Non-Exclusive Solid Waste Collection Franchise System

1
Non-Exclusive Solid Waste Collection Franchise
System Review

• September 29, 2014

2
Overview

• Continuation of review of Citys franchise system
• Seeks to answer 2 questions
• What system is best for Pasadena today?
• What steps Pasadena should take to meet
  anticipated future needs?
• City sustainability conservation policies
• Zero Waste Strategic Plan
• Current expected state legislation
• AB 1826 commercial organics recycling

3
Chronology

• April 8, 2014 MSC recommended City Council
  retain closed system place franchisees on
  5-year notice of intent to consider modification
  to franchise system
• April 28, 2014 City Council deferred action
  directed staff to
• Update PMC to address composting haulers
• Provide information on CD haulers inert
  materials

4
Chronology

• September 9, 2014 MSC unanimously recommended
  City Council approve recommendations contained in
  report
• Requested staff review definition of organics in
  response to public comments

5
Recommendations

• Direct City Attorney to amend PMC Chapters 8.60
  (Solid Waste) 8.61 (Franchise System) return
  to City Council in 90 days
• Open non-exclusive franchise system to composting
  haulers for processing organic, yard waste
  other compostable material from commercial
  residential accounts to state approved/permitted
  composting facilities

6
Recommendations

• Retain closed franchise system for solid waste
  construction demolition (CD) haulers
• Direct City Manager to place solid waste
  composting haulers on notice of Citys intent to
  consider modification of current non-exclusive
  system including possibility of moving to
  exclusive system in 5 years (excludes CD-only
  haulers)

7
PMC Amendments

• Proposed amendments to PMC Chapters 8.60 (Solid
  Waste) 8.61 (Solid Waste Collection Franchise)
• Allow composting haulers to collect organic, yard
  waste other compostable material from
  residential commercial properties
• Organics materials that are or were living
  (leaves, grass, crop residues food scraps)
• Other compostable material material confirmed
  in writing as compostable by certified processing
  facility

8
Composting

• Open franchise system to composting haulers
• Processing organic, yard waste other
  compostable material from commercial
  residential accounts
• Diversion opportunity
• 42 of Pasadena materials disposed of in
  landfills are compostable (2008 Statewide Waste
  Characterization Study)
• Moves City toward Zero Waste Goal of 87
  diversion by 2040
• Provides additional options for AB 1826
  compliance

9
Composting

• New composting franchises
• Will be awarded to haulers meeting requirements
• Remain open be evaluated in next franchise
  system review in 3 years
• What to expect
• Manageable number of new haulers to enter
  franchise system
• Limited number of processing facilities in region
• Cost of transporting processing material

10
CD Debris

• Retain closed franchise system for CD collection
• Processing of material generated from
  construction, renovation, demolition paving
  projects
• CD debris gravel, plaster, wallboard, metals,
  glass, plastic pipe, roofing, carpeting wood
• Inert material rock, concrete, brick, sand,
  soil asphalt

11
CD Debris

• Why keep CD franchise closed
• Adequate number haulers (21 of 22) provide
  service
• Each hauler exceeds 75 diversion requirement
• 77 - 100 diversion in FY 2013
• Additional franchises will not increase diversion
  since diversion primarily based on processing
  facilities certified diversion percentage
• 9 CD processing facilities certified by City of
  LA have 75 or higher diversion rates

12
5-Year Exclusive Notification

• Place solid waste composting haulers on notice
  of Citys intent to consider modification of
  current non-exclusive system including
  possibility of moving to exclusive system in 5
  years (excludes CD-only haulers)
• Enables City to be prepared if adjustments needed
• Supports City sustainability conservation
  policy directions anticipated state legislation
• Does not obligate City to pursue system
  modification

13
5-Year Exclusive Notification

• Why issue notice to new composting haulers
• Provides flexibility for City as industry matures
• Difficult expensive to site, permit operate
  organics processing facilities
• Exclusive organics franchise(s) may be most
  cost-effective service option
• Processors need consistent tonnages to develop
  operate facilities

14
5-Year Exclusive Notification

• Why exempt CD-only haulers from notice
• 6 of 22 haulers provide CD services only
• All haulers exceed mandatory 75 diversion
  requirement
• If 5-year notice issued, haulers may stop
  investing in advanced technologies knowing they
  will not be able to compete to become exclusive
  provider if new service model implemented
• Municipal industry trend is toward exclusive
  systems where CD service is exempted

15
Proposal Summary

• Amend PMC Chapters 8.60 (Solid Waste) 8.61
  (Franchise System) return to Council in 90 days
• Open non-exclusive franchise system to composting
  haulers for processing organic, yard waste
  other compostable material from commercial
  residential accounts to state approved/permitted
  composting facilities
• Retain closed franchise system for solid waste
  CD haulers
• Notify solid waste composting haulers of intent
  to consider moving to exclusive system in 5 years
  (excludes CD-only haulers)