“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”Solid Waste Diversion Considerations June 17, 2025 2CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
DIVERSION
JUNE 17, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS Waste ReductionReuse/Donation
Recycle/Compost
LANDFILLDIVERSION
3CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
RECYCLING & PROCESSING
JUNE 17, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS WM Sun Valley Recycling CenterSun Valley, CA
4CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
ORGANIC MATERIAL & PROCESSING
JUNE 17, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS South Valley CompostTulare, CA
5CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
LANDFILL, RECYCLING & ORGANICS
JUNE 17, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS El Sobrante LandfillCorona, CA
Recycling
Organics
6CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” Snapshot: 2023 Performance
JUNE 17, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS
7CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
TYPES OF WASTE COLLECTION
FEBRUARY 4, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS
HAULER (WM)CONSTRUCTION & DEMOLITIONTHIRD-PARTY/SELF-HAUL WM’s franchise agreement is for residential and commercial collection only. This is the only material they get diversion credit for.
PermittedProjectsDonation,Redemption& Self-haul
Residential &Commercial
8CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS WM PROPOSAL VS. PERFORMANCE
RFPPROPOSAL46%
AWARDED AGREEMENT50%
PERFORMANCE2021:* 43% 2022:* 45%2023: 32%*Includes 10% transformation credit 9CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” LandfillTrashCHALLENGES WITH DIVERSION
FEBRUARY 4, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS Actual 2021 & 2022WM ProposalUsed 10% Transformation creditUse (one) 1% Transformation credit annually TRANSFORMATIONWaste-to-Energy
COMMERCIAL RECYCLING Actual 2021 & 2022WM ProposalUnder 2,000 tons recycled annuallyRecycle 4,000+ commercial tons annually 10CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WASTE MANAGEMENT’S SOLID WASTE DIVERSION CONSIDERATIONS LIQUIDATED DAMAGES20232022202150%50%50%Required Diversion31.8%45%43%Actual Diversion18.2%5%7%Percentage Difference31,92730,74431,545Total Tons Collected15,96415,37215,773Required Tons Diverted10,16113,92513,613Actual Diverted Tons5,8031,4472,159Delinquent Tons$25.00 per tonLiquidated Damage$145,064$36,177$53,981Liquidated Damage Fee 11CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION ACTIONS TO DATESection 3.8.1 of WM Franchise Agreement:“Upon the request of either party, but not more than once every two years, the parties agree to meet and confer, and negotiate in good faith, regarding adjustments to the hauler diversion requirement…”Meet & Confer Dates: WM and CityAugust 27, 2024September 17, 2024October 10, 2024October 29, 2024November 19, 2024February 26, 2025April 3, 2025May 7, 2025May 15, 2025 City Council MeetingFebruary 4, 2025Direction1. Analyze and confirm that 37% is the maximum diversion rate that WM can reasonably achieve 2. Analyze the valuation of the loss in diversion and return at a later date with recommendations. 12CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” HF&H Consultants, LLCAnalysis
13CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION ANALYSIS #1: IS 37% DIVERSION ACHIEVABLE?
WM estimates 5% increased diversion from improvementsWM diversion with improvements achieves 37%37% diversion with no reliance on transformation aligns with WM’s original proposal before agreeing to 50% diversion at contract award
14CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION ANALYSIS #2: VALUATION OF LOSS IN DIVERSIONHF&H used 2 Methods of AnalysisMETHOD 1: TRANSFORMATION COST SAVINGS Transformation vs. Landfilling
15CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION ANALYSIS #2: VALUATION OF LOSS IN DIVERSIONMETHOD 2: LIQUIDATED DAMAGES COST SAVINGSEstimated Scenario: If 37% was required diversion in 2023
16CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION CONT’D ANALYSIS #2: VALUATION OF LOSSDETERMINING RATE REDUCTION:AVERAGE OF TWO METHODS Method 1: Valuation of 2.4%Method 2: Valuation of 1.6%Average of 2%
17CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION CONT’D ANALYSIS #2: VALUATION OF LOSSCONCLUSION OF ANALYSIS #2The valuation of the loss in diversion rate can be returned to the ratepayers and phased in as a 1.0% reduction to the annual rate adjustment on July 1, 2025, and an additional 1% reduction on July 1, 2026.FY2025-2026 WM Contractor RateFY2026-2027 WM Contractor Rate1%1% 18CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION SAMPLE: 1% REDUCTION IN FY25-26
What the FY2025- 2026 rates would look like
This total includes the Consumer Price Index (CPI), the one-time special increase, the 1% rate reduction and the City Recovery Cost.
19CITY OFMANHATTAN BEACH“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”FEBRUARY 4, 2025WM REQUEST TO ADJUST SOLID WASTE DIVERSION REQUIREMENT DISCUSSION RECOMMENDATION1. Maintain the diversion requirement under the Agreement at 50% with no changes;2. Adopt Resolution No. 25-0079, authorizing the City Manager to enter into an amendment to the Franchise Agreement reducing the diversion requirement from 50% to 37% and reducing the WM contractor rate by 1% in FY2025-2026 and 1% in FY2026-2027; or3. Direct staff to pursue another course of action.
Options for Next Steps: