City Council
Report
City Council Meeting: June 14, 2022
Agenda Item: 3.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Approval of City Yards EIR Addendum, Hathaway Dinwiddie Change Order, and SCD License Agreement and Contract Modification
Recommended Action
Staff recommends that the City Council:
1. Review, approve, and adopt the addendum changes to the City Yards Master Plan Environmental Impact Report (SCH No. 2017111053), which analyzes environmental impacts of modifications to the City Yards Master Plan;
2. Authorize the City Manager to negotiate and execute a license agreement and contract modification to Contract #9011 (CCS) with Southern California Disposal, to revise terms and conditions that will result in four years of recyclable materials transfer services through 2026;
3. Authorize the City Manager to negotiate and execute a Guaranteed Maximum Price (GMP) fifth modification to Design-Build Contract #10371 (CCS) in the amount of $1,750,000 with Hathaway Dinwiddie Construction Company for design and construction services of the Resource Recovery and Recycling Transfer Facility Relocation as part of the City Yards Modernization – Package A Project for the Public Works Department. This would result in a five-year amended agreement with a new total amount not to exceed $87,273,039; and
4. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.
Executive Summary
The City Yards Master Plan aims to modernize the aging operations and facilities at the City Yards. On October 25, 2016, City Council approved a design-build contract with Hathaway Dinwiddie Construction Company (HDCC) for the first phase of the City Yards Master Plan, referenced as “Package A” (Attachment A). The City’s Planning Commission certified the City Yards Master Plan Environmental Impact Report (EIR) 2 of 10
and approved the Development Review Permit for Package A on December 12, 2018.
Since then, the project has undergone several modifications to accommodate various design and construction service needs (Attachment B). The change discussed in this report focuses on the relocation of the City’s recyclable materials tip and transfer facility to the Hanson and Southern California Disposal (SCD) lots, which necessitates an addendum to the project’s EIR, a change order with HDCC, and a license agreement and contract modification with SCD.
Discussion
Located at 2500 Michigan Avenue, the 14.7-acre Santa Monica City Yards operates seven days a week and houses the City’s Facilities Maintenance Division, Resource Recovery and Recycling (RRR) Division, Street Services Division, Fleet Maintenance Division, Traffic Operations Division, Water Resources Division, and the Fire Department Training Facility.
Recycling Operations
For the discussion in this report, it is important to explain the three components of the City RRR Division’s solid waste management operations:
• Collection –RRR drivers operate automated and semi-automated trucks to collect solid waste materials from curbside containers residents and businesses set out on collection days.
• Tip and Transfer – The City contracts with SCD, which operates a private transfer station located next to the City Yards, for solid waste transfer services.
After collection, RRR drivers unload solid waste materials from their trucks onto a tipping floor, and the waste is reloaded by SCD workers onto large hauling trailers and transferred to different destinations based on material type. • Processing and Disposal – SCD hauls the materials to the City’s various contracted processing and disposal facilities. Landfill trash is transferred to a landfill for disposal. Organics are transferred to specialized facilities where the materials are processed and transformed into compost, mulch, or renewable 3 of 10
energy. Recyclable materials are transferred to recycling plants where they are sorted, processed, and marketed to manufacturers.
Before 2019
Prior to 2019, the City contracted with Allan Company to operate the former Santa Monica Community Recycling Center (Recycling Center), located at 2411 Delaware Avenue at the southernmost portion of the City Yards. The Recycling Center served two purposes: 1) allow the public to recycle items such as beverage containers and scrap metal and redeem for cash; and 2) provide on-site processing of the City’s curbside recyclable materials. Prior to 2019, RRR drivers collected the curbside blue-bin recyclable materials and delivered them directly to the Recycling Center for on-site processing at the City Yards, bypassing the need for SCD’s transfer services. 2019 to 2022
The Recycling Center that sorted and processed recyclable materials within the City Yards closed in June 2019. From July 2019 through August 2021, RRR drivers would tip recyclable materials in an area at the City Yards south of the Fire Department Training Facility, while SCD would transfer the materials to various recycling plants for processing. In preparation for the Fire Training Facility Expansion phase of the City Yards Modernization Project, this tip and transfer operation ceased in 2021. As an interim solution, RRR drivers have been delivering the collected curbside recyclable materials to the Culver City Transfer and Recycling Station for tip and transfer services, which is 6.5 miles outside of the City and costs approximately $15,000 more per month or over $179,000 per year (Attachment C). The interim agreement with the City of Culver City is temporary until a new permanent tip and transfer area in the City Yards could be identified, the environmental impact analyses are completed, and a long-term agreement with SCD is negotiated.
