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HomeMy WebLinkAboutD-3 Staff Report - Approve Proposed Changes to Athens Franchise AgreementSCHEDULED ITEM D-3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: AUGUST 16, 2021 SUBJECT: APPROVAL OF NECESSARY MEASURES TO COMPLY WITH SENATE BILL 1383 AND DIRECTION REGARDING POTENTIAL ENHANCEMENTS TO THE ATHENS SERVICES FRANCHISE AGREEMENT BACKGROUND: The City of Azusa has an exclusive franchise agreement with Arakelian Enterprises, Incorporated dba Athens Services in providing refuse collection and recycling services since October 2000. The agreement has not been updated since then except for necessary amendments to comply with any changes in the law and extraordinary cost adjustments allowed in the agreement. In order to comply with Senate Bill 1383, the trash collection and recycling services provided to Azusa residents and businesses will require significant changes in the agreement. There are also proposed enhancements to the contract that will provide additional value to residents and businesses as the City continues to grow and change. At the City Council study session held on July 26, 2021, Athens Services presented a proposed amendment to their franchise agreement, which included additional services for compliance with the requirements of SB 1383 and the provision of clean city initiatives in the downtown area. Athens Services has since revised its proposal to address City Council comments received at the study session, as shown below in Additional Contract Enhancements Items 2, 4, & 9 and highlighted in yellow in Attachment 1. RECOMMENDATION: Staff recommends the City Council take the following actions: 1) Provide direction regarding SB 1383 compliance and franchise agreement enhancements proposed by Arakelian Enterprises, Incorporated dba Athens Services and direct Staff to i) negotiate an amended franchise agreement for consideration at the September 20, 2021 City Council Meeting and ii) prepare an SB 1383 compliance ordinance for consideration at the November 1, 2021 City Council Meeting. APPROVED CITY COUNCIL 8/16/2021 Proposed SB 1383 Compliance & Athens Franchise Agreement Changes August 16, 2021 Page 2 ANALYSIS: In 2016, Senate Bill 1383 (Short-Lived Climate Pollutants) was signed into law in a statewide effort to reduce short-lived climate pollutants, namely methane emissions created by organic waste, dairy, and livestock. The bill sets statewide targets to reduce organic waste sent to landfills and rescue at least 20% of edible food currently thrown away. Pursuant to SB 1383, jurisdictions, including the City of Azusa, are mandated to require, by ordinance and enforcement mechanisms, all residents and businesses to divert organic waste from landfills to recycling facilities; recover at least 20% of edible food instead of throwing it away; and procure recycled organic waste products for use within the City. The new law is effective on January 1, 2022. SB 1383 is the most significant waste reduction mandate to be adopted in California in the last 30 years. It builds upon AB 1826, the Mandatory Commercial Organics Recycling Law, which jurisdictions have been implementing since 2016. Methane emissions resulting from the decomposition of organic waste in landfills are a significant source of greenhouse gas (GHG) emissions contributing to global climate change. Organic materials account for a significant portion of California's overall waste stream. Organic waste means food waste, green waste, landscape and pruning waste, organic textiles and carpet, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludge. The statewide goal is to reduce methane emissions from organic waste disposed of in landfills by increasing food waste prevention, encouraging edible food rescue, and expanding composting and organic waste anaerobic digestion facilities throughout the state. Senate Bill 1383 COMPLIANCE The following summarizes the requirements for the City of Azusa to comply with SB 1383 and overview of Athens Services Proposal to help the City comply. More details are provided in the attached proposal. 