TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Erick Lee, Public Works Director
Jeff Page, Utilities Manager
Anna Luke-Jones, Solid Waste Administrator
SUBJECT:Title
Consideration of Request from Waste Management to Adjust Solid Waste Diversion Requirements in the City's Franchise Agreement for Integrated Solid Waste Management Services and a Resolution Authorizing the City Manager to Prepare and Execute a Corresponding Amendment No. 3 to the Franchise Agreement with Waste Management (No Budget Impact) (Public Works Director Lee).
(Estimated Time: 30 Mins.)
A) DISCUSS AND PROVIDE DIRECTION
B) RESOLUTION NO. 25-0079
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council: (1) consider the request from Waste Management (WM) to adjust solid waste diversion requirements in the City's Franchise Agreement; and (2) (if the City Council agrees to adjust diversion requirements and secure a corresponding rate reduction for solid waste customers) adopt Resolution No. 25-0079 authorizing the City Manager to prepare and approve an Amendment to the Agreement.
FISCAL IMPLICATIONS:
If City Council adopts Resolution No. 25-0079 and the parties agree upon the terms of an Amendment to the Agreement, the contractor rate for both FY 2025-2026 and FY2026-2027 would be reduced by 1% each fiscal year. Residential and commercial billing rates would be reduced accordingly. The Proposition 218 process would not have to be repeated to enact this change, as that process is only required to increase rates to the ratepayer, not reduce rates.
BACKGROUND:
Diversion refers to the process of redirecting waste from landfills, primarily through recycling and other recovery methods. Under the Franchise Agreement for Integrated Solid Waste Management Services ("Agreement"), WM is required to divert at least 50% the waste it collects from landfills.
Liquidated Damages for Di...
Click here for full text