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Home My WebLink About09 - Amendments to the Non -Exclusive Franchise Agreement for Commercial Solid Waste Handling Services - PowerPointProposed Amendment to the Non -Exclusive Franchise Agreement for Commercial Solid Waste Handling Services PUBLIC WORKS DEPARTMENT REFUSE DIVISION October 22, 2019 Item No. 9 �n x CITY COUNCIL MEETING TUESDAY, OCTOBER 22, 2019 CALRecycle Compliance CalRecycle is the State Agency that Oversees Solid Waste and Recycling in California CalRecycle Enforces State Diversion Mandates, including: AB 341 — Requires Businesses to Recycle AB 1826 — Requires Businesses to Recycle Organic Waste During its Annual review in 2017, CalRecycle noted that the City had low AB 341 and AB 1826 Compliance Rates City Avoided further Compliance action by Committing, in writing, to Passing an Ordinance Requiring Businesses to Recycle AB 939 50% Jurisdiction Diversion Requirement by 2000 . -. .4 AB 341 Mandatory commercial recycling; State Goal of 75% Diversion by 2020 AB 1826 Mandatory Commercial Organics Recycling; Goal of 50% Reduction in Organics Disposal by 2020: AB 1594 Landfill Alternative Daily Cover no longer Considered Diversion in 2020 SB 1383 50% Reduction in Organics Disposal by 2020 and 75% by 2025, and 20% Recovery of Edible Food by 2025 CALRecycle Compliance January 2019 - City Council Subcommittee meets Monthly to review Solid Waste and Recycling Compliance Items September 2019 - Council Approved an Ordinance Revision requiring Businesses to Recycle Present - The Revised Ordinance requires Conforming Amendments to the City's Non -Exclusive Commercial Franchise Agreements Current Agreement The City's current Non -Exclusive Commercial Hauler Franchise Agreement was last updated in 2017. The Current Franchise is Effective through 2024. Now contains Hauler Performance Requirements that have Helped to increase the City's AB 341 and AB 1826 Compliance Rates. However, after Administering the Revised Franchise for over 20 months Amendments are Needed to Comply with Applicable State Laws. Summary of Proposed Amendments Detailed Description of the Haulers' Diversion Program Exhibit E - Detailed Direction to Tier 1 Franchisees regarding required steps to implement State Compliant Diversion Programs at a Business or Multi -Family Property. Provides Franchisees an Avenue to Refer Non -Compliant Customers to the City for Enforcement Action Insurance Requirements "...the City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Franchisee ninety (90) days advance written notice of such change." City provided notice to the franchise haulers of the following modifications to the mandatory minimum insurance coverage requirements : General Liability $1M $2M General Aggregate $1M $4M Auto Liability $1M $10M Pollution Liability -- $5M Pollution Aggregate -- $10M Contract Start Date 11/07/17 01/01/20 Other Notable Changes CALGreen Harmonization: Updates Minimum C&D Diversion Rate Requirement to Match CALGreen's Minimum Diversion Percentage Collision Avoidance Systems: Amendment modifies Section 18.0 to require all Franchisees Install Best Available Technology for Collision Avoidance Systems on all Vehicles Operating within the City of Newport Beach. Further, all Franchisees will be required to provide Annual Reports . Clarifies Terms and Definitions for Diversions and Commercial Refuse Section 16 (Reporting) Subpart A 4 has been changed to require reporting of actual tons collected instead of "cubic yards on service". This is needed to track and report diversion quantities. Comments/Questions Your Public Works Department Protecting and Providing Quality Public Improvements and Services Reference Slides Current vs. Proposed Open Market Franchise Irvine Costa Mesa NB RES Exclusive Commercial/Residential Franchise 10/1/2004, NB COM NB CURRENT PROPOSED Laguina Mission Tustin Laguna Hills Stanton Anaheim Niguel Viejo Lake Forest Workers Comp Statutory Statutory $1M $1M $1M $1M $1M Statutory $1M $1M General Liability $1M $2M $2M $1M $5M $10M $10M $10M $10M $10M $10M $10M General Aggregate $1M $4M $4M $1M $10M $10M $10M $10M $10M $10M $10M Auto Liability $1M $10M $2M $1M $5M $10M $10M $10M $10M $5M $10M $10M Pollution Liability - $5M $1M $1M $5M $1M $1M $2M $1M Pollution Aggregate - $10M $2M $10M $1M $1M $2M $1M Physical Damage $100K $100K $100K $100K 10/1/2004, amended CONTRACT START DATE 11/7/2017 1/1/2020 2018 2014 4/1/2019 10/1/2014 1/1/2019 1/1/2021 Amended 2012 Amended 2012 5/1/2014 AB 341 Compliance Rate ■ Compliant AB 341 accounts ■ Non-compliant AB 341 accounts Approx. 25 accounts AB 341 Non-compliant AB 1826 Compliance Rate ■ Compliant AB 1826 Accounts ■ Non-compliant AB 1826 Accounts Approx. 200 accounts AB 1826 Non- compliant* *Site audits will be conducted in Fall 2019 to verify compliance status