1) Provide organics collection services to all residents and businesses. SB 1383 requires each jurisdiction to provide all residents and businesses organic waste collection service, track contamination of the organic waste stream with refuse, provide training and education to residents and business with excessive contamination, and may impose penalties to violators beginning in 2024. Athens’ Compliance Proposal: Currently, residential customers purchase their own trash receptacles. In this program, Athens will provide compliant and standardized trash receptacles. The list of acceptable materials in each container will be discussed by Athens Services. • Single Family Collection Service Athens to provide a 3-barrel automated collection program with the standard level of service that includes (1) 96-gallon trash, (1) 96-gallon recycle, and (1) 96-gallon organics barrel and unlimited bulky waste collection during trash day with 24-hour advance notice. • Multi-Family (MF) Collection Service MF with 1-4 units will have the option to subscribe to barrel service. MF with 5 units or more will be required to subscribe to bin service for mixed waste collection and barrel service for organics. MF customers will also get unlimited bulky waste collection with 24-hour advance notice. Proposed SB 1383 Compliance & Athens Franchise Agreement Changes August 16, 2021 Page 3 • Commercial & Multi-Family Organics Program MF with 5 units or more and commercial customers will be required to subscribe to bin service for mixed waste collection and barrel service for organics. Athens Services is proposing a hybrid program for organics, in which the customer will receive a declining credit to cover part of the organics barrel service, as shown in Table 1. In year 4, customers will no longer receive a credit, and will be paying the full amount listed in the rate sheet for organics service required by SB 1383. Table 1. Organics Hybrid Program Payment Structure 2) Pass a Mandatory Organics Recycling Ordinance. Jurisdictions are required to pass an ordinance to have an inspection and enforcement program designed to ensure all trash generators recycle organic waste. Athens proposal will help the City in its enforcement program. Athens’ Compliance Proposal: • Provide monitoring of the collection routes and track contamination in the waste stream by conducting ongoing reviews. • Conduct quarterly route reviews for commercial and residential customers and document findings and capture photos to be stored in a database as required by SB 1383. • Provide data and documentation to support the City in administering enforcement actions. 3) Establish a program to recover 20% of edible food. SB 1383 requires jurisdictions to establish an edible food recovery program to recover 20% edible food instead of disposing in landfill. Food service establishments that meet the criteria will be required to work with a food recovery organization. Athens’ Compliance Proposal: • Provide $50,000 in annual support to assist in developing a food recovery program. • Identify Tier 1 & 2 food generators and food recovery partners. • Provide education and outreach needed for food generators. 4) Conduct education and outreach to all affected parties. SB 1383 requires jurisdictions to conduct education and outreach to all residents, businesses (including those generating edible food that can be donated), facilities, and agencies on collection service requirements, contamination prevention, self-haul requirements, edible food recovery program, and overall compliance with SB 1383. Proposed SB 1383 Compliance & Athens Franchise Agreement Changes August 16, 2021 Page 4 Athens’ Compliance Proposal: • Enhance existing outreach and education program that will include in-person, print and electronic media. • Track, record, manage, and store the data gathered from these outreach efforts to assist the City in reporting back to CalRecycle. • Assess and verify businesses that may qualify for a waiver. The City has final determination whether a business qualifies for a waiver according to SB 1383 guidelines. 5) Procure recycled-content paper products and recovered organic products. Each jurisdiction will have an annual target to procure a quantity of recovered organic waste products, such as renewable gas, energy from biomass conversion, compost, and mulch. The law also requires jurisdictions to procure recycled-content paper products meeting Federal Trade Commission guidelines. Jurisdictions will be required to maintain records in order to show they have met their annual procurement target and report their procurement activities to CalRecycle annually. Athens’ Compliance Proposal: • Utilize Renewable Natural Gas (RNG) in collection vehicles to count towards the City’s procurement target. • Provide two compost giveaways per year. 6) Evaluate infrastructure and plan for adequate capacity for organic waste processing and edible food recovery. The regulations require each jurisdiction to evaluate current infrastructure for organic waste recycling and facility for edible food recovery and plan new infrastructure that will adequately process future organic waste collection and edible food recovered. Each county will lead this effort by coordinating with the cities in the county to assess existing, new or expanded capacity. Athens’ Compliance Proposal: • Athens Services has invested millions of dollars in technology, building new facilities, and improving their current facilities to meet the requirements of SB 1383. These facilities are available to the City to adequately process future organic waste collected from Azusa customers. 7) Keep records and report compliance and enforcement to CalRecycle. Jurisdictions are required to maintain records and report annually to CalRecycle on organic collection service compliance, waivers, education & outreach, edible food recovery program outcome, procured organic waste products and recycled paper products, and all inspection and enforcement activities. Athens’ Compliance Proposal: • Utilize Soft-Pak database to monitor and report activities with customized tracking codes specific to the City. • Monitor and record the following to assist the City in their enforcement program: -container contamination reporting, complaint reporting, generator waivers, outreach reporting, food recovery program support, etc. Proposed SB 1383 Compliance & Athens Franchise Agreement Changes August 16, 2021 Page 5 ADDITIONAL CONTRACT ENHANCEMENTS: While SB 1383 is the center of the proposed changes to the refuse and recycling agreement, Athens Services has proposed the following enhancements to the contract: 1) Electronic Waste Collection – Athens Services has offered to provide a permanent roll off to the City, to be located in a central location accessible to residents, for ongoing e-waste collection plus additional two (2) electronic waste drop-off events for residents only per year. 2) Abandoned Bulky Pickup – Athens Services has offered to provide collection service for abandoned items in public right of way within 24 hours. Currently this is done by City staff. 3) Customer Service and Billing - due to the complexities of SB 1383, Athens has offered to transition the customer service and residential billing functions currently performed by City Staff to Athens Services. Athens Services currently bills commercial customers. This will also streamline training and outreach efforts of customer service staff addressing issues from residents and businesses. 4) Porter Services – regular cleaning of downtown and bus areas, six days a week (Monday – Saturday), not to exceed 60 hours/week. Any additional work beyond this scope will be performed at $60/hour. 5) Downtown Pressure Washing Service – pressure wash the sidewalks within the downtown specified areas on a weekly basis. 6) Downtown Trash Cans – empty the trash cans located in the downtown specified areas 3X/week (Monday, Thursday, Saturday). This is currently done by a 3rd party contractor. 7) Heritage Court – provide weekly sweeping of the Heritage Court parking area. 8) Bus Stop Maintenance – include monthly pressure washing for up to 60 bus stops across the City and emptying trash receptacles 3X/week at each stop. This includes cleaning for bus stops located in the downtown area, and additional cleaning as needed for high impact areas for an hourly rate ($60/hour). 9) Graffiti Removal and Additional Power Washing Support – provide additional graffiti removal services and power washing, as directed by City Staff on as needed basis, for an hourly rate of $60 per hour, plus materials. 10) Street Sweeping – Athens Services provides street sweeping in the City in a separate contract. Athens Services is proposing to absorb the current contract into the waste collection agreement (272 curb miles) at no charge to the City. The current budget to pay for the service can be reallocated by the City for an alternative public benefit. Any additional sweeping can be included at a meet and confer process between the City and Athens, or to be performed at an additional rate of $29.50/mile. 11) Performance Bond – increase the current performance bond from $50,000 to $1 million. 12) AB 939 Diversion – transition to AB 939 requirement and eliminate the current requirement to transport 13,000 tons to the Material Recovery Facility (MRF) to maintain compliance with AB 939. 13) Flow Control – to ensure that Athens can manage the waste stream as necessary to ensure all diversions are met. The City will retain the right to direct Athens to haul organic waste collected in the City should the City develop an organics processing facility in the future. 14) Annual Rate Adjustment – eliminate the “true-up” process and adopt a Consumer Price Index trash rate adjustment annually, which measures the average change of costs common to the waste industry. The rate adjustment being proposed is CPI + 1% with floor of 3%. 15) Enforcement of Exclusivity – Azusa and Athens will agree on language that reinforces the exclusivity of the franchise agreement. 