Committee on Streets and Services June 5, 2019 Page 1 COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON STREETS AND SERVICES Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 5, 2019 10:45 a.m. PRESENT: COUNCILMAN MARK SQUILLA, CHAIR COUNCILWOMAN CINDY BASS COUNCILMAN WILLIAM K. GREENLEE COUNCILMAN KENYATTA JOHNSON COUNCILMAN CURTIS JONES, JR. COUNCILMAN DAVID OH COUNCILWOMAN MARIA D. QUINONES-SANCHEZ BILLS 181004, 190098, 190119, 190185, 190211, 190252, 190287, 190288, 190289, 190304, 190307, 190309, 190320, 190321, 190354, 190355, 190363, 190364, 190365, 190379, 190381, 190405, 190410, 190411, 190413, 190434, 190445, 190449, 190450, 190452, 190453, 190456, 190457, 190458, 190462, 190463, 190464, 190465, 190466, 190467, 190468, and 190469 RESOLUTION 190423 - - - STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 116 1 6/5/19 - STREETS - BILL 181004, ETC. 2 traffic calming for all roadway users. 3 There is demonstrated support 4 for this project from the Franklin Bridge 5 North Neighborhood Association. The 6 project is expected to be completed in 7 2020. The Office of Transportation, 8 Infrastructure and Sustainability 9 coordinated on this bill with the Streets 10 Department, who have no objections to the 11 passage of this bill. 12 Thank you for the opportunity 13 to appear before you today. 14 COUNCILMAN GREENLEE: Thank 15 you. 16 There are no questions. Anyone 17 else to testify on Bill No. 190465? 18 (No response.) 19 COUNCILMAN GREENLEE: I know we 20 have an amendment to that also. 21 Thank you. 22 We're going to call the next 23 three bills up together because they're 24 all basically related. 25 Mr. McMonagle, you want to read STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 117 1 6/5/19 - STREETS - BILL 181004, ETC. 2 the title of those three bills, please. 3 THE CLERK: Bill No. 190413, an 4 ordinance authorizing the Streets 5 Commissioner and Procurement 6 Commissioner, on behalf of the City, to 7 enter into an Intergovernmental Agreement 8 with the Philadelphia Municipal Authority 9 through which the City will assume 10 certain rights and obligations under an 11 agreement the Authority will enter into 12 with Waste Management of Pennsylvania, 13 Inc. for the processing and marketing of 14 recyclable materials, all under certain 15 terms and conditions; and 16 Bill No. 190468, an ordinance 17 authorizing the Streets Commissioner and 18 Procurement Commissioner, on behalf of 19 the City, to enter into an Agreement with 20 Covanta Sustainable Solutions, LLC 21 pursuant to which Covanta will receive 22 municipal solid waste to be collected by 23 or on behalf of the City, and transfer 24 and dispose that municipal solid waste, 25 over a four-year term, with three STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 118 1 6/5/19 - STREETS - BILL 181004, ETC. 2 one-year renewal terms at the sole 3 discretion of the City; and 4 Bill No. 190469, an ordinance 5 authorizing the Streets Commissioner and 6 Procurement Commissioner, on behalf of 7 the City, to enter into an Agreement with 8 Waste Management of Pennsylvania, Inc. 9 pursuant to which Waste Management will 10 receive municipal solid waste to be 11 collected by or on behalf of the City, 12 and transfer and dispose that municipal 13 solid waste, over a four-year term, with 14 three one-year renewal terms at the sole 15 discretion of the City. 16 (Witnesses approached witness 17 table.) 18 COUNCILMAN GREENLEE: Okay. 19 Thank you. 20 Good afternoon, everyone. 21 Commissioner, why don't you 22 read the testimony or present your 23 testimony on all three and then we'll 24 have questions. 25 COMMISSIONER WILLIAMS: Very STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 119 1 6/5/19 - STREETS - BILL 181004, ETC. 2 good. 3 COUNCILMAN GREENLEE: I'm sure 4 there will be other people that will have 5 some testimony on this. 6 COMMISSIONER WILLIAMS: Very 7 good. Yes, sir. Thank you. 8 Good afternoon, Councilperson 9 Squilla, Council Chairperson Greenlee, 10 and the honorable members of the Streets 11 and Service Committee. My name is 12 Carlton Williams, Streets Commissioner. 13 Joining me today are Deputy Commissioner 14 of Sanitation, Keith Warren; Recycling 15 Director, Kyle Lewis; and Environmental 16 Planning Director, Scott McGrath. We are 17 pleased to provide testimony in support 18 of Bill Nos. 190468 and 190469 related to 19 the municipal solid waste disposal 20 contracts for the City of Philadelphia. 