HomeMy WebLinkAboutAgenda Report - May 7, 2008 K-02AGENDA ITEM 1401"
CITY OF LODI
COUNCIL COMMUNICATION
TAA
AGENDA TITLE: Approve Business Points for Solid Waste Franchise Renewal
MEETING DATE: May 7,2008
PREPARED BY: Public Works Director
RECOMMENDEDACTION: Approve business points described belowfor the solid waste
franchise renewal.
BACKGROUND INFORMATION: In December2007, the City Council directed staff to attemptto
negotiate a renewal of the solid waste franchise with Central Valley
Waste Services (CWVS). The intent was to do so before the
required decision point (renew or bid) in the franchise agreement as
this would give the City the most leverage in negotiating a favorable extension and still leave time to have
a request for proposals prepared if the decision was not to renew.
Staff has met with CWVS representatives on several occasions with the following goals:
• Work with the existing franchise agreement framework
• No major changes in the basic services (i.e., the three -cart system) nor the rate structure
• Keep the rates where they are now; i.e., no increase
• Improve services to both individual customers for special trash removal, such as improvements to
the voucher system, and the citizenry as a whole in terms of keeping the City clean
At the April 2, 2008 City Council meeting, a set of preliminary business points were presented to the
Council and suggestions were provided to staff as summarize below.
• Involve employees in the franchise renewal discussions
• Limit the annual rate escalatorto 80 percent of the change in the Consumer Price Index
• Contact other cities to determine the effectiveness of street sweeping provided under the solid
waste franchise
Three meetings were held with staff and representatives of the Maintenance and Operators Unit.
Agreement was reached to continue street cleaning and parks trash pickup operations utilizing City staff.
With these goals in mind, the parties met and have agreed upon renewal business points. Staff is
seeking Council direction on these points prior to drafting the actual renewal language.
1) Street sweeping — CWVS will pay to the City $470,000 annually as reimbursement of costs
associated with street sweeping, leaf pickup, downtown cleaning and bus stop trash collection.
The amount of the payment will annually increase by 80 percent of the change in the Consumer
Price Index. CWVS will waive the tipping fees charged for dumping the street cleanings and fall
leaves, a value of approximately $50,000.
APPROVED:
Bla City Manager
K MMSolid WastekUranchiseRenewa15-7.08 doc 4125/2008
Approve Business Points for Solid Waste Franchise Renewal
May 7,2008
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2) Parks trash collection — CWVS will pay to the City $71,500 annually as reimbursement of costs
associated with trash collection at City parks. The amount of the reimbursementwill annually
increase by 80 percent of the change in the Consumer Price Index.
3) City service — CWVS will service the trash containers/bins at City facilities, including parks, at no
charge to the City, a value of approximately $70,000.
4) Billing service — CWVS will continue to reimburse the City for a share of billing expenses, and the
amount will annually increase by 80 percent of the change in the annual Consumer Price Index.
For the past several years, the amount has been fixed.
5) Hazardouswaste — CVWS will host quarterly electron iduniversal waste and annual household
hazardous waste collection events at their Turner Road facility or other Lodi location.
6) Annual rate adjustments—will be 80 percent of the change in the annual Consumer Price Index.
7) Renewal term —is another eight years with one CWVS option to renew for an additional seven
years. Staff recommends that the new term start January 1, 2009.
8) Technical ordinance revisions — CWVS has asked for clarification of some definitions of service
classes.
9) Compactor rates — CWVS has asked for a new rate for servicing certain types of large trash
compactors that are labor intensive.
The business points will need to be drafted into detailed terms in an amendment to the franchise
agreement, including performance criteria and measures as appropriate. Pending Council direction, staff
will attempt to have this done and brought back to the City Council for approval before the end of
FY 08109.
FISCAL IMPACT: The proposed terms will have a positive fiscal impact on the City and its
taxpayers in the form direct cost savings of approximately $120,000 and
new revenues totaling $541,500.
FUNDING AVAILABLE: Not applicable.
F. Wally San lin
Public Works Director
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KAWPISofld Waste\CFranchiseRenewal5-7-08.doc 412512008
CITY COUNCIL
JOANNE L. MOUNCE, Mayor
LARRY D. HANSEN.
Mayor Pro Tempore
SUSAN HITCHCOCK
BOBJOHNSON
PHIL KATZAKIAN
CITY OF LODI
PUBLIC WORKS DEPARTMENT
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
EMAIL pwdept@lodi.gov
http:\\www.lodi.gov
May 2,2008
Mr. Thom Sanchez
Central Valley Waste Services, Inc
P.O. Box 241001
Lodi, CA 95241-9501
SUBJECT: Approve Business Points for Solid Waste Franchise Renewal
BLAIR KING
City Manager
RANDIJOHL
City Clerk
D. STEVEN SCHWABAUER
City Attorney
F. WALLY SANDELIN
Public Works Director
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, May 7, 2008. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the regular calendar for Council discussion. You are welcome to attend.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Randi Johl, City Clerk, at 333-6702.
If you have any questions about the item itself, please call me at 333-6709.
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F. Wally Sandelin
• Public Works Director
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Enclosure
cc: City Clerk
NURANCHISERENEWAL5-7-08.DOC