REPORT TO THE CITY COUNCIL September 19, 2019 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: JERRY L. SCHUBER SR., Assistant Director Department of Public Utilities, Solid Waste Management Division BY: BRITTANIE FECHNER, Management Analyst II Department of Public Utilities, Solid Waste Management Division SUBJECT ..Title HEARING to approve items related to the granting of a Non-Exclusive Franchise for Roll-Off Collection Services 1. ***BILL NO. B-21 - (Intro. 8/15/2019) (For adoption) - Granting a non-exclusive roll-off franchise for roll-off collection within the City of Fresno to HD Matthews Demolition & Excavation (Citywide) (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends the City Council introduce an ordinance which grants a non-exclusive roll-off collection franchise to HD Matthews Demolition & Excavation, in preparation for a public hearing on the matter and final vote to approve the Non-Exclusive Roll-Off Franchise on September 19, 2019. EXECUTIVE SUMMARY The City Council approved an ordinance establishing a non-exclusive roll-off collection franchise system for private haulers under City Charter Article XIII, Section 1300 on July 21, 2011. To date, twenty seven (27) companies have applied and been approved to become franchisees. The most recent applications require City Council approval to be added to the list of franchisees. BACKGROUND On July 21, 2011, City Council adopted an ordinance establishing a Non-Excusive Roll-Off Franchise system to regulate roll-off hauler collection activities. The volume of roll-off materials collected is approximately 20-25% 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; * Implement the goals of the City's AB 939 Plan including the Source Reduction and Recycling Element as adopted by the City Council; * Support the goals of the City to achieve 75% diversion by 2012 and Zero Waste by 2025, which were adopted by City Council by establishing minimum diversion standards for roll-off materials (50% of C&D materials and 70% of recyclables); and * Increase the fees received from these companies from the previous material diversion fee of $17.70 per service location to a 10% franchise fee. Over the past five fiscal years the City of Fresno has received revenues of $3,646,780 from non-exclusive roll-off. Roll-Off Hauler Application Process Haulers may apply to the City to obtain a non-exclusive roll-off franchise. The applicant must describe and/or provide: * Information about the company * Qualifications of the company, which must include: ? Names and addresses (1) officers, directors, and associates; (2) persons and entities having five percent or more of ownership; and (3) Any parent or subsidiary or business entity owning or controlling in whole or in part applicant ? Description of applicant's experience ? Municipal references ? Customer references ? Proof of insurance ? Litigation and regulatory history ? Criminal history * Operations Information ? Diversion plan ? Description of equipment (trucks and containers) ? Collection schedule ? Description of the types of materials to be collected ? Processing facilities collector intends to use ? Hazardous waste procedures ? Customer service plans ? Billing services * Other information that may be requested by the Director of Department of Public Utilities. All franchise applications have been thoroughly reviewed and vetted by internal city staffs, who are experts in this area. Next Steps Per the City Charter, if the Non-Exclusive Roll-Off Franchises are to be awarded, the City Council must perform an introduction and first reading of an ordinance awarding the franchise. A public hearing for this issue will then be held on September 19, 2019. At the conclusion of the public hearing, the City Council will decide whether to award the franchise. If approved by City Council, the Director of the Public Utilities Department will execute the agreements with the franchisees listed on (Attachment 1). ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not implemented because awarding a Non-Exclusive Roll-Off Franchise is not awarding of a services or construction contract. FISCAL IMPACT In FY 2020, the City anticipates receiving approximately $1.3 million in total annual franchise fees from roll-off haulers. Attachments: Attachment 1 - List of Grantees Attachment 2 - Ordinance Granting Non-Exclusive Franchises Attachment 3 - Non-Exclusive Franchise Agreement - HD Matthews Demolition & Excavation