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HomeMy WebLinkAboutItem 6.4 Implement Recycle America Program (2) CITY OF DUBLIN ('oo- so AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 23, 1990 SUBJECT: Implementation of Recycling Program Mandated by State Law (Prepared by: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: Proposed Agreement and Proposal Submitted by Livermore Dublin Disposal; Resolution. RECOMMENDATION: 1 ) Receive Staff Report; 2) Receive Public Testimony; 3)Deliberate; 4) Adopt Resolution; 5) Provide Staff with Direction on the Issue of Mandatory Garbage Service. FINANCIAL STATEMENT: The proposed Agreement includes a fee of $1 .25 per month which would be added to the Single-Family Residential Garbage Bill. DESCRIPTION: Background on Mandate As previously discussed with the City Council, effective January 1 , 1990, the California Integrated Waste Management Law became effective. This State Law requires communities to reduce the amount of waste generated within the City Limits. The Law allows the California Integrated Waste Management Board to impose fines up to $10, 000 per day against communities who do not meet the requirements of the Law. The Law specifically identifies that each jurisdiction must divert from the landfill through source reduction, recycling, and composting 25% of the solid waste generated by January 1 , 1995. Further, the Law requires a 50% reduction by the year 2000. In addition, the City will be required to develop a recycling element which will become a part of the Alameda County Integrated Waste Management Plan. As discussed with the City Council at their December 21 , 1989 meeting, the League of California Cities has recommended that communities proceed with implementation of recycling programs as soon as possible. The Law will require a submittal of a recycling element at a later date, however, it is important that cities not wait to begin the process until they submit their plan. The required reductions are substantial and communities must begin working towards the goals as soon as possible in order to be successful. The City Council had directed Staff to work with the local garbage service provider (Livermore-Dublin Disposal) to develop a curbside residential recycling program. Staff solicited a structured proposal from Livermore- Dublin Disposal (LDD) for a full scale program. Staff has also been involved in lengthy discussions with company personnel to identify all elements of the program operation and refine them to address the needs of the City of Dublin. Proposal by LDD LDD has agreed to include their entire proposal as an addendum to the proposed Agreement. The Agreement provides initially for the September implementation of Single Family Residential Curbside Recycling. The Company will be required to invest in capital equipment such as a vehicle to service the program and the individual bins which will be distributed to residential garbage customers. It is proposed that the recyclables will be collected on the same day as the customer receives their regular garbage service. The customer will be required to place the recycling bins at the curb, whereas regular garbage service is considered backyard service and the customer does not need to move their trash receptacles to the curb. The bins will be used to allow customers a convenient way to separate clear glass, mixed color glass, and PET/plastic/tin/aluminum. The customer will either bag or tie newspapers next to the bins. Currently, PET plastics (similar to a large 2 liter plastic soda beverage bottle) are the only type of plastics which can be recycled. Plastic milk bottles are not made from the PET material. LDD has corporate relationships with Waste Management of North America and other firms involved in the processing of recycled materials. These --------------------------------------------------------------------------- COPIES TO: Mary Evans, Livermore-Dublin Disposal Dave McDonald, Oakland Scavenger Co. ITEM NO. A,4 relationships help strengthen the program which can be provided to Dublin residents. Phase Two Multi-Family and Commercial/Industrial LDD has agreed to research program design and pilot programs for multi- family dwelling and commercial/industrial facilities at their own expense. In the event that an actual program is developed requiring additional fees from these rate payers, the Agreement will need to be amended. The Second Phase of the Program would involve the full development of a recycling program focusing on the Multi-Family Units. Due to the configuration of these units, a different type of collection bin would need to be utilized and the project would require working with the property owners or landlords to implement the final program. The commercial portion of this program is even more specialized in that the type of recyclable materials would vary depending upon the type of waste generated. For example, bars and restaurants tend to generate a substantial amount of glass, whereas a retail business may generate corrugated cardboard. Therefore, the specialized nature of Phase II services will require more time to develop. Phase Three - Waste Oil Livermore Dublin Disposal has agreed to evaluate the provision of a residential waste oil collection program as part of the recycling services. The initial rate does not include the program, since there are several unknown factors which may impact the final program design. LDD is evaluating applicable laws to determine how the collection can be accommodated. It is also their hope that the information provided by the program operated by the East Bay Division of Oakland Scavenger Company will be helpful in designing our program. The Agreement provides that if Laws change in such a manner as to prohibit the implementation of an oil recycling program, then this phase would be deleted from LDD's obligations. Composting It is important to identify the fact that composting is a major element to achieving the goals required in State Law. Based on estimates within the proposal compared to the amount of waste currently generated in the community, Phase One of the Program would only result in a 5% reduction of waste. It is anticipated that composible materials comprise a large volume of the trash now generated from the community. The difficulty with implementing a composting program is to identify an end user for the composted product. LDD has agreed to work with the City to evaluate the addition of this type of program at a future date. Public Awareness Program The proposal by LDD includes the provision of public information and public awareness as part of their operation. Staff recognizes that public information related to the program is an important element to assuring that recycling is successful. However, given that the City is liable for penalties if these efforts are not successful, Staff believes that the City must have the ability to assume this responsibility. Provided that the City's efforts were comparable to those undertaken by LDD in the prior year the City has the ability to undertake the public information element. The Agreement provides that if the City elects to undertake the program that LDD would either reduce the rates or would pass through directly to the City the funds which would have been expended on the Public Information Program. Program Implementation Timing LDD has proposed proceeding with the implementation in September. The actual increase in the garbage rate would be effective July 1 , 1990. However, the Contractor needs the additional time in order to procure the necessary equipment and to develop public information items. Collection of Fees on Property Tax Bills At the December City Council meeting, the Council requested that Staff evaluate the implementation of garbage rate collection on the property tax bill. Staff considered this option, however, given that the recycling provider has access to the garbage billing system, it is not advantageous to further complicate the matter with a separate billing through the property tax system. Primarily, the use of the property tax was considered an alternative if the Council desired to initiate an RFP process which may have selected a provider who does not currently have a billing base within the community. Implementation on All Residents In discussing with LDD staff the proposed recycling program, Staff became aware that approximately 800 Single Family Residents are not currently serviced by garbage service. These residents would not receive the recycling service, nor would they be assisting the community in addressing the State mandated requirement to reduce solid waste. The current Solid Waste Ordinance allows individuals to remove their own garbage from their household. Some individuals prefer to handle the removal themselves rather than subscribe to the regular service. In addition, Staff has been informed in the past of some members of the local business community who also reside in the City and they dispose of their household waste at their place of business. One method of addressing the issue of nonsubscribers would be to develop a mandatory garbage service ordinance. Typically, this type of ordinance would require all households to have regular garbage service. If a household does not subscribe or in essence does not pay the charge, then the City would pursue recovery of the unpaid balance through a lien on the property tax. The garbage company is then assured that they will receive compensation from all households that they are serving. Staff would note that although a mandatory service would allow the opportunity for residents not currently receiving garbage service to recycle, there is not a mandatory requirement for individuals to recycle. In addition, by adding 800 additional customers to the recycling program, the cost of the program would not be reduced. This is due to the fact that the additional customers would result in the need for additional capital expenditures by the company. However, Staff has found that in some cases where property maintenance complaints relate to the lack of disposal of garbage, many times these individuals do not have regular garbage service. If the City Council believes that this issue should be investigated further, Staff can work with the City Attorney to develop a draft Ordinance to be considered at a future meeting. The implementation of a mandatory garbage service collection requirement could be implemented independent of the recycling proposal now before the City Council. It is important to note that the State mandates for Solid Waste Planning result in significant responsibilities in the area of solid waste. Therefore, there is a compelling consideration that all members of the community participate in reducing the waste stream to the landfill by recycling. The Proposed Agreement Staff has worked with LDD to structure the proposed Agreement. This Agreement primarily authorizes LDD to collect the $1 .25 fee on the Oakland Scavenger Company garbage bill. The Agreement is structured to allow for annual cost of living adjustments based on the increase in the CPI. The Agreement is independent of the City' s Franchise Agreement with the exception of allowing for the collection of the recycling fee along with the garbage bill. This structure results in a program in which LDD is assuming the entire market risk. This means that if the recycling ,resale market declines and the company does not achieve the revenue anticipated, they have assumed the risk of continuing to operate the program. If the recycling was included as part of the Franchise Agreement, the cost of operation would be evaluated and a rate of return applied in determining any adjustment to the rate. This results in a sharing by the City and/or customers of any risk associated with providing the service. Staff believe that proposed agreement is advantageous to the City and the customers. LDD initially proposed an agreement which would be in effect through September 1995. Due to the significant capital investment, they were not receptive to a shorter term. Based on the minimum requirement of five years, Staff suggested that the term be extended to March 31 , 1996. This coincides with the expiration of the City's current ten year garbage franchise agreement. The intent is to have consecutive terms for both agreements. Conclusion Staff would recommend that the City Council receive the report, receive any comments from LDD and the public, deliberate, and adopt the attached resolution. A . .1 AGREEMENT BETWEEN ;k THE CITY OF DUBLIN AND LIVERMORE DUBLIN DISPOSAL FOR THE DUBLIN RECYCLE AMERICA PROGRAM This agreement is made and entered into on this day of , ;y 1990 , by and between the City of Dublin, a California municipal 4,1 Corporation ( "CITY" ) , Oakland Scavenger Company ( "OSC" ) a it" California Corporation and Livermore Dublin Disposal , ( "LDD" ) , a i wholly-owned subsidiary of Oakland Scavenger Company . RECITALS A. On