HomeMy WebLinkAboutD-1 Staff Report - Organic Recycling ProgramSCHEDULED ITEM
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: LOUIE F. LACASELLA, SENIOR MANAGEMENT ANALYST
DATE: APRIL 16, 2018
SUBJECT: CONSIDERATION OF ATHENS SERVICES’ PROPOSED ORGANICS WASTE
RECYCLING PROGRAM
BACKGROUND:
At the request of the City Council, this item was continued from the April 2, 2018 City Council meeting.
At the January 16, 2018 City Council meeting, the City Council approved a compliance action plan
outlining the City’s intent to comply with Assembly Bill (AB) 1826 (Mandatory Commercial Organics
Recycling), through the implementation of an organics waste recycling program, which includes
authorizing organics rates at the annual refuse rate adjustment set for June to become effective July 1,
2018. Athens Services, the City’s franchise waste hauler, is proposing an AB 1826 program for the City
that will divert organic materials from landfills to reduce greenhouse gas emissions. The proposed action
receives Athens’ presentation regarding their proposed program and directs Staff to begin
implementation of the program, which includes incorporating the organics rates into the annual refuse
rate adjustment.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1)Direct Staff to work with Athens Services to begin implementation of the Organics Waste
Recycling Program, which includes incorporating the organics rates into the annual refuse rate
adjustment for City Council consideration.
ANALYSIS:
Building upon the requirements of Assembly Bill (AB) 341 (Mandatory Commercial Recycling), which
mandated commercial waste recycling, the State of California is now mandating organic recycling under
AB 1826. As a result of the signing of AB 1826 into law, the new mandatory organic recycling
requirements will be phased in over several years and will assist the State in meeting its recycling goal
of 75% by 2020. Requirements for organic recycling depend on the amount of organic waste generated
APPROVED
CITY COUNCIL
4/16/2018
Council directed Staff to explore all options
Athens Services Proposed AB 1826 Program
April 16, 2018
Page 2
weekly by the business. Over time, more businesses will be required to comply because the organic
waste threshold that triggers additional compliance will be lowered.
Below, please find the implementation schedule as mandated by law and the current number of Azusa
businesses affected by each period:
Why Require Organics Recycling?
The goal of AB 1826 is to help California achieve aggressive recycling and greenhouse gas emission
goals. California landfills take in about 30 million tons of waste each year, of which more than 30% is
organic. The State has determined that these organics should be composted or used to produce
renewable energy rather than going into landfills. Greenhouse gas emissions resulting from the
decomposition of organic waste in landfills have been identified as a significant source of emissions
contributing to global climate change.
City Responsibility
In addition to impacting businesses and large multi-family complexes, the City is required by state law
to implement an organic waste recycling program “that is appropriate for that jurisdiction and designed
specifically to divert organic waste generated by businesses” that are required by AB 1826 to implement
organic waste recycling. The City is now responsible for reporting on the progress of implementing the
program as part of its annual report due to CalRecycle. The program required to be implemented by
cities targeted to commercial organic waste generators may include, but is not limited to, implementing
a mandatory commercial organic waste recycling ordinance, enforcement provisions, or requiring a
program through a franchise agreement. The City provided CalRecycle, the AB 1826 compliance action
plan approved by the City Council at the January 16, 2018 City Council meeting, which included a
definite timeline for implementation (Attachment 1). If the City is perceived as not making a “good faith
effort” to comply with the law, the City could be potentially exposing itself to fines of up to $10,000 per
day for non-compliance.
