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Consent-Community Services # 23.
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| Board of Supervisors |
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| Subject |
| Approve agreement with the County of Sacramento for the delivery of up to 30,000 tons per year of organic waste to be composted at the Yolo County Central Landfill and approve first amendment to Agreement No. 20-198 and the seventh amendment to Agreement No. 16-113 with Northern Recycling to conform to various requirements of the County of Sacramento agreement. (No general fund impact) (Echiburu/Moore) |
| Recommended Action |
- Approve agreement with the County of Sacramento for the delivery of up to 30,000 tons per year of organic material to the Yolo County Central Landfill for an initial commitment of five years beginning in July 2022 with the possibility of three one-year extensions;
- Approve first amendment to Agreement No. 20-198 with Northern Recycling, LLC, requiring Northern Recycling, LLC, to conform to various requirements of the County of Sacramento agreement; and
- Approve seventh amendment to Agreement No. 16-113 with Northern Recycling, LLC, requiring Northern Recycling, LLC, to conform to various requirements of the County of Sacramento agreement.
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| Strategic Plan Goal(s) |
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Sustainable Environment |
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Flourishing Agriculture |
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| Reason for Recommended Action/Background |
These actions will allow the County to secure between 10,000 and 30,000 tons of organic material per year to be delivered to the Yolo County Central Landfill (YCCL) for composting. Securing this contractual commitment to deliver organic materials will help Northern Recycling to secure financing to construct a state-of-the-art compost facility (CF) and construction, demolition and inert debris facility (CDIF) at the landfill.
Background
California has a statewide goal to divert 75 percent of waste from the Yolo County Central Landfill (YCCL) by 2020. In February 2007, the California Department of Resources Recycling and Recovery (CalRecycle) adopted Strategic Directive (SD) 6.1, which calls for a 50 percent reduction in the amount of organics being disposed in the landfills by 2020. Organic waste makes up approximately one third of the 35 million tons of waste that is currently landfilled in California. To aid in meeting the state wide 75 percent goal, Assembly Bill 1826 was passed in September 2014 requiring businesses, including state agencies that generate threshold amounts of organic waste per week to have organic waste recycling programs on or after April 1, 2016. To meet these goals, the Division of Integrated Waste Management (DIWM) has implemented a three-part strategy: 1) having an organic waste transfer facility, 2) an anaerobic composter facility, and 3) an in-vessel digester (liquid digester), and 4) partnering with Northern Recycling for the construction of a state-of-the-art composting facility at the YCCL.
On April 23, 2019, the Board authorized the submittal of a proposal to the City and County of Sacramento and the City of Folsom for Organic Material Diversion Services, and also authorized negotiations with Northern Recycling, Inc., for the financing and construction of a regional compost facility and construction, demolition and inert facility at the Yolo County Central Landfill (YCCL).
The Yolo/Northern proposal resulted in offers to enter into separate contracts with the City and County of Sacramento. Securing commitments to deliver organic materials will allow Northern Recycling, LLC, to secure financing to construct a state-of-the-art compost facility (CF) and construction, demolition and inert debris facility (CDIF) at the YCCL, which are projected to be operational in July 2022.
The Department of Community Services, Integrated Waste Management Division (IWMD) has been negotiating with the County of Sacramento to deliver organic materials to the YCCL. The County of Sacramento wants to begin delivery in July, 2022, when the compost facility becomes operational. The contract will be for an initial 5-year period with 3 one-year extensions, for a total of 8 years. The contract is valued at a maximum of about $25 million over the 10-year period and also includes hauling costs, which Northern Recycling will provide. The negotiated cost for the Sacramento contract is $73.20/ton of organics (green waste and food/green waste mixtures), increasing with CPI and not including hauling costs. For comparison, the Yolo County cities are currently paying $62/ton for green waste and $66/ton for food/green waste mixtures, also increasing with CPI.
Northern Recycling, LLC, is currently in the design phase of a compost facility with construction planned to begin in Spring 2021. Northern is financing the capital costs to construct the compost facility and transferring the Yolo Solano Air Quality Management District (YSAQMD) permit from Northern’s Zamora Compost Facility to the YCCL.
Northern Recycling, LLC, is currently managing organic waste that is being placed in the anaerobic composter cells. To provide a safety net for Yolo County, Northern’s current contract commits them to haul the County of Sacramento tons to Zamora or Napa compost facilities if the planned operational start date of July 2022 isn’t achieved. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The proposal in response to the RFP let by Sacramento County (with the City of Sacramento and Folsom) was presented to the Waste Advisory Committee (WAC) on February 28, 2019. One WAC member noted that increased truck traffic could result in increased road damage and repair costs and asked if that was considered. It was stated by the Division Director that if Yolo County were successful in obtaining additional organic tons the Integrated Waste Management Division would confer with the Public Works Division as to an appropriate funding assistance for road maintenance. There were no other comments from WAC members on the proposal. |
| Competitive Bid Process |
| The Request for Proposal process initiated by Sacramento County and responded to by Yolo County was a competitive process. Yolo County was selected to manage a portion of the County of Sacramento’s organic waste. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
This is a revenue generating agreement. Beginning in July 2022, the County will receive $10.46 per ton of organics with the remainder of the gate fee paid to the Northern. This will generate Sanitation Enterprise revenue between $105,000 to $314,000 per year, increasing with the consumer price index annually.
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