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 Actions pertaining to adopting an ordinance granting Non-Exclusive Roll-Off Franchises (Citywide): 1. Hold a hearing on September 26, 2024, at 9:35 a.m. in accordance with Fresno City Charter Section 1303 related to the ordinance and adoption of the ordinance; 2. ***BILL No. B-28 (Introduced August 29, 2024) (For adoption) of the City of Fresno, California, to grant 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 (Subject to Mayor's veto); 3. Authorize the Director of Public Utilities, or designee, to execute the agreements of Non-Exclusive Franchise for Roll-Off Collection Services with the City of Fresno. ..Body RECOMMENDATION Staff recommends that the Council hold a public hearing, adopt the ordinance, and authorize the Director of Public Utilities to execute the agreements granting Big Bros Dumpsters Rentals, E&E Transport, LLC., Everyday Junk Removal & Hauling, Inc., and UC Cleanup Services each a Non-Exclusive Roll-Off (NERO) Franchise for Roll-Off Collection Services with the City of Fresno. EXECUTIVE SUMMARY The City Council approved the Resolution of Intention 2024-187 on August 15, 2024, and introduced the Bill on August 29, 2024, establishing a NERO collection franchise system for private haulers under the City Charter Article XIII, Section 1300. The most recent applications require City Council approval to be added to the list of franchisees. BACKGROUND On August 15, 2024, City Council approved a resolution declaring its intention to award a NERO collection franchise for Big Bros Dumpsters Rentals, E&E Transport, LLC., Everyday Junk Removal & Hauling, Inc., and UC Cleanup Services. The ordinance for introduction was approved on August 29, 2024, and completion of these two steps of the NERO process allowed staff to continue to this third and final step to adopt the ordinance. 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 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. The third and final step is to hold a public hearing for this issue and at the conclusion of the public hearing, City Council will decide whether to grant 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 the staff report and approved 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 commonsense 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 adoption and a franchise ordinance is not an award of a services or construction contract. FISCAL IMPACT The annual revenue from Non-Exclusive Roll-Off agreements budgeted in Fiscal Year 2025 is $1,298,000. The franchise fee is 10% of gross revenues remitted from roll-off contractors and due to the city monthly. There is no expenditure impact to the General Fund, application fees cover the cost of processing NERO applications. This is a citywide project. Attachments: Bill Granting NERO Resolution of Intention 2024-187 List of Grantees