16) Contract Term – additional 12 years to the current 8 year rolling term. 17) Annual Supplemental Franchise Fee – Athens to provide the City $500,000 annually, in addition to the current 10% franchise fee, beginning in Year 2 of the new proposed contract. This payment will escalate annually by CPI. Proposed SB 1383 Compliance & Athens Franchise Agreement Changes August 16, 2021 Page 6 18) Annual Report – Athens will provide an annual report illustrating the work performed the previous year. This will include the number of customer requests, number of bulky waste requests, tonnage collected, total diversion, as well as reporting on the various porter services. 19) Ten Year Meet and Confer – this can be requested by either party to review the terms of the contract. FISCAL IMPACT: Table 2 shows the fiscal impact to the City with the elimination of street sweeping costs, annual contract fee payment, and increase in franchise fee over a 25-year period: Table 2. Fiscal Impact to the City SB 1383 affects all residential, commercial customers, and jurisdictions all over California. This law is unprecedented and unfunded and all jurisdictions have to implement the organics recycling program effective January 1, 2022. Failure by jurisdictions to comply with the law can result in penalties of up to $10,000 per day. The following table shows future trash rates. Table 3. Future Trash Rates Prepared by: Reviewed and Approved: Liza Sagun Manny Robledo Environmental Programs Specialist Director of Utilities Reviewed by: Reviewed and Approved: Paul Reid Sergio Gonzalez Environmental Programs Manager City Manager Proposed SB 1383 Compliance & Athens Franchise Agreement Changes August 16, 2021 Page 7 Attachments: 1) Proposed Franchise Agreement Changes 2) Athens SB 1383 Proposal August 10, 2021 Sergio Gonzalez, City Manager City of Azusa 213 E Foothill Blvd. Azusa, CA 91702 Re: SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Mr. Gonzalez, As a longtime partner with the City of Azusa, we appreciate the opportunity to submit this proposal in response to SB 1383. This law and supporting regulations take effect on January 1, 2022 and focus on organic waste reduction and edible food recovery targets statewide. The enforcement provisions, including penalties for noncompliance issued by the state also take effect. At a local level, cities, counties, and special districts are responsible for the enforcement and compliance with this state mandate. This law is unprecedented and unfunded. The impact will be significant across the state, affecting all residential and commercial customers and jurisdictions. Compliance with SB 1383 will require a multifaceted strategy. This regulation will require changes to customer behavior, waste collection, education, reporting, enforcement mechanisms, and penalties for non-compliance. To execute, it will require a strong collaborative effort between the City and Athens Services. Athens Services has been serving Azusa for many years. We take great pride in the highly customized, quality service we have been providing to your community. We also recognize the changes and growth of the City, and are proposing some additional contract enhancements to not only provide additional value to your residents and businesses, but to also support City staff in keeping the City clean. We believe this proposal is a great path forward for the City to enhance its waste and recycling program, stabilize the rates for customers over time and continue to be a leader in sustainability. We look forward to discussing this proposal with you in detail and are happy to answer any questions you may have. Thank you. Elizabeth Ramirez Vice President, Government Affairs Attachment 1 SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Page 2 Athens Services is providing this proposal to the City to help the City address the unfunded mandates of SB 1383. This new law, which comes into effect January 1, 2022, has various requirements the City is responsible for. Fortunately, Athens has developed a plan to help the City comply. This is outlined in further detail in the attached SB 1383 proposal, but some of the areas Athens can provide support to the City include: 1. Organics Recycling for all Customers 2. Food Recovery Outreach, and Enhanced Recycling Education and Outreach 3. Contamination Monitoring for all Customers 4. Waste Characterizations 5. Data Management and Reporting 6. Procurement of Organic Material The below proposal outlines how Athens can support the City in complying with this state law. In addition, Athens has also included some additional services for the City to consider, such power washing and litter pickup services. These proposed added services are in response to the growth in the City and to help keep high pedestrian traffic areas clean. WASTE HAULING & RECYCLING In order to meet the requirements of SB 1383, Athens Services is proposing the following changes to the City’s waste collection and recycling program. This