City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve agreements with Bestway Recycling,
Inc. (Bestway), Allan Company, and CR&R to purchase aluminum, paper, glass,
corrugated cardboard, and plastics (recyclable material) from the City for a six month
period as part of a pilot program.
BACKGROUND:
The Public Works Department’s Environmental Programs and Operations Division
(EPO) operates an exclusive franchise to collect, transfer, and haul solid waste and
recyclable material within the City of Culver City. EPO also plans and implements
waste diversion programs that divert recyclable material from ultimate disposal in a
landfill.
Recyclable material collected through EPO’s collection operations is sold to
Bestway, a Material Recovery Facility (MRF) located approximately 2 blocks east of
the City’s transfer station. Recently, Bestway notified staff that it needs to reduce
the amount of money it pays the City for recyclable material from $42 per ton to $30
per ton. Bestway cited the significant decrease in newsprint in the City’s recyclable
material as the reason for the reduction.
DISCUSSION:
Bestway has been an optimal partner for EPO’s collection operations because of its
close proximity and short wait times; however, staff would like to explore other
recycling processors that may be willing to pay more for the City’s recyclable
material.
Meeting Date: 07/28/2014 Item Number: C-3
CITY COUNCIL AGENDA ITEM: Approval of Agreements with Bestway Recycling,
Inc., Allan Company, and CR&R to Purchase Recyclable Material from the City for a
Period of Six Months as Part of a Pilot Program.
Contact Person/Dept.: Cathi Vargas/PW Phone Number: (310) 253-6411
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: ________________
Public Notification: (Email) Agenda and Meetings – City Council (07/23/2014); (E-Mail)
Sustainability and Environmental Issues (07/23/14)
Department Approval:
Charles D. Herbertson (07/18/14)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/18/14)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (07/22/14)
City Manager Approval:
John M. Nachbar (07/23/14) City of Culver City, California
Agenda Item Report
Staff has found that there are few companies that are located within a reasonable
distance from the transfer station that provide a comparable level of service as
Bestway; however, two companies, Allan Company and CR&R, have been identified
as possible options. Taking recyclable material to either processor may not be
feasible from a logistics perspective, so staff would like to conduct a Pilot Program
that would allow for some material to be sold to all three processors over a six month
period.
Recyclable material sold to Allan Company, an MRF located in Santa Monica, would
be delivered by the City’s collection vehicles. Transportation time, facility
accessibility and capacity would be major considerations in using this facility over a
longer term. Additionally, recycling collection routes may need to be restructured in
order to minimize overtime caused by longer truck trips.
Recycling Material sold to CR&R Inc., an MRF located in Stanton, would be
delivered to the City’s transfer station prior to being transported to Stanton via
tractor/trailer. The City is currently under contract with CR&R for use of the transfer
station to load and transport recycling material delivered by the City of Los Angeles.
As a result, recyclable material collected in Culver City would be mixed with
recyclable material generated in the City of Los Angeles. Factors to consider for
this option include: increased wait times at the transfer station for all collection
routes and impact to transfer station floor operations.
CR&R has agreed to provide the City with quarterly characterization studies of the
City’s recyclable material. These studies would analyze the City’s material and
assign percentages to commodities such as: bottles, cans, glass, newsprint,
cardboard, and trash. The information provided from these studies would be useful
in analyzing the effectiveness of the City’s recycling program.
FISCAL ANALYSIS:
EPO, on average, collects and recycles 4,500 tons of recyclable material annually.
By entering into agreements with Bestway, Allan Company, and CR&R, the Refuse
and Recycling Enterprise Fund would generate up to $94,500 during the six month
pilot program. Additionally, EPO would avoid approximately $85,500 in transfer and
disposal costs by recycling the material.
ATTACHMENTS:
None. City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Approve an agreement with Bestway Recycling, Inc. to purchase recyclable
material, from May 1, 2014 – January 31, 2015, at a price of $30 per ton for
commingled recycling material and 70% and 90% Official Board Markets
(OBM) for corrugated loose and baled cardboard respectively; and,
2. Approve an agreement with CR&R, Inc. to purchase recyclable material, from
August 1, 2014 – January 31, 2015, for $30 per ton for commingled recycling
material with a potential increase of $7-$10 per ton after characterization
studies are performed; and,
3. Approve an agreement with Allan Company, Inc. to purchase recyclable
material, from August 1, 2014 – January 1, 2015, for $42 per ton for
commingled recycling material; and,
4. Authorize the City Attorney to review/prepare the necessary documents; and,
5. Authorize the City Manager to execute such documents on behalf of the City.