The URL can be used to link to this page

Home My WebLink About17B Burrtec PresentationCITY COUNCIL SOLID WASTE AND RECYCLING AGREEMENT HF&H Consultants City of Palm Desert March 10, 2022 AGENDA Background SB 1383 Required Programs New Programs/Agreement Modifications Schedule Recommended Actions 1 BACKGROUND City Agreement with Burrtec was assigned in 2006 from Waste Management. Burrtec is the exclusive provider for residential, commercial, and industrial solid waste services. Current Agreement was amended in May 2015 and expires May 31, 2023. Current Agreement does not include programs to comply with Senate Bill 1383 California’s Short-Lived Climate Pollutant Reduction Strategy. City staff, HF&H, and Burrtec began negotiations on October 28, 2020. 2 BACKGROUND CONTINUED -SUBCOMMITTEE During the Study Session on August 26, 2021, the City Council formed a subcommittee to provide guidance on a variety of topics including the rate options, term, Recycle Fund use, a container colorization plan, kitchen pails, and a community outreach plan. Subcommittee members included: Sabby Jonathan, Mayor Pro Tem Karina Quintanilla, Council Member Subcommittee proposed a ten-year extension (eleven-year term) from the end of the current Agreement term. 3 SB 1383 REQUIRED PROGRAMS SB 1383 Requirement Proposed Programs Residential Organic Waste Collection Residential food waste may be placed in paper bags or wrapped. Burrtec will collect with green waste and compost the material. Kitchen pails distributed to residential customers during program roll-out. Container Contamination Monitoring Burrtec will notify customers of contamination found in containers. Inspection and Enforcement Burrtec will provide City required information to follow-up and City will issue notices of violation for noncompliance with SB 1383 mandates. Edible Food Recovery Burrtec to provide education to businesses to inform them of local edible food donation opportunities. Education and Outreach Burrtec will perform the required customer outreach and will work with the City annually to create an outreach plan to be approved by City. Procurement of Organic Waste Products Burrtec will procure the required amount of organic waste products on behalf of the City. City will receive 100 tons annually for use at City facilities and giveaways. Reporting Burrtec will provide the necessary reports to submit to CalRecycle . 4 PROGRAMMATIC COSTS TO COMPLY WITH SB 1383 AND RECYCLING PROCESSING COST INCREASES Residential Organic Materials Collection Program Additional 5.5 collection trucks, additional green carts for 23k customers without them, processing per ton costs for food mixed with green waste, kitchen pails, and start-up education Recycling Commodity Revenue Adjustment due to China Sword policy changes SB 1383 Monitoring and Public Education and Outreach 1.5 additional Burrtec staff members required to implement/monitor programs and provide necessary reports Meets required outreach mandates in SB 1383 to inform customers of requirements Container colorization roll-out new blue recycling cart to all residents 5 PROPOSED PROGRAM ENHANCEMENTS –COLLECTION PROGRAMS Multi-family bulky item collection at no additional charge (4 items/pickup based on dwelling units) Extra residential trash set outs (3 bags/pickup up to 4 times/year) Additional free document shredding event Annual compost giveaway program Plastic bag drop-off program at Burrtec Recycle Center 6 PROPOSED PROGRAM ENHANCEMENTS –CITY SERVICES Portable toilets at four City-sponsored events Containers for City use of 12 special clean-up events Burrtec to cover costs for Prop 218 annual rate adjustment notices ($30K) 7 PROPOSED PROGRAM ENHANCEMENTS –PUBLIC OUTREACH Medication takeback program outreach requirement Public outreach including use of a third-party designer and annual public outreach plan Signs on trucks for City outreach 8 PROPOSED PROGRAM ENHANCEMENTS –RATES Simplified rate adjustment methodology Annual recycling rebate for customers based on future commodity revenues One-time adjustment of residential rates on July 1, 2024, based on actual organic collection services 9 PROPOSED ENHANCEMENTS TO AGREEMENT TERMS Organic waste for community composting facilities Compliance audit every three years Enhanced performance standards Restructured City fees 10 RECOMMENDED SUBCOMMITTEE TERM OF THE AGREEMENT Term April 1, 2022 to March 31, 2033 Up to three, one-year extensions at the City’s option Phase-in of contractor’s residential rate increases over 4 years Possible use of Recycle Fund monies to further phase-in the residential increases over 5 years One-time commercial/industrial sector rate increase of 5.6% 11 PROPOSED CONTRACTOR COMPENSATION ADJUSTMENT 12 Residential Customer Rates per Month Current Rates (2 Carts) Proposed July 1, 2022 (3 Carts) -96 Gallon Carts (1 Refuse and 1 Recycling Cart)$13.30 $15.13 -64 Gallon Carts (1 Refuse and 1 Recycling Cart)$10.65 $12.48 -32 Gallon Carts (1 Refuse and 1 Recycling Cart)$7.97 $9.80 -Green Waste Container Service (1 Green Waste Cart)$1.43 N/A Note: Approximately 6,000 out of 29,000 residential customers currently subscribe to green waste service at $1.43/month. Residential Customer Rate Increases Effective Date Increase Per Residence Per Month July 1, 2022 $1.83 July 1, 2023 $3.91 + CPI July 1, 2024 $2.43 + CPI July 1, 2025 $0.63 + CPI POSSIBLE USE OF RECYCLE FUND Subcommittee discussed option to utilize approximately $2,000,000 of the Recycle Fund to offset residential increases Item to be brought back for Council consideration during review of 7/1/2023 annual adjustment 13 Term Option 7/1/2022 7/1/2023 7/1/2024 7/1/2025 7/1/2026 Total 11 Year Term Rate Phase-In - Burrtec Proposal $ 1.83 $ 3.91 $ 2.43 $ 0.63 $ 8.80 Cumulative Increase to Burrtec $ 1.83 $ 5.74 $ 8.17 $ 8.80 Possible Recycle Fund Subsidy $ - $ 2.01 $ 2.54 $ 1.27 $ 5.82 Recommendation: 11 Year Term with Recycle Fund Subsidy $ 1.83 $ 1.90 $ 1.90 $ 1.90 $ 1.27 $ 8.80 Customer Increases based on Term and Recycle Fund Use SCHEDULE Timeline Mandatory Service Ordinance went into Effect February 26, 2022 Automatic Service Letter Distribution for AB 341/1826 February 2022 –March 2022 Agreement Effective Date with Enhanced Commercial Services available April 1, 2022 Residential Food Waste Program Roll-out and new Residential Rates in Effect By July 1, 2022 Full Compliance with AB 341/1826 Required by CalRecycle By July 1, 2022 14 RECOMMENDED ACTION Adopt Resolution approving amended franchise agreement with Burrtec Waste and Recycling Services, LLC to collect solid waste, recyclables, and organic waste; and Approve the adjusted maximum service rates outlined in exhibits 3A, 3B, and 3C of the amended franchise agreement. 15