GVED City ofsouth Gate Item No. 10

Transcription

1 $58311 GVED City ofsouth Gate Item No. 10 JUN 7 Zt7 CITY COUNCIL A CITY OF SOUTH GATE OFFICE OF THE CITY MANAGER For the Regular Meeting of. June 13, 2017 L Originating Department: Public Works Department Head: City SUBJECT: RATIFICATION OF AMENDMENT NO. 2 TO CONTRACT NO WITH USA WASTE MANAGEMENT TO INITIATE ORGANIC WASTE COLLECTION SERVICES TO COMPLY WITH AB 1826 PURPOSE: To ratify Amendment No. 2 with USA Waste Management (Waste Management) to initiate organic waste collection services in accordance with Assembly Bill No. (AB) 1826, for which USA Waste Management gained the rights to an exclusive franchise in January 25, AB 1826 requires municipalities to offer organic waste collection services to businesses, (inclusive of multi family dwellings with five or more units) that produce 4 cubic yards or more. RECOMMENDED ACTIONS: a. Ratify Amendment No. 2 to Contract No with USA Waste Management of California, Inc., dba Waste Management of Los Angeles, to initiate implementation of organic waste collection services to comply with Assembly Bill No. 1826; and b. Authorize the Mayor to execute Amendment No. 2 in a form acceptable to the City Attorney. pjfiscal IMPACT: The General Fund will receive approximately 15% of the revenue generated by USA Waste Management (Waste Management) for organic waste collection services. Waste Management estimates that their revenue could reach up to $46,181 in Fiscal Year 2017/18, which would result in $6,927 in additional revenue to the City. On May 9, 2017, the City Council approved the following rates for organic waste collection services: Service quency On e time per Week LTwoj WJ Three timesj Week Bin Size 64 gallon container Collection $20.59 $41.18 $61.77 Processing $37.72 $75.44 $ Total $11662 Each Additional Cart $ $ $17492 Staff has compared these rates to those provided by Waste Management to neighboring cities such as Carson, Cerritos, Diamond Bar, Dowriey, Paramount and Rolling Hills Estates. The rates offered in the South Gate area is reasonable. Attachment G contains a copy of the comparative rates. ANALYSIS: On May 9, 2017, the City Council preliminarily approved Amendment No. 2 with Waste Management to initiate organic waste collection services and adopted Resolution No to establish the service rates. Final approval was contingent upon understanding Waste Management s rights to provide the service as an exclusive franchisee. After legal review, it has been determined by the City Attorney s Office that Waste Management does hold an exclusive franchise for organic waste

2 collection services. The exclusive franchise was awarded to Waste Management by the City Council in January Amendment No. 2 will serve to authorize Waste Management to initiate the services in accordance with AB In light of the exclusive franchise, businesses can comply with AB 1826 under the following options: (1) subscribing to service with Waste Management, (2) by self-hauling, (3) on-site organic waste composting, (4) selling or donating its recyclable organic waste materials. It is noted that businesses will have the option to not subscribe to services with Waste Management; however, they will not have the option to hire another service provider for pay. Additionally, businesses that opt out of organic waste collection services through diverting their materials as described above, will need to report to the Department of Public Works the tonnage that is being diverted on an annual basis, in order to assure that the City obtains diversion credit with CaiRecycle in the annual diversion report to the State. AB 1826 requires businesses (inclusive of multi-family dwellings with five units or more) that produce 4 cubic yards or more to recycle organic waste. AB 1826 also requires municipalities to offer organic waste collection services. BACKGROUND: As of April 1, 2016, AB 1826 requires a business that generates a specified amount of organic waste per week to arrange for recycling services for that organic waste in a specified manner, Business is defined in AB 1826 as,...a commercial or public entity, including, but not limited to, a firm, partnership, proprietorship, joint stock company, corporation, or association that is organized as a for-profit or nonprofit entity, or a multifamily residential dwelling of 5 units or more. Organic waste means food waste, green waste, landscape and pnming waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. AB 1826 impacts jurisdictions, qualifying businesses and multifamily dwellings with 5-units or more, as follows: Jurisdictions: AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an organic waste recycling program to divert organic waste from the businesses subject to this act. This bill would authorize a local governmental agency to charge and collect a fee from an organic waste generator to recover the local governmental agency s costs incurred in complying with this act. Businesses: Since April 1, 2016, AB 1826 requires a business that generates eight cubic yards or more of organic waste per week to arrange for recycling services of that waste. The bill decreased the amount of organic waste from eight cubic yards or more to four cubic yards or more on January 1, The bill would also require a business that generates four cubic yards or more of commercial solid waste per week, on and after January 1, 2019, to arrange for organic waste recycling services and, if CalRecycle makes a specified determination, would decrease that amount to two cubic yards or more of solid waste on or after January 1, Waste Management estimates that, currently, there are a total of 56 businesses and 10 multi-family properties that have been identified as needing to be in compliance with AR Under the proposed organic waste service fees, a total of $46,181 could be generated annually; generating $6,927 in revenue for the City. The total revenue is dependent upon participation through Waste Management. Waste Management representatives are ready to begin to offer service to the businesses and multi family properties that need to comply with AB As the first steps, Waste Management will begin an outreach process with the identified business/multi-family properties to offer them the organics collection service as well as on-going education/training efforts to assure that all organic material is being diverted from the waste cart to organics.

