TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Overview of Restated and Amended Franchise Agreement - Waste Management, Inc.
end
body
RECOMMENDATION
This study session will provide an overview of the City’s proposed agreement, highlighting the City’s solid waste and organics programs, compliance and enforcement efforts under current State legislation and key updates and enhancements incorporated into the franchise.
FISCAL IMPACT
There is no direct fiscal impact to the City.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Financial Stability
• Public Service Excellence through Internal and External Partnerships
BACKGROUND
The City of Chino has maintained an exclusive solid waste franchise agreement with Waste Management, Inc. (WM) since 1969. The franchise agreement has been amended several times to address evolving regulatory requirements, service needs, and community expectations. The current 15-year agreement, approved in Fiscal Year 2017-18, is being restated and amended to incorporate new State legislation Senate Bill 1383 (SB 1383) and Assembly Bill 1826 (AB1826) governing organics collection, edible food recovery, and diversion mandates. The amendment also updates and enhances several sections of the agreement to reflect current operations, improve reporting and compliance, and strengthen overall service delivery to the community.
Discussion / Topics:
Key discussion topics include:
• Green Chino Programs and Community Outreach:
Review of recycling, compost giveaway, cleanup events, household hazardous waste collection, and public education initiatives promoting environmental sustainability and community engagement.
• Regulatory Compliance (SB 1383 & AB 1826):
Summary of organics collection requirements, edible food recovery programs, contamination audits, and enhanced City oversight to ensure compliance with State mandates.
• Franchise Agreement Updates:
Overview of revisions to the existing agreement, including enhanced reporting and enforcement provisions, dedicated customer service coordination, and expanded street sweeping services.
• Rate Structure and Fiscal Alignment:
Discussion of proposed rate adjustments consistent with regional market standards, an increase in the franchise fee from 10% to 12.5%, and continued financial stability of the Sanitation Fund.
• Community Partnership and Performance:
Highlights of WM’s long-standing investment in Chino through local facilities, CNG fueling infrastructure, support of community events and non-profits, and service performance with less than a 1% error rate.
ISSUES & ANALYSIS
The proposed Restated and Amended Franchise Agreement ensures continued compliance with State organics legislation, updates service standards, and enhances overall program performance. Key revisions strengthen reporting and enforcement provisions, expand community services, outreach/education and align the agreement with current operational needs and sustainability goals. Staff is seeking City Council input and guidance on the proposed amendment and intends to return to the City Council with the final agreement for consideration before the end of the calendar year.