1. Department of Public Works Non-Exclusive Solid Waste Collection Franchise System – Review September 29, 2014

2. Department of Public Works Overview Continuation of review of City’s franchise system Seeks to answer 2 questions 1.What system is best for Pasadena today? 2.What steps Pasadena should take to meet anticipated future needs?  City sustainability & conservation policies  Zero Waste Strategic Plan  Current & expected state legislation  AB 1826 – commercial organics recycling 2

3. Department of Public Works Chronology April 8, 2014 – MSC recommended City Council retain closed system & place franchisees on 5-year notice of intent to consider modification to franchise system April 28, 2014 – City Council deferred action & directed staff to  Update PMC to address composting haulers  Provide information on C&D haulers & inert materials 3

4. Department of Public Works Chronology September 9, 2014 – MSC unanimously recommended City Council approve recommendations contained in report  Requested staff review definition of organics in response to public comments 4

5. Department of Public Works Recommendations 1.Direct City Attorney to amend PMC Chapters 8.60 (Solid Waste) & 8.61 (Franchise System) & return to City Council in 90 days 2.Open non-exclusive franchise system to composting haulers for processing organic, yard waste & other compostable material from commercial & residential accounts to state approved/permitted composting facilities 5

6. Department of Public Works Recommendations 3.Retain closed franchise system for solid waste & construction & demolition (C&D) haulers 4.Direct City Manager to place solid waste & composting haulers on notice of City’s intent to consider modification of current non- exclusive system including possibility of moving to exclusive system in 5 years (excludes C&D-only haulers) 6

7. Department of Public Works PMC Amendments Proposed amendments to PMC Chapters 8.60 (Solid Waste) & 8.61 (Solid Waste Collection Franchise)  Allow composting haulers to collect organic, yard waste & other compostable material from residential & commercial properties  Organics – materials that are or were living (leaves, grass, crop residues & food scraps)  Other compostable material – material confirmed in writing as compostable by certified processing facility 7

8. Department of Public Works Composting Open franchise system to composting haulers  Processing organic, yard waste & other compostable material from commercial & residential accounts Diversion opportunity  42% of Pasadena materials disposed of in landfills are compostable (2008 Statewide Waste Characterization Study)  Moves City toward Zero Waste Goal of 87% diversion by 2040  Provides additional options for AB 1826 compliance 8

9. Department of Public Works Composting New composting franchises  Will be awarded to haulers meeting requirements  Remain open & be evaluated in next franchise system review in 3 years What to expect  Manageable number of new haulers to enter franchise system  Limited number of processing facilities in region  Cost of transporting & processing material 9

10. Department of Public Works C&D Debris Retain closed franchise system for C&D collection  Processing of material generated from construction, renovation, demolition & paving projects  C&D debris – gravel, plaster, wallboard, metals, glass, plastic pipe, roofing, carpeting & wood  Inert material – rock, concrete, brick, sand, soil & asphalt 10

11. Department of Public Works C&D Debris Why keep C&D franchise closed  Adequate number haulers (21 of 22) provide service  Each hauler exceeds 75% diversion requirement  77% - 100% diversion in FY 2013  Additional franchises will not increase diversion since diversion primarily based on processing facilities’ “certified diversion percentage”  9 C&D processing facilities certified by City of LA have 75% or higher diversion rates 11

12. Department of Public Works 5-Year Exclusive Notification Place solid waste & composting haulers on notice of City’s intent to consider modification of current non-exclusive system including possibility of moving to exclusive system in 5 years (excludes C&D-only haulers)  Enables City to be prepared if adjustments needed  Supports City sustainability & conservation policy directions & anticipated state legislation  Does not obligate City to pursue system modification 12

13. Department of Public Works 5-Year Exclusive Notification Why issue notice to new composting haulers  Provides flexibility for City as industry matures  Difficult & expensive to site, permit & operate organics processing facilities  Exclusive organics franchise(s) may be most cost- effective service option  Processors need consistent tonnages to develop & operate facilities 13

14. Department of Public Works 5-Year Exclusive Notification Why exempt C&D-only haulers from notice  6 of 22 haulers provide C&D services only  All haulers exceed mandatory 75% diversion requirement  If 5-year notice issued, haulers may stop investing in advanced technologies knowing they will not be able to compete to become exclusive provider if new service model implemented  Municipal industry trend is toward exclusive systems where C&D service is exempted 14

15. Department of Public Works Proposal Summary 1.Amend PMC Chapters 8.60 (Solid Waste) & 8.61 (Franchise System) & return to Council in 90 days 2.Open non-exclusive franchise system to composting haulers for processing organic, yard waste & other compostable material from commercial & residential accounts to state approved/permitted composting facilities 3.Retain closed franchise system for solid waste & C&D haulers 4.Notify solid waste & composting haulers of intent to consider moving to exclusive system in 5 years (excludes C&D-only haulers) 15