3 Waste Management has been the City s waste hauler since August 13, On May 10, 2005, the City Council approved Contract No with Waste Management for Commercial/Industrial and Residential Refuse Collection and Recycling Services, through December 13, The City Council later approved Amendment No. 1 and amended Contract No on January 25, 2011 and on August 14, 2012, which, among other things, extended the contract to December 31, 2022, and gave Waste Management the exclusive rights to collect, transport, recycle and dispose of Solid Waste, Recyclable Material, Green Waste, Food Waste (Organic Waste) and Construction and Demolition Waste. ATTACHMENTS: A. Proposed Amendment No. 2 B. Amendment No. C. Amended Contract No (Copy available for review in the City Clerk s Office) 1 D. Contract No (Copy available for review in the City Clerk s Office) E. May 9, 2017 Agenda Bill F. AB 1826 G. Organic Waste Rate Comparison VHF:lc

4 Amendment No. 2 to Contract No SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SOUTH GATE AND USA WASTE OF CALIFORNIA, INC. FOR COMMERCIAL/INDUSTRIAL AND RESIDENTiAL REFL.JSE COLLECTION AND RECYCLING SERVICES This Second Amendment to Agreement for Commercial/Industrial and Residential Refuse Collection and Recycling Services (hereinafter, the Second Amendment ), is entered into and executedas of March 14, 2017, by and between the CITY OF SOUTH GATE (hereinafter, the City ), a municipal corporation, organized and existing under the laws of the State of California, and USA WASTE OF CALIFORNIA, NC dba WASTE MANAE..4ENT OF LOS ANGELES, a Delaware Corporation (hereinafter, the Contractor ). RECITALS: This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties: WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (Public Resources Code Section 49100, et çq.; hereinafter the Act ) established a solid waste management process that requires cities and other local jurisdictions to implement source reduction, reuse, and recycling as integrated waste management practices; and WHEREAS, the Contractor and City entered into that certain agreement entitled Franchise Agreement between the City of South Gate and USA Waste of California, Inc. for Commercial/Industrial and Residential Refuse Collection and Recycling Services; ( Agreement ), dated January 25, 2011, and a First Amendment to Agreement for Commercial/Industrial and Residential Refuse Collection and Recycling Services ( First Amendment ) dated August 14, 2012; and requirements of AB 341; and WHEREAS, the First Amendment included provisions to implement the 1 4

5 Amendment No. 2 to Contract No WHEREAS, the City and the Contractor now desire to include provisions to implement the requirements of AB 1826; and WHEREAS, in accordance with California Public Resources Code Section 40059(a)(2), the City has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transportation, recycling, processing, and disposal of solid waste, and for other services related to meeting the diversion goals of AB 939, AB 341, AB 1826 and other requirements of the California Integrated Waste Management Act. NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged, the parties agree as follows: 1. Section 1.28 of the Agreement is to be deleted in its entirety and replaced with the following: 1.28 FOOD WASTE means solid waste comprised of animal, fruit or vegetable matter that attends the preparation, consumption, decay, dealing in or storage of meats, fish, fowls, fruits or vegetables, and compostable paper used in food service. 2. New Section is added to the Agreement, as follows: ORGANIC WASTE or ORGANICS means food waste and green waste, whether collected separately or commingled into the same bin, cart or roll-off box. 2 5

6 Amendment No. to Contract No Section 5.6 of the Agreement is to be deleted in its entirety and replaced with the following: 5.6 Recyclable Material and Organic Waste Contractor shall make available collection of recyclable material from commercial/industrial accounts requesting such service, using bins, roll-off boxes or carts, depending upon the account s needs In addition, Contractor shall cooperate and assist City in meeting the requirements of AB 341, including, but not limited to, identifying Commercial Premises and multiple-unit residential dwelling units of five (5) units or more, that are required to receive recycling service, reporting on efforts to provide service at such premises, and a quarterly listing of such premises that have declined to accept recycling service to facilitate the City s exercise of its enforcement powers Contractor shall collect and remove all recyclable material placed in containers from every commercial/industrial premises receiving recyclable material collection service at a frequency required to handle the materials generated by the commercial or industrial premises. Notwithstanding the above, any putrescible or degradable recyclable material shall be collected and removed from any commercial/industrial premises not less often than once per week. The rates for providing commercial recycling service are set forth in the Exhibit A statement of supplemental rates attached hereto Contractor shall make available collection of organic waste from commercial/industrial accounts requesting such service, using bins, roll-off boxes or carts, depending upon the account s needs. 6

7 Amendment No. to Contract No In addition, Contractor shall cooperate and assist City in meeting the requirements of AB 1826, including, but not limited to, identifying commercial/industrial premises and multiple-unit residential dwelling units of five (5) units or more, that are required to receive organics service, reporting on efforts to provide service at such premises, and a quarterly listing of such premises that have declined to accept organics service to facilitate the City s exercise of its enforcement powers Contractor shall collect and remove all organic waste placed in containers from every commercial/industrial premises receiving organics service at a frequency required to handle the materials generated by the commercial or industrial premises. The rates for providing commercial organics service is set forth in the Exhibit A statement of supplemental rates attached hereto. 4. Except as provided herein, the terms and conditions of the Agreement and the First Amendment remain in full force and effect. [Remainder of page left blank intentionally] 4 7

