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
BILL - (for Introduction) Granting Big Bros Dumpsters Rentals, E&E Transport, LLC., Everyday Junk Removal & Hauling, Inc., and UC Cleanup Services a Non-Exclusive Franchise for Roll-Off collection services within the City of Fresno. (Citywide)
Body
RECOMMENDATION
Staff recommends the City Council introduce a Bill that grants a Non-Exclusive Roll-Off (NERO) collection 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 franchise on September 26, 2024, at 9:35 a.m.
EXECUTIVE SUMMARY
The City Council approved Resolution of Intention 2024-0187 on August 15, 2024. The next step is to introduce an ordinance establishing a NERO collection franchise system for private haulers under City Charter Article XIII, Section 1300. The most recent applications require City Council approval to be added to the list of franchisees. To meet the granted public hearing date and time of September 26, 2024, at 9:35 a.m., this item cannot be continued past August 29th, 2024.
BACKGROUND
On August 15, 2024, City staff went to the City Council to initiate the first of the three steps to establish a NERO collection franchises for Big Bros Dumpsters Rentals, E&E Transport, LLC., Everyday Junk Removal & Hauling, Inc., and UC Cleanup Services. The City Council approved the Resolution of Intention 2024-0187 allowing the staff to proceed with the second step of the process.
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 is 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 landfills.
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. The City Council approved Resolution of Intention 2024-0187 on August 15, 2024. 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 agreements with the franchises listed in the List of Grantees.
The City Attorney has reviewed and approved the Bill as to form.
ENVIRONMENTAL FINDINGS
The California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) provides that a project is exempt from CEQA if “the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” According to CEQA Guidelines section 15382, a “significant effect on the environment” is “a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance”.
Granting the proposed Non-Exclusive Franchise for Roll-Off collection agreements to these grantees would not result in an adverse change. Granting these agreements does not increase the number of service requests but allows for more options for customers to select from.
LOCAL PREFERENCE
Local preference was not implemented because a Bill for introduction 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:
Bill Granting NERO
Resolution of Intention 2024-0187
List of Grantees