City’s Organic Waste Recycling Program
The City operates under an exclusive waste hauling franchise agreement that authorizes Athens to
provide solid waste collection and disposal services in the City. The franchise agreement grants Athens
the exclusive right to collect solid waste from residential and non-residential customers in the City. Solid
waste is defined in the franchise agreement to include food waste and paper waste, both of which are
now considered to be organic waste under AB 1826. The franchise agreement also grants Athens the
exclusive rights to collect recyclable materials from commercial and industrial customers to the extent
materials are added by the State. Recyclable materials are defined to include green waste, which is also
Date Threshold to Arrange for Organic Waste Recycling Services Current Businesses
Affected in Azusa
April 1, 2016 Businesses that generate 8 cubic yards of organic waste per week 3
January 1, 2017 Businesses that generate 4 cubic yards of organic waste per week 4
January 1, 2019 Businesses that generate 4 cubic yards of commercial solid waste per week 311
January 1, 2020
Businesses that generate 2 cubic yards of commercial solid waste per week
(the 2 cubic yard requirement only takes effect if CalRecycle determines
that statewide disposal of organic waste in 2020 has not been reduced by
50% of 2014 levels).
606
Athens Services Proposed AB 1826 Program
April 16, 2018
Page 3
organic waste under AB 1826. In addition, the franchise agreement requires Athens to comply with the
requirements of the Integrated Waste Management Act, including diversion requirements.
Athens Services Proposed Organic Waste Recycling Program
Athens’ proposed Organic Waste Recycling Program will consist of offering organic waste recycling
services to businesses that are required to implement an organic waste recycle program under AB 1826,
and may charge businesses that utilize such services, rates approved by the City Council. Additionally,
the program will consist of Athens reporting of organic waste generators, compiling information
regarding organic waste recycling facilities, conducting public education and outreach. The program
does not require or authorize Athens to provide organic waste recycling services to single family
residential customers or other customers that are not required by AB 1826 to recycle organic waste.
To ensure the program is in compliance with AB 1826, Athens will divert the food/organic waste and
transport it to a composting facility, (instead of a landfill), and turn it into useful by-products such as soil
amendments and fertilizers. The implementation process will include delivery of all containers, training
of all staff members in English and Spanish, and posters indicating what types of materials will be
collected. The materials will be collected, taken to the Valley MRF and transferred via semi-truck to
American Organics, an Athens Facility, in Victorville for composting.
Materials accepted in Food Waste/Composting Bin include: spoiled fruits and vegetables, kitchen prep
trimmings, leftover plate scrapings, meat scraps and bones, waxed cardboard and paper, napkins, paper
towels, paper plates, paper milk cartons, tea bags, and coffee grounds/filters. Other items include
flowers, plants, wood, compostable or biodegradable ware and bathroom paper towels.
Organic Waste Recycling Service Rates
In order to implement an organic waste recycling program to meet the state mandate, the City Council
will need to authorize the collection of additional fees related to commercial organic waste recycling
services. Authorizing the collection of additional fees would provide the funding mechanism for a
business to comply with AB 1826 by obtaining organic waste recycling service through Athens. Without
the adoption of rates, Athens is unable to charge for and provide this service as it’s not currently
included in the Franchise Agreement between Athens and the City. For businesses required to obtain
organic waste recycling service, they will utilize a 64-gallon barrel provided by Athens.
Athens has already assisted a number of their client cities (Irwindale, Monterey Park, Sierra Madre,
South Pasadena and West Covina) in adopting this same program over the last year as well as currently
working with a number of their other client cities (Glendora, Montebello, San Marino and Temple City)
to implement this year.
Athens Services Proposed AB 1826 Program
April 16, 2018
Page 4
Below please find Athens’ proposed monthly organic waste recycling program rates:
*Per AB 1826, effective January 1, 2019, all commercial customers that generate 4 or more cubic yards of solid waste per week will be
required to arrange for organic waste recycling services. With this change in potential qualifying commercial customers, the total cost of
providing organics services, will be reexamined by Athens. The proposed monthly organic rates by Athens, does not assume full
participation by the required businesses. As a result, Athens will meet and confer with City Staff to determine if rates need to be adjusted
effective January 1, 2019. If an adjustment is necessary and justified, proposed Athens Organics Rates will be presented to City Council for
approval in compliance with Proposition 218.
