HomeMy WebLinkAbout2/16/2000 - STAFF REPORTS (7) DATE: FEBRUARY 16, 2000
TO: CITY COUNCIL
FROM: DIRECTOR OF MANAGEMENT & BUDGET
APPROVE A COMMERCIAL FOOD WASTE COLLECTION PROGRAM AND
ADOPT A RATE STRUCTURE PER FRANCHISE AMENDMENT NUMBER 4
WITH PALM SPRINGS DISPOSAL SERVICES
RECOMMENDATION:
That the City Council approve the commercial Food Waste Collection Program
implemented by Palm Springs Disposal Services and establish a rate schedule for the
service.
BACKGROUND:
On October 7, 1998, the City Council approved Franchise Amendment No. 4 authorizing
the use of Recycling Fund Reserves for development of the NextPhase Project and the
purchase of equipment for the Food Waste Collection Program. Because Franchise
Amendment No. 4 proposes to use a portion of the City's Recycling Fund created for the
development of the solid waste recycling facility, the City Attorney sought a court's
concurrence that Amendment No. 4 is valid and binding in relation to Proposition 218. A
Request for Entry of Court Judgement was filed in Riverside County Superior Court on
February 26, 1999. The Court's ruling validating the action was rendered July 14, 1999,
and became binding on August 14, 1999. PSDS now requests that the City Council:
1. Adjust the budget to accommodate the increased cost of an Alternative Fuel
Vehicle for the Food Waste Collection Truck;
2. Approve Franchise Amendment No. 5 establishing a schedule of rates for
Source Separated Food Waste Collection; and,
3. Authorize reimbursement to PSDS for expenditures in accordance with the
attached budget upon the submittal of paid invoices.
Food Waste is a significant component of the City's waste stream accounting for an
estimated 16% of the amount of commercial waste generated. The City's waste diversion
rate through calendar year 1998 is 47%. It is estimated that the Food Waste Collection
Program will ultimately divert approximately 2,080 tons per year, an additional 3%.
Program Description
The Program is offered to Commercial generators only and will target hotels, restaurants,
grocers and food preparation establishments. Participants will source separate organic
waste into Contractor-provided carts or bins that will be collected by a separate vehicle
and deposited at the California Bio-Mass for processing into a beneficial soil amendment.
Program Introduction
One of the goals of the Program is to create successful models for specific generator
classifications that can be replicated. The Program will therefore be introduced in
measured fashion to customers that have a sincere desire to participate. In this manner
one-on-one training and follow-up can be offered to each customer to establish the
program before moving on to new customers. Examples of generator classifications
include full service hotels, dine-in restaurants, institutional kitchens and grocers. 414
4 Customers P
The Program will be a voluntary one in which participants are able to enroll and
withdraw at will. The Rate structure is designed to offer participants a financial incentive
to participate. Among the initial customers will be the Palm Springs Hyatt, Palm Springs
Hilton, Mery Griffin Resort/Givenchy Spa and the Spa Hotel
Rates
Exhibit A(Rate Schedule) to the Franchise Agreement needs to be amended to establish a
new rate schedule for the collection of source separated Food Waste. The Rate Schedule
is designed to encourage participation by offering financial savings. Table 1 details the
components of the rates by summarizing the basic service categories and comparing them
with the equivalent service cost for regular waste.
Table 1
Monthly Rate for Comparable Rate
Service Collection of for Regular Waste
Source Separated Collection
Food Waste
32-Gallon Cart $10.42 $20.42
64-Gallon Cart $14.51 $24.76
2 Cubic Yard Bin $57.94 $80.70
Program Standards
In order to ensure that the material collected meets processor requirements, participants
will be required to adhere to the following standards:
• Organic Materials Accepted --Food scraps, Food Waste must be free from
foreign debris such as plastic or metal utensils, cloth napkins, metal objects,
metal, glass or plastic food or beverage containers. Liquid levels must not top
the mid point of the Food Waste container.
• Containers -- Organic materials will be collected only from Contractor-
provided containers. Food Waste Containers must be accessible to the
collector on the day of collection. Containers of varying sizes (from 32 & 64-
gallon plastic carts to 2 cubic yard steel bins) and quantities will be offered
taking into account each generator's volume and weight, workstation
configuration and accessibility.
• Collection Frequency -- The minimum level of service is once weekly
collection. More frequent weekly collections up to five times weekly will be
provided at the customer's request. Extra collections can be arranged the next
business day. (Collections will not be available on Saturday or Sunday
because the Processing Facility is not open to accept delivery.
ProcessingF acility
Food Waste collected in the Program will be transported to the California Bio-Mass
composting facility in Thermal (62"d Avenue at Jackson Street). CBM is a pennitted
facility that utilizes windrow composting to convert organic waste into a beneficial soil
amendment. The product is used primarily as a soil amendment by farming operations in
the region.
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Equipment
The Collection Vehicle will be ordered from the Oakland Truck Center(Specifications
are provided as Attachment 1.)