April 23 , 1990, the Dublin City Council approved comprehensive curbside recycling program for CITY ; subject to enactment of any ordinance modifications J ; required to implement the program; B . Prior to initiating the program LDD shall submit an Syr application and obtain a Recycling Transporter Permit a. pursuant to Dublin Ordinance N. 2-86 , C . LDD represents that it has the necessary resources , skill ' and expertise to provide a curbside recycling program for CITY ; D . OSC provides garbage collection service for CITY , pursuant to CITY' S Solid Waste Management Ordinance under a separate franchise contract with City entered into March 10 , 1989 ; rir E. This agreement is entered into pursuant to CITY ' S Solid ;- Waste Management Ordinance; ' F . The following document is hereby incorporated into this Agreement : LDD' s Letter of Intent - Dublin Recycling Program, dated February 13 , 1990 , which will be designated as Exhibit A. i Now, therefore, CITY , OSC and LDD agree as follows : w N� I . TERM OF AGREEMENT The term of this agreement shall be from September 4, 1990, to March 31 , 1996 inclusive . II . SERVICES TO BE PROVIQED LDD shall perform curbside recycling services in the City of Dublin as follows : A. Recipients of services : Upon commencement of services under this contract, LDD shall provide curbside pickup for those single-family residences in the City of Dublin which are current subscribers to the garbage collection service operated by OSC. LDD reserves the right to discontinue curbside pickup to any residents who do not pay the quarterly garbage invoice within 75 days of receipt, and to collect its recycling containers from those residents . B. Materials to be c9llect.P LDD shall collect and remove all ferrous and non-ferrous (aluminum) cans , newspapers , glass bottles and jars, and PET plastic bottles , which have been segregated in appropriate recycling containers and placed at the curbside. LDD shall instruct subscribers as to any necessary preparation of materials, such as removing labels from cans , and the appropriate use and placement of containers. If a subscriber fails to, comply with the instructions, LDD shall decline to pick up the recyclable materials, notify the subscriber of the reason and what steps must be taken to recommence pickup services . C . Containers : LDD shall supply each single-family residence with three color-coded plastic bins ; one for clear glass , one for mixed glass and one for ferrous cans , aluminum cans and PET plastic bottles . All bins shall be distributed by September 14, 1990 . Bins that are stolen from residents shall be replaced by LDD, when properly notified, up to a total of 250 sets (750 bins ) annually throughout the term of this contract . After the first 750 bins have been replaced each year, LDD shall be entitled to reimbursement for additional replacement bins by a method mutually agreeable to CITY and LDD. Bins that are damaged or destroyed by residents shall be replaced at residents ' expense. Contractor shall make replacement bins available to residents at a cost of $5 .00 each ( $15 . 00 per set) . 2 04i19i90 i3:00 F s' 4 Bins and containers shall be l such a as accessible and to be easily seen and readily 5 ) feet from emptying the same but not more than five ( the curb. LDD shall instruct subscribers as to tha proper placement of bins so as to shall notify gang nuisance or a dangerous condition. ' subscribers who fail to follow these instructions and follow up to assure compliance. LDD may make annual adjustments to the costs charged for replacement bins using the full annual percentage Jos i difference in the "San Francisco-OaklandAi�nitemse Consumer Price Index, All Urban Consumers adjustments . (Cpi ) " as the percentage basis for the D. col lest ion schedL�1.� LDD shall collect all recyclable as defined and in accordance with this materials , laced at the Agreement , which have been appropriately p curbside► once each week on the regularly scheduled trash collection day from each participating residence . The holiday collection schedule for the collection he as that for f recyclable materials shall`ollection shall be performed j •; regular garbage service . fifty-two (52 ) weeks per year . la d vehicles E . desi ned and paints �` LDD will provide specially g for collecting and transporting recyclable materials . for recycling all (. LDD shall have sole responsibility S- collected recyclable materials ; none of this material transfer station or any may be disposed of at a landfill , clip the material . .'f other location in lieu of racy 9 , r; Violation Of this section will be considered "due cause" of Section VII (L) . and subject to the provisions i Sery�G�� provide LDD shall satisfactorily ! . F . � . comprehensive customer service for the Program an but not limited to , responding to complaints , pick-ups questions and handling missed pick-ups . Missed shall be collected within 24 hours of being reported . disposition shall be y' A record of customer complaints and disp maintained by LDD and made available to CITY at CITY ' S request . mn+ inn ProQra[n_ LDD shall ess and P G. p 1 Awaren _�— develop, implement and maintain a comprehensive community education and promotion ro "Public Awareness/Promotion as described in section, �� of LDD' s Letter of Intent (Exhibit A) Program ro ram' s Y previously herein incorporated. Details of the p g implementation shall be agreed to by CITY . . 3 ; Performance of this program shall be reviewed by CITY on an annual basis . LDD shall provide a summary of the efforts undertaken and the cost associated with the program. CITY shall reserve the right to assume responsibility for the public awareness and promotion program, provided that CITY efforts shall not be less than the efforts undertaken by the LDD in the previous year. If CITY assumes responsibility for program, LDD shall enter into an amendment which will either reduce the rates or provide a direct pass through of funds , which would have been spent by LDD, to the CITY . III . REPORTS LDD will develop definitions , standards , content and formats for monthly and annual reports , subject to approval by CITY , prior to submission of first monthly report from LDD. LDD shall submit written monthly and annual reports to CITY that provide the following information: A. Volume summaries indicating the total quantities of each recyclable material collected and the average weight per pickup. B. Participation rates . including a