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Staff Report
City Council
Item No. 3.B
Meeting Date: May 11, 2022
From: Deanna Pressgrove, Environmental Conservation & Public Works Manager
Title: SB 1383 residential roll out program, amendment to the franchise agreement and rate increase request on commercial, residential, and roll-off services.
City Council
RECOMMENDATION:
The SB 1383 residential roll out program, amendment to the franchise agreement and rate increase request on commercial, residential, and roll-off services is presented to the City Council for discussion, comments and direction in anticipation of being presented for Public Hearing and City Council approval at the June 8, 2022, City Council Meeting.
BACKGROUND:
The Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989, (“AB 939” or the “Act”) (codified as Public Resources Code §§ 4000 et seq.) established a solid waste management process which requires cities and other local jurisdictions to implement plans for source reduction, reuse and recycling as integrated waste management practices for solid waste attributed to sources within their respective jurisdictions.
The Act provides that aspects of solid waste handling of local concern include, but are not limited to, frequency of collection, means of collection and transportation, level of services, charges and fees, and nature, location, and extent of providing solid waste services. The Act encompasses the newly adopted Short-Lived Climate Pollutants mandate, Senate Bill (SB) 1383.
The stated purpose of SB 1383 is to reduce organic waste disposal, recover edible food waste from the waste stream and reduce methane emissions. The goal of SB 1383 is to reduce greenhouse gas emissions to 40% below 1990 levels by the year 2030.
To achieve this, the target is to reduce organic waste that ends up in the landfill by 50% by the year 2020 (statistics of having achieved this goal are not available yet) and 75% by the year 2025. In addition to reducing landfilled organics by 75%, the State will also be
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required to recover edible food that is currently placed in the waste stream by 20% by establishing edible food recovery programs.
To achieve the reduction of landfilled waste and to increase recovery, the State has mandated the following:
1. Provide organics collection services to all residents, multi-family complexes and businesses.
2. Establish edible food recovery programs.
3. Conduct education and outreach to the Community.
4. Procure recyclable and recovered organics products.
5. Monitor compliance and conduct enforcement.
SB 1383 Subcommittee
City Council formed the SB 1383 Subcommittee in late 2020 with Councilmembers Ross and Carnevale to assist with the development and implementation of SB 1383 programs that will impact the community.
At the January 12, 2022 Council meeting, City Council approved an update to Ordinance 6.04 which added required elements of SB 1383 to the existing ordinance. City Council also approved the Commercial Organics Recycling Campaign which provides Cathedral City’s commercial sector and multi-family communities with the resources to comply with SB 1383.
The SB 1383 Subcommittee met in April 2022 to discuss the Residential Rollout of SB 1383 programs and services for residential customers. The residential rollout will include the distribution of blue carts for recycling and kitchen pails. The blue cart implementation is required by SB 1383 and the kitchen pails are to support the proper collection and storage of food waste by residents, prior to placing the food waste into the green cart.
Below is a summary of the proposed rate increase to residential and commercial customers, details on the residential rollout and the draft amendment to the franchise agreement adding language addressing SB 1383 compliance.
DISCUSSION:
In March 2022, Burrtec Waste and Recycling LLC. (Burrtec) requested an annual rate increase for residential, commercial, and roll-off services, in accordance with Article 6 of the Municipal Franchise Agreement (FA). Pursuant to the FA, Burrtec is eligible to request a rate increase each year based on applicable increases in the Consumer Price Index (CPI) for the Water, Sewer and Trash Collection Services in U.S. The change in the CPI for 12 months ending January 2022 was 4.04%.
The Riverside County disposal fee at the Edom Hill Transfer Station will also increase from $51.49 to $55.75 per ton effective July 1, 2022, in accordance with The Edom Hill Master Lease Agreement between Riverside County and Burrtec.
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Burrtec is requesting a rate increase that incorporates the following elements:
1. The CPI increase which is in accordance with the Franchise Agreement.
2. The County of Riverside’s decision to increase the cost per ton of disposal at County landfills.
3. The annual net recycling adjustment which is adjusted based on several components associated with recycling, such as processing, transportation, and recycling commodity prices.
4. SB 1383 required implementation services and programs.
The following identifies how the commercial, residential, roll-off and multi-family customer would be impacted.
