City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 4.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Receive and File Emergency Procurement and Approval Agreement with Los Angeles County Sanitation Districts for Emergency Solid Waste Disposal Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 and 15308 of the California Environmental Quality Act (CEQA) Guidelines;
2. Receive and file emergency procurement report on emergency procurement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility for emergency landfill disposal services for the Public Works Department. The emergency procurement was made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $1,800,000 (including a 20% contingency) through March 31, 2025; and
3. Authorize the City Manager to negotiate and execute an agreement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility for landfill disposal services for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (g) and is for a total amount not to exceed $38,022,585 (including a 20% contingency) for 5 years, with future year funding contingent on Council budget approval.
Summary
On December 31, 2024, Chiquita Canyon, LLC, the City’s contracted landfill, gave a one-day notice that the facility would cease active waste disposal operations effective January 1, 2025 (Attachment A). The abrupt closure of the Chiquita Canyon Landfill created an urgent, unforeseen event that threatens the general public health, safety, and welfare (SMMC Section 2.24.220(d)). As a result, the Public Works Department’s 2 of 6
Resource Recovery and Recycling (RRR) Division relied on emergency procurement procedures to utilize the services of the Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility (LACSD) to provide interim landfill services until a contract can be executed. Pursuant to Santa Monica Municipal Code Sections
2.24.250(g), staff is submitting, as a receive and file, this report of the Purchasing Manager’s authority to shorten or waive all required notice periods and competitive solicitation procedures for this purchase, issued due to this emergency in fact, as long as within thirty days after the purchase or contract is made, the City Manager submits in writing to the City Council a full explanation of the emergency circumstances under which the purchase or contract was made. Although the thirty-day deadline has lapsed, it is important to note that the deadline coincided with a separate declared emergency (Regional Fires) that sequestered most of the time and resources across the city organization, and the City is demonstrating a good faith effort to comply with the statute under difficult circumstances.
Discussion
The City generates approximately 63,500 tons (127 million pounds) of landfill trash annually that was previously sent to the Chiquita Canyon landfill facility in Castaic, California, for over 15 years (Attachment B). Due to operational, seasonal, and environmental issues at Chiquita Canyon that periodically limited or delayed the City’s access to the facility, staff identified four viable backup facilities within the region in a report to Council on May 27, 2024 (Attachment C). These facilities were only meant to be utilized on an as-needed basis, from a day to a few days, when access to Chiquita was occasionally limited. However, the abrupt, permanent closure of Chiquita Canyon created an unanticipated public health and safety emergency. Therefore, it was necessary to immediately transition to one of the four viable backup facilities, Los Angeles County Sanitation District’s – Puente Hills Material Recycling Facility (LACSD), as the City’s primary contracted landfill beginning January 1, 2025.
Landfill facilities are capped at a mandated level, and once a facility reaches its capacity for the day, it is precluded from accepting any additional solid waste. As one of the largest landfills in the region, Chiquita Canyon had many customers, all of whom are 3 of 6
now contending for an allotment of the remaining regional landfill capacity. In addition, the recent regional fires require a massive cleanup effort that will place additional stressors on the solid waste disposal market in the region. Thus, it is imperative to secure a long-term solid waste disposal solution for the City by entering into an emergency landfill services contract with LACSD.
Chiquita Canyon’s rate was $38 per ton. Staff contacted all four of the viable backup facilities, and all provided pricing came in substantially higher than Chiquita Canyon’s price. LACSD offered a flat rate of $90 per ton with only CPI increases for the next five years. Staff recommends LACSD as the most prudent option due to its proximity, pricing, and stability as a government-run facility in the heavily-regulated solid waste management industry. Staff does not anticipate an immediate impact to solid waste rates at this time but is actively analyzing the impact to the RRR Fund in future years, as this significant increase in landfill disposal services expenses was unexpected and therefore, not accounted for in the previous solid waste rate study.
