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1 RiversideCA.gov
1 RiversideCA.gov
INSOURCING SOLID WASTE OPERATIONS
Land Use, Sustainability and Resilience Committee
January 8, 2024
Public Works Department
RiversideCA.gov
2 During the May 9, 2023, City Council meeting, the Public Works Department was directed to return to the Land Use,
Sustainability, and Resilience Committee to explore the gradual scaling of internal trash hauling services. To initiate this conversation, Public Works staff studied operational needs and costs associated with insourcing all residential and commercial solid waste operations
.
BACKGROUND
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3 • 63,484 Residential accounts
– City crews service 42,323
– 1 Private hauler services 21,161
• 7,408 commercial accounts
– All accounts serviced by 3 private haulers
• Through March 2029, all waste goes to
Agua Mansa Transfer Station/Materials
Recovery Facility
CURRENT OPERATIONS
RiversideCA.gov
4 • Installation of additional CNG and EV fueling stations • Additional mechanics and fleet maintenance costs
• Electric infrastructure and grid connection costs
• Real property costs
• Costs associated with a City-owned/operated MRF
• Insourcing costs/revenues vs. outsourcing
costs/revenues
• Insourcing solid waste rate impacts
COST ESTIMATE EXCLUSIONS
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5 • July 1, 2023 – City executed 15-year Franchise
Agreements for residential and commercial solid waste
services
• Each Agreement includes an Article for Modifications to the Agreement
– City and Contractor would negotiate in good faith a
reasonable and appropriate compensation adjustment for
any increase or decrease in services or other obligations – Buy out for 15-year Agreement would need to consider
Contractor’s investment in their vehicle fleet, bin inventory, personnel, and possibly lost profit
FRANCHISE AGREEMENTS
RiversideCA.gov
6 Estimated cost $12 million for personnel, vehicles and bins • $1.9M for 21 additional employees
• $10.5M for 16 refuse vehicles
• Note: we do not yet know how electric trash trucks will perform and may need more trucks to provide a full day of service plus time for disposal at MRF
• $400K for container replacement
inventory
• Ramp-up Period Complete in 3+ years
• Take over private hauler routes as staff and
trucks come online
• 18-24 months to receive trucks
INSOURCING RESIDENTIAL SERVICE
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4 RiversideCA.gov
7 Estimated cost $63 million for personnel, vehicles, containers • $4M for additional 44 employees
• $34.6M for 50 refuse operation vehicles
• Note: we do not yet know how electric trash trucks will perform and may need more trucks to provide a full day of service plus time for disposal at MRF
• $23.7M for 25,080 commercial bins + inventory
• Ramp-up during 5-year required notification
INSOURCING COMMERCIAL SERVICE
RiversideCA.gov
8 • Solid Waste based at City Corporation Yard with
RPU, Park Maintenance, Fleet (includes Fire & PD),
Building Services, EOC, Special Transportation and
Central Stores
• Insourcing would necessitate a new base
for Solid Waste or relocating other City
departments
• Further study required to identify options
and costs
REAL PROPERTY NEEDS
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9 1. MRF / Transfer Station: Materials Recovery Facility – single stream system – 30K tons annually
2. Receives, separates, and prepares recyclable
materials – sold for reuse or repurposing
3. MRF is either clean or dirty
MRF / TRANSFER STATION
RiversideCA.gov
10 Many unknowns related to costing:
– Location options and land acquisition
– Regulatory costs
– Environmental study and permitting
– Design and construction
– Timeframe to reach operating status
MRF / TRANSFER STATION
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11 Strategic Priority 4 – Environmental Stewardship
Goal 4.4 – Implement measures and educate the community to responsibly manage goods, products, and services throughout their life cycle to achieve waste reduction outcomes.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
12 That the Land Use, Sustainability, and Resilience Committee provide input on preliminary estimated costs associated with insourcing residential and commercial solid waste services.
RECOMMENDATION
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