HomeMy WebLinkAbout10/3/2007 - STAFF REPORTS - 5.A.a�EPALM Sp?
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City Council Staff Report
DATE: October 3, 2007 New Business
SUBJECT: ONE-TIME CAPITAL EQUIPMENT GRANT OF $2 MILLION FROM THE
CITY'S SOLID WASTE DIVERSION FACILITY FUND TO PALM
SPRINGS DISPOSAL SERVICES FOR THE IMPLEMENTATION OF A
SINGLE STREAM RECYCLING PROGRAM
FROM: David H. Ready, City Manager
BY: Troy Butzlaff, Assistant City Manager — Administrative Services
SUMMARY
The City has entered into a franchise agreement with Palm Springs Disposal Services
for the collection, transportation, recycling and disposal of solid waste and recyclable
material accumulating within the City. Under this agreement, Palm Springs Disposal
Services provides the current two -bin recycling program. This method is inefficient
insofar that it requires residents to separate their recyclables into individual bins. The
City has been working with Palm Springs Disposal Services to implement a single
stream recycling program which simplifies the recycling process by allowing residents to
place all recyclable materials into one container. In order to implement this program,
Palm Springs Disposal Services will be required to purchase new automated collection
vehicles and replace the existing resident collection bins with a new co -mingled
container. The estimated cost of the required new equipment is $2 million. To avoid
passing these costs to residents, staff is proposing that Council approval of a one-time
capital equipment grant from our Solid Waste Diversion Facility Fund to reimburse Palm
Springs Disposal Services for the acquisition of the vehicles and containers in an
amount not to exceed $2 million.
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A ONE-TIME CAPITAL
EQUIPMENT GRANT OF UP TO $2 MILLION DOLLARS BASED ON ACTUAL
COSTS FROM THE CITY'S SOLID WASTE DIVERSION FACILITY FUND TO
PALM SPRINGS DISPOSAL SERVICES TO ACQUIRE VEHICLES AND
EQUIPMENT NECESSARY TO IMPLEMENT A SINGLE STREAM RECYCLING
PROGRAM AND PROVIDE DIRECTION TO THE CITY ATTORNEY TO
PREPARE A CORRESPONDING AMENDMENT TO THE FRANCHISE
ITEM NO.
City Council Staff Report
October 3, 2007 -- Page 2
Grant for Single Stream Recycling Program
AGREEMENT TO EFFECTUATE THE IMPLEMENTATION OF THIS
PROGRAM"
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA AMENDING THE BUDGET FOR THE
2007-08 FISCAL YEAR."
STAFF ANALYSIS:
The City's franchise agreement with Palm Springs Disposal Services provides for solid
waste collection, disposal and recycling services. This agreement expires in 2014 and
may be extended, at the City's option, for an additional four (4) year term to 2018. The
recycling program that Palm Springs Disposal Services currently provides the
community requires residents to separate their recyclable materials by commodity type
and place these materials into separate bins for collection. The "two -bin" system is less
efficient than other recycling methods and does not provide sufficient capacity for
recyclable materials due to the size limitation of the bins. Studies of recycling programs
have shown that people are less likely to participate in recycling if the program is
inconvenient or requires more effort.
The City has been discussing with Palm Springs Disposal Services the idea of
converting the existing two -bin system into a single co -mingled container, commonly
known as a "single stream recycling program." The convenience of single stream
recycling greatly increases participation with household recovery (usually measured in
pounds per household), potentially up to 30 percent more recyclable materials collected
according to our contractor's analysis. Moreover, today, an estimated 100 city and
regional single stream programs are in operation in 22 states serving about 22 million
people; this is compared with 11 states and 16 million people five years ago, according
to an independent research firm.
A single stream recycling program offers many benefits over the existing "source
separate" program. For example:
• Single stream recycling simplifies recycling - all recyclable materials are mixed
together in one container;
• Single stream recycling is easy, resulting in higher participation rates and
increased material collection;
• The hinged lids on the container deter scavengers and also reduce litter by
preventing recyclable materials from being strewn about the street;
• The wheeled containers used in a single stream program make transportation
easier and requires no heavy lifting; and
• Single stream recycling offers more flexibility than other recycling programs by
allowing the City to expand into other types of recyclables such as telephone books
City Council Staff Report
October 3, 2007 -- Page 3
Grant for Single Stream Recycling Program
and mixed residential paper, without adding additional bins or expensive
equipment.