Athens charges the same base rate for a 64-gallon barrel of organics to all its client cities. The only
exception is for those cities that included an organics program in a newly negotiated franchise
agreement or past agreements, which have since had rate adjustments. The total rate for service is
different for each City as its dependent on the franchise agreement. Businesses would be paying the
organic rate in addition to their monthly trash bill. Current trash rates in Azusa range from $131.65 to
$415.80 a month depending on the number of days of service and cubic yards (Attachment 3).
The City's franchise agreement with Athens Services permits rate adjustments due to changes in the law
after providing detailed information supporting the proposed rate adjustment at a public meeting. Staff is
recommending that the City Council consider the organic rates at its annual refuse rate adjustment
scheduled for June of 2018, so Staff can work with Athens, possibly utilizing a consultant if needed, to
ensure the proposed pricing and program is appropriate for the community and to provide enough time
to comply with Proposition 218 and continue to educate businesses on the new law.
Proposition 218 requires the City to provide certain notification of new or increased assessments,
charges and user fees, and in certain cases, requires a balloting and election of property owners prior to
implementing any new or increased assessments, charges and user fees. The City Attorney has advised
that based on the requirements of Proposition 218, all refuse rate adjustments must be approved at a
public hearing with a notice to the public 45 days in advance of the hearing.
FISCAL IMPACT:
There is no fiscal impact associated with the proposed action.
Prepared by: Reviewed and Approved:
Louie F. Lacasella Sergio Gonzalez
Senior Management Analyst City Manager
Attachments:
1) Approved AB 1826 Compliance Action Plan
2)Athens Services Proposed Rates
3)Current Rates for Residential, Multifamily and Commercial
Athens’ Proposed Monthly Organic Rates*
Pick-Up/Week 64-Gallon Barrel Franchise Fee AB 939 Fee Total Rate
1 $104.54 $11.64 $0.75 $116.91
2 $182.51 $20.28 $0.75 $203.54
3 $260.49 $28.94 $0.75 $290.18
4 $338.47 $37.61 $0.75 $376.83
5 $416.45 $46.27 $0.75 $463.47
6 $494.43 $54.94 $0.75 $550.12
AB 1826 (Mandatory Commercial Organics Recycling)
Compliance Action Plan
Action Date
The City Council shall approve an AB 1826
(Mandatory Commercial Organics Recycling)
Compliance Action Plan.
January 2018
The City and hauler shall continue to educate
businesses within the community on the new law,
particularly those businesses affected.
•Electronic: Continue to provide
information to Azusa businesses regarding
AB 1826 on the City’s website, My Waste
app, and social media.
•Print: City to include article regarding AB
1826 in the annual recycling mailer in
March. Hauler to provide brochure with
information about AB 1826 to new
businesses.
•Direct Outreach: Hauler to participate in
Azusa Chamber of Commerce meeting to
provide businesses information about AB
1826.
February 2018 to June 2018
The City Council shall approve an organic waste
recycling program that meets the requirements of AB
1826.
June 2018
City of Azusa
AB 1826
(Mandatory Commercial Organics Recycling)
Compliance Action Plan
Attachment 1
The City Council shall approve organic waste
recycling program rates to be effective July 1, 2018.
June 2018
The City and hauler shall conduct outreach to the
business community regarding the organic’s program.
• Print: City/Hauler to send letter to covered
businesses about AB 1826 requirements and
approved organic waste recycling program
rates effective July 1, 2018.
• Direct Outreach: Hauler to follow-up with
covered businesses and provide assistance in
setting up a recycling program.
• Hauler will develop a database to identify and
track the number of businesses that are subject
to the law.
• The City and/or Hauler will do targeted
follow up to businesses subject to the law
annually.
• The targeted outreach to these businesses and
multi-family complexes will be different than
the regular outreach done to all the
businesses. This follow up will include a
letter sent annually to the specific businesses
not recycling. This letter will be sent to the
business owner. A site visit to the business
location may also be done to inform them that
they are not in compliance with the law.