summary of the total number of households served during the period, total number of participating households , and number of pickups . Participation shall be defined as "one pickup of at least one bin, per month. " C. Activity report on the Public Awareness and Promotion Campaign describing measures taken during the quarter and, the status of each component of the campaign. D. ReDgrtinq reaU red by State law. If the enactment of State law including but not limited to Public Resources Code Section 40000 et . seq. (AB939 ) , mandates the collection of specific data under the program, LDD shall take steps necessary to provide the CITY with this information. IV. SCHEDULE OF PERFORMANCE On September 4, 19900 LDD shall commence delivery of containers , which shall be completed by September 14 , 1990 , to all single family residences which are current garbage subscribers . Regular pickups shall commence on September 17 , 1990 . In the event that unforseen circumstances arise which would cause a delay in the delivery or commencement dates , 4 LDD and CITY may modify this Schedule of Performance by mutual agreement. V. ADDITIONAL SERVICESIEXPANS_TON OF SERVICES In the event CITY requests LDD to perform additional recycling services to single-family residences , such as collecting additional types of materials , including but not limited to motor oil and yard waste , this Agreement may be amended to include said services by mutual agreement of City and LDD. LDD shall provide research, program design and pilot programs for multiple-family dwelling and commercial/industrial facilities , at LDD' s expense , as described in LDD's Letter of Intent (Exhibit A) previously herein incorporated. Should CITY decide to implement any of these expanded services, this Agreement may be amended to include said services by mutual agreement of CITY and LDD. VI . C'OMPENSATION_ FOR SERVICES LDD is authorized to collect fees for the single family residential curbside recycling program, on the bill issued by OSC for residential garbage service . The fee for the Curbside recycling program will be $1 . 25 per single family residential customer. The cost will be applied to the monthly rate established by CITY for "Once a week collection of one container of 32 gallon capacity. " LDD shall be solely responsible for collection of fees for the Curbside Recycling Program. LDD is authorized to bill in advance on a quarterly basis OSC' s bills . LDD may make annual adjustments to the fees charged for the Curbside Program, no sooner than one year after LDD begins providing curbside recycling services using the full annual percentage difference in the "San Francisco-Oakland-San Jose Consumer Price Index, All Urban Consumer, All Items , " as the percentage basis for the adjustments . LDD shall give each subscriber a written notice of any anticipated fee adjustment not less than thirty (30) days prior to its effective date . Said notice may be printed on the garbage bill issued in the quarter prior to the effective date . LDD shall make a reasonable effort to coordinate any recycling rate adjustment with rate adjustments considered by the CITY for residential garbage service. CITY shall be provided with a preliminary notice of adjustment including the calculation used, at least 60 days prior to its effective date . 5 VII .ADM_TNI TRATIVE _PROVI TON A. COMPLIANCE WITH LAWS AND RECLI AIIONS : LDD agrees that, in the performance of services under this Agreement , LDD will qualify under and comply with any and all federal , state and local laws and regulations now in effect , or hereafter enacted during the term of this Agreement, which are applicable to LDD, its employees , agents for subcontractors, if any, with respect to the work and services described herein. In the event that the federal and/or state laws and regulations regarding waste oil and recycled oil are modified, with respect to provisions for exemptions , exclusions and liabilities, in such a way that would substantially affect LDD' s ability to comply with said laws and regulations while continuing to provide the service, LDD reserves the. right to modify or terminate that portion of the service providing for the curbside collection of used oil . B . PERMITS AND LICENSES : LDD, at its sole cost and expense, shall obtain and maintain throughout the term. of this Agreement all permits , licenses and approvals necessary or required for LDD to perform the work and services described herein or subsequently added through amendment to this Agreement . C. OWNERSHIP OF COLLECTED RECYCLABLE MATERIALS. It is . agreed that LDD shall have sole and exclusive rights to all recyclable materials collected by LDD pursuant to this Agreement, and shall be entitled. to any and all revenue generated from the sale of those materials . D. CONTRACTOR' S RECORDS : LDD shall maintain all books and records related to the performance of this Agreement for a period of at least three( 3 ) years from the date of the final payment by customers to LDD pursuant to this Agreement . E. INSURANCE : LDD will obtain, maintain and produce evidence to CITY of, during the period of this Agreement , insurance as follows : 1 . Worker g Compensation. covering all employees of LDD, that meets all requirements of the California Labor Code . 2 . Comprehensive GRnegal Liability with limits of $1 , 000 , 000 for bodily injury and property (combined single limit ) , written on an occurrence basis . 6 ; l� 3 . Motor Vehicles, Insurance with limits for bodily injury and property damage of $1 , 000,000 ( combined single limit ) . CITY and its officersi employees and agents shall be named as additional insured on all policies . In the event of cancellation of any coverage, thirty ( 30 ) days prior written notice of termination shall be given to CITY . Notice shall be sent to: Assistant City Manger City of Dublin P . 0. Box 2340 Dublin, CA 44568 F . PERFORMANCE BOND: LDD will furnish a Performance Bond to CITY, at •LDD's expense , for the faithful performance of this contract in the amount of $250, 000 . A certificate from the surety showing that the bond ;y premiums are paid in full shall accompany the bond. The surety on the bond shall be a duly authorized corporate { surety authorized to do business in the State of California. G. INDEMNIFICATION AND HOLD HARMLESS : LDD agrees to indemnify, defend and hold harmless City, its officers , agents and employees , from any and all claims, causes of action or administrative proceedings arising out of or resulting from LDD ' s activities and responsibilities under this Agreement . f H . AMENDM NT: This Agreement may be amended by mutual agreement of the parties. Such amendments shall be in writing and signed by both parties . }s f; I . RECITALS : The foregoing recitals are true and correct and are made a part of this agreement . i J . CITY OBLIGATION: CITY's obligation under the terms of the Agreement is to allow LDD to collect its fees under i* the franchise Agreement between CITY and OSC for the entire term of this agreement . ' K. DISPUTE RESOLUTION: In the event that disputes regarding £! performance of services under this contract cannot be satisfactorily resolved among the parties , CITY and LDD agree to mandatory mediation by a mutually agreed-upon independent third party. If mediation does not satisfactorily resolve the dispute, it will be followed by binding and conclusive arbitration pursuant to the rules of the American Arbitration Association. 7 ; SI< L. TFUMTUATION: This Agreement may be terminated for due cause or upon mutual consent . Notice of intent to terminate may be initiated by either party upon ninety (90) calendar days ' written notice . Notice shall be given to LDD at : Livermore Dublin Disposal i. 6175 S. Front Road Livermore, CA 94550 Notice shall be given to CITY at : Assistant City Manger City of Dublin P. 0. Box 2340 Dublin, CA 94568 In the event of termination, LDD agrees to cooperate to ensure an orderly transition to a new system. s; M. LDD recognizes that other recycling transporters may collect recyclables materials from properties within Dublin pursuant to a recycling transporter permit issued f•, pursuant to CITY 's Solid Waste Management Ordinance . rtt' 1(jt Y• j. { a p., 1' i p- r' ;1 1. IN WITNESS WHEREOF, this Agreement is executed by CITY, OSC and by LDD. OAKLAND SCAVENGER COMPANY, a CITY OF DUBLIN, a California Corporation MUnicipal Corporation Dave MacDonald Paul C. Moffatt, Mayor Executive Vice President Oakland Scavenger Company LIVERMORE DUBLIN DISPOSAL, ATTEST a wholly-owned subsidiary of Oakland Scavenger Company Bill Brandi City Clerk General Manager Livermore Dublin Disposal APPROVED AS TO FORM: City Attorney r 9 DRAFT PROPOSAL DUBLIN RECYCLING PROGRAM Submitted by Livermore Dublin Disposal February 13, 1990 Revised April 16, 1990 EXHIBIT r. L' INTRODUCTION/EXECUTIVE SLW24ARY Recycling is an important element of every city' s integrated solid waste management plan. Livermore Dublin Disposal (LDD) , a Waste Management Company, views recycling as a socially responsible approach to handling municipal solid waste . LDD commends the City of Dublin for its awareness of and concern for this critical issue . Livermore Dublin Disposal is uniquely qualified to assist the City with its recycling program. Serving the community for over 25 years , LDD has provided reliable service . LDD' s knowledge of the Dublin customer base, and commitment to outstanding customer service, combine to provide unequalled qualifications . Further, LDD' s relationship with Waste Management , the country' s largest curbside recycler and largest provider of collection, processing, and disposal services , provides valuable personnel and financial resources . Recycle America, the leading national residential and commercial recycling program, was designed by Waste Management . In 1989 , 975 , 000 tons of materials were diverted from landfills by Recycle America programs throughout the country . With the implementation of a Recycle America program, Dublin residents will join 1 . 2 million residential customers in over 140 cities nationwide and in Canada receiving the environmental and economic benefits of recycling . 2 Currently, there are several Recycle America programs in Northern California, including Albany, Emeryville, Fremont, Livermore, Newark, San Ramon, and Santa Rosa . Participation, the key to every program' s success , is high in these communities . The City of San Jose, with 180 ,000 households, has over 60% participation. Fremont and Newark, with 48, 000 households combined, have achieved a 70% participation rate . Working together, the City of Dublin and LDD will ensure success for Dublin' s Recycle America program. Successful recycling programs have a multifaceted approach, including single family units , multi-family units , and commercial/industrial businesses . This proposal outlines the implementation of a Recycle America program, covering single family units , multiple family dwellings and commercial/industrial business . Phase I , servicing single family units , will provide curbside pick up of source separated recyclables . Three bins will be provided to sort clear glass , mixed glass and PET Plastic/Tin/Aluminum. Newspaper will be bagged or bundled and placed next to the bins . The commercial/industrial accounts and multi-family units will be addressed in Phase II . For maximum effectiveness , LDD recommends implementation of Phase II subsequent to Phase I . The recyclable portion of this waste stream may be diverted using compartmentalized bins , carts or a combination of the two . Residential waste oil and composting, Phases III and IV respectively, would be add-ons to the residential recycling program. Both items require further study and analysis . The Phase I ( single family units ) charge would be $1 . 25 per house per month. This includes the 3 bin set up for each home . Annual adjustments would be made based on the Consumer Price Index. 3 PHASE I — SINGLE FAMILY UNITS The initial program will begin with single family units . This will create community awareness , provide an excellent opportunity for consumer education, and generally get people talking about the issue of recycling and its importance . The success of a single family unit program is measured by tonnage collected and, equally important , the number of residents participating. Based on Waste Management ' s extensive recycling experience , there are three key determinants in the program' s participation rate -- pick up day, what people use to collect the recyclables , and public awareness/promotional plan. LDD will collect recyclables on the same day customers receive regular garbage service . This will eliminate any confusion as to pick up day for the residents . Providing bins for the residents will also avoid confusion and stimulate participation. LDD will provide three plastic bins , of egg crate or similar design, to each single family unit . Customers will use these