Collection Vehicle
The Food Waste Program collection vehicle will be a front-loading commercial refuse
collection vehicle equipped with a semi-automated lifting mechanism. This
configuration will allow the same vehicle to service carts and bins. The vehicle's body
will be sealed to prevent leakage. The specified vehicle will be a Volvo WXLL64
Xpediter Low Entry Cab Truck equipped with a Cummins C8.3G engine (dedicated
Natural Gas) and an AMREP 38 cubic yard front loading refuse body sealed to prevent
leakage.
Natural Gas Engine
The collection vehicle utilized in the Food Waste Collection Program will be powered by
the Cummins 8.3G Natural Gas Engine. The Cummins C8.3G is a California Air
Resources Board certified AFV engine. The engine will be fueled by Compressed
Natural Gas (CNG). Refueling will be performed after hours by SunLine's mobile
refueling vehicle. Because the vehicle's fuel capacity is only 28.8 diesel gallon
equivalent, refueling during the will be necessary during the workday. The reftieling
station located at the Palm Springs Airport will be utilized for this purpose. Cummins
Engine Company is the leading heavy-duty engine manufacturer for alternative fuel
products of greater than 150 horsepower. There are over 1,500 8.3 Natural Gas Engines
in use (mostly in transit applications).
Budget
The following is the implementation budget for the Program
Table 3
Program Budget
Category Original Budget Revised Budget
Amount Amount
Collection Vehicle $180,000.00 $197,649.87
Containers 17,000.00 17,000.00
Public education 25,000.00 7,350.13
Total 222 000 00 222,000.00
The Revised Budget calls for a reduction in public education expenditures to offset the
higher than anticipated cost of the Alternative Fuel Vehicle. This reduction will not
compromise the Program because it will be offset by an in-kind contribution by PSDS of
a newly hired Recycling Specialist to work one-on-one with participating businesses to
introduce the Program and provide training and follow-up. The Public education budget
will be used for printed materials and training supplies and services.
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Vehicle Cost
The cost of the Collection Vehicle is detailed in Table 4:
Table 4
Collection Vehicle Cost
Cost
Standard Cab & Chassis $ 88,655.60
CNG Engine Upgrade 34,485.00
CNG Fuel System Installation 16,509.27
Refuse Collection Body 48,000.00
Semi-auto lift mechanism 10,000.00
Total $197.649.87
Container Cost
Containers will be acquired in batches so that the size and type match the needs of
customers. The planned distribution of containers is described in Table 5.
Table 5
Containers
Description Unit Cost Quantity Total Cost
32-Gallon Carts $50 66 $ 3,300
64-Gallon Carts $100 100 10,000
2 Cubic Yard Bins $350 10 3,500
Total 16 800
Program Operating Cost
PSDS will provide the operating and maintenance costs of the Program. Program
Operating Costs are detailed in Table 5:
Table 6
Program Operating Costs
Expense Category Annual Cost
Labor Expense:
(1)Driver/Collector $27,000
Overtime 2,700
Payroll Burden 10,395
Uniform Expense 180
Total Labor Expenses 40,275
Vehicle O&M Expense:
Fuel & Oil 19,614
Repairs &Maintenance 13,160
Tire Expense 5,500
Total Vehicle O&M Exp. 39,274
Vehicle License Expense 2,400
Vehicle Insurance Expense 1,300
Container Repair Expense 1,000
Office Supplies 500
TOTAL EXPENSE 83 749
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Schedule
The Collection Vehicle will be ordered immediately following approval by the City
Council; delivery is expected to take about 6-months. While awaiting delivery of the
vehicle, containers will be acquired, education materials prepared and initial customers
selected and employees trained. The Program is scheduled to start about September ls`
Staff recommends the endorsement of the program by the Council, since the program was
developed as part of the already-approved Franchise Amendment No. 4. The financial
incentives in the rate structure should induce a number of businesses into the program,
and it's clear that many businesses, particularly the larger hotels, have in interest in
increasing their waste diversion levels.
JOHN S. AYMOr� I
Dirscto�r f Manag ment & Budget
APPROVED:
City Manager
ATTACHMENTS:
1. Minute Order
5
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AMENDMENT TO EXHIBIT A OF THE
FRANCHISE AGREEMENT WITH PALM SPRINGS DISPOSAL
SERVICES CREATING A RATE STRUCTURE FOR
PARTICIPATION IN THE COMMERCIAL FOOD WASTE
COLLECTION PROGRAM
New Monthly Rate
Service for Collection of Current Rate for
Source Separated Regular Waste
Food Waste Collection
32-Gallon Cart $10.42 $20.42
64-Gallon Cart $14.51 $24.76
2 Cubic Yard Bin $57.94 $80.70
7
RESOLUTION NO. 19754
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING THE COMMERCIAL FOOD
WASTE COLLECTION PROGRAM DEVELOPED BY PALM
SPRINGS DISPOSAL SERVICES AND AMENDING
EXHIBIT A OF THE FRANCHISE AGREEMENT TO
REFLECT MODIFIED RATES FOR PARTICIPATION IN
THE PROGRAM,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
approving the Commercial Food Waste Collection Program developed by Palm Springs
Disposal Services and amending Exhibit A of the Franchise Agreement to reflect modified
rates for participation in the program.
ADOPTED this 161h day of February,2000.
AYES: Members Hodges, Jones, Oden, Reller-Spurgin and Mayor Kleindienst
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM