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CC - Item 7A - Discussion Regarding SB 1383 - Organic Waste Reduction Policy and Program Development and ImplementationROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER` t l DATE: JULY 13, 2021 SUBJECT: DISCUSS SENATE BILL 1383 ORGANIC WASTE REDUCTION POLICY AND PROGRAM DEVELOPMENT AND IMPLEMENTATION SUMMARY In September 2016, Governor Brown signed Senate Bill (SB) 1383 Short -Lived Climate Pollutant regulations into law. The legislation set statewide methane emissions targets for California to reduce short-lived climate pollutants and divert organic waste from landfills. The emissions targets included 1) the reduction of organic waste disposal of 50% by 2020 and 75% by 2025 and 2) a 20% increase to edible food recovery by 2025. Beginning in 2022, all jurisdictions are required to implement mandatory organic waste collection and recycling services to commercial and residential properties. BACKGROUND The SB 1383 statue imposes significant organic and recycling waste reduction requirements to existing City waste collection policy and programs. Cities are responsible for implementing SB 1383 regulations in their communities and must coordinate with relevant county agencies, waste haulers, waste processing facilities, recyclers, commercial businesses, residents, and edible food recovery organizations. The state reduction targets are not an organic waste recycling target for jurisdictions; however, the City is required to develop, implement, and enforce an organic waste policy and program. Local government responsibilities include: • Evaluate the jurisdiction's readiness and capacity to implement SB 1383; • Provide organic waste collection to all residents and businesses; • Establish an edible food recovery program for all Tier 1 and Tier 2 commercial edible food generators that recovers edible food from the waste stream; • Conduct outreach and education to all affected parties, including generators, haulers, facilities, edible food recovery organizations, ,and city departments; • Procure certain levels of recycled organic waste products like compost, mulch, renewable natural gas (RNG); • Plan and secure access for recycling and edible food recovery capacity; AGENDA ITEM 7.A City Council Meeting July 13, 2021 Page 2 of 4 • Monitor and enforce compliance with SB 1383; and • Adopt an ordinance or similarly enforceable mechanism consistent with regulatory requirements; • Maintain accurate and timely records of SB 1383 compliance. Jurisdictions must have the policy and programs to comply with SB 1383 regulations in place by January 1, 2022. Additionally, CalRecycle can begin enforcement actions starting January 1, 2022. CalRecycle can issue a Notice of Violation or place the City on a Corrective Action Plan (CAP) determine the level of action necessary to remedy any violation. DISCUSSION The program development and implementation necessary to comply with SB 1383 regulations require recycling and waste compliance area expertise and a considerable dedication of time to ensure full compliance with all aspects of the mandate. City staff currently do not have the capacity to carryout such a tremendous new workload. Staff recommends retaining a consultant with the appropriate area of expertise to best position the City to meet all measurements of compliance and to secure the most advantageous contractual and enforcement outcomes related to new and existing waste and recycling programs. The scope of work for an RFP for SB 1383 Program Planning and Implementation Consulting Services includes but may not be limited to: • Draft an SB 1383 Organic Waste Reduction Ordinance that complies with SB 1383 regulations; • Review existing Franchise Agreement with Republic Services to examine if there are service tasks and processes currently performed that satisfy elements of the SB 1383 mandate; • Recommendation of new tasks and processes required by SB 1383 than can be assigned to the Franchise Haulers; • Draft a Franchise Agreement Amendment to ensure full compliance with SB 1383 regulations; • Meet with City staff to discuss potential negotiation objectives for the Franchise Agreement Amendments, including desired enhancements to services and contract terms; • Meet with City staff and waste hauler representatives to discuss and negotiate contract terms to comply with SB 1383 regulations; • Prepare a Recycled Organic Waste Product Procurement Policy to comply with SB 1383 regulations; • Meet with City Staff to review SB 1383 record keeping requirements and recommend a best practice to comply with SB 1383 regulations; and • Attend City Council meetings to present the proposed SB 1383 Organic Waste Reduction Ordinance, Franchise Agreement Amendment, and Recycled Organic Waste Product Procurement Policy. City Council Meeting July 13, 2021 Page 3 of 4 STAFF RECOMMENDATION It is recommended that the City Council direct staff to proceed with one of the following courses of action: 1. The City's Franchise Hauler will assist in the costs associated with retaining a consultant on the City's behalf to develop, implement, and administer the SB 1383 Organic Waste Reduction Program conditioned on a City authorized extension to the existing Franchise Agreement for Comprehensive Refuse Services with Consolidated Disposal Services (Republic Services); or 2. The City will retain independent oversight through the procurement of a consultant to develop, implement, and administer the SB 1383 Organic Waste Reduction Program at a cost of $65,000 for year one. This expense is not included in the 2021-2022 adopted operating budget. Therefore, if this option is selected, a budget amendment will be necessary. The amendment will be presented with the 1 st Quarter Budget Report. FINANCIAL IMPACT Option 1 does not present a fiscal impact at this time. Option 2 will require a $65,000 General Fund budget amendment. STRATEGIC PLAN IMPACT This item is consistent with the Strategic Plan's guiding principal for fiduciary responsibility of providing for transparency in financial management of City's finances and providing quality of life enhancement. City Council Meeting July 13, 2021 Page 4 of 4 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: A`Timad Ansari Acting Public Works Director