County Of Sonoma Agenda Item Summary Report

Transcription

1 County Of Sonoma Agenda Item Summary Report Department: Transportation and Public Works 4/5 Vote Not Required Contact: Phone: Board Date: Deadline for Board Action: Susan Klassen (707) /3/2010 AGENDA SHORT TITLE: Short-term Transfer Station Operations, Transport, Disposal of Solid Waste from County of Sonoma Solid Waste Management Facilities and Re-permitting Services for the Central Landfill. REQUESTED BOARD ACTION: 1. Approve and authorize the Chair to sign the Agreement for Operation of the County Transfer Stations, Transport and Disposal between the County of Sonoma and The Ratto Group of Companies, Inc. subject to issuance of a Notice to Proceed. 2. Approve and authorize the Chair to sign the Agreement for Waste Disposal and Re-permitting Services at the Central Landfill Disposal Site between the County of Sonoma and Keller Canyon Landfill Company a Republic Services Company subject to issuance of a Notice to Proceed. EXPENDITURES: Estimated Cost $12,400,000 Amount Budgeted $12,400,000 CURRENT FISCAL YEAR FINANCIAL IMPACT ADDITIONAL FUNDS REQUIRING BOARD APPROVAL: Contingencies $0 (Fund Name:) Unanticipated Revenue $0 (Source:) Other Available $0 Appropriations Other Transfers $0 (Explain Below) (Source:) Additional Requested $0 Additional Funds Requested $0 Explanation (if required): Sufficient funds will be appropriated during consolidated budget adjustments to cover expenditures estimated to be spent in FY for the two contracts combined including re-permitting activities, see background for further discussion. Prior Board Action: June 8, 2010: the Board of Supervisors gave direction to staff to bring back two contracts: one with Ratto Group for Basic Services and requesting that staff ask the Ratto Group to work with Industrial Carting to process Construction Demolition Debris, and the other with Keller Canyon Landfill for the resumption of waste disposal and re-permitting services for the Central Landfill, as described in the RFP. May 11, 2010: the Board of Supervisors accepted the report on the results of the RFP. December 8, 2009: Board Approved and Authorized Release of the RFP for Short-term Operations, Transport and Disposal of Solid Waste, staff was directed to include two optional services in the RFP for a) limited resumption of waste disposal at the Central Landfill and b) re-permitting services related to the Central Landfill. November 3, 2009: Board gave direction to staff to return to the Board on Dec. 8 th with an RFP for Short-term Operations, Transport and Disposal of Solid Waste. Oct. 27, 2009: the Board did not approve divestiture of solid waste assets.

2 Alternatives Results of Non-Approval: All existing contracts for transfer station operations, transport and out-of-county disposal services expire on August 31, Background: The Integrated Waste Division of the Transportation and Public Works Department is responsible for operating five transfer stations in Sonoma County. The four transfer stations located in Annapolis, Guerneville, Healdsburg and Sonoma are operated by West Sonoma County Disposal (WSCD) through an agreement which the Board approved in The transfer station located at the Central Disposal Site (CDS) is operated by county staff. All solid waste received at the five transfer stations, which is not re-used or recycled, is currently transported out-ofcounty for disposal at several different landfills in the Bay Area through agreements with WSCD, USA Waste of California, Inc., Redwood Landfill, Inc. (USA Waste), and Keller Canyon Landfill Company (Republic). These transport and disposal agreements were established through a competitive process which was initiated by a Request for Proposals (RFP) authorized by the Board on October 12, All four of the agreements now in place for transfer station operation, transport and disposal of solid waste from the County disposal sites expire on August 31, With the Board s decision on October 27, 2009, not to go forward with the divestiture of the county s solid waste assets, it is now critical to establish extended or new contracts that are effective by September 1, 2010, that will bridge the gap until a long-term solution can be identified which meets the community s needs. On November 3, 2009, the Board of Supervisors directed staff to develop a Request for Proposals (RFP) for the continuation of these services rather than try to negotiate extension options with existing contractors. The Board directed staff return to the Board on December 8, 2009 for RFP approval and to include a discussion of optional services related to preserving the existing capacity at the Central Landfill in order to provide time for long-term options to be explored. With regard to long-term options, the Board directed staff to bring back recommendations related to establishing a process to engage the County, Cities and community and build consensus on a solution to the County long-term solid waste management needs. On December 8, 2009, the Board approved and authorized the release of the Request for Proposals (RFP) for