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HomeMy WebLinkAbout01/21/1997, 4 - LEASE OF REAL PROPERTY - 45 PRADO ROAD07 council acEnaa Repoat CITY OF SAN LUIS OBIS PO From: John E. Moss, Utilities Directo Subject: Lease of Real Property - 45 Prado Road CAO Recommendation: January 21 1 7 1. Receive and consider report from ECOSLO entitled ECOSLO Recycling Center - 1996 Report. 2. Approve lease extension to ECOSLO for City owned real property located at 45 Prado Road for a five month period ending June 30, 1997. 3. Re -affirm the provisions of Section 11. of the lease agreement relative to the responsibility of ECOSLO for disposal of hazardous waste received or produced as a result of their operation. 4. Approve the relocation of ECOSLO's administrative office from the downtown to the Prado Road site for the remainder of the current grant period. 5. Direct staff to review and provide to Council, an analysis and recommendation regarding the possible options for the future use of the 45 Prado Road property, including ECOSLO's proposed transfer of the leased property management to Rallco. Discussion: Background On November 15, 1971 the City granted ECOSLO their first lease of the City property located at 45 Prado Road for the purpose of operating a recycling Center. Since that time ECOSLO has maintained and operated a recycling drop -off and buy -back center at that site. The City has granted ECOSLO a number of lease extensions and on January 16, 1996 Council approved a new one year lease agreement with ECOSLO which expires on February 1, 1997. The current lease agreement contains a number of provisions directed at resolving past maintenance and operations issues at the site. One of these provisions requires Council consideration of a report addressing relevant operational information, maintenance and condition of the property, and environmental services provided to and or for the City, prior to renewal or extension of the lease for an additional year. In addition to the lease of the property at 45 Prado Road, the City has also provided ECOSLO grant funding in consideration of ECOSLO's provision of certain professional environmental services including maintaining a downtown office for the purpose of providing information regarding environmental services and programs to the public, serving as a clearing -house for environmental programs and projects of the City, and functioning as a point of contact for the public and other environmental service providers and organizations within the county. This grant agreement expires on June 30, 1997 and typically runs with the City fiscal year. In November of 1996 ECOSLO consolidated their downtown and recycling center offices to a single office located at the Prado Road site. While this action had no direct bearing on this lease agreement, under ECOSLO's grant agreement, Council's approval of the relocation of the Council Agenda Report - Title of Report Page 2 downtown office to this new location is required. Council will need to consider the possible impacts to services under ECOSLO's grant agreement. Since this was an emergency move caused by a financial crisis within ECOSLO, staff recommends that this relocation be formally accepted by Council through the remainder of the grant period. Staff is also recommending the term of this lease agreement be brought into line with the term of the ECOSLO professional services grant, since both agreements now clearly overlap. ECOSLO Recycling Center - 1996 Report As stated previously, the current lease agreement with ECOSLO requires Council consider certain relevant information prior to granting an extension of the lease for another year. ECOSLO has provided the attached, ECOSLO Recycling Center - 1996 Report, for Council review and consideration. The report summarizes the activities of ECOSLO's recycling center over the past year. Also addressed in the report is a description of the environmental services provided by ECOSLO and a brief discussion of how ECOSLO is addressing the services affected by the consolidation of ECOSLO's offices and the loss of the downtown presence. As identified in the report, ECOSLO's recycling center operations processed approximately 935 tons of recyclable materials yielding approximately $30,000 in net revenues in support of their environmental services and programs. During this past year, ECOSLO has taken steps to control the off -site migration of recyclables and improve the overall appearance of the site. Other past issues such as parking of employee vehicles and the remediation of oil contaminated soils, have for the most part been resolved. In general, staff agrees that the appearance, maintenance and operation of the site has improved, but there is still significant room for improvement, particularly in control of litter migrating from the site. Council had approved funding for paving a portion of the site, however because of potential impacts of the 40 Prado Road development on the site and discussions with ECOSLO regarding a possible desire by ECOSLO to move away from the recycling operation, no project was ever completed. Lease Extension As stated previously, staff is recommending the extension of the lease agreement with ECOSLO for an additional five months. This extension would bring the term for the lease of this property into conformance with the City's grant agreement to ECOSLO. While these two agreements have historically been viewed separately, it would be appropriate that the total program of grants and services be considered at the same time. This is especially true in light of ECOSLO's recent consolidation of offices and services at the 45 Prado Road site. In consideration of the proposed lease extension, Council should consider the information presented in ECOSLO's 1996 report discussed previously. Staffs evaluation of the recycling center operation is that it has improved and that no significant violations of the lease agreement have occurred. General site cleanliness has improved, but could be further improved with additional control of materials on site, especially in the drop -off area. This should be somewhat assisted by the recent action of ECOSLO to no longer accept mixed paper recyclables such as junk mail and magazines. Vehicle parking and bailed recycled materials loading on the access road to the Water Reclamation Facility and Bus Facility has been eliminated by ECOSLO and no longer presents a traffic hazard. ECOSLO has also eliminated the processing of recyclables collected in Morro Bay via their Rock Solid curbside recycling program through an agreement to transfer Morro Bay's # _0Z Council Agenda Report - Title of Report Page 3 curbside program to Rallco. This has greatly reduced the volume of materials processed at the Prado Road site and the subsequent problems associated with processing those large volumes. All in all, staff is comfortable with the current operations of the ECOSLO recycling center and supports the extension of their lease for an additional five months. Section 11. of the Lease Agreement - Hazardous Waste Contained in ECOSLO's 1996 report is a request for assistance from the City in dealing with the hazardous wastes left illegally at the recycling center. Staff assumes the hazardous waste in question would be used motor oil left at the drop -off center after hours on the presumption that ECOSLO is still accepting waste oil. In any regard, Section 11. of the current lease agreement clearly states that the "Lessee ( ECOSLO) shall be solely responsible for the proper storage and disposal of any hazardous waste received or produced as a result of Lessee's operations." This provision is intended to protect the City from any liability, current or future, having to do with the storage and disposal of hazardous waste collected or left at the site. Staff strongly recommends the City Council deny this request from ECOSLO and instead re -affirm that the provisions of Section 11. of the lease agreement stand. City participation or involvement with the disposal of hazardous waste from ECOSLO's operations, including legal disposal by today's regulations, could leave the City open to future liability. Office Relocation On October 3, 1996 ECOSLO notified staff of their need to close their downtown office and proposed to relocate their administrative offices to the 45 Prado Road site. Since there did not appear to be a conflict with their lease agreement