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HomeMy WebLinkAbout03.b. Approve restructured Household Hazardous Waste Collection services agreement with City of San RamonCentral Contra Costa Sanitary District 3.b, ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 17, 2011 subject: APPROVE AN AGREEMENT WITH THE CITY OF SAN RAMON FOR HOUSEHOLD HAZARDOUS WASTE COLLECTION SERVICES AND AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE THE AGREEMENT Submitted By: Initiating Dept. /Div.: David Wyatt, HHW Supervisor Engineering / Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Wyatt J. amoto Mills A. Farrell K. Alm James Kelly General anager ISSUE: The City of San Ramon (San Ramon) has requested that its Household Hazardous Waste (HHW) services agreement with the District be restructured. In September 2011, the Board extended the current agreement from September 26, 2011 to December 2, 2011, to provide the time needed for negotiation of the new agreement. RECOMMENDATION: Approve a restructured HHW collection services agreement with the City of San Ramon, and authorize the President of the Board of Directors and the Secretary of the District to execute the agreement. FINANCIAL IMPACTS: San Ramon requested that it pay for HHW Collection Facility services for households that are in San Ramon, but not within the boundaries of the District, on a "per car" rather than a "proportion of total households" basis. In addition, San Ramon asked to be billed monthly instead of once per year. There will be no significant financial impact due to the changes recommended. The reduction in direct payments to the District from San Ramon, approximately $45,000 annually, will be offset by reduced District expenses occasioned by the elimination of mobile events in San Ramon. ALTERNATIVES /CONSIDERATIONS: The Board could decline San Ramon's request for a restructured agreement and rely on the current agreement. This is not recommended since participation in San Ramon's newly established "Door -to -Door (DTD)" HHW collection program is averaging about 100 cars per month. This participation in the DTD program, when added to the 80 to 90 cars served at the District's HHW Collection Facility, has resulted in San Ramon's overall participation rate in HHW programs to nearly double as compared to any previous year since the District's HHW Collection Facility opened in 1997. BACKGROUND: In June 2011, District staff received a written request from San Ramon asking that the District restructure its current HHW services agreement, which allows about 5,000 San Ramon homes that receive wastewater utility service from the N: \ENVRSEC \Position Papers \Wyatt\2011 \11- 17 -11 \PP San Ramon HHW Agreement 11 -17 -11 FINAL.DOC Page 1 of 2 POSITION PAPER Board Meeting Date: November 17, 2011 Subject. APPROVE AN AGREEMENT WITH THE CITY OF SAN RAMON FOR HOUSEHOLD HAZARDOUS WASTE (HHW) COLLECTION SERVICES AND AUTHORIZE THE PRESIDENT OF THE BOARD OF DIRECTORS AND THE SECRETARY OF THE DISTRICT TO EXECUTE THE AGREEMENT Dublin San Ramon Services District (DSRSD) to use the District's HHW Collection Facility on a "proportion of total households" basis. San Ramon wishes to reduce its costs by revising the method the District uses to calculate its HHW service charges. Reducing these charges would help San Ramon pay for its new DTD HHW collection program and increase the overall participation rate for San Ramon residents in HHW collection programs. The restructured agreement would be retroactive to the beginning of the current fiscal year (July 1, 2011), would automatically renew each year, and would provide for San Ramon to be billed monthly for two component charges for use of the HHW Collection Facility by households that are in San Ramon, but not within the boundaries of the District (that is those San Ramon households that have wastewater utility service provided by DSRSD). The first of these components would be calculated on a "per car" basis for visits to the facility. The second component would be a "capital charge" for availability of the facility calculated to amortize the District's capital investments in the facility over 30 years on a "proportion of total households" basis. The proposed agreement would require San Ramon to report its DTD Program participation and waste volumes to the District, and would stipulate that both parties intend that the method for calculation of charges revert to those in the original 1997 agreement if San Ramon's DTD program ceases operation. Staff met with representatives of our other HHWCF partners, the cities of Clayton and Concord, and the Mt. View Sanitary District to discuss San Ramon's request. All of the partners support the proposal. The Board HHW Committee discussed the proposed restructured agreement at its September 13, 2011 meeting and recommends that the Board approve the staff recommendation. RECOMMENDED BOARD ACTION: Approve the proposed HHW collection services agreement with the City of San Ramon, and authorize the President of the Board of Directors and the Secretary of the District to execute the agreement. N: \ENVRSEC \Position Papers \Wyatt\2011 \11- 17 -11 \PP San Ramon HHW Agreement 11 -17 -11 FINAL.DOC Page 2 of 2