REPORT TO COUNCIL
SUBJECT
Title
Public Hearing to Approve Non-Exclusive Franchise Agreements for Hauling of Industrial Refuse and Recyclables with 12 Applicants
Report
BACKGROUND
The City currently has ten non-exclusive franchise (NEF) agreements with refuse haulers. These agreements authorize the ten NEF refuse haulers to charge for collection services at properties zoned for "Industrial" use. These NEF haulers set their own rates, perform billing services, and enter into separate agreements with industrial customers to provide specified services. All ten NEF agreements expire on June 30, 2019.
The NEF haulers pay the City quarterly franchise fees based on a percentage of gross billings. The current NEF agreement fee structure was tiered to incentivize the diversion of materials from landfills, whereby NEF haulers pay a smaller percentage of gross billings on customer accounts whose materials are recycled. The table below shows the NEF fee schedule in the current agreements.
NEF Franchise Fee Schedule for July 1, 2016 - June 30, 2019
Disposal Categories
Franchise Fees
Landfilled refuse (including non-source separated mixed debris containers) not taken to a material recovery facility (MRF) with a recovery rate of at least 30%
18% of gross billings
Refuse taken to a an individual or series of MRF's, composting, or anaerobic digestion processes that recovers = 30%, but < 60% of incoming materials
12% of gross billings
Refuse taken to a an individual or series of MRF's, composting, or anaerobic digestion processes that recovers between 60% and 95% of incoming materials
8% of gross billings
Source separated recyclables and organics taken to a MRF for processing that recovers = 95% of incoming materials
3% of gross billings
Regulatory Compliance
In September 2016, Governor Brown signed Senate Bill 1383 (SB 1383) establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP) in various sectors of...
Click here for full text