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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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Subject:. Resolution authorizing an
increase to a Purchase Order, with one
one-year renewal option, to West Valley
MRF, LLC for processing the City's
green waste and wood waste; and
authorizing the Finance Director to pay
outstanding invoices in FY01-02 to West
Valley MRF, LLC.
From: Lynn Merrill, Director
Dept: Public Services
Date November 13,2002
Meeting Date: November 18, 2002
Recommended Motion:
Adopt resolution
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Contact person Lynn Merrill, Director Phone: 5140
Supporting data attached:
Ward: All
FUNDING REQUIREMENTS:
Amount:
Source:
$758,500
$200,000
527-412-5179
Residential Dump Fees
$558,500
527-413-5179
Commercial Dump Fees
Finance:
Council Notes:
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Agenda Item No. /7
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Resolution authorizing an increase to a Purchase Order, with one one-year renewal option,
to West Valley MRF, LLC for processing the City's green waste and wood waste; and
authorizing the Finance Director to pay outstanding invoices in FY01-02 to West Valley
MRF, LLC.
Background:
Since 1996, the Public Services Department Refuse Division provides residential and
commercial green waste collection services throughout the City as part of the City's
recycling and waste diversion programs. Materials collected are transported to a green
waste processor who processes these materials into mulch and compost for use in
gardens and agricultural applications.
In December 2000, the City's previous green waste processor, California Biomass advised
the City that it would no longer be able to provide processing services. In January 2001,
the City began utilizing Inland Empire Composting, located in Colton for these processing
services. In mid-April 2002, Inland Empire Composting unexpectedly closed due to
regulatory non-compliance. This closure forced the Refuse Division to find suitable
alternative green waste processing capacity. During this time green waste was
intermittently sent to landfilling, due to lack of available processing sites, at an additional
cost to the City of approximately $9.00 more per ton than was previously being paid.
In early May 2002, the Refuse Division began hauling green wastes to Burrtec's West
Valley Material Recovery Facility, located approximately twenty miles west in Fontana.
Burrtec initially processed the City's green waste at a cost of $26.00 per ton. In addition, if
a load experienced excessive contamination, the load would be rejected and the charge
would be $11.00 per ton plus $29.52 per ton for disposal. This resulted in a net per-ton
cost of $40.52 per ton for a contaminated load. A determination that a load was
excessively contaminated could only be made once the load was dumped at the Burrtec
facility. At that point, it was not possible to do anything other than pay the $40.74 per ton
on that load for disposal. To counteract this, staff began aggressively enforcing
contamination rules on green waste, as outlined in staffs memo to the Mayor and Council
dated April 16, 2002 in order to save these additional costs (see attachment
These additional costs per ton were not projected in the original FY01-02 Refuse budget. .
This unforeseen emergency forced staff to issue a purchase order in the initial amount of
$24,900 to West Valley Material Recovery Facility, LLC while aggressively exploring other
options, given the pricing system provided to the City at that time. It was not possible to
project the total cost for handling green wastes due to the uncertainty of the situation
through the end of FY01-02 and therefore not possible to prepare a Council action to
request an increase in this purchase order prior to the end of FY01-02. At the end of FY
2001/2002 there was an outstanding invoice in the amount of $153,003.22 against the
original purchase order. Staff is requesting approval to pay this outstanding invoice to
FY01-02.
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Recently, Burrtec advised the City that because they now had enough experience with the
contamination level of the City's green waste, they could reduce the rate down to $24.00
per ton and eliminate the additional charge for contamination.
While this rate provides a more favorable arrangement for the City, City collection trucks
are still making up to 16 round trips per day from the City to Burrtec's West Valley Material
Recovery facility, significantly impacting the Division's productivity levels and increasing
wear and tear on the refuse collection trucks. At minimum, the Department's cost for
processing green waste has increased $4.00 per ton for an increase of $80,000 more per
year, when compared to those costs paid to Inland Empire Composting.
Since July, staff has continued to explore other options, including intensive investigation of
establishing a city-operated green waste processing facility. Staff met with various
equipment vendors, toured other agencies' composting and green waste processing
operations and explored potential sites within the City for such a facility. Because staff
was not sure of the operational and regulatory time-lines necessary to establish such a
facility on a "fast track", staff delayed requesting expansion of the existing purchase order
in order to not encumber those funds that may need to be reallocated if it was feasible to
"fast-track" a city green waste operation. Therefore staff elected to delay further action
earlier in this fiscal year.
At this time, staff has determined that the length of time necessary to successfully permit,
site and open a City-operated green-waste facility is approximately 12 months to two
years, it is now apparent that the only immediate processor capable of processing the
City's materials through the remaining fiscal year is West Valley MRF, LLC.