8 ATTEST: Amendment No. 2 to Contract No TO EFFECTUATE THIS AGREEMENT, each of the parties has caused this Second Amendment to be executed by its duly authorized representative as of the date set forth below the authorized signature. CITY OF SOUTH GATE By: Maria Davila, Mayor Carmen Avalos, City Clerk (SEAL) Date: APPROVED AS TO FORM: Ra1l F. Salinas, City Attorney USA WASTE OF CALIFORNIA, INC., a Delaware corporation By: Larry Metter, President Date: 5

9 Amendment No. 2 to Contract No EXHIBIT A Statement of Supplemental Rates Organic Waste Orpanics Service 64 gallon container Bin Size / Freq Collection $20.59 $41.18 $61.77 Processing $37.72 $75.44 $ Total $58.31 $ $ Each Additional_Cart $52.13 $ $ cy rate/month Collection $81.27 $ $ Processing $ $ $ Total Each Additional Cart $ $ $ $ $ $

10 AMENDMENT NO. I to Amendment No. Contract No TO AGREEMENT FOR COMMERCIAL/INDUSTRIAL AND RESIDENTIAL REFUSE COLLECTION AND RECYCLING SERVICES WITH USA WASTE OF CALiFORNIA, INC. 1 THiS AMENDMENT NO. I ( Amendment No. i ) TO AGREEMENt FOR COMMERCIAL/INDUSTRIAL AND RESIDENTIAL REFUSE COLLECTION AND entered into and executed RECYCLING SERVICES (hereinafter, the Agreement ). Augi4 2012, by and between the CITY OF SOUTH GATE (hereinafter, the City ), municipal corporation, organized and existing under the laws of the State of California, and USA WASTE OF CALIFORNIA, INC dba WASTE MANAGEMENT OF LOS ANGELES, Delaware Corporation (hereinafter, the Contractor ). is as of a a RECITALS: This Agreement of the parties: is entered into on the basis of the following facts, understandings and intentions WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of hereinafter the Act ) established a 1989 (Public Resources Code Section 49100, et q.; solid waste management process that requires cities and other local jurisdictions to implement source reduction, reuse, and recycling management practices; and as integrated waste WHEREAS, the Contractor and City entered into that certain agreement entitled Franchise Agreement between the City of South Gate and USA Waste of California, Inc. for Commercial/Industrial and Residential Refuse Collection and Recycling Services; ( Agreement ), dated January 25, 2011; and WhEREAS, the Cit) and the Contractor hae completed discussions regarding the implementation of a commercial recycling service rate. as contemplated in the Agreement; and WHEREAS, the City and the Contractor desire to include provisions to implement the requirements of AB 341; and a implement commercial solid waste recycling program meeting specified elements but would not require WHEREAS, the jurisdiction expands a a to the revise bill would require its a jurisdiction, on and after July 1, 2012, source reduction and recycling element if the jurisdiction adds meet this requirement. The commercial solid waste rec.cling program local agency to to a fee to bill or would authorize charge and collect complying with the commercial solid waste recycling program requirements: and recover the local agency s costs incurred in from a commercial waste generator WHEREAS, the City and the Contractor desire to modify certain service requirements; and to i6

11 Amendment No. to Contract No WHEREAS, in accordance ith California Public Resources Code Section 40059(a)(2). the City has determined that the public health. safety. and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transportation. recycling, processing, and disposal of solid waste, and for other services related to meeting the diversion goals of AB 939, AB 341 and other requirements of the California Integrated Waste Management Act. NOW, THEREFORE, for good and valuable consideration, the receipt of which is acknowledged, the parties agree as follows: 1. Section 5.6 of the Agreement is to be deleted in its entirety and replaced with the follov ing: 5.6 Recyclable Material Contractor shall make available collection of recyclable material from commercial/industrial accounts requesting such service, using bins, roll-off boxes or carts, depending upon the account s needs In addition, Contractor shall cooperate and assist City in meeting the requirements of AB 341, including, but not limited to, identifying Commercial Premises and multiple-unit residential dwelling units that are required to receive recycling service, education and outreach to all properties, reporting on efforts to provide service at such premises, and a quarterly listing of such premises that have declined to accept recycling service to facilitate the City s exercise of its enforcement powers Contractor shall collect and remove all recyclable material placed in containers from every commercial/industrial premises receiving recyclable material collection service at a frequency required to handle the materials generated by the commercial or industrial premises. Notwithstanding the above, any putrescible or degradable recyclable material shall be collected and removed from any commercial/industrial premises not less often than once per week. The rates for providing commercial recycling service are set forth in the Exhibit A statement of supplemental rates attached hereto. 2. Section of the Agreement is deleted in its entirety and replaced with the following: Drop-off. Contractor shall accept bulky items from any residential occupant at Contractor s Transfer Station facility during normal operating hours at no charge. In addition, residential property managers and management companies are entitled to deliver bulky items on behalf of residential occupants at Contractor s material recovery facility during normal operating hours at no charge up to a certain number of times each calendar year based on the number of units managed, in accordance with the following formula: 2 41

12 100 Amendment No. I to Contract No Dwelling Units up to 5 times per year. with a maximum of 10 items 26 per trip; Dwelling Units up to 10 times per year, with a maximum of 10 items per trip; More than 100 Dwelling Units up to 15 times per year, with a maximum of 10 items per trip Additional deliveries by property manager or management companies are subject to the uniform standard tipping charge at Contractor s transfer station facility 3. Section 7.2 of the Agreement is deleted in its entirety and replaced with the following: 7.2 Contractor shall provide 6 40 cubic yard roll-off boxes for the collection of refuse in such areas of the City as may be designated from time to time by the City Manager. Roll-off boxes shall be emptied by Contractor on an on-call basis. The City shall pay the costs of such services to Contractor at the rate specified in Exhibit A, except that Contractor agrees to waive any service or disposal charges with respect to roll-off boxes collected at the City facility located at 9545 Salt Lake Avenue, South Gate, CA. 4. Except as provided herein, the terms and conditions of the Agreement remain in full force and effect. TO EFFECTUATE THIS AGREEMENT, each of the parties has caused this Agreement to be executed by its duly authorized representative as of the date set forth below the authorized signature. CITY CITY OF SOUTH GATE IL/ /f9tt ATTEST: By: Carmen Avalos, City Clerk (SEAL) / Date: W. 11. (Bill) De Witi. Mayor J j APPROVED AS TO FORM: CONTRACTOR USA WASTE OF CALIFORNIA, INC., a Delaware corporation F. Salinas, City Attorney By: Larr1tter, ce )resident F, /, 7 Date: 3 12

13 EXHIBIT A Amendment No. I to Contract No Statement of Supplemental Rates Commercial Recycling 4

14 Exhibit A South Gate Commercial Recvclino Rates August Commercial Recvclina Rate Commercfal Rey Ratepayer Charges Bin Size IX WE 2X WE 3X WE 4X WE SX WE 6X WE 35 gallon contafrier $ gallon container $16.39 $ gallon Container $19.12 $38.24 $ cy rate/month $5331 $86.09 S $ cy rate/month $62.89 $99.19 $ $17032 $ $ cy rate/month $65.99 $ $ $ $ $ cy rate/month $90.27 $ $ $ $ $ Current trash collection rote - Commerdal Service as of July 12OI2 Bin SIze 1XWI( 2X WE 3X WE 4X WE SX WE 6X WE 64 gallon container $26.07 $52.14 $78.21 $ $ $ ailon container $32.76 $65.52 $9828 $ $ $ cy rate/month $ $ $ $ $ $ cv rate/month $ $ $ $ $ $ cy rate/month $15287 $ $ $ $ $ S cy rate/month $ $ $ $ $ $ cy rate/month $ $ $ $ $ $ Rationale: * Rate is structured to encourage right sizing - better to get one larger container than a smaller one serviced repeatedly and costed accordingly * If customers need multiple day service for containers not listed in the rates, WM will work with them on a case by case basis 14

15 AVAILABLE TO READ IN THE CITY CLERK S OFFICE Contract No AGREEMENT BETWEEN THE CITY OF SOUTH GATE AND USA WASTE OF CALIFORNIA, INC. FOR COMMERCIAL/IN DUSTRI AL AND RESIDENTIAL REFUSE COLLECTION AND RECYCLING SERVICES This Agreement for Commercial/Industrial and Residential Refuse Collection and Recycling Services (hereinafter, the Agreement ), is entered into and executed as of 25, 2011, and effective as of the 25 day of January, 2011, by and between the CITY OF SOUTH GATE (hereinafter, the City ), a municipal corporation, organized and existing under the laws of the State of California, and USA WASTE OF CALIFORNIA, INC dba WASTE MANAGEMENT OF LOS ANGELES, a Delaware Corporation (hereinafter, the Contractor ). RECITALS: This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties: WHEREAS, the Legislature of the State of California. by enactment of the California Integrated Waste Management Act of 1989 (Public Resources Code Section i hereinafter the Act ) established a solid waste management process that requires cities and other local jurisdictions to implement source reduction, reuse, and recycling as integrated waste management practices; and WHEREAS, pursuant to Chapter and Section 40059(a) of the Public Resources Code, the City is authorized to enter into an exclusive agreement for the collection and disposal of solid waste; and WHEREAS, the Contractor and City entered into that certain agreement entitled Franchise Agreement between the City of South Gate and USA Waste of California, inc. for Commercial/Industrial and Residential Refuse Collection and Recycling Services; ( Prior Agreement ), dated May 10, 2005; and WHEREAS, the City and the Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling and disposal of solid waste, including the Act, Resource Conservation and Recovery Act ( RCRA ), and Comprehensive Environmental Response, Compensation, and Liability Act ( CERCLA ); and WHEREAS, there are no places within the limits of the City where landfills are located, or that are suitable for the siting of a landfill, and solid waste must, therefore, be exported from the City; and WHEREAS, the Contractor has represented and warranted to City that it has the experience, responsibility, and qualifications to provide collection of solid waste (including green waste) and recyclables, and to arrange with residents arid other entities in the City for the collection, safe transport, processing and disposal of solid waste and recyclables in compliance with applicable laws; 15

16 ORIGINAL Contract No AVAILABLE TO READ IN THE CITY CLERK S OFFICE A E1.L FRANCHISE AGREEMENT BETWEEN THE CITY OF SOUTH GATE AND USA WASTE OF CALIFORNIA, INC. FOR COMMERCIAL/INDUSTRIAL AND RESIDENTIAL REFUSE COLLECTION AND RECYCLING SERViCES