which would prohibit the use of the property as an administrative office site, the relocation was tentatively approved by staff. While the office relocation does not conflict with the terms of the property lease agreement, the location of said office is subject to the approval of the City Council under the terms of ECOSLO's professional services grant agreement. Provision 2.A.1. of the professional services grant agreement specifies that ECOSLO will "maintain a public office within the City of San Luis Obispo at a location acceptable to the Council." The agreement then stipulates the services to be provided from this office as "disseminate information on environmental topics of interest to the community, answer walk -in and telephone inquiries on environmental topics, and provide a lending library of books, video tapes and slides on environmental topics to the public." The agreement also requires ECOSLO to "display and disseminate City program information, materials and supplies at the Environmental Center Office." ECOSLO has been requested to identify how they would continue to provide the required services given the relocation of the office from the downtown to 45 Prado Road. The attached 1996 Report from ECOSLO identifies that ECOSLO proposes to address this issue through an expansion of their "outreach activities in the City's downtown area (i.e. regular presence at Farmer's Market, regular participation in community events, and development of an information rack at the downtown City-County Library)." Given the extreme circumstances which have prompted ECOSLO to relocate their administrative office, staff recommends that Council approve the relocation of ECOSLO's administrative office at this time, for the remainder of the professional services agreement term, which concludes on 11-3 Council Agenda Report - Title of Report Page 4 June 30, 1997. Further consideration of the adequacy of the new location and the services provided, as well as the other terms of any future professional services agreement with ECOSLO can be determined at the time such agreement may be developed and executed. Future Use of the 45 Prado Road Site ECOSLO has indicated a desire to move away from the recycling programs and move more toward environmental education, community outreach and advocacy. Additionally, ECOSLO has had some recent financial difficulties which have placed them in debt. ECOSLO has submitted a proposal for City consideration which would in essence transfer the recycling center operation to Rallco, a Npomo based, for profit recycling operator, and in exchange ECOSLO would receive some amount of direct compensation from Rallco. This transfer would represent a significant shift in the intent behind the lease of the property to ECOSLO, and as proposed would grant a long term (five year) lease to a for profit recycling operation. As Council is aware, the granting of a no cost lease of this property to ECOSLO has been in consideration for the environmental services it supported. If the recycling center is no longer serving this function for ECOSLO, alternative uses of the property should be considered. Until such time as this can be done, granting a sole - source long -term lease agreement as proposed would be inappropriate. As stated previous, the existing lease, absent Council's granting of an extension tonight, will expire on February 1 . Additionally, the issues associated with the proposal from ECOSLO are far ranging, All issues, policy implications and procedural requirements should receive ample consideration before approval of any proposal. Issues such as: What is the highest and best use of the property absent the ECOSLO recycling yard ?; Should any private use of the property be leased via a bid process ?; Does ECOSLO have an economic interest to sell via a transfer of the lease ?; Is it appropriate for the City to help ECOSLO pay off incurred debt through granting another party a long term lease ?; Should the City consider any long term lease of the property ?. Issues such as these and others will need to be thoroughly discussed and considered by Council. Staff s initial recommendation to Council would be to not consider the proposal as it is in conflict with the intended purpose of the no cost lease to ECOSLO. Additionally, staff does not see that ECOSLO has any economic interest in the property or its use to sell. ECOSLO has indicated an interest in continuing operation of the recycling center should the City reject the proposed transfer. However, given the complexity of the issues raised by ECOSLO's proposal, staff is recommending that Council provide staff direction to return with a full report on the options for future use of the property, including ECOSLO's proposed transfer. The recommended five month extension of the existing lease to ECOSLO will allow staff time to develop an analysis and appropriate recommendation for Council. If Council does not wish to consider this proposal further, Council may indicate so at this time and no additional consideration by Council will be required until reconsideration of the next lease extension to ECOSLO in June. A copy of the proposal from ECOSLO to transfer the operation of the recycling center to Rallco is attached. Concurrences: The City's Natural Resource Manager, who is now responsible for the contract relative to the City Grant to ECOSLO, has reviewed this report and concurs with the recommended actions. #'7 Council Agenda Repo z Title e dlkepoh gen, Report Page 5 Fiscal Impact: There is no, direct fiscal impact associated with the recommended action. Attachments: First Affiendingint to the,Lease of Real Property gCOSLO Recycfing_qenter - 1996 Report December 20, 1996 ECOSLO Proposal fdr Future!of 45 PfiddRoad Recycling Center #,5' FIRST AMENDMENT TO LEASE AGREEMENT The Lease Agreement dated February 1, 1996, between the City of San Luis Obispo and the Environmental Center of San Luis Obispo County, for the lease of City owned real property located at 45 Prado Road, San Luis Obispo, California, is hereby amended as follows: 1. The term of the lease stated in Section 2 of said lease will hereafter be determined in accordance with the following provisions: "The term of this lease agreement shall be for an extension of five (5) months and shall commence on February 1, 1997 and expire on July 1, 1997." All other terms, provisions and conditions of said lease remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their proper officers duly authorized. Dated CITY OF SAN LUIS OBISPO By: Mayor Allen K. Settle. Attest: City Clerk ENVIRONMENTAL CENTER OF SAN LUIS OBISPO COUNTY M ?97t6k ti Me --t-/ 11-4 ce! k 5/� r ENVIRONMENTAL CENTER OF SAN LUIS OBISPO COUNT' ECOSLO RECYCLING CENTER: 1996 REPORT Prepared for the City of San Luis Obispo by Geoffrey Land, Director Environmental Center of San Luis Obispo County December, 1996 Festive Summary This report covers operations and activities carried out under ECOSLO's lease agreement with the City of San Luis Obispo (Resolution No. 8487), in compliance with Section 14 of the lease agreement, which covers reporting requirements to allow the City to evaluate compliance with the provision of AB939. During 1996, ECOSLO's Recycling Center received and processed over 900 tons of recyclable materials, and majority of which originated within the City of San Luis Obispo. In addition, progress was made to improve management and site cleanliness at the Recycling Center. ECOSLO would also appreciate assistance dealing with the hazardous wastes left illegally at the Recycling Center. Introduction and Overview The Environmental Center of San Luis Obispo County (ECOSLO) is a membership, non -profit organization dedicated to protecting and enhancing the environmental quality of San Luis Obispo County. Since 1971, ECOSLO has leased (at no charge) the City's property located at 45 Prado Road for the purpose of operating a recycling and buyback center. Since that time, revenues generated from G G7/70,� 2- Environmental Center Mailing Address Recycling Center 967 Osos Street P.O. Box 1014 45 Prado Road Tel. 805/544 -1777 • Fax 805/544 -1871 San Luis Obispo, CA 93406 Tel. 8051781 -3199 - Fax 805/781 -3198 the recycling yard have provided support for environmental programs in San Luis Obispo. ECOSLO's commitment to the diversion of usable resources from the solid waste stream has meant accepting materials (such as plastics, cardboard, metals, and used motor oil) even when it was not profitable to do so. 1XIIIJ-1 • ys :r071 I Lei n a anr:_ P 0 In addition to managing its community Recycling Center, ECOSLO provides environmental education and outreach, networking and referral services, and program support for regional efforts to promote environmental sustainability. Revenues from the Recycling Center have provided funding support for time programs. Areas of focus have included open space preservation, composting, traffic calming, waste reduction, coastal resources protection, water conservation, creek ecology, and household hazardous waste solutions. During 1996, revenues from the recycling operations supported a number of environmental and community activities, including, but not limited to, the following: Community Education and Outreach ECOSLO's Director spoke on regional environmental issues to community groups (eg. SLO Executives Association, SLO Kiwanis, FUERZA Leadership Program, Spring Fest in Mission Plaza, SLO High School Assembly, SLO Chamber of Commerce Legislative Committee), and the Latino Outreach Council. ECOSLO's Director appeared on local radio programs (three times on KSBY, four times on KVEC's "At Issue," twice on Dave Congleton's KVEC show), and wrote opinion pieces for Telegram Tribune (nuclear waste disposal, support for environmental groups, methyl bromide, coastal protection and composting). Networldng, Partnerships and Referrals Services ECOSLO provided support for a range of community and environmental organizations in and around San Luis Obispo working to protect human health and the environment, among them the Terra Foundation (technical support for series of composting workshops), Cal Poly students and faculty (on issue of State Water Pipeline and destruction of Stenner Creek habitat), and the Nuclear Waste Information Committee (on issue of transportation of nuclear wastes from Diablo Canyon). ECOSLO developed strong partnerships with other non -profit organizations to raise public awareness about key environmental issues in the area, such as the League of Women Voters (SLO-City Council Candidates Forum), California Rural Legal Assistance (Methyl Bromide Forum), Nature Conservancy and Sierra Club (a county -wide Coastal Issues Summit), ADAPT (to realize a Teen Video Project for high school students on environmental issues), and the Earth Day Coalition of San Luis Obispo County (in support of Earth Day '96). �'d • Participation in Regional Decision - making on Environmental Issues ECOSLO participated in a number of committees and coalitions working to improve quality of life and protect the natural environment, such as the Open Space Financing Task Force, the ad hoc Downtown Alternative Transportation Study Task Force, the Nuclear Waste Management Task Force, the Friends of Measure O Committee, the Morros Committee (intermittently), and the SLO Creek Task Force (intermittently). ECOSLO's Director took part in the SLO Chamber of Commerce's Leadership Program, which helped build linkages ECOSLO and area groups and individuals. ECOSLO currently administers a city contract to promote environmental awareness and stewardship programs in San Luis Obispo, which involves the provision of other, more specific services related to the terms of the contract. ECOSLO's Recycling Center ECOSLO's Recycling Center is comprised on two principal components: a Donation Center and a Buyback Operation. The Recycling Center is licensed with the California Department of Conservation, Recycling Division. (ECOSLO's Community Recycling Program #0001 is the oldest in the state of California.) The Donation Center is a convenient 24 -hour drop -off area where the public can donate recyclable materials such as aluminum cans, glass, cardboard, plastic, tin cans, newspaper and tin foil. In November, 1996, ECOSLO ceased to accept magazines, junk mail and mixed paper through its Donation Center. Through our donation services, individuals not having curbside recycling pickup can divert their recyclables from the landfills. Also, those wishing to support ECOSLO can do so by dropping off their recyclable items at the drop -off location. The Buyback Operation involves the purchase of recyclable materials and California redemption items. ECOSLO pays cash for aluminum cans, PET plastic, and redemption glass. The hours for the Buyback Operation are 9am - 4pm, Tuesdays through Saturdays. ECOSLO's most recent lease agreement with the City extends from February 1, 1996 through January 31, 1997. For simplicity s sake, this report will cover the Recycling Center's activities from January through December, 1996. During this period, ECOSLO has enjoyed strong and constructive relations with the City, and we have made progress in addressing concerns that have previously been raised by City staff and Council. 3 � -9 B=ding Center Revenues and Assets During the first nine months of 1996, the difference between ECOSLO's total materials total materials sales (CRV, donation and metals) and our "cost of goods sold," or buyback total, was $101,000. The total for 1996 is expected to exceed $120,000. ECOSLO's 1996 operating costs for the yard operation are expected to total $90,000, resulting in net revenues of approximately $30,000. Those revenues are in turn "recycled" back into ECOSLO's programs and services, which serve to protect and enhance the natural environment through community- based problem - solving. ECOSLO's Recycling Center assets include one forklift, two down- stroke balers, one truck, one kiosk and cash register, two trailers, miscellaneous office equipment, two industrial scales and 40 metal storage bins, representing an estimated asset resale value of $19,000. As a result of years of used motor oil recycling and inadequate safeguards, ECOSLO was faced with oil- contaminated soil at two separate sites at its Recycling Center. ECOSLO stopped accepting used motor oil in August, 1995. During late 1995 and early 1996, approximately 120 yards of oil- tainted soil were excavated and treated onsite using bioremediation techniques (application of oil- eating microbes). A licensed geologist (Leo Fedewa) tested the soil and determined it to be clean and below the "action level" of 100 parts per million. In September, the soil was removed from the site. The total cost of the excavation, bioremediation and removal has exceeded $25,000, which has been bome entirely by ECOSLO. Operational Improvements r Despite difficult financial circumstances, ECOSLO has worked during 1996 to upgrade and improve the operations at the Recycling Center. Since February, new management staff has been committed to running a safe, clean, attractive and efficient recycling. operation at 45 Prado Road. The elimination of the Rock Solid curbside operation has given way to a simpler, cleaner buyback and donation operation. As a result, there has been less wind -borne debris blowing 4 /f% /0 offsite and an overall more attractive Recycling Center. We continue to work with the City to investigate options for site improvement. Materials Volumes During 1996, ECOSLO received and processed approximately 935 tons of recyclable materials through its Recycling Center at Prado Road. (See Table A, below.) ECOSLO's Buyback Operation accounts for the vast majority of materials received and processed at the Recycling Center. ECOSLO's Recycling Center processes aluminum cans, glass bottles, plastic, mixed paper, newspaper, cardboard, and a limited number of scrap metals. By tonnage, glass and cardboard represent the highest volume materials. (See Table B, below.) Recently, ECOSLO has moved to limit the donation of certain types of materials (polystyrene, magazines, junk mail, #3 -7 plastic) that represent a financial burden for the recycling operation. We are recommending that these materials be recycled through curbside service. . Table A: Total Tonnage (Buyback and Donation Combined) Month Tonnage January 87.4 February 73.2 March 80.3 April 75.8 May 77.1 June 82.4 July 81.7 August 77.5 September 71.9 October 79.1 November 75.2 December 73.4" Total 19% 935 (continued) P *estimated <f -l/ Table B: 1996 Materials Volumes (by material) Material Volume (tons) Polystyrene 1 Mixed Paper 35 Glass 358 Aluminum 94 Plastic 17 Newspaper 154 Cardboard 244 Scrap Metal 32 Greenwaste* U All materials am *Greenwaste was phased out with the Rock Solid curbside recycling operation m Morro Bay. Materials Origins The majority of the materials of materials processed at ECOSLO's Recycling Center originate within the City of San Luis Obispo. Two informal surveys conducted in April and August revealed that 89% of the material processed through ECOSLO's Buyback Operation has its origin within the City of San Luis Obispo. The other 11% originates elsewhere in San Luis Obispo County (unincorporated areas around San Luis Obispo, 5 %; Morro Bay, 1 %; Arroyo Grande, 1 %; Pismo Beach, 1 %; other, north county, 2 %; other, south county, 1 %). Similarly, the majority of materials received. through the Donation Center come from the City of San Luis Obispo. Although no formal survey has been conducted, we have observed that a larger percentage of the donation items (perhaps as much as 25 %) come from unincorporated areas outside the City limits in areas that do not have established curbside recycling services. ECOSLO manages all hazardous materials in accordance with its Safety and Handling Plan for Hazardous Materials (as defined by Federal and State Law) and its 0 # -/X Hazard Communication Program as part of our Injury Illness Prevention Program (IIPP) approved by Cal/OSHA. Section 11 of the lease agreement states that "Lessee shall be solely responsible for the proper storage and disposal of any hazardous waste received or produced as a result of Lessee's operations." Since we stopped accepting used motor oil in August, 1995, ECOSLO has posted several signs indicating that it is unlawful to leave motor oil, paint, batteries, and other hazardous wastes at our Recycling Center. Nevertheless, we continue to receive small quantities of hazardous materials at our donation area. We have established a small, covered, interim storage area for hazardous materials dropped illegally at our recycling yard. On two occasions we have scheduled haz -waste pick ups with the Integrated Waste Management Authority. ECOSLO would appreciate any assistance from the City in order to facilitate the timely and proper disposal of the hazardous materials left at our facility. In November, 1996, ECOSLO made the decision to consolidate our administrative operations at the Recycling Center location as part of an ongoing effort to improve and streamline the organization during difficult financial times. The decision was communicated to City staff in two letters of correspondence (attached, dated October 3 and October 15), and ECOSLO discussed the plans with City staff (John Moss, Ken Hampion, Neil Havlik and Judith Lautner) beforehand and found the move to be compatible with our lease agreement with the City. ECOSLO has taken steps to address the contractual implications of the consolidation (primarily the loss of a downtown presence) by expanding our outreach activities in the City's downtown area (i.e. regular presence at Farmer's Market, regular participation in community events, and development of an information rack at the downtown City-County Library). ECOSLO has worked to ensure that our recycling operations in no way VA # -/3 interfere with traffic on Prado Road or the Water Reclamation Facility access road. All of our on and off - loading takes place within the property boundaries, and all ECOSLO equipment is kept on site as well. We continue to work towards a point where we can ensure that employee vehicles can be parked within the boundaries of the property. Significant progress has been made to control materials received and processed at our recycling facility. We have moved all of our donation bins inside the fence line, and limited the number of paper and plastic we accept in the donation area. Same day processing practices (when possible) have greatly reduced off -site migration of plastics, paper and other wind -blown debris. I/— /I/ December 20, 1996 To: Ken Hampian, Assistant CAO John Moss, Utilities Director City of San Luis Obispo e 4� k5lx ENVIRONMENTAL CENTER OF SAN LUIS OBISPO COUNT`" From: Geoffrey Land, Executive Director Frank Seiple, Chair, ECOSLO Board of Trustees Re: Proposal for Future of 45 Prado Road Recycling Center On behalf of the Environmental Center of San Luis Obispo County ( ECOSLO), we would like to present to you a proposal for future recycling operations at the City's property located at 45 Prado Road which would, we believe, benefit ECOSLO, the City and the residents of San Luis Obispo. We would request that this proposal be placed on the Council's agenda for the meeting of January 21, 1997, the date slated for consideration of ECOSLO's lease agreement. Background and Context Since 1971, ECOSLO has leased at no charge the City's property located at 45 Prado Road for the purpose of operating a recycling and buyback center. ECOSLO was the first recycling operation in the county and the first certified Community Recycling Program in California. The waived lease charges have reflected the City's recognition that revenues generated from ECOSLO's recycling operations provide support for community environmental programs in San Luis Obispo, such as free public forums, newsletters, lectures, workshops, conservation projects and educational outreach programs. (For a more detailed description of ECOSLO's programs and services, please see Statement of Purpose, attached.) The Recycling Center has been more than a business to ECOSLO: our commitment to the diversion of usable resources from the solid waste stream has meant accepting materials (such as plastics, cardboard, metals, and used motor oil) even when it was costly or not profitable to do so. (For example, a recent clean-up of oil tainted soil resulted in costs exceeding $25,000, all of which were borne by ECOSLO.) A 24 -hour Donation Center has allowed for the diversion of materials from unincorporated areas of the county without curbside recycling services. During its Environmental Center 967 Osos Street Tel. 805/544 -1777 • Fax 805/544 -1871 Mailing Address P.O. Box 1014 San Luis Obispo, CA 93406 Recycling Center 45 Prado Road Tel. 805(181 -3199 • Fax 805/781-3198 2 25 year history at the Prado Road site, ECOSLO has built up a strong and loyal customer base, as evidenced by the proliferation of the "I Recycle with ECOSLO" bumper- stickers, as well as the steady customer traffic at the yard, which averages over one thousand customers every month. Since 1971, in no small part owing to ECOSLO's educational efforts, recycling has taken firm hold in San Luis Obispo County. There are a dozen or so buyback centers throughout the county which pay the public cash for recyclable materials. For -profit companies compete for recycling contracts in virtually every city in the county. An Integrated Waste Management Authority oversees the county's solid waste diversion programs, sponsoring hazardous waste collection events and classroom -based education programs throughout the county. In San Luis Obispo, residents benefit from a municipal curbside recycling operation which picks up most kinds of recyclables and yard waste. The Value of the Prado Road Recycling Center We believe the ECOSLO Recycling Center provides a range of benefits to the community, the environment and the City of San Luis Obispo. Continued diversion of recyclables through the center supports the City's diversion requirements under A13939, which requires that the City achieve 50% reduction in its solid waste flow (baseline 1990) by the year 2000. The Prado Road Recycling Center continues to enjoy strong support from thousands of regular customers, despite the virtual absence of formal advertising. During 1996, the Center diverted approximately 935 tons of reusable materials from area landfills, helping satisfy the City's solid waste diversion efforts. (Please see the ECOSLO Recycling Center 1996 Report, attached.) Each year our buyback operation pays out approximately $300,000 to our customers, the vast majority (89%) of which are residents of San Luis Obispo, who return their revenues into the local economy. All of ECOSLO's employees are residents of San Luis Obispo, and their wages are recycled back into local businesses. In addition, each month over 500 hours of community service work hours are contributed to the City's recycling goals at ECOSLO's Recycling Center. Community services workers complete their community service obligations with a better understanding of the importance of recycling. The Recycling Center supports the City's educational goals by responding to hundreds of phone calls every week concerning