RESIDENTIAL CUSTOMER:
The current residential rate for calendar year (January – December) 2022, is $23.11 a month for the weekly curbside service of 1-96-gallon Trash, Recycle and Greenwaste containers.
If approved, the residential tax roll rate for calendar year 2023, would see an increase of $2.58 per month or $30.96 annually. The 2023 monthly rate would be $25.69. The rate increase would be effective for assessment on the 2022/2023 tax rolls.
Residential SB 1383 program implementation is expected by spring of 2023 and finalized by July 1, 2023. After discussing the timeline of the residential rollout with the SB 1383 subcommittee, the members asked that the residential customers be charged a blended rate that incorporates the following:
•The residential rate for no blue carts and kitchen pail is $25.20/month (January 1, 2023 through June 30, 2023).
•The rate for blue carts and kitchen pail is $26.10/month (July 1, 2023 through December 31, 2023).
•$25.20 + $26.18 = $51.38, $51.38 divided by 2 (half year at $25.20 and half the year at $26.18) = $25.69.
The $25.69 is a blended rate of 6-months without blue carts and kitchen pails delivered to all residents and 6-months with blue carts and kitchen pales after delivery.
Residential rates also incorporate processing, disposal, tipping and newly added commodity of organics processing in accordance with SB 1383. In addition, SB 1383 requires additional administration, records management, monitoring and implementation efforts that will require additional resources to comply with regulations.
Residential Rate Comparison with other jurisdictions with similar programs:
•City of Coachella $28.74
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•Riverside County $26.84
•City of Indio $24.85
COMMERCIAL CUSTOMERS:
The total monthly commercial fee is composed of several elements with varying increases depending on the size of containers and the level of service. A three-yard container serviced once a week, is the average service level for most Cathedral City commercial customers.
If approved, the commercial rate increase for a 3-yard container serviced 1x per week (most common service bin option) would be $19.88 per month and would be effective July 1, 2022. Commercial customers receive direct bills from Burrtec for the services provided.
SUMMARY OF PROGRAMS OFFERED BY CITY AND/OR BURRTEC FOR CITY’S RESIDENTIAL, MULTI-FAMILY AND COMMERCIAL CUSTOMERS:
There are no additional charges to the customer for any of the programs listed below. •Curbside Collection:
oWeekly collection of 1-96-gallon Trash, Recycle and Organics Cart oAdditional (1) Recycling and Organics Cart
•Bulky Large Item Collection Program:
oResidential – 4 large items weekly (unlimited)
oCommercial – 4 large items weekly (unlimited)
oMultifamily (apartments, condos etc.) – 4 large items weekly (unlimited) •Motor oil and oil filter weekly residential curbside program •Electronic and Tire Disposal Program (weekly)
•Residential Household Hazardous Waste Disposal Program (weekly) •Medication and Sharps (needles) Disposal Program (weekly) •Document Shredding Events:
oCitywide events October thru May (first Saturday of each month) o55+ Communities and Senior Center monthly service
oAll City facilities monthly service
•Reusable Tote Bags
•Monthly Residential Street Sweeping Service
•Cathedral City Environmental Education Program:
oS.C.R.A.P. Gallery Programs
oGarden & Composting programs for Elementary/Middle school & the Boys & Girls Club
oTrash receptacle drawing contest Elementary/Middle school programs •Multi-Family Recycling Program:
oContainers for the collection of recyclables
oEducational brochures and signage
oFree waste audits
•Backyard Composting Program
•Community Clean-up Programs
•Special Services provided for disabled persons
•Illegal Dumping Collection Program
•City’s WaterSmart Landscapes Grant Program ($500 rebate program for front lawn elimination of greenwaste)
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•Community Outreach:
oCitywide residential mailer distributed to 24,500 households twice annually oDirect mail pieces for target areas needing reminders regarding programs •Commercial on-site waste and recycling audits at no charge •City Sponsored Events - Free trash, recycling, and portable toilets for up to 5- events annually
•Holiday Christmas Tree Recycling Program
AMENDMENT OF FRANCHISE AGREEMENT:
Burrtec Waste & Recycling has provided solid waste services to the city since 2006, and currently provides solid waste services to the city pursuant to the Amended and Restated Franchise Agreement dated July 1, 2020.
