HomeMy WebLinkAboutItem 8.1 WMgmtCommlRecylAgmt CITY CLERK
Fi I e # 600-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE' June 3, 2003
SUBJECT: Commercial Recycling Program Agreement Extension
Prepared by: Jason Behrmann, Administrative Analyst
EXHIBITS ATTACHED: 1. School Recycling Participation
2. Proposal from Waste Managment to extend the Commercial
Recycling Program
3. Agreement for Services, outlining scope of work for 24-month
program
RECOMMENDATI~ ~/ Authorize the City Manager to execute the Agreement
FINANCIAL STATEMENT: The program will be funded entirely through rates and recycling
revenue. No City subsidy is required.
DESCRIPTION:
On March 1, 1999, the City entered into an Agreement with Waste Management (WM) to develop and
implement an Expanded Commercial Recycling Program. The initial Agreement was subsequently
extended several times, with the most recent extension covering the period from July 1, 2001 through June
30, 2003. Staff recommends that the term of the Agreement be extended for another 24-month period
from July 1, 2003 - June 30, 2005.
BACKGROUND:
The Commercial Recycling Program has changed significantly since it was originally expanded in March
1999. The program has largely been successful, with the number of accounts increasing from 60 in March
1999 to 203 as of May 2003.
Most of the success of the Commercial Recycling Program can be attributed to reducing the amount of
sorting required of the businesses. The original system required businesses to separate office paper,
corrugated cardboard and newspaper as well as plastic, glass and metal cans and bottles. With the most
recent extension beginning in July 2001, the Commercial Recycling Program ~vas improved by modeling
it after the City's highly successful single stream residential curbside recycling program. The cra-rent
program allows businesses to combine, into one recycling bin, envelopes, sticky notes, file folders, junk
mail, glossy paper, catalogs, cardboard, newspaper, paperboard, glass bottles, plastic bottles, and
aluminum and tin cans. This program makes it easy for businesses to recycle, and has resulted in
significant improvements in participation over the past two years.
COPIES TO: Patrick Gavin, Waste Management
ITEM NO. ~*
The proposed Commercial Recycling Program extension will continue the success of the current program.
The attached Agreement specifies that WM will retain an inside sales person to market the program. Part
of the marketing approach is to meet one-on-one with companies in order to assess their waste stream and
demonstrate how they can save money by participating in the Commercial Recycling Program.
SCHOOL DISTRICT RECYCLING PROGRAM:
As a commercial account, the schools are included in the Commercial Recycling Program. City Staff and
WM Staff continue to work with district representatives to improve the schools' current recycling
programs. As shown in Attachment 1, all schools are participating in the recycling program. Additionally,
WM has been meeting with several schools to discuss participation in the new commercial food waste
program. WM Staff has indicated that a pilot school food waste program is scheduled for Murray
Elementary School beginning in Fall 2003.
RECYCLING RATES:
In previous years, WM has requested a subsidy from the City to keep the recycling rates low in order to
provide a greater financial incentive for businesses. Due to greater efficiencies created by the increased
number of commercial recycling accounts, WM is not requesting a City subsidy for the proposed
extension period July 1, 2003 - June 30, 2005. As shown in Attachment 2, WM has developed a recycling
rate structure that allows businesses to save money if they recycle enough to reduce their garbage service
level. While recycling rates will remain at their current low level, commercial garbage rates are proposed
to increase slightly in Fiscal Year 2003-2004, thereby creating an even greater incentive to add recycling
and reduce garbage service.
In order to extend the term of the Agreement, an Agreement amendment is required (Attachment 3). This
Agreement covers the 24-month period from July 1, 2003 to June 30, 2005.
STAFF RECOMMENDATION:
Staff recommends that the Council authorize the City Manager to execute the Agreement extending the
Commercial Program through June 30, 2005.
