To the memb~rs of the:
CITY COUNCIL
Date i/25\2SCA V CC ✓
CM . v ACM ✓ DCM (3) V
September 25, 2025
Council Memorandum
{city of
Carlsbad
Memo ID# 2025057
To:
From:
Honorable Mayor Blackburn and Members of the City Council Paz Gomez, Deputy City Manager, Public Works
Via:
Re:
Sheila Cobian, Assistant City Manager ~
Palomar Transfer Station Operator Selection and Sustainable Materials Management and Compliance Plan (Districts -All)
This memorandum provides an overview of the city's upcoming efforts to secure a long-term operator for the Palomar Transfer Station (PTS} in preparation for the expiration of the current operator agreement and underlying County of San Diego lease in 2027.
Background
A solid waste transfer station receives various materials from residential, business and community customers, sorts that material and then transports it to regional landfill and recycling centers. In Carlsbad, the city leases the PTS property from the County of San Diego under a long-term lease agreement that commenced June 1, 2002, with an initial 25-year prepaid term through May 31, 2027, and up to 14 five-year extension options. The lease was originally executed by Allied Waste Systems, Inc. (now Republic Services}. Later in 2002, the city assumed the lease from Allied Waste Systems, Inc., to secure long-term local control over solid waste services. At that time, the city also entered into a sublease and operations agreement with Palomar Transfer Station, Inc. (a Republic Services subsidiary}, allowing Republic Services to continue operating the facility under an operator contract with the city.
In 2021, the City Council approved Amendment No. 5 to extend and amend the PTS and Disposal Services Agreement with Republic Services through May 31, 2027, aligning the operations contract with the County lease term. This amendment also added new waste diversion programs and compliance measures required under Senate Bill 1383.
Discussion
The County of San Diego is currently considering the city's request to combine two five-year lease extension options into a single 10-year extension (2027-2037}. County staff have indicated that an appraisal of the premises will not be completed until mid-2026, after which proposed lease terms will be provided for city review. Preliminary feedback suggests the 10-year option is under consideration but requires further internal review and approval by the County Board of Supervisors.
Public Works Branch
Environmental Sustainability Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2646 t
Council Memo -PTS Operator Selection and SMM and Compliance Plan (Districts -All) September 25, 2025
The expiration of both the city's operating agreement with Republic Services and the County lease in 2027 necessitates coordinated action to ensure continuity of service, compliance with evolving solid waste regulations and alignment with the city's sustainability goals.
To support this effort, staff plan to work with a consultant to provide phased services, including:
• Aligning PTS operator contract development with anticipated County lease requirements and appraisal-based rent adjustments
• Assessing current PTS operations, financial performance and regulatory compliance • Developing the Transfer Station Sustainable Materials Management and Compliance Plan, which would identify opportunities to increase waste diversion, modernize the facility and improve customer service
• Supporting negotiations and development of a new operator agreement that ensures regulatory compliance, financial optimization and community benefit This phased approach will guide the city from compliance assessment and strategic planning through development of a new operating agreement, environmental responsibility and service excellence for the next decade and beyond.
Next Steps
Staff plan to initiate a Request for Proposals (RFP) to retain a consultant with expertise in solid waste operations, financial modeling and sustainable materials management to guide the city through this process. With the current operator agreement and County lease expiring in 2027, proactive planning is essential to maintain continuity of service, meet regulatory requirements, and advance the city's sustainability goals.
The following timeline is provided:
• Issue RFP for consulting services -September 26, 2025 • Begin working with a consultant to assess the PTS facility and programs -Early 2026 • Complete assessment and phased planning deliverables -Summer 2026 • Return to the City Council with consultant findings and recommendations, including a potential RFP for a PTS Operator, contingent on City Council direction -Early 2027 cc: Geoff Patnoe, City Manager
Cindie McMahon, City Attorney
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services Tim Lyons, Assistant City Attorney
Jason Haber, Intergovernmental Affairs Director
Zach Korach, Finance Director
James Wood, Environmental Sustainability Director
Council Memo -PTS Operator Selection and SMM and Compliance Plan (Districts -All) September 25, 2025
Curtis Jackson, Real Estate Manager
Avecita Jones, Senior Program Manager