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Approve a Two-year Solid Waste Agreement Extension and Appropriation Adjustment, and Review the Solid Waste Services Request for Proposals December 5, 2017 Page 3 • Establishes AB 1826 and AB 341 Education and Outreach Programs. • Adjusts residential extra trash cart fees; however, customer rate will remain the same and the City will pay the differential. • Establishes a commercial cart rate; however, commercial cart customers will continue to pay the same rate and the City will pay the differential. • Maintains remaining customer service rates without increases, other than the standard, annual rate adjustment as detailed in the current agreement. The City has negotiated to pay the differential for the updated residential extra trash cart and new commercial cart service rates, and the recycling education and outreach program, through the extension period. These rates will go into effect immediately. We estimate the cost to the City for the first six months to be $672,000. For the two years of the extension, the City's cost is estimated to be $1,344,000 annually. These costs will be paid from the Refuse Collection Enterprise fund balance. The recommendations of the Comprehensive Prop 218 Fees and Charges Compliance Assessment (approved by Council on October 3, 2017) may require a subsequent Prop 218 process. This process could result in the full extra trash cart fee and commercial cart rates being paid for by the customer. The agreement extension achieves all of the necessary objectives for continued service until a new solid waste services Request for Proposals (RFP) process can be completed. As such, staff recommends the approval of the two-year extension. Co -terminus Construction/Demolition & Host Fee Agreements In Santa Ana, construction and demolition (C&D) debris hauling services are contracted separately. The two authorized haulers are Waste Management of Orange County and Ware Disposal. In addition, for maximum recycling diversion, all processing of C&D debris is contracted to be directed to Madison Materials through a Host Fee agreement. These agreements are co -terminus with the Solid Waste Services agreement. Therefore, once the Solid Waste Services agreement extension has been approved, staff will return to Council for approval of concurrent extensions of all related C&D agreements. NEW SOLID WASTE SERVICES RFP PROCESS On October 3, 2017, Council also directed staff to proceed with a Solid Waste Services RFP. The draft RFP is attached for review (Exhibit 2). An average solid waste RFP process, from development of the scope to contract implementation, could take approximately 16 months to complete, if there are no delays or complications. The City's Solid Waste Services Implementation Timeline (Exhibit 3) estimates 25 months from RFP release to implementation readiness. However, the RFP milestones are estimated to be completed within 16 months (without delays or complications), and includes approximately 90 days for a Prop 218 process. 65A-3