July 26, 2024
Mr. David Jacobs
Director of Public Works
City of Salinas
200 Lincoln Avenue, Salinas, CA 93901
submitted via: [email protected]
SUBJECT: Performance Review of Republic Services – Phase 1 Report - Updated
Dear Mr. Jacobs,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached Phase 1 Report of our Performance Review of Republic Services (Republic). Our Phase 1 Report covers Task 2 of our scope of work and involves a Franchise Agreement Compliance Review and Regulatory Compliance Review of Republic’s franchised services in the City. The results of our Phase 2 Performance Review tasks will be submitted in a separate document upon completion of that work.
We wish to note that Republic has been very responsive to our requests for information and has provided us with much of what we asked for in an organized manner.
We appreciate the opportunity to submit our report to the City of Salinas (City). Should you have any questions regarding our report or need additional information, please feel free to reach out directly.
Sincerely,
Ryan Calkins | Operations Director
R3 Consulting Group, Inc.
559.917.3829 | [email protected]
1512 Eureka Road, Suite 220, Roseville CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com
Table of Contents
1 Executive Summary – Page 3
2 Introduction – Page 5
3 Background – Page 5
4 Findings and Recommendations – Page 6
4.1 Franchise Agreement Compliance Review - Areas of Non-Compliance
4.1.1 Work Order Response Time
4.1.2 Sustainability/Compliance Representative Staffing
4.1.3 Overweight Vehicles
4.1.4 Vehicle Replacement
4.1.5 Minimum Franchised Diversion Rate
4.2 Regulatory Compliance Review
4.2.1 OSHA Reportable Accidents and Injuries
4.2.2 CHP BIT Inspections
Attachments
1 Exhibit 10 Compliance Assessment Checklist
2 Republic’s Response to Phase 1 Executive Summary
3 Organizational Chart – Customer Service / Compliance Representatives 4 SB 1383 Route Review and Contamination Monitoring Document 5 Inventory of Collection Vehicles
6 Analysis of Replacement Vehicle Order Dates
7 List of Largest Commercial Accounts by Solid Waste Service Level
1 Executive Summary
Safety
[To be covered in Phase 2]
Customer Service
[To be covered in Phase 2]
Contract Compliance
We found that Republic is in compliance with many of the contractual performance requirements listed in Exhibit 10 of the Agreement (Administrative Charges and Penalties) (Attachment 1). We also found that Republic is not, or was not in compliance with the following contractual requirements for which administrative charges and penalties should apply:
1 Work Order Response Times
2 Sustainability / Compliance Representative Staffing
3. Overweight Collection Vehicles
4. Replacement of Collection Vehicles
Additional information on the above items is provided below, along with a brief summary of Republic’s response to our findings, which is provided in full as Attachment 2:
1. Work Order Response Times (a, h, i)1 - Republic is not actively reporting its response time for the following work order items:
▪ Complaints (a)
▪ Missed collections (a)
▪ Repair or replacement of damaged Containers (h)
▪ Delivery or exchange of Containers (i)
However, missed collection response time data provided by Republic for Quarters 3 and 4 of 2023 show roughly 50 instances of non-compliance with the requirement that missed accounts be collected no later than the following day. For both of those quarters, there were instances where it took Republic three (3) additional days to service a missed account. Assuming there were 50 instances of non-compliance per quarter (200 annually), administrative charges would be approximately $2,000, plus an additional $1,000 flat charge because missed collections exceed twenty (20) in 2023, for a total charge of $3,000 annually. Review of the remaining items will be conducted in Phase 2 pending performance data from Republic.
Going forward, we recommend that the City direct Republic to track and report its response times specific to each item in its quarterly reports. A calendar year accounting of that performance should also be summarized in the Annual Report, along with a calculation of any applicable administrative charges or penalties. The City should also include a requirement to track and report the response time performance of Large Item Collection service.
Republic’s Response:
Republic reported that it is happy to discuss with the City any desired changes or modifications to what is being reported.
