sr-112211-3gS
City of City Council Report
Santa Monica
City Council Meeting: November 22, 2011
Agenda Item: 3-61
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Zero Waste Strategic Plan Development and Rate Structure Analysis
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with HDR Engineering, Inc., a California-
based company, in an amount not to exceed $149,360 for the development of a Zero
Waste Strategic Plan and refuse rate structure analysis.
Executive Summary
The 2010 Sustainable City Report Card indicated that the citywide recycling rate
exceeded the Sustainable City Plan target of 70 %. In an effort to continue the recycling
momentum, development of a Zero Waste Strategic Plan (Plan) was proposed. The
Plan would consist of a review and summary of all the current policies and programs,
preparation of a zero waste guidelines, and the development of an operations plan that
would also include a financial and cost analysis. In addition to the Plan development,
the consultant would also perform a rate structure analysis and recommend policy
changes. It is recommended that HDR Engineering, Inc. (HDR) provide this service for
an amount not to exceed $149,360.
Background
On June 23, 2009, Council directed staff to develop a Zero Waste Strategic Plan. The
creation of the Plan would allow the City to strengthen and refine its current waste
diversion operations while adding significant opportunities and emerging technologies.
The City established the Zero Waste Planning Committee to effectively design and
implement a zero waste program. This Committee was comprised of the Resource
Recovery & Recycling Division (RRR), the Office of Sustainability and the Environment
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(OSE) and the City's private partners, Southern California Disposal and Allan Company.
Numerous meetings were held between September 2009 and August 2010 to establish
methodologies to develop a Zero Waste Strategic Plan. Out of this collaborative effort,
several processes and programs were discussed and implemented including a pilot
residential green food waste program, expansion of the commercial food waste
program, and audits of landfills to determine diversion rates. In addition, the committee
determined that a consultant would be needed to develop a long term zero waste
strategic plan which would include new and expanded operational programs, producer
responsibility, product stewardship, client responsibility, council ordinances and
resolutions as well as identifying impacts of all programs on future integrated waste
processing and disposal rates.
Discussion
Under the new State regulation AB 341, enhanced guidelines and mandates are
established for recycling, source reduction and composting. AB 341 contains language
which requires any commercial entity generating four cubic yards of trash or more per
week to arrange for recycling program implemented no later than July 2012. In addition,
AB 341 requires any multi - family property having five units or more to arrange for
recycling program implemented no later than July 2012. Municipalities are required to
monitor these requirements and are authorized to collect a fee to recover the agency's
cost for compliance. As a result of this State regulation, the Zero Waste Planning
Committee sought to identify an outside consultant to take full advantage of emerging
trends, new technologies and long -range plan development, and evaluate how to
adequately and equitably fund programs and services. Issues that would need to be
considered in the cost analysis related to fee recovery are:
• The policy shift to zero waste services while still incurring the long term costs of
landfill disposal and alternative technologies.
• The City's policy of maintaining a positive fund balance.
• The influence of Proposition 218, which stipulates that property- related fees and
charges, including garbage collection fees, must not only be related to the
service, but that they be limited to the cost of providing service, would impact the
allocation of costs to customers.
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The information presented in the Plan, including the results of the cost and rate analysis
will be used as the basis for future operational enhancements and rate structure
adjustments.
Consultant Selection
In May 2011, the City issued a Request for Proposals to develop a Zero Waste
Strategic Plan. The RFP was posted on Planet Bids, the City's online bidding system,
and notices were advertised in accordance with City Charter and Municipal Code
provisions. Four proposals were received on June 30, 2011. A review panel comprised
of staff from RRR and OSE evaluated the proposals and interviewed the top proposers.
The interviewees were given an opportunity to make a presentation and answer
questions from staff. After the interviews, HDR Engineering, Inc. was recommended as
the best bidder.
HDR assembled a highly qualified team of local and national solid waste professionals
in planning, operations, and rate structure analysis to assist the City develop its Zero
Waste Strategic Plan. HDR's team, which includes H F & H Consultants, has worked
closely together over the past 15 years to:
• Develop Zero Waste plans for 10 communities.
• Gain local knowledge of waste dynamics, regulations and opportunities.
• Compiled a data base of waste equipment and operations costs from projects
across North America.
• Prepare diversion and cost models that project system capital and operating
costs.
The HDR team also had the best understanding of the City's project needs and
presented the best strategy and approach to the project. Since their proposal was also
the most expensive, staff requested that they amend their proposal to scale back on the
outreach and program alternatives and focus on the financial component. An amended
proposal was received in September 2011 in the amount of $149,360, which includes
the use of a "flexible" rate model to assess the impacts of rate structures on garbage
disposal and recycling, and analyze the one time and ongoing costs of new program
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development. This flexible modeling tool would allow for various rate scenarios of new
programs, short -term and long -term implementation dates, and waste diversion impacts.
Recent projects completed by HDR include the development of Zero Waste Master
Plans for the cities of San Jose, Alameda, Palo Alto, and Austin, Texas. HDR is
currently working with the City of Los Angeles on the development of their 20 -year Zero
Waste Master Plan. The firm has recently been selected by the City of Pasadena to
develop that city's Zero Waste Strategic Plan. HDR also has experience in collection
efficiencies and alternative /conversion technology analysis.
Financial Impacts & Budget Actions
The professional service agreement to be awarded to HDR Engineering, Inc. for the
Zero Waste Strategic Plan and rate structure analysis is $149,360. Sufficient funds are
included in the FY2011 -13 Division's budget; this agreement will be charged to account
27441.555060.
Prepared by: Kim Braun, Resource Recovery & Recycling Manager
Approved:
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Martin Pastucha
Director of Public Works
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rwarded to Council:
Rod Gould
City Manager
Reference Contract No.
9510 (CCS)