In September 2016, then Governor Jerry Brown signed Senate Bill (SB) 1383 into law to achieve a reduction in the statewide disposal of organic waste. Organic waste is primarily comprised of food scraps, green waste, landscape and pruning waste, wood and lumber, and paper products. Keeping organic waste out of landfills reduces the amount of greenhouse gas, such as methane, that is produced when organic waste breaks down. SB 1383 builds upon existing legislation related to solid waste and recycling, including Assembly Bill (AB) 939, AB 341, and AB 1826. 

 

In order to comply with state mandates, the Sanitary District Board and City Council approved the Agreement with Republic in June 2022 that also included new programs and enhanced services for the District. The Agreement went into effect on July 1, 2022. During development of the Agreement, the Board of Directors expressed a desire for an update on the implementation of the Agreement after time had passed. 

The discussion will be split into two sub-parts focusing on general contract performance and SB 1383 implementation.

 

General Contract Performance Update

During the first year of the Agreement, District and Republic staff successfully implemented new programs such as daily abandoned item collection and alley sweeps, neighborhood cleanups, expansive public education/outreach, residential food waste collection, and began automatic enrollment of SB 1383 services for customers. These programs were successfully implemented while both District and Republic teams experienced staff turnover in multiple positions. One of the key staff updates included Republic appointing a new General Manager in October 2022. Shortly after, one residential and one commercial route supervisor positions were assigned to provide additional operational support in the District. Republic also onboarded a new Manager of Municipal Sales to act as the Agreement liaison between Republic and District staff in February 2022. The new Republic management staff assigned to the District have assisted in resolving some of the challenges experienced over the course of implementing new programs for the Agreement.

 

In early October 2022, District staff began documenting issues and inquiries reported by District constituents related to Republic’s collection operations. In the first few months of tracking constituent calls, most of the observed issues related to either missed collections or service carts not being delivered per the timeline allowed in the Agreement. Republic brought in an outside contractor to assist with container deliveries, which were reportedly delayed due to supply chain and inventory issues. Both issues continue to be monitored per the terms of the Agreement. In January 2023, Republic changed the way they track customer complaints. Using information provided by Republic, quarterly records show there were 2,391 reported missed collections across all District customer types. In comparison to the total of approximately 2.6 million service opportunities in the six-month period, 0.092% of all service opportunities were reported as missed collections. The contract allows for a 24-hour window for Republic to collect a reported missed container so the actual total for contractually defined missed collection is smaller than the prior noted percentage. The figures in Attachment A provide additional analysis of Republic’s inquiry and complaint log records from January through June 2023.

 

The issue of missed collections has most notably impacted commercial and multi-family bin service customers. During peak service delays, Republic consistently reported that over 100 bins per day were not being serviced on the designated service day. While most bins were collected the next service day, some customers did not receive service after the contractually allowed 24-hour correction period. Republic staff identified that the root cause of the issue was that the commercial and multi-family routes were too large. These issues were amplified in March and April 2023 when the County landfill system began operating at lower capacity due to safety concerns regarding wet weather conditions, which impacted wait times at the landfill gates. Other reasons Republic reported that bins were not collected include truck breakdowns, or the use of a “fill-in” drivers who are not as familiar with a route. In June 2023, the commercial route supervisor began the process of reviewing and changing the routes to ensure that all bins scheduled to be serviced are picked up on their scheduled day, and new containers for SB 1383 compliance are integrated into the routes without service delays.

 

While the route evaluations and re-routing will take time to complete, changes have already been implemented. The commercial route for traditional recycling has been expanded from three (3) to five (5) collection days a week. Republic has also expanded the commercial organics route, specific to Garden Grove, that is now operating five (5) days per week.

 

Due to the frequent issues the District is experiencing with commercial trash collection, in July 2023, the District issued a notice of intent to assess Liquidated Damages letter to Republic. Per the Agreement, the District may assess Liquidated Damages for breaches of the Agreement, in the form of financial penalties, once official notice has been provided. The District will continue monitoring efforts and will provide ongoing updates. No liquidated damages have been assessed.

 

SB 1383 Implementation

Impacts for Residential Customers

Prior to the implementation of SB 1383, Garden Grove residents at single-family properties were using a 3-cart system, separating their recyclables and yard waste from their general landfill waste. As a result of SB 1383, residents were advised in August 2022 that they are required to also separate their food waste and place it in their existing yard waste container. The residential food waste program began September 1, 2022. The District and Republic continue to monitor participation through annual container inspections and provide additional education and outreach to increase participation. The District monitors the materials being recycled or recovered from landfilling during monthly meetings with District, Republic and consultant staff.

 

Commercial and Multi-Family Customers

SB 1383 requires all generators of trash to keep recyclables and organic materials from going to the landfill. As of December 2022, the District had 3,400 commercial and multi-family accounts that were not participating in SB 1383 state-mandated programs. 

 

In February 2023, District and Republic staff began the auto-enrollment program for commercial properties who were not compliant with state-mandated programs. The auto-enrollment program is enrolling approximately 250 accounts per month, for a total of over 2,400 commercial and multi-family property customers receiving new services. 

 

Republic is mailing notices to all non-compliant locations and is conducting site visits to verify if a location is eligible for a program waiver. While out in the field performing site visits, Republic staff are reporting containers from other service providers to the District for verification and right-sizing customer service levels.

 

Automatic enrollment for multi-family properties began in September 2023. Outreach for multi-family properties to voluntarily comply with the program has begun. Through the process, condo and town home developments that have individual cart service, but do not have a landscape debris cart, will be delivered an organics cart included in the residential service rates.

 

Full compliance is anticipated in alignment with the District’s Compliance Action Plan (CAP) that was submitted to CalRecycle, the state enforcement agency. The District has been providing bimonthly CAP reports to CalRecycle and participating in bimonthly meetings with a state representative. Accounts that refuse mandated service or are non-compliant at the end of the auto-enrollment period will receive further communication regarding their compliance status in 2024 from District staff in alignment with SB 1383’s enforcement requirements and the Garden Grove Sanitary District Code of Regulations.  

 

Route Reviews

SB 1383 requires the District or Republic to conduct annual route reviews for incorrect container use monitoring. Republic completed the 2022 route reviews in December and is currently conducting the 2023 route reviews.

 

The reviews consist of a random inspection of 1% (or 25 accounts, whichever is larger) of containers on each trash, recycling, and organic waste collection route. If materials are found to be placed in the incorrect container, the customer will receive a container inspection tag that lists the incorrect material and provides education on how to fix it. If the contents of the container are not hazardous, the customer will receive a courtesy pickup and the contents may be disposed of at the landfill due to the incorrect materials. Otherwise, the customer will receive a non-collection notice where they are instructed to remove the incorrect materials before the container can be serviced on their next regular collection day. Per the Agreement, residential customers will receive three (3) warnings, while commercial and multi-family with bins receive one (1) warning before Republic can assess a fee for the extra cost in processing the contaminated container.

 

Summary

Public Works and District staff continue to work with Republic and monitor their performance of the Agreement. All parties meet on a monthly basis to ensure all new elements of the Agreement are being tracked, implemented, and monitored, in addition to daily conversations as issues arise. As a result, the District’s residents and businesses are receiving the additional services included in the amended Agreement and issues are being addressed as they are reported. The District is making progress towards full compliance with state-mandated regulations.