Non-Exclusive Solid Waste Franchise Renewals City Council June 5, 2017

Recommendations   Acknowledge that the non-exclusive Solid Waste Collection Franchise System Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061 (b)(3) Adopt a resolution declaring its intention to consider granting renewal of a non-exclusive franchise to 22 existing franchises Set a public hearing for June 19, 2017 to consider granting these franchises Direct the City Clerk to publish the resolution at least once in a newspaper of general circulation in the City not less than ten days prior to the date set for the hearing

Timeline 2007 – City Council approved closure of franchise system to new haulers 2012 – City Council approved 5-year contract term (requires annual City Manager approval) 2015 (Mar.) – City issued 5-year notice (State required) to haulers to allow potential solid waste franchise system changes (e.g. exclusive/non-exclusive) as early as 2020

Timeline continued 2015 (Aug.) – 3-year franchise system review by EAC, MSC & City Council resulting in ordinance amendment to open franchise system to organics haulers (only) & keep system closed to other new haulers 2017 (Jun.) – City Council considers contract renewals for current 22 franchise haulers for 2017-2022 (requires annual City Manager approval) 2018 (Aug.) – EAC, MSC & City Council (3-year review) to open or close system

Contract Renewal Twenty-two (22) franchise haulers up for renewal with a term from July 1, 2017 through June 30, 2022 (requires annual City Manager approval) The proposed franchisees have completed renewal applications & are in compliance with the provisions set forth in the non-exclusive Solid Waste Franchise System under Pasadena Municipal Code Chapter 8.61

Performance Requirements 60% recycling diversion for solid waste material & 75% recycling diversion for construction & demolition (C&D) debris or pay liquidated damages Security deposit ($10,000 or 1 month franchise fee payment, whichever is higher) Bulky & abandoned item collection Financial audits Vehicle inspections Emission standards Organics recycling

Franchise System Statistics Customer base 22 haulers service 3,485 commercial & multi-family customers (5 or more units) 5 haulers service 3,346 customers (96% of customer base) 17 haulers service 139 customers (4% of customer base) Type of service 6 haulers provide strictly C&D service 15 haulers provide solid waste & C&D service 1 hauler provides strictly recycling service

Bulky & Abandoned Items Franchisees are held accountable to remove bulky or abandoned items from their commercial & multi-family customer accounts within 24-hours Since the bulky & abandoned item collection service was initiated (Oct. 2012) franchisees have completed 3,308 bulky & abandoned item customer requests In 2016, franchise haulers completed 992 bulky & abandoned item customer requests

Bulky Item Outreach Print ads – Bill insert (January 2018) La Opinion & Pasadena Weekly (April & May 2017) Bill insert (January 2018) Social media posts City website Flyer to residents/contractors receiving warnings/citations The Graphics Department is currently developing another flyer more specific to Pasadena customers, as well as a newspaper ad and billing insert; all will include information on the 311 hotline and app.

Fiscal Impact Franchisees are required to remit to the City a fee of 23.066% of gross monthly customer receipts Franchisees are required to submit monthly revenue & tonnage reports to the City Franchisees are subject to annual audits conducted by outside consultants (hired by Public Works) to ensure the information provided to the City is accurate In FY 2017, the City estimates collecting approximately $4.9 million dollars in franchise fees