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Time Set # 29.
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| Board of Supervisors |
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| Subject |
| Hold a public hearing on proposed changes to the solid waste franchise agreements; receive presentation on solid waste franchise negotiations; approve new solid waste franchise agreements with USA Waste of California, Inc. (Waste Management) for Yolo County Exclusive Boundary Area #1 and Recology Davis (Recology) for Yolo County Exclusive Boundary Area #2; and receive and file a list of Recycling and Source Reduction Programs that are exclusive to the unincorporated area of the county that the Board of Supervisors may wish to fund in fiscal year 2020-2021 with franchise fees. (No general fund impact) (Echiburu/Juhler) |
| Recommended Action |
- Hold a public hearing on proposed changes to the solid waste franchise agreements;
- Receive presentation on solid waste franchise negotiations;
- Approve new solid waste franchise agreements with USA Waste of California, Inc. (Waste Management) for Yolo County Exclusive Boundary Area #1 and Recology Davis (Recology) for Yolo County Exclusive Boundary Area #2; and
- Receive and file a list of Recycling and Source Reduction Programs that are exclusive to the unincorporated area of the county that the Board of Supervisors may want to fund in fiscal year 2020-2021 with franchise fees.
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| Strategic Plan Goal(s) |
| This action is primarily focused on the Sustainable Environment strategic plan goal; however, the proper collection of solid waste also ties into our Safe Communities goals by providing additional programs and funding to address illegal dumping, homeless camp cleanup, roadside cleanup of hazardous waste spills that threaten to protect the environment in Yolo County. |
| Reason for Recommended Action/Background |
In 2008, Yolo County entered into two exclusive franchise agreements with USA Waste of California, Inc. (Waste Management) and Recology Davis (Recology), formally known as Davis Waste Removal Recology, to provide solid waste recyclable materials, yard trimmings, and construction and demolition services. Under new requirements set by CalRecycle, as it pertains to recycling mandates set by AB 341 and organics (yard waste and food waste) mandates under AB 1826, significant changes on the expectations of the haulers to assist with such compliance of these new laws is required. In order to facilitate these contractual changes, the IWMD received Board approval on February 26, 2019 to waive the requirement to issue a request for proposals and enter into direct negotiations with the existing waste haulers.
In 2008, the franchise agreements mandated solid waste and recycling collection in the densely populated townships of Capay, Clarksburg, Dunnigan, El Macero, Esparto, Knights Landing, Madison, North Davis Meadows, Willowbank, Yolo, and Zamora however did not mandate it for residents living outside of the township. During the current term of the agreement IWMD staff has also received numerous requests from residents and businesses outside these densely populated townships who want access to recycling and organics collection services. Adding mandated services in piecemeal has stretched staff resources thin by having to create customized community surveys and develop individualized hauler routes and cart deliveries. A leading factor in planning a countywide roll out of new services in 2020 would be to provide consistent services and rates across the county for all residents and businesses. The following communities were added between the time of the first negotiations in 2008 to the current negotiations in 2019:
- 2010 (CR 96/24 - Rural Woodland) - Waste Management
- 2012 (CR 103) - Waste Management
- 2013 (Willowoak) - Waste Management
- 2013 (CR 31/Russell to CR 96/98 in Rural Davis) - Recology
- 2014 (CR 24A) - Waste Management
- 2015 (Clarksburg Rural) - Waste Management
- 2016 (Yellowstone Area of Rural Davis) - Recology
Although the Franchise Agreements will grant franchisees exclusive rights to provide service to single family residents in all areas of the county, the current ordinance and the ordinance revisions which will follow this action, allow residents to satisfy the refuse removal requirements (i.e. dispose of trash from residential properties once per week) by disposing of their own trash at the Yolo County Central Landfill or the Esparto Recycling and Transfer Station by applying for a self-haul exemption. In addition, specific language will be added to address the loose yard trimming collection in Willowbank.
County staff is recommending that the base service level for residents in Waste Management territory include the following:
- 64-gallon trash container (serviced weekly)
- 96-gallon recycling container (collected every other week)
- 96-gallon organics container (collected every other week; alternating weeks with recycling)
- Bulky item coupon for up to 8 large items annually (tires, appliances, mattresses, furniture, e-waste)
The negotiated rate for this bi-weekly service is $33.50 per month, which will result in average 23% rate reduction for the 933 residential and 301 commercial subscribers in the non-dense areas. Residents in the current dense areas will see a $3.57/month increase for the third line of organic services to be added. Residents that want to keep the larger 96-gallon trash container, along with the additional services, will pay $38.73 and those that want to downsize will pay $31.64 which provides further economic incentive for residents to reduce their waste.
County staff is recommending that the base service level for residents in Recology Davis territory include the following:
- 95-gallon trash container (serviced weekly)
- 95-gallon recycling container (serviced weekly)
- 95-gallon organics container (serviced weekly)
- Bulky item coupon for up to 8 large items annually (tires, appliances, mattresses, furniture, e-waste)
The negotiated rate for this weekly service is $42.41 per month, which will result in an increase of $14.32/month for the 60 existing non-dense residential customers and an increase of $16.79/month for current residents in the dense area who have not already subscribed to organics collection. Residents that want to downsize their trash cart will pay $41.20 for a 65-gallon and $40.84 for a 35-gallon to provide economic incentive for residents to reduce their waste.
Additionally, all residences of Willowbank were surveyed with 72% response rate. The results of the survey indicated that a slim majority (51% of respondents) would like to keep once per month collection of loose yard trimming collection to complement the organics carts.
Collectively, Waste Management and Recology currently service 5,419 residents and businesses in unincorporated Yolo County. It is estimated that an additional 1,400 residents and businesses may be affected by the new solid waste franchise agreements and IWMD staff is prepared to conduct further community engagement with those who may be affected prior to the revisions of Yolo County Solid Waste Ordinance No. 1378 coming back to the Board for consideration.
Commercial businesses will be required to contract with the respective haulers in the appropriate boundary area unless they apply for and can demonstrate that solid waste, recycling and organics are self-hauled appropriately per the state mandates set under AB 341 and AB 1826. Regardless of whether the Board approves the new residential requirements, businesses that currently generate 4-yards or more of waste per week are already required to have an onsite recycling and organics program. IWMD staff will return to the Board in early 2020 with ordinance revisions that support these new regulations.
Lastly, under both residential and commercial lines of business, the following exemptions may apply which will additionally provide customers the ability to comply with state mandates without having service provided by either of the franchisees:
- Property is inaccessible due to weight limitation of Contractor provided trucks and both Contractor and County have verified such limitations.
- Property owner has agreed to self-haul waste weekly and County has agreed to monitor compliance with this requirement.
- Premises is vacant for two or more months and Single-Family Premises owner has provided sufficient evidence that the Single-Family Premises is not being occupied. (ex. For Sale, Under Renovation, etc.)
- Single-Family Premises owner has demonstrated that they actively Compost both Yard Trimmings and Food Waste onsite and therefore have been granted an exemption from Residential Organics services.
- Accessory dwelling unit in immediate proximity of Single-Family Premises that is serviced by Contractor and has sufficient container size to accommodate waste of two households.
- Vacation hold may only apply once per calendar year if requested by Customer; however, in no event shall collection service or billing be placed on hold for more than 3 weeks.
- Commercial dumpster in Yolo County
- Population density less than 75 people per square mile if approved under SB 1383
Therefore it is the recommendation of IWMD staff that the Board approve the new solid waste agreements with Waste Management and Recology and extend the exclusive boundaries to include all of unincorporated Yolo County to comply with the diversion requirements set by AB 341 and AB 1826 and enhance our Recycling and Source Reduction Programs. |
| Collaborations (including Board advisory groups and external partner agencies) |
The IWMD hired HF&H Consultants, LLC, in January of 2019 to perform an independent review of the draft, amended franchise agreement prior to initiation of a negotiation process. HF&H was selected based upon their past experience preparing the County's current franchise agreements and their expertise performing more than 350 solid waste and recycling service procurements, contract development and negotiations for government agencies in California. The new draft agreements have also been reviewed and approved by County Counsel.
