13 - CR&R Environmental Service 2nd Amendment Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors From: Scott Carroll, General Manager Date: January 23, 2014 Subject: CR&R Environmental Services 2 nd Amendment to Exclusive Franchise Agreement – Recommendations from Performance Audit and Organic s Recycling Program Summary On November 21, 2013, staff presented to the Board the 2 nd Amendment to the exclusive franchise agreement with CR&R Environmental Services, which is a culmination of recommended changes from a recent performance audit conducted by Michael Balliet Consulting, and the implementation of an organics recycling program that will achieve 75% dive rsion by 2015. Attachment “A” is a copy of the November 21 st staff report. The Board delayed taking action on the 2 nd Amendment and directed staff to conduct an environmental review on the proposed Organics Recycling Program. The Board also directed staff to organize town hall meetings with the public to discuss the proposed implementation of the Organics Recycling Program. This report is about the town hall meetings. Staff Recommendation That the Board of Directors considers one of the following: 1. A pproves the 2 nd Amendment to the exclusive franchise agreement with CR&R Environmental Services; or 2. Direct staff to organize additional Town H all meetings and report back to the Board on February 27, 2014 . ITEM NO. 13
Board of Directors January 23, 2014 Page 2 of 3 Analysis Staff scheduled two town hall meetings at the City’s Neighborhoo d Community Center to discuss the proposed implementation of the Organics Recycling Program. The two meetings were as follows: Tuesday, December 17, 2013 at 5:30 PM Saturday, January 11, 2014 at 9:00 AM Staff conducted extensive community outreach about the upcoming meetings that included mailing 4”x 4” postcards to every residential household, automated phone call ing approximately 13,836 households , announcements in newspapers (The Daily Pilot and OC Reg ister), local blogs and the District website. A s a result of the outreach, each meeting had over 60 people in attendance, which is well above staff’s expectations. Residents that attended the meetings received two power point presentations. One from CR&R about their new anaerobic digestion system and the other presentation was from staff on how the proposed program will work. Many questions and/or concerns were raised by the public at both meetings. The following is a list of those concerns: O dors and use of biodegradable bags to control odors Costs to ratepayers Physically handling the food waste Additional trash cans in the street especially for multi -family units serviced by CMSD. Increasing the number of trucks on City streets (only one tru ck will be added to the fleet). The Organics Recycling Program is already a done deal. Tiered rates for residents that opt out of the program. Wear and tear on streets Limited space to store a third trash can. In addition, staff received approximately nin e emails from residents expressing their support or opposition of the program (see Attachment “B”). Based on the interest CMSD residents have on the Organics Recycling Program, the Board may want to consider organizing additional town hall meetings at dif ferent locations in the community such as Mesa Verde Library or Balearic Community Center. If the Board believes there was enough public outreach then the 2 nd Amendment is ready for your approval (see Attachment “C”). If the Board approves the 2 nd Amend ment, staff and CR&R plan on holding three more public workshops about the Organics Recycling
Board of Directors January 23, 2014 Page 3 of 3 Program. Implementation of the program is not expected to begin until November 2014 or it can begin in January 2015 if the Board desires. If you approve the amendment tonight, staff will return with an ordinance to amend the District’s Operations Code, Chapter 7.01 - Trash Regulations and Chapter 8.01 – Recycling. Specifically, the code needs to define green waste and food scraps and how organics are now bein g separated from the waste stream. Strategic Plan Element & Goal This item complies wit h Strategic Element 2 .0, Solid Waste and Strategic Goal No. 2 .4, Develop strategies for Zero Waste and Strategic Goal No 2.5, Monitor advancement and technology in the s olid waste industry. Legal Review District Counsel has reviewed and approved the 2 nd Amendment. Environmental Review The environmental review was performed as a separate item and considered by the Board before considering this item. Financial Review The initial cost to implement a District wide organics recycling program is $504,679 a year, which includes AD disposal costs, the cost to purchase additional organic carts , kitchen pails and community outreach . After the first year of implementation, the additional annual cost is expected to be $494,679 . When to raise rates and by how much will be determined on an annual basis, but it is feasible rates will not be raised for at least five years. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2014 Bo ard of Directors regular meeting at District headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff. Attachment s A: November 21, 2013 Staff Report B: Emails from residents C: CR&R Environmental Services 2 nd Amendment to Exclusive Franchise Agreement