17 ECIVED City ofsouth Gate Item No. 5 APR CITY COUNCIL OFFIERAGEN)A lbjill For the Regular Meeting oft May 9, 2017 Originating Department: Public Works Department Head: City SUBJECT: APPROVAL OF AMENDMENT NO. 2 WITH WASTE MANAGEMENT FOR ORGANIC WASTE COLLECTION SERVICES IN COMPLIANCE WITH ASSEMBLY BILL 1826 PURPOSE: Assembly Bill (AB) 1826 requires municipalities to offer organic waste collection services to businesses, (inclusive of multi-family dwellings with more than five units) that produce 4 cubic yards or more. Approval of proposed Amendment No. 2 with Waste Management will authorize collection services of organic waste as required by AB 1826, and will set service rates. It is noted that businesses will not have to apply for services through Waste Management. RECOMMENDED ACTIONS: a. Approve Amendment No. 2 to Contract No with USA Waste of California, Inc., dba Waste Management of Los Angeles, for collection services and service rates of organic waste in compliance with Assembly Bill 1826; and b. Following the conclusion of the Public Hearing, adopt Resolution amending Resolution No (Schedule of Fees), by adding this new fee for organic waste collection services; and c. Authorize the Mayor to execute Amendment No. 2 to Contract No in a form acceptable to the City Attorney.,.J\,4ISCAL IMPACT: There is no impact to the General Fund. If the City Council approves the rates for organic waste collection services, qualifying businesses and multi-family dwellings with 5 units or more Will have a new service available, with the following fees: Service Frequency One time per Week Two times per Week Three times per Week Bin Size 64 gallon container Collection $20.59 $41.18 $61.77 Processing $37.72 $75.44 $ Total $58.31 $ $ Each Additional Cart $52.13 $ $ Waste Management estimates that, currently, there are a total of 56 business and 10 multi-family properties that have been identified as needing to be in compliance with AB1826. Under the proposed organic waste service fees, a total of $46,039 could be generated annually; generating $6,906 in revenue for the City. The total revenue is dependent upon participation through Waste Management. ANALYSIS: AB 1826 would, commencing April 1, 2016, require a business that generates a specified amount of organic waste per week to arrange for recycling services for that organic waste in a specified manner. Business is defined in AB 1826 as,... a commercial or public entity, including, but not limited to, a firm, partnership, proprietorship, joint stock company, corporation, or association

18 that is organized as a for-profit or nonprofit entity, or a multifamily residential dwelling of 5 units or more. Organic waste means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. AB1826 impacts jurisdictions, qualifying businesses and multifamily dwellings with 5-units or more, as follows: Jurisdictions: AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an organic waste recycling program to divert organic waste from the businesses subject to this act. This bill would authorize a local governmental agency to charge and collect a fee from an organic waste generator to recover the local governmental agency s costs incurred in complying with this act. Businesses: Commencing April 1, 2016, AB 1826 requires a business that generates 8 cubic yards or more of organic waste per week to arrange for recycling services of that waste. The bill decreased the amount of organic waste from 8 cubic yards or more to 4 cubic yards or more on January 1, The bill would also require a business that generates 4 cubic yards or more of commercial solid waste per week, on and after January 1, 2019, to arrange for organic waste recycling services and, if CaiRecycle makes a specified determination, would decrease that amount to 2 cubic yards or more of solid waste, on or after January 1, Currently there are a total of 66 properties, of which 56 are business and 10 are multi-family properties that have been identified as needing to be in compliance with AB1826. These accounts fall under businesses generating 4 cubic yards of organic waste per week. With the approval of the Organics Rate Schedule, it will allow Waste Management representatives to begin to offer this service to the businesses and multi-family properties that need to comply with this mandate. Waste Management will begin an outreach process with the identified business/multi-family properties to offer them the organics collection service as well as on-going education/training efforts to assure that all organic material is being diverted from the waste cart to organics. BACKGROUND: On May 2005, the City entered into a contract with Waste Management for Commercial/Industrial and Residential Refuse Collection and Recycling Services, where the contract was set to expire in The contract was followed by two Amendments, which were approved by the City Council on January 25, 2011 and on August 14, 2012, which, among other things, extended the contract to December 31, Under the current contract, Waste Management is the City s franchise Waste Hauler, who service commercial/industrial and residential properties, respectively. They provide numerous services which include but not limited to: normal refuse collection, recyclables collection, Sharps collection by mail, roll off bins, free back yard service for disabled, bulky item pick up, etc. In light of ABI 826, it is now necessary to offer organic material waste collection services in the City. Under Amendment No. 2, the service will be made available to commercial/industrial and residential property owners as an optional service, not a mandatory one. Waste Management is proposing the service rates shown in the Fiscal Impact above. These rates appear to be reasonable because in comparison to the regular refuse collection service, the collection portion is less expensive, but what causes the noticeable increase in fees is the processing portion which entails the process to divert organic material in an effort to comply with the State requirements. 18