For community engagement, IWMD staff began attending community meetings back in February of 2018 and made 13 presentations in Willowbank, Madison, Esparto, Capay, El Macero, Esparto, Yolo, Knights Landing , Dunnigan, Wild Wings, and Clarksburg through October of 2018 to obtain feedback on satisfaction with current waste haulers, level of services, and to explain the two new regulations listed above that will change the course of solid waste collection in the future. In addition to these community meetings, IWMD staff conducted surveys by mail to all residents in Clarksburg, Wild Wings, Willowbank and Yolo who addressed specific waste and recycling needs. An example of this is working with Willowbank, who has formed a solid waste subcommittee to specifically address loose pile collection of yard trimmings.
From January to September of 2019, IWMD staff attended a second round of community meetings to provide an update on what solid waste rates and services had been negotiated. In total, this provided 27 opportunities for community members to received information and provide support or concern regarding changes to the solid waste franchise agreements.
Lastly, in October of 2019 IWMD staff mailed out a survey to a sample of 1,000 residents and businesses in the current non-dense areas to gain feedback on new services and rates. The majority of respondents are in support of the new program lowering rates and offering additional services however IWMD staff will present the challenges that lie ahead and address possible solutions through the attached Recycling and Source Reduction Programs plan for FY 20-21. |
| Competitive Bid Process |
The IWMD received Board approval on February 26, 2019 to waive the requirement to issue a request for proposals (RFP) and enter into direct negotiations with the existing waste haulers. The approval waste granted based upon the following determinations:
- Due to IWMD staff experience, the RFP process in the waste hauling market has a tendency to result in less advantageous terms for residents.
- Due to the timing of the current term, IWMD staff had enough time to negotiate new services and rates and if not satisfactory to the Board, would still have time to take the agreements out to RFP.
- The IWMD evaluated the level of service provided by the existing franchisees through community outreach surveys and review of contract compliance and determined that a competitive bidding process will not result in any material improvements in the level of service rates as compared to what has been achieved through direct negotiations.
- The significant cost of implementing the competitive bidding process would divert resources from other important waste services, and in the best interest of public health and safety, direct negotiations were in the best interest of the County.
- In focusing on our efforts to meet our strategic plan goals under the Sustainable Environment and goals set within our Climate Action Plan, IWMD staff also looked at other franchise haulers who could potentially provide similar services. However, only Recology and Waste Management have truck yards within Yolo County which meant any haulers outside of the County would increase in our carbon footprint through additional transportation time.
- Lastly, we have the community of Willowbank who requested a specialized level of service for loose pile collection of yard trimmings which is only provided by our existing haulers. IWMD staff was able to negotiate the inclusion of the program even though it is being phased out in other areas of the County.
Sample Rates Negotiated:
| Hauler: |
Waste Management |
| Residential Current Rate "Non-Dense/Outside of Town" |
$ 57.78 |
| Residential New Rate "Dense/Township/Outside of Town" |
$ 33.50 |
| Residential Current Rate "Dense/Township" |
$ 29.93 |
| Residential New Rate "Dense/Township" |
$ 33.50 |
| Hauler: |
Recology Davis |
| Residential Current Rate "Non-Dense/Outside of Town" |
$ 28.09 |
| Residential New Rate "Dense/Township/Outside of Town" |
$ 42.41 |
| Residential Current Rate "Dense/Township" |
$ 42.69 |
| Residential New Rate "Dense/Township" |
$ 42.41 |
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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: |
| The estimated minimum value of these franchise agreements is approximately $5,000,000 in fees and charges the private hauler will collect annually. The County will receive 10% of the gross revenues of the franchisee in franchise fees, which the franchisees have agreed to pay for the privilege of receiving the franchise rights set forth in the agreements. The estimated $500,000 annually is used to support solid waste, recycling and organics collection program as outlined in the draft Recycling and Source Reduction Programs plan. |
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