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HomeMy WebLinkAboutItem 3B - PresentationPalm Springs Disposal Services: Proposed Franchise ExtensionAgenda Item #3B January 11, 2024 OFFICE OF SUSTAINABILITY Item 3B - Page 1 Summary of Recommendation Approve the First Amendment to the Amended and Restated Franchise Agreement which would: •Extend the term of the agreement to January 1, 2034 •Include provisions for expanded bulky item pickup, kitchen pail distribution, special collection events, an employment program, and zero-emission vehicles OFFICE OF SUSTAINABILITY Item 3B - Page 2 Background •The franchise agreement was amended and restated inSeptember 2022 to comply with SB1383. •CalRecycle required cities to make these franchise updatesquickly. •Increased material collection requires more vehicles, andvehicles are replaced on a regular basis. •Vehicle lead times increased to 36 months during the pandemic. •The existing contract term does not provide for a long enoughamortization period for the vehicles. OFFICE OF SUSTAINABILITY Item 3B - Page 3 Proposals •Vehicle replacement: •If approved, PSDS will purchase 9 replacement vehicles at a cost of approximately $4.5 million. •PSDS has also proposed to purchase a Zero Emission vehicle for waste collection if performance tests are passed and funding for incremental costs and charging is secured from grant sources. OFFICE OF SUSTAINABILITY Item 3B - Page 4 Proposals •Expanded resident services: •PSDS will offer countertop compost kitchen pails to all residences upon request (previously limited to space-constrained multi-family dwellings). •Free on-call bulky item pickup will be extended to multi-family dwellings. •PSDS will incorporate shredding and e-waste collection events into their special collection events already held at City Hall at no cost to the City. OFFICE OF SUSTAINABILITY Item 3B - Page 5 Proposals •Employment program: •PSDS will employ up to eight individuals referred from the Navigation Center in the "Hand-Up Program," designed to aid job seekers in establishing a current work history for re-entry into the labor market. •Individuals will be employed for 6 months across PSDS operations in two groups. OFFICE OF SUSTAINABILITY Item 3B - Page 6 Impact •This extension will not modify rates as they are currentlystated in the existing agreement. •Additional proposals will improve the resident experience withspecial collections, provide employment pathways, andpotentially yield the Valley's first Zero Emission wastecollection vehicle. OFFICE OF SUSTAINABILITY Item 3B - Page 7 Palm Springs Disposal Services: Proposed Franchise ExtensionAgenda Item #3B January 11, 2024 OFFICE OF SUSTAINABILITY Item 3B - Page 8