RPVCCA_SR_2011_05_03_10_Edco_AdHoc_CommitteeCITY OF
MEMORANDUM
RANCHO PALOS VERDES
REVIEWED:
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &CITY COUNCIL MEMBER
RAY HOLLAND,DIRECTOR OF PUBLIC WO
MAY 3,2011
ESTABLISH AN AD-HOC SUBCOMMITTEE (SOLID
WASTE)AND MAYOR'S APPOINTMENT FOR 2011
CAROLYN LEHR,CITY MANAGER~~~
Project Manager:Lauren Ramezani,Sr.Administrative Analyst i(t--
RECOMMENDATIONS
1.Establish an Ad-Hoc Subcommittee of the City Council to serve as a Solid Waste
Subcommittee for 2011 ;and
2.Mayor to appoint two City Council Members to serve on the Solid Waste
Subcommittee for 2011.
BACKGROUND
During the 2008/2009 residential contract procurement process,the City Council had a
Solid Waste Subcommittee (Subcommittee)comprised of former Mayor Clark and current
Councilmember Stern.The former Subcommittee was instrumental in assisting staff and
the City consultant secure quality residential solid waste and recycling services for the
City.The City Council selected EDCO Disposal Corporation (EDCO)in late 2009,and
EDCO's new services commenced on July 1,2010.Since the procurement process was
complete,an Ad-Hoc Solid Waste Subcommittee was not appointed for 2011.One
member of the former Subcommittee (former Mayor Clark)is no longer on the Council.
However,the second member,Councilmember Stern will continue to be on the Council
until the end of November 2011.
DISCUSSION
The City has exclusive residential solid waste and recycling agreements with EDCO and
Universal Waste Systems (UWS).Both agreements commenced on July 1,2010 and will
terminate on June 30,2017.Additionally,both haulers have an extension option of up to
36-months,at the City's sole discretion.
10-1
Solid Waste Subcommittee
May 3,2011
Page 2
Staff recommends establishing an Ad-Hoc Solid Waste Subcommittee of the City Council
comprised of two members of the City Council to help assess a recent proposal made by
EDCO.
Per their residential agreements,EDCO and UWS are eligible for an annual rate
adjustment request.Such requests are due to the City by March 30 of every year,and
both EDCO and UWS submitted their request prior to that deadline.However,EDCO
also proposed an alternative to the City in lieu of their possible rate increase of
approximately 3.7%.EDCO proposed to freeze their current FY 10-11 rates for one year,
in exchange for a three-year extension of their current contract.
Staff has retained HF&H Consultants,LLC (HF&H)to assist the City in evaluating the
proposal,and analyzing the costs savings to both RPV ratepayers and EDCO.EDCO
indicated this would result in a substantial savings to ratepayers for the next nine years
and has agreed to reimburse the City for the consultant costs estimated at $8,000-
$10,000.Staff plans to present HF&H's findings to the Solid Waste Subcommittee.
Depending on the findings and the recommendations of the Subcommittee,EDCO's
proposal will be brought to the full Council shortly after that.
Additionally,staff has contacted UWS.UWS agrees to the same proposal terms and
conditions as presented by EDCO.Furthermore,due to UWS's limited number of
customers,a separate analysis of UWS's accounts is not deemed necessary by HF&H.
NEXT STEPS:If EDCO and UWS's proposals were later approved by the Council,both
EDCO and UWS's residential agreements would have a new termination date of June 30,
2020 (instead of the current June 30,2017).There would be no other extension options
on their agreements.Furthermore,the City Attorney would then prepare amendments to
both agreements reflecting these changes.
If EDCO and UWS's proposals were later not approved by the Council,a notice of a
public hearing would be published in the local newspaper and a public hearing would be
held.The tentative public hearing date would be in June since rate adjustments are
effective July 1.Invoices would be sent out around that time.
ALTERNATIVE
The alternative is to not establish an Ad-Hoc Subcommittee.In that case,staff and
consultant will analyze the information and bring their findings back to the full Council.
FISCAL IMPACT
There is no fiscal impact associated with the establishment of the Subcommittee.
However,the review and analysis of EDCO's proposal is estimated to cost approximately
$8,000-10,000 in consultant fees,which will be reimbursed by EDCO.
W:\LAUREN\STAFFRPnREFUSE\2011\trash subcomm.doc
10-2