provides compliance with SB 1383, limits contact with refuse, improves safety and workforce management, and sets the City up on a path to meet future state diversion goals. For additional details on Athens’ overall approach to comply with SB 1383, please refer to the attached Athens Services SB 1383 Proposal. SINGLE FAMILY RESIDENTIAL COLLECTION SERVICE Athens is proposing to transition to a 3 barrel automated collection program. The standard level of service includes (1) 96 gallon trash, (1) 96 gallon recycle and (1) 96 gallon organics barrel and unlimited bulky collection service. This change will no longer require residents to purchase the ir own refuse containers, as Athens will provide containers as part of the service. Athens can also provide sanitization of the barrels, upon customer request. Along with this change, customers will be required, under SB 1383, to place food waste in the green cart. This change to the program is required by SB 1383. Athens recognizes that the existing bulky item collection service works well for residents, and is proposing to keep the unlimited bulky item program in place, for items to be collected on their service day. One slight change to the program is customers will need to call Athens directly to schedule a pickup so the bulky truck can be sent to collect those items on their service day. The proposed rate change for this new service, for single family customers is $3.50. MULTIFAMILY RESIDENTIAL COLLECTION SERVICE SB 1383 also requires multifamily customers to subscribe to organics service. Under this proposal, multifamily customers with 1-4 units will have the option of subscribing to barrel service. Multifamily customers with 5 units or more will be required to subscribe to bin service for mixed waste collection and barrel service for organ ics. The organics service for multifamily is outlined below. Rates will be dependent on the number of containers and frequency of service, as outlined in the current rate sheet. This new program will also include the same unlimited bulky collection program as outlined above. SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Page 3 COMMERCIAL AND MULTIFAMILY ORGANICS PROGRAM In 2018, the City Council adopted a “Pay as You Throw” rate structure for commercial and multifamily organics customers. AB 1826 required customers who generated 2 cubic yards or more of solid waste to subscribe to an organics program. While AB 1826 introduced organics to customers, it did not require customers to subscribe. SB 1383 mandates all customers subscribe to organics service. As previously mentioned, SB 1383 impacts all cities across the state. While the law holds cities responsible for compliance, cities can elect to have their waste hauling company help comply. Athens has developed a program that will help the City comply, while minimizing impact to rate payers. The cost for compliance includes the cost of collection vehicles, barrels, disposal at the organics facility, transportation, annual public education, annual site visits, customer waste assessments; facility waste characterizations, ongoing customer training, contamination monitoring, management of waivers, reporting & data management, and office administration. To cover the costs needed to provide a compliant commercial and multifamily organics program, Athens is proposing and extraordinary increase of 55%, phased in over two (2) years, to commercial/multifamily refuse rates to comply with SB 1383. This increase is comparable to surrounding cities, and in some cases, less than surrounding cities. This proposed rate increase will be phased in over 2 years, with 27.5% in year 1 and 27.5% in year 2. In addition, Athens is proposing a hybrid program for organics, in which the true rate of organics service is phased in over 4 years to the customers, to minimize impact. - Customers who currently have organics will be transitioned into this billing structure, on the effective day of the amendment. This means their bill will be adjusted so they pay 25% of the organics barrel rate through June 30, 2022. The current rate (under the “Pay As You Throw” program) for a 64 gallon barrel is $125.36. Under the proposed hybrid program, the barrel rate in Year 1 would decrease to $105.74, and will reflect 75% credit on their invoice, so in effect paying $26.44 year 1. - In Year 4, customers will no longer receive a credit, and will be paying the full amount listed in the annual rate sheet for organics service. Year Credit Year 1 7/2021 – 6/2022 75% (customer will be paying 25% of the organics rate) Year 2 7/2022 – 6/2023 50% (customer will be paying 50% of the organics rate) Year 3 7/2023 – 6/2024 25% (customer will be paying 75% of the organics rate) Year 4 7/2024 – 7/2025 0% (customer will be paying 100% of