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Home My WebLink About20 - Residential Refuse Collection RFP - PowerpointAgenda Item No. 20 September 10, 2013 Residential Refuse Program Newport Beach City Council Tuesday, September 10, 2013 Presentation Summary Newport Beach and Outsourcing (Dave) About Our Refuse Program (Mark) About the RFP and Responses (HF &H) Service (Mark) Key Issues Raised (Dave) Conclusion /Recommendation • Police • Fire —EMS • Lifeguarding • Parks • Beaches • Medians • Streets • Facilities 3 - An Active WonCommunity • Outdoors • Recreation • Seniors • Libraries • Arts /Cultural Shining City by the Bay 250 T I50 M 50 Unfunded PERS Liability (in millions) FY 2007 FY 2011 City Retirement Payments 35 30 25 20 15 us 5 w Amounts Paid to PERS (in millions) Annual Increase FY 2000 FY 2006 FY 2014 FY 2020 2009 -10 vs. 2013 -14 833 763 i' IIN 752 2013 2014 Future City Retirement Payments 35 30 25 20 15 E 5 0 Amounts Paid to PERS (in millions) $32.7 FY 2000 FY 2006 FY 2014 FY 2020 PERS Future — Annual Payments $25,200,000 - 2014 $32,700,000 - 2020 $43,000,000 - 2030 $5 I 90009000 - 2039 Health Care 7.4% T this year 6.7% T -next year • 1'A7AVA7A = 1 154M • 151: Is it something the private sector does well? Are there enough quality vendors from which to select? What's the state of our own service? Can we avoid layoffs? Is a quality contract available? Does the City have the skills to manage it? Are there cost savings enough to weigh against the challenge of change? Outsourced Refuse Transfer & Materials Processing Quly 2008) — CR &R Alley Sweeping (September 2008) - Sunset Environmental Services. City Facilities trash collection (November 2008) -Ware Disposal. Street Sweeping (April 20 10) - Athens Services. Beach Refuse Collection (Feb 201 1) - Rainbow Disposal. Park and Beach /Street End Can Collection (Jan 2013) - Robert's Waste Newport Coast, Newport Ridge, Crystal Cove (Nov 2007) — CR &R Street Light Operations and Maintenance Qune 2013) - International Line Builders. Sewer video inspection (June 2013) - Houston and Harris PCS. Landscaping (Summer 2013) - Pinnacle Landscape Parking Meter Collection and Enforcement (Summer 20 I I) - CPS Parking Lots Management (Summer 2013) - CPS Economic Development (Winter 2009 -10) - various Al I X01 =0151:a mok OurWorkforce Supervision Transfer Station Crew Chief Refuse Workers On Workers Comp Collection staff remaining N 5 16 (2) [[1 OT and Workers Comp Overtime Unplanned Overtime Worker's Comp Number of Cases Amount of Hours Lost Claims and Claims Admin Costs 515 hours in FY 13 -14, within just five pay periods. Just 167 hours in FY 12 -13 23 in last 3 years 678 hours in last 3 years $350,000 in last 3 years Whatever the Council decides tonight, it should move to an automated system. 2012 Total Compensation - Newport Beach Refuse Division Positin Title Base and Specialty Pay, plus OT Health & Retirement, net of B% paid by EE Adjusted Total Camp Annual Leave Accrual per MOU Adjusted Total Comp +Leave A B A +B C A +B +C Refuse Worker II $ 72,853 $ 27,089 $ 99,942 $ 6,409 $ 106,351 Refuse Worker II $ 61,894 $ 25,620 $ 87,513 $ 7,280 $ 94,794 Refuse Worker II $ 74,803 $ 27,129 $ 101,932 $ 5,956 $ 107,889 Refuse Worker II $ 65,399 $ 25,658 $ 91,057 $ 6,855 $ 97,912 Refuse Worker 1 $ 56,659 $ 24,521 $ 81,180 $ 4,777 $ 85,957 Refuse Worker 1 $ 65,832 $ 26,067 $ 91,899 $ 4,796 $ 96,695 Refuse Worker II $ 65,558 $ 25,882 $ 91,440 $ 4,373 $ 95,813 Refuse Worker II $ 72,613 $ 27,019 $ 99,632 $ 5,956 $ 105,588 Refuse Worker 1 $ 58,595 $ 24,804 $ 83,400 $ 4,796 $ 88,195 Refuse Worker II $ 71,742 $ 26,911 $ 98,654 $ 6,855 $ 10.5,509 Refuse Worker II $ 71,172 $ 26,002 $ 97,174 $ 7,308 $ 104,483 Refuse Worker II $ 74,406 $ 27,166 $ 101,572 $ 6,855 $ 108,427 Refuse Worker 1 $ 64,005 $ 25,722 $ 89,727 $ 4,384 $ 94,111 Refuse Worker II $ 65,200 $ 25,519 $ 90,720 $ 3,970 $ 94,689 Refuse Worker II $ 65,431 $ 26,155 $ 92,586 $ 5,049 $ 97,635 Refuse Worker I $ 58,192 $ 24,795 $ 82,988 $ 4,796 $ 87,783 Our Equipment Our Fleet Compliant CNG Trucks Non - Compliant Diesel trucks --Aged 16+ years --Aged I I — 15 years Estimated Cost of New CNG Trucks 4 II 5 5 $250K ea Amount in Vehicle Replacement Reserve $4.3 M :,2:MJ:101elZLOI MAI 11D City Council Meeting — Retain HF &H City Council Meeting — RFP Discussion City Council Finance Committee Meeting - RFP Refinement A City Council Meeting - RFP Refinement Release of RFP Proposals Due Proposal Summaries and Questions Sent to Proposers Responses to Questions Due Follow- ups /Clarifications with Proposers City Council Meeting — RFP Analysis & Rec. January 2012 February 26, 2013 March 25, 2013 April 23, 2013 May 13, 2013 June 28, 2013 July 18, 2013 August 2, 2013 August 2013 September 10, 2013 19r III • Unlimited Set Out • Unlimited Set Out Im • Manual Collection • Single Stream Collection • Processing of all Waste to Recover Recyclables s • Automated Collection (mix of semi- and full automation) • Voluntary Recycling —you can get a recycling container • Some Processing of Mixed Customer - Provided Containers 01• Hauler- Provided Container Advisory Services to Municipal Management 2 Proposer Ownership • Athens Services • CR &R Inc. • Newport Beach Employee League • Newport Recycles • Rainbow Environmental Services • Republic Services • Ware Disposal • Private • Private • City • Private 9 Private • Publicly- Traded • Private Advisory Services to Municipal Management 3 0 (1) As proposed plus Recycling Fee add back of $941,000. Advisory Services to Municipal Management 12 Proposer Path 7- Ye Difference from Current City Operations 1. CR &R 2 $ 18,582,000 $ (17,013,000) -48% 2. Ware 1 $ 21,422,000 $ (14,173,000) -40% 3. CR &R 1 $ 22,039,000 $ (13,556,000) -38% 4. Ware 2 $ 23,426,000 $ (12,169,000) -34% 5. Rainbow 2 $ 27,251,000 $ (8,344,000) -23% 6. Republic 1 $ 28,576,000 $ (7,019,000) -20% 7. Republic 2 $ 28,576,000 $ (7,019,000) -20% 8. Athens 1 $ 30,125,000 $ (5,470,000) -15% 9. N.B.E.L. (1) 2 $ 32,099,000 $ (3,496,000) -100/0 10. Athens 2 $ 33,752,000 $ (2,443,000) -7% 11. Rainbow 1 $ 33,635,000 $ (1,960,000) -6% 12. N.B.E.L. (1) 1 $ 34,753,003 $ (1,442,000) -4% 13. Current City Operations 1 $ 35,595,000 $ 14. Newport Recycles 1 $ 49,881,000 $ 14,286,000 400/. 15. Newport Recveles 2 Not Proposed (1) As proposed plus Recycling Fee add back of $941,000. Advisory Services to Municipal Management 12 CR &R Iry Ware MRF for Mixed CR &R City's CR &R contract Waste Processing Newport Beach Newport Coast, Santa Ana City Facilities, Experience Heights, Commercial non - Commercial non - exclusive exclusive Residential Laguna Woods and unincorporated Experience 27 cities L.A. and Orange county areas Reference Check Score (1) 4.2 3.7 (1) 5 = Exceptional Performance, 4 = Above Expectations, 3 = Satisfactory, 2 = Below Expectations, 1 = Unsatisfactory Advisory Services to Municipal Management 5 — 0 IVi7AVA7101510 9 OMVA 1 M =LVA71 • l Oak Service CANS All of my trash will be picked up. I can have as many cans as I need. I can have a can size that fits my space — side yard, garage, wherever. If I want to put out extra bags by the cans I can do so. RECYCLING AT HOME I don't want to recycle at home 19 Y Y a OK r1 R Y u OK I want to recycle at home N Y Service CONVENIENCE If I set out bags by the cans, they'll be collected. Y If I set out larger items beside the trash, they'll be Y collected. If I am disabled and need side -yard "can pull -out Y service ", I can get it. There won't be an earlier start time because of a Y recycling truck BULKY ITEMS Someone will pick up my refrigerator, other big Private appliance Hauler, fee Someone will pick up my sofa or mattress. Private Hauler, fee Y a Y Y u u Service WHO