Short- Term Transfer Station Operations, Transport and Disposal Services and directed staff to include two optional services in the RFP for (a) Central Landfill limited disposal resumption operations (up to 558,206 cubic yards total), and (b) repermitting services related to the Central Landfill (up to 9 million cubic yards). Additionally, staff was directed to take actions needed to create and provide staff support to a Special Task Force of County and City elected officials to develop a consensus on a long-term solution for solid waste management. On December 11, 2009, the RFP was issued. The services requested by the RFP are summarized below: 1. Scope of Basic Services: The RFP requested proposals for one Contractor to provide services for operation of the four County Transfer Stations located in Annapolis, Guerneville, Healdsburg and Sonoma, transport of all waste delivered to the four Transfer Stations and the Central Transfer Station to out-of-county disposal site(s), transport of segregated loads of green and wood waste for all five sites to the Compost facility and out-ofcounty landfill disposal services for all transported solid waste (collectively referred to herein as the Basic Services ). The proposed scope of work did not include services for operation of the Central Transfer Station or the cashier operations at the four Transfer Stations which will continue to be provided by County employees. 2. Term: Initial term, commencing September 1, 2010, is two years with two one-year options to extend at the sole discretion of the County. 3. Waste Commitment: The RFP stated that the County is committing all non-recyclable solid waste received at the five County sites to be disposed of at the out-of-county landfill disposal site(s) provided by the selected Contractor. The RFP stated that put-or-pay provisions will not be considered by the County. This means that there will be no change in the unit cost per ton paid to the Contractor if tonnage coming into the County system declines for any reason. 4. Compensation: Proposers were to provide one bid price in dollars per ton which shall serve as compensation for all the Basic Services as described above, with the exception that the selected contractor will be paid separately to transport green and wood waste to the Compost Facility at the Central Landfill at the rate of $9.35/ton which is consistent with the rate now paid for this service by the Sonoma County Waste Management Agency. The compensation for the Basic Services will be adjusted each contract year by a formula which is based upon changes in CPI, Fuel Index and Government Fees if they apply, with the exception of the Fuel Index which will be adjusted one additional time each year at the mid-point of the

3 contract year. 5. Security: Proposers were required to submit a $500,000 bid bond to secure their proposal. Proposers were required to provide a $5,000,000 performance bond to secure their performance under the contract. Proposers who do not own the landfill that is proposed for disposal were required to provide a subcontract with the owner of the landfill which secures the capacity for the County, the form of subcontract was included in the RFP. Proposers were also required to provide a guaranty to the County from a parent company or other entity or individual, in a form that is acceptable to the County. The following optional services were included in the RFP to allow the Board the flexibility to decide in the near future whether the Board, and interested stakeholders desire to re-permit and resume full-scale disposal operations at the Central Landfill (approximately 9 million cubic yards of disposal capacity). 1. Resumption of Central Landfill Disposal Services: Option 1 in the RFP required Proposers submitting proposals for the Basic Services to submit a per ton price for provision of labor, supplies and equipment for limited disposal operations (up to 558,206 cubic yards total) at the Central Landfill. 2. Re-Permitting Services for the Central Landfill for Long-term Disposal: Option 2 in the RFP required the selected proposer to prepare and submit all necessary documentation to obtain all necessary authorizations, consents, licenses, permits, variances, certificates, and approvals, including permits from the Regional Water Quality Control Board and the LEA, to allow build-out of the Central Landfill and resumption of landfill disposal operations and liner construction with a capacity of approximately 9 million cubic yards of total airspace ( Disposal Resumption Permits ). It is anticipated that the efforts to obtain the Disposal Resumption Permits will include submittal of a Joint Technical Document ( JTD ) application for revised Waste Discharge Requirements of the RWQCB (the Waste Discharge Requirements ), required updates to the solid waste permit for the Central Landfill and any required update to the Notice of Intent (NOI) and General Permit for the Central Landfill for storm water management. The selected Proposer would be required to submit and file the JTD and all of the foregoing applications and