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Consent-Community Services # 44.
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| Board of Supervisors |
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| Subject |
| Approve ninth amendment to Agreement No. 16-113 and second amendment to Agreement No. 20-198 with Northern Recycling LLC for organic waste services at the landfill. (Fiscal year 21/22 Annual Sanitation Fund Revenue estimated at approximately $400,000) (Echiburu/Kieffer) |
| Recommended Action |
- Approve ninth amendment to Agreement No. 16-113 to revise the compensation section of this agreement;
- Approve second amendment to Agreement 20-198 to revise the compensation section and site lease boundary for the planned composting facility; and
- Authorize the Chair of the Board of Supervisors to sign the amendments.
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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 |
On July 12, 2016 the Board of Supervisors approved Agreement No. 16-113 with Northern Recycling for off-site composting of organic material received at the landfill. Since this original agreement, several amendments have been approved to extend the term of the agreement, adjust the rates, incorporate the operation of the landfill's anaerobic composting facility and take over the operation of the construction, demolition and inerts (CDI) recycling facility. On July 21, 2020 the Board of Supervisors approved Agreement No. 20-198 with Northern Recycling to design, construct and operate a composting facility and a CDI recycling facility. Design and construction of the facility is currently underway with a planned completion in the fall of 2022. Once the facility is complete, Agreement No. 16-113 will terminate and all operations will fall under Agreement No. 20-198.
Also under construction is the County's in-vessel digester facility which is designed to accept commercial food waste, packaged waste food products and food related liquid wastes and digest them anaerobically (without oxygen) to produce biogas which can be used for fuel or to generate power. The food depackager portion of the facility is operational with the remaining equipment scheduled to be operational this fall.
Various customers currently bring food waste to the landfill and this material is sent to either the in-vessel digester for depackaging or straight to the landfill’s existing anaerobic composting facility. As part of the County/Northern Recycling public private partnership, Northern Recycling is interested in bringing in additional organic wastes to the landfill as feedstocks to the in-vessel digester as well as the anaerobic composter. Receiving of this additional organic waste will benefit the County through increased revenues and will allow Northern an outlet for material from an expanded customer base, similarly, increasing their revenue. For organic material sourced by Northern and going to a County-owned facility (either the depackager or anaerobic composters) they will forego a $25/ton processing fee and pay the County either $45/ton (for very low contamination organic waste) or $70/ton for the remaining organic waste. This results in a net $70 or $95/ton received by the County. Acceptance rates for these wastes were negotiated and included in both of the amendments to ensure uninterrupted service once the new composting facility is completed.
Beginning July 1 of this year, Northern Recycling will be taking over the landfills CDI recycling facility. Under the current operations, the vast majority of the mixed CDI waste received at the landfill is transferred to a site in Sacramento for further processing and sorting. In preparation for their transition to this operation, Northern Recycling did a review of the incoming CDI loads to the landfill and informed County staff that it would be beneficial to do a limited on-site recycling of select, high recyclable content loads, rather than transferring all of this material off site. This on-site sorting will benefit Northern Recycling by allowing them to recover some labor and equipment costs and will benefit the County by reducing the overall cost of the operation. The YCCL typically receives 1,000 to 1,200 tons of CDI material each month. Assuming 100 tons per month are of high recyclable content and are sorted with an 80 percent recovery rate, the county will save approximately $5,000 compared to transferring all of that material off-site. Once the new composting and CDI facility construction is complete, all CDI loads will be sorted on-site. The amendment to Agreement 16-113 includes compensation for this sorting.
As part of the design of the new composting facility, some minor modifications to the site lease granted Northern Recycling under Agreement No. 20-198 were necessary. The previous boundaries included one parcel for the compost facility and a separate parcel for finished compost storage. The new site lease boundary included in this amendment is for one contiguous facility that also reduces the overall leased property by 2.3 acres compared to the original 2 parcel agreement.
Fiscal Year 2021-2022 annual revenue to the sanitation enterprise fund for the organic waste brought to the landfill by Northern Recycling is estimated at approximately $400,000. This revenue estimate is based on 7,000 tons of organic solid waste and 2,000 tons of organic liquid waste. Annual waste and revenue are expected to grow over the coming years due to increased marketing and implementation of recently adopted regulations. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County Counsel has approved the amendments as to form. |
| Competitive Bid Process |
| Agreement No. 16-113 was originally awarded based on a competitive request for proposals (RFP) process in 2016. Agreement No. 20-198 was the result of several years of negotiation to close the existing Zamora composting facility and relocate its operation to the landfill. |
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