PAYS? My trash is collected at no charge to me. Y Y The city pays for new cans. N Y Costs of any new contract won't be passed on to me. N/A Correct AUTOMATION v. MANUAL Will some of the community have to remain Y — But N — some manually - collected? automated semi - is coming automated, though Use onlyAQMD Compliant (CNG) vehicles 4 now, purchase Y more Service NEW PROGRAMS — IF NEGOTIATED Sharps - Dispose -by -mail program Community Shred -it Days Mulch give -away days Compost and wood chips for City parks /parkways EXPERIENCE /CUSTOMER SATISFACTION Direct experience in Newport Beach "Very Satisfied" ranking in 2010 Community Survey N N N N Y Y Y Y Y Y Y Y IOL I �Al Lqbl 2 0 How do we know the service is good? Demonstrated good service in our community (for CR &R, for example): Newport Coast, Newport Ridge Crystal Cove Bonita Canyon Santa Ana Heights Bay Knolls (Costa Mesa SD) Ware current provider to City facilities LEGEND Mean rating on a S -point ua 1.8 -2.E 2.6 -3.4 Q12a Satisfaction with residential trash collection services - 3 4.4.7 Satisfied _ 4 2- 5,0 Very Satisfied Other (no responsesf 2010 City of Newport Beach Community Sur-,*ey Of the Wealthiest California Communities... Belvedere - Private (Mill Valley Refuse) Rancho Santa Fe — Private (Waste Mgmt) Atherton — Private (Recology) Rolling Hills — Private (Waste Mgmt) Woodside — Private (Greenwaste) PortolaValley — Private (Greenwaste) Newport Coast — Private (CR &R) r Hillsborough — Private (Recology) Fairbanks Ranch — Private (Waste Mgmt) San Marino — Private (Athens) Palos Verdes Estates — Private (Athens) Malibu — Private (Waste Management) Orange County Cities PRIVATE: Aliso Viejo Anaheim Brea Buena Park Costa Mesa Cypress Dana Point Fountain Valley Fullerton Garden Grove Huntington Beach Irvine Placentia • La Habra RSM • La Palma San Clemente • Laguna Beach • Laguna Hills SJC • Laguna Niguel Santa Ana • Laguna Woods Seal Beach • Lake Forest - Stanton • Los Alamitos Tustin Mission Viejo Orange Villa Park Westminster Yorba Linda Orange County Cities PUBLIC: Newport Beach (partial) Midway City (uninc) Oio VADALo CENTER WES7mN5TER MEMORIAL PARR CEMETFAr HUNTINGTON I HUM"mOrm BEACH CrNTEA HUMB "F FOUNTAIN VALLEY "They won't be able to handle our geography" Most of the community = automated. Tighter spots =semi - automated (roll the can to the back of truck and a lift flips it in) This works in other tight places, like Laguna Beach. Contract and Cost No cost to the customer — today or tomorrow. Contract proposed is for seven years. 2.5% CPI = less than expected City cost increases It has a term — it can be re -bid. It has service standards. It has penalties. The City today successfully manages CR &R, Ware, and several other refuse contractors. What does $17M mean? Allows us to manage increasing pension costs, while still investing in the community. Ongoing savings help fill $5 -7M pension gap. One time savings = community investment now: Streets Westside facilities and streetscapes (PCH, Balboa) UTO-YIN Can even further enhance refuse collection: More bulky item days A sharps program Container pull -out for those who need it. Shred -it days Our employees deserve to be protected! They do. Agreement with OCEA/NBEL All employees guaranteed a good choice: Stay with the City — likely in other field positions. Work for the private provider, with an incentive Retire, only if desired. •l0[M■o1.`I[• Why this is Important The health of our city depends upon: Reducing heavy city costs (retirement,WC, Health) Without compromising service Without impacting public safety While still keeping the community looking And no one will lose their job. Recommendation Negotiate draft contract with CR &R and /or Ware Council guidance on Path #I or #2 Council could select other provider(s) Return to City Council for contract adoption (Oct -Nov 2013)