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ADOPT RESOLUTION TO AUTHORIZE THE ISSUANCE OF AN INDUSTRIAL WASTE COLLECTOR PERMIT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the issuance of an industrial waste collector permit to GreenWaste of Central Valley, LLC; and
2. Authorize the City Manager, or designee, to enter into and execute an agreement with a Council-authorized industrial waste collector permittee for the collection and disposal of industrial waste within 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
GreenWaste of Central Valley, LLC (GreenWaste) has applied for an Industrial Waste Collector permit. The City’s current permit holders are Sunrise Sanitation, Inc. (Republic Services), USA Waste of California, Inc. (WM), and California Waste Recovery Systems, LLC (Cal-Waste). The current industrial waste collector permits expire on December 31, 2029. Staff reviewed the application submitted by GreenWaste and found that the applicant has 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 collections into exclusive franchises and amended the SMC to require franchisees and industrial waste permittees to divert 50 percent of collected waste from landfills, in accordance with State Assembly Bill (AB) 939 regulations.
Industrial waste collector permits have been issued and extended, with the most recent issuance occurring in 2024, following 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 (SB) 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 currently has three permitted industrial waste collectors operating inside the City limits. GreenWaste has submitted its application, and if approved, will become the fourth permitted industrial waste collector in the City. The SMC requires the following before new permits can be issued:
• That the City Council approve the permit through a majority vote;
• That permittee pays a fee of $100,000 for the issuance of an industrial waste collector permit; and,
• That permittee provides adequate insurance coverage as required by the City to perform industrial waste collection services.
The City may choose to renew the permit for up to two additional five-year terms. Staff has reviewed the application and confirmed that all SMC requirements have been met.
If approved, the industrial waste collector permit fee, totaling $100,000, will be used to administer and support a variety of activities that ensure safe, compliant, and efficient waste collection service. These revenues help offset the costs of program administration, compliance monitoring, field inspections, enforcement activities, environmental program requirements, and maintenance activities, such as vegetation and tree clearance, to ensure safe collection access.
If the permit is approved, the permittee will also pay the City 18.5 percent of monthly gross receipts, and a five percent AB 939 fee based on the same monthly gross receipts.
FINANCIAL SUMMARY
The $100,000 permit fee will be applied to the Solid Waste and Recycling account number: 4560-000-470007-255-000-30-45-000-000
The monthly 18.5 percent permit fee will be applied to the following General Fund account: 0000-000-414038-100-000-00-00-000-000
The monthly five percent AB 939 fee will be applied to the following Solid Waste and Recycling account: 0000-000-414038-255-000-00-00-000-000
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.