2020-03-04 City Council Item No 12.2 Solid Waste Amended and Restated Franchise Agreement Presentation Regular MEETING - Additional Meeting MaterialsDiscussion Item 12.2 Solid Waste Amended and Restated Franchise Agreement Jonathan G. Smith, Director of Public Works/City Engineer Samantha Rodriquez, Senior Management Analyst March 4, 2020 Background Agreement History •10 year old agreement •Expires December 31, 2025 City History •Significant growth •Regulatory changes Situation •City outgrew existing agreement •Waste Management wished to continue partnership Negotiation Objectives •Waste Management continued partnership •Enhanced services •Regulatory compliance •No rate increase Amendment Summary •New and enhanced programs •Regulatory compliance •Community benefits •Term Amendment Summary (Cont.) New and Enhanced Programs •Community beautification •Illegal dumping (prevention & response) Amendment Summary (Cont.) Regulatory Compliance •Support personnel •AB 341/1826, SB 1383 outreach •Municipal code revisions Amendment Summary (Cont.) Community Benefits •One-time extension fee $3M •Annual franchise fees 12% •Annual program fees & staff reimbursement $450K Amendment Summary (Cont.) Term •15 years + optional 5 year extension •Industry standard term •Capitalization of equipment Negotiation Results Objectives Achieved •Waste Management continued partnership with City •Enhanced services •Regulatory compliance •No rate increase End Result •Successful negotiation •Comprehensive amendment Thank You Waste Management! Questions?