Comprehensive Solid Waste Plan and Contract Recommendations. Pre-Council Meeting January 8, 2013
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1 Comprehensive Solid Waste Plan and Contract Recommendations Pre-Council Meeting January 8, 2013
2 Purpose Overview of the current solid waste system Outline the steps to develop and implement a Comprehensive Solid Waste Management Plan Recommend a timeline and process for the procurement of current solid waste contracts 2
3 Current System Residential Collections Disposal and Processing Education and Outreach Call Center and Billing Citizen Drop Off Centers Illegal Dumping Abatement Litter Abatement Teams Solid Waste Enforcement Street Waste Can Collections 3
4 Recent Accomplishments Combined departments of Code Compliance, Public Health and Solid Waste Services from Environmental Management: Multi-family recycling to start on/before January 2014 New municipal solid waste and recycling contract for City facilities Recycle Bank and collaborative public education Fire Station single stream recycling Storm debris fiscal and response policy Initial research for a Comprehensive Solid Waste Management Plan: Material Recovery Facility (MRF) Request for Information (RFI) Service quality, level and financial analysis of all contracts and contractors Best practices review Customer service survey 4
5 Distribution of Collection Responsibilities Drives the Need for a Comprehensive Solid Waste Management Plan Managed by City 33% Serviced by Private Sector 67% 5
6 Comprehensive Solid Waste Management Plan Move from residential to global/all waste focus Leverage emerging and sustainable technologies Develop and implement strategies to foster market driven collection and diversion programs Foster collaborative public/private partnerships Develop capital funding plan for new technologies and future infrastructure 6
7 Early and Well-Defined Stakeholder Input Keeps Plan on Track 7
8 Proven Planning Process Leads to a Sound and Implementable Plan 8
9 Review and Evaluation of Key Solid Waste and Recycling Contracts Existing residential contracts approved in 2003, each with four, ten-year renewable terms Contracts set to expire on March 31, 2013 Long-term contracts intended to provide continuity of service focus Similar to other Texas cities: Arlington (56 years), Grand Prairie (44 Years), Lewisville (25 Years), Haltom City (15 Years) Approach successful based on results from multiple cities Renewal terms allow the City to look at: Service Delivery Customer Service Cost of Services System Adjustments 9
10 City Staff and SAIC Collaboration Yielded Key Recommendations Contract and Service Provider Collection Waste Management Recycling Processing (MRF) Waste Management Citizen Drop Off Stations Republic C&D Waste IESI Cart Toter Recommendations Renew for 10 years, at a reduced rate of $11.82 per month and WM to forego FY 2013 annual price increase, projected to save $19.4 million over 10 years Renew for 5 years under the current financial terms, should result in continued positive financial impact Renew for 5 years under the current financial terms Renew contract for 10 years Renegotiate to achieve a reduced cost and extend contract for 10 years 10
11 Monthly per Household Cost Savings and Cost Avoidance Based on City Staff Contract Negotiations 2013 Contract Rate without City Negotiation Contract Negotiation Results $12.44 No CPI Increase for 2012 ($0.31) Negotiated Decrease ($0.31) Proposed Rate $11.82 Cost avoidance Cost decrease The City was able to avoid the annual 2012 CPI cost adjustment and negotiate a lower cost from WM to result in a $0.62 monthly savings per household compared to what the 2013 contract rate would be without City negotiations. The reduced rate will save the City approximately $19 million over 10 years. 11
12 Extension of Collection Services: Waste Management Decrease in the performance bonding requirement from one (1) year to six (6) months Provision of 125 Big Belly solar trash compactors ($600,000 or $0.05 monthly per household value) Extension of RecycleBank program for 1 additional year at a reduced rate of $0.37 monthly per household Conversion of fleet from diesel to compressed natural gas vehicles within first three (3) years Procure a new maintenance facility in Fort Worth 12
13 Recycle Processing (MRF): Waste Management Extend Recycle Processing Contract for five (5) years under current rebate formula Recycle Processing Contract extension would continue to result in positive financial impact Extending the contract provides time to competitively bid, award and then develop a new modern MRF in Fort Worth 13
14 Citizen Drop Off Station: Republic Waste Services Extend 5 years instead of 10 at current rates Positive financial impact Opportunity to add additional services and processes at facilities 14
15 Issues and Strategies Regarding Contracts and Solid Waste Planning Issues Solid waste industry is dynamic and undergoing technology changes Changes to the existing residential system should ideally occur over time Strategies Stagger collection and recycling processing (MRF) contracts Initiate MRF procurement in 2013 in order to start operating new facility by 2018 Allows for continuity of collection services, which will be reevaluated in 2018 to align with new MRF operations and capabilities Develop comprehensive solid waste management plan concurrent to MRF procurement in order to evaluate options 15
16 Recommended Schedule 16
17 Next Steps Hold two public hearings and a community meeting, and implement other public engagement tasks to solicit feedback on the development of the solid waste plan and staggered extensions of existing contracts: January 15, 2013, Public hearing at City Council January 24, 2013, Community meeting Hazel Harvey Peace January 29, 2013, Public hearing and vote at City Council 17
18 Questions?
19 City Staff and SAIC Collaboration Yielded Key Recommendations Contract and Service Provider Collection Waste Management Recycling Processing (MRF) Waste Management Citizen Drop Off Stations Republic C&D Waste IESI Cart Toter Recommendations Renew for 10 years, at a reduced rate of $11.82 per month and WM to forego FY 2013 annual price increase, projected to save $19.4 million over 10 years Renew for 5 years under the current financial terms, should result in continued positive financial impact Renew for 5 years under the current financial terms Renew contract for 10 years Renegotiate to achieve a reduced cost and extend contract for 10 years 19
20 2013 Budget Trend 20
21 2013 Revised Budget Trend 21
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