2. Sustainability/Compliance Representatives (m) - Per the Agreement, Republic is to have at least four (4) dedicated full-time Sustainability Compliance Representatives (SCR), with those SCRs “…available as needed to meet with the City and conduct site visits to implement Recycling programs in the Service Area at least four days a week throughout the year” . In its October 27, 2023, letter to the City, Republic reported two full-time employees in that role when the contract
1 The letter references are the associated listings in Exhibit 10 – Administrative Charges and Penalties.
was signed and has since hired two additional SCR staff. One of those positions, however, is serving as Republic’s Municipal Sales Manager and is not functioning as an SCR. As such, we found that Republic is not in compliance with the required level of SCR staffing.2 If not cured within 30 days, this item is subject to administrative charges/penalties of $5,000 per month per vacant staff position.
Republic’s Response:
Republic continues to disagree with the City on this item. The total headcount that was negotiated and agreed upon was four (4) dedicated full-time employees in the sustainability and compliance department.
3. Overweight Collection Vehicles (t)3 - Overweight vehicles are a safety issue, and Republic has had ongoing problems effectively controlling overweight vehicles. Recent changes that it has implemented, however, have reduced the number of overweight vehicles significantly over the past two quarters, bringing them into compliance with the established standard in the Agreement.
While Republic has reduced the number of overweight vehicles, there are still occurrences of significantly overweight vehicles (e.g., 3,000+ lbs. (1.5 tons)). Republic needs to build upon its recent success minimizing the number of overweight vehicle occurrences and eliminating any occurrences that would be considered significantly overweight vehicles.
Republic’s Response:
Republic referenced its November 17, 2022, letter to the then City Manager that noted the ongoing struggles of the waste industry from the effects of the Covid-19 pandemic and its associated supply chain issues that created a nationwide shortage of solid waste drivers and trucks.
4. Replacement of Collection Vehicles (v) – pursuant to the franchise agreement, Republic is not allowed to operate a Collection Vehicle that is more than 10 years old. As of December 31, 2023, it had 19 Collection Vehicles; more than half its entire fleet, that were more than 10 years old.
There is an administrative penalty/charge of $500 per day per vehicle older than 10 years.
Failure to cure this non-compliance item within 90 days constitutes an “Agreement Default”. After discussing this item with Republic, R3 was provided with Republic’s vehicle replacement schedule, which provides for the replacement of all franchised vehicles that are more than 10 years old by December 2024.4 Although meeting its proposed replacement schedule will bring Republic into compliance with this item by the end of 2024, it does not meet the 90-day cure period at which “Agreement Default” applies.
Please note that although Republic is currently operating vehicles beyond the allowable ten-year period required under the Agreement, the vehicles are not considered a safety issue to the operator or the public.
Republic’s Response:
Republic referenced its November 17, 2022, letter stating that supply chain issues as a result of the pandemic have changed lead times (for vehicle acquisition once ordered). Republic also provided an updated vehicle maintenance list, vehicle replacement schedule, and corrective plan of action to address out of compliance vehicles ensuring procurement of replacement vehicles in advance of their required replacement dates.
Review of Republic’s Response
Republic has acknowledged and accepted responsibility for its non-compliance pertaining to its vehicle replacement requirements. Although supply chain issues were attributed to the delay in
2 This finding in no way takes fault with the level of effort of Republic’s Sustainability/Compliance Representatives, which appears to be reasonable.
3 This item has administrative charges/penalties of $500 per day per load after City has considered Contractor’s reason for excessive overweight vehicle occurrences.
4 Applying the $500 per day per vehicle administrative charge to 18 vehicles over 90 days = $810,000.
vehicle replacement, records indicated that late vehicle orders attributed to vehicle replacement delays. The updated vehicle maintenance list and replacement schedule show that four (4) of the vehicles were erroneously included in the original list and are designated “Scrap Vehicles” awaiting removal from Republic’s yard. The corrective action plan provided by Republic shows the procurement of all replacement vehicles and a timeline to achieve full compliance by the end of December 2024. Additionally, Republic has begun procuring new vehicles to replace those that are set to hit the 10-year mark in 2026.
