Staff Report re Republic Services Franchise Agreement First Amendment Page 1 of 4
STAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Kathleen Gallagher, Sustainability Manager
VIA: Dan Barros, City Manager
MEETING DATE: March 11, 2026
SUBJECT: First Amendment to Franchise Agreement for Recyclables, Organic Waste and Garbage Collection and Processing Services with Republic Services
RECOMMENDATION
Staff recommend that the City Council adopt the following:
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE
FIRST AMENDMENT TO THE FRANCHISE AGREEMENT FOR RECYCLABLES, ORGANIC
WASTE AND GARBAGE COLLECTION AND PROCESSING SERVICES BETWEEN TOWN OF
COLMA AND REPUBLIC SERVICES
COUNCIL ADOPTED VALUES
T
his recommendation is consistent with the Council’s adopted values from the Values-Based Code of Conduct for responsibility because the amendment provides continuity of essential services of recyclables, organic waste, and garbage collection services for residents and businesses.
BACKGROUND
The Town’s current franchise agreement for collection of recyclables, organic waste, and garbage with Republic Services began on August 31, 2016, for a ten-year term and includes an option to extend the franchise agreement term twice for succeeding terms of two years by written agreement by the Town and Republic . On August 27, 2025, staff presented an amendment to Council for a term extension after several discussions with Republic and receipt of their letter of support. However, after City Council approved the amendment , Republic’s G eneral Manager stated there was internal review issue and informed staff that Republic did not plan to sign the amendment. Therefore, on February 11, 2026, a study session was held to discuss alternatives regarding the franchise agreement and request City Council feedback. Council’s feedback included several concerns about Republic’s recent service issues, lack of communication, their requirement that the Town sign a Memorandum of Understanding (MOU) in order for ratepayers to receive a credit for not receiving service, and lack of communication regarding the amendment brought to AGENDA ITEM #2
Staff Report re Republic Services Franchise Agreement First Amendment Page 2 of 4 Council. Staff met shortly after the study session to discuss Council feedback. As a result of this feedback, staff developed a modified amendment to reflect Council’s concerns.
ANALYSIS
The proposed amendment for council consideration is different from the previous amendment since it only extends the term for an additional two years (to August 2028) to allow the Town sufficient time to consider alternatives regarding the franchise agreeme nt. Alternatives for the Town’s consideration include directing Town staff to develop a competitive procurement process, Request for Proposal (RFP) for a new franchise agreement . Importantly, since approval of the last franchise agreement in 2016, several new state mandates, such as Senate Bill (SB) 1383, require new programs to be included in a new franchise agreement, and many of the outdated terms and conditions need to be brought to current standards. The RFP process would include staff developing a new franchise agreement compliant with new mandates and include new terms and conditions to bring the agreement to current industry standards. Staff would develop the Request for Proposal and manage the competitive procurement process. Staff would return to Council in the coming months for Council consideration of the new draft franchise agreement, the draft RFP and the timeline for the competitive procurement process.
Objectives of the Proposed First Amendment
The current franchise agreement includes the following regarding term extensions:
Th
e proposed Amendment would amend Section 2.3 of the Agreement as follows:
“
2.3 Term”
A. T
he Term of this Agreement shall be from 12:01 AM, August 31, 2016, to August 31, 2028, unless earlier terminated pursuant to Article 10 of this Agreement.
B. The Term of this Agreement may be extended by written agreement of the parties for one additional term of two (2) years, provided that Contractor is in compliance with all terms and conditions of this Agreement, including the diversion requirements set forth in Section 3.14, by notice to Contractor at
Staff Report re Republic Services Franchise Agreement First Amendment Page 3 of 4 least one year before expiration of any term. Nothing in this Agreement shall be interpreted as requiring Town to renew or extend this Agreement.” New Franchise Agreement to Include State -mandated Programs The new franchise agreement would include the following SB 1383 requirements:
1. Mandatory Organics Collection Services. Jurisdictions must provide organic waste collection services to all residents and businesses, containers must be labeled and comply with the following color requirements for containers: grey/black for trash, green for organics, blue for recyclables.
2. Mandatory Contamination Monitoring. Hauler must provide on-site monitoring of containers to reduce cross contamination e.g., food waste in recycling containers is contamination.
3. Mandatory Education/Outreach. Jurisdictions must provide education/outreach to all businesses and residents regarding mandatory participation in the organics collection service and contamination requirements.
4. Edible Food Recovery. Jurisdictions required to establish an edible food recovery program for larger food generators i.e., Tier 1 and 2 Commercial Edible Food Generators to distribute edible food to food banks.
5. Capacity Planning. Jurisdictions must secure access to organics processing and food recovery capacity for the programs identified in the SB 1383 regulations.
6. Recovered Organic Waste Product Procurement: Jurisdictions must procure an annual quantity of recovered organic waste products based on population and which can be fulfilled by procuring compost, mulch, renewable energy (transportation fuel, heat, and electricity) from anaerobic digestion and electricity from biomass conversation.
7. Inspection and Enforcement: Jurisdictions required to monitor compliance and conduct enforcement through annual inspections of commercial and residential truck routes; compliance reviews on all commercial businesses.
SUSTAINABILITY IMPACT
This recommendation is consistent with the Town’s sustainability goals because recycling, organics and diversion from landfill resulting from the franchise agreement reduce greenhouse gas emissions and assist the Town in meeting Climate Action Plan emissions reduction targets.
FISCAL IMPACT
The recommendation will not impact the Town's budget.
