TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, Acting City Manager
FROM:
Erick Lee, Public Works Director
Jeff Page, Utilities Manager
Anna Luke-Jones, Solid Waste Administrator
SUBJECT:Title
Consideration of a Request from Waste Management to Adjust Solid Waste Diversion Requirements in the City's Franchise Agreement for Integrated Solid Waste Management Services (No Budget Impact) (Public Works Director Lee).
(Estimated Time: 30 Mins.)
REVIEW AND PROVIDE DIRECTION
Body
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RECOMMENDATION:
Staff recommends that the City Council discuss Waste Management's request to adjust solid waste diversion requirements and provide direction.
FISCAL IMPLICATIONS:
There are no fiscal implications at this time. If the City Council considers reducing the solid waste diversion requirements in the City's franchise agreement, Waste Management (WM) will be authorized to landfill additional material, which is less expensive for WM to process than recycling. While WM is not proposing a rate reduction to account for this decrease in diversion requirements, the City Council may want to consider the exploration of a rate reduction to account for the reduction in services provided under the franchise agreement.
BACKGROUND:
The City has franchised its residential and commercial solid waste services with a private hauler since the early 1980s. The last Request for Proposal (RFP) process for solid waste hauler selection was awarded to WM in 2019, with an effective date of July 1, 2020. The franchise agreement is for seven fiscal years (FY) plus three one-year optional extension years, for a potential of 10 total years (July 1, 2020 through June 30, 2027 + optional FY28 + optional FY29 + optional FY30).
Diversion is the process of diverting material from the landfill, otherwise known as recycling. As part of WMs proposal, a diversion rate of 46% was proposed. This meant that of all the materia...
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