stackable/nestable bins to source separate materials . Specifically, one bin will be labeled "Clear Glass" , another "Mixed Glass" , and the third "PET Plastic/Tin/Aluminum. " These bins , along with newspaper bundled or bagged on the side, will be set at the curb for pick up on residents ' regular garbage service day. The material separation is designed to maximize the commodities ' resale value. Selling recyclables will defray the program' s cost of operations keeping the residents ' fee as low as possible . In direct response to the secondary glass market , glass should be segregated, at a minimum, by clear versus colored. While further 4 separation (amber versus green) might provide a higher commodity resale value, requiring this additional sort might adversely effect participation. Also, capital costs would increase due to the additional bin requirement . The proposed two glass sort will satisfy the glass market while minimizing customer inconvenience and capital cost . Under the submitted proposal , however, LDD would assume all market risk for commodity prices . The area of recycling has been plagued by two recurring problems , lack of markets and lagging technology. Waste Management' s joint ventures are addressing these concerns . Specifically, Waste Management has entered into two joint ventures , with Du Pont and Jefferson Smurfit , to address the opportunities for recycling plastic and newspaper, respectively. Waste Management and Du Pont have joined together to form the Plastic Recycling Alliance . The Alliance expects to increase plastics ' recyclability through market development for reclaimed plastic, and new polymer technology. The recently formed Smurfit/WMI Recycling Company, is expected to be the world' s largest processor and marketer of recycled paper fiber, including newsprint and other recyclable materials . Combining the expertise of Waste Management and Jefferson Smurfit Corporation, should result in greater efficiencies , providing end users with a constant source of raw materials . r 5 PHASE II - MULTI-FAMILY UNITS AND COMMERCIAL/INDUSTRIAL Livermore Dublin Disposal recommends full implementation of Phase I before adding multi-family units to the Dublin Recycle America Program. Avoiding overlapping implementation will provide greater focus for each phase and provide additional opportunities for continuing public awareness programs . Working with local landlords and the City, LDD will determine a mutually beneficial method of recycling. Potential methods may include carts , compartmentalized bins , or a combination of the two. Issues such as routing and participation will be key cost issues . For multi-family units , the program cost could be levied on apartment rates exclusively . The commercial accounts will be addressed individually to best determine a method of collection to maximize recycling volume . For example, a business generating significant corrugated may be given a specially designed front loader container for source separation. This would be collected by a truck carrying only like material . Alternatively, businesses determined by LDD to have a high amount of recyclable, though mixed, material may be separately routed for ultimate disposition at a material recovery facility. 6 l� PHASE III - WASTE OIL AND COMPOSTING Barring any legal or environmental constraints , the Dublin Recycle America Program would include curbside pick up of residential waste oil . Harmful to city sewers as well as the Altamont landfill , it is imperative that waste oil be successfully diverted from the waste stream. Presently there are two primary methods of waste oil collection: prepaid disposal containers , good for a single use, or reusable containers , which are emptied into a truck with an appropriate tank, at the curb, and returned to the customer. The former option allows the program costs to be paid exclusively by end users . The latter alternative requires some portion of funding through the rate structure . However, the reusable containers dramatically decrease the amount of oil contaminated plastic generated. The waste oil program may be implemented within 120 days of Phase I , or any other reasonable date as mutually agreed upon by the City and LDD. Due to the sensitive environmental and legal nature of curbside waste oil removal , LDD will study the East Bay Disposal Program before implementing a program in Dublin. In the event federal or state laws and regulations regarding waste oil and recycling oil are modified in such a way that would substantially affect LDD' s compliance while providing the service, LDD reserves the right to modify or terminate the curbside collection of used oil . 7 PHASE IV - COMPOSTING The stringent goals of AB939 are compelling reasons to eventually include composting in Dublin' s recycling plan. LDD recommends studying the benefits of composting as a recycling program add-on. Pending full implementation of Phases I-III , or at a mutually agreed upon time, yard waste collection and composting could be added for Dublin residents . Of concern is an ultimate use for the composted product . Some of the end product might be of use to Dublin' s Public Works Department . 8 SINGLE FAMILY UNIT PROGRAM - OPERATIONAL SPECIFICS The LDD site at 6175 South Front Road, Livermore, will serve as the base of operations for this program. Any customer inquiries , complaints , or missed pick ups will be handled by the LDD administrative staff , at 447-1300 . The staff will route all issues to the appropriate operational personnel . Timely resolutions are guaranteed. The source separated recyclables , placed curbside (within 3 feet of the curb) , will be removed on the regular garbage day . LDD anticipates using an appropriately sized side loader for this program. The truck body will have four compartments to match the curbside sort . Truck selection will be based on the number of customers to be serviced, anticipated volume of recyclables and an allowance for residential growth. The truck will be staffed with qualified drivers . The Dublin Recycling Recycle America Program will fully utilize one recycling truck . At the end of each day, the truck will discharge its load at Bay City Paper Stock (BCPS ) , a division of Oakland Scavenger Company. BCPS , located on Davis Street in San Leandro, has been involved in recycling waste, paper, metal , and glass for over 20 years . Through Oakland Scavenger Company operations , BCPS collects , buys , and sells over 2 ,000 tons of multi-material recyclables per month. This volume ensures some stability in an environment of ever changing prices . However, Livermore Dublin Disposal will assume all market risk. BCPS will buy all recyclables at their current "gate rate" as of the date of delivery. This approach will relieve the Dublin Recycle America program of an expensive sorting process as well as the responsibility to locate and negotiate end markets . 