The City's agreement with Palm Springs Disposal Services allows for changes in
service, including implementation of new programs and/or the modification of existing
programs. Palm Springs Disposal Services has indicated an interest in implementing a
single stream recycling program and has prepared a cost estimate and program outline
which is attached.
Palm Springs Disposal Services has estimated the initial capital costs to purchase new
collection vehicles, which are necessary to implement a single stream program, and to
replace the existing two -bins with a new single co -mingled container to be around $2
million. This amount also includes the cost of distributing the estimated 17,000
containers throughout the community, as well as the cost of creating public education
materials to inform the community about the program.
As the City is requesting this program, which is extraordinary to our current franchise
agreement, Palm Springs Disposal Services would be entitled to recover these
increased capital and operational costs — which would result in a rate increase.
According to figures provided by Palm Springs Disposal Services, the estimated cost
charged to each household for the new program would amount to $4.03 per month.
However, to avoid increasing rates for residential customers, staff and Palm Springs
Disposal Services have explored a variety of funding options, including using the City's
Solid Waste Diversion Facility Fund to acquire the capital equipment costs to implement
the program. Based on our analysis, we recommend that the City Council approve a
one-time capital grant of $2 million from this Fund.
This fund was established to provide a mechanism to assist Palm Springs Disposal
Services with the construction of a diversion facility which would compliment our
recycling efforts. However, due to changing market conditions this facility was never
realized. Instead, there is a separate private sector effort, which is being led by another
waste company operating in the Coachella Valley, to build a regional diversion facility
near Indian Avenue in North Palm Springs. Since a diversion facility was never
constructed, the City has utilized the Solid Waste Diversion Facility Fund over the past
few years to fund various solid waste and recycling programs, such as electronic waste
collections and shredding events, to augment its diversion efforts. The proposed "single
stream recycling" program is in furtherance of the Fund's intent to expand recycling
services and to increase the diversion of materials from landfill disposal.
Since the current rate structure paid by residential customers includes the cost of
recycling services provided under the current program, there will be no increase in rates
to cover operational expenses. Palm Springs Disposal Services is anticipating that any
incremental operational costs of the new program will be offset by avoided disposal
costs and/or increased revenues from the recyclable materials.
City Council Staff Report
October 3, 2007 -- Page 4
Grant for Single Stream Recycling Program
Staff is currently finalizing an amendment to the franchise agreement to memorialize the
implementation of this program. However, as estimates to acquire the necessary
equipment may take up to six months, your approval of the proposed resolution will
authorized Palm Springs Disposal Services to place orders for the collection vehicles
immediately in an effort to more expeditiously implement the program.
FISCAL IMPACT:
The Finance Director indicates that there is an unencumbered balance of $4.1 million
available in the Waste Diversion Facility Fund. If the City Council approves this request,
a budget resolution amending the current year budget will be needed. The City will
reimburse Palm Springs Disposal Services for actual costs associated with capital
equipment acquisition (vehicles and residential recycling containers), program
implementation and the development of educational materials in an amount not to
exceed $2 million.