05/23/2003 13:50 92537140~5 ~DD OPERATIONS PAG~ 01
RECYCLING SERVICES FOR SCHOOLS IN THE CiTY OF DUBLIN
SCHOOL 5123/03 RECY'CLING
NAME SIZE OF BIN & COMMODITY SERVICE
1-:3 yard Cardboard E~in 1 x week Wed
Dublin Elementary 1-2 yard Single Steam Bin 1 x w=ek Wed
7997 Vomac Rd. 1-96 gal Single Stream Cart I x week Wed
'1-4 yard Cardboard Bin 1 x week wed
Dublin High School 1-2 yard Single Stream Bin 1 x week Wed
81,51 Vilfe§e Parkway 1-96 gal Single Stream Cart '1 x week Wed
Murray School '1-3 yard Cardboard Bin 1 x week Wed
8435 Davona Dr 3-96 gal Single Stream Carts 1 x week Wed
Nielsen School 1-3 yard Cardboard Bin I x week Wed
7500 Amarillo Rd 3-96 gel Single Stream Carts 1 x week Wed
1-3 yard Cardboard Bin 'I x week Wed
1-2 yard Single Stream Bin I x week Wed
Frederiksen School 1-96 gal Single Stream Cart 1 x week Wed
7423 Tamarack Dr 1-96 gal Single Stream Cart 1 x week Wed
Valley High School
6901 York Dr '1-96 gal Single Stream Cart 'I x week Wed
Wells School '1-4 yard Cardboard Bin 1 x week Wed
......... 6_~0__P_e. 0n.._~r .... ~l.~2_y~[d Single Stream Bin 1 x week Wed
1-3 yard Cardboard Bin 1 x week Wed
District Office 1-2 yard Single Stream Bib 1 x week Wed
7471 Larkdale Ave 1-96 cja[ Single Stream Cart I x week Wed
Dougherty School 1-3 yard Cardboard Bin 1 x week Wed
6301 Hibernia 2-96 gal .single stream.Carte 1 x week Wed
A"I-I-ACH M ENT I
MAY-23-200~ 02:53PM TEL]925~?i40~S ID]CITY OF DUBI
wAs~-; ~nAmAGE=;=; WASTE MANAGEMENT
6175 Southfront Road
Livermore, CA 94551
(925) 447-i300
April 30, 2003 (925) 447-7144 Fax
Mr. Jason Behrmann
Administrative Analyst
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Re: Commercial Recycling Agreement renewal
Dear Jason,
Enclosed you will find Waste Management's proposal for the renewal of the Commercial
Recycling Agreement with the City of Dublin. The current agreement expires June 30,
2003, the attached proposal is for the July 1, 2003 through June 30, 2005 term. We have
been pleased to offer the commercial customers in Dublin a single stream recycling
program these past two years, and hope to continue to do so in the future.
The single stream program has made recycling easier for businesses and schools to
recycle and has contributed to increased diversion amounts. Businesses no longer have to
sort recyclable materials, they are able to be deposited into one container. Our goal is to
make recycling a regular practice in the lives of Dublin residents and business people.
The single stream program offered has seen a steady increase in recyclable material
tonnage diverted from our landfills toward recycling.
Our Recycling Coordinator, Sheila Fagliano continues her Commercial Recycling
campaign to solicit new customers, and looks for ways to enhance existing programs.
She sends out letters and outreach information to new customers and customers currently
not participating in the program. She follows up to her letter with a phone call and offers
a free assessment of their waste stream. This interactive assessment is a chance to
educate customers on the value of recycling and discuss acceptable items of our current
program. Continued outreach and education are a key factor to a successful and lasting
program. Ms. Fagliano continues to work with the Dublin School District staff to
improve recycling and school participation and offer new and innovative ways to make
recycling fun.
With the increase commercial rates, this will continue to encourage recycling. For
example a commercial customer who recycles:
Al-I-ACH M ENT 2
1 - 3 yard bin 3x week Garbage $400.82
1 - 3 yard bin 2x week Cardboard $125.00
2 - 96 gallon lx week Mixed Containers $ 34.00
Monthly Total $559.82
Service without Recycling
2 - 3 yard 3x week Garbage $801.64
A SAVINGS OF $241.82 PER MONTH
Another example is a commercial customer who does not recycle, but if they did, they
too could save.
2 - 4 yard 2x week Garbage $696.22
If they recycled,
1 - 4 yard 2x week Garbage $348.11
1 - 4 yard 2x week Cardboard $165.00
Monthly Cost $513.11
A SAVINGS OF $183.11 PER MONTH
Attached please find two exhibits reflecting operating cost and recycling revenue.
Please feel free to contact me with any questions or concerns.
