SR-6-K (73)
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Council Meeting: August 13, 1991 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Request that city Council Authorize the Purchase
of Six Thousand Semi-Automated Refuse Containers
from otto Industries
INTRODUCTION
This report requests that the city Council authorize the purchase
of six thousand (6,000), 95 gallon size semi-automated refuse
containers in order to implement Phase II of the new residential
trash collection program. The original supply of containers
purchased in spring 1991 has been depleted. city staff wishes to
exercise the option previously agreed upon and re-order containers
and thus make use of the volume discount rate offered earlier.
BACKGROUND
On July 22, 1991 the city's Solid Waste Management Division
implemented Phase I of a new residential trash collection program
which consists of once per week, semi-automated refuse and
recycling pick-up for approximately 7,500 single family homes in
the city. Based on staff's on-going evaluation of the
implementation schedule for the program and recent citizen input,
it is proposed that the city embark on the next phase of the
integrated waste management program by expanding the semi-automated
collection to all mUlti-family buildings which currently use refuse
cans as opposed to refuse bins. 6-k
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The number of mUlti-family buildings in the City with 2 to 10 units
(any mUlti-family building with more than 10 units is required to
use refuse bins) is approximately 2,650. To accommodate these
mUlti-family needs as well as provide a sufficient inventory of
containers to respond to additional requests from single family
households, staff is recommending that 6,000 95 gallon capacity
containers be purchased. otto Industries supplied the bins for
the recently implemented single-family program and has agreed to
continue to offer the city the same price discount as in the
original purchase agreement for semi-automated containers.
These new containers will be distributed to the applicable multi-
family buildings in October of this year. Once the containers have
been distributed, these multi-family buildings will be included in
the city's new collection program which picks up both refuse and
recyclables once a week.
BUDGET/FINANCIAL IMPACT
The 6,000 new semi-automated 95 gallon containers will cost
$383,205. These costs will be charged to CIP account number,
27-710-441-20291-8930-99227, "Semi-Automated Refuse Collection
container" and will be paid at time of delivery. Since the
available fund balance in the Solid Waste Fund is not sufficient to
pay for this expenditure item, it is proposed that a loan from the
General Fund be approved in the amount of $383,205. The loan from
the General Fund will be paid off over a two year period from
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Refuse Fund revenues which are anticipated to be increased
effective January 1, 1992. The General Fund is being used for the
loan to the Refuse Fund as interest rates from outside contract
funding sources are higher than the rate of interest received by
the General Fund from its investments, and sufficient funds are
available to make the loan.
RECOMMENDATIONS
It is recommended that the city council:
1. Authorize the purchase of 6,000, 95 gallon capacity semi-
automated refuse containers from otto Industries;
2. Authorize a $383,205 loan from the General Fund to the Solid
Waste Fund; and
3. Appropriate $383,205 to Refuse Fund ClP account number,
27-710-441-20291-8930-99227.
Prepared by: Stan Scholl, Director of General Services
Tom Dever, Solid Waste Management superintendent
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