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Authorize the release of a Request for Proposals for the collection, transportation, and management of solid waste, recyclables and organics for the area currently being serviced by Republic Services; and Delegate authority to the County Administrator to execute a short-term contract at existing rates for the term of May 1, 2025 through June 30, 2025
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Published Notice Required? Yes ___ No X _
Public Hearing Required? Yes ___ No X _
RECOMMENDATION:
The Department of Resource Management and County Counsel recommend the Board authorize the release of a Request for Proposals for the collection, transportation, and management of solid waste, recyclables and organics for the area currently being serviced by Republic Services and delegate authority to the County Administrator to execute a short-term contract at existing rates for the term of May 1, 2025 through June 30, 2025.
SUMMARY/DISCUSSION:
On December 10, 2024 the Board of Supervisors approved four amendments to extend service agreements through March 31, 2025 to allow time to negotiate respective new contracts with Mount Diablo Resource Recovery, Recology Vacaville Solano, Recology Vallejo, and Republic Services for the collection, transportation, and management of solid waste, recyclables and organics in the designated unincorporated mandatory service areas. The four amendments maintained current services and rates paid by Solano County residents while new contracts were being negotiated. County staff have continued work to negotiate the appropriate services and rates for Solano County residents by ensuring residents receive the same or similar services as their City counterparts and avoid higher-than-usual costs associated with collection challenges in rural areas that lack the housing density and population growth of adjacent cities.
Any increase in rates for collection is subject to notice to the affected property owners pursuant to Proposition 218. Proposition 218 was adopted in 1996 and establishes procedures for new or increasing property related fees, assessments, or taxes. Garbage service is a property related fee as it is mandatory for all property owners in certain designated areas. For property related fees and assessments where the revenue goes directly to the service or benefit of the property owner, notice must be given to the property owner 45 days in advance of a public hearing where the public can provide oral testimony on the rate increase.
Negotiations are still ongoing and due to the 45-day noticing requirement to residents of a rate increase, four additional amendments are needed to extend service agreements through June 30, 2025. The Board delegated authority to the County Administrator on December 10, 2024 to execute any additional contract extensions needed while negotiations continue. Three out of the four service providers have agreed to extend the service agreements through June 30, 2025 without a rate increase so that contract terms can be finalized and the requisite notice to Solano County residents can be given before any rate increase takes effect. Any subsequent agreement beginning after July 1, 2025 will be subject to Board approval.
Republic Services has not agreed to an amendment from May 1, 2025 through June 30, 2025 that does not include rate increases. Solano County has the responsibility of noticing ratepayers of any increase 45 days in advance and of demonstrating the justification and benefit for the price increase. The County cannot comply with noticing obligations in sufficient time for services to continue uninterrupted for the period of May 1, 2025 to July 1, 2025 and Republic is unwilling to contract with the County for continued services while negotiations proceed unless they receive a rate increase. Therefore, the County seeks to issue a Request for Proposals (RFP) to procure an alternative contractor to allow services to continue at the current rate through June 30, 2025 and new agreement beginning July 1, 2025 once the affected Solano County residents are noticed and allowed to comment. Staff will return to the Board for approval of the new service contract once the Prop. 218 notice period is complete.
FINANCIAL IMPACT:
Costs associated with the preparation of this agenda item and the RFP are nominal and are absorbed by the Departments’ FY 2024/25 Working Budget. Costs for the garbage service will be paid by customers.
ALTERNATIVES:
1. The Board could choose not to authorize the Request for Proposal. This option is not recommended because the County would not be able to identify an alternative waste collector and would either have to agree to contract with the current waster collector at a rate increase in conflict with Proposition 218 or deny residents collection services.
2. The Board could choose not to delegate authority to the County Administrator to execute a short- term agreement for collection service. This action is not recommended because it would increase complexity of the contract administration and possibly delay services to ratepayers.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION