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ADOPT RESOLUTION TO AUTHORIZE THE ISSUANCE OF INDUSTRIAL WASTE COLLECTOR PERMITS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the issuance of industrial waste collector permits to Sunrise Sanitation, Inc. (Republic Services), USA Waste of California, Inc. (WM, formerly Waste Management), and California Waste Recovery Systems, LLC (Cal-Waste).
2. Authorize the City Manager, or designee, to enter into and execute agreements with Council-authorized industrial waste collector permittees for the collection and disposal of industrial waste in the City of Stockton limits.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City’s industrial waste collector permits expire on December 31, 2024. Current industrial waste collector permit holders, Sunrise Sanitation, Inc. (Republic Services), USA Waste of California, Inc. (WM), and California Waste Recovery Systems, LLC (Cal-Waste), have applied for new permits. Staff have reviewed the applications and confirmed that each applicant complied with all Stockton Municipal Code (SMC) requirements to perform industrial waste collection service in the City.
DISCUSSION
Background
In 1981, the City separated its commercial and industrial waste collections from residential collections by establishing a non-exclusive, open-market, competitive permit system. This system continued until 2004 when the City consolidated residential and commercial collection into exclusive franchises and amended the SMC to require franchisees and industrial waste permittees to divert 50 percent of collected waste from landfills per State Assembly Bill (AB) 939 regulations.
Industrial waste collector permits have since been issued and extended, with the most recent issuance occurring in 2019 with Council approval. The permit process includes a $100,000 permit fee and compliance with State regulations, including, but not limited to:
• AB 939 California’s Recycling Mandate
• Senate Bill 1383 California’s Short-Lived Climate Pollutant Reduction Law
• California Green Building Standards Code, Part 11, Title 24, California Code of Regulations (CALGreen)
CALGreen requires local construction permits to divert at least 65 percent of construction and demolition debris material from landfills.
Present Situation
The City has three industrial waste collector permits set to expire on December 31, 2024. All three of the City’s current industrial waste haulers have re-applied for an industrial waste collector permit. The SMC requires the following before new permits can be issued:
• That the City Council approve permits through a majority vote;
• That permittees pay a fee of $100,000 for the issuance of an industrial waste collector permit; and
• That permittees provide adequate insurance coverage as required by the City to perform industrial waste collection services.
The City may choose to renew the permits for up to two additional five-year terms. Staff have reviewed the applications and confirmed that all SMC requirements have been met.
If approved, the industrial waste collector permit fees totaling $300,000 will be allocated for clearance pruning of City-owned trees across the City. Clearance pruning of City trees will ensure that waste collection trucks can safely access waste containers without obstruction from tree limbs. Additionally, clearance pruning allows the street sweepers closer access to the curb line, ensuring more effective street sweeping.
If the permits are approved, each permittee will also pay the City an 18.5 percent permit fee and a five percent AB 939 fee based on the permittee’s monthly gross receipts.
FINANCIAL SUMMARY
The $100,000 permit fees will be applied to the Solid Waste and Recycling account 4560-000-470007-255-000-30-45-000-000.
The monthly 18.5 percent permit fees will be applied to the following General Fund accounts:
Republic Services:
0000-000-414037-100-000-00-00-000-000
Waste Management:
0000-000-414036-100-000-00-00-000-000
California Waste Recovery:
0000-000-414035-100-000-00-00-000-000
The monthly five percent AB 939 fees will be applied to the following Solid Waste and Recycling accounts:
Republic Services:
0000-000-414037-255-000-00-00-000-000
Waste Management:
0000-000-414036-255-000-00-00-000-000
California Waste Recovery:
0000-000-414035-255-000-00-00-000-000
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.