requests, and all documentation required to be filed in connection therewith within 6 months after the Board issues a notice to proceed. The Board of Supervisors has the authority to enter into agreement(s) for these services pursuant to the California Integrated Waste Management Act (Public Resources Section et seq.) including without limitation Sections and of the Act. Public Resources Code Section allows jurisdictions to determine all aspects of solid waste handling, including how the services are to be provided. Though it was the intent to award the services to the lowest responsible bidder for the Basic Services, the RFP clearly reserved the Board of Supervisors the right to award the contract or contracts to the proposer(s) who provided the proposal which is deemed to be in the best interest of the County. On May 11, 2010, staff presented the Board with a Report to the Board summarizing the proposals received and staff evaluation of the proposals. Proposals were received from Potrero Hills Landfill/Waste Connections, The Ratto Group of Companies, the Keller Canyon Landfill Company/Republic Services and Waste Management, Inc. Upon accepting the report, the Board asked staff to provide additional analysis on the impacts of each proposal on diversion, Green House Gas Emissions (GHG), and local jobs. On June 8, 2010, staff presented the results of the additional analysis requested by the Board and made a staff recommendation for award of the contract. At this meeting the Board directed staff to develop two contracts to bring back to the Board for execution. One contract with The Ratto Group of Companies for the Basic Services, and the other contract with Republic Services to provide services for the limited resumption of waste disposal at the Central Landfill and re-permitting of the Central Landfill. As this separation of the services was not anticipated by the original RFP staff had to negotiate prices and terms with the two service providers. At this meeting the Board also gave direction to staff to include in the Agreement for the Basic Services that the Ratto Group of Companies must provide segregation of Construction and Demolition Debris (C & D) loads that are received at the transfer stations and that staff ask The Ratto Group to provide for processing of that C & D material at a permitted local processing facility working with Industrial Carting. Summarized below are the terms of the two Agreements that staff has negotiated. These agreements have been

4 reviewed and approved by County Counsel and executed by the parties. Proposed Agreement with The Ratto Group of Companies, Inc. for Operation of the County Transfer Stations, Transport and Disposal 1. Scope of Services: The Ratto Group of Companies, Inc. (RGC), upon issuance of a Notice to Proceed by the Board of Supervisors, shall provide services for operation of the four County Transfer Stations located in Annapolis, Guerneville, Healdsburg and Sonoma, transport of all waste delivered to the four Transfer Stations and the Central Transfer Station to out-of-county disposal site(s), transport of segregated loads of green and wood waste for all five sites to the Compost facility and out-of-county landfill disposal services at the Hay Road Landfill owned by Recology for all transported solid waste (collectively referred to herein as the Basic Services ). Additionally, should the Board of Supervisors issue a Notice to Proceed to Keller Canyon Landfill Company for the limited resumption of waste disposal services at the Central Landfill the RGC shall transport the material identified for disposal at the Central Landfill from the five transfer stations to the Central Landfill. Such material is primarily expected to be transported from the Central Transfer Station, but may be transported from other sites if necessary. 2. Term: Initial term, commencing September 1, 2010, is two years with two one-year options to extend at the sole discretion of the County. 3. Waste Commitment: The County is committing all non-recyclable solid waste received at the five County sites to be disposed of at the out-of-county landfill disposal site provided by RGC, subject to the Notice to Proceed with limited waste resumption at the Central Landfill. No put-or-pay provisions are included in this Agreement. 4. Compensation: Transfer Station Operations, Transport and Out-of-County Disposal at Hay Road Landfill Green and Wood Waste Transport from Transfer Station to the Compost Facility at the Central Disposal Site (CDS) Ratto Group of Companies Transfer Station Operation and Transport Fee $ /ton Basic Services If there is Limited Resumption of Waste Disposal at the Central Landfill $16.70 $16.70 Fuel Component of Transport $ /ton $5.76 $5.76 Disposal Fee $ /ton $16.31 $18.81 Government Component of Disposal Fee $ /ton $6.69 $6.69 Total $ /ton $45.46/ton $47.96/ton Transport Fee $ /ton $6.94 Fuel Component of Transport $ /ton $2.41 Total $ /ton $9.35/ton Limited Resumption of Disposal at CDS Disposal (Does not include Disposal Operations at CDS) Transfer Station Operation with Transport to CDS $ /ton Fuel Component of Transport to CDS $ /ton Total $ /ton $11.00 $4.04 $15.04/ton Compensation will be adjusted each contract year by a formula which is based upon changes in CPI, Fuel

5 Index and Government Fees if they apply, with the exception of the Fuel Index which will be adjusted one additional time each year at the mid-point of the contract year. 5. Security: RGC is required to provide a $3,000,000 performance bond to secure their performance under the contract. The performance bond has been provided and is on file with the Clerk. RGC is required to provide a subcontract with the Hay Road Landfill owned by Recology which secures the capacity for the County. The subcontract has been executed by Recology and is on file with the Clerk. RGC is also required to provide a guaranty to the County from a parent company or other entity or individual, in a form that is acceptable to the County. RGC has provided an executed Guaranty from North Bay Corporation. 6. Indemnity and Waiver of Liability: The Agreement includes language obligating RGC to indemnify and defend the County against any litigation associated with the alleged breach of exclusivity provisions in their disposal contract with Waste Connections for use of the Potrero Hills Landfill. The Agreement also contains language which makes it clear that the rates in the Agreement will not be increased due to any direct or indirect impact from either the exclusive contract issue or pending Solano County Measure E litigation. 7. Construction and Demolition Debris (C&D): At the June 8, 2010, Board meeting, the Board requested that staff ask RGC to work with Industrial Carting to use their Global Materials Facility to process any C&D segregated at the Transfer Stations. At the time the Board was not aware of two pieces of information: 1) That Industrial Carting Facility was not the sole permitted C&D processor in the County with capacity to handle the C&D from the Transfers Stations, there is also M&M in Windsor, and 2) RGC s application to permit their own C&D processing facility at their Petaluma Blvd. facility. It is staff s understanding from the Board s discussion at the June 8, 2010 meeting that it was the goal of the Board to divert C&D from landfill disposal to increase countywide diversion, and to create and/or retain jobs in Sonoma County by requiring the processing of the material at a facility in Sonoma County. During Staff negotiations with RGC they requested that the language of the contract be flexibly written to allow them to use either of the two local processors (Industrial Carting or M &M) or their own facility once it is permitted. Staff believes that this is the most equitable approach. Therefore, the language included in the recommended Agreement requires RGC to segregate all source separated C&D loads at the time they arrive at a Transfer Station and transfer the material to a permitted C&D processing facility within Sonoma County for processing. Floor operators at Transfer Stations must monitor incoming loads in order to identify segregated or source separated loads and to direct such loads to the C&D stream in order to maximize diversion and ensure implementation of this provision of the Agreement. Proposed Agreement with Keller Canyon Landfill Company, for Waste Disposal and Re-permitting Services at the Central Landfill Disposal Site 1. Scope of Services: The Agreement with Keller Canyon Landfill Company a Republic Services Company (KCLC) requires KCLC to provide labor, supplies and equipment for limited disposal operations (up to 558,206 cubic yards total) at the Central Landfill upon issuance of a Notice to Proceed by the Board of Supervisors. Additionally, KCLC will prepare and submit all necessary documentation to obtain all necessary authorizations, consents, licenses, permits, variances, certificates and approvals, including permits from the Regional Water Quality Control Board and the LEA, to allow build-out of the Central Landfill and resumption of landfill disposal operations and liner construction with a capacity of approximately 9 million cubic yards of total airspace ( Disposal Resumption Permits ). Although it is recommended that the Board execute this Agreement for the resumption of waste disposal and the re-permitting of the Central Landfill, subject to a future Notice to Proceed, it is for the purpose of keeping the option to re-open the landfill on the list of potential long-term regional waste resource management solutions. No commitment of waste flow by the Cities has currently been made to re-open the Central Landfill if a permit is successfully obtained. 2. Term: Initial term, commencing September 1, 2010, is two years with two one-year options to extend at the sole discretion of the County. The initial permit documents are required to be completed within 6 months of a Notice to Proceed issued by the Board of Supervisors. 3. Waste Commitment: The County is committing to provide 145,000 tons per year to be disposed of at the Central Landfill, subject to the Notice to Proceed with limited waste resumption at the Central Landfill.

