CC 04-21-20 #11 Recology Franchise Agreement_Staff PresentationsFourth Amendment of Solid Waste Franchise AgreementApril 21, 2020
Current Agreement Authorized in 2010 and sunsets in January 2021Includes a high level of services:•Bulky item pickup / extra set outs•Environmental Days / document shreddingAmendments were authorized that increased diversion:•Organics collection for businesses and multi-family
Fourth AmendmentSole negotiations with Recology●Will follow public process to engage on important services, regulatory req’s, rate impactsProvides up to 18-months of time extension with limited rate increases if negotiations are not successful
Current Agreement Allows Negotiations if:●Recology has met certain diversion requirements●Recology has limited requests for rate increases●Recommendation that the City pursue the option
Recology Performance●Increased diversion from landfill●Cooperative program development●Limited rate increases●Rates continue to be among the lowest in area while delivering high level of service
Current Rates:
When Negotiations are Successful●Agreement will come to City Council for authorization●New agreement term will begin immediately upon expiration of existing agreement
If a New Agreement is Not in Place by January 2021●18-month extension●Rate increases of:●5% on 2/1/2021 ●CPI adjustment on 11/1/2021●5% on 2/1/2022
Next Steps:Developing new agreement terms●Balance services valued by Council and community with the cost to provide the services (strive to keep rates low) ●Proactive about SB1383 (organics diversion 1/1/2022)
Next Steps:●Council input●Community outreach●Meetings (in person, online)●Community survey ●Bill inserts●Website – comment form
Next Steps:●Sustainability Commission●2/20/2020, 5/21/2020, TBD●Chamber of Commerce●2/25/2020, 3/6/2020, TBD
Next Steps:●City Council●Study Session to receive input, present recommendations and terms●Update on negotiations before recommending final authorization
Questions
During potential bridge term 20/21:
During potential bridge term 21/22: