HomeMy WebLinkAboutItem MAGENDA STAFF REPORT
DATE: January 22, 2018
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Patrick Gallegos, Assistant City Manager
SUBJECT: AB 1826: ORGANIC WASTE RECYCLING PROGRAM
SUMMARY OF REQUEST:
That the City Council approve the Organic Waste Recycling Program proposed
by Republic Services by adopting Resolution No. 6788.
BACKGROUND AND ANALYSIS:
In October 2014, Governor Brown signed AB 1826 Chesbro (Chapter 727,
Statutes of 2014), which required that on and after January 1, 2016, local
jurisdictions across the state implement an organic waste recycling program to
divert organic waste generated by businesses, including multifamily residential
dwellings that consist of five or more units. This law also required businesses to
start recycling organic waste on and after April 1, 2016.
While AB 1826 requires jurisdictions to include multifamily residences in their
implementation plan, multifamily dwellings are not required to have a food waste
diversion program. While AB 1826 places the burden on local jurisdictions to
provide an organic waste recycling program, Republic Services (the City's
franchise waste hauler) is proposing a fully compliant AB 1826 program for the
City of Seal Beach that will divert organic materials from landfills to reduce
greenhouse gas emissions.
Building upon the requirements of AB 341, which mandated commercial waste
recycling, the State of California is now mandating organic recycling under AB
1826. As a result of the signing of AB 1826 into law, the new mandatory organic
recycling requirements will be phased in over several years and will assist the
State in meeting its recycling goal of 75% by 2020. Requirements for organic
recycling depend on the amount of organic waste generated weekly by the
business. Over time, more businesses will be required to comply because the
organic waste threshold that triggers additional compliance requirements is
lowered (see table below).
Agenda Item M
Date
Threshold to Arrange for Organic Waste Recycling Services
April 1, 2016
Businesses that generate 8 cubic yards of organic waste per
week
January 1, 2017
Businesses that generate 4 cubic yards of organic waste per
week
January 1, 2019
Businesses that generate 4 cubic yards of commercial solid
waste per week
January 1, 2020
Businesses that generate 2 cubic yards of commercial solid
waste per week (the 2 cubic yard requirement only takes effect if
CalRecycle determines that statewide disposal of organic waste
in 2020 has not been reduced by 500/ of 2014 levels
As, AB 1826 is a mandatory requirement for all jurisdiction statewide (with the
exception of rural counties who can go through an exemption process), the City
is required to develop and implement a program that is compliant with State law.
The City's franchise waste hauler (Republic Services) has developed a fully
compliant AB 1826 program for our City that will divert organic materials from
landfills to reduce greenhouse gas emissions. Organic waste means food waste,
green waste, landscape and pruning waste, nonhazardous wood waste, and
food -soiled paper waste that is mixed in with food waste. Diverted organic
materials will be allocated to the highest and best end uses as outlined by the US
EPA Food Recovery Hierarchy. Food Recovery of edible portions will be
provided by Food Finders in partnership with the City and Republic Services.
Non -edible portions will be source separated by the commercial sector, collected
in a dedicated route by Republic Services, and environmentally recycled for
renewable energy production by a Centralized Organic Recycling equipment
(CORe) patented system and the LA County Sanitation wastewater treatment
plant in Carson, California.
Organic materials will also be composted through a covered aerated static pile
system (CASP) at the Agromin OC facility in Chino, California. In addition, as
part of the AB 1826 compliant program, Republic Services will provide education
and outreach to commercial customers through letters, instructional brochures,
and personal visits to business locations. The visits will include the distribution of
posters and individual training on how to identify organics and how to separate
organics from trash or other non -recyclable solid waste.
Section 4.3.6 of the City's franchise agreement with Republic Services permits
rate adjustments due to changes in the service requirements. At the City Council
meeting on February 27, 2017 and November 3, 2017, Republic Services
provided the City and community detailed information supporting the proposed
rate adjustment.
The goal of the mandatory commercial organic recycling law (AB 1826) is to help
California achieve aggressive recycling and greenhouse gas emission reduction
goals. California landfills take in about 30 million tons of waste each year, of
which more than 30% is organic. The State has determined that these organics
should be composted or used to produce renewable energy, rather than being
disposed of in landfills. Greenhouse gas emissions resulting from decomposition
Page 2
of organic waste in landfills have been identified as a significant source of
emissions contributing to global climate change.