July 2018 to June 2019
The City and hauler shall conduct a compliance
review to report on the number of businesses that are
utilizing the program.
July 2019
From the City and hauler’s compliance review, if
program participation is less than 50 percent of
required businesses the City will look into possible
enforcement measures which could include an
ordinance with penalties for non-compliance.
Businesses that are not in compliance will be notified.
July 2020
Days/week Container 64 Gallon Barrel Franchise
Fee AB 939 Fee Total Rate
One / Week Primary Barrel $104.54 $11.62 $0.75 $116.91
Addt'l Barrels $88.63 $9.85 $0.75 $99.23
Two / Week Primary Barrel $182.51 $20.28 $0.75 $203.54
Addt'l Barrels $155.20 $17.24 $0.75 $173.19
Three / Week Primary Barrel $260.49 $28.94 $0.75 $290.18
Addt'l Barrels $221.79 $24.64 $0.75 $247.18
Four / Week Primary Barrel $338.47 $37.61 $0.75 $376.83
Addt'l Barrels $288.36 $32.04 $0.75 $321.15
Five / Week Primary Barrel $416.45 $46.27 $0.75 $463.47
Addt'l Barrels $354.95 $39.44 $0.75 $395.14
Six / Week Primary Barrel $494.43 $54.94 $0.75 $550.12
Addt'l Barrels $366.54 $40.73 $0.75 $408.02
Compactor Haul $340.50 $37.83 $7.11 $385.44
Disposal / Ton $100.00 $11.11 $0.00 $111.11
Azusa Organic Waste - Unit Cost
Attachment 2
4
FY 2017/18 Refuse Rates
Service Processing/ Service Franchise AB 939 Uncollectible Monthly Total
Disposal Fee Fee Fee Fee +CS Charge Rate
Single Family
(Trash & Green)10.70 11.20 2.43 0.75 0.90 25.98$
Multifamily Bin 9.60 9.72 2.15 0.67 0.88 23.02$
Commercial Bins
3 Cubic Yard
1 Day/Week 48.19 66.99 12.80 3.67 131.65$
2 Days/Week 96.39 75.83 19.14 7.35 198.71$
3 Days/Week 144.58 84.74 25.48 11.02 265.82$
4 Days/Week 192.77 93.50 31.80 14.68 332.75$
5 Days/Week 240.96 102.51 38.17 18.36 400.00$
6 Days/Week 289.16 169.51 50.97 22.03 531.67$
2 Cubic Yard
1 Day/Week 32.13 70.04 11.36 2.45 115.98$
2 Days/Week 64.26 83.99 16.47 4.91 169.63$
3 Days/Week 96.39 97.73 21.57 7.36 223.05$
4 Days/Week 128.51 112.51 26.78 9.81 277.61$
5 Days/Week 160.64 126.03 31.86 12.24 330.77$
1.5 Cubic Yard
1 Day/Week 24.10 53.82 8.66 1.83 88.41$
2 Days/Week 48.19 82.65 14.54 3.66 149.04$
3 Days/Week 72.29 110.72 20.34 5.49 208.84$
Saturday Service 48.19 66.99 12.80 3.67 131.65$
Locked LidBin Change Out n/a 70.61 7.85 n/a 78.46$
Ongoing Service n/a 7.79 0.87 n/a 8.66$
Temp Bins 11.13 105.95 13.01 0.84 130.93$
X-Tra Dumps Same Day 11.13 43.53 6.07 0.84 61.57$
Different Day 11.13 66.40 8.61 0.84 86.98$
Commercial Barrels 9.60 21.56 3.46 0.67 35.29$
Roll Offs w/1 ton 76.05 291.78 40.86 7.11 415.80$
Notes:
1 Uncollectible Accts Charge includes Customer Service (CS) Billing Charge of $0.75 for FY 2017/18
Attachment 3