21 The proposed contracts were 22 negotiated under the new Best Value 23 process comprised of a committee of 24 several key departments, including 25 Streets Department, Law Department, STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 120 1 6/5/19 - STREETS - BILL 181004, ETC. 2 Procurement Department, Office of 3 Economic Opportunity, and the Zero Waste 4 and Litter Cabinet. I would like to take 5 a moment to acknowledge their commitment 6 and hard work throughout the entire 7 process. The contracts were evaluated 8 based on factors including disposal 9 costs, solid waste experience, 10 operational efficiency, equal opportunity 11 participation, waste reduction, and 12 litter prevention strategies. Each 13 proposal was given a rating based on the 14 factors above and scored accordingly by 15 the evaluation committee. The committee 16 rated and selected Waste Management of 17 Pennsylvania, Inc. and Covanta for the 18 City's municipal solid waste disposal 19 contract with terms and conditions. 20 The terms contain a four-year 21 contract agreement with three one-year 22 renewable option years at the City's 23 discretion. The blended disposal cost 24 per ton in year one is $64.49, which is 25 less than the Streets Department STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 121 1 6/5/19 - STREETS - BILL 181004, ETC. 2 projection of $65 a ton. The blended 3 rate under the current contract is $63 a 4 ton. The total value of the contracts 5 over the seven-year period is $295 6 million, with a cost of 38.1 million 7 beginning year one. Under year one of 8 this contract, Waste Management is 9 awarded 25.9 million to dispose of 10 397,000 tons of MSW and Covanta is 11 awarded 12.8 million to dispose of 12 203,000 tons of MSW. 13 The City is committed to equal 14 opportunity participation, and this 15 contract represents a significant award 16 with $15.4 million paid to MBE/WBE firms 17 in the first year of the contract. This 18 award is 39 percent of the total contract 19 and exceeds OEO goals, which established 20 ranges between 25 and 32 percent for 21 MBE/WBE firms. 22 The RFP also included 23 opportunities to meet the City's zero 24 waste and litter prevention goals. We 25 are pleased that both companies provided STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 122 1 6/5/19 - STREETS - BILL 181004, ETC. 2 favorable proposals to support our zero 3 waste and litter initiatives. Covanta's 4 contract committed to pay 25 cents per 5 ton for zero waste and litter reduction 6 and Waste Management's contract includes 7 an opportunity to pilot and test organic 8 waste processing into a renewable energy 9 source. These initiatives will help the 10 City meet our zero waste goal by 11 diverting waste from landfills and 12 waste-to-energy facilities and help keep 13 our city clean while reducing the amount 14 of litter on city streets. 15 There have been recent concerns 16 expressed regarding the use of WTF 17 facilities to dispose of the City's MSW. 18 Waste Management of Pennsylvania, Inc. 19 and Covanta both utilize waste-to-energy 20 technology. The Streets Department, 21 Office of Sustainability, and the Zero 22 Waste and Litter Cabinet have concluded 23 that waste-to-energy is preferable over 24 landfill for waste disposal, as 25 waste-to-energy results in fewer STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 123 1 6/5/19 - STREETS - BILL 181004, ETC. 2 long-term environmental impacts. We 3 believe that the proposed waste disposal 4 agreements provide the best available 5 opportunities to responsibly dispose of 6 our waste and incorporate advancements in 7 technology that will further mitigate 8 environmental issues as compared to using 9 landfills. 10 Waste-to-energy produces more 11 energy per ton than methane recovery from 12 landfill, uses less physical space for 13 waste, and waste-to-energy facilities 14 recover ferrous and non-ferrous metals 15 for recycling. For example, in 2018, the 16 Covanta Chester facility produced 711,000 17 megawatt hours of electricity, enough to 18 provide electricity for 60,000 homes. It 19 also recycled 59,000 tons of metals. 20 Waste-to-energy reduces the amount of 21 greenhouse gas emissions in the 22 atmosphere compared to landfilling by 23 producing little or no methane. A 24 landfill, even one that collects methane, 25 will release a significant amount of STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee on Streets and Services June 5, 2019 Page 124 1 6/5/19 - STREETS - BILL 181004, ETC. 2 methane from decaying organic material 3 since landfill gas management systems are 4 about 80 percent efficient.