Staff is therefore requesting an increase of $605,500 to Annual Purchase Order No.
996334 to a not-to-exceed amount of $630.400, which is for estimated additional
greenwaste to be processed in FY02/03. It is estimated that approximately 26,300 tons
will be transported to West Valley MRF, LLC during FY 02/03.
The existing arrangement of delivering green waste to Burrtec will continue unless or until
other more advantageous green waste processing arrangements can be identified. Staff
continues to explore other options, including potential public-private partnerships, in order
to further reduce the cost of processing the City's green wastes.
Financial Impact:
Funds for green waste and wood waste processing are included in the FY2002/2003
budget in Account No. 527-412-5179 Residential Dump Fees and Account No. 527-413-
5179 Commercial Dump Fees. The Refuse Division is preparing a proposal to increase
the refuse rates; funds from this increase, if approved, will be used to offset any unfunded
balances in these two accounts at the end of the fiscal year. If the rate increase is not
approved, dump fees as per this Staff Report will be over the approved budget.
Recommendation:
Adopt resolution
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Attachment
CITY OF SAN BERNARDINO
PUBLIC SERVICES DEPARTMENT
INTER-OFFICE MEMORANDUM
TO:
Mayor and Common Cou~
Lynn Merrill, Director ~ ~
FROM:
DATE:
April 16, 2002
SUBJECT:
Green Waste Processing Emergency
COPIES:
Fred Wilson, City Administrator;
James Penman, City Attorney
Jorge Carlos, Assistant to the Council
Arlington Rodgers, Solid Waste Manager
Refuse Division Customer Service Staff
The Refuse Division of the Public Services Department has experienced an unexpected
shutdown of our green waste processing company, Inland Empire Composting. On Friday,
March 29'\ the City received a fax letter from Jim Sullivan, owner of Inland Empire
Composting, located in Colton California. This letter notified the City that due to the loss of
a significant customer as a result of regulatory compliance, the City's green waste processing
rate would be increased from $20.00 per ton ($18.00 for clean loads) to $21.00 per ton. During
a telephone conversation with Mr. Sullivan that same day, he reported that the Santa Ana
Regional Water Quality Control Board had advised him that he was receiving material from a
customer that was outside of his processing permit. This customer represented one-third of
his business stream. At that time, he also advised us that corrective action had been taken, hut
the rate increase was necessary to offset this loss of revenue. He also requested that we
increase the number of bins we provided to his company to handle green waste contaminants.
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Several newspaper articles in both the Sun and the Press-Enterprise revealed that the problem
was much greater than was presented to the City by Mr. Sullivan. Violations included
acceptance of non-compostable.P\llp that was reportedly compacted two to five feet deep and
covered with green materials, as well as other significant environmental violations.
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On Monday, April 8'b, staff at the City of Riverside advised us that Riverside intended to
consider termination of Mr. Sullivan's land lease. On April 11, City of Riverside staff advised
us that the lease had been terminated on a three-day notice. Mr. Sullivan called at
approximately 9:30am and advised us that he had been given a three-day notice to stop
accepting green waste deliveries, effective Saturday, April 13,h.
In order to ensure continued availability of green waste processing in order to maintain
compliance with State-mandated diversion rates, the Refuse Division contacted Burrtec Waste
Industries and has arranged to transfer green waste to an out-of-area processor, through
Burrtec's Robert Nelson Transfer station in north Riverside. Burrtec has agreed to provide
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this service at a cost of $26.00 per ton. In addition, they have advised us that any green waste
that is contaminated with trash or debris would be hauled to a landfill at the City's WDA rate
of $29.52 plus an $11.00 transfer rate, or a total of $40.52 per ton. This will have a significant
adverse affect on the Refuse Division's costs of doing business for the short term.
In order to minimize the amount of contamination that is found in the green waste containers
and therefore to minimize the amount of materials that will need to be sent to the landfill at
$40.52 per ton, the Refuse Division will be undertaking a very aggressive program to not pick
up contaminated loads of green waste at the curb, and to aggressively red-tag green containers
that are contaminated. Since the Refuse Division will not be able to take any action to
minimize the cost once the material is delivered to the Burrtec facility, preventing
contamination on a container-by-container basis is necessary and critical to minimizing the
number of loads that are directed from green waste processing to landfill.
This red-tag program will probably result in an increase in the number of customer
complaints relating to oudailing to pick-up green carts for contamination. The customers
will have two options: either they must remove any contamination from the green waste
before we will pick it up as green waste or we must send another refuse truck to empty the
offending container at an additional operational cost to the division.