19 Staff has compared these rates to those provided by Waste Management to neighboring cities such as Carson, Cerritos, Diamond Bar, Downey, Paramount, and Rolling Hills Estate. The rates offered in the South Gate area are reasonable. Attachment PG contains a copy of the comparative rates. ATTACHMENTS: A. Proposed Amendment No. 2 to Contract No B. Proposed Resolution (with Schedule of Fees) C. Public Hearing Notice D. Amendment No. 1 to Contract No E. Amended Contract No (Copy available for review in the City Clerk s Office) F. Contract No (Copy available for review in the City Clerk s Office) G. AB1826 H. Memo from Waste Management to City with AB 1826 Analysis 1. Organic Waste Rate Comparison J. Presentation from Waste Management on AB 1826 VHF:lc 19

20 Assembly Bill No CHAPTER 727 An act to add Chapter 12.9 (commencing with Section ) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste. [Approved by Governor September 28, Filed with Secretary of State September 28, 2014.] LEGISLATIVE COUNSEL S DIGEST AB 1826, Chesbro. Solid waste: organic waste. (1) The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, establishes an integrated waste management program that requires each county and city and county to prepare and submit to the department a countywide integrated waste management plan. The act requires a business, which is defined as a commercial or public entity, that generates more than 4 cubic yards of commercial solid waste per week or is a multifamily residential dwelling of 5 units or more, to arrange for recycling services. Existing law also requires jurisdictions to implement a commercial solid waste recycling program meeting specified elements. This bill would, commencing April 1, 2016, require a business that generates a specified amount of organic waste per week to arrange for recycling services for that organic waste in a specified manner. The bill would decrease the amount of organic waste under which a business would be subject to those requirements from 8 cubic yards or more to 4 cubic yards or more on January 1, The bill would also require a business that generates 4 cubic yards or more of commercial solid waste per week, on and after January 1, 2019, to arrange for organic waste recycling services and, if the department makes a specified determination, would decrease that amount to 2 cubic yards, on or after January 1, This bill would require the contract or work agreement between a business and a gardening or landscaping service to require the organic waste generated by those services to comply with the requirements of this act. This bill would require each jurisdiction, on and after January 1, 2016, to implement an organic waste recycling program to divert organic waste from the businesses subject to this act, except as specified with regard to rural jurisdictions, thereby imposing a state-mandated local program by imposing new duties on local governmental agencies. The bill would require each jurisdiction to report to the department on its progress in implementing the organic waste recycling program, and the department would be required to review whether a jurisdiction is in compliance with this act. 92

21 Ch This bill would authorize a local governmental agency to charge and collect a fee from an organic waste generator to recover the local governmental agency s costs incurred in complying with this act. This bill would require the department to identify and recommend actions to address permitting and siting challenges and to encourage the continued viability of the state s organic waste processing and recycling infrastructure, in partnership with the California Environmental Protection Agency and other specified state and regional agencies. The bill also would require the department to cooperate with local jurisdictions and industry to provide assistance for increasing the feasibility of organic waste recycling and to identify certain state financing mechanisms and state funding incentives and post this information on its [nternet Web site. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. Chapter 12.9 (commencing with Section ) is added to Part 3 of Division 30 of the Public Resources Code, to read: CHAPTER RECYCLING OF ORGANIC WASTE For purposes of this chapter, the following terms shall apply: (a) Business means a commercial or public entity, including, but not limited to, a firm, partnership, proprietorship, joint stock company, corporation, or association that is organized as a for-profit or nonprofit entity, or a multifamily residential dwelling. (b) Commercial waste generator means a business subject to subdivision (a) of Section (c) Organic waste means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. (d) Organic waste generator means a business subject to subdivision (a) of Section (e) Ruraijurisdiction means a jurisdiction that is located entirely within one or more rural counties, or a regional agency comprised ofjurisdictions that are located within one or more rural counties. (f) Rural county means a county that has a total population of less than 70,000 persons. (g) Self-hauler means a business that hauls its own waste rather than contracting for that service and self-haul means to act as a self-hauler (a) (1) On and after April 1, 2016, a business that generates eight cubic yards or more of organic waste per week shall arrange for 92

22 3 Ch.727 recycling services specifically for organic waste in the manner specified in subdivision (b). (2) On and after January 1, 2017, a business that generates four cubic yards or more of organic waste per week shall arrange for recycling services specifically for organic waste in the manner specified in subdivision (b). (3) On and after January 1, 2019, a business that generates four cubic yards or more of commercial solid waste, as defined in Section , per week, shall arrange for recycling services specifically for organic waste in the manner specified in subdivision (b). (4) On or after January 1, 2020, if the department determines that statewide disposal of organic waste has not been reduced to 50 percent of the level of disposal during 2014, a business that generates two cubic yards or more per week of commercial solid waste shall arrange for the organic waste recycling services specified in paragraph (3), unless the department determines that this requirement will not result in significant additional reductions of organics disposal. (5) A business located in a rural jurisdiction that is exempted pursuant to paragraph (2) of subdivision (a) of Section is not subject to this chapter. (b) A business subject to subdivision (a) shall take at least one of the following actions: (1) Source separate organic waste from other waste and subscribe to a basic level of organic waste recycling service that includes collection and recycling of organic waste. (2) Recycle its organic waste onsite or self-haul its own organic waste for recycling. (3) Subscribe to an organic waste recycling service that may include mixed waste processing that specifically recycles organic waste. (4) Make other arrangements consistent with paragraph (3) of subdivision (b) of Section (c) A business that is a property owner may require a lessee or tenant of that property to source separate their organic waste to aid in compliance with this section. (d) A business generating organic waste shall arrange for the recycling services required by this section in a manner that is consistent with state and local laws and requirements, including a local ordinance or local jurisdiction s franchise agreement, applicable to the collection, handling, or recycling of solid and organic waste. (e) When arranging for gardening or landscaping services, the contract or work agreement between a business subject to this section and a gardening or landscaping service shall require that the organic waste generated by those services be managed in compliance with this chapter. (f) (1) A multifamily residential dwelling that consists of fewer than five units is not a business for purposes of this chapter. (2) A business that is a multifamily dwelling is not required to arrange for the organic waste recycling services specified in subdivision (b) for food waste that is generated by the business

