60B - SOLID WASTE OPTIONS - Laserfiche WebLink

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Consider Options Related to Solid Waste Compliance with State Mandates June 16, 2020 Page 2 Negotiations with WM did not result in a further reduction of costs as WM already contributes $1,667,333 to the City through the following: Action Cost Savings Negotiated with WM Provision of service from 01/01/2020 to 06/30/2020 $869,022 Provision of service at loss of $0.04 per month per account for two years 40,421 Tiered rate increase resulting in loss of $1.50 per month per account for FYE21 757,890 Total WM Contribution $1,667,333 Total Service Cost $4,345,211 % Share of Cost 38.37% Option A Staff recommends adoption of the resolution (Exhibit 1) which addresses the requirements of Assembly Bill 1594 (Exhibit 2), ensuring that the City remains in compliance with State mandates avoiding potential fines of up $10,000 per day. The resolution will increase the curbside cart refuse rates by $1.90, effective July 1, 2020, and by $1.50, effective July 1, 2021. Approval of this option also allows for the execution of the amendment approved on March 17, 2020 (Exhibit 3), which extends the solid waste services agreement with WM through June 30, 2022. Extension of the WM agreement provides the additional time needed to meet the City's Solid Waste Request for Proposals (RFP) expanded timeline. Without this extension, the RFP timeline would need to be compressed by a minimum of 6 months. Option B At the request of the City, WM will enter into an amendment (Exhibit 4) providing a one-year extension from June 30, 2021 to June 30, 2022, to maintain the expanded timeline for the Solid Waste RFP, and will remove the requirement for composting of green waste. Removing the composting requirement will eliminate the diversion credit that the City receives, and will expose the City to a compliance order and potential fines from CalRecycle. The City is required by AB 1594 to report to CalRecycle on August 3, 2020 of its handling of previously diverted green waste as Alternative Daily Cover. Option C Approval of neither option will result in the invalidation of the one-year extension of the agreement with Waste Management approved by the City Council on March 17, 2020 and will compress the RFP timeline to 12 months. Twelve months is not sufficient time to complete the RFP process, purchase the necessary trucks, bins, and carts, and implement the program on July 1, 2021. STRATEGIC PLAN ALIGNMENT Approval of these items support the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment). �. 1