SR-06-25-2013-3PCity Council Meeting: June 25, 2013
Agenda Item: �
To: Mayor and City Council
From: Martin Pastucha. Director of Public Works
Subject: Refuse Disposal, Recycling and Organics Processing Facilities
Recommended Action
Staff recommends that the City Council:
1. Add USA Waste of California dba Waste Management (organics waste processor)
and Agromin Organics Recycling Compost Facility (organics processing facility) to
the list of City authorized refuse disposal, recycling and organics waste processors
and facilities.
2. Award Bid #111212 to USA Waste of California dba Waste Management, a
California -based company, to process organics waste for the City for an estimated
amount of $750,000 per year.
Executive Summary
In November 2012, the City was notified by its organics waste processor, Community
Recycling, that residential food waste collected in the same bin as yard waste would no
longer be accepted at their facility due to permitting restrictions. Due to this unforeseen
circumstance, staff issued a request for proposals for a new organics waste processor.
Staff recommends USA Waste of California dba Waste Management as the City's
organics waste processor and the addition of the Agromin Organics Recycling Compost
Facility in Oxnard, CA to the authorized list of refuse disposal, recycling and organics
waste processors and facilities. Issuing a purchase order to USA Waste of California
dba Waste Management in the amount of $750,000 per year would not increase the
total annual amount for a five -year period previously approved by Council on June 28,
2011 for all vendors on the existing list of refuse disposal, recycling and organics waste
processors and facilities.
Discussion
The City currently uses multiple facilities including Community Recycling because of
their proximity, availability, and lowest fee for disposal. Community Recycling is also
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the processor and recycler of yard waste, food waste, and construction and demolition
debris as the City's organics processor.
In November 2012, RRR staff was notified by Community Recycling that food waste
collected in the same bin as yard waste could no longer be accepted at their
composting facility due to permitting restrictions. This comingling of yard waste and
food waste began as a pilot program in August 2011 with approximately 600 single
family residences participating in the organics collection program. In June 2012, the
City expanded the food waste in the organics collection program to all single family
residences. Since being notified that the organics processer could no longer accept the
residential green and food commingled waste, the organic material is currently being
hauled to one of the City's other authorized facilities for use as daily cover of trash
facilities.
Vendor Selection
The City issued a Request for Proposals (RFP) for organics waste processing services
in November 2012. The RFP was posted on the City's online bidding system in
accordance with City Charter and Municipal Code provisions. The RFP required a
submittal of costs to process: 1) commercial food waste; 2) residential yard waste mixed
with food waste; and 3) street sweeping materials. Additionally, the RFP required a cost
to process a combination of all three. This comingling of organics waste requirement
was included in the RFP to begin to establish a process that may develop into the
wet/dry collection system discussed in the Zero Waste Strategic Operations Plan. The
RFP also required that a residual percentage of contamination be allowed prior to
charging a fee for disposal.
Proposals were received on December 7, 2012 from three vendors: Farm Share of
California, Southern California Disposal and USA Waste of California dba Waste
Management. The proposals were evaluated based on the aforementioned criteria. All
three vendors provided costs for the source separated processing of organics materials.
One of the vendors did not submit a cost to process a combination of commercial food
waste, residential yard waste mixed with food waste, and street sweeping materials.
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All three vendors provided a residual percentage of contamination ranging from 1% to
15 %.
USA Waste of California dba Waste Management is recommended as the best bidder to
process organic waste at the Agromin Organics Recycling Facility because the proposal
included costs for all of the conditions listed in the RFP as well as offering the City a
reduced organic waste processing rate for residual amounts below 7 %. Processing
rates increase if residual amounts are 7 % -9% and 10 %, respectively. The percentage
calculations are based on monthly averages.
Funds previously set aside for processing organics waste at Community Recycling
would be applied to Waste Management's costs. The actual cost is contingent upon
both the number of tons delivered to the Agromin facility and the level of residual
contamination. The annual cost is projected at $750,000 for FY2013 -14.
Staff is finalizing the Zero Waste Strategic Operations Plan (Plan). A main component
of this Plan is to increase organics waste participation and processing at sites other
than landfills. Additionally, the Plan recommends use of alternative disposal
technologies. The Agromin Organics Recycling Compost Facility is expected to open
an anaerobic digestion facility within the next two months, which supports
recommendations in the Plan. Anaerobic digestion (AD) is the biological decomposition
of organic matter with little or no oxygen. There are a variety of controlled systems
where anaerobic technology is utilized in municipal solid waste digesters to produce
energy and to reduce the volume of solid waste that must be landfilled.
The processing operations conducted by Waste Management at the Agromin Organics
Recycling Compost Facility and the future use of the anaerobic digestion facility will
assist the City in reaching a goal for bi- weekly trash collection program and/or a wet/dry
container collection program. There is a potential for substantial cost savings to the City
if one or both of these programs are implemented.
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Financial Impacts & Budget Actions
The purchase order to be issued to USA Waste of California dba Waste Management
will not increase the total annual amount of $9,582,000 for a five -year period previously
approved by Council on June 28, 2011 for all vendors on the existing list of refuse
disposal, recycling and organics waste processors and facilities. The combined total
amount of the purchase orders to be issued for all facilities is $4,090,000 in FY 2013 -14
and $4,240,000 in FY 2014 -15. Funds are included in the proposed FY 2013 -15 budget
in division 27441. The purchase order will be charged to account 27441.555070.
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:
Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager