FIVE (5) YEAR AMENDED AND RESTATED CONTRACT FOR
RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION AND
DISPOSAL
CITY COUNCIL REGULAR MEETING,
MAY 13, 2024 | ITEM 5.2
1 BACKGROUND
2 The Lathrop Municipal Code Section 8.16.090 gives the City the exclusive right to contract for the collection and transportation of garbage within the City limits under such terms and conditions as it deems necessary for the public health,safety and well-being of the residents of the City of Lathrop.
Since 1995, the City has contracted with Lathrop Sunrise Sanitation Corporation who have consistently provided the City with good quality, low-cost solid waste collection and disposal services, in compliance with state recycling and organic waste regulations. Furthermore, with each contract renewal with Lathrop Sunrise Sanitation Corporation, language has been updated to add or modify services based on the needs and requirements of the City. The term of the existing agreement ends June 30, 2024. Lathrop Sunrise Sanitation Corporation submitted a proposal for a five (5) year contract extension that would become effective July 1, 2024 and would expire on June 30, 2029. Staff has reviewed the proposed terms and drafted the proposed Amended and Restated Contract to restate the terms of the agreement.
Council Action Hauler/Company Name Term(s) of Agreement May 25, 1990 Lathrop Environmental Services, Inc.
(prior County Franchise Hauler)
Entered into a 7 year long-term agreement, beginning June 1, 1990, with renewable language clause for an additional 3 years
January 3, 1995 Lathrop Sunrise Sanitation Corporation Assumed 60 day assignment of the 1990 long-term Agreement between the City and Environmental Services Inc., as approved by probate court proceedings.
March 21, 1995 Lathrop Sunrise Sanitation Corporation Entered into a 5 year agreement, beginning April 1, 1995, with renewable language clause
June 15, 1999 Lathrop Sunrise Sanitation Corporation Entered into a 5 year agreement, beginning July 1, 1999, with renewable language clause
October 21, 2003 Lathrop Sunrise Sanitation Corporation Entered into a 5 year agreement, beginning July 1, 2004 to June 30, 2009, with renewable language clause
June 2, 2009 Allied Waste Corporation
(formerly Lathrop Sunrise Sanitation Corporation)
Entered into Amendment #1, a 5 year agreement, to the 2003 agreement, July 1, 2009 to June 30, 2014; with renewable language clause June 2, 2017 Republic Services (formerly Allied Waste Corporation and Lathrop Sunrise Sanitation Corporation)
Entered into Amendment #2, a 5 year agreement, to the 2003 agreement, July 1, 2014 to June 30, 2019; with renewable language clause May 13, 2019 Republic Services (formerly Allied Waste Corporation and Lathrop Sunrise Sanitation Corporation)
Entered into Amendment #3, a 5 year agreement, to the 2003 agreement, July 1, 2019 to June 30, 2024; with renewable language clause
CONTRACT HISTORY
CURRENT LEVELS OF SERVICE
4 Weekly Residential and Commercial Solid Waste Collection 3 Bin Weekly Collection: Solid Waste / Recycling / Green Waste Up to a maximum of 6 times a week for Commercial
Franchise Fee 7%
AB 939 Recycling Fee 3%
Free Service for City Facilities
Motor Oil & Filter Recycling
Battery Recycling
Waste and Recycling Education Outreach Programs
Residential Bulk Pick-up twice a year
Christmas Tree Recycling
Leaf and Limb Pick-up
24% Senior Discount for Seniors 65 years and older
Abandoned Property Close Out
18 Illegal Waste Pile Collections (From City facilities) Up to 200 Tons of Non-hazardous Solid Waste Disposal at Forward Landfill
PROPOSED CONTRACT TERMS
The term of the existing agreement ends June 30, 2024. Lathrop Sunrise Sanitation Corporation submitted a proposal for a five (5) year contract extension that would become effective July 1, 2024 and would expire on June 30, 2029. Staff has reviewed the proposed terms and drafted the proposed Amended and Restated Contract to restate the terms of the agreement and amendments were made to comply with recently updated state laws and adjust rates.
Amended and Restated 5-year Contract extension through 2029 *Includes current levels of service along with the proposed updated service levels:
ADA Roll-Out Service
Veteran Discount 10%
Low Income Discount 20%
$750 scholarship to eight schools (increased from six) $500 Mayor’s Art Show Sponsorship
$3,000 Christmas Parade Sponsorship
Auto Enrollment in Recycling and Organic Services for Commercial Customers Change CPI from Bay Area index to Water, Sewer, Trash CPI cap change from 4% to 5% with rollover
Senate Bill (SB) 1383 Compliance
5 PROPOSED CONTRACT TERMS
6 Full-time Employee
Outreach and Education
Source separated bins and/or carts
Physical space and de minimis waivers
Identifying tier one and tier two commercial generators Site visits and waste assessments
Contamination monitoring and enforcement
Inspection program and record keeping
Contamination monitoring
Annual compliance reviews
Customer outreach records and data
Reporting and audits provided to City for state reporting Non-Compliant customers tracking and enforcement
Senate Bill 1383 State Mandated Short-Lived Climate Pollutant Reduction Act:
Mandated Senate Bill (SB) 1383. The State of California Mandated Short-Lived Climate Pollutant Reduction Act of 2016 is geared to reduce organic waste disposal by 75% and increase edible food recovery by 20% by 2025. To comply with this state mandate, all solid waste generators must subscribe to organic/green waste (e.g., yard trimmings, food waste) collection services. Compliance requires specific monitoring, inspection, enforcement, and reporting.
