REPORT TO THE CITY COUNCIL
FROM: PAUL AMICO, PE, Director
Department of Public Utilities
BY: JAMES VERROS, Assistant Director
Department of Public Utilities - Solid Waste Management Division
SUBJECT
Title
Approve a First Amendment to the Service Agreement with West Coast Waste to extend the term of the Agreement to November 30, 2026, and a one-time retroactive payment of $1,050,156.96 for services rendered from December 31, 2023 to May 31, 2026 (Citywide)
Body
RECOMMENDATION
Staff recommends that City Council approve the First Amendment to the Service Agreement with West Coast Waste to extend the term of the Agreement to November 30, 2026, provide a one-time retroactive payment of $1,050,156.96, and authorize the Director of Public Utilities, or designee, to execute the First Amendment on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The City entered into a service agreement with West Coast Waste in 2016 for disposal and processing of green waste, and the tipping fee charged for disposal and processing has remained fixed since that time. In 2023, the City amended the service agreement with the second local green waste processer to include food waste recycling to meet the requirements of Senate Bill 1383. That amendment included a schedule of tipping fees that accounts for the additional costs to process food waste, and the tipping fee increases each fiscal year to account for cost escalation. West Coast Waste’s fixed tipping fee did not match the second processor’s, and a one-time payment is needed that covers the difference between West Coast Waste’s previous per-ton rate and the amended per-ton rate from December 1, 2023, to May 31, 2026. The First Amendment will also extend the term of the agreement to November 30, 2026.
BACKGROUND
On May 1, 2016, the City entered into a Service Agreement with West Coast Waste for the processing of green waste materials collected by the City, that included a $16.75 per ton tipping fee that has remained unchanged since 2016.
The First Amendment extends the agreement to November 30, 2026 and it includes a one-time retroactive payment of $1,050,156.96 to cover the difference between West Coast Waste’s $16.75 tipping fee rate and the second processor’s higher tipping fees for processing food waste.
ENVIRONMENTAL FINDINGS
On February 25, 2016, the City Council adopted a finding that the ten year service agreement with West Coast Waste was statutorily exempt to CEQA pursuant to CEQA Guidelines section 15061(b)(3). The Amendment does not change the terms related to the processing of green waste. Staff has determined that the exemption still applies; no further review is required.
LOCAL PREFERENCE
Local preference is not implemented because this amendment is not an award of a construction or services contract.
FISCAL IMPACT
There is no impact on the General Fund. This project is located citywide. Funding for services is included in the approved Fiscal Year 2027 and Fiscal Year 2028 Solid Waste Enterprise Fund budget.
Attachments:
First Amendment to Service Agreement with West Coast Waste, Inc.
Service Agreement with West Coast Waste, Inc.