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HomeMy WebLinkAbout8.3 PilotCommclRecylPrgm .. . CITY CLERK File # D[8j[2][1l]-~[(jJ ....... '. AGENDA STATEMENT CITY COUNCIL MEETING DATE: AUGUST 13,1996 SUBJECT: Pilot Commercial Recycling Program Report Prepared by: Steve Honse, Administrative Assistant RECOMMENDATION: 1. Resolution Adopting Amendment Number Two to the Agreement Between Waste Management of Alameda County and the City of Dublin for Integrated Solid Waste Management Services ~ Adopt the Resolution and authorize the Mayor to execute the agreement. EXHIBITS ATTACHED: FINANCIAL STATEMENT: The pilot commercial recycling program would result in a one- time cost of$33,050 to be funded from Measure D funds. Adequate funds are included in the adopted 1996/97 budget. DESCRIPTION: ..... :::~ 939 requires that the City divert 25% of waste from the landfill by 1995 and 50% by the year 2000. Per the City's Source Reduction and Recycling Element (SRRE), 75% of the waste generated in the City of Dublin is generated by commercial enterprises. Only 25% is generated by residential uses. In order to achieve the goals set by AB 939 for the year 2000, the City must now focus on achieving higher diversion rates from commercial uses. The economics of recycling make it very difficult to increase diversion rates for commercial uses. For the most part, the market price for recycled materials is less than the cost to collect and transport the materials. For some large businesses, these difficulties can be overcome; however, due to the limited quantity of material generated, it is seldom cost-effective for a small businesses to recycle. As a result, market forces alone are not likely to induce commercial recycling practices that would result in _. - .___. _. "_ - - __ ._ _u _ _ ~~~ -achievement of AB 939 goals. In order to meet AB 939 goals, more recyclable material must be collected from commercial uses. To achieve this goal, staff proposes a pilot commercial recycling program which will provide subsidies to encourage recycling by both small and large businesses. The program would be funded from Measure D funds. Two different types of subsidies will be available based upon the size of the recycling container selected. Each type of subsidy is described below: ::~.------------------------------------------------------------------ . COPIES TO: Kevin Walbridge, President, WMAC and Desi Reno, LDD General Manager 8 7 ITEM NO. . . '0 Small Commercial Users This element of the program is geared towards small businesses for which it is not cost-effective to purchase recycling collection services. WMAC has agreed to collect recyclable materials from small businesses using 96-gallon containers. The types of material that will be collected are limited to: office paper, cardboard, newspaper, and mixed materials (cans, plastic, and glass). eo:" Under the terms of the agreement (Exhibit "1 "), WMAC will prepare promotional materials, actively solicit small business customers, and perform all administrative functions. The City will provide funding, not to exceed $7,500, for the total cost to purchase 128 recycling containers. The City will also provide funding, not to exceed $22,350, as the total cost of fully subsidizing recycling collection services for 128 users for a one-year period. The sum is based upon a collection rate, not to exceed $14.55 per month, per user, for a period beginning in August of 1996 through June of 1997. If more than 128 customers apply for service, the subsidy will be allocated on a frrst-come-first-served basis. The City subsidy will be limited to one recycling container per customer. If a customer wishes to have additional containers, the customer must request additional recycling containers from WMAC and pay collection fees. The success of the program will be measured by the amount of material diverted from the landfill as a result of this subsidy. At the conclusion of one year, staffwill evaluate diversion quantities and report the data Council. At that time, the Council will determine whether the program should be continued. Large Commercial Users . WMAC currently collects recyclable materials from large businesses who generate significant quantities '.. of material. These materials are collected in dumpsters of varying sizes. Although most recyclable materials cannot be sold at a profit, WMAC charges less to collect recyclable materials than for trash disposal. This cost differential results in a savings for a business that can recycle large quantities of material. WMAC has indicated that a subsidy, equal to the cost of one month's recycling collection service, would be effective in persuading large businesses to recycle when the cost differential between disposal and recycling is small. The City will provide funding, not to exceed $3,200, for the total cost of providing a subsidy to large commercial users. The subsidy will be available to 20 existing customers and also to all future customers, up to a maximum of 80 customers. The subsidy will be equal to the cost of one month's service, but not to exceed $40 per account. WMAC will continue to actively solicit customers and perform all administrative functions. PROGRAM DURATION: The total one-time cost of the proposed program is $33,050; however, if the program proves to be successful, the City Council will have the option to continue the program by providing additional funding in subsequent years. The funding has been identified for both the Large User and Small User portions of the Commercial Recycling Pilot Program as a Measure D expenditure in the approved fiscal year 1996-97 budget. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution which will authorize the Mayor to execute the Second Amendment to the Integrated Solid Waste Management Agreement (Exhibit "A"). . RESOLUTION NO. - 96 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* ADOPTING AMEl\TJ>MENT NUMBER TWO TO THE AGREEMENT BETWEEN WASTE MANAGEMENT OF ALAMEDA COUNTY AND THE CITY OF DUBLIN FOR INTEGRA TED SOLID WASTE MANAGEMENT SERVICES \VHEREAS, through Resolution 59-95, adopted June 13, 1995, the City of Dublin adopted a Solid Waste Disposal Franchise Agreement with Waste Management of Alameda County ("AGREEMENT") which allowed the City to moderate the cost of service with City contributions of grants and subsidies; and WHEREAS, the City receives Measure D funds which must be used for source recycling and source reduction activities and programs; and WHEREAS, Measure D funds will be used to provide an operating subsidy for a pilot commercial recycling program and provide a one-time grant for the purchase of commercial recycling containers, both of which are appropriate uses for Measure D funds; and \\lHEREAS, funding was identified in the adopted 1996/97 City Budget to provide for these . contributions; and WHEREAS, the City Manager has recommended that the Council approve the Agreement in the form attached as Exhibit "A"; NOW THEREFORE, BE IT RESOLVED that the Mayor of the City of Dublin is authorized to execute the agreement attached hereto as Exhibit "A" and by reference made a part hereof. PASSED, APPROVED AND ADOPTED this 13 day of August, 1996. AYES: NOES: ABSENT: ABSTAIN: Mayor ATrEST: . City Clerk EXHIBIT 1 AMENDMENT NUMBER TWO TO THE AGREEMENT BETWEEN WASTE MANAGEMENT OF ALAMEDA COUNTY (COMPANY) AND THE CITY OF DUBLIN (CITY) FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES . This agreement, dated for convenience as 13 August 1996, is entered into by the City of Dublin, hereafter "CITY" and Waste Management of Alameda County, hereafter "COMPANY" in accordance with ~6.11 of the Agreement between the City of Dublin and Waste Management of Alameda County for Integrated Solid Waste Management Services, date 30 June 1995 (hereafter the "AGREEMENT') CITY and COMPANY do hereby agree to the following: Recitals WHEREAS, the City receives Measure D funds which must be used for Recycling and Source Reduction activities and programs: and WHEREAS, CITY has declared its intention to encourage commercial recycling, using Measure D funds, by providing a limited operating subsidy and a one-time grant for the purchase of commercial recycling containers; and WHEREAS, these expenditures are an appropriate use of Measure D funds; NOW, THEREFORE, in consideration of the premise above stated and terms, conditions, covenants and agreements contained herein, CITY AND COMPANY do hereby agree as follows: I Definitions For the purposes of this agreement, "small user" is defmed as any nonresidential commercial enterprise which has no COMPANY provided recycling containers which exceed 96 gallons in capacity. "Large User" is defmed as any nonresidential commercial enterprise which has one or more COMPANY provided recycling containers which exceeds 96 gallons in capacity . II. Grant from CITY to COMPANY to Subsidize Pilot Commercial Recycling Program . A) Pursuantto Article 6.11 of the AGREEMENT, CITY agrees to provide to COMPANY a one-time grant from Measure D recycling funds not to exceed $22,350, to subsidize a Pilot Commercial Recycling Program as follows: Period August 1996 to June 1997 Program Small User Pilot Commercial Program CITY will provide a 100 percent subsidy for 12 months of service for 128 small users at a maximum rate of$14.55 per month, per user Amount $22,350 B) COMPANY shall submit and invoice and the necessary documentation to CITY on a quarterly basis. CITY shall tender the above sum to COMPANY within 30 days of receipt of the invoice and the necessary documentation. II. Large Commercial User Commercial Recycling Program A) Pursuant to Article 6.11 of the AGREEMENT, CITY agrees to provide to COMPANY a one-time grant from Measure D recycling funds to subsidize a Large User Commercial Recycling Program as follows: Period August 1996 to June 1997 Description Large User Commercial Recycling Incentive Program CITY will provide a subsidy for 80 large users, not to exceed $40 per account, to partially subsidize one month of service. Amount $3,200 . B) COMPANY shall submit and invoice and the necessary documentation to CITY. CITY shall tender the above sum to COMPANY within 30 days of receipt of the invoice and the necessary documentation. J=")( III. Grant from CITY to COMPANY to Purchase Small User Recvclin~ Carts .. A) CITY shall provide, pursuant to S6.11 of the AGREEMENT, a one-time capital funding grant, subject to subparagraphs B through D below: . B) CITY shall pay up to the sum of$7,500 to COMPANY for the total cost of 128 small user recycling containers upon submittal of satisfactory documentation of purchase. The total cost includes purchase price, sales tax, and delivery expense C) COMPANY shall submit and invoice and the necessary documentation to CITY. CITY shall tender the above sum to COMPANY within 30 days of receipt of the invoice and the necessary documentation. D) CITY shall have the right to request and conduct an inspection of the original records for the items described above for a period of three years following the date of this agreement. COMPANY shall respond to any reasonable request by CITY to verify the expenditure of funds in accordance with this agreement. IN WITNESS WHEREOF, this agreement is executed by the parties to the original AGREEMENT. CITY OF DUBLIN ("CITY") ATTEST: Kay Keck, City Clerk By: Guy S. Houston, Mayor APPROVED AS TO FORM WASTE MANAGEMENT OF ALAMEDA COUNTY ("COMPANY") ". Elizabeth H. Silver, City Attorney By: Name: Kevin Walbridge Title: President, Waste Management of Alameda County ?y: Name: Desi Reno Title: General Manager, Livermore-Dublin Disposal :.