1 CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR, CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: CHRISTABEL SORIA MENDOZA, MANAGEMENT ANALYST I
DATE: OCTOBER 15, 2025
SUBJECT: REVIEW AND APPROVE AMENDMENTS TO FRANCHISE
AGREEMENT WITH GREENWASTE RECOVERY REGARDING
ROLL-OFF BIN REQUIREMENTS FOR CONSTRUCTION &
DEMOLITION (C&D) PROJECTS; AND PROVIDE DIRECTION
REGARDING THE TOWN FRANCHISE FEE
RECOMMENDATION
Staff recommends that the Council review the proposed amendments to the franchise agreement regarding roll-off bin requirements for C&D projects and consider approval based on the Refuse and Recycling Committee’s recommendation. Additionally, the Committee recommends that the Council discuss possible amendments to the Town’s Franchise Fee currently set at 5%.
BACKGROUND
The Town of Atherton holds a Franchise Agreement with GreenWaste Recovery for the collection and processing of waste, mixed compostable materials, recyclable materials, and yard trimmings and bulky goods within the service area for residential and non-residential service recipients.
Under Section 3.1 of the Franchise Agreement (Attachment 1), GreenWaste will have the exclusive franchise to collect, transport, recycle, process, and dispose of all Construction and Demolition (C&D) debris within the Town beginning January 1, 2026.
In September 2020, the City Council approved the agreement establishing this exclusive service start date. As required by California Public Resources Code Section 49520, the Town issued a Five-Year Notice of Intent on December 1, 2020, to all current and past roll-off/debris box service providers operating in Atherton. The notice informed providers that they may continue operating in Atherton until January 1, 2026, but not thereafter. This notification ensured compliance with State law and provided existing providers with sufficient lead time to adjust operations ahead of the exclusive franchise transition.
As the January 1, 2026, effective date approaches, staff have begun reviewing operational, compliance, and outreach considerations related to the transition. This includes clarifying the scope of GreenWaste’s exclusivity, identifying lawful exceptions, and determining how those exceptions should be integrated into the Town’s Municipal Code and operating procedures.
The item was reviewed by the Refuse and Recycling Committee on August 19, 2025. City Manager Rodericks provided context and presented the additional exemptions, clarifying that the franchise exclusivity does not apply where materials are self-hauled in compliance with local code, 2 transported in company-owned dump trucks, or handled entirely within a trade-specific operation using owned containers. Committee members requested further clarification on proposed exception (Q) as part of education and outreach, emphasizing the need to ensure that roll-off bin usage is directly tied to service. Staff and GreenWaste committed to notifying haulers and residents through an educational handout.
The Committee discussed bin contamination and recommended constant education to encourage proper usage, noting that contaminated bins could result in fines to prevent repeat offenses. City Manager Rodericks concluded the discussion with general agreement to move the proposed amendment forward to the City Council for review.
ANALYSIS
The existing franchise agreement grants GreenWaste Recovery the exclusive right to collect C&D debris beginning January 1, 2026, but Section 3.2 outlines specific exceptions. These exceptions generally apply to waste streams that fall outside the definition of “Recyclable Materials” or “Construction and Demolition Debris” as used in the agreement, to materials handled by specialized service providers (e.g., hazardous waste haulers, grease collectors), or to situations where removal of certain organic or bulky goods is incidental to another trade’s work rather than a hauling service.
While these existing exceptions preserve operational flexibility and accommodate specialized waste industries, they leave ambiguity around certain C&D scenarios — particularly for nonhazardous materials removed without using roll-off bins. To address these gaps, staff recommended adding three proposed exceptions:
O. Construction and Demolition Debris that is self-hauled by Service Recipients in compliance with Atherton Municipal Code Sections 18.02.050 and 18.02.190.
P. Construction and Demolition Debris that is removed from a premise by a construction and/or demolition company in scheduled dump trucks and where no Debris Box Containers are used for the collection and transportation of such materials.
Q. Construction and Demolition Debris that is comprised of roof tear-off debris and that is removed from a premise by a roofing company using Debris Box Containers that are owned by the roofing company for the collection and transportation of such materials.
These proposed exceptions clarify that the franchise exclusivity does not apply where materials are self-hauled in compliance with local code, transported in company-owned dump trucks, or handled entirely within a trade-specific operation using owned containers.
Staff also discussed the franchise fee and revenue adjustment for January 1. Last year, Council reduced the franchise fee from 10% to 5% to offset the 11% contractual rate adjustment for GreenWaste. For 2026, the contractual rate increase is recommended to be 11% for customers, with the franchise fee remaining at 5%. Committee members did not recommend that the franchise 3 fee be reduced beyond the 5% but recommended that the Council discuss the issue at the October 2025 meeting.
FISCAL IMPACT
There are no immediate fiscal impacts associated with the Committee’s review and discussion of the proposed amendments to the franchise agreement regarding roll-off bin requirements for C&D projects.
The Town receives $237,000 in franchise fee revenue (at the 5%).
POLICY FOCUS
The Council’s primary focus is to review and discuss the Refuse and Recycling Committee’s recommendation for approval regarding roll-off bin requirements for Construction & Demolition (C&D) projects. This includes clarifying the scope of GreenWaste’s exclusivity, evaluating proposed exceptions, and ensuring that the decision supports consistent service delivery and compliance with state-mandated diversion and recycling goals.
ATTACHMENTS
1. Existing Franchise Agreement with GreenWaste (Section 3.1 and 3.2)
2. Proposed Amendment to Section 3.2, Exceptions.
3. Greenwaste Debris Box Rates