits Increased diversion Reduced
environmental footprint
Expanded programming
Cost controls
Department of Public Works
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Conclusions/Next Steps
• Industry best practice – exclusive system
• Take steps now to position Pasadena to meet anticipated future needs>Move toward Zero Waste 2040>Possible state-imposed increased diversion
rates >Desire to further reduce environmental
pollution>Need for innovative processing facilities in
local area Recent RFP process for recyclables &
organics processing shows need for infrastructure
Department of Public Works
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Possible System Modification
• CA Public Resources Code contains procedures that must be followed when agency is considering modification to solid waste collection system >Requires agencies to give 5-year notice of intent
to implement exclusive solid waste franchise(s) to companies who have been authorized to operate in city for more than 3 years
Department of Public Works
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Recommendations
1. Retain closed Non-Exclusive Solid Waste Franchise System & direct staff to report back in 3 years to City Council with next review of authorized haulers to ensure competitive pricing & options for solid waste recycling & disposal
2. Direct City Manager to place existing franchisees on notice of City’s intent to consider modification of current Franchise System at time 5-year notice expires pursuant to CA Public Resource Code which allows agencies to grant exclusive operating rights to solid waste disposal companies
Department of Public Works
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Zero Waste Plan
• Summer 2014 – consideration by MSC/Council>Compostable initiatives-development upon
adoption Residential – pilot program for comingled food
scraps, compostables & yard waste Commercial – pilot program with franchise
haulers City events/public venues – compostable
collection >Foster/develop compostable processing
opportunities Amend PMC to include exemptions for grass
roots efforts Increase hauler performance requirements