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sr-062811-3r~® ~;,Yo, iy ®ucil Rep®rt Santa Monica® City Council Meeting: June 28, 2011 Agenda Item: 3 To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Refuse Disposal and Recycling Facilities Recommended Action Staff recommends that City Council authorize purchase orders be issued to the following California-based companies: Commerce Refuse-To-Energy Facility, Southeast Resource Recovery Facility, Community Recycling, Puente Hills Landfill, and. Chiquita Canyon Landfill; and to one Arizona based-company, Sunshine Canyon Landfill, to provide ongoing landfill and recycling services. The annual amount over the next five years will not exceed $9,582,000 per year. Executive Summary The City collects waste, recyclables, green/yard waste, and food waste citywide from residents and businesses. These materials are delivered to either the City-owned and operated transfer station, Southern California Disposal, or the City's recycling contractor, Allan Company. The materials are then transferred to vehicles or roll-off containers for final disposal or processing of recyclable materials. In addition, the City- owned and operated transfer station accepts construction and demolition materials, white goods, appliances, tires, electronics, and landscape materials. These are also separated at the transfer station and transported to various disposal sites, waste-to- energy facilities, or processing facilities to recycle. Staff recommends that purchase orders be issued to the vendors listed above to provide ongoing mix of landfill, refuse disposal, and recycling services to the City over afive-year period at a total cost not to exceed $9,582,000 annually. Discussion The City uses the Commerce Refuse-To-Energy Facility, Southeast Resource Recovery Facility (SERRF), Community Recycling, Puente Hills Landfill, Chiquita Canyon Landfill., and Sunshine Canyon Landfill because of their proximity, availability, and lowest fee for disposal. Community Recycling is also the most responsible processor and recycler of green waste, food waste, and construction and demolition debris. Since disposal sites are regulated to accept up to a maximum amount of tonnage daily, the City must have several sites available to transport waste materials in the event a landfill facility reaches 1 its maximum daily capacity prior to the City completing waste transfer on any given day. Currently, the gate rate at the landfills is increasing annually between 13 to 15 percent with no flat rates offered. In November 2013, Puente- Hills Landfill is scheduled to close, and gate rates at the remaining sites in the Los Angeles region are expected to double. This has prompted staff to search for long-term disposal options. Vendor Selection There are seven active landfill facilities in the Los Angeles County. Of the seven facilities, two can only be used for trash collected in the City of Los Angeles and two are located in the Palmdale/Lancaster area, which makes use of these locations problematic due to the driving distance and cost. The City currently uses the remaining three landfill facilities: Puente Hills in Whittier, Chiquita Canyon in Castaic, and Sunshine Canyon in Sylmar. Puente Hills Landfill, owned and operated by the Los Angeles County Sanitation District, has always been and continues to be the primary disposal facility for the City. With the anticipated closure of Puente Hills Landfill in November 2013, the available option would require that trash tipped at the Puente Hills Landfill facility be transferred into rail shipping containers and hauled by rail to the Mesquite Regional Landfill in Imperial County, which would double the expected cost of disposal. Based on this projection, staff began making arrangements for the City through alternative disposal facilities to address the long-term and cost-effective operational needs through the use of privately-owned and operated Chiquita Canyon and Sunshine Canyon landfills. The City began taking waste to these facilities in FY2010-11 because of a need for an alternate facility when Puente Hills reaches its daily waste limit, and to establish a long- term working relationship. 2 Disposal Cost Per Ton Trips Tipping Fee Including Daily Cost Facility Travel Time Per Day Per Ton Travel Per Truck Puente Hills Landfill 2 hours 3 $38.26 $50.80 $ 2,743.20 Chiquita Canyon Landfill 3 hours 3 $28.00 $58.30 $ 3,148.20 Sunshine Canyon Landfill 2 hours 3 $36.71 $49.25 $ 2,659.50 Based on current operations, staff anticipates that the City would take at most 17 percent, or 15,000 tons, of the total 89,000 tons disposed in landfills to one of the two alternative facilities annually. This would occur on days when Puente Hills has reached its daily capacity and no longer accepts waste on that day. The, City has to dispose of the waste on a daily basis due to health and safety issues and requirements of ,its transfer station permit issued by the State. To ensure the City conforms to State regulations, staff proposes that alternate landfills be utilized in the following order: ® First alternate: Chiquita Canyon in Castaic ® Second alternate: Sunshine Canyon Landfill in Sylmar The City would utilize Chiquita Canyon Landfill in Castaic as its first option for disposal when Puente Hills Landfill closes. Chiquita Canyon Landfill would add an additional one-way distance of nine miles to the transfer vehicle trip, compared to Puente Hills. Sunshine Canyon Landfill in Sylmar, owned by Republic Services Inc: (corporate headquarters is located in Phoenix, Arizona), is the City's second option for disposal to Puente Hills. Sunshine Canyon is recommended for its proximity to Santa Monica and freeway accessibility. This facility is actually four miles closer to Santa Monica than Puente Hills; however, understanding the City's policy regarding Arizona-based companies, it would only be utilized if Puente Hills and Chiquita Canyon are not available. 3 In addition to maintaining flexibility in addressing health and safety concerns, there are added cost and time impacts as well. The extra time the transfer vehicle has to travel for the additional nine miles one-way to Chiquita Canyon Landfill will increase the cost of completing the final transfer per day because of the need for overtime at the end of the day. For the 15,000 tons expected to be hauled to alternative landfills, the increased cost could be as high as $113,000 for FY 2011-12. If Chiquita Canyon Landfill has reached its daily capacity or is closed for the day and staff is not able to utilize Sunshine Canyon Landfill because it too is closed or its use is not authorized by Council, these loads would be taken to the City's third alternate, arefuse-to-energy facility located in either the City of Commerce or the City of Long Beach, provided they have not also reached their daily capacity. The use of these refuse-to-energy facilities would add a 10-percent premium to the cost of disposal. Based upon the identified cost increases and the health and safety impacts, staff recommends that the City Council authorize the agreements with the identified vendors including Sunshine Canyon Landfill, operated by the Arizona-based company Republic Services Inc., as the disposal option if Puente Hills and Chiquita Canyon Landfills are not available. These facilities are recommended because they are the most cost effective and efficient means for the City to provide resource recovery and waste disposal services and they allow the City to operate within the requirements of its transfer station permit. Staff will continue to work with the Los Angeles County and other jurisdictions on finding alternative disposal options with the anticipated closure of Puente Hills Landfill in 2013. Staff will return to Council in the next year with identified options and an analysis of cost and rate impacts. 4 Financial Impacts & Budget Actions The combined total amount of the purchase orders to be issued in FY2010-11 is $4,791,000. Funds are available in account 27441.555070 Recycling/Disposal Fees. Budget authority for subsequent years will be requested at each biennial budget cycle for Council approval Prepared by: Kim Braun, Resource Recovery & Recycling Manager Approved: Forwarded to Council: 'f 'iI i ~~{.. ~~~~~~'°-~ Martin Pastucha Rod Gould Director of Public Works City Manager 5