9 Appropriately staffed marshalling yards are very expensive . Additionally, delivery costs and administrative time ( to "shop" the secondary markets ) would increase substantially Use of BCPS , in an armslength transaction, saves the residents of Dublin considerable money . 10 PUBLIC AWARENESS/PROMOTION PROGRAM The Dublin recycling program will operate under the auspice of Recycle America . This represents more than just a program name; it is an integrated approach to operations , promotions , and public awareness which has proven to be a winning combination for successful recycling programs . The official colors of the program are white, dark green and light green. On all truck s and front loader bins , the primary color will be white with one stripe each of the secondary colors . The official Recycle America program logo, available only to Waste Management programs , is : The color theme and logo provide continuity with programs throughout the country . They also build a unifying theme for local residents . Both the residential and business communities will benefit from education. The initiation of a recycling program provides an opportune occasion to educate the public . Year one public awareness and project management expenditures are anticipated to be $20 ,000 . Public awareness costs alone will run $3 . 00 per residential account . This includes the kick off festivity held at Dublin City Hall . In subsequent years , annual promotional and project management spending will be $7 , 000 and $5 , 0000, respectively. Working with the City of Dublin, LDD will specifically target promotions to reach each segment of the community for maximum exposure to the benefits of recycling . 11 Pre-program education will be an integral part of the LDD approach. By reaching segments of the community before the program kicks off , people will be knowledgeable about the program from day one . The excitement and anticipation, properly harnessed, will result in a ground swelling of grass roots support . Community leaders ( service, civic , religious ) will be reached through the LDD/OSC Speakers ' Bureau. Through direct contact with registered groups in Dublin, LDD will make speakers available on the topic of recycling in general and the Dublin program specifically. Similarly schools will be given grade-related materials and information for distribution. LDD will support teachers interested in presenting recycling/ecological programs with pre-program round tables or speakers , as desired. Realizing that a segment of the Dublin population may not be reached by either approach above, LDD will provide, with clearance from the City of Dublin, an informational mailing to all active residential and commercial customers . This first mailing will contain general recycling statistics and information. It will also introduce the upcoming Dublin program, promising additional details as of a predetermined date . The City of Dublin Newsletter will also reach residents in an efficient manner. If desired, LDD will provide articles for inclusion in the newsletter. The program kick-off , properly staged, will provide a media event , generating ample publicity for the City and its ' recycling program. Held on the grounds of City Hall , the kick off will include key note addresses by community leaders , distribution of promotional items (pens , buttons , bumper stickers ) and a very visible -- news 12 worthy -- event . LDD will draw upon various OSC and Waste Management resources to ensure a memorable, effective program kick off . The promotion and public education will not end with the kick-off . The LDD/OSC Speakers ' Bureau will be available on a continuing basis . Also, LDD will work with the Dublin School District to develop presentation material targeted for elementary and high school students ( including, for example, site tours of the Altamont landfill for high school students and recycling presentations at grade school assemblies ) . The community has a vested interest in making recycling an integral part of everyday life. The future belongs to the children of today. Twice each year LDD will enclose a recycling update in the residential billing. Included will be program statistics and targeted goals . 13 TIMING Day 1 o Sign Contract , amend ordinances as required. Day 60 o Submit detailed public awareness/promotion plan to the City of Dublin. Day 120 o Begin pre-implementation promotion/education. o Submit proposal re Phase II to City. Day 170 o Official Kick-off at the City of Dublin. o Begin bin distribution. Day 180 o Phase I - Single Family Unit Program begins . Day 190 o Begin Post Implementation Promotion Program. Day 210 o Begin Phase II - Multi-Family Unit and Commercial/Industrial Program. Day 240 o Address residential waste oil program. o Address composting of yard waste . 14 REPORTING LDD will provide timely, comprehensive reporting to the City regarding the recycling program. Included will be a monthly summary, by commodity, of the total tonnage collected as well as the average sales price per ton. A monthly participation recap will be provided, detailing the number of set outs and the community participation rate . (LDD defines participation as at least one bin set out per home during the month. ) Before Phase I begins LDD will provide a report of the current waste stream tonnage . This will be the basis for any AB939 calculations . In the event requirements beyond those outlined above are introduced by the California Integrated Waste Management Board, LDD will amend the monthly reports to ensure compliance . r 15 COST OF PROGRAM The following assumptions were used to develop the cost of operations : Contract Term Through 3/31/96 . Account Increase 2% annually Labor Cost Teamsters Local 70 , 5% annual escalation, year 1 - $51 , 000 . Set Out Rate Year 1-50%, (based on East Bay Disposal ' s experience) ; 10% increase for years 2 and 3 ; 5% increase in years 4 and 5 . Capital 1-40 yard side loader $100K modified with 4 compartments . Bins ( $15/set plus tax $ 90K and delivery) Truck Radio $ 2K $192K Based on the above, the first year price will be $1 . 