REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: AHMAD ALKHAYYAT, PE, MBA, Assistant Director
Department of Public Utilities - Solid Waste Management Division
SUBJECT
Title
Hold a public hearing and approve items related to the granting of a Non-Exclusive Roll-Off Franchise for roll-off collection services (Citywide)
1. Hearing in accordance with Fresno City Charter Section 1303 related to ordinance and adoption of ordinance
2. ***BILL No. B-22 (Introduced June 29, 2023) (For adoption) of the City of Fresno, which grants to Valley Dumpster Service LLC, a non-exclusive franchise for roll-off collection services within the City of Fresno (Subject to Mayor’s veto)
3. Authorize the Director of Public Utilities to execute an agreement of Non-Exclusive Franchise for Roll-off Collection Services with the City of Fresno
Body
RECOMMENDATION
Staff recommends that Council hold a public hearing, adopt the ordinance, and authorize the Director of Public Utilities to execute the Agreement granting Valley Dumpster Service LLC, a Non-Exclusive Roll-Off Franchise for roll-off collection services with the City of Fresno.
EXECUTIVE SUMMARY
The City Council approved Resolution of Intention 2023-149 on May 25, 2023 and introduced the Bill on June 29, 2023, establishing a Non-Exclusive Roll-Off (NERO) collection franchise system for private haulers under City Charter Article XIII, Section 1300. The most recent application requires City Council approval to be added to the list of franchisees.
BACKGROUND
On May 25, 2023, staff went to City Council to initiate the first of the three steps to establish non-exclusive roll off collection franchise to Valley Dumpster Service LLC. The City Council approved the Resolution of Intention 2023-149 allowing the staff to proceed with the second step of the process. The Bill was introduced on June 29, 2023.
On July 21, 2011, the City Council adopted an ordinance establishing a NERO collection franchise system to regulate roll-off hauler collection activities. The Solid Waste Management Division (SWMD) currently oversees 26 NERO franchisees. The City accepts new applications from companies for NERO collection service throughout the year and processes renewals from March 1 through April 30. The volume of roll-off materials collected is approximately 20-25 percent of the solid waste stream and highly recyclable, therefore the City has implemented the system to comply with current and anticipated State regulations related to the diversion of such materials from landfill diversion.
During the NERO application process, the haulers may apply to the City to obtain a NERO franchise. The applicant must describe and provide information, qualifications, type of operations, and other details about the company as requested by the SWMD.
The submitted NERO franchise application has been thoroughly reviewed and recommended for approval by City staff.
Per City Charter, if NERO collection franchises are to be awarded, City Council must perform an introduction and first reading of an ordinance awarding the franchise. The third and final step is to hold a public hearing for this issue and at the conclusion of the public hearing, the City Council will decide whether to award the franchise.
If approved by City Council, the Director of the Department of Public Utilities will execute the agreement with the franchisee, Valley Dumpster Service LLC. The City Attorney has reviewed and approved to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) guidelines Section 15378 this item does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was not implemented because a Bill for introduction to award a Non-Exclusive Roll-Off Franchise is not an award of a services or construction contract.
FISCAL IMPACT
In FY24, the City anticipates receiving approximately $1,180,000 (One Million One Hundred Eighty Thousand Dollars) in total annual franchise fees from roll-off haulers.
Attachments:
Attachment 1 - Resolution 2023 -149
Attachment 2 - Bill Granting NERO - Valley Dumpster Service LLC
Attachment 3 - Non-Exclusive franchise Agreement - Valley Dumpster Service LLC
Attachment 4 - City of Fresno NERO Application Cover Letter