HomeMy WebLinkAbout- - Penalties for Non-Compliance Attach. 2 - 12/7/2010ATTACHMENT 2
MEETING DATE: AUGUST 17, 2010 ITEM NUMBER: IX -2
SUBJECT: CONSTRUCTION AND DEMOLITION DEBRIS TRACKING SYSTEM
DATE: AUGUST 5, 2010
FROM: PUBLIC SERVICES/ADMINISTRATION
PRESENTATION BY: PETER NAGHAVI, DIRECTOR OF PUBLIC SERVICES
FOR FURTHER INFORMATION CONTACT: JOCELYN SCHAMBER, MANAGEMENT ANALYST
714-754-5024
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Authorize development and implementation of a construction and demolition debris
tracking system.
BACKGROUND:
In 1993, the City of Costa Mesa established a permit system to assist in the
management of solid waste hauling. Since its inception and evolution into a non-
exclusive franchise, the City's hauling permit system has had difficulty incorporating all
waste haulers into the fold. As it stands, illegal hauling accounts for approximately 10
percent of the City's total waste stream and represents nearly $200,000 in lost
franchise fee revenue to the City. To put the issue in perspective, the total annual
waste disposed by illegal haulers would place this group as the third largest hauling
entity in the City.
Historically, the City has used its solid waste consultant to do periodic sweeps to find
evidence of illegal hauling, such as dumpsters or roll -off containers from non -permitted
haulers. While this effort identified a number of illegal haulers and brought several into
the franchise system, it has never secured complete hauler compliance. Dozens of
identified illegal hauling incidents have shown a disturbing trend: haulers ignore City
warning notices and continue to operate. Similarly, a number of illegal haulers that
were brought into the franchise quickly dropped out of the system, though they remain
active hauling entities.
While the number of Costa Mesa's permitted haulers has fallen to ten --half of the
historic high—the neighboring city of Newport Beach, which uses the same basic
requirements in its non-exclusive franchise, maintains 27 haulers. Many of these are
construction and demolition waste haulers that once held permits in Costa Mesa. The
difference between the two systems is, once haulers are accepted into Newport
Beach's franchise, the City of Newport Beach must dismiss them; there is no opt -out,
such as Costa Mesa's annual permit renewal process. Franchised demolition and
construction haulers paid $175,000 in franchise fees to Newport Beach in 2008,
whereas this group of haulers paid $44,500 in franchise fees to Costa Mesa.
Construction and demolition haulers are important to any solid waste management
system because construction and demolition waste is highly recyclable; the statewide
average is 70 percent recycled materials per project. While these recyclables do not
contribute directly towards City diversion requirements 100 percent of the waste illegal
haulers dispose counts against the City. The City's franchised haulers must divert at
least 50 percent of the waste they haul, while illegal haulers operate under no diversion
requirements. Since disposal is a less time-consuming and cheaper alternative to
recycling, many of these highly recyclable construction and demolition materials are
dumped in the landfill. In addition, the City has no way of quantifying any diversion
credit received by these haulers and no way of addressing this sector of the City's
waste stream in annual reports to the State.
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Both the City's illegal -hauling and waste -reporting concerns can be mitigated by
creating a construction and demolition debris tracking system. This system will require
contractors to use a City permitted hauler to haul waste from designated construction
and demolition projects.
Via Senate Bill 1374 (passed in 2002), the State of California requires municipalities to
track construction and demolition waste as part of their AB 939 diversion compliance.
This legislation also strongly urges municipalities to adopt construction and demolition
ordinances requiring at least 50 -percent diversion for all designated projects. The City
of Costa Mesa, by requiring use of a franchised waste hauler that meets the 50 -percent
diversion mandate, is using existing City ordinances to show compliance with Senate
Bill 1374. The key is enforcing current ordinances by requiring proof that a franchised
hauler was used and creating an effective deterrent by imposing an administrative fee if
such a hauler was not used.
The tracking system will consist of a one-page construction/demolition project hauling
agreement form, hauler receipts, and sign -off requirements for all designated
construction projects to receive an occupancy permit. All contractors applying for a
permit to perform construction or demolition projects valued at $10,000 or greater will
be required to submit proof, in the form of invoices, that a City permitted hauler was
used to haul all solid waste removed from the job site. Failure to provide the required
proof will constitute a violation of the Costa Mesa municipal code and will be subject to
'a fine of $1,000 or 3 percent of the total project value, whichever is greater. This fine
will be due and payable before an occupancy permit or final City approval of the project
is granted. Through this system and its fee for non-compliance, the occupancy permit
process is not delayed, but contractors are financially deterred from using a non -
permitted hauler.
Many other Orange County cities have similar construction and demolition debris
tracking systems designed to curtail illegal hauling, to fulfill Senate Bill 1374
requirements, and to help cities meet their mandated 50 -percent solid waste diversion
requirements. Sample cities include Mission Viejo, Rancho Santa Margarita, Tustin,
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Brea, and in particular, the City of Huntington Beach, which adopted an ordinance
making it illegal for an individual to hire a non -permitted waste hauler. Costa Mesa's
tracking system will operate in much the same way, so there is ample precedent.
Additionally, implementing this system will not increase hauler service rates in Costa
Mesa because the non-exclusive franchise fosters competitive pricing. Costa Mesa is
one of only three cities in the County that provides contractors a franchise system
where competitive bids can be received for ten haulers.
Make no provisions to track construction and demolition hauling. This will result in
continued non-compliance with Senate Bill 1374 and continued inability to track the
source of disposed and diversion tonnage from the City's jurisdiction, which may also
threaten the City's compliance with California's Assembly Bill 939 solid waste diversion
mandate. Not changing the system will also result in continued loss of revenue due to
haulers operating without paying the required franchise fee.
FISCAL REVIEW:
The debris tracking system is expected to increase franchise fee revenue with minimal
impact to staff time.
LEGAL REVIEW:
None.
CONCLUSION:
Implementing a construction and demolition debris tracking system will bring many
benefits to the City, including a reduction in illegal waste -hauling; the ability to account
for construction and demolition waste, per Senate Bill 1374 requirements, and the
ability to account for this waste's ample recyclable materials; and an increase in
franchise fee revenue.
JO LYN S HAMBER ,�i+�"• PETE AGHAVI
Management Analyst
COLLEEN O'DONOGHUE
Assistant Finance Director
Public Services Director