Title.Title
Recommendation to Enter into an Agreement Between the City of Alameda and Waste Management of Alameda County Inc. for Solid Waste Transfer and Disposal Services for a Ten-Year Period (Ending June 30, 2027); and
Adoption of Resolution Setting Per Ton Rates for Solid Waste Transfer and Disposal Services with Waste Management of Alameda County, Inc. (Public Works 274)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to enter into an Agreement Between the City of Alameda and Waste Management of Alameda County Inc. for Solid Waste Transfer and Disposal Services for a Ten-Year Period (ending June 30, 2027); and Adoption of a Resolution Setting Per Ton Rates for Solid Waste Transfer and Disposal Services
BACKGROUND
In 2002, the City Council entered into an agreement between the City of Alameda (City) and Waste Management of Alameda County Inc. (WMAC) for transfer and disposal services of municipal solid waste (MSW). The agreement was for ten years with one, five-year extension. In 2012, the City extended the agreement with WMAC to September 30, 2017.
In 2016, the City began working with Hilton Farnkoph & Hobson (HF&H) consultants to secure a new MSW transfer and disposal agreement. The City issued a request for statements of interest (RSOI) from companies interested in providing MSW transfer and disposal services for a minimum of 10 years with up to one, five-year extension (for a maximum duration of 15 years).
The City received responses to the RSOI from WMAC and Alameda County Industries (ACI). Between November 2016 and April 2017, the City and HF&H sought clarification from both proposers to ensure their ability to process the City’s MSW and provide additional processing to help the City meet its zero waste goals.
While the City was pleased with ACI’s response, ACI ultimately withdrew from the RSOI due to delays in gaining regulatory permits required for transfer and disposal of Alameda’s MSW.
DISCUSSION
WMAC’s proposal included transfer at the existing, permitted Davis Street transfer station and disposal at the existing, permitted Altamont Landfill.
Through the negotiation process, the City and HF&H negotiated a favorable agreement with WMAC that features a lower per-ton rate of $89.65 (versus the current per-ton rate of $92.91), which saves the City’s ratepayers approximately $90,000 annually (or $900,000 over the initial 10-year term of the agreement). Rates will be adjusted via an annual rate application process by Consumer Price Index or 5%, whichever is less. The government component will be adjusted upward or downward to reflect the actual changes in government fees.
The agreement with WMAC has other benefits. It provides more opportunities for mixed waste materials processing, which may help the City achieve its ambitious zero waste goals, and WMAC’s transfer vehicles are powered by compressed natural gas (CNG) providing Alameda additional environmental benefits.
As with the previous WMAC agreement, the proposed agreement includes an option to extend for another 5 years after the 10 year term is complete. This option is exercised at the City’s sole discretion.
FINANCIAL IMPACT
Under both the existing and proposed agreements, the General Fund (Fund 001) has and will receive a franchise fee. Due to the lower per-ton rate in the proposed agreement, the General Fund is estimated to receive $9,000 less in franchise fees.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not impact the Municipal Code.
ENVIRONMENTAL REVIEW
This project is statutorily exempt under California Environmental Quality Act Guidelines Section 15273 (a)(1) Rates, Tolls, Fares and Charges - meeting of operating expenses.
RECOMMENDATION
Enter into an agreement between the City of Alameda and Waste Management of Alameda County Inc. for solid waste transfer and disposal services for a ten-year period (ending June 30, 2027); and
Adopt a resolution setting per ton rates for solid waste transfer and disposal services.
Respectfully submitted,
Liam Garland, Acting Public Works Director
By,
Liz Acord, Acting Public Works Coordinator
Financial Impact section reviewed by,
Elena Adair, Finance Director
Exhibit:
1. Contract