2022 and Going Forward
Staff identified a viable site for a permanent tip and transfer facility utilizing the southeast corner of the City Yards, known as the Hanson Lot, combined with a 4 of 10
trapezoidal portion of the SCD Transfer Station (SCD Lot). Together, they are labeled as “Relocated Transfer Facility” on the maps below (Attachment D). 5 of 10
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The Hanson Lot (owned by the City) is approximately 22,500 square feet and the SCD Lot (owned by SCD) is approximately 18,442 square feet for a combined area of 40,942 square feet for the proposed transfer facility.
Under this plan, the two lots would remain under separate ownership but used complementarily. The SCD Lot would be primarily used for tipping, loading, and transferring of curbside recyclable materials, while the Hanson Lot would be utilized for equipment storage, truck queueing, as well as accepting, loading, and storing of construction and demolition materials and large recyclable items. Tip and transfer activities may occur in the Hanson Lot in the future.
In the proposed plan, RRR drivers would enter the SCD Lot and tip the curbside recyclable materials from their collection trucks onto the tipping floor. SCD workers would pick up the materials with equipment, load them into hauling trailers, and transfer the loads to recyclable materials processing facilities. Meanwhile, SCD would use the Hanson Lot to store equipment; as a staging area for its hauling trailers to line up while waiting to load; and to accept and store recyclable construction and demolition materials and other large recyclable items brought in by self-haulers, RRR bulky item cleanup crews, and City crews working on street and water capital improvement projects. The Hanson Lot would provide enough space for SCD workers to separate bulky recyclable materials such as dirt, concrete, and mattresses into different piles for better transfer operation handling. Together, the combined traffic for both lots is estimated at 10 to 15 vehicle trips per day.
The proposed relocation of the transfer facility would involve re-grading and re-paving approximately 22,500 square feet of the city-owned Hanson Lot to allow drainage and circulation to the surrounding area. A 150-foot-long and 12-foot-high acoustical K-Rail barrier-mounted sound wall would also be constructed to extend from the existing sound wall on the SCD Lot to help mitigate noise. New trees would be planted to the east of the sound wall as an additional visual and sound barrier. The fire lane that is used to traverse the area will be relocated to the north as part of Phase One of the City Yards Modernization project. Finally, chain link fencing and gates would be installed along the 7 of 10
northern and western edges to ensure security. No construction activities will occur on the SCD lot as that lot is already equipped with an existing sound wall.
Environmental Review
The relocation of the transfer facility was not previously assessed in the City Yards Master Plan Environmental Impact Report (EIR) [SCH No. 2017111053]. Pursuant to the California Environmental Quality Act (CEQA) Guideline 15164(a), a lead agency must prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in CEQA Guideline 15162; calling for preparation of an EIR have occurred (i.e. substantial changes that involve new significant environmental effects or substantially increase the severity of previously identified significant effects, substantial changes in the circumstances under which the project was undertaken, or new information of substantial importance that was not known at the time the previous EIR was certified).
Accordingly, in November 2021 the City retained Dudek, the environmental consulting firm that prepared the certified City Yards Master Plan EIR, to analyze the environmental impacts of the following proposed activities:
1. Relocation of the transfer facility;
2. Construction of sound wall on the Hanson Lot to extend from the existing sound wall on the SCD Lot; and
3. Relocation of the fire lane that currently bisects the Hanson Lot to a location that connects to the fire access gate at the mobile home park.
Dudek completed its analyses in March 2022 and detailed its findings in the Addendum Changes to the City Yards Master Plan Environmental Impact Report (Attachment E).
Dudek analyzed a list of 22 environmental factors as required by the CEQA, including air quality, greenhouse gas emissions, neighborhood effects, noise, and traffic transportation, among others. In summary, the proposed transfer facility and associated changes to the City Yards Master Plan would not constitute a substantial change in the City Yards Master Plan Project nor would it result in a new or greater environmental 8 of 10
impact. With the extension of a sound wall, the proposed transfer activities from both the Hanson and SCD Lots would not exceed the City’s noise ordinance.