the organics rate) REFUSE BILLING Athens is proposing to assume all refuse billing from the City, effective J anuary 1, 2022. The complexities associated with billing under SB 1383 is something that Athens Services is equipped to handle. The City currently charges a flat rate, by customer type, for refuse services. ABANDONED BULKY PICKUP Athens is proposing a value ad, to help keep the City clean, by providing collection service for abandoned bulky items in public right of way, upon request from the City. Currently City staff collects abandoned items. The city will direct Athens to collect such items, which will be collected within 24 hours. SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Page 4 E-WASTE Athens recognizes the need to electronic waste disposal in the community and will provide a permanent roll off box to the City, to be located in a central location which will be accessible to residents, for ongoing ewaste collection. In addition, Athens will provide 2 electronic waste drop off events for residents annually. FOOD RECOVERY SUPPORT As previously mentioned, SB 1383 requires the City of Azusa to develop a food recovery program. Athens is committed to providing the City with $50,000 in annual support to assist in developing this program. This funding can be used to support local food recovery organizations as they develop their food recovery efforts as required by SB 1383. This will be distributed directly from Athens, in consultation with City staff. PROCUREMENT SUPPORT As California collects and recycles organic materials, local governments will be required to use the products made from this recycled organic material, such as renewable energy, compost, and mulch. Athens has committed to helping the City meet these requirement by providing renewable natural gas (RNG) and compost. Athens will provide an additional compost giveaway event annually, for a total of 2 giveaways per year. In addition, Athens will utilize RNG in our collection vehicles. This will further support the City’s procurement requirements under SB 1383. ADDITIONAL CONTRACT ENHANCEMENTS In reviewing the proposed changes to the City’s collection program, Athens also evalu ated other ways in which we can provide additional value and services to the City. While SB 1383 is the catalyst for these proposed changes, Athens can provide support to the City through other services to help with various City initiatives. PORTER SERVICES Through various discussions with City staff, and with residents, Athens recognizes the changes and quick economic growth of the downtown area. As one of the only cities in this current extension of the Gold Line, and one of the few with an actual train station in downtown proper, combined with the current and future development projects, the City of Azusa will continue to grow exponentially. It is also important that the City remains clean and safe. This is why Athens is proposing to provide the fo llowing services, at no additional charge to the City, as part of this proposal. This added benefit will support the City’s team in helping to keep the downtown and bus stop areas clean. Athens will provide a full time person dedicated to providing these services in Azusa. Porter services will be performed 6 days a week, (Monday – Saturday), not to exceed 60 hours/week. Any additional work beyond this scope will be performed at $60/hour. DOWNTOWN PRESSURE WASHING SERVICES Athens is proposing to pressure wash the sidewalks located within the downtown area on a weekly basis. The bus stops included in these boundaries will be serviced twice a month. The downtown area is defined as : - Azusa Avenue, between 5th street and 9th Street - San Gabriel Avenue (eastside), from 6th Street to 9th Street - San Gabriel Avenue (westside), from Foothill Blvd to 6th Street DOWNTOWN TRASH CANS Athens is proposing to empty the trash cans located in the downtown area 3x’s week (Monday, Thursday, Saturday). This is currently done by a 3rd party contractor. SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Page 5 HERITAGE COURT Athens is proposing to provide weekly sweeping of the Heritage Court parking area. This parking lot is maintained by the City and additional support from Athens in keeping it clean can improve the area. BUS STOP MAINTENANCE Athens is proposing to include monthly pressure washing for up to 60 bus stops across the City and emptying trash receptacles three times per week at each stop. This includes twice per month cleaning for bus stops located in the downtown area, and additional cleaning as needed for high impact areas for an hourly rate ($60/hour). GRAFFITI REMOVAL AND ADDITIONAL POWER WASHING SUPPORT Based on the feedback received from the City Council, Athens is proposing an hourly rate ($60 /hour), plus material