23 Ch (g) If separate organic waste collection and recycling services are not offered through a local ordinance or local jurisdiction s franchise agreement, a business generating organic waste may arrange for separate organic waste collection and recycling services, until the local ordinance or local jurisdiction s franchise agreement includes organic waste recycling services (a) (1) In addition to the requirements of Section , on and after January 1, 2016, each jurisdiction shall implement an organic waste recycling program that is appropriate for that jurisdiction and designed specifically to divert organic waste generated by businesses subject to Section , whether or not the jurisdiction has met the requirements of Section (2) (A) A county board of supervisors of a rural county may adopt a resolution, as prescribed in this paragraph, to make the rural county exempt from the requirements of this section. If a rural jurisdiction is a city, the city council may adopt a resolution, as prescribed in this paragraph, to make the rural jurisdiction exempt from this section. If a rural jurisdiction is a regional agency comprised of jurisdictions that are located entirely within one or more rural counties, the board of the regional agency may adopt a resolution, as prescribed in this paragraph, to make the rural jurisdiction is exempt from the requirements of this section. (B) A resolution adopted pursuant to subparagraph (A) shall include findings as to the purpose of and need for the exemption. (C) A resolution to exempt a rural jurisdiction pursuant to subparagraph (A) shall be submitted to the department at least six months before the operative date of the exemption. (D) On or after January 1, 2020, if the department determines that statewide disposal of organic waste has not been reduced to 50 percent of the level of disposal during the 2014 calendar year, all exemptions authorized by this paragraph shall terminate unless the department determines that applying this chapter to rural jurisdictions will not result in significant additional reductions of disposal of organic waste. (b) Ifajurisdiction, as of January 1, 2016, has in place an organic waste recycling program that meets the requirements of this section, it is not required to implement a new or expanded organic waste recycling program. (c) The organic waste recycling program required by this section shall be directed at organic waste generators and may include, but is not limited to, one or more of the following: (1) Implementing a mandatory commercial organic waste recycling policy or ordinance that addresses organic waste recycling. (2) Requiring a mandatory commercial organic waste recycling program through a franchise contract or agreement. (3) Requiring organic waste to go through a source separated or mixed processing system that diverts material from disposal. (d) (1) The organic waste recycling program shall do all of the following: (A) Identif all of the following: (i) Existing organic waste recycling facilities within a reasonable vicinity and the capacities available for materials to be accepted at each facility

24 5 Ch.727 (ii) Existing solid waste and organic waste recycling facilities within the jurisdiction that may be suitable for potential expansion or colocation of organic waste processing or recycling facilities. (iii) Efforts of which the jurisdiction is aware that are underway to develop new private or public regional organic waste recycling facilities that may serve some or all of the organic waste recycling needs of the commercial waste generators within the jurisdiction subject to this chapter, and the anticipated timeframe for completion of those facilities. (iv) Closed or abandoned sites that might be available for new organic waste recycling facilities. (v) Other nondisposal opportunities and markets. (vi) Appropriate zoning and permit requirements for the location of new organic waste recycling facilities. (vii) Incentives available, if any, for developing new organic waste recycling facilities within the jurisdiction. (B) Identify barriers to siting new or expanded compostable materials handling operations, as defined in paragraph (12) of subdivision (a) of Section of the Title 14 of the California Code of Regulations, and specify a plan to remedy those barriers that are within the control of the local jurisdiction. (C) Provide for the education of, outreach to, and monitoring of, businesses. The program shall require the jurisdiction to notify a business if the business is not in compliance with Section (2) For purposes of subparagraph (A) of paragraph (1), an organic waste recycling facility shall include compostable materials handling operations, as defined in paragraph (12) of subdivision (a) of Section of Title 14 of the California Code of Regulations, and may include other facilities that recycle organic waste. (e) The organic waste recycling program may include any one or more of the following: (1) Enforcement provisions that are consistent with the jurisdiction s authority, including a structure for fines and penalties. (2) Certification requirements for self-haulers. (3) Exemptions, on a case-by-case basis, from the requirements of Section that are deemed appropriate by the jurisdiction for any of the following reasons: (A) Lack of sufficient space in multifamily complexes or businesses to provide additional organic material recycling bins. (B) The current implementation by a business of actions that result in the recycling of a significant portion of its organic waste. (C) The business or group of businesses does not generate at least one-half of a cubic yard of organic waste per week. (D) Limited-term exemptions for extraordinary and unforeseen events. (E) (i) The business or group of businesses does not generate at least one cubic yard of organic waste per week, if the local jurisdiction provides the department with information that explains the need for this higher exemption than that authorized by subparagraph (C)

