City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01846 11/15/2022 Consent Item 15.
Approval of Commercial Waste Franchise Agreement with Ferma Greenbox, Inc., for Commercial Solid Waste Collection and Hauling
File ID: 2022-01846
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute a commercial solid waste franchise agreement through June 30, 2023, with four additional one-year renewal options between the City of Sacramento and Ferma Greenbox, Inc.
Contact: Erin Treadwell, Program Manager, (916) 808-4934, [email protected]; John Febbo, General Manager, (916) 808-4949, [email protected], Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Additional Description/Analysis
Issue Detail: With the dissolution of the Solid Waste Authority (SWA), the City of Sacramento assumed the responsibility of regulating and enforcing commercial waste hauling within the City of Sacramento limits effective July 1, 2021. Part of these responsibilities include entering into franchise agreements with haulers.
On February 2, 2021, the City Council adopted Ordinance No. 2021-0003 adding chapter 13.24 to the Sacramento City Code and regulating commercial waste hauling within the Sacramento city limits. Section 13.24.090 provides that the City Council may grant an applicant a non-exclusive franchise to collect, transport, or dispose of solid waste materials that are kept, have accumulated, or been generated in the City. Ferma Greenbox, Inc., has applied for a franchise hauler agreement.
The City’s franchise hauler application and approval process includes a financial and legal
File ID: 2022-01846 11/15/2022 Consent Item 15.
background review, adequate insurance, and diversion plans.
Policy Considerations: The recommendations of this report comply with Sacramento City Code chapter 13.24, which requires that a franchise agreement be in place for a hauler to collect commercial waste within the City.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This action is not a “project” subject to CEQA because it involves administrative matters and will not result in new physical development, direct changes to the physical environment, and any reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines § 15378(b)(5).) Sustainability: As part of their application process, haulers must describe in detail how they will divert waste from landfills and educate customers on source separation and recycling.
Ferma Greenbox, Inc. education and outreach and diversion plan requirements can be found in Sections 11 and 12 of the Scope of Services, included in the agreement.
Commission/Committee Action: None.
Rationale for Recommendation: The agreement that is part of this City Council report has met the application requirements set forth in the City Code and staff recommends that Ferma Greenbox, Inc., be awarded a franchise agreement.
Financial Considerations: The franchise agreement stipulates that the waste hauler will be charged a franchise fee, which is 10% of the revenue generated from solid waste collection operations within City limits. Chapter 13.24 stipulates the franchise fees and revenues will fund administrative, implementation, and enforcement costs for the commercial waste compliance section.
Local Business Enterprise (LBE): Not applicable.
SUPP (05/04)
SUPPLEMENT TO CERTIFICATE OF INSURANCE
DATE
NAME OF INSURED:
Additional Description of Operations/Remarks from Page 1:
Additional Information:
1000025823221 10/01/2022 Ferma Corporation
Effective Date:10/1/202
COMMERCIAL AUTO
SICA-1016 (0919)
SICA-1016 (0919) Copyright © Starr Indemnity & Liability Company. All rights reserved.
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
AMENDATORY ENDORSEMENT
Policy Number:
Named Insured:FERMA CORPORATION
This endorsement modifies the insurance coverage form(s) listed below that have been purchased by you and evidenced as such on the Declarations page. Please read the endorsement and respective policy(ies) carefully.
AUTO DEALERS COVERAGE FORM
BUSINESS AUTO COVERAGE FORM
MOTOR CARRIER COVERAGE FORM
It is hereby agreed that
of the Business Auto Coverage Form and Motor Carrier Coverage Form, and of the Auto
Dealers Coverage Form are amended to include the following:
(1) The coverage and/or limits of this policy, or
(2) The coverage and/or limits required by such written contract or written agreement.
All other terms and conditions of this Policy remain unchanged. 100019870721