Vendor Selection
Exception to Competitive Bidding
Staff requested and received procurement approval from the Procurement Manager for the Los Angeles County Sanitation District’s – Puente Hills Material Recycling Facility (LACSD) to provide interim emergency landfill disposal services as an exception to competitive bidding per Municipal Code 2.24.250 (g). The abrupt closure of the City’s contracted landfill facility required contractor assistance to immediately take on the acceptance of the City’s landfill trash and mitigate a potential health and safety crisis. In a previous analysis of regional landfill facilities, staff had recommended LACSD as the primary backup landfill facility based on its stability as a government-run agency, proximity, and pricing. Not having this option would significantly interfere with the City’s refuse collection operation, affecting both public health and the Council’s Clean and Safe Santa Monica priority. The City has used this facility in the past with positive results. It is also one the four closest landfills available for use by the City, which lowers hauling costs. Additionally, they have the capacity to 4 of 6
accept the proposed volumes of landfill trash from the City. g. Due to circumstances outside of the control of the City, would result in a substantial economic loss, substantially compromise a legal position, or substantially interfere with a required City operation.
Environmental Review
The emergency procurement for landfill trash disposal service is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15308. Section 15301 of the CEQA State Guidelines provides Class 1 (Existing Facilities) exemption for projects that consist of the operation, repair, maintenance, leasing, licensing, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the existing or former use. The emergency procurement for landfill trash disposal would not result in any modifications to existing landfills or disposal facilities.
Solid waste disposal and diversion services currently exist, and the emergency procurement would not expand or materially change existing landfill facilities or waste disposal operations. The selected vendor is required to comply with existing solid waste regulations and provide similar services to those currently being required and provided.
Therefore, the project is categorically exempt as set forth in Section 15301 of the CEQA State Guidelines.
The project is also exempt pursuant to Section 15308 of the CEQA Guidelines. Section 15308 (Class 8 Actions for Protection of Environment) exempts actions taken by a regulatory agency, as authorized by state and local ordinances, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment. The emergency procurement would ensure City compliance with solid waste disposal regulations for the protection of the environment including:
• Integrated Waste Management Act (IWMA) of 1989 requires cities to permit and regulate solid waste handling;
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• Assembly Bill 341 (2011) requires both businesses that generate four cubic yards or more of solid waste and multifamily projects with five units or more to participate in a recycling program;
• Assembly 1826 (2014), requires businesses, including public entities and multifamily projects, to recycle their organic waste. Businesses must develop strategies to reduce and/or arrange for recycling services for the following types of organic waste: food waste, food-solid paper, green waste, landscaping and pruning waste, and non-hazardous wood waste;
• Senate Bill 1383 (2016) established methane emission reduction targets for California, requiring a 50 percent reduction of organics sent to the landfill by 2020, and a 75 percent reduction by 2025; and
• City’s Zero Waste Plan (Updated 2019) provides an environmental policy framework to guide the City on its path to achieving zero waste.
The emergency procurement requires the landfill disposal vendor to comply with both State and local regulations for disposing of waste and ensures the protection of the environment since the contract contains compliance requirements with State mandates.
Therefore, the project is categorically exempt as set forth in Section 15308 of the CEQA State Guidelines.
Past Council Actions
Meeting Date Description
11/15/2022
(Attachment B)
Original bid and award of agreement with Chiquita Canyon, LLC for landfill trash disposal services
05/14/2024
(Attachment C)
Award of agreements for backup landfill trash disposal
services.
Financial Impacts and Budget Actions
Staff seeks acknowledgement that available funding from the Resource Recovery and Recycling Fund was approved for an interim emergency procurement with Los Angeles County Sanitation Districts – Puente Hills Material Recycling Facility for emergency interim landfill services, and also seeks authority to approve funding from the Resource Recovery and Recycling Fund to award a contract with Los Angeles County Sanitation 6 of 6
Districts – Puente Hills Material Recycling Facility for contracted landfill disposal services.
In FY 2024-25, staff anticipates being able to absorb the cost increase in its current budget. Staff will incorporate the increase as part of the FY 2025-27 Biennial Budget.
Emergency Procurement Request
LACSD – Puente Hills Material Recycling Facility
Method of
Payment
FY 2024-25
Budget Request
Amount
Department
Account #
Future Years
Amount Total Amount
Direct Entry
Invoices $1,800,000 54500002.523010 $0 $1,800,000
Contract $1,800,000 54500002.523010 $36,222,585 $38,022,585 Total $3,600,000 $36,222,585 $39,822,585
Future year funding is contingent on Council budget approval.
Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Chiquita Canyon Landfill Closure Notice
B. Chiquita Canyon, LLC CSA Contract
C. May 14, 2024 Staff Report