City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-02071 1/14/2025 Consent Item 13.
Approval of Commercial Waste Franchise Agreement with Precizion Recycling & Disposal, LLC for Commercial Solid Waste Collection and Hauling
File ID: 2024-02071
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, 2025, with four additional one-year renewal options between the City of Sacramento and Precizion Recycling & Disposal, LLC.
Contact: Erin Treadwell, Program Manager, (916) 808-4934, [email protected]; John Febbo, Integrated Waste General Manager, (916) 808-4949, [email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Precizion Recycling & Disposal, LLC Non-Exclusive Commercial Solid Waste Franchise Agreement 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 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. Precizion Recycling & Disposal, LLC has applied for a franchise hauler agreement.
The City’s franchise hauler application and approval process includes a financial and legal background review, documentation of adequate insurance, and diversion plans.
File ID: 2024-02071 1/14/2025 Consent Item 13.
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. Precizion Recycling & Disposal, LLC 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: Not Applicable
Rationale for Recommendation: The agreement (Attachment 2) has met the application requirements set forth in the City Code and staff recommends that Precizion Recycling & Disposal, LLC be awarded a franchise agreement.
Financial Considerations: The franchise agreement stipulates that the waste hauler will be charged a franchisee 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.