6 4. Compensation: Keller Canyon Landfill Company a Republic Services Company Limited Disposal Operations at CDS Disposal Total $ /ton $28.50/ton* Re-permitting Services Lump Sum $700,000* * Upon execution of the Contract KCLC will pay to the County a Lump Sum payment of $500,000 to be used toward the Landfill re-permitting efforts or other feasibility assessments related to developing a long-term solid waste solution. Compensation will be adjusted each contract year by a formula which is based upon changes in CPI. 5. Security: KCLC is required to provide a $2,000,000 performance bond to secure their performance under the contract. During the Board discussion at the June 8, 2010 Board of Supervisors meeting, the board discussed Republic Services being an Arizona based company. In response to this concern staff did some research and confirmed that The Keller Canyon Landfill Company is a California corporation. The entity does not have operations outside of California and pays taxes exclusively in California. Republic Services the parent company does have its corporate offices in Arizona. Financial Impact: Shown below are the total estimated first contract year costs based upon 240,000 tons being received into the County disposal system. Total cost in an out-haul scenario is approximately $11.7 million dollars and in a limited resumption of waste disposal at the Central Landfill is approximately $11.6 million dollars. Funds to cover these expenses under either scenario are included in the FY Refuse Enterprise Budget (286112). Should the Board issue a notice to proceed for the re-permitting of Central Landfill, the $700,000 in appropriations required for the project will be included in the FY Refuse budget during the Consolidated Budget Adjustments. Funding for the project is derived from the $500,000 donation from KCLC and the remainder will be from Refuse Enterprise Fund Balance. Transfer Station Operation, Transport w/ Out-Hau l by RGC to Hay Road Landfill Year 1 9/1/10-8/31/11 Base Bid Subtotal $ $11,362,445 Green and Wood Waste transport $ 9.35 $363,450 Total Year 1 Cost $11,725,895 Transfer Station Operation, Transport to CDS by RGC and Limited Resumption of Waste Disposal w/landfill CDS by KCLC Base Bid w/limited Waste CDS Subto tal Green and Wood Waste transport Transfer Station Operations,Transport and Dispo CDS Year 1 9/1/10-8/31/11 $ $4,735,134 $ 9.35 $363,450 $ $6,504,857 Total Year 1 Cost $11,603,441

7 Schedule: Should the Board execute the proposed Agreements, it is anticipated that staff will return to the Board on August 24, 2010 with a recommendation to issue a Notice to Proceed for the Agreements. Scheduling the Notice to Proceed for the August 24 th Board meeting provides the time necessary for the Sonoma County/City Solid Waste Advisory Group (SWAG) to provide input to the Board on the potential resumption of waste and re-permitting, The SWAG will meet and be asked for their input at their August 16 th meeting. Additionally, it provides time for the California Regional Water Quality Control Board to complete their review of the grading plan for the limited resumption of waste disposal at the Central Landfill and to provide their concurrence. Recommendation: 1. Approve and authorize the Chair to sign the Agreement for Operation of the County Transfer Stations, Transport and Disposal between the County of Sonoma and The Ratto Group of Companies, Inc. subject to issuance of a Notice to Proceed. 2. Approve and authorize the Chair to sign the Agreement for Waste Disposal and Re-permitting Services at the Central Landfill Disposal Site between the County of Sonoma and Keller Canyon Landfill Company a Republic Services Company subject to issuance of a Notice to Proceed. Attachments: None. On File With Clerk: 1) Proposed Agreement with The Ratto Group; 2) Proposed Agreement with Keller Canyon Landfill ; 3.) The Ratto Group Performance Bond