CITY COUNCIL AGENDA ITEM NO.
Meeting Date: March 13, 2001
Subject/Title: Approve New Solid Waste Disposal/Processing Proposal from Allied Waste Systems
Submitted by: Jon Carlson/Thom Head – Public Works Department
Approved by: Jon Elam, City Manager
Approve the new solid waste disposal/processing pricing proposed by Allied Waste Systems, operator of the Keller Canyon Landfill in Pittsburg.
Funds for disposal and processing of waste materials were included in the 2000-2001 financial plan approved by the City Council.
In 1998, when the City of Brentwood opened up its own transfer station, it received unsolicited pricing proposals for the trucking, processing and disposal of its residential and commercial refuse, recycling and yard waste materials. The two companies providing the best pricing were BFI, then operator of the Vasco Road Landfill in Alameda County and Allied Waste Systems, the new operator of Keller Canyon Landfill in Pittsburg. The pricing offered by these two companies were the most competitive due to their proximity to Brentwood and their ability to process yard waste at their own site.
After discussions with both companies, we chose the Vasco Road Landfill, agreeing to a two-year, non-binding pricing arraignment. Their overall prices were better, despite having a $4.53 per ton “out-of-county” tax burden. The tax initiated and was supposed to be removed by 2001, when their pricing structure was to be renegotiated with the City.
In early 2001, based on negotiations City staff had with officials from Vasco Road, which was now owned by Republic Enterprises, we anticipate Vasco an increase in their rates consistent with the Bay Area Consumer Price Index (CPI) over the next several years. Instead, we received a proposal with pricing significantly higher than the CPI index. In addition, the “out-of-county” tax was still in effect and was not going to be removed. In fact, Alameda’s overall tax burden, which includes state, county and local taxes for solid waste programs, such as household hazardous waste drop-offs, was being increased to a total of $16 per ton. These taxes promote programs for Alameda County residents, but do not directly benefit residents of Brentwood. As a result, Vasco Road was forced to significantly increase their pricing to offset their large tax burden.
When Republic was unable to keep their rate increase (SEE ATTACHMENT “A”) within CIP increases for the next few years, staff decided to employ the competitive process by soliciting Allied Waste Systems to provide a similar pricing proposal (SEE ATTACHMENT “B”) for a comparison. Allied currently operates two landfills locally (Keller Canyon in Pittsburg and Forward in Stockton) and they already have the rolling stock and maintenance facilities (5 local operations) to support the City’s transfer component of their operation for these reasons and because of a minimal tax burden compared to Vasco Road, they were able to offer a more favorable pricing structure in the coming years.
The City of Brentwood, since assuming Solid Waste operations in 1993, has never had a rate increase. Prior to these pricing proposals, the City anticipated it would need a rate increase sometime in the next year or two. Our new pricing structure affords the City the ability adequately fund future equipment and facility needs in the division and most importantly, defer the need for the City to look at a rate increase in Solid Waste fees for years to come.
When compared to Vasco Road’s pricing, Allied’s rates reduce the City’s disposal costs in the first year by $233,227. Allied’s proposal saves the City $2.7 million when extrapolated out over seven years, and adjusting for CPI increases and tonnage increases (SEE ATTACHMENT “C”). In addition, all taxes and fees paid will remain in the County to help support Contra Costa County programs that help benefit local residents.
Allied has also agreed to provide recycling and waste reduction education programs for Brentwood schools as part of their Community Outreach Programs.
Allied can also provide the City with a $10 million general liability insurance certificate and indemnify the City from any litigation surrounding disposal of our waste at Keller Canyon Landfill.
Attachments A, B, and C
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING THE SOLID WASTE DISPOSAL/PROCESSING PROPOSAL FROM ALLIED WASTE SYSTEMS
WHEREAS, The City of Brentwood strives to maintain the lowest solid waste rates for its residents; and
WHEREAS, staff solicited two pricing proposal from the two closest landfills for trucking, processing and disposal of its solid waste; and
WHEREAS, the most cost effective rate proposal came from Allied Waste Systems, operator of the Keller Canyon landfill in Pittsburg; and
NOW, THEREFORE BE IT RESOLVED that the Solid Waste Division utilize the services outlined in Allied Waste Systems’ proposal.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held March 13, 2001 by the following vote: