Senate Bill No. 1383 (SB 1383) was signed into law on September 19, 2016, to require reduction of organic waste disposal by 50% by January 2020 and by 75% by 2025. Additionally, SB 1383 requires an increase of 20% in edible food recovery by 2025. SB 1383 is the most significant waste reduction mandate to be adopted in the State of California in the last 30 years and requires all jurisdictions to implement a mandatory organic recycling ordinance by January 1, 2022.  The regulations require jurisdictions to establish mandatory recycling programs for all businesses, residents and multi-family residences to capture food scraps, landscaping waste, and other organic waste materials in order to divert them from the landfills and meet the reduction targets. 

On December 14, 2021, the Garden Grove Sanitary District Board adopted Ordinance No. 11, which established mandatory recycling programs for all businesses, residents and multi-family residences to capture food scraps, landscaping waste, and other organic waste materials in order to divert them from the landfills and meet the SB 1383 reduction targets.

SB 1383 continues the recycling mandates imposed in Assembly Bill 1826 (AB 1826), which previously went into effect on April 1, 2016. AB 1826 required any business generating two (2) or more cubic yards of solid organic waste per week, and multi-family properties with five or more units, to recycle their organic waste (under AB 1826, multifamily properties are only required to recycle landscape debris). Additionally, AB 1826 required the Garden Grove Sanitary District to implement an organic waste recycling program that included identifying non-compliant businesses that are required to recycle organic waste and notifying the businesses of these requirements.  In 2018, the District and the City approved Amendment No. 3 to the franchise agreement with Republic Services to implement the commercial/multi-family organics program for the District and the City.  Since then, the District and the City have been working with their consultants to work with Republic Services in implementing new organics recycling programs.   

In order to implement all SB 1383 regulatory requirements, staff, with the assistance of HF&H Consultants, LLC, engaged Republic Services in negotiating revisions to the exclusive franchise agreement for solid waste collection services to establish and implement new organic recycling programs and recycling services, terms, and rates to come into full compliance with SB 1383 mandates. 

Staff arranged for two separate study sessions with the City Council/Board of Directors, one held on Tuesday, May 3^rd, and the second one held on Monday, May 16^th, to discuss the final proposal and different rate structure scenarios submitted by Republic Services.  

The final restated agreement, includes the following programmatic changes:

• New SB 1383 residential organic waste recycling program that includes a three-cart residential collection system; food waste and organics, including green waste, collected in green containers

• Refuse, recyclables, and organics collected from commercial and multi-family customers in carts, bins, and roll-off boxes

• New Multi-Family Bulky Item Collection Program 

• New Alley Clean Ups and Abandoned Item Collection Program

• New Annual Neighborhood Cleanup Events

• Increased Annual Community Contributions

• Recycling programs education and outreach

• Enhanced reporting requirements to assist the District and the City to comply with the reporting requirements to CalRecycle

• Extended the term of the agreement to be effective from July 1, 2022 through June 30, 2032.  The current 2010 agreement would have expired on June 30, 2024.

New rates are also established to compensate for the increased costs associated with the new organic recycling program but kept competitive with rates charged in neighboring jurisdictions.  Effective July 1, 2022, the rates for the most common services will be as follows:

• Residential 3-Cart Service Rate: $25.83/month
• Commercial 3-Yard Refuse Bin 1x/wk: $206.98/month
• Commercial 3-Yard Recycle Bin 1x/wk: $140.49/month
• Commercial 2-Yard Organic Bin 1x/wk: $97.11/month

For a list of all maximum rates effective July 1, 2022, please refer to Exhibit D of the attached Agreement.

For comparison, the rates for similar services in neighboring jurisdictions are as follows:

Monthly Residential Rates:

Monthly Commercial Rates for a 3 CY Bin Collected 1x/week:

Monthly Commercial Rates for a 2 CY Organics Bin Collected 1x/week:

A major component of the amended agreement is the implementation of a new residential organics recycling program.  Residents will continue to use three carts to recycle and dispose of refuse but will be directed to place their food waste in their green recycling cart (together with yard clippings and other green waste).  Starting on July 1, 2022, Republic Services will be mailing information to residents pertaining to the new organic and food waste recycling program, including cart labels to be placed in the green container to remind residents to place their food waste in their green containers.  The introduction of the program is scheduled to be completed by August 12, 2022.  In addition, the City’s website and Republic Services’ website will be updated to inform residents of the new programs.

Full description of the Services to be provided to Single-Family Residential, Multi-Family Residential and Commercial Services are included in Article 4 (Scope of Services) and Exhibit B of the attached Agreement.  The full schedules of Republic Services’ new organics recycling program implementation plan, including the outreach scheduled for commercial and multi-family customers is included in Exhibit J of the attached Agreement.  Exhibit K of the attached Agreement contains a description of the Initial Outreach Implementation Plan.  The Public Education and Outreach program is described in Exhibit C.

It is recommended that the City Council:

• Adopt the Resolution Approving the Amended and Restated Franchise Agreement with Republic Waste Services of Southern California, LLC, dba Garden Grove Disposal.

 It is recommended that the Sanitary District Board:

• Adopt the Resolution Approving the Amended and Restated Franchise Agreement with Republic Waste Services of Southern California, LLC, dba Garden Grove Disposal.

By:    Ana V. Neal, Principal Administrative Analyst  

          Omar Sandoval, General Counsel/City Attorney