Republic also provided an alternative plan of action to immediately address compliance issues if it is desired by the City. This plan includes swapping vehicles with other Republic sites within California in order to bridge the gap until replacements arrive. There are some key considerations for immediate vehicle replacement including vehicle model differences, fuel type changes, payload variations, potential route adjustments, and multiple vehicle transitions within a six-month period that could potentially effect driver morale and/or create unnecessary service disruptions.
The City must decide whether to accept Republic’s replacement schedule or require immediate compliance by utilizing compliant vehicles from other Republic sites.
In addition to the above items, Republic failed to meet the Minimum Franchised Diversion Rate for 2021, 2022, and 2023 based solely on the materials it directly diverts. However, some franchised accounts self-haul or backhaul recyclables and/or organics, and other parties collect recyclable materials from franchised accounts. Those practices are allowed per the City’s “Salinas Alternative Recycling Process” (SARP) as long as those parties do not charge for those services. We recommend that all materials that are self-hauled, backhauled, or diverted by other parties from franchised solid waste accounts be credited to Republic for the purpose of calculating its Minimum Franchised Diversion Rate.
There is a problem with obtaining SARP tonnages however as the Salinas Valley Solid Waste Authority, which administers the SARP, no longer tracks the number of tons diverted through that process. Unless or until SARP tonnage data becomes available, it is not possible to reasonably calculate Republic’s Minimum Franchised Diversion Rate.
2 Introduction
R3 Consulting Group (R3) was engaged by the City of Salinas (City) to conduct a Performance Review of the City’s franchised solid waste collection service provider, Republic Services (Republic). The City’s current Solid Waste Services Agreement (Agreement) with Republic, which began on October 1, 2021, has an initial term of approximately 15 years, expiring on June 30, 2036. As part of the Agreement, the City has the right to conduct up to three (3) Billing/Financial Audit and Performance Reviews (Performance Reviews) during the term of the Agreement.
The purpose of those Performance Reviews is to determine if:
▪ Customer billing rates have been properly calculated; ▪ Customers are billed the correct rate for the level of service each account is receiving; ▪ Republic has paid all required fees to the City; and
▪ Republic is in compliance with the diversion standards, reporting requirements, and other performance requirements of the Agreement.
For timing purposes, our Performance Review was broken into two phases. Phase 1 was divided into two parts:
1. Franchise Agreement Compliance Review; and
2. Regulatory Compliance Review.
Our Phase 1 Franchise Agreement Compliance Review focused on those aspects of Republic’s performance for which Administrative Charges and Penalties listed in Exhibit 10 of the Agreement apply.5 Our Regulatory Compliance Review included a review of Republic’s OSHA reportable accident and injury rate, and its performance under the California Highway Patrol’s BIT Program.
5 Additional review of contract compliance issues will be addressed as part of Phase 2 of R3’s review.
3 Background
Republic has served as the City's franchised hauler since the initial franchise agreement was effective on July 1, 2001. In 2010, Republic was awarded another exclusive franchise agreement to serve as the City's solid waste hauler. On October 1, 2021, Republic received another franchise agreement award as the City's sole solid waste hauler under the current Agreement.
Over the past two decades, Republic has been responsible for providing the City with solid waste hauling , education and outreach, and other related services, as detailed in the previous and current Agreements.
Performance reviews conducted under the prior Agreement identified significant issues with Republic's contract compliance. In 2018, R3, on behalf of the City, conducted a Performance Review of Republic . At the conclusion of the review, several key areas were identified where service improvement and transparency were needed. The identified areas included:
▪ Staffing
▪ Overweight Vehicles
▪ Container Replacement
▪ Post-Service Litter
▪ Financial Transparency
On March 25, 2019, the City issued a letter to Republic requiring the submittal of a Corrective Plan of Action to address the items identified above. On August 15, 2019, Republic submitted its Corrective Plan of Action to the City. Republic’s Corrective Plan of Action consisted of a cover letter, an individualized plan of action for each identified item (including timeframe and responsible party) , and a Gantt chart highlighting the proposed schedule of correction. Republic did not ultimately follow through on its commitments to correct these identified items.
The City conducted its own internal evaluation of the progress that Republic has made within the first full year of services under the new Agreement and identified the following most significant areas of non - compliance or underperformance, which do not represent the entirety of Republic’s failure to perform but are of most concern to the City:
1. Overweight vehicles
2. Staffing
3. Sustainability and Compliance Plan
On November 29, 2022, the City issued a written Notice of Assessment (NOA) to Republic regarding failure to comply and/or deliver elements contained within the Agreement. Republic took exception to the City’s interpretation of issues related to the above items. The City proposed a resolution, that Republic accepted, that included R3 conducting this Performance Review, Republic paying the City a “Community Enhancement Fee” of $458,000, and the City’s dismissal of all liquidated damage claims for 2021 and 2022 calendar years.
4 Findings and Recommendations
4.1 Franchise Compliance Review - Areas of Non-Compliance Attachment 1 provides an assessment of Republic’s compliance with the contractual requirements listed in Exhibit 10 for which administrative charges and penalties apply. As noted, we found that Republic is not or was not in compliance with the following Exhibit 10 contractual requirements, or in the case of “Work Order Response Times,” could not provide the information needed to determine compliance:
1. Work Order Response Times
2. Sustainability / Compliance Representative Staffing
3. Overweight Collection Vehicle
4. Replacement of Collection Vehicles
Each of the above items are discussed in more detail below.
4.1.1 Work Order Response Time (a, h, i)
The Agreement establishes response times within which Republic is to address each of the following work order items, with applicable administrative charges and penalties noted:
1. Complaints (a) - $100 per incident per Service Recipient
2. Missed collections (h) - in excess of twenty (20) in any Calendar Year $1,000 per Calendar Year, plus $10 per incident per day.
3. Repair or replacement of damaged Containers (i) - in excess of fifty (50) in any Calendar Year $1,000 per Calendar Year, plus $10 per incident per day.
4. Delivery or exchange of Containers (i) - $1,000 per Calendar year, plus $10 per incident per day.
In addition to the above, per Section 7.10.2 Frequency of Service: “Large Item Collection Service will be provided on the next regular Collection day if the request is received at least two (2) Work Days in advance of the next Collection day”. However, there is no administrative charge/penalty associated with that contractual requirement.
Republic is not currently reporting its response time for the above items and limited data was available at the time of our Phase 1 review. Data provided by Republic for Quarters 3 and 4 of 2023 however show roughly 50 instances of non-compliance with the requirement that missed accounts be collected no later than the following day. For both of those quarters, there were instances where it took Republic three (3) additional days to service a missed account. Assuming 50 instances of non-compliance per quarter (200 annually), administrative charges would be approximately $2,000, plus a $1,000 flat charge given that missed collections exceed twenty (20) in 2023, for a total charge of $3,000 annually. Review of the other items will be conducted in Phase 2, pending performance data from Republic.
Recommendations
Direct Republic to begin tracking its response time relative to each work order item and report its performance in its quarterly reports.6 The total number of each event should be reported, along with the number of those events that were not completed within the required time, if any. A calendar year accounting of performance should be provided in the Annual Report, along with a calculation of any administrative charges or penalties that apply.
4.1.2 Sustainability / Compliance Representative Staffing (m) Section 16.01.1 of the Agreement (Sustainability/Compliance Representative) (SCR) reads as follows:
Contractor will hire staff, including at least four dedicated full-time Sustainability/Compliance representatives, to at a minimum, conduct site visits to each commercial and MFD Waste Generator, provide contamination monitoring, prepare reports for CalRecycle and the City, make presentations to the general community, schools, HOAs, key business groups, environmental groups, Chamber of Commerce, and City Council, and provide outreach and education in support of meeting Franchise and CalRecycle Diversion requirements and to meet State mandates associated with AB 939, AB 341, AB 1826, AB 1594, SB 1016, and SB 1383, and all amendments and related subsequent legislation. The Sustainability/ Compliance Representative shall be available as needed to meet with the City and conduct site visits to implement Recycling programs in the Service Area at least four days a week throughout the year.
Attachment 3 provides a copy of Republic’s organizational chart that lists its SCR positions. Attachment 4 provides a document describing Republic’s SB 1383 Route Review and Contamination Monitoring that largely comprises what we understand to be the SCR’s major job responsibilities. What we take away from that information is that Republic is one (1) position understaffed with respect to its four required, dedicated, full-time, primarily operating in the field, SCR positions, and that the existing SCRs, appear to be largely focused on conducting SB 1383 Route Reviews, which we fully support. We do, however, recommend that the focus of future Route Reviews be on assessing the “additional diversion potential” for
6 Section 18.08 (Additional Reporting) states that: “Contractor must furnish City with any additional reports as may be reasonably required, such reports to be prepared within a reasonable time following the reporting period.”
each account and taking appropriate action to realize any such additional potential. Monitoring of recycling and organics bins for contamination should also be continued.
Recommendations
See Franchised Diversion Rate recommendation below.
4.1.3 Overweight Vehicles (t)
Republic’s overweight vehicles have been a reoccurring issue previously identified in R3’s 2018 Performance Review. In 2022, Republic reported that 1,649 (7.55%) of its loads were overweight, and in 2023, a total of 2,617 (13.48%) were overweight, exceeding the 5% contractual limit. In 2023, almost 1,000 loads were overweight by more than 3,000 pounds (1.5 tons) and 22 loads were overweight by more than 10,000 pounds (5 tons). The majority of those overweight loads were residential side loaders , which can damage the City’s residential streets, leading to increased street maintenance costs. This area of non-compliance has liquidated damages of $500 per load, after City considered Contractor’s reasons for excessive overweight vehicle occurrences.
In its 2023 1st and 2nd Quarterly Reports, Republic reported that it had implemented the following plan of action to address overweight vehicles, which is expected to produce the desired results no later than the 4th quarter of 2023:
a) Adding two commercial routes and one residential route. These new routes will reduce operational hours and allow us to balance the tonnage of our existing routes. b) Partnering with the City and Salinas Valley Recycles to implement SB 1383 programs at commercial businesses and multi-family properties. They anticipate that there will be a shift in tonnage from MSW to Organics as customers begin recycling their food waste. c) Actively recruiting new drivers and other key positions. The waste industry continues to struggle with the effects of the Covid-19 pandemic, which has created a nationwide shortage of solid waste drivers and professionals.
Changes that Republic has made have resulted in significant improvements (decreases) in the number of overweight vehicles. Table 2 below provides overweight vehicle data for each quarter of 2023 and the first quarter of 2024.
Table 2
The results for the most recent two quarters show significant improvement, with the total number of overweight vehicles less than the 5% level at which administrative charges apply. With that said, there were:
▪ Thirty-five (35) and thirty-four (34) loads, respectively, in the 4th quarter of 2023 and 1st quarter of 2024 that were more than 3,000 pounds overweight;
2024
Quarter
1 2 3 4 1
Total Loads 5,131 6,028 6,265 5,912 23,336 5328 Compliant Loads 3,824 4,746 5,459 5,693 19,722 5102 Non-Compliant Loads (1) 1,307 1,282 806 219 3,614 226 Percent Non-Compliant Loads 25% 21% 13% 4% 15% 4%
Overweight Loads (1-2,999 lbs.) 286 1,023 655 185 2,149 191 % of Total Loads 6% 17% 10% 3% 9% 4%
Overweight Loads (>3,000 lbs.) 454 357 151 34 996 35 % of Total Loads 9% 6% 2% 1% 4% 1%
Quarters Total
2023
(1) Non-Compliant Loads total does not equal the sum of Overweight Loads (1-2,999) + Overweight Loads (>3,000) for quarters 1 and 2 and Total
▪ Ten (10) and fifteen (15) loads, respectively that were more than 5,000 pounds (2.5 tons) overweight; and
▪ One (1) residential sideload load in the 4th quarter that was more than 10,000 pounds overweight (11,260 pounds (5.63 tons).
While Republic has not exceeded the 5% overweight threshold during the past two quarters, the number of loads that are more than 3,000 pounds overweight is still of concern. An effective overweight program should be able to more effectively control the amount any vehicle is overweight. The goal is to reduce both the total number of overweight loads and more importantly, minimize the number of overweight vehicle occurrences. While Republic has made great strides with respect to both objectives in the past two quarters, there is still work to be done.
Recommendations
Direct Republic to continue to report overweight vehicle information on a quarterly basis along with the percentage calculations shown in Table 2. Annual totals should be compared to historical results.
Additionally, going forward overweight loads should be classified as follows:
✓ 1-999 pounds overweight;
✓ 1,000- 1,099 pounds overweight;
✓ 2,000 – 2,999 pound overweight; and
✓ So on by 1,000-pound increments.
4.1.4 Vehicle Replacement (v)
Per Section 14.01.3 (Collection Vehicles): Contractor may not use any Collection vehicle that is more than ten (10) years old at any time during the term of the Agreement. Per Republic’s Inventory of Collection Vehicles, as of December 31, 2023, it reported a total of 36 vehicles, with 19 of those vehicles more than ten years old (2011, 2012, and 2013 model years). Administrative charges/penalties of $500 per day apply for non-compliance up to 90 days. If not cured in 90 days, that constitutes an “Agreement Default”.
In response to our review of this item with Republic, they provided a vehicle replacement schedule that plans for the replacement of all franchised vehicles that are more than 10 years old by December 2024 (Attachment 5).7 While meeting that replacement schedule will bring Republic into compliance with this item by the end of 2024, it does not meet the 90-day cure period at which “Agreement Default” applies.
Republic referenced its lack of compliance with its vehicle replacement requirement on supply chain issues. While supply chain issues may have increased the time between the vehicle purchase date and delivery date, Republic’s records shown that it failed to order many of the replacement vehicles that it needed until after the date they were needed (Attachment 6). As such, supply chain issues have no bearing on Republic’s lack of compliance.
Republic provided an updated vehicle maintenance list, vehicle replacement schedule, and corrective plan of action to address out of compliance vehicles. Four (4) of the vehicles from the original list are designated as “Scrap Vehicles” and as such, are out of operation and are set for removal from Republic’s yard. Seven (7) out of compliance vehicles are designated as “Spare Vehicles” (2 Commercial Front Loaders, 3 Residential Side Loaders, and 2 Roll-Off) and although not assigned to a regular route, are used in emergency situations and are required to be replaced in accordance with the terms of the Agreement. The remaining eight (8) out of compliance vehicles are Residential Side Loaders that were required to be replaced in 2023.
Republic has acknowledged the out of compliance vehicles referenced above and has provided the City with a corrective plan of action that is already underway. One (1) Commercial Front Loader is scheduled for replacement by the end of July 2024. All remaining out of compliance vehicles have been procured and are scheduled for replacement by the end of December 2024. Additionally, Republic is proactively
7 Applying the $500 per day per vehicle administrative charge to 18 vehicles over 90 days = $810,000.
monitoring future vehicle replacement dates and has procured replacements for vehicles set to eclipse the terms of the Agreement in 2026.
If the City would prefer immediate compliance rather than accept Republic’s replacement schedule above, they have identified vehicles at other Republic sites within California that meet the 10-year requirement. These vehicles can be utilized to bridge the gap until the new replacements arrive over the next few months. However, these replacement vehicles are different models than what the drivers f or the City currently operate and would therefore require driver training specific to those vehicles prior to operation, which could lead to route delays and/or productivity issues. Additional items of note that could affect current operations in the event of implementation of new vehicles include:
• Different style vehicles than what they are currently running. o Currently CNG vs Proposed Diesel
• Max Payloads are different due to the type of vehicles. o Drivers will need to establish new cutoff points (points at which the route separates loads) which could cause additional overweight occurrences. • Impacts to driver/employee morale.
o Changing vehicle types twice within a six (6) month period (immediately, and then again when the replacements arrive) could potentially have negative effects on the drivers.
Recommendations
Pending discussion with the City.
4.1.5 Franchised Diversion Rate (r)
Per Section 5.03.1: For Calendar Years 2021, 2022, and 2023, the minimum annual Franchised Diversion Rate requirements will be forty percent (40%) and CalRecycle Diversion Standard will be fifty-five percent (55%). Those figures increase to 50% and 65%, respectively, for Calendar Years 2024 and 2025, 55% and 70% for Calendar years 2026 and 2027, and 60% and 75% for Calendar Years 2028 and beyond.