Sincerely,
Patrick Gavinv'i~/
District Manager
PG03007dub.sm
Attachment
LIVERMORE DUBLIN DISPOSAL
COMMERCIAL RECYCLING PROGRAM
CITY OF DUBLIN
Estimated Program Cost
Operational Cost
Labor:
2988 Hours x $37.21 including Benefits $ 111,191
Truck Costs:
Includes Oil, Diesel, License, Etc. 39,461
Truck Maintenance 53,791
Truck Parts, Radio, Etc. 14,942
Tires 4,483
Depreciation (Trucks & Containers) 26,959
Total Operating Costs $ 250,827
Materials Processinq
Recycling Materials:
Processing Cost, 1970 tons @ $ (1.00)/Ton Net $ (1,969.68)
Sales & Marketing
Inside Sales Person $ 62,730
Direct Mailing/Postage 7,500
Total Sales & Marketing $ 70,230
Subtotal Cost $ 319,088
Profit 10% 31,909
TOTAL COST $ 350,996
Estimate Recycling Rate Revenue: $ 343,848
Shortfall $ 7,148
SUBSIDY REQUESTED $ 0
LIVERMORE DUBLIN DISPOSAL
COMMERCIAL RECYCLING PROGRAM
CITY OF DUBLIN
Estimate Recyling Rate Revenue
Month Year
52 Customers average account
$17 per month $ 884.0 $ 10,608
35 Customers average account
$22 per month $ 770.0 $ 9,240
45 Customers average account
$43 per month $ 1,935 $ 23,220
69 Customers average account
$63 per month $ 4,347 $ 52,164
53 Customers average account
$83 per month $ 4,399 $ 52,788
8 Customers average account
$116 per month $ 928 $ 11,136
8 Customers average account
$133 per month $ '1,064 $ 12,768
TOTAL $ 17'1,924
TOTAL FOR 24 MONTHS $ 343,848
AMENDMENT TO COMMERCIAL RECYCLING AGREEMENT DATED MARCH 1, 1999 ~,,
THIS AMENDMENT is made at Dublin, California, for a 24-month period, from July 1, 2003, to June
30, 2005, by and between the CITY OF DUBLIN, a municipal corporation ("CITY"), and Waste Management
of Alameda County, doing business as Livermore Dublin Disposal ("CONTRACTOR"), who agree as follows:
1. SERVICES. Subject to the terms and conditions set forth in this Agreement, CONTRACTOR
shall provide to CITY the services described in Exhibit A. CONTRACTOR shall provide said services at the
time, place and in the manner specified in Exhibit A.
2. PAYMENT. CITY shall not be required pay CONTRACTOR for services rendered pursuant to
this Agreement.
7. NOTICES. Any written notice to CONTRACTOR shall be sent to:
Patrick Gavin, District Manager
Livermore Dublin Disposal
6175 South Front Road
Livermore, CA 94550
Any written notice to CITY shall be sent to:
Jason Behrmann, Administrative Analyst
City of Dublin
P. O. Box 2340
Dublin, CA 94568
Executed as of the day first above stated:
CITY OF DUBLIN
Attest: a municipal corporation
City Clerk
By.
"CITY"
Approved as to form:
By.
City Attorney "CONTRACTOR"
ATTACHMENT 3
EXHIBIT A
SCOPE OF SERVICES
CONTRACTOR will continue to develop and implement a commercial recycling program, which will be
available to all commercial accounts within the City of Dublin. The program consists of the following:
· "Single Stream", which includes envelopes, sticky notes, file folders, junk mail, glossy paper, catalogs,
cardboard, newspaper, paperboard, glass bottles, plastic bottles, and cans all combined into one bin.
CONTRACTOR may establish collection rates for commercial recycling, with the intent to increase
participation by commercial businesses in the City of Dublin.
CONTRACTOR will aggressively market the single stream recycling program. CONTRACTOR will retain an
inside sales person to make contacts with all commercial accounts in the City of Dublin. This person will send
direct mailings to all of the commercial accounts, and will follow up with telephone calls promoting the
program. Businesses can then meet with Waste Management's Recycling Manager, who will assess their waste
stream and show them how they can save money by participating in the recycling program.
CONTRACTOR will also continue to work with Dublin School District staff regarding the program, and will
work with District liaisons to improve participation in the school program within the parameters of the
commercial recycling program.
CONTRACTOR will provide CITY with monthly Tonnage Reports and two annual Progress Reports on
marketing activity and business participation rates. The Progress Reports will be submitted to the City annually
by the following dates:
1. October 31
2. April 30
EXHIBIT A