Non-Exclusive Solid Waste Collection Franchise System – Review

1. Non-Exclusive Solid Waste Collection Franchise System – Review April 28, 2014

2. Overview • 3-year review of City’s franchise system • Seeks to answer 2 questions • What system is best for Pasadena today? • What steps Pasadena should take in furtherance of policies to increase conservation & sustainability? • City Council strategic goals • Open Space & Conservation Element • UN Urban Environmental Accords • Green City Action Plan

3. Chronology • August 2007 – City Council approved closure of solid waste collection franchise system • Reduce environmental pollution & number of trucks • Addition of new haulers would cause further air & noise pollution, road damage & congestion • Addition of new haulers not likely to improve service or increase competition • Provide staff time to enforce franchise requirements • Directed staff to update City Council every 3 years on status of franchise system

4. Vehicle Impacts on Pavement

5. Chronology • December 2010 – City Council received 3-year franchise update • Approved retention of closed system • Directed Public Works to report back in 3 years • April 8, 2014 – MSC received 3-year franchise update • Recommended City Council retain closed system

6. Franchise Statistics

7. Current Franchise System • Statistics • 22 haulers service 3,465 commercial & multi-family customers • 5 haulers serve 3,233 customers (96% of customer base) • 17 haulers serve 142 customers (4% of customer base) • Range from 1 to 40 customers

8. Franchise System Performance • Diversion • FY 2012 Citywide diversion rate – 75% • 75% minimum diversion rate for C&D • 100% of haulers in compliance (77% to 100%) • 60% minimum recycling diversion rate for solid waste • 100% of haulers in compliance (60% to 100%) • Time to enforce franchises • 12 (35%) fewer franchises since 2007 • Termination provisions for PMC non-compliance • Annual audits

9. Franchise System Performance • Reduce environmental pollution • Phase-in of alternative-fuel vehicles per SCAQMD Rule 1193 to achieve 100% use by July 1, 2018 • 100% of haulers in compliance • Reduce number of vehicles on City streets • 49 (31%) fewer vehicles since 2007 • 3-year average number of days exceeding federal ozone standard between 2010 & 2012 • Decreased by 74.6%

10. Alternative Service Arrangements • Common commercial/multi-family service arrangements • Fully open non-regulated system • Non-exclusive permit system • Non-exclusive franchise system (current model) • Single exclusive franchise • Multiple exclusive franchise • Non-exclusive (current system) & exclusive franchise systems provide agencies greatest control over haulers

11. Exclusive System Benefits

12. San Jose Model • San Jose • June 2012 – moved from non-exclusive (20 haulers) to exclusive system • Reasons for transition • Increase diversion from commercial waste stream due to limited infrastructure investment for recycling by current haulers • Implement efficient citywide service delivery models to improve economies of scale & reduce environmental impact • Performance indicators • Advanced recycling & commercial-scale anaerobic digestion facilities opened • Commercial recycling rate increased from 25% to 70%

13. Los Angeles Model • Los Angeles • Early-2017 – implementing commercial exclusive system • 11 geographic zones • Contracts awarded via competitive bid • Reasons for transition • 120+ haulers • Trucks traversing city on uncoordinated schedules • Extra wear & tear on roads • Air pollution • Anticipated benefits • Increased diversion • Reduced environmental footprint • Expanded programming • Cost controls

14. Conclusions/Next Steps • Industry best practice – exclusive system • Take steps now to position Pasadena to meet anticipated future needs • Move toward Zero Waste 2040 • Possible state-imposed increased diversion rates • Desire to further reduce environmental pollution • Need for innovative processing facilities in local area • Recent RFP process for recyclables & organics processing shows need for infrastructure

15. Possible System Modification • CA Public Resources Code contains procedures that must be followed when agency is considering modification to solid waste collection system • Requires agencies to give 5-year notice of intent to implement exclusive solid waste franchise(s) to companies who have been authorized to operate in city for more than 3 years

16. Recommendations Retain closed Non-Exclusive Solid Waste Franchise System & direct staff to report back in 3 years to City Council with next review of authorized haulers to ensure competitive pricing & options for solid waste recycling & disposal Direct City Manager to place existing franchisees on notice of City’s intent to consider modification of current Franchise System at time 5-year notice expires pursuant to CA Public Resource Code which allows agencies to grant exclusive operating rights to solid waste disposal companies

17. Zero Waste Plan • Summer 2014 – consideration by MSC/Council • Compostable initiatives-development upon adoption • Residential – pilot program for comingled food scraps, compostables & yard waste • Commercial – pilot program with franchise haulers • City events/public venues – compostable collection • Foster/develop compostable processing opportunities • Amend PMC to include exemptions for grass roots efforts • Increase hauler performance requirements