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Environmental Management Department recommending the Board approve and authorize the Chair to execute the Second Amendment to the Solid Waste Services Franchise Agreement 6917 with Tahoe Truckee Sierra Disposal for an additional three years from September 29, 2025, through September 28, 2028.
FUNDING: Garbage Franchise Fees. (No Federal Funds)
Body
DISCUSSION / BACKGROUND
On April 4, 1995, the County of El Dorado entered into an Agreement with Tahoe Truckee Sierra Disposal, now referred to as the “Franchise Agreement,” granting Tahoe Truckee Sierra Disposal (TTSD) the exclusive right and obligation to collect and dispose of municipal solid waste generated by residential, commercial, and industrial customers in the designated franchise area. This Agreement was amended on November 10, 2009, for another five (5) year period to terminate on December 31, 2014, with two options for two (2) year renewals. On May 8, 2012, the Board of Supervisors directed Environmental Management staff to engage in good faith negotiations with Tahoe Truckee Sierra Disposal (TTSD) and return to the Board with a new Franchise Agreement before December 31, 2014. On July 1, 2014, TTSD notified the County that they were exercising their contractually provisioned option to extend the Agreement two (2) additional years, which the Board approved on October 14, 2014. The Environmental Management Department and Tahoe Truckee Sierra Disposal had engaged in extensive negotiations for an entirely new contract following the Board’s direction on May 8, 2012, and they continued these negotiations toward a new, broader Agreement that included a rate-setting manual.
On October 27, 2015, Legistar file 15-0903, following extensive negotiations between the Environmental Management Department and Tahoe Truckee Sierra Disposal, the Environmental Management Department brought Resolution No. 161-2015, requesting the Board of Supervisors (Board) approve a new Solid Waste Services Agreement 6917 with TTSD for the collection of solid waste throughout the franchise area. The new Agreement was for a term of seven (7) years and included two (2) options for three (3) year extensions. The negotiated Solid Waste Services Agreement (Franchise Agreement) between the County of El Dorado and Tahoe Truckee Sierra Disposal (TTSD) provides for increased services to customers, a standardized rate-setting procedure, and additional program enhancements that comply with State-mandated programs and the Board-approved County Solid Waste Management Plan. This Agreement allowed the County to meet its seventy-five percent (75%) diversion goal in 2020 per the requirements of AB 341.
TTSD requested the first of two three-year renewals to the Agreement on June 22, 2022. The Board approved Amendment I of the Solid Waste Services Franchise Agreement 6917 with Tahoe Truckee Sierra Disposal on September 27, 2022. Legistar file 22-1610, for a new expiration date of September 28, 2025.
In accordance with Section 11 of the Tahoe Truckee Sierra Disposal (TTSD) Agreement (Attachment B), a letter requesting the second of two (2) allowed three (3) year renewals was received from TTSD on February 26, 2025 (Attachment C).
Tahoe Truckee Sierra Disposal also requested that the County consider making service in the Franchise area mandatory, which would lower the cost of service for individuals in the area, diminish illegal dumping, and support the goals of local environmental stewardship, which is reflected in the Resolution for Section 11, Term. Per Board Policy A-3, EMD will bring an item to the Board for conceptual approval to modify County Ordinance 8.42, and if approved, bring a revised Ordinance back to the Board for a first and second reading for passage.
Tahoe Truckee Sierra Disposal (TTSD) operates in an area that has been issued a high-elevation waiver from the requirements to separate and recover food waste and food-soiled paper as required by SB 1383. TTSD has been in material compliance with the terms and conditions of the Agreement. Environmental Management recommends that the Board approve and authorize the second of two (2) extensions of the current Franchise Agreement and extend this Agreement for three (3) years.
ALTERNATIVES
The Board may choose not to extend this Agreement. The County would be without a designated waste hauler and would not be in compliance with the California Integrated Waste Management Act of 1989 (AB 939), which requires local agencies to make adequate provisions for solid waste handling within their jurisdictions. The Board previously determined that pursuant to California Public Resources Code Section 40059(a)(1) and (2), the public’s health, safety, and well-being require an exclusive franchise agreement to be awarded. If the Board chooses not to extend this Agreement, we will be outside compliance, and another Franchisee must be sought.
PRIOR BOARD ACTION
October 27, 2015 – Legistar file 15-0903 – Board approved Solid Waste Services Franchise Agreement 6917
September 27, 2022 – Legistar file 22-1610 – Board approves Amendment I to the Solid Waste Services Franchise Agreement 6917
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement and Contracts and County Counsel have reviewed and approved.
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
No Fiscal Impact or change to Net County Cost associated with this item. The County franchise rate of five percent (5%) will remain unchanged.
CLERK OF THE BOARD FOLLOW-UP ACTIONS
Obtain the Board Chair's signature on the original Amendment, forward it to Procurements and Contracts, and send an electronic copy to EMD.
STRATEGIC PLAN COMPONENT
CONTACT
Jeffrey Warren, REHS, Director
Environmental Management Department