HomeMy WebLinkAbout24 Establish Ad Hoc Subcommittee for Solid Waste-Recycling Franchise AgmtSTAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: August 26, 2021
PREPARED BY: Heather Horning, Assistant to the City Manager
REQUEST: Establish an ad hoc subcommittee to serve as a steering committee
for key solid waste and recycling franchise agreement issues, and
provide staff direction on topics for subcommittee review.
Recommendation
By Minute Motion:
1. Establish an ad hoc subcommittee to serve as a steering committee for key
solid waste and recycling franchise agreement issues; and
2. Provide staff direction on topics for subcommittee review.
Strategic Plan
The proposed action has no impact on the Strategic Plan.
Background Analysis
The City has contracted with Burrtec Waste and Recycling Services (Burrtec) to provide
waste and recycling services for the City since 2006 when they received the agreement
through an assignment from Waste Management Services. The current Franchise
Agreement (Agreement) is an amendment to the original agreement that was approved
in May 2015, extending through May 2023 (Contract No. C27411).
SB 1383, the Short Lived Climate Pollutants: Organic Methane Waste Emissions
Reduction Act (Lara, Chapter 395, Statutes of 2016) was passed by the Legislature in
order to reduce greenhouse gases produced by organic material in the waste stream. The
new legislation will have a large impact on the services the City is required to provide to
its residents and businesses by January 2022. These services are not included in the
current Agreement with Burrtec so an amendment to the Agreement is required to
incorporate them. Burrtec has also requested to extend the Agreement term with this
amendment since the Agreement is nearing expiration and Burrtec will need to incur
capital expenditures in order to provide these services.
In order to assist the City with the implementation of SB 1383, the City contracted with
HF&H Consultants, LLC (HF&H). Staff has worked with HF&H to complete a thorough
August 26, 2021 - Staff Report
Burrtec Franchise Agreement Amendment and SB 1383 Implementation Update
Page2of3
review the existing Burrtec Agreement, identify changes that needed to be made to
implement SB1383, and negotiate a draft Agreement amendment to incorporate these
changes and other requested changes or clean-up items.
The City, along with HF&H and Burrtec, has negotiated proposed programs and services
to meet the requirements of SB 1383 which include three Agreement term options with
corresponding rates and phase in schedules. Staff is requesting direction on the preferred
term and rate option, along with other Agreement items including residential container
color changes, residential kitchen pail program, and use of Recycle Fund monies. Staff
recommends that the City Council establish an ad hoc subcommittee with two
Councilmembers to serve as a steering committee for key solid waste and recycling
franchise agreement issues. Staff is also requesting direction on other topics for the
subcommittee review.
The subcommittee would meet beginning in September on an ad hoc basis. The table
below has a tentative timeline for the amendment negotiations and SB 1383
implementation:
First Meeting of Subcommittee
Negotiation of Final Amendment Terms
City Council Approval
1 Public Outreach and Education on Approved Programs & Services
Commercial Rate Adjustment
Phase -in of Residential Organic Recycling Services
1 Initial Residential Rate Adjustment for Organic Recycling Services
Fiscal Analysis
September 2021
4th Quarter 2021
December 2021
1st Quarter 2022
1st Quarter 2022
2nd Quarter 2022
July 1, 2022
There is no fiscal impact related to this request, however, once an Agreement is finalized
and new rates are approved it will impact franchise fee revenue.
LEGAL REVIEW DEPT. REVIEW FINANCIAL
REVIEW
N/A
Robert W. Hargreaves
City Attorney
Andy Firestine Jaw Lu,i%Epivw
Andy Firestine For Janet M. Moore
Assistant City Manager Director of Finance
City Manager, L. Todd Hileman: L. TOG{G{ Hii-Levi.aiA,
ASSISTANT
CITY MANAGER
Andy firestine
Andy Firestine
Assistant City Manager
August 26, 2021 - Staff Report
Burrtec Franchise Agreement Amendment and SB 1383 Implementation Update
Page 3 of 3
VENDOR: Burrtec Waste and Recycling Services, LLC
41-575 Eclectic Street
Palm Desert, California 92260
*Councilmembers Jonathan
and Quintanilla volunteered to
serve on the steering
committee. Mayor Kelly
approved the appointments. By
Minute Motion: 1) Establish an ad
hoc subcommittee to serve as a
steering committee for key solid
waste and recycling franchise
agreement issues; and 2) Provide
staff direction on topics for
subcommittee review. 5-0
CITY COUNCTL ACTION
APPROVED '7't DENTED
RECEIVED OTHER
MEETING DA1 08" ;-0
AYES: F ?,k,•_ 96-flxtity/IFP,Sla'r f.(dUi!)ktoilkt
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ABSENT: _th
ABSTAIN. /vL'ri
VERIFIED BY:
Original on File with City
Jerk's Office