City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: March 6, 2023
FROM: Trevin Barber, City Manager
THROUGH: Trevin W. Barber, City Manager
SUBJECT: Resolution No. 2023-12 MOU with Tri-Cities Disposal
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2023-12, A Resolution of the City Council of the City of Gonzales Approving a Memorandum of Understanding Between the City of Gonzales and Tri-Cities Disposal and Recycling Services Regarding Negotiations for Amendments to the Exclusive Solid Waste, Recycling and Organics Collection Services Program Agreements.
BACKGROUND
The City’s Revised and Restated Franchise Agreement (Franchise Agreement) with Tri-Cities Disposal and Recycling Services (aka: Tri-Cities) for Exclusive Solid Waste Handling, Recycling and Organics Collection Services was approved on by the City of Gonzales on October 3, 2016, with a term ending June 30, 2025. Since then, SB 1383 was approved setting forth a variety of programmatic and policyrelated requirements for jurisdictions, generators, and other entities to support the State’s methane emission reduction goals.
The proposed MOU commits the City and Tri-Cities to immediately implement, or to the extent already implemented, continue to conduct, its solid waste, recyclables, and organics collection services in compliance with the mandates of AB 341, AB 1826, AB 1594, SB 1383 and the City’s Municipal Code Chapter 5.30. It also states that both parties will negotiate in good faith a complete restatement of the Franchise Agreement that captures in detail the programmatic/operational obligations of Franchisee under these laws and regulations. In addition, a regional Request for Proposal for a new franchise agreement for the four south valley cities (King City, Greenfield, Soledad, and Gonzales) will be issued in March 2023; the timeline for award of the new agreement aligns with the termination of this MOU and current franchise agreements.
AGENDA
ITEM
7 REVIEW AND ANALYSIS
Senate Bill (SB) 1383, enacted in 2017 and adopted by CalRecycle in 2020, establishes targets to reduce disposal of organic waste by 50 percent by 2020 and 75 percent by 2025 and requires that 20 percent of edible food that is currently disposed be recovered for human consumption by 2025. The City’s current Franchise Agreement with Tri-Cities needs to be amended to address regulations pertinent to the waste hauler collections.
In 2020, Salinas Valley Solid Waste Authority, the City’s Franchise Agreement administrator, began working with its legal counsel, the City, and Tri-Cities to revise the existing Franchise Agreement to address the new SB 1383 waste collection regulations. The initial revision to the Franchise Agreement opened the door to other revisions not related to SB 1383, which required further discussions and negotiations, therefore, an alternate approach was discussed and concurred in efforts to not further delay mandate compliance. All parties agreed on the preparation of an MOU that memorializes the commitment to comply with the mandate requirements and that these stipulations be negotiated in good faith into a new and revised restated Franchise Agreement. With that said, Tri-Cities has already begun to implement required changes as required by the law.
As mentioned above, a regional Request for Proposal for a new franchise agreement is underway. During the RFP process, the City will have the option to enter into a new franchise agreement with the selected contractor or could determine to extend the term on the current contract and proceed with a newly revised amendment that will address the terms included in this proposed MOU.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: The proposed MOU is a collaborative effort between the City, the partnering Cities, the Waste Collection Franchisee and Salinas Valley Solid Waste Authority to provide enhanced organic waste collection to city residents and local businesses.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: The approval of this item demonstrates the City’s leadership and commitment to comply with environmental regulations as mandated by SB 1383.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: This action enables compliance with regulatory requirements of organic waste recovery that will help improve air quality in the community by reducing methane gas emissions from organic waste previously destined for the landfill.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: This franchisee is part of the critical infrastructure needed for our community. Efficient operations of our solid waste franchise are cost-effective.
ALTERNATIVES
Alternative 1 - The City Council could ask for more details before approving the attached letter. Direction could be to approve in concept and allow the City Manager to modify the exact wording prior to signing.
Alternative 2 - The City Council could determine this matter is not in the best interest of Gonzales and decline to approve the letter. The Franchise would continue in effect as previously approved.
BUDGET IMPACT
This matter does not affect the budget.
CONCLUSION
It is recommended that the City Council adopt Resolution No. 2023-12, A Resolution of the City Council of the City of Gonzales Approving a Memorandum of Understanding Between the City of Gonzales and Tri-Cities Disposal and Recycling Services Regarding Negotiations for Amendments to the Exclusive Solid Waste, Recycling and Organics Collection Services Program Agreements.
Attachments:
1. Resolution No. 2023-12
2. MOU