In light of these proposed minor modifications to the City Yards Master Plan, an Addendum is appropriate because none of the conditions described in CEQA Guideline 15162 have occurred which would warrant preparation of a supplemental or subsequent EIR. Based on the analysis in the Addendum, the proposed revisions to the City Yards Master Plan would not result in new or substantially more significant environmental effects than were identified in the EIR and would not require new mitigation measures than were already required by the EIR.
Public Input
CEQA does not legally require a public hearing for addendums to the EIR. However, the City chose to inform all property owners located within a 750-foot radius of the proposed project site. On February 4, 2022, the City mailed a Notice of Availability to 888 residential and commercial property owners and posted the Addendum on its website at https://www.smgov.net/Departments/PCD/Environmental-Reports/City-Yards-ProjectEIR/. Additionally, the City made available a 30-day public review and comment period between February 2 – March 6, 2022. Three public comments were received. Those comments and the City’s responses were included in the Addendum.
Next Steps
HDCC is currently constructing Phases 2 and 4 of the City Yards Modernization Project and will complete the relocation of the transfer facility concurrently. Staff anticipates completion of this additional scope about eight weeks after Council approval.
Additionally, since the proposed transfer facility involves both City property (Hanson Lot) and private property (SCD Lot), a contract modification of Contract #9011 (CCS) with SCD is required to incorporate a license agreement to memorialize the terms, conditions, and authorized usage of both lots for transfer services of recyclable materials. This contract modification for transfer services of recyclable materials would expire in four years, in 2026, to align with the expiration date of the existing SCD 9 of 10
contract, which encompasses transfer services of landfill trash, organics, and City generated construction and demolition materials (Attachments F). Pursuant to contract terms, staff is required to meet with SCD to discuss the other services mentioned above by December 1, 2022, followed by a written notification expressing the City’s intent to exercise the contract’s renewal options by December 1, 2025. Staff will begin the negotiations process later this year and return to Council before 2025 for contract renewal approval and any necessary budget actions.
The proposed cost for recyclable materials transfer services is estimated at approximately $3.5 million over four years, which is more cost-effective than RRR drivers continuing to transport recyclable materials to Culver City based on staff analysis. The cost is deemed reasonable considering Santa Monica’s geographical distance from recyclable materials processing facilities. The estimated cost would be absorbed by the existing Council authorized amount for the SCD contract #9011 (CCS).
No budget action would be required at this time.
Past Council Actions
Meeting Date Description
10/25/2016
(Attachment A)
Award Design Contract for the City Yards Modernization Project 5/28/2019
(Attachment C)
Closure of Recycling Center
6/6/2021
(Attachment D)
Interim Recyclable Materials Transfer Services Contract with Culver City
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the RRR Fund to increase the amount of the GMP agreement with HDCC for design and construction services for the relocation of the transfer facility included in the City Yards Modernization Project Package A.
Funds are available in the FY 2021-22 Capital Improvement Program Budget in the RRR Fund.
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Agreement Modification Request
Agreement # Current
Authorized
Amount
FY 2021-22
Modified
Request Amount
Budget
CIP Account #
Total Revised
Contract Amount
10371 $0 $1,750,000 C5408070.689000 $1,750,000
10371 $48,426,082 $0 C0105410.689000 $48,426,082
10371 $19,148,100 $0 C0105410.689720 $19,148,100
10371 $7,406,100 $0 C5005410.689410 $7,406,100
10371 $1,084,600 $0 C5105410.689000 $1,084,600
10371 $60,300 $0 C7505410.689000 $60,300
10371 $1,500,000 $0 C7007720.689000 $1,500,000
10371 $650,000 $0 C5104870.689000 $650,000
10371 $372,857 $0 C2006830.689000 $372,857
10371 $6,350,000 $0 C0107500.689000 $6,350,000
10371 $200,000 $0 C0104580.689000 $200,000
10371 $325,000 $0 01500020.52914C $325,000
$85,523,039 $1,750,000 Total $87,273,039
Prepared By: Yvonne Yeung, Resource Recovery and Recycling Administrator Approved Forwarded to Council
Attachments:
A. Staff Report - October 25, 2016 (Web Link)
B. HDCC Contract and Modifications for Design-Build of City Yard C. Staff Report - June 6, 2021 (Web Link)
D. Proposed Relocated Transfer Facility Site Maps
E. City Yards Master Plan Environmental Impact Report Addendum F. SCD Contract and Modifications for Solid Waste Transfer Services G. Oaks Form - Hathaway Dinwiddie
H. Oaks Form - SCD
I. Written Comments