August 19, 2025
SOLID WASTE SERVICES REQUEST FOR PROPOSAL
1 Purpose & Historical Context
To report to Council on the result of the Ad Hoc Committee’s review of the Solid Waste Services RFP development as directed from the May 20th CC Meeting Driving factors of RFP Development
Republic Services' contract with City to expire in June 2027 Current contract not compliant with new regulatory laws and collection services Proposals submitted by Republic Services since 2021 did not align with the best interest of the City, resulting in failed negotiations CalRecycle’s Corrective Action Plan (CAP) requires the City to comply with Senate Bill 1383 (SB 1383) - California's Short-Lived Climate Pollutant Reduction Strategy 2 CalRecycle’s CAP Compliance
CA Dept. of Resources Recycling and Recovery - Corrective Action Plan Due to delayed SB 1383 collection service implementation by unsuccessful contract negotiations with Republic Services since 2021 City received a final CAP extension until June 30, 2027, under the contingency of a completed RFP process that will comply with SB 1383 Continued non-compliance could result in penalties amounting to $500 - $10,000 per violation per day 3 Ad Hoc Committee – RFP Review
Staff conducted comparative analysis, reviewed other agencies’ contracts, consulted with solid waste consultants and legal counsel to optimize our approach in developing a sound RFP.
Staff completed three Ad Hoc Committee Meetings
Guided staff with the development of the RFP & key priorities:
RFP Schedule
Draft Request for Proposal
Contract Term – 10 years + 2 five-year extension options Key Service Components
Fees
Rate Structures
4 Benefits of Request For Proposals (RFP)
Key Service Components
SB 1383 Compliance Collection Services
Residential Senior Discount
Commercial 3 Cart System Collection
Bulky Item Quarterly Collection Services
City Owned Waste Enclosure Maintenance Services
Downtown Block Maintenance Services
Household Haz. Waste, Compost Give-Away, Paper Shredding Addtl; Collection Programs Collection Vehicles (New/As-new), preferences using RNG that helps City meet SB 1383 procurement target requirements Equipment - Replace old Bins and Carts citywide with identified markings 5 Benefits of Request For Proposals (RFP)
Description
Fees
RFP Reimbursement Fee
Actual Cost (Est. $75,000)
Franchise Fee
10% of Gross Receipts
NPDES Fee (National Pollutant Discharge Elimination System) $1,550,000 + CPI
City Billing Fee
$155,000 + CPI
Legislative Compliance Fee
$2,000,000 + CPI
6 Benefits of Request For Proposals (RFP)
Current Rate Structures
Even without organic collection services, Fullerton is still currently at the top two-thirds of residential and at the second highest in commercial waste collection rates in OC Other agencies hold lower rates but have overall better “benefits” in their solid waste contract compared to Fullerton Description
Fullerton
Orange County
Residential Rate – 1x per month
(3 Cart System)
$27.97
$15.62 - $39.25
Commercial Rate – 1x per week
(3 Cubic Yard Bin)
$239.73
$131.59 – $239.73
7 Benefits of Request For Proposals (RFP)
Rate Setting Factors
Legislative Compliance Mandates (Unfunded)
Services and Fees
Restructuring Multi-Family Rate to align with industry’s best practice Restructuring Downtown Block Account to a set flat rate Contract Term (Hauler’s Capital Cost Recovery)
Additional Container Configuration Options
Staff anticipates that competitive market will yield attractive proposals.
Overall, an opportunity to create a more flexible, compliant, accountable, and improved contract. 8 Extensive RFP Process & Timeline
RFP for a solid waste services contract requires tremendous time and coordination Approximately a 2-year process from start to finish
RFP development, advertisement, evaluation, negotiation, award of contract, new contract roll out New Contract Roll Out
New Hauler transition (if current hauler is not selected) to familiarize with the City, services, and routes Existing Hauler transition (if current hauler is selected) to prepare for container and vehicle equipment orders, swapping out containers for new identified markers Fleet Equipment
Personnel/Staffing
Bins and Carts Roll Out
Collection Services
9 Extensive RFP Process & Timeline
10 Next Steps
RFP timeline milestones are critical to implement and comply with SB 1383 legislation and avoid penalties from CalRecycle.
Staff intends to release the RFP on August 26, 2025, to stay on schedule.
There is no contractual obligation at this time. Staff would negotiate with the preferred hauler with consultation from legal counsel and established Ad Hoc Committee.
Per the proposed schedule, staff will bring the results of the evaluation at a Council study session, followed by a final recommendation as a regular business item. 11 Proposed Motion
Authorize and direct the Interim City Manager to issue the Solid Waste Service Request for Proposal (RFP). 12 Questions?
13