25 . Subsequent annual adjustments will be based on the Consumer Price Index ( "All Urban Consumers" for the San Francisco, Oakland, and San Jose Areas [ "All Items" Group] ) published by the United States Department of Labor Statistics ( "CPI" ) . See Exhibit I for the five year Revenue/Cost Summary . 16 The tonnage assumptions were based on East Bay Disposal ' s Recycle America program, servicing the cities of Fremont and Newark . Projected year one volume is : Newspaper 960 tons Glass 255 tons Tin 50 tons Aluminum 12 tons PET Plastic 5 tons Projected Landfill Diversion 1 , 282 tons (Year 1 ) Coverage of all single family units will be accomplished with one recycling route, using a front end loader. Collection of the recycling fee could be handled with ease using the existing LDD residential billing structure . LDD suggests starting the surcharge at the beginning of the quarter to avoid retro active billing adjustments . In the event the implementation date did not coincide with the rate increase date, all funds collected would be applied only to recycling program expenditures . 17 EXHIBIT I DUBLIN RECYCLE AMERICA PROGRAM PHASE I — SINGLE FAMILY UNITS FIVE YEAR FINANCIAL SUMMARY (000'S Except as noted) -------------- Year --------------- 1_ 2 _3 4 5 Projected Commodities ' Revenue $ 59 $ 65 $ 70 $ 75 $ 80 Projected Program Costs ( 134 ) ( 143 ) ( 149 ) ( 158) ( 167 ) Net Program Profit/ (Loss ) (75 ) ( 78 ) (81 ) (84 ) (87 ) Cost per Household/Month $1 . 25 $1 . 30 $1 . 35 $1 . 40 $1 . 45 NOTE : These costs do not include waste oil or composting. ME90016 .m 18 Jz4fi-9 ad Pit om an 4010 East 26th Street (213) 262-5145 CURBSIDE RECYCLE CONTAINERS Los Angeles, CA 90023 FAX 269-8506 STACKING BIN SYSTEMS STACKING BINS L DIMENSIONS b,r 4 � LENGTH WIDTH HEIGHT r; Exterior: 20.125" x 15.25" x 12.40" F Interior: 17.50" x 13.60" x 11.50" Stacked height for 3 bins : 35.60 in. Nested height for 2 bins : 24.60 in. Capacity: 11.85 gallons per bin or 35.55 gallons for 3 bins WEIGHT Model RB-R : Ribbed sides 4.0 lbs. Model RB-SS : Solid sides 4.5 lbs. DESIGN FEATURES • Injection molded HDPE construction designed * Patented snap-lock handles secure units for for strength and long life. distribution to customers. • Ultra-violet stabilizers added to prevent fading * Recessed bottom elevates bin above ground so or material breakdown. bin stays cleaner longer. • May include up to 25% post-consumer * Radiused corners and reinforced legs survive the recycled plastic. toughest punishment. * 5-year prorated warranty against defects in * Large branding areas for logos and recycling material or workmanship. slogans. * Available in a wide range of colors. * Four drain holes in bottom. Rl- r a? 3 F .;k e xw a YxN k Z-A c . t+�x iS• .3 ni NESTED BINS FOR SHIPPING STACKING CONFIGURATION '�•,�' �;Ryw'•ri4,:'Mr�� ^' e,�' ..,�:• •�;,; i•y. ; )k.'_r S ' ?0}: if ��'.�:r!�,Fi-„'.�!•i:: >'�. !•rF�y'•� r. 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'.,.•.., is .J,. 7.\•ri: ��A::%� '`R� �.+l:�.r• ....�AIKi,' c`.' ',•`'.., :,' Jr,�. R. °;��. A.' '4 i,'�. ';'glti!_<�• '-� •��4';rrt �e{dti �`7�4 f.' �f.r Q.'7i?ii�\�y`+ l.�r• ,7•�.-{���.i,:.t��� ��,:,1u$�' A�rt'¢j(� yfr,�kvr•�,�,�xRd?r,�,:�����`?� ,r '� .1:. ��� +,./3 • � ♦ham. `d `t•<:.1 :"•i `� • ? I ,tea, II 1 fir �••� ` ' rte{.. .;: '•:'71• �. t r -+wy,s•i..;:.c;,•e,.,r'...:.L�'•"'4'r�'i�y."!'M•'.� .a • may��.tia;�!!\fie'f:/' ..' ,,yy��pt.�w4S��r a~•�'!�t�:�:',Y'y •tif�:a.�`"�.. `�r•.': N•:i.•.!/.� r ADVANCE DES*N RESEARCH, INC. . 41 B, HANGAR WAY, WATSONVILLE, CA 95076 PHONE:408 728-4344, FAX:408 728-5629 RECYCLE 2000 is a newly developed curbside recycling body designed to enhance the productivity of collection operations by providing large capacity , segregation bins installed on level frame truck chassis' equipped with mechanical lifter loading. Bodies can be configured with from two to four bins on most chassis. Both lateral dumping and rear dumping bins can be set up to discharge to most debris boxes commonly available whith the recycle truck and the bin are at the same grade level. Charging height of the loading bins is nominally 36" depending on chassis and wheel arrangements, lessening fatigue and improving productivity. Charging buckets can be equipped with attachements to carry most semi-automated roll out containers on their front face for intermixed commercial and high density res;dentiai recycling programs. Charge bin capacity is adequate to accumulate recyclables from numerous residences between dumping cycles. RECYCLE 2000 Is available in capacities from 24 to 32 cubic yards on single axle chassis. Due to stressed skin construction techniques, average installed body weight is nominally 6,500 pounds, allowing most completed vehicles to be certified below 33,000 GVW with proper weight distribution . RECYCLE 2000 is designed and built by people with more than ten years experience in recycling vehicle manufacturing. RECYCLE 2000 is a vehicle that will take your recycling operations forward to the next century. ry 0 0 o 0 j o 0 RECYCLE 2000 CURBSIDE RECYCLING COLLECTION SYSTEM FOR THE NEXT GENERATION ADR040589 i RESOLUTION NO. - 90 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************************** APPROVING AN AGREEMENT WITH LIVERMORE DUBLIN DISPOSAL AND OAKLAND SCAVENGER COMPANY TO IMPLEMENT THE DUBLIN RECYCLE AMERICA PROGRAM WHEREAS, the City of Dublin has an existing garbage collection franchise with Oakland Scavenger Company (OSC) ; and WHEREAS, OSC provides the services through Livermore Dublin Disposal (LDD) , a wholly owned subsidiary; and WHEREAS, OSC and LDD are affiliated with Waste Management Inc. , which has developed the Recycle America Program; and WHEREAS, State Law requires cities to implement steps to reduce the amount of waste directed to landfills; and WHEREAS, LDD and OSC are capable of providing the knowledge and resources necessary to successfully implement a recycling program; and WHEREAS, the City desires to implement the recycling program in order to comply with State Laws . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the agreement for the "Dublin Recycle America Program" attached hereto and by reference made a part hereof. BE IT FURTHER RESOLVED that Paul C. Moffatt, Mayor of Dublin is hereby authorized to execute the agreement on the City' s behalf. PASSED, APPROVED AND ADOPTED this 23rd day of April, 1990 . AYES: NOES: ABSENT: Mayor ATTEST: City Clerk