RESIDENTIAL RATES
7 CURRENT RATE 3.5% INCREASE PROPOSED RATE
Small 30 Gallon $ 38.66 $1.35 $ 40.01
Medium 60 Gallon $ 41.64 $1.46 $ 43.10
Large 90 Gallon $ 47.28 $1.65 $ 48.93
CURRENT RATE 3.5% INCREASE PROPOSED RATE
Small 30 Gallon $ 28.77 $1.01 $ 29.78
Medium 60 Gallon $ 30.90 $1.08 $ 31.98
Large 90 Gallon $ 34.87 $1.22 $ 36.09
CURRENT RATE 3.5% INCREASE PROPOSED RATE
Small 30 Gallon $ 32.32 $1.13 $ 24.04
Medium 60 Gallon $ 32.96 $1.15 $ 34.11
Large 90 Gallon $ 37.92 $1.33 $ 39.25
CURRENT RATE 3.5% INCREASE PROPOSED RATE
Small 30 Gallon $ 24.25 $0.85 $ 25.10
Medium 60 Gallon $ 24.69 $0.86 $ 25.55
Large 90 Gallon $ 28.25 $0.99 $ 29.24
SIZE
MOBILE HOME / TRAILER PARK RATES:
SIZE
SENIOR MOBILE HOME / TRAILER PARK RATES:
STANDARD RESIDENTIAL RATES:
SIZE
SENIOR RESIDENTIAL RATES:
SIZE
COMMERCIAL RATES
8 CURRENT COMMERCIAL RATE
Container One/Wk Two/Wk Three/Wk Four/Wk Five/Wk
1 Cu. Yd $97.64 $148.80 $199.92 $250.99 $302.13
2 Cu. Yd $125.53 $192.83 $264.85 $327.46 $394.76
3 Cu. Yd $159.15 $254.32 $366.89 $500.79 $634.81
4 Cu. Yd $198.63 $327.46 $505.68 $684.00 $859.04
5 Cu. Yd $245.87 $472.37 $698.87 $925.36 $1,124.02
6 Cu. Yd $291.51 $568.80 $846.44 $1,124.02 $1,401.66
PROPOSED 20% INCREASE
Container One/Wk Two/Wk Three/Wk Four/Wk Five/Wk
1 Cu. Yd $19.53 $29.76 $39.98 $50.20 $60.43
2 Cu. Yd $25.11 $38.57 $52.97 $65.49 $78.95
3 Cu. Yd $31.83 $50.86 $73.38 $100.16 $126.96
4 Cu. Yd $39.73 $65.49 $101.14 $136.80 $171.81
5 Cu. Yd $49.17 $94.47 $139.77 $185.07 $224.80
6 Cu. Yd $58.30 $113.76 $169.29 $224.80 $280.33
PROPOSED NEW COMMERCIAL RATE
Container One/Wk Two/Wk Three/Wk Four/Wk Five/Wk
1 Cu. Yd $117.17 $178.56 $239.90 $301.19 $362.56
2 Cu. Yd $150.64 $231.40 $317.82 $392.95 $473.71
3 Cu. Yd $190.98 $305.18 $440.27 $600.95 $761.77
4 Cu. Yd $238.36 $392.95 $606.82 $820.80 $1,030.85
5 Cu. Yd $295.04 $566.84 $838.64 $1,110.43 $1,348.82
6 Cu. Yd $349.81 $682.56 $1,015.73 $1,348.82 $1,681.99
COMMERCIAL RATES
9 RECYCLING
Container One/Wk Two/Wk Three/Wk Four/Wk Five/Wk
1 Cu. Yd $97.69 $148.87 $200.02 $251.11 $302.27
2 Cu. Yd $125.59 $192.92 $264.98 $327.62 $394.95
3 Cu. Yd $159.22 $254.44 $367.06 $501.03 $635.11
4 Cu. Yd $198.73 $327.62 $501.03 $684.33 $859.46
5 Cu. Yd $245.99 $472.60 $699.21 $925.81 $1,124.56
6 Cu. Yd $291.65 $569.07 $846.85 $1,124.56 $1,402.34
Container Size Rate
Large – 90 gal $52.02
ORGANICS
TONIGHT’S ACTION
Discuss the information provided regarding options for solid waste collection disposal for residential and commercial customers. Should Council decide to move forward with Republic Services proposed terms, Council can vote to approve the Resolution Approving a Five (5) Year Amended and Restated Contract for Residential and Commercial Customers Between City of Lathrop and Lathrop Sunrise Sanitation Corporation to provide orderly collection and transportation of solid waste within the City Limits effective July 1, 2024, and would expire on June 30, 2029 and Authorize Rate Adjustments for FiscalYear 2024-2025. 10