25 Ch (ii) The information described in clause (i) shall be provided to the department with the information provided pursuant to subdivision (f). (iii) This subparagraph shall not be operative on or after January 1, 2020, if the department, pursuant to paragraph (4) of subdivision (a) of Section , determines that statewide disposal of organic waste has not been reduced to 50 percent of the level of disposal during the 2014 calendar year. (f) (1) Each jurisdiction shall provide the department with information on the number of regulated businesses that generate organic waste and, if available, the number that are recycling organic waste. The jurisdiction shall include this information as part of the annual report required pursuant to Section (2) On and after August 1, 2017, in addition to the information required by paragraph (1), each jurisdiction shall report to the department on the progress achieved in implementing its organic waste recycling program, including education, outreach, identification, and monitoring, on its rationale for allowing exemptions, and, if applicable, on enforcement efforts. The jurisdiction shall include this information as part of the annual report required pursuant to Section (g) (1) The department shall review a jurisdiction s compliance with this section as part of the department s review required by Section (2) The department also may review whether a jurisdiction is in compliance with this section at any time that the department receives information that a jurisdiction has not implemented, or is not making a good faith effort to implement, an organic waste recycling program. (h) During a review pursuant to subdivision (g), the department shall determine whether the jurisdiction has made a good faith effort to implement its selected organic waste recycling program. For purposes of this section, good faith effort means all reasonable and feasible efforts by a jurisdiction to implement its organic waste recycling program. During its review, the department may include, but is not limited to, consideration of the following factors in its evaluation of a jurisdiction s good faith effort: (1) The extent to which businesses have complied with Section , including information on the amount of disposal that is being diverted from the businesses, if available, and on the number of businesses that are complying with Section (2) The recovery rate of the organic waste from the material recovery facilities that are utilized by the businesses, all information, methods, and calculations, and any additional performance data, as requested by the department from the material recovery facilities pursuant to Section of Title 14 of the California Code of Regulations. (3) The extent to which the jurisdiction is conducting education and outreach to businesses. (4) The extent to which the jurisdiction is monitoring businesses and notifying those businesses that are not in compliance. (5) The appropriateness of exemptions allowed by the jurisdiction. (6) The availability of markets for collected organic waste recyclables. (7) Budgetary constraints

26 7 Ch.727 (8) In the case of a rural jurisdiction, the effects of small geographic size, low population density, or distance to markets. (9) The availability, or lack thereof, of sufficient organic waste processing infrastructure, organic waste recycling facilities, and other nondisposal opportunities and markets. (10) The extent to which the jurisdiction has taken steps that are under its control to remove barriers to siting and expanding organic waste recycling facilities (a) Ifajurisdiction adds or expands an organic waste recycling program to meet the requirements of Section , the jurisdiction shall not be required to revise its source reduction and recycling element or obtain the department s approval pursuant to Article 1 (commencing with Section 41800) of Chapter 7 of Part 2. (b) If an addition or expansion of ajurisdiction s organic waste recycling program is necessary, the jurisdiction shall include this information in the annual report required pursuant to Section (a) This chapter does not limit the authority of a local governmental agency to adopt, implement, or enforce a local organic waste recycling requirement, or a condition imposed upon a self-hauler, that is more stringent or comprehensive than the requirements of this chapter. (b) This chapter does not modify, limit, or abrogate in any manner any of the following: (1) A franchise granted or extended by a city, county, city and county, or other local governmental agency. (2) A contract, license, or permit to collect solid waste previously granted or extended by a city, county, city or county, or other local governmental agency. (3) The existing right of a business to sell or donate its recyclable organic waste materials. (c) Notwithstanding any other requirement of this chapter, nothing in this chapter modifies, limits, or abrogates the authority of a local jurisdiction with respect to land use, zoning, or facility siting decisions by or within that local jurisdiction A local governmental agency may charge and collect a fee from an organic waste generator to recover the local governmental agency s costs incurred in complying with this chapter (a) The department shall identify and recommend actions to address, with regard to both state agencies and the federal government, the permitting and siting challenges associated with composting and anaerobic digestion, and to encourage the continued viability of the state s organic waste processing and recycling infrastructure, in partnership with the California Environmental Protection Agency and other state and regional agencies. These other state and regional agencies shall include, but are not limited to, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, the Public Utilities Commission, the Department of Food and Agriculture, the State Water 92 26

27 Ch Resources Control Board, California regional water quality control boards, and air pollution control and air quality management districts. (b) The department shall cooperate with local governmental agencies and industry to provide assistance for increasing the feasibility of organic recycling by promoting processing opportunities and the development of new infrastructure of sufficient capacity to meet the needs of generators, and developing sufficient end-use markets throughout the state for the quantity of organic waste required to be diverted. (c) The department shall identify and post on its Internet Web site state financing mechanisms and state funding incentives that are available for in-state development of organic waste infrastructure to help the state achieve its greenhouse gas reduction goals and waste reduction goals. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section of the Government Code

28 Organic Waste Service Comparisons 2017 Bin Size City 64 Gallon 65 Gallon lx 2x 3x lx 2x 3x South Gate $ $ $ N/A N/A N/A Rolling Hills Estate $ $ $ N/A N/A N/A Carson $ $ $ N/A N/A N/A Downey N/A N/A N/A $ $ N/A Paramount N/A N/A N/A $ $ N/A Cerritos N/A N/A N/A $ $ N/A Diamond Bar N/A N/A N/A $ $ $