City Council Regular


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  Item # 16.       
Meeting Date: 10/26/2020  
FROM: Douglas Dancs

SUBJECT
Consider a Proposal from Valley Vista Services for an Extension of Solid Waste Franchise and Improvements to the Public Works Yard
RECOMMENDATION
Consider a proposal from Valley Vista Services for an extension of Solid Waste Franchise and improvements to the Public Works Yard.
SUMMARY
Valley Vista Services (VVS) has proposed an extension of its Solid Waste Franchise and the construction of a compressed natural gas (CNG) fueling station and a truck-to-truck solid waste transfer facility at the Public Works Yard. Under its proposal, VVS's franchise term would end 15 years after the completion of the improvements (extending it from 10 years to approximately 20 years) and VVS would pay for all improvements at the Yard, and make annual payments to the City of at least $110,000.
DISCUSSION
In 2014, after a competitive selection process involving eight prospective waste haulers, the City Council awarded a 10-year solid waste franchise to VVS. In 2017, the City Council and VVS agreed to several changes to the franchise and extended the term to June 30, 2027.

As detailed in the attached letter, VVS is proposing a joint venture with the City that would:
  1. Extend the franchise by 15 years from the completion of the improvements at the Yard
  2. Construct a 150-ton per day direct-tip transfer facility at the Yard
  3. Construct a CNG fueling station at the Yard
VVS proposes to pay for all permitting, design and construction costs, maintain the CNG fueling station, and pay the City annual lease and host fees of $110,000. VVS also states the cost containment and fuel price stability arising from its proposal will maintain Cypress' low refuse rates for as long as possible.

Direct-Tip Transfer Facility
VVS currently transports the solid waste it collects from Cypress residents and businesses from the trash truck in which the waste is collected directly to the landfill or recycling center. This requires approximately 14 trash truck round trips to the landfill or recycling center each weekday. Sixty percent of trips are to the landfill in Brea and 40 percent are to the recycling center in Industry.

VVS proposes to install a direct-tip transfer facility at the Yard to eliminate daily trash truck trips to the landfill and recycling center. The direct-tip transfer facility would allow trash trucks to dump waste at the Yard which would then be hauled to the appropriate facility. VVS estimates seven 53-foot long trailers would be hauled to/from the Yard each weekday. VVS believes this approach would reduce wear and tear on its trash truck fleet and City streets.

The Yard has a facility in which street sweeping debris is dumped (which VVS hauls away) that can be converted into VVS's proposed direct-tip transfer facility. Public Works estimates the conversion would cost $300,000 - $600,000 and require nine to 12 months to design and construct.

The direct-tip transfer facility would require environmental review and permits from a variety of regulatory agencies including CalRecycle, Orange County Health Department, Air Quality Management District, California Regional Quality Water Board, and Orange County Waste and Recycling.

CNG Fueling Station
VVS’s trash trucks are fueled by CNG it purchases in Buena Park from the same facility the City and Cypress School District (CSD) use. The fuel station is a 10-mile round trip from Cypress. VVS and City vehicles visit the fuel station (at least) once a day and typically need an hour to travel to and from Buena Park, wait in line and refuel.

VVS proposes to install a fast-fill CNG fueling station at the Yard. Fast-fill CNG stations fuel vehicles at roughly the same rate as a gasoline station and would reduce the time and cost to refuel VVS, City and CSD vehicles. The CNG fueling station would replace the decommissioned gasoline fuel station in the Yard’s front parking lot. Public Works estimates a CNG fueling station would cost $1 million - $1.5 million and take 9 to 12 months to design and construct.

A CNG fueling station at the Yard could save the City up to $40,000 annually and CSD reports it could save at least $5,000 a year. A CNG fuel station could also generate income from private party sales and environmental credits.

Options for a Response to VVS
VVS reports it would like to move forward with its proposal immediately. While it appears there are clear efficiency and financial benefits to VVS and the City, the proposal requires clarification and negotiation as well as CEQA analysis.

The City Council has a variety of options for responding to VVS, including:
  1. Approve the proposal in concept and establish a City Council ad-hoc subcommittee to negotiate a franchise extension including facility improvements for City Council consideration. A motion to create the subcommittee should include appointing two Council Members to the subcommittee and establishing a due date for the subcommittee’s work.
  2. Approve the proposal in concept and direct the City Manager to negotiate a franchise extension including facility improvements for City Council consideration and establish a due date for a report to the City Council.
  3. Establish a City Council ad-hoc subcommittee to work with the City Manager and VVS to analyze the proposal and report findings to the City Council. A motion to create the subcommittee should include appointing two Council Members to the subcommittee and establishing a due date for the subcommittee’s work.
  4. Decline the extension proposal.
BUDGET IMPACT
None.
LEGAL REVIEW
None required.
  
APPROVED BY: Peter Grant, City Manager
Attachments
VVS Letters
Public Works Yard Aerial Photograph


    

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