STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of September 12, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer SUBJECT: Negotiation Points for Solid Waste Franchise Agreement RECOMMENDED ACTION:
Staff recommends that the City Council:
Receive a report from staff regarding the recommended negotiation points for the Solid Waste Franchise Agreement with Republic Services; and Discuss and provide direction on the negotiation points to staff, if any; and Authorize staff to proceed with negotiations.
BACKGROUND:
The City first entered into a Franchise Agreement (Agreement) with Pinole Garbage Service, a division of Richmond Sanitary Service (dba Republic Services) for collection of solid waste and collection and processing of source separated recyclable materials, organic materials, and construction and demolition debris (Collection Services) in 1986. The current Agreement ends on June 30, 2025. The City should have an extension or new agreement in place for Collection Services by January of 2024.
In September 2016, Governor Brown signed Senate Bill 1383 (SB 1383) into law, which directs the Department of Resources Recycling & Recovery (CalRecycle) to adopt regulations and requirements to achieve statewide goals of reducing organic waste disposal by 75% and to recover at least 20% of surplus food currently being disposed by 2025. SB 1383 is California's most significant waste reduction mandate in the last 30 years. The City must expand commercial and residential organics waste collection programs, develop edible food recovery programs, and instill procurement mechanisms for SB 1383 qualifying recycled content products. The City will also be expected to enforce, track, and report on organic waste diversion goals. Adding additional provisions related to SB 1383 compliance will assist in clarifying roles and responsibilities in relation to this new State law.
ANALYSIS:
Republic has already implemented extensive adjustments to their collection services to facilitate state law compliance, including automatic roll-out of organics service to customers who generate sufficient quantities of solid waste to be required to subscribe under State law, as well as extensive additional recordkeeping and reporting.
Some businesses in Hercules do not currently have separate bins for the collection of organic material (i.e., food scraps, food soiled paper, and yard waste). SB 1383 requires all residents and businesses to have bins for the separate collection and disposal of organic material unless they receive a waiver.
In addition to providing for the separate collection and processing of organic material, Republic Services will be required to promote and enforce proper sorting of organic material. These efforts will include inspecting bins for contamination (e.g., trash in an organics container), notifying customers of contamination issues, and promoting proper sorting to residents and businesses through public outreach and technical assistance. Republic Services will also be required to provide detailed tracking and reporting on these activities.
Staff is recommending that the City pursue several objectives in relation to the proposed Agreement extension:
Restatement of existing franchise agreement
The addition of provisions related to SB 1383, detailed above Contract duration of sufficient length to recover the cost of any capital investments (10+ years) The addition of Bulky Item Pickup for single-family and potentially multi-family customers at minimal additional cost Adjustments to some of the City fees related to mitigation of street damage related to solid waste collection services, and other nexuses currently being explored Republic has preliminarily requested a new contract restatement. Staff is in agreement that a new contract would save time and result in improved clarity around contract provisions. The City expects that any rate adjustments would be directly associated with program improvements and not a result of the negotiated extension. Any additional costs associated with the formulation of the new contract would be paid by Republic. Republic has also requested that the City conduct three Public Hearings per year to place of liens on private property for delinquent waste collection charges. The City currently holds two Public Hearings per year for this purpose.
FISCAL IMPACT:
There is no direct financial impact associated with the recommended action. Staff will bring back to Council a recommended draft agreement and discuss potential financial impacts in detail at that time.
ATTACHMENTS:
None