i
T Sutzla Istant City Manager
Attachment:
David H. Ready, C"meager
1. Resolution Approving Grant to Palm Springs Disposal Services
2. Resolution Amending Fiscal Year 2007-08 Budget
3. Palm Springs Disposal Services' Description of the Single Stream Recycling Program
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING A ONE-TIME
CAPITAL EQUIPMENT GRANT OF UP TO $2 MILLION
DOLLARS FROM THE CITY"S SOLID WASTE DIVERSION
FACILITY FUND TO PALM SPRINGS DISPOSAL SERVICES
TO ACQUIRE VEHICLES AND EQUIPMENT NECESSARY TO
IMPLEMENT A SINGLE STREAM RECYCLING PROGRAM
AND PROVIDE DIRECTION TO THE CITY ATTORNEY TO
PREPARE A CORRESPONDING AMENDMENT TO THE
FRANCHISE AGREEMENT TO EFFECTUATE THE
IMPLEMENTATION OF THIS PROGRAM
WHEREAS, the City has entered into a franchise agreement with Palm Springs Disposal
Services for solid waste collection, disposal and recycling services; and
WHEREAS, Palm Springs Disposal Services currently collects recyclable materials using a
two -bin program; and
WHEREAS, under the current two -bin recycling program residents are required to separate
their recyclable materials by commodity type and place these materials Into separate bins for
collection; and
WHEREAS, the current two -bin recycling program is inefficient, does not provide sufficient
capacity for recyclable materials due to the size of the bins and requires residents to spend
more time separating their recyclables by commodity type; and
WHEREAS, studies of the two -bin recycling program indicate that residents are less likely to
recycle due to the additional time required to separate the recyclable materials by commodity
type; and
WHEREAS, the franchise agreement with Palm Springs Disposal Services allows for changes
in service including implementation or new programs and/or the modification of existing
programs; and
WHEREAS, the City is interested in converting the current two -bin recycling program into a
single co -mingled bin commonly known as a single stream recycling program; and
WHEREAS, a single stream recycling program simplifies the recycling process by allowing
residents to place all recyclable materials into one large container; and
WHEREAS, by simplifying the recycling process and making it more convenient, communities
with a single stream recycling program enjoy much higher participation rates, resulting in
higher diversion rates than communities with source separated recycling programs; and
WHEREAS, the type of bin used in a single stream recycling program discourages scavenging
and decreases the likelihood of loose materials blowing around; and
WHEREAS, the City and Palm Springs Disposal Services would like to proceed with the
implementation of a single stream recycling program as soon as practicable; and
WHEREAS, conversion to the single stream recycling program will necessitate the purchase of
several new collection vehicles and the replacement of the existing two -bins that each resident
has with a new single commingled bin; and
WHEREAS, Palm Springs Disposal Services has indicated that, depending on the availability
of equipment and when their order is placed, it may take up to six (6) months to implement this
program; and
WHEREAS, Palm Springs Disposal Services has estimated the cost to acquire the necessary
vehicles and bins to implement this program at $2,000,000; and
WHEREAS, The City Council desires to implement this program without increasing collection
fees to resident rate payers which Palm Springs Disposal Services would be entitled to recover
under the terms of the franchise agreement for additional programs; and
WHEREAS, to expedite the implementation of this program and to avoid increased costs to
residential customers, the City desires to make a one-time capital equipment grant from its
solid waste diversion facility fund to Palm Springs Disposal Services.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Palm Springs,
California does hereby approve a one time capital equipment grant to Palm Springs Disposal
Services of $2,000,000 from the City's solid waste diversion facility fund. This grant will be
used to cover the anticipated cost of three (3) recycling collection vehicles, three (3) scout
vehicles, approximately 17,200 60+/-gallon recycling bins and other costs associated with the
implementation of a single stream recycling program. This grant will be paid to Palm Springs
Disposal Services based on actual expenses incurred up to the maximum amount established
above.
BE IT FURTHER RESOLVED, that the City Council does hereby direct the City Attorney's
Office to prepare a corresponding amendment to the existing franchise agreement with Palm
Springs Disposal Services to effectuate the single stream program and to document the City's
one-time capital equipment grant.
ADOPTED this day of 2007.
AYES:
NOES:
ABSENT:
r3.r*41111l
City Clerk
CITY OF PALM SPRINGS, CALIFORNIA
City Manager
REVIEWED AND ADOPTED AS TO FORM -
City Attorney
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR THE 2007-08 FISCAL YEAR.
WHEREAS Resolution approving the budget forthe fiscal year2007-08 was adopted
on 2007; and
WHEREAS the City Manager has recommended, and the City Council desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter -fund cash transfers as required in accordance with this Resolution, and that Resolution
adopting the budget for the 2007-08 fiscal year is hereby amended as follows.
SECTION 1. ADDITIONS
Fund Activity Account Amount
125 Special Contribution 1280-42691 $2,000,000
Purpose: To provide additional funds for building repairs.
