Agenda Report
Fullerton City Council
MEETING DATE: FEBRUARY 20, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: STEPHEN BISE, DIRECTOR OF PUBLIC WORKS
PREPARED BY: JEROME JOAQUIN, ADMINSTRATIVE MANAGER
MICHELLE KESHISHIAN, SOLID WASTE AND RECYCLING SPECIALIST SUBJECT: CALIFORNIA SHORT-LIVED CLIMATE POLLUTANT REDUCTION REGULATIONS (SENATE BILL 1383) IMPLEMENTATION UPDATE
SUMMARY
An update on implementing Senate Bill 1383 (SB 1383) – California’s Short-Lived Climate Pollutant Reduction regulations and further actions needed to complete tasks stipulated by the State Corrective Action Plan.
PROPOSED MOTION
Receive and File.
ALTERNATIVE OPTIONS
Approve the Proposed motion.
No action required or proposed for this Study Session
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
This is an update on the City’s progress on coming into compliance with SB 1383.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
No fiscal impact associated with the SB 1383 implementation plan update. Refuse Fund (Fund 46) supports SB 1383 implementation costs including Fiscal Year 2021-22 SB 1383 Local Assistance Grant Program subsidy.
Finalizing the SB 1383 contract amendment with Republic Services (Republic) requires new and increased fees implement California’s Short-Lived Climate Pollutant Reduction regulations.
Staff will present fee adjustments and contract amendment to City Council at a later date. Staff does not have a proposed fee schedule from Republic Services as of this report date.
BACKGROUND AND DISCUSSION
California Governor Edmund Brown enacted a statewide methane emissions reduction organic waste recycling and surplus food recovery regulation in September 2016 to respond to California’s climate crisis. Senate Bill 1383 (SB 1383) reduces organics waste landfill disposal by 75% by 2025 and requires a 20% food recovery increase by 2025. Jurisdictions must comply with laws related to:
collection and recycling
education and outreach
edible food recovery
procurement
capacity planning
inspection and enforcement
recordkeeping
waivers and exemptions
reporting
public complaints.
The law took effect on January 1, 2022. The City submitted Notice of Intent to Comply per Senate Bill 619 (SB 619) to extend time to implement regulations without penalty. Republic Services notified the City in November 2022 that their finance team did not approve the rates provided and the City would need revisit rates with additional negotiations. The City received an SB 619 Corrective Action Plan (CAP) in March 2023 ordering the City to meet 73 required tasks by March 1, 2024.
The City planned to partner with Republic Services, the City’s solid waste hauler contractor, to comply with regulations. However, Republic experiences significant employee turnover in the Orange County branch, providing the City substandard operational performance issues and delayed contract negotiations. The Public Works Department updated the strategy to meet the tasks within the City’s control and the City has completed 60 of the 73 identified CAP tasks. The remaining 13 tasks have delayed due to ongoing contract negotiations with Republic.
The State has favorably acknowledged City efforts through bi-monthly CAP report follow-up meetings. Fullerton submitted the latest CAP report to the State in January 2024, including a formal request to extend implementation of the remaining 13 tasks beyond the March 1, 2024 due date. The City awaits response from the State Jurisdiction and Agency Compliance and Enforcement (JACE) Branch.
Staff worked with Republic, meeting weekly and monthly milestones to improve communications and operational performance and find resolution to escalated customer complaints. Republic displays periodic signs of operational improvement and collaborative ideas for resolution but continues to have operational challenges and delays. Effective operations citywide will take time as Republic employs new equipment and staff. Staff noted similar issues in surrounding cities that work with Republic.
Staff proposed two SB 1383 amendments to accelerate the contract amendment process in May 2023 - a Fourth Amendment for residential single-family home and commercial business sectors to enact immediately and a Fifth Amendment for residential multifamily dwelling units to finalize later in the year. The City requested revised cost proposals since May 2023 at the monthly contract meetings.
The staff expects Republic to provide a complete SB 1383 amendment package (approved amendment and cost proposal). Republic last provided a Fourth Amendment draft for City review in late December 2023 and indicated it would submit a cost proposal early February 2024. Republic informed the City that it needs to make additional changes to the proposal before presenting a cost proposal to the City in late February 2024.
Republic must assure the City that it will finalize the contract negotiations quickly to meet SB 1383 regulations and not incur any state fines.
Attachments:
Attachment 1 – SB 1383 Implementation Update Presentation cc: City Manager Eric J. Levitt
SB 1383 Implementation Update
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