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The City collects approximately 27,000 tons of green waste per year. Burrtec is the only
available green waste processor gateway available to the City at this time. The closure of
Inland Empire Composting and subsequent use of Burrtec has now added an additional
$162,000 in operation costs to the Refuse Division per year. Failure to keep contaminants out
of the green waste could result in up to an additional $392,000 per year in costs that would be
translated to the customer's rate.
WE ARE ASKING THAT YOU COMMUNICATE THIS ISSUE TO ANY
CUSTOMER WHO IS CALLING IN TO COMPLAIN THAT WE RED-TAGGED
THEIR GREEN WASTE CONTAINER FOR CONTAMINATION. Your support and
assistance at this time will be greatly appreciated. If I may be able to provide additional
information to you regarding this matter, please contact me at Extension 3423; please refer all
customers to the Refuse Customer Service Center at 909-384-5335.
LM/jj
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING AN INCREASE TO A PURCHASE ORDER,
WITH ONE ONE-YEAR RENEWAL OPTION, TO WEST VALLEY MRF, LLC FOR
PROCESSING THE CITY'S GREEN WASTE AND WOOD WASTE; AND
AUTHORIZING THE FINANCE DIRECTOR TO PAY OUTSTANDING INVOICES IN
FY01-02 TO WEST VALLEY MRF, LLC.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That West Valley Material Recovery Facility (MRF) Facility, LLC,
has processed the City's green waste and wood waste since May, 2002; pursuant to
this determination, the Purchasing Manager is hereby authorized to increase the West
Valley MRF Facility, LLC Annual Purchase Order No. 996334 by $605,500 to a not-to-
exceed amount of $630,400, with one one-year renewal option, to West Valley MRF,
LLC, for green waste and wood waste processing.
SECTION 2. The Purchase Order shall incorporate by reference this Resolution
No. 2002-
and shall read, "West Valley Material Recovery Facility; Purchase
Order No. 996334 not to exceed $630,400".
SECTION 3. That the Finance Director is hereby authorized to pay the
outstanding in~oices in FY01-02 to West Valley MRF, LLC in the amount of
$153,003.22.
SECTION 4. The authorization to execute the above referenced Purchase
Orders is rescinded if not issued within sixty (60) days of the passage of this
resolution.
11/
11/
11/
November 4, 2002
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING AN INCREASE TO A PURCHASE ORDER,
WITH ONE ONE-YEAR RENEWAL OPTION, TO WEST VALLEY MRF, LLC FOR
PROCESSING THE CITY'S GREEN WASTE AND WOOD WASTE; AND
AUTHORIZING THE FINANCE DIRECTOR TO PAY OUTSTANDING INVOICES IN
FY01-02 TO WEST VALLEY MRF, LLC..
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
meeting thereof, held on the
day of
, 2002, by the
following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN ABSENT
ESTRADA
LIEN
MCGINNIS
DERRY
15 SUAREZ
ANDERSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
,2002.
day of
Approved as to
Form and legal content:
Judith Valles, Mayor
City of San Bernardino
JAMES F. PENMAN,
City Attorney
""'_ _._~.,.~:,_~.....~"~~"",.8.
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,
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 11-12> -0;;) Item #
Vote: Ayes i-d. ..l\~'> Nays k3-
,
1 f) Resolution #
Abstain ..e7
2tD2..- 3~",
Absent \3
Change to motion to amend original documents: -
Reso. # On Attachments: ~ Contract term: -
Note on Resolution of Attachment stored separately: :=..-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
NulllVoid After: 100 OPJ.s,) 1- n-03
By:
-
Date Sent to Mayor: I \ - t 9 -0 ?-
Date of Mayor's Signature: II-.lO'.(:,"Z...
Date of Clerk/CDC Signature: I \- ZJ:r<SL-
Reso. Log Updated: v"
Seal Impressed: V
tter Sent for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attached:
Date Returned: -
Request for Council Action & Staff Report Attached: Yes ./
Updated Prior Resolutions (Other Than Below): Yes
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes
Updated CDC Personnel Folders (5557): Yes
Updated Traffic Folders (3985, 8234,655,92-389): Yes
No By
No ---L- By
No ~ By
No ~ By
NoL B
Copies Distributed to:
City Attorney tI'
Parks & Rec.
Code Compliance Dev. Services
Police Public Services'/ Water
EDA
Finance ,,-/
MIS
Others:
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term, etc.)
Ready to File: m-r
Date: II- <..\-<Y2--
Revised 01/12/01