Council hears solid waste proposal

New contract would call for lower rates, local recycling facility, transitional period

Last year, Joel Olea, Yuma’s public works director, started hearing reports of cities and towns around the state struggling with recycling following the plummet of the market. Some municipalities downsized their recycling programs, and some eliminated recycling altogether.

Most of the changes were a direct reflection of China’s new policy, which reduced the level of acceptable contamination within the recyclables from a rate of 3% to half of a percent. This change for cleaner materials added costs to the vendors who process recyclables.

Since Yuma’s contract would be expiring, Olea knew the city would not receive the same favorable contract as seven years ago. It became apparent to him that the city would need a contract with a new recycling model that works both for the vendor and the community.

On Wednesday, Olea presented the Yuma City Council a proposed new solid waste contract that addresses landfill disposal and recycling services for the next 10 years.

After qualifying vendors through the Request for Proposal process, city staff negotiated a contract with the top vendor, Republic Services, which is the current vendor.

The proposed new contract with Republic calls for the same rate for pickup of both trash and recyclables, an eight-month transition period with a modified recycling program and eventually a local recycling facility in Yuma.

The contract could appear on the agenda for possible council adoption as soon as October.

The city’s solid waste service is an enterprise fund, which means that the city has to collect enough funds so the operation pays for itself.

At a rate of $14.25 a month, Yuma residents continue to pay the lowest fee in the state. In February 2018, a solid waste rate study indicated a need for gradual rate adjustments, with annual increases through the budget process.

Starting in 2022, the study called for projected increases of 3% every year, averaging between 40-50 cents. The goal is for the increase to cover residential growth, capital expenses and landfill costs.

As a result of the rate study, the council approved the ability to apply rate increases through the budget process specifically using the consumer price index or 3%, whichever is lower.

The proposed contract identifies a rate of $28 per ton for trash disposal, lower than the current rate of $30.70. The rate for recycling processing is also $28 per ton. The vendor’s annual rate increase is capped at 3%.

The contract also calls for revenue sharing with Republic receiving 80% and the city 20% for the first $125,000 received from the sale of materials in any given year. Thereafter, the revenue sharing would reverse, with the city netting 80% and Republic 20%.

Currently, Republic receives 90% and the city 10%, and the vendor covers the cost of the bins for the residents.

Under the proposed contract, Republic would maintain the same transfer station located at Avenue 3½E and 32nd Street and dispose of the trash at the Copper Mountain Landfill in Wellton.

The company would construct and expand the current transfer station by 5,000 square feet to the existing facility and hire three additional staff members solely to process recyclables.

Republic will no longer process recycling in the Imperial Valley, California. This contract will bring the recycling process to Yuma for the next 10 years, Olea noted.

However, Republic is requesting a transitional period of up to eight months before it starts recycling in Yuma. The company wants time to hire and train staff and construct a facility. The objective is to start local recycling no later than July 1.

During the transitional period, residents will maintain the same bins they now have, green for regular trash and blue for recyclables. But, for eight months, Republic will dispose of the materials in the blue bins at the landfill.

For those who don’t want their recyclables to end up in the landfill, the company will offer a modified recycling program starting as early as November and ending in June. Republic will set up five recycling drop-off sites with locations at Avenue A and 4th Street, Avenue A and 36th Street, 24th Street and 33rd Avenue, 24th Street and 7½E, and 40th Street and Avenue 8E. The vendor’s cost will not exceed $31,500 and they will manage all the sites.

Councilman Gary Knight questioned the revenue-sharing aspect of the proposed contract. He asked whether the $125,000 figure is likely to be reached. Olea said that city staff and the vendor believe it can reach the figure but noted that it’s “uncharted territory” and recycling has never been processed locally.

“They could not get into a situation where it would be costing them money,” Olea added. Knight said he understood that the company is in the business of making money.

Deputy Mayor Karen Watts expressed concern that residents would stop separating recyclables during the transitional period. Olea said that the city will encourage residents to keep the same routine and that the transition period might be shorter than eight months.

In response to a question from Councilwoman Ema Lea Shoop, Peter Sterenberg, general manager at Republic Services in Yuma, illustrated the drop in the value of all recyclables, clean or otherwise, due to China’s change in policy. He said that corrugated carton, a very desirable commodity, had been in the range of $140-160 per ton; last month the value dropped to $35.

During the call to the public, former councilor Gary Wright said he is a big believer in recycling and suggested the city look at other options as well and cited outsourcing as an example.