SECTION 2. SOURCE
Fund
Activity
Account
Amount
125
Fund Balance
0000-29301
($2,000,000)
Adopted this day of
AYES:
NOES:
ABSENT:
r50111! 6
James Thompson, City Clerk
2007.
Mayor
SINGLE STREAM RECYCLING PROGRAM
FOR PALM SPRINGS RESIDENTS
An enhanced recycling program will soon be available to all Palm Springs residents who subscribe to
individual trash collection. Palm Springs Disposal Services have proposed the `Single Stream
Recycling Program', so called because it allows Residents to combine all of their recyclable materials
into a single container for collection.
FEATITI2ES
+ Each dwelling will receive a large 60+ gallon cart equipped with wheels and hinged lids.
+ PSDS will collect recyclables eveekly with clean fuel vehicles equipped with automated arms
that lift, empty and return the carts curbside.
COST
do The curbside program will NOT cost residents anything additional; and,
i- Progratn equipment and start-up costs total $2 million for Collection vehicles ($903,100), carts
($935,000), scout vehicles for walk-in service ($45,000), cart assembly & distribution
(SS1,000) and public education flyers & vehicle preparation (S31,900) will be covered by the
Recycling fund with a current unencumbered balance of S4,500,000.
SERVICE OPTIONS
Two additional cost service options will be offered.
�= Walk -In Service -- Residents subscribing to Walk -In Trash Service have the option of also
subscribing to Walk -hi Recycling Service for $4.47 per month.
f_ Extra Carts — Residents requiring more recycling capacity may add carts Ibr $2.00 each per
month.
PROGRAM BENEFITS
+' Convenience — Residents will no longer need to separate containers from paper products.
+ Greater Capacity — The Carts provide substantially more capacity for Recyclablcs.
SCavenslina Discouraged — The current Two -Bin system separates high value recyclables and
puts them within easy reach for scavengers to steal. The Carts will discourage theft because of
their size amd the fact that all materials will be commingled.
1- Increased Diversion — Convenience, more capacity, reduced theft and the Walk -In service
option will each contribute to greater participation and more materials recycled. Residential
diversion is projected to increase from 1,600 tons to 4,500 tons per year.
PUBLIC OUTREACH
A public outreach program will infonn and educate residents about the progr-arn.
Quarterly newsletters will feature multiple program announcements.
1 Carts will be displayed at City Hall and other public venues to heighten awareness.
cF Information packets will be distributed with the Carts and with changes in property ownership.
IMPLEMENTATION
'J"` The steps to implement the program include ordering vehicles, designing and printing
educational materials, ordering carts, outfitting and testing vehicles, training drivers,
assembling and delivering carts to each household.
The critical step is the ordering and delivery of collection vehicles because manufacturers are in
the process of switching over to the next generation of clean natural gas engines.
$w Program start-up should occur within 231 days after approval.
0927/07 (bk)
ONE-TIME CAPITAL EQUIPMENT GRANT OF $2 MILLION FROM THE
CITY'S SOLID WASTE DIVERSION FACILITY FUND TO PALM
SPRINGS DISPOSAL SERVICES FOR THE IMPLEMENTATION OF A
SINGLE STREAM RECYCLING PROGRAM:
RECOMMENDATION: 1) Adopt Resolution No. , "A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING A ONE-TIME CAPITAL EQUIPMENT
GRANT OF $2 MILLION FROM THE CITY'S SOLID WASTE DIVERSION
FACILITY FUND TO PALM SPRINGS DISPOSAL SERVICES TO
ACQUIRE VEHICLES AND EQUIPMENT NECESSARY TO IMPLEMENT
A SINGLE STREAM RECYCLING PROGRAM AND PROVIDE
DIRECTION TO THE CITY ATTORNEY TO PREPARE A
CORRESPONDING AMENDMENT TO THE FRANCHISE AGREEMENT
TO EFFECTUATE THE IMPLEMENTATION OF THIS PROGRAM;' and
2) Adopt Resolution No. , "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING
THE BUDGET FOR FISCAL YEAR 2007-08."
MATERIALS TO BE PROVIDED
Item No. 5 . A •