Legislation Details

File #: HIST-11107    Version: 1 Subject:
Type: Historical Status: Action Item
In control: City Council Meeting Agenda
On agenda: 4/13/2009 Final action: 4/13/2009
Title: (1) Adoption of a Resolution Establishing an Organic Waste Composting Fee Schedule; and (2) Approval of a Professional Services Agreement with Athens Services to Provide Transfer and Composting Services for a One Year Period with Two Optional One Year Renewals.
Attachments: 1. (1) Adoption of a Resolution Establishing an Orga - A-1__09-04-13_PW-EPO_Sony Food Waste Recycling Fee_SPE Comments - FINAL.doc, 2. (1) Adoption of a Resolution Establishing an Orga - Resolution regarding Organic Waste Composting Fee.pdf
City of Culver City, California City Council Agenda Item Report RECOMMENDATION: Staff recommends the City Council (1) adopt a Resolution establishing an organic waste composting fee and (2) approve an agreement with Athens Services to transport and process organic waste generated through a pilot food waste recycling program. BACKGROUND: The Public Works Department strives to increase the City’s diversion rate by implementing cost effective and high yielding recycling programs. Programs such as weekly residential recycling collection, commercial co-mingled recycling collection, and commercial cardboard collection are cornerstones of the City’ recycling program. Through extensive research and networking, staff discovered that several surrounding cities have increased their trash diversion rates by implementing an organic waste composting program. Cities such as Santa Monica and West Hollywood have been able to increase their diversion rates by employing composting programs in their respective restaurant districts. Staff believes that Sony Pictures Entertainment (SPE ) and the downtown restaurants that are on the communal compactor system are ideal candidates for an organic waste composting program because of the amount of food these business generate and their ability to keep bottles and cans out of their trash compactors. Meeting Date: 04/13/09 Item Number: A-1 AGENDA ITEM: (1) Adoption of a Resolution Establishing an Organic Waste Composting Fee Schedule; and (2) Approval of a Professional Services Agreement with Athens Services to Provide Transfer and Composting Services for a One Year Period with Two Optional One Year Renewals. Contact Person/Dept.: Damian Skinner Phone Number: (310) 253-6421 Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X] Public Hearing: [] Action Item: [X] Attachments: [X] Public Notification: Sony Pictures Entertainment on 3/26/09, Culver City Downtown Business Association on 3/30/2009, Master E-Mail Notification List (04/08/09) Department Approval: Charles D. Herbertson (04/01/09) City Attorney Approval: Carol Schwab (by H. Baker) (04/07/09) Chief Financial Officer Approval: Jeff Muir (by N. Kimball) (04/08/09) City Manager Approval: Jerry B. Fulwood (04/08/09) City of Culver City, California City Council Agenda Item Report DISCUSSION: In the fall of 2008, staff approached SPE to implement an organic waste composting program at their facility on Culver Boulevard. Logistics and outreach requirements were fully vetted by staff and SPE to determine the feasibility of starting a new environmental program. Since organic waste composting is substantially more expensive than disposal, staff provided SPE with a fee proposal that would cover the additional cost of the program. In January 2009, SPE expressed its interest in moving forward with a one-year organic waste pilot program and the planned fee. Staff proposes to start a one-year organic waste pilot program with SPE in May 2009 and take the lessons learned to implement a similar program for the downtown restaurants. Annually, the pilot program will divert approximately 1,000 tons of trash from the landfill which will increase the City’s diversion rate by approximately 1%. Staff optimistically anticipates implementing an organic waste composting program for downtown restaurants during Fiscal Year 2010-11. Organic Waste Recycling Process Organic waste collected in compactors will be taken to Athens Services, an organic waste composting company, located in Victorville. Athens uses an extensive sorting process to remove residual non biodegradable materials before the organic waste is mixed with green waste. The mixture is heaped into windrows and sits for three months to allow the material to degrade. Athens’ employees monitor the windrows for heat and moisture to ensure that ideal environmental conditions exist to facilitate the composting process. The resulting compost is sold to local farmers. FISCAL ANALYSIS: Culver City Sanitation will transport and empty food waste compactors at the City’s Transfer Station. Athens’ long-haul tractor/trailers will transport the food waste from the Transfer Station to their facility located in Victorville. The cost for this service is $50.00 per ton. The $50.00 per ton composting fee is substantially more expensive than landfill fees. The City currently pays Chiquita Canyon landfill $28.00/ton to dispose of the City’s trash. Staff is proposing a new fee to bridge the gap between disposal and composting cost. An analysis of the City’s Drop-body trash rate revealed that increasing it from $80.87 to $95.87 will cover the additional cost of the program. A larger increase is not needed since City forces are not transporting the material to its final destination. City of Culver City, California City Council Agenda Item Report In the event that Athens Services is no longer willing to participate in the City’s organic waste composting program, Staff proposes that the City Council adopt a $34.00 per empty contingency fee. Without the aid of Athens Services, organic waste compactors cannot go to the Transfer Station for subsequent transfer. Instead, compactors will be hauled directly to a composting facility from their point of origin. The $34.00 per empty contingency fee is necessary to cover the additional transportation cost. The fee has been set to recover 100% of the increased cost; therefore, there is no additional fiscal impact to the division. ATTACHMENTS: 1. Organic Waste Composting Fee Resolution 2. Letter from Athens Services dated March 17, 2009 MOTION: That the City Council: 1. Adopt a Resolution to establish an Organic Waste Composting Fee Schedule effective May 1, 2009, and, 2. Approve a professional services agreement with Athens Services to provide organic waste transfer and composting services for an initial term concluding on June 30, 2010 with two optional one year renewals upon mutual agreement of both parties; and, 3. Authorize the City Attorney to review/prepare the necessary documents; and, 4. Authorize the City Manager to execute such documents on behalf of the City. MEETING DATE: 4/13/09 AGENDA ITEM: Adoption of a Resolution of the City Council Establishing an Organic Waste Composting Fee Schedule; and Approval of a Professional Services Agreement with Athens Services to Provide Transfer and Composting Services ATTACHMENTS Pages|109| Organic Waste Cornposting Fee Resolution 1-2|109| Letter from Athens Services dated March 17, 2009 31|101010|4 1|1010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2009-R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, ESTABLISHING AND• LEVYING AN ORGANIC WASTE COMPOSTING FEE SCHEDULE. WHEREAS, pursuant to Section 5.01_070.A of the Culver City Municipal Code, the City Council may, by resolution, establish fees for solid waste handling. NOW, THEREFORE, the City Council of the City of Culver City, DOES HEREBY RESOLVE as follows: 1. A new refuse collection fee shall be established for the following service: Organic Composting. Organic waste collected in compactors will be taken to an organic waste composting company for processing. Organic waste is sorted to remove residual non biodegradable materials before the organic waste is mixed with green waste. The mixture is heaped into windrows and sits for three months to allow the material to degrade. The resulting compost is sold to local farmers. 2. The rates for organic waste composting shall be as follows: a. Compactor Empty: $162.36 per event (plus Organic Waste tonnage fee). b. Organic Waste: $95.87 each ton, measured to the nearest 100th of a ton. c. Transportation: $34.00 per event. In the event a compactor bypasses the Transfer Station and is hauled directly to a composting -1-2|10101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. facility, a fixed fee of $34.00 shall be charged in order to cover the additional transportation cost This fee shall be in addition to the Compactor Empty and Organic Waste tonnage fees_ 3. The Refuse Collection Fees set forth in Section 2 shall be collected pursuant to monthly billing procedures established by the City Finance Department. APPROVED and ADOPTED this day of 2009. D. SCOTT MALSIN, MAYOR City of Culver City, California -2- MARTIN COLE, City Clerk A09-00124March 17, 2009 City of Culver City 9225 W Jefferson Culver City, CA 90232 Attn: Damian Skinner Dear Damian, Athens Services is pleased to present an offer to Culver City for organic waste recycling. Athens will provide any and all necessary transportation services along with any required indemnifications and permits_ The process commences with an empty Athens Services semi truck entering the Culver City Transfer Station. The empty semi truck is then loaded with the organic waste material at your facility by your equipment and staff to our tonnage specifications. The semi truck proceeds to be weighed at your facilities scale to establish the outgoing organic waste tonnage. The organic waste material is then transported to our compost facility, located in Victorville, California. Athens will provide a report each month which will substantiate the accounting of the removal of organic material. The cost for transportation and processing of organic waste will be $50.00 per ton. Additional charges will apply for contaminated loads. Athens Services is pleased and proud to partner with the City of Culver City in this recycling venture. By doing so, Culver City benefits by reducing the amount of organic waste material going to the landfill helping the city in achieving the state mandated diversion goals. With this one step, we help reduce global warming and assist our state in going green. I look forward to your response. Sincerely, Tom Ybarra Director of Sales & Municipal Relations|1013|