Staff worked with Burrtec to revise the current Amended and Restated Agreement to include additional language addressing SB 1383 compliance.
SB 1383 regulations require the City to implement collection programs, meet processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. The city has chosen to delegate some of its responsibilities to Burrtec Waste & Recycling.
As with all state mandates it is important to highlight that Burrtec has been an instrumental partner in helping Cathedral City build and provide programs that help our community not only meet compliance regulations but also educate residents and the business community to be good agents of environmental change.
Amendments:
1. Definitions related to SB 1383 were added to Article 1.
2. Generator Waiver Program: In accordance with SB 1383 regulations and the City’s Municipal Code, the City may grant waivers (de minimis, physical space or Collection frequency) to Generators that impact the scope of Company’s provision of service for those Customers.
3. Three-Container System: Burrtec will provide a Three-Container Collection program for the separate Collection of Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, and Gray Container Waste.
4. Use of plastic bags or other paper wrapped food waste and placed in green container.
a. In the near future, cathedral city residents will be directed to recycle food scraps with their yard trimmings in the green waste barrel. Residents will be notified by letter when the facilities are ready to take in and process food scraps.
5. Contamination Monitoring Protocols: includes Record Keeping, Courtesy Pick-up Notices, Notice of Assessment of Contamination Processing Fees and Disposal of Contaminated Materials.
6. Route Reviews and Waste Evaluations: Includes route reviews, waste evaluations, sampling method, contamination response, material exceptions and recordkeeping requirements.
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7. Inspection and Enforcement: No later than November 1, 2022, Company shall assist the City with and/or conduct applicable inspections and enforcement, to the extent delegable, as required by SB 1383 Regulations.
8. Provisions for Recovered Organic Waste Product: Company agrees to coordinate and cooperate with the City to meet its Organic Waste produce procurement target, as required by SB 1383 regulations.
9. Container Requirements: No later than January 1, 2036, Company shall provide all Customers with Collection Containers that comply with the Container color requirements specified in this Agreement or as otherwise specified in the SB 1383 regulations. Note: This will be accomplished in 2023.
10.Labeling Requirement: Beginning January 1, 2022 (or if using the Performance- based Compliance Approach), then until color compliant containers are provided, Company shall place a label on the body or lid of each new Container that has been provided to a Customer that includes language or graphic images, or both, that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container.
11.Complaints: Investigation of SB 1383 Regulatory Non-Compliance Complaints.
Within 30 days of receiving a compliant that a customer may not be compliant with SB 1383 Regulations and upon the approval of the City, Burrtec shall perform an investigation into the compliant. The investigation will include reviewing the service level of the customer, evaluating whether the customer qualifies for a waiver, self-haul determination, inspecting the premises (if warranted) and contacting the customer. After completing the investigation of an SB 1383 Regulatory non-compliance, Burrtec will submit the investigation report to the city.
The City Manager or his delegate shall make the final determination of the allegations against the customer.
12.Education and Outreach: Burrtec will create all applicable education materials and conduct all education programs and activities as provided by and in accordance with the SB 1383 regulations. Company shall cooperate and coordinate with the City on public education activities.
13.On or before October 1, 2022, the Company shall develop a list of Food Recovery Organizations and Food Recovery Services operating within the City, maintain the list on the Company’s City-specific website, share the list with the City if the City wants to post the list on additional City websites, and update the list annually.
14.Disposal and Recycling Processing Charges: April of each year, the Company shall submit to City the following: (1) the amount of the Gate Rate charged for the immediately preceding fiscal year; and (2) a statement of the Gate Rate actually paid in the immediately preceding fiscal year for refuse disposal and Organic processing.
15.Recording Keeping and Reporting: Company shall maintain all applicable records and assist the City in meeting all applicable reporting as required by the SB 1383 Regulations. Contractor shall allow City to audit and inspect such records and reports upon reasonable request.
This item is presented to the City Council for discussion, comments and direction in anticipation of being presented for Public Hearing and City Council approval at the June 8, 2022 City Council Meeting.
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FISCAL IMPACT:
This rate increase is paid by customers and will, therefore, have no negative impact on the City’s General Fund.
ATTACHMENTS:
Cathedral City 2022 Rate Request
2022-2023 Rates
DRAFT Cathedral City First Amendment to AR Agreement