REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Adoption of a Resolution Granting Non-Exclusive Franchise Agreements for Hauling of Industrial Refuse and Recyclables and Approval of Related Budget Amendment (Five Affirmative Votes Required)
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Properties zoned for industrial use may contract for industrial refuse and recyclable collection by selecting a hauler with a franchise granted by the City through a non-exclusive franchise (NEF) agreement. NEF refuse haulers set their own rates, perform billing services, and enter into separate agreements with industrial customers to provide specified services. The City currently has 12 NEF agreements with the refuse haulers listed below. The NEF agreements will expire on December 31, 2021.
1. RD Mendes Enterprises dba Accurate Cleaning Systems
2. Eco Box Recycling, Inc.
3. Ferma Corporation
4. Waste Connections dba Green Team of San Jose
5. GW Debris Services
6. Lam Hauling
7. Mission Trail Waste Systems
8. Jonna Corporation, Inc. dba Premier Recycle Company
9. Recology South Bay
10. AWIM Management dba Republic Services
11. Toca Debris Box
12. Guadalupe Rubbish Disposal dba Waste Management
Under the NEF agreements, refuse haulers pay the City quarterly franchise fees of 12 percent of gross billings for all materials collected. In FY 2020/21, franchise fees totaled approximately $2,090,000. Franchise fees are General Fund revenue and quarterly franchise fee payments are audited annually to ensure accuracy.
DISCUSSION
The process for granting a franchise (either exclusive or non-exclusive) to collect and dispose of refuse is contained in Chapter 8.25 of the Santa Clara City Code. The process generally consists of an application and a public hearing during a regular meeting of the City Council. At the public hearing, the Council considers the application and receives comments from any interested person. At the conclus...
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