recycling and #.14 3 environmental matters. Rye ycling Venter Revenues and Assets Fully licensed with the California Department of Conservation, ECOSLO's Recycling Center is comprised of two principal components: a Donation Center and a Buyback Operation. The Buyback Operation, which involves the purchase of recyclable materials and California redemption (CRV) items, accounts for the vast majority of materials received and processed at the Recycling Center. During the first nine months of 1996, the difference between ECOSLO's total materials total materials sales (CRV, donation and metals) and our "cost of goods sold," or buyback total, was $101,000. The total for 1996 is expected to exceed $120,000. ECOSLO's 1996 operating costs for the yard operation are expected to total $90,000, resulting in net revenues.of approximately $30,000. Those revenues are in turn "recycled" back into ECOSLO's programs and services, which serve to protect and enhance the natural environment through community -based problem - solving. (Please refer to the ECOSLO Recycling Center 1996 Report, attached, .page 2, for a more detailed description of the services supported by yard revenues.) ECOSLO's Recycling Center assets include one forklift, two down - stroke balers, one truck, one kiosk and cash register, two trailers, miscellaneous office equipment, two industrial scales and 40 metal storage bins, representing an estimated asset resale value of $19,000. ECOSLO's Plans for the Future In January, 1996, ECOSLO received unanimous support from the City Council for its current lease agreement with the City, which extends through January, 1997. ECOSLO has honored the lease agreement and made significant progress in addressing prior concerns about yard management. The oil spill was cleaned up, the yard is cleaner, and a number of operational improvements have been adopted. (Please refer to 1996 Report, attached, for specifics.) ECOSLO is proud of the role we have played in support of the city and county's recycling initiatives. During recent years, however, increased competition in the recycling industry has meant tighter profit margins for the materials handling through our yard. More recently, a costly oil spill and declining resale prices for materials have cut deeply into the yard's already limited # -/7 4 revenues. While still producing revenues, ECOSLO's recycling operations have required a greater degree of supervision and oversight. Given ECOSLO's principal mission of community education and environmental advocacy, it is increasingly clear that there are significant opportunity costs to running the Recycling Center. We feel that ECOSLO would be even more effective as a regional resource center if it dedicated its energies toward environmental education, community outreach and advocacy. ECOSLO is willing and able to continue operating _its Recycl ne Center. However, we would first offer the options outlined below for the City's consideration. We believe these proposals will benefit ECOSLO, the City and residents of San Luis Obispo, maintain continuity in the recycling operations, and sustain the good will and community support associated with the Prado Road Recycling Center. If the City is unable to approve these proposals, we would ask that the City move to grant ECOSLO a five -year lease for the Prado Road property, in order for us to justify certain key yard improvement expenditures, such as fence improvements, improved office conditions, rain protection measures, and a new forklift. ECOSLO's Proposal for Management Changes ECOSLO would propose that the City approve a change in management of the Recycling Center at 45 Prado Road from ECOSLO to a for -profit company with proven experience managing buyback operations. We ask that the City approve a new lease for the 45 Prado Road property, with the successor company, commencing on February 1, 1997 (the day following the end of ECOSLO's current lease agreement) and terminating on January 31, 2002 (for a total of five years), with a rent of $500 /month. The approval of a five year lease is necessary to provide a degree of certainty for the new lessee, ensuring that the company cover its start-up costs and allowing it to recoup its initial investment in site improvements. ECOSLO proposes that the City charge $500 /month under the new lease agreement, to ensure lease revenues for the City while supporting the continued use of the site for recycling services. In order to assess a variety of options, ECOSLO approached several recycling companies about the possibility of assuming management of the yard. Two companies, RALCCO and San Luis Garbage Co., have put forth tentative offers to ECOSLO for the recycling operation which 5 are consistent with the scenario outlined above. Naturally, these offers are contingent upon City approval. (See more detailed description of offers, below.) Each company has offered ECOSLO financial compensation for tangible yard assets, as well as the intangible "good will" value of the recycling operation. (See offers, outlined below.) Both RALCCO and San Luis Garbage Co. are well established companies with proven track records of success managing buyback recycling . operations. San Luis Garbage Offer Tentative Offer: 18,000 up front for assets and "good will" + 10% of net revenues for first two years Conditions/ Assumptions: City approval of 5 year lease for 45 Prado Rd. property @$500 /mo. Offer would only include buyback kiosk and scales RALCCO Offer (See attachment for more details) Tentative Offer: $35,000 for assets and "good will" over 12 months Conditions/ Assumptions: City approval of 5 year lease for 45 Prado Rd. property @$500 /mo. Offer includes all yard assets It should be noted that these offers, while made in good faith, are not set in stone, and subject to ongoing discussions among the various interests represented. Should the approve this proposal, ECOSLO would enter into more formal discussions regarding compensation for ECOSLO's ongoing concern. Advantages of a Change in Management ECOSLO is willing and able to continue its recycling operation in an efficient, clean and safe manner. However, our proposal for a change. in Recycling Center management offers several mutual benefits for ECOSLO, the City, and the residents of San Luis Obispo. Itwould provide the City with lease revenues ($30,000 under the proposed option) that it does not receive currently for the Prado Road site. It would encourage the diversion of usable materials from the landfills, provide a valuable service to citizens who seek cash for their recyclables, and maintain continity in the existing operations. Yard management by RALCCO or SLO Garbage would improve overall site cleanliness and appearance for the following reasons: 1) donation/drop -off services, which account for much of the off -site debris, would be eliminated; 2) on -site processing would be greatly reduced or eliminated, in favor of processing at 'home facilities' better equipped for the purpose; and 3) site improvements would augment paving and fencing at the site. Finally, the change would allow for ECOSLO to concentrate its efforts on other means of generating program revenues, and channel its energies into environmental education and advocacy services. Conclusion For the past 25 years, the City of San Luis Obispo has recognized the value of ECOSLO's tenancy on the Prado Road site and the reinvestment of recycling revenues to promote responsible stewardship of the community's valuable natural resources. The city's "rent subsidy" has been returned to the community in the form of educational services, support for a network of community -based non -profit groups, sponsorship of free community events, establishment of used oil recycling centers, heightened public awareness about solid waste diversion goals, and many other services. In this way, the 25 -year partnership between ECOSLO and the City has mutually benefitted ECOSLO, the City and the community at large. We believe there is a benefit to the City, as there has been over the years, in ECOSLO's continuing operations as a community -based environmental education and advocacy organization. The current assets of our Recycling Center are both tangible (equipment, vehicles, etc.) and intangible ( "good will," customers, etc.). ECOSLO has dedicated the past 25 years to building community good will and a loyal customer base at our Recycling Center. The conversion of our Recycling Center assets —both tangible and intangible —will allow ECOSLO to continue our services to the community while focusing on education, outreach and environmental advocacy. Continued recycling operations under this proposal at 45 Prado Road will provide the city with continued diversion of materials from the landfill, as well as potential rental income. Our recommendation that the City establish a five -year lease with a successor business at a rent of $500 per month will permit the successor company to recoup the costs of its initial investment and necessary site improvements. Past discussions at the staff and Council have included the idea that the Prado Road site #.- OW could be offered to the "highest bidder" for recycling operations. The question this raises is: what is being put out for bid? For example, if the City were to terminate ECOSLO's lease -- requiring us to vacate the property and remove our materials and equipment —and then advertise the site to for- profit entities, ECOSLO could. not compete with for - profits offering rent, since we return our "rent" back to the community through our programs and services. Such a bidding situation would exclude ECOSLO from participation in the management transfer process. It would also deprive ECOSLO of the opportunity to recoup the good will asset value of our business, built and nurtured by committed staff and volunteer corps over the past 25 years. On the other hand, our proposal for the preservation of the yard operation as a going concern, with a transfer in management, maximizes the value of the assets for both the City and ECOSLO. In this way, a consensual management transfer will ensure continuity in the site's recycling services, and maintain the community good will which is essential to the future value of the recycling operations. Thank you for your consideration of this proposed course of action. We would welcome the opportunity to work with the City toward a solution that preserves the strong partnership between ECOSLO and the City of San Luis Obispo. Sincerely, Geoffrey Land / Fr Seigle - Executive Director Chjdr, Board of Trustees cc: Neil Havlik, Natural Resources attached: ECOSLO Statement of Purpose 1996 Recycling Center Report Letters to City regarding office consolidation RALCCO outline of plans for recycling operations 51r ENVIRONMENTAL CENTER OF OVERVIEW SAN LUIS OBISPO COUNTY STATEMENT OF PURPOSE The Environmental Center of San Luis Obispo County ( ECOSLO) is a non- profit [501(c)(3)], membership organization dedicated to environmental education, problem solving and advocacy. ECOSLO serves as a community resource center working to strengthen collaborative initiatives intended to protect human health and the environment throughout the Central Coast region. ECOSLO works closely with environmental organizations, government and community groups to promote regional sustainability and innovative approaches to resource management. ECOSLO's primary areas of attention are coastal resources protection; progressive waste management/recycling options; watershed, habitat and open space protection; pollution prevention and cleanup; sustainable development and land use; altemative transportation; and environmental education. As a regional resource center, ECOSLO actively supports dozens of groups, individuals and projects working on a daily basis to promote sustainable solutions to the problems of pesticide use, nuclear waste, coastal access, creek restoration, toxic waste, offshore oil development and onshore oil spills, water use, and development sprawl. Founded in 1971 and currently celebrating its 25th anniversary, ECOSLO has grown from being a volunteer -run recycling center to being the county's only non -profit environmental resource and recycling center. ECOSLO operates the county's longest running and only non -profit Recycling Center (45 Prado Road in San Luis Obispo), which helps divert usable materials from the waste stream while returning revenues to the community in the form of environmental programs and services. ECOSLO CURRENTLY PROVIDES THE FOLLOWING SERVICES TO THE COMMUNITIES OF SAN LUIS OBISPO COUNTY: • a downtown, walk -in Environmental Center office which offers information on current projects, issues, plus a lending library of books, and videos • a Recycling Center whose revenues are used to support ECOSLO's environmental services and programs • informed advocacy and practical problem solving to support responsible land use planning, pollution cleanup, toxic use reduction, solid waste diversion, and sustainable development in San Luis Obispo County and the Central Coast region • referral, networking and information services for dozens of active, communit"ased environmental groups in San Luis Obispo County • a toll free Recycling and Household Hazardous Waste Hotline • regular public forums, presentations, workshops and conferences to educate and involve the community concerning key environmental topics Environmental Center trailing Address Recycling Center I&ENosstimt J [ ay M" (kVz VI f}_ P.O. Box 1014' 45 Prado Road Tel. 805/544 -1777 • Fax 905/544 -1871 San I.uk Obispo. CA 93406 Tel. R05f781 -3199 • Fax 805/781 -3198 ECOSLO Statement of P se April 1996 AMONG ECOSLO'S MOST NOTEWORTHY PAST ACHIEVEMENTS ARE: • pioneered progressive recycling practices in San Luis Obispo County by establishing the county's first recycling center, spearheading used motor recycling, promoting curbside recycling, publishing recycled products guides, and school outreach programs (1971 to present) • played a key role in promoting transportation alternatives for San Luis Obispo City and County, resulting in expanded bus systems, bike lanes and carpooling incentives (1970's -1994) • leadership role in grassroots campaigns to protect the Central Coast from offshore oil production activities, ensure cleanup of oil spills, and promote the establishment of a Central Coast National Marine Sanctuary (1985 to present) • development and implementation of an innovative, community —based curbside recycling program in Morro Bay (1993 -95) ECOSLO possesses an extremely devoted staff and a diverse and active Board of Trustees. ECOSLO has made an effort to recruit to its staff and board women and people of color, who presently constitute 3/4 of ECOSLO's staff. ECOSLO works closely with the City of San Luis Obispo to broaden public awareness about, and stewardship for, the natural environment in and around San Luis Obispo. ECOSLO provides advisory and support services to the City on a range of environmental programs, such as protection of San Luis Obispo Creek, establishment of a Greenbelt around the City, annexations, and other natural resource issues. OTHER CONTRACTUAL SERVICES PROVIDED By ECOSLO ARE ... t • promotion of residential and business participation in curbside recycling in Morro Bay • coordination of a series of backyard composting workshops to educate the public about green waste recycling systems (in partnership with the regional waste management authority and the Terra Foundation) • management of the county's first on —line materials exchange for construction and demolition materials (in partnership with the regional waste management authority and Steven McGrath Associates) Recently, ECOSLO has been working to expand its outreach and educational initiatives to promote sustainable alternatives to pesticides, especially methyl bromide, an acutely toxic chemical used widely in strawberry production. ECOSLO is developing an informal pesticide /sustainable agriculture network and actively strengthening our links to the Latino community. ECOSLO currently provides support for a Summer 1996 environmental "Teen Video" project for at—risk high school students. -J.5 3 U ECOSLO Statement of P se April 1996 3 ECOSLO is represented on the Morros Committee, established to develop a management plan for the Morros chain of volcanic peaks stretching from San Luis Obispo to Morro Bay, and the Open Space Financing Task Force of the City of San Luis Obispo. ECOSLO relies on membership support, service contracts, small grants, and Recycling. Center revenues to cover its operational costs. ECOSLO has never deceived funding support from private foundations. We welcome membership support, financial contributions, volunteer and In —kind support. All contributions are tax deductible. ECOSLO is managed by an Executive Director and a paid staff of 12 employees, the majority of which operate the Recycling Center. ECOSLO is governed by its Board of Trustees. For more information contact Geoffrey Land (Director) or Amy Shore (Environmental Services Coordinator) @ (805) 544 -1777 (tel) and 544 -1871 (fax). ECOSLO's environmental. center and business office is located at 1124 Nlpomo Street, Suite A, In downtown San Luis Obispo. Our office hours are 10am - 4pm, Monday through Friday. ECOSLO's e—mail address is ecoslo @slonet.org. t n 4 5/4 r ENVIRONMENTAL CENTER OF SAN LUIS OBISPO COUNTY ECOSLO RECYCLING CENTER: 1996 REPORT Prepared for the City of San Luis Obispo by Geoffrey. Land, Director Environmental Center of San Luis Obispo County December, 1996 Execrative Summon 71» s report covers operations and activities carried out corder ECOSLO's lease agreement with the City of San Luis Obispo (Resolution No. 8487), in compliance with Section 14 of the lease agmement, which covers reporting requirements to allow the City to evaluate compliance with the provision of I AB939. During 1996, ECOSLO's Recycling Center received ayrd processed over 900 foes of recyclable materials, and majority of which originated within the City (?f San Luis Obispo. hr addition, progress was made to improve management aid site cleanliness at the Recycling Center. ECOSLO would also appreciate assistance dealing it the hazardorts wastes left illegally at tl?e Recjrh»g Cemer. Introduction nnd Overvi The Environmental Center of San Luis Obispo County (ECOSLO) is a membership, non -profit organization dedicated to protecting and enhancing the environmental quality of San Luis Obispo County. Since 1971, ECOSLO has leased (at no charge) the City's property located at 45 Prado Road for the purpose of operating a recycling and buyback center. Since that time, revenues generated from ironmental Center Osos Street RI15 /544.1777 • Fax R11.5/514- IR71 — Plaiting Address P.O. Rns TO 14 San I.ni.c (lbign). CA 43406 Recycling Center 45 Prado Road �– a TO. 9051781 -3199 • Fox 805/781 -3198 the recycling yard have provided support for environmental programs in San Luis Obispo. ECOSLO'Iv commitment to the diversion of usable resources from the solid waste stream has meant accepting materials (such as plastics, cardboard, metals, and used motor oil) even when it was not profifable to do so. In addition to managing its community Recycling Center, ECOSLO -provides environmental education and outreach, networking and referral services, and program support for regional efforts to. Promote environmental sustainability. Revenues from the Recycling Centet have provided flurding support for these programs. Areas of focus have included open space preservation, composting, traffic calming, waste reduction, coastal resources protection, water conservation, creek ecology, and household hazardous waste solutions. During 1996, revenues from the recycling operations supported a number of environmental and community activities, including, but not limited to, the following. • Community Education and Outreach ECOSLO's Director spoke on regional environmental issues to community groups (eg. SLO Executives Association, SLO Kiwanis, FUERZA Leadership Program, Spring Fest in Mission Plaza; SLO High School Assembly, SLO Chamber of Commerce Legislative Committee), and the Latino Outreach Council. ECOSLO's Director appeared on local radio programs (three times on KSBY, four times on KVEC's "At Issue," twice on Dave Congleton's KVEC show), and wrote opinion pieces for Telegram Tribune (nuclear waste disposal, support for environmental groups, methyl t t bromide, coastal protection and composting). • Networking, Partnerships and Referrals Services ECOSLO provided support for a range of community and environmental organizations . in and around San Luis Obispo working to protect human health and the environment; among them the Terra Foundation (technical support for series of composting workshops), Cal Poly students and faculty (on issue of State Water Pipeline And destruction of Stenner Creek habitat), and the Nuclear Waste Information Committee (on issue of transportation of nuclear wastes from Diablo Canyon). ECOSLO developed strong partnerships with other non -profit organizations to raise public awareness about key environmental issues in the area, such as the League of Women Voters (SLO City Council Candidates Forum), California Rural Legal Assistance (Methyl Bromide Forum), Nature Conservancy and Sierra Club (a county -wide Coastal Issues Summit), ADAPT (to realize a Teen Video Project for high school students on environmental issues), and the Earth Day Coalition of San Luis Obispo County (in . support of Earth Day '96). • Participation in Regional Decision - making on Environmental Issues ECOSLO participated in a number of committees and coalitions working to improve quality of life and protect the natural environment, such as the Open Space Financing Task Force, the ad hoc Downtown Altemative Transportation Study Task Force, the Nuclear Waste Management Task Force, the Friends of Measure O Committee, the " Morros Committee (intermittently), and the SLO Creek Task Force (intermittently). ECOSLO's Director took part in the SLO Chamber of Commerce's Leadership Program, which helped build linkages ECOSLO and area groups and individuals. ECOSLO currently administers a city contract to promote environmental awsireness and stewardship programs in San Luis Obispo, which involves the provision of other, more specific services related to the terms of the contract. ECOSLO's Recycling Center ECOSLO's Recycling Center is comprised on two principal components: a Donation Center and a Buyback Operation. The Recycling Center is licensed with the California Department of Conservation, Recycling Division. (ECOSLO's Community Recycling Program I #0001 is the oldest in the state of California.) The Donation Center is a convenient 24 -hour drop -off area where the public can donate recyclable materials such as aluminum cans, glass, cardboard, plastic, tin cans, newspaper and tin foil. In November, 1996, ECOSLO ceased to accept magazines, junk mail and mixed paper through its Donation Center. Through our donation services, individuals not having curbside recycling pickup can divert their recyclables from the landfills. Also, those wishing to support ; ECOSLO can do so by dropping off their recyclable items at the drop -off location. The Buyback Operation involves the purchase of recyclable materials and California redemption items. ECOSLO pays cash for aluminum cans, PET plastic, and redemption glass. The hours for the Buyback Operation are 9am - 4pm, Tuesdays through Saturdays. ECOSLO's most recent lease agreement with the City extends from February 1, 1996 through January 31, 1997. For simplicity's sake, this report will cover the Recycling Center's activities from January through December, 1996. During this period, ECOSLO has enjoyed strong and constructive relations with the City, and we have made progress in addressing concerns that have previously been raised by City staff and Council. 3 ./'s? Recycling Center Revenues and Assets During the first nine months of 1996, the difference between ECOSLO's total materials total materials sales (CRV, donation and metals) and our "cost of goods sold," or buyback total, was $101,000. The total for .1996 is expected to exceed $120,000. ECOSLO's 1996 operating costs for the yard operation are expected to total $90,000, resulting in net revenues of approximately $30,000. Those revenues are in turn "recycled" back into ECOSLO's programs and services, which serve to protect and enhance the natural environment through community- based problem - solving. ECOSLO's Recycling Center assets include one forklift, two down - stroke balers, one truck, one kiosk and cash register, two trailers, miscellaneous office equipment, two industrial scales and 40 metal storage bins, representing an estimated asset resale value of $19,000. 