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
***RESOLUTION - Of Intention by the Council of the City of Fresno, California, to grant a Non-Exclusive Franchise for Roll-Off collection services within the City of Fresno and setting the Public Hearing for Thursday, September 26, 2024 at 9:35 a.m. (Citywide) (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends the City Council adopt a resolution declaring its intention to award a Non-Exclusive Roll-Off (NERO) Franchise to Big Bros Dumpsters Rentals, E&E Transport, LLC., Everyday Junk Removal & Hauling, Inc., and UC Cleanup Services in preparation for a public hearing on the matter and final vote to approve the NERO collection franchise agreements on September 26, 2024 and authorize the Director of Public Utilities, or designee, to sign and execute all associated documents on behalf of the City.
EXECUTIVE SUMMARY
The City Council approved an ordinance establishing a NERO collection franchise system for private haulers under City Charter Article XIII, Section 1300 on July 21, 2011. The City accepts new applications from companies for NERO collection service and processes renewals every year from March 1st through April 30th. The most recent application requires City Council approval to be added to the list of franchisees. In order to meet the granted public hearing date and time of September 26, 2024, at 9:35 AM, this item cannot be continued past August 15, 2024.
BACKGROUND
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 19 NERO franchisees. The City accepts new applications from companies for NERO collection service and processes renewals every year from March 1st through April 30th. 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 applications have been thoroughly reviewed and recommended for approval by City staff.
Per City Charter, if NERO collection franchises are to be granted, City Council must perform an introduction and first reading of an ordinance granting the franchise. A public hearing will be held on September 26, 2024, for this. At the conclusion of the public hearing, City Council will decide whether to award the franchise.
If approved by City Council, the Director of the Department of Public Utilities, or designee, will execute the agreement with the franchises listed in the List of Grantees. The City Attorney has reviewed and approved the Resolution and Agreements as 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 resolution declaring an intention to grant a Non-Exclusive Roll-Off Franchise is not a grant of a services or construction contract.
FISCAL IMPACT
The total annual revenue the City anticipates to receive from non-exclusive roll off agreements is approximately $1,400,000. Franchise fees are 10% of gross revenues remitted from roll-off contractors.
Attachments:
List of Grantees
Resolution of Intention with agreements attached