We are unable to determine Republic’s compliance with its Minimum Franchised Diversion Rate due to the lack of tonnage data for the City’s SARP program that should be attributed to Republic for purposes of calculating that rate. With that said, we did analyze Republic’s diversion performance over the current Term of the Agreement. Table 3 below provides historical diversion rates by line of business for 2021 through 2023.
Table 3
As shown, the residential, commercial, industrial, and overall diversion rates have all increased modestly over that time span (15% overall from 2021 to 2023).
While SCRs are conducting Route Reviews, the effectiveness of those efforts at increasing diversion has been limited. If Republic is to make meaningful increases in diversion, it needs to focus SCR efforts on recovering material for those accounts that still have material quantities of recyclables and organic material in their solid waste containers.
%
% change
v
prior yr.
%
% change
v
prior yr.
%
% change
v
prior yr.
%
% change
v
prior yr.
%
% change
v
prior yr.
2021 40.95% 17.21% 12.34% 57.58% 26.42%
2022 42.13% 2.9% 18.55% 7.8% 16.03% 29.9% 51.90% -9.9% 28.53% 8.0% 2023 43.33% 2.8% 19.76% 6.5% 18.37% 14.6% 57.61% 11.0% 30.17% 5.7% Res Com Ind Bulky Total
Republic tracks solid waste, recycling, and organic waste service levels for its commercial accounts and reports that information in its Annual Report. That information can serve as the framework for efforts to increase the recovery of recyclable and organic materials that are currently disposed of. Attachment 7 provides a list of the largest commercial accounts ranked based on their solid waste service levels.
Collectively, those generators account for slightly more than 25% of total franchised solid waste service volume.
Of significant note concerning the Franchised Diversion Rate, per Republic’s 2023 Annual Report there are a total of 1,036 “covered” accounts that are not receiving organic collection service (38% of the 2,744 total covered accounts). Requiring all accounts that are not exempt from SB 1383 organic services to subscribe to those services ASAP should be a priority of Republic and the City.
Recommendations
▪ Republic should conduct a new round of commercial Route Reviews starting with those accounts listed in Attachment 7. For each account, an assessment should be made of the percentage of each account’s solid waste bin that includes recyclable material and organics (i.e., an accounting of the additional (remaining) diversion potential). Assessing recyclable and organic material contamination should continue, however the priority focus at this point should be on assessing the additional diversion potential of each commercial account Accounts should be prioritized based on the amount of their ”additional diversion potential. T hose accounts with material amounts of “additional diversion potential” should be notified that they are not in compliance with SB 1383 and provided with support to bring them into compliance. Follow- up Route Reviews should be conducted until those accounts are effectively diverting the recyclable and organic material they generate. Similar actions should be applied to all other commercial accounts. The “additional diversion potential” of each account should be added to the Attachment 7 database and updated as that potential is realized. ▪ Future contamination notice accounting and reporting should clearly specify the nature of the contamination notices (i.e., the presence of material quantities of recyclable and/or organic material in the solid waste containers, and/or contamination of recyclables and/or organics).
4.2 Regulatory Compliance Review
4.2.1 OSHA Reportable Accidents and Injuries
[To be covered in Phase 2]
4.2.2 CHP BIT Inspections
The Basic Inspection of Terminals (BIT) Program inspections have been conducted by the CHP since 1965 as a tool to determine if motor carriers are complying with Motor Carrier Safety regulations, particularly with regard to the legal requirement to maintain commercial motor vehicles according to a scheduled maintenance (preventive maintenance) program. The CHP's role is to determine whether carriers' selected maintenance schedules are adequate to prevent collisions or mechanical breakdowns involving the vehicles, and all required maintenance and driver records are prepared and retained as required by law. Republic’s 271 Rianda Street terminal received a “Satisfactory” rating for both 2022 and 2023. It is worth noting that despite Satisfactory BIT ratings for both 2022 and 2023, there were several instances during that period in which CHP Driver/Vehicle Examination Report(s) list discovered violations during individual vehicle inspections. Our understanding is that all discovered violations have since been corrected.
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