1 911 Spill Clean up As a result of years of used motor oil recycling and inadequate safeguards, ECOSLO was faced with oil - contaminated soil at two separate sites at its Recycling Center. ECOSLO stopped accepting used motor oil in August, 1995. During late 1995 and early 1996, approximately 120 yards of oil- tainted soil were excavated and treated onsite using bioremediation techniques (application of oil- eating microbes). A licensed geologist (Leo Fedewa) tested the soil and determined it to be clean and below the "action level" of 100 parts per million. In September, the soil was removed from the site. The total cost of the excavation, bioremediation and removal has exceeded $25,000, which has been borne entirely by ECOSLO. OoerationalImprovements Despite difficult financial circumstances, ECOSLO has worked during 1996 to upgrade and improve the operations at the Recycling Center. Since February, new management staff has been committed to running a safe, clean, attractive and efficient recycling operation at 45 Prado Road. The elimination of the Rock Solid curbside operation has given way to a simpler, cleaner buyback and donation operation. As a result, there has been less wind -borne debris blowing CM 00 offsite and an overall more attractive Recycling Center. We continue to work with the City to investigate options for site improvement. Materials Volumes During 1996, ECOSLO received and processed approximately 935 tons of recyclable materials through its Recycling Center at Prado Road. (See Table A, below.) ECOSLO's Buyback Operation accounts for the vast majority of materials received and processed at the Recycling Center. ECOSLO's Recycling Center processes aluminum cans, glass bottles, plastic, mixed paper, . newspaper, cardboard, and a limited number of scrap metals. By tonnage, glass and cardboard represent the highest volume materials. (See Table B, below.) Recently, ECOSLO has moved to limit the donation of certain types of materials (polystyrene, magazines, junk mail, #3-7 plastic) that represent a financial burden for the recycling operation. We are recommending that thest materials be recycled through curbside service. Table A: Total Tonnage (Buyback and Donation Combined) Month Tonnage January 87.4 February _ 73.2 March 80.3 - t t April 75.8 May 77.1 June 82.4 July 81.7 August 77.5 September 71.9 October 79.1 November 75.2 December 73.4" Total 1996 935 *estimated (continued) 5 Table B: 1996 Materials Volumes (by material) Material Volume (tons) Polystyrene 1 Mixed Paper 35 Glass 358 Aluminum 94 Plastic 17 Newspaper 154 Cardboard 244 Scrap Metal 32 Greenwaste" 0 All materials 935 *Greenwaste was phased out with the Rock Solid curbside recycling operation in Morro Bay. Materials Origins The majority of the materials of materials processed at ECOSLO's Recycling Center originate within the City of San Luis Obispo. Two informal surveys conducted in April and August revealed that 89% of the material processed through ECOSLO's Buyback Operation has its origin within the City of San Luis Obispo. The other 11% t toriginates elsewhere in San Luis Obispo County (unincorporated areas around San Luis Obispo, 5 %; Morro Bay, 1 %, Arroyo Grande, 1 %; Pismo Beach, 1 %; other, north county, 2 %; other, south county, 1%). Similarly, the majority of materials received through the Donation Center come from the City of San Luis Obispo. Although no formal survey has been conducted, we have observed that a larger percentage of the donation items (perhaps as much as 25 %) come from unincorporated areas outside the City limits in areas that do not have established curbside recycling services. Hazardous Materials ECOSLO manages all hazardous materials in accordance with its Safety and Handling Plan for Hazardous Materials (as defined by Federal and State Law) and its R, 11-30 Hazard Communication Program as part of our Injury Illness Prevention Program (IIPP) approved by Cal /OSHA. Section 1 I of the lease agreement states that "Lessee shall be solely responsible for the proper storage and disposal of any hazardous waste received or produced as a result of Lessee's operations." Since we stopped accepting used motor oil in August, 1995, ECOSLO has posted several sighs indicating that it is unlawful to leave motor oil, paint, batteries, and other hazardous wastes at our Recycling Center. Nevertheless, we continue to receive small quantities of hazardous materials at our donation area. We have established a small, covered, interim storage area for hazardous materials dropped illegally at our recycling yard. On two occasions we have scheduled haz -waste pick ups with the Integrated Waste Management Authority. ECOSLO would appreciate arry assistance from the City in order to facilitate the timely and proper disposal of the hazardous materials IeR at our facility. Mice Consolidation In November, 1996, ECOSLO made the decision to consolidate our administrative operations at the Recycling Center location as part of an ongoing effort to improve and streamline the organization during difficult financial times. The decision was communicated to City staff in two letters of correspondence (attached, dated t October 3 and October 15), and ECOSLO discussed the plans with City staff (John Moss, Ken Hampion, Neil Havlik and Judith Lautner) beforehand and found the move to be compatible with our lease agreement with the City. ECOSLO has taken steps to address the contractual implications of the consolidation (primgrily.the loss of a downtown presence) by expanding our outreach activities in the City's downtown area (i.e. regular presence at Farmer's Market, regular participation in community events, and development of an information rack at the downtown City- County Library). Traffic and Litter Control ECOSLO has worked to ensure that our recycling operations in no way 7 r3 / t.t interfere with traffic on Prado Road or the Water Reclamatioh Facility access road. All of our on and off - loading takes place within the property boundaries, and all. ECOSLO equipment is kept on site as well. We continue to work towards a point where we can ensure that employee vehicles can be parked within the boundaries of the property. Significant progress has been made to control materials received and processed at our recycling facility. We have moved all of our donation bins inside the fence line, and limited the number of paper and plastic we accept in the donation area. Same day processing practices (when possible) have greatly reduced off -site migration of plastics, paper and other wind -blown debris. 8 y 3� ■ M1 ADDRESS: P.O. DRAWER 1110 NIPOMO, CALIFORNIA 93444 • PLANTS: HIGHWAY 1 & 801 RALCOA WAY NIPOMO, CALIFORNIA 93444 1291 MESA VIEW DRIVE ARROYO GRANDE, CALIFORNIA 9342' • PHONE: (805) 343 -2289 RETURNING TO A RESOURCEFUL AMERICA ■ FAR: (805) 343 -5515 Proposal for Operation of a Recycling Buy -back Center at 45 Prado Rd., San Luis Obispo RALCCO is a locally owned and operated recycling firm committed to the maximum possible collection of materials for diversion from the landfill. RALCCO has been recycling on the Central Coast for over twenty years, and currently operates buy back centers in Cambria, Morro Bay, Lompoc, Santa Ynez and Nipomo. RALCCO proposes, with the cooperation of the City and ECOSLO, to continue operation of the buy back center at the above location. RALCCO requests a five year lease, at $500 per month rental, with a five year option to renew. Immediately, RALCCO will provide new fencing around the property. The fence will be a six foot wooden (cedar) fence providing immediate visual mitigation and improving the look of the property. Additionally, RALCCO will provide paving for those portions of the site requiring improvement. All employee parking will be within the confines of the site. The property will be reorganized to allow for more efficient movement of clients. Vehicles will arrive and leave by different gates, stopping at one of three weigh stations for unloading of recyclables. Customers will be paid cash at the time of reimbursement. Yard staff will use laptop computers for tracking of purchases and disbursements, communicating by modem with RALCCO's administrative office in Nipomo. The Center will: • Employ two to five people full time • Be open from 8:00am - 4:30pm Monday through Friday, 8:00am - 4:00pm on Saturday • Will buy all redemption materials • Will accept other materials of value • Will not allow materials to accumulate on -site outside of closed containers. • Provide a location for the dissemination of recycling education literature. At the request of the city, RALCCO will pursue grant funding to allow for the collection of used motor oil at this location. We are aware of the problems inherent in the collection of hazardous materials, and have successfully operated oil recycling collection centers and curbside collection with no leaks, spills or other contamination.