City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
The City Council is requested to authorize entering into a two-year license
agreement with Eco-Logics Environmental, Inc. (Eco-Logics) to process
greenwaste generated by the City of Los Angeles through the Culver City Transfer
Station.
BACKGROUND:
The City of Culver City operates an exclusive residential and commercial refuse
collection and disposal service as a municipal enterprise. The Sanitation Division
(Sanitation) operates solely on revenues generated from the provision of solid waste
collection services to businesses and residents, grants, and the sale of recyclable
material. These revenues cover the costs for refuse collection, disposal, recycling
programs, and public outreach. Sanitation operations are 100% supported by its
enterprise fund revenues and do not receive other funds or tax contributions.
Eco-Logics
In November 2002, the City of Los Angeles (LA) issued a Request for
Qualifications to local greenwaste processing facilities to mulch greenwaste
collected by LA’s residential collection crews. Eco-Logics Environmental Inc. was
selected as a qualifying firm in the Request for Qualifications process and was
selected to proceed to the next level of contractor selection, the Request for Bid
process.
Meeting Date: 10/10/2005 Item Number: C-6
AGENDA ITEM: Authorization to Enter into a License Agreement With Eco-Logics
Environmental, Inc. to Process the City of Los Angeles’ Greenwaste Through the
Culver City Transfer Station.
Contact Person/Dept.: Damian Skinner Phone Number: (310) 253-6402
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Master Public Notification List, Eco-Logics Inc. via telephone on 9/28/05 and City of Los
Angeles via telephone on 9/28/05.
Department Approval:
Charles D. Herbertson 9/29/05
CAO Approval:
Scott Bixby for Jerry Fulwood 10/4/05
City Controller Approval:
Mary Noller for Marlee Chang 10/4/05City of Culver City, California
City Council Agenda Item Report
On May 23, 2003, Eco-Logics Environmental Inc was selected as the lowest most
responsible bidder for LA’s Western District. A map of LA’s Western District is
attached for your review.
On May 26, 2004, the City of Los Angeles Board of Pubic Works authorized LA
staff to enter into an agreement with Eco-Logics for the receipt, processing and re-
use of greenwaste collected from the City of LA’s Western District.
On October 14, 2004, LA staff returned to the Board of Public Works with the final
contract for approval and authorization to commence work for green waste
recycling services.
Eco-Logics entered into a three year agreement with LA commencing on October
14, 2004, and concluding on October 14, 2007. The Agreement has two (2) three
year renewal options which require a ninety day notification of either party to
terminate the agreement. In the absence of such notification, the agreement shall
automatically renew for an additional three years starting October 14, 2007 and
ending October 14, 2010 and so on.
To facilitate the transfer of greenwaste to Eco-Logics, Dave Hare, Owner/President
of Eco-Logics, approached Culver City to inquire about the use of the Culver City
Transfer Station. Mr. Hare offered to pay Culver City several dollars per ton for
depositing greenwaste at the Transfer Station. Under his proposal, Culver City
would be obligated to push the greenwaste into surge piles until it could be hauled
away by his contract hauler.
Staff took Mr. Hare’s proposal under serious consideration and worked out a per
ton fee structure with the City Controller (See Fiscal Analysis Section).
Pilot Program
Staff determined that it would be prudent to conduct a pilot program to determine
whether it would be logistically feasible for LA trucks to deposit greenwaste on the
Transfer Station floor and to allow a private hauler to transfer the greenwaste to
Eco-Logic’s chipping and grinding facility.
Staff consulted the City Attorney who determined that the only thing necessary to
conduct the pilot program would be a joint license agreement with Eco-Logics and
the City, since Culver City was being paid for the use of the Transfer Station.
On November 11, 2004 the pilot program commenced with LA bringing 100 -200
tons per day of greenwaste to the Transfer Station. The pilot program ended on
October 1, 2005.City of Culver City, California
City Council Agenda Item Report
The primary intent of the pilot program was to work out any operational issues or
other logistical problems prior to asking the City Council to enter into a multi-year
license agreement with Eco-Logics.
DISCUSSION:
Pilot Program
During the pilot program, LA brought 100-200 tons per day of greenwaste
generated by LA’s Western District to the Transfer Station which added
approximately 30 collection vehicles through the Transfer Station.
To accommodate the extra vehicles, three logistical procedures were established.
The first measure was to create a schedule for LA. By scheduling LA’s arrival, we
were able to take advantage of “dead time” when Culver City’s vehicles are not at
the Transfer Station.
The second procedure was to utilize a private hauler to remove the greenwaste
from the Transfer Station as it is deposited. One of the requirements of the license
agreement with Eco-Logics is that they will provide a hauler to transport
greenwaste to their facility. Eco-Logics is obligated to pay for all hauling services
and to provide an umbrella insurance policy covering all subcontractor’s in addition
to the hauler’s one million dollar liability insurance.
The final procedure was to implement a “sudden stop” clause. If for any reason
the Transfer Station was unable to accommodate the amount of greenwaste being
deposited, LA’s collection vehicles were redirected to another facility until the
problem was resolved.
Transfer Station Permit
In March 2005, the City Council approved the Transfer Station’s revised Non
Disposal Facility Element to lay the ground work for amending the Transfer
Station’s Solid Waste Facility Permit (SWFP). The application to amend the
Transfer Station’s SWFP is in the final stages of approval by the Los Angeles
County Department of Health Services and is scheduled to be approved in
November 2005. The amended SWFP will increase the amount of municipal solid
waste the Transfer Station can except from 500 tons per day to 1,056 tons per day.
When this happens, Culver City will be able to process all greenwaste generated in
LA’s Western District which amounts to 300-400 tons per day.City of Culver City, California
City Council Agenda Item Report
Staff estimates that 60 collection vehicles would be required to bring 400 tons of
greenwaste to the Transfer Station. To accommodate the extra vehicles, staff will
continue to employ the logistical procedures listed above and require LA to approach
and leave the Transfer Station using La Cienega Boulevard only.
FISCAL ANALYSIS:
Eco-Logics will pay Culver City $5.00 for every ton of greenwaste LA deposits at the
Transfer Station. In addition to the $5.00 fee, Eco-Logics will haul away greenwaste
generated by Culver City and Beverly Hills to their chipping and grinding facility free
of charge. The following table itemizes the annual revenue/savings form the Eco-
Logics proposal based on 200 tons per day of green waste.
Category Revenue
$5.00 dollar/ ton fee @ 200 tons per day $261,000
Disposal Savings $167,960
Sub Total $428,960
Labor/Fuel/Vehicle Maintenance Cost Savings (soft) $70,720
Grand Total $499,680
After the first year, the $5.00 processing fee will automatically increase 3.5% to
$5.18 to account for inflation. The processing fee will continue to increase each year
by 3.5% for the duration of the contract.
If Eco-Logics elects not to accept Beverly Hills’ green waste free of charge, or if
Beverly Hills stops depositing their greenwaste at the Transfer Station, then the
$5.00 dollar processing fee will be increased to $6.90. This increased processing
fee (if enacted) will also increase each year by 3.5% for the duration of the contract.
The following table itemizes the annual revenue/savings at $6.90 per ton.City of Culver City, California
City Council Agenda Item Report
Category Revenue/Savings
$6.90/ ton fee @ 200 tons per day $360,180
Disposal Savings $69,160
Sub Total $429,340
Labor/Fuel/Vehicle Maintenance Cost Savings (soft) $29,120
Grand Total $458,460
ATTACHMENTS:
1) Map of the City of Los Angeles’ Western District
MOTION:
That the City Council:
1) Authorize entering into an Agreement with Eco-Logics to process up to 400 tons
per day of greenwaste generated by the City of Los Angeles through the Culver
City Transfer Station, for a two-year period between October 17, 2005 through
October 17, 2007, with the option to amend the Agreement for an additional two-
year period, between October 17, 2007 through October 17, 2009 with the
approval of the Chief Administrative Officer, and
2) Direct the City Attorney to prepare the necessary documents and authorize the
Chief Administrative Officer to execute the agreement on behalf of the City.
MEETING DATE October 10 2005
AGENDA ITEM Authorization to Enter into a License Agreement With Eco-
Logics Environmental, Inc to Process the City of Los Angeles Greenwaste
Through the Culver City Transfer Station
ATTACHMENTS
Pages|109| Map of the City of Los Angeles' Western District 1East Valley
Refuse — 629 Tons
Green Waste - 419 Tons
Recycle — 153 Tuns
West Valley
Refuse 506 Tons
Green Waste - 412 Tons
Ri rye!, — 1 45 Tens
North Central Distr
Refuse — 620 1
Green Waste - 181 I
Recycle 87 1
Western District
Refuse— 461 Tons
Green Waste - 275 Taos
Recycle -- 140 Tons
Daily Refuse & Green Waste
Generated By Districts In FY01-02
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Sou* Central Distill
Refuse — 666 To
Green Waste - 157 To
...RecyrIr — 54 To
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All Districts
Total Refuse — 3 515 Tons
Total Green Waste -1 800 Tons
Total Recycle — 609 Tons
Harbor, District
Refuse — 162 Tuns
Green Waste - 62 Tons
Reryclt. ---- 30 Tons
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