ENVIRONMENTAL
This amendment is exempt from CEQA under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility the approval will have a significant effect on the environment as any amendment will merely maintain the status quo that is already in place.
Staff Report re Republic Services Franchise Agreement First Amendment Page 4 of 4
CONCLUSION
Staff recommends that the City Council adopt the resolution approving and authorizing the City Manager to execute the First Amendment to the Franchise Agreement for collection of recyclables, organic waste, and garbage to extend the term through August 30, 2028.
ATTACHMENTS
A. Resolution
B. First Amendment to the Franchise Agreement
Resolution 2026 Amendment to Franchise Agreement Page 1 of 2 RESOLUTION 2026-__
OF THE CITY COUNCIL OF THE TOWN OF COLMA
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE
THE FIRST AMENDMENT TO THE FRANCHISE AGREEMENT FOR RECYCLABLES,
ORGANIC WASTE AND GARBAGE COLLECTION AND PROCESSING SERVICES
BETWEEN THE TOWN OF COLMA AND REPUBLIC SERVICES
1. Background.
(
a) The Town of Colma (Town) and Republic Services (Republic), entered into a Franchise Agreement for Recyclables, Organic Waste and Garbage Collection and Processing Services (Agreement), which commenced on August 31, 2016, for a ten-year term; and (
b) Section 2.3 of the Agreement provides that the Agreement may be extended by written agreement of the parties;
(c
) Pursuant to Section 2.3. of the Agreement, the Town provided written notice to Republic in July 2025 regarding the Town’s intent to extend the Agreement, and Republic responded with a letter in August 2025 expressing support for extending the Agreement; and (d) The
Town and Republic desire to amend the Agreement to extend the term of the Agreement from August 31, 2026 to August 31, 2028, while leaving all other provisions of the Agreement unchanged; and
(e) Th
e proposed First Amendment to the Franchise Agreement would amend Section 2.3 of t
he Agreement to reflect the extended term and maintain the option for an additional two-year extension subject to the terms and conditions of the Agreement; and 2 . Order
(
a) The City Council hereby approves and authorizes the City Manager to execute the First Amendment to the Franchise Agreement for Recyclables, Organic Waste and Garbage Collection and Processing Services between the Town of Colma and Republic Services. //
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ATTACHMENT A
Resolution 2026 Amendment to Franchise Agreement Page 2 of 2 C
ertification of Adoption
I certify that the foregoing Resolution No. 2026-__ was duly adopted at a regular meeting of said City Council held on March 11, 2026, by the following vote:
Name Voting Present, Not Voting Absent
Ay e No Abstain Not Participating
Carrie Slaughter, Mayor
Helen Fisicaro, Vice Mayor
Ken Gonzalez, Councilmember
Joanne F. del Rosario,
Councilmember
Thomas Walsh,
Councilmember
Voting Tally
D
ated ______________________ ___________________________________ Carrie Slaughter, Mayor
At
test: ____________________________
Michelle Estabillo, City Clerk
25977.00130\44735280.1
FIRST AMENDMENT TO FRANCHISE AGREEMENT FOR RECYCLABLES, ORGANIC
WASTE AND GARBAGE COLLECTION AND PROCESSING SERVICES BETWEEN TOWN
OF COLMA AND ALLIED WASTE SERVICES OF NORTH AMERICA, LLC This First Amendment to Franchise Agreement for Recyclables, Organic Waste and Garbage Collection and Processing Services between Town of Colma and Allied Waste Services of North America, LLC, doing business as Republic Services of Daly City (First Amendment) is entered into as of March 11, 2026, between the Town of Colma (Town) and Allied Waste Services of North America, LLC, doing business as Republic Services of Daly City (Republic).
WHEREAS, the Town and Republic entered into a Franchise Agreement for Recyclables, Organic Waste and Garbage Collection and Processing Services between Town of Colma and Allied Waste Services of North America, LLC, doing business as Republic Services of Daly City (Agreement) which commenced August 31, 2016, for a ten-year term; and WHEREAS, the Agreement may be extended by written agreement of the parties, and whereby the Town provided written notice to Republic on August 6, 2025, pursuant to Section
2.3 B. of the Agreement regarding an extension option, and Republic responded with a letter of support for an extension on August 20, 2025; and
WHEREAS, the Town seeks to extend the Agreement with Republic to August 31, 2028, consistent with Section 2.3 B. of the Agreement;
AGREEMENT
N
OW, THEREFORE, in good and valuable consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:
S
ection 2.3 shall be amended to read in full as:
“2
.3 Term”
A. T
he Term of this Agreement shall be from 12:01 AM, August 31, 2016, to August 31, 2028, unless earlier terminated pursuant to Article 10 of this Agreement.
B. The Term of this Agreement may be extended by written agreement of the parties for one additional term of two (2) years, provided that Contractor is in compliance with all term and conditions of this Agreement, including the diversion requirements set forth in Section 3.14, by notice to Contractor at least one year before expiration of any term. Nothing in this Agreement shall be interpreted as requiring Town to renew or extend this Agreement.” A
ll other terms of the Agreement remain unchanged and in full force and effect.
ATTACHMENT B
25977.00130\44735280.1
IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the date first written above.
TOWN OF COLMA, a municipal corporation
Daniel Barros
City Manager
ATTEST:
Michelle Estabillo, City Clerk
APPROVED AS TO FORM:
Christopher Diaz, City Attorney
ALLIED WASTE SERVICES OF NORTH
AMERICA, LLC, dba Republic Services of
Daly City, a Limited Liability Company
Area President
Kathryn Tekulve, General Manager