Operation costs to implement the program will have a major impact on its
effectiveness. Commercial food waste diversion is mandatory and as such, is
the new way to conduct business in cities and the State. Due to the high cost of
collecting and processingtrecycling commercial organics materials, Republic
Services has recommended that the rates be shared across all commercial
businesses to be effective and to encourage participation. In fact, to date, most
of Republic Services partner cities have adopted or plan to adopt commercial
sector wide programs. Republic has found that those that have applied the
commercial sector wide rate structure have realized very positive results in terms
of participation, municipal compliance, and customer acceptance. In a direct
user fee based cost recovery rate structure, most affected businesses would
consider the increase in costs as prohibitive and economically burdensome.
The costs to provide an AB 1826 compliant program to the City of Seal Beach's
commercial sector is approximately $366,515 annually, which represents a
18.25% increase if the rates were shared across all commercial business and
more than a 300% increase if the rates were applied based on a direct users fee
structure, which would more than likely result in a lack of participation in the
City's AB 1826 program as well as the City's lack of compliance to AB 1826. In
addition, a direct user fee program would likely require significant fines and
penalties for enforcement of non -complying businesses in the City to increase
participation in mandatory organics recycling.
The City has negotiated a highly favorable and phased -in increase of 9% to
commercial rates to be implemented February 1, 2018 and an additional 9% to
be implemented on July 1, 2018 which will provide compensation to Republic
Services to providet the source separated organics program as required by AB
1826. 1
The commercial rates for program specific bin servicing beginning February 1,
2018, would be as follows:
Current Customer Rates
Pick-Up/Week
2 Yard
3 Yard
4 Yard
6 Yard
3 Yard
Recycling
1
123.11
162.35
216.19
N/A
57.01
2
198.13
238.24
321.84
N/A
84.81
3
253.46
321.71
381.03
N/A
115.35
4
340.48
401.84
446.65
N/A
N/A
5
357.81
490.90
569.19
N/A
N/A
6
445.93
576.57
643.06
N/A
N/A
96 Gallon Container
Service
N/A
N/A
N/A
N/A
N/A
Page 3
Adjusted Customer Rates for Oroanics
Pick-UptWeek
2 Yard
3 Yard
4 Yard
6 Yard
3 Yard
Recycling
1
134.19
176.96
235.65
WA
N/A
2
215.96
259.68
350.81
WA
N/A
3
276.27
350.66
415.32
WA
N/A
4
371.12
438.01
486.85
WA
N/A
5
390.01
435.06
620.42
WA
N/A
6
486.06
628.46
700.94
WA
N/A
96 Gallon Container
Service
WA
WA
N/A
WA
N/A
Chance to Current Customer Rates
Pick-Up/Week
2 Yard
3 Yard
4 Yard
6 Yard
3 Yard
Recycling
1
11.08
14.61
19.46
N/A
N/A
2
17.84
21.44
28.97
N/A
WA
3
22.81
28.95
34.29
N/A
WA
4
30.64
36.17
40.20
N/A
WA
5
32.20
44.18
51.23
N/A
WA
6 1
40.13
51.89
57.88
N/A
WA
96 Gallon Container
Service
N/A
N/A
N/A
N/A
WA
Organics Pricing if charged as "generator only")
Pick-Up/Week
65 Gallon
1 Yard
1
68.88
356.06
2
137.75
577.76
3
206.44
866.64
4
275.31
1155.52
5
344.19
1444.40
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed this staff report and approved it as to form.
Page 4
FINANCIAL IMPACT:
An overall estimated increase to Commercial Refuse Franchise Fees of
approximately $16,660, to be paid to the City, is projected as a result of the
proposed commercial rate increase for the period March 1, 2018 — December 31,
2018.
RECOMMENDATION:
That the City Council approve the Organic Waste Recycling Program proposed
by Republic services by adopting Resolution No. 6788.
