Department of Public Works

Non-Exclusive Solid Waste Collection Franchise System –

Review April 28, 2014

Department of Public Works

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Overview

• 3-year review of City’s franchise system• Seeks to answer 2 questions

1. What system is best for Pasadena today?2. What steps Pasadena should take in

furtherance of policies to increase conservation & sustainability? City Council strategic goals Open Space & Conservation Element UN Urban Environmental Accords Green City Action Plan

Department of Public Works

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Chronology

• August 2007 – City Council approved closure of solid waste collection franchise system>Reduce environmental pollution & number of

trucks >Addition of new haulers would cause further air

& noise pollution, road damage & congestion>Addition of new haulers not likely to improve

service or increase competition>Provide staff time to enforce franchise

requirements• Directed staff to update City Council

every 3 years on status of franchise system

Department of Public Works

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Vehicle Impacts on Pavement

SUV Delivery Truck

Semi/ Big Rig

Bus Garbage Truck/ Green Waste

0

2,000

4,000

6,000

8,000

10,000

1 442

4,526

7,774

9,343

Pavement Stress per Trip (1 vehicle unit = 1 SUV)

Nu

mb

er

of

Veh

icle

Un

its

Department of Public Works

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Chronology

• December 2010 – City Council received 3-year franchise update

>Approved retention of closed system>Directed Public Works to report back in 3

years • April 8, 2014 – MSC received 3-year

franchise update>Recommended City Council retain closed

system

Department of Public Works

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Franchise Statistics

Franchises Vehicles

2007 34 160

2010 26 125

2013 22 111

10

30

50

70

90

110

130

150

Department of Public Works

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Current Franchise System

• Statistics>22 haulers service

3,465 commercial & multi-family customers 5 haulers serve 3,233

customers (96% of customer base)

17 haulers serve 142 customers (4% of customer base)

» Range from 1 to 40 customers

Other; 142; 4%

Universal

Waste; 120; 3%

Valley Vista; 181; 5%

Athens; 1986; 57%

2013 Customer Data

Consolidated/ Republic, 772,

22%

Waste & Re-cycling, 264,

8%

Department of Public Works

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Franchise System Performance

• Diversion>FY 2012 Citywide diversion rate – 75%>75% minimum diversion rate for C&D

100% of haulers in compliance (77% to 100%)

>60% minimum recycling diversion rate for solid waste 100% of haulers in compliance (60% to

100%)• Time to enforce franchises

>12 (35%) fewer franchises since 2007 Termination provisions for PMC non-

compliance Annual audits

Department of Public Works

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Franchise System Performance

• Reduce environmental pollution>Phase-in of alternative-fuel vehicles per

SCAQMD Rule 1193 to achieve 100% use by July 1, 2018 100% of haulers in compliance

>Reduce number of vehicles on City streets 49 (31%) fewer vehicles since 2007

>3-year average number of days exceeding federal ozone standard between 2010 & 2012 Decreased by 74.6%

Department of Public Works

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Alternative Service Arrangements

• Common commercial/multi-family service arrangements>Fully open non-regulated system>Non-exclusive permit system>Non-exclusive franchise system (current

model)>Single exclusive franchise>Multiple exclusive franchise

• Non-exclusive (current system) & exclusive franchise systems provide agencies greatest control over haulers

Department of Public Works

Exclusive System Benefits

Category Exclusive

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Description - Service provided by 1 hauler citywide or multiple haulers with geographic zones

- Rates approved by city

Diversion - Potential for higher waste diversion as haulers would have sufficient customers in proximity for new programsBusiness - Routing efficiencies may make this most cost effective option

- Encourages infrastructure development & vehicle investmentEnvironmen

t- Systematic routes minimize environmental impacts

Customer Rates

- Rate equity – customers pay same price for same service

Other City Benefits

- Reduces staff time required to monitor/manage hauler(s) allowing staff to focus on diversion program efforts

Department of Public Works

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San Jose Model

• San Jose>June 2012 – moved

from non-exclusive (20 haulers) to exclusive system

>Reasons for transition Increase diversion

from commercial waste stream due to limited infrastructure investment for recycling by current haulers

Implement efficient citywide service delivery models to improve economies of scale & reduce environmental impact

>Performance indicators Advanced recycling &

commercial-scale anaerobic digestion facilities opened

Commercial recycling rate increased from 25% to 70%

Department of Public Works

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Los Angeles Model

• Los Angeles>Early-2017 –

implementing commercial exclusive system 11 geographic zones Contracts awarded

via competitive bid

>Reasons for transition 120+ haulers Trucks traversing city

on uncoordinated schedules

Extra wear & tear on roads

Air pollution

>Anticipated benefits Increased diversion Reduced

environmental footprint

Expanded programming

Cost controls

Department of Public Works

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Conclusions/Next Steps

• Industry best practice – exclusive system

• Take steps now to position Pasadena to meet anticipated future needs>Move toward Zero Waste 2040>Possible state-imposed increased diversion

rates >Desire to further reduce environmental

pollution>Need for innovative processing facilities in

local area Recent RFP process for recyclables &

organics processing shows need for infrastructure

Department of Public Works

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Possible System Modification

• CA Public Resources Code contains procedures that must be followed when agency is considering modification to solid waste collection system >Requires agencies to give 5-year notice of intent

to implement exclusive solid waste franchise(s) to companies who have been authorized to operate in city for more than 3 years

Department of Public Works

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Recommendations

1. Retain closed Non-Exclusive Solid Waste Franchise System & direct staff to report back in 3 years to City Council with next review of authorized haulers to ensure competitive pricing & options for solid waste recycling & disposal

2. Direct City Manager to place existing franchisees on notice of City’s intent to consider modification of current Franchise System at time 5-year notice expires pursuant to CA Public Resource Code which allows agencies to grant exclusive operating rights to solid waste disposal companies

Department of Public Works

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Zero Waste Plan

• Summer 2014 – consideration by MSC/Council>Compostable initiatives-development upon

adoption Residential – pilot program for comingled food

scraps, compostables & yard waste Commercial – pilot program with franchise

haulers City events/public venues – compostable

collection >Foster/develop compostable processing

opportunities Amend PMC to include exemptions for grass

roots efforts Increase hauler performance requirements