S(U/UBBfMIITTE�D BY: NOTED AND APPROVED:
1 vee / 4 LiYf
Patrick Gallegos 11 . Ingram, City an ger
Assistant City Manager
Attachments(s):
A. Resolution 6788
Page 5
Attachment "A"
RESOLUTION NUMBER 6788
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
ADOPTING AN ORGANIC WASTE RECYCLING PROGRAM
WHEREAS, AB 1826 amended the Integrated Waste Management Act (Public
Resources Code § 40000 at seq.) to add a new Chapter 12.9 to the Act imposing
regulations applicable to the recycling of organic waste ; and
WHEREAS, the City has entered into an exclusive franchise agreement with
Republic Services for solid waste collection and disposal services, and requires
Republic Services to assist the City in complying with all applicable provisions of
the Integrated Waste Management Act, of which AB 1826 is a part; and
WHEREAS, Public Resources Code §42649.81 phases in organic waste
recycling requirements for businesses, with the first phase commencing on April
1, 2016 and requiring businesses that generate more than 8 cubic yards of
organic waste per week to recycle their organic waste; and
WHEREAS, Public Resources Code § 42649.82 requires cities and counties to
adopt an organic waste recycling plan on or before January 1, 2016, which may
be implemented through a requirement for mandatory organic waste recycling
through a franchisee; and
WHEREAS, the City desires for Republic Services to provide organic waste
recycling services consistent with AB 1826 within the City.
NOW, THEREFORE, BE IT RESOLVED the Seal Beach City Council hereby:
Section 1. Adoption of Omanic Waste Recycling Program. The City Council
adopts this Resolution No. 6788 as its organic waste recycling program as
required by Public Resources Code section 42649.82.
Section 2. Organic Waste Recycling Program. The City's Organic Waste
Recycling Program shall consist of the following elements:
(a) Mandatory Organic Waste Recycling for Businesses. Businesses within
the City shall recycle their organic waste consistent with the
requirements of Public Resources Code section 42649.81. For the
purposes of this subsection `businesses" shall have the same meaning
as provided in Public Resources Code section 42649.8, which
Resolution No. 6789 defines businesses to mean "a commercial or
public entity, including but not limited to, a fine, partnership,
proprietorship, joint stock company, corporation, or association that is
organized as a for-profit or nonprofit entity, or a multifamily residential
dwelling."
(b) Report of Organic Waste Generators. Republic Services shall prepare a
report identifying 'organic waste generators," as that term is defined in
Public Resources Code § 42649.8, within the City, and submit such
Resolution Number 6788
report to the City by July 1, to ensure that the report can be filed with the
State by August 1 of each year.
(c) Information Regarding Organic Waste Recycling Facilities. Republic
Services shall compile the information listed in Public Resources Code §
42649.82 (d)(1)(A) and (B) regarding organic waste recycling facilities
and compostable material handling operations, and submit such
information to the City.
(d) Diversion of Organic Waste. Diverted organics materials will be
allocated to highest and best end uses as outlined by the US EPA Food
Recovery Hierarchy. Food Recovery of edible portions will be provided
by Food Finders in partnership with the City and Republic Services.
Non -edible portions will be source separated by the commercial sector,
collected in a dedicated route by Republic Services and environmentally
recycled for renewable energy production by the CORe system and LA
County Sanitation wastewater treatment plant in Carson, California.
Organics materials will also be composted through a covered aerated
static pile system (CASP) at Agromin OC facility in Chino, California.
(e) Franchise Agreement. The City's franchise agreement with Republic
Services provides for rate adjustments due to changes in the service
requirements under Section 4.3.6. The City has negotiated a highly
favorable and phased -in increase of 9% to commercial rates to be
implemented February 1, 2018, and an additional 9% to be implemented
on July 1, 2018, which will provide compensation to Republic Service to
provide the City with a compliant AB 1826 program.
(f) Public Education and Outreach. Republic Services shall develop a
program of education and outreach to businesses subject to mandatory
organic waste recycling under Public Resources Code § 42649.81, and
monitor the compliance of such businesses with AB 1826.
Section 3. The City Clerk shall certify to the adoption of this resolution and
hereafter the same shall be in full force and effect.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 22nd day of January , 2018 by the following
vote:
AYES:
Council Members:
NOES:
Council Members:
ABSENT:
Council Members:
ABSTAIN:
Council Members:
Mike Varipapa, Mayor
ATTEST:
Robin L. Roberts, City Clerk
Resolution Number 6788
STATE OF CALIFORNIA }
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that
the foregoing resolution is the original copy of Resolution Number 6788 on
file in the office of the City Clerk, passed, approved, and adopted by the City
Council at a regular meeting held on the 22nd day of January , 2018.
Robin L. Roberts, City Clerk