costs, to support the City’s graffiti removal team and provide additional power washing as directed by the City. This will be provided on call, as needed, Monday – Friday in public right of way areas identified by staff. Work will be completed within 24 hours’ notice from the City. STREET SWEEPING STREET SWEEPING SERVICES Athens Services currently provides street sweeping services in the City of Azusa under a separate contract. As we evaluated the overall approach to contract enhancements, we determined that we can absorb the current street sweeping contract into the hauling agreement (275 curb miles), at no charge to the City. This means the current sweeping monies used to pay for the service can be re-allocated by the City for an alternative public benefit. Any additional sweeping can be included through a meet and confer process between Athens and the City, or be performed at an additional rate of $29.50 curb/mile. Sweeping services will be performed within the City’s posted 4 and 4.5 hour period. Sweeping debris collected will be dumped at the City yard and recycled. Water usage for sweeping Azusa streets will be provided to Athens at no additional charge. Sweeping will include City’s holiday schedule. New Years Day Labor Day Martin Luther King Day Columbus Day President’s Day Veterans Day Memorial Day Thanksgiving Day Independence Day Christmas Day OTHER PROPOSED CONTRACTUAL CHANGES To ensure the above proposed changes are delivered as outlined, several additional administrative contract changes are necessary to protect both the City of Azusa, ratepayers, and Athens Services. PERFORMANCE BOND Athens proposes to increase the performance bond from the current $50,000 value to $1million. AB 939 DIVERSION Athens proposes transitioning to AB 939 diversion and eliminating the current requirement to transport 13,000 tons to the Material Recovery Facility (MRF). This will maintain a compliant program with CalRecycle and allow Athens to manage the flow of waste collected as needed. SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Page 6 FLOW CONTROL Athens is requesting the City to grant flow control to Athens Services. This further ensures that Athens can manage the waste stream as necessary to ensure all diversion requirements are met. However, should the City at any point in the future, develop an organics processing facility, the City will retain the right to direct Athens to haul organic waste collected in the City to such facility. ANNUAL RATE ADJUSTMENT PROCESS Athens is proposing to eliminate the disposal “true up” process, and adopt a Consumer Price Index-Trash adjustment process annually, which measures the average change of costs common to the waste industry. The annual rate adjustment formula being proposed is a CPI +1% with floor of 3%. BILLING TRANSITION TO ATHENS SERVICES Athens Services is proposing to transition all refuse billing from the City of Azusa Light & Water. This will help ensure adequate billing under SB 1383. ENFORCEMENT OF EXCLUSIVITY OF CONTRACT Athens Services and the City of Azusa will agree on language that reinforces the exclusivity of the franchise agreement. CONTRACT TERM Athens is proposing an additional 12 years to the current 8 year rolling term. ANNUAL SUPPLEMENTAL FRANCHISE FEE Athens to provide an annual supplemental franchise fee to the City of Azusa in the amount of $500,000 annually, beginning in Year 2 of the new proposed contract. This payment will escalate annually by CPI. ANNUAL REPORT Athens Services will provide the City with an annual report illustrating the work performed the previous year. This will include information such as the number of customer requests, number of bulky requests, tonnage collected, total diversion, as well as reporting on the various porter services provided. 10 YEAR MEET AND CONFER Athens is proposing a 10 year meet and confer which can be requested by either party to review the terms of the contract. SB 1383 and Proposed Changes to Azusa’s Franchise Agreement Page 7 The below table shows the overall financial benefit to the City should Athens be directed to provide the services proposed. The table also reflects the rates that residents and businesses will be paying over the first 5 years of the contract. In addition, the net rates are also shown in the section below. Note the net rates reflect the cost of service, and the gross rates (what the customer pays) includes the franchise fee and AB 939 fee that is paid to the City. Proposed Proposed Proposed Proposed Proposed Sum Phase-In of Benefits to Azusa Year 1 Year 2 Year 3 Year 4 Year 5 25 Year Term Annual Supplemental Franchise Fee -$ 500,000$ 517,500$ 535,613$ 554,359$ 18,333,264$ Elimination of Street Sweeping Costs 301,403$ 308,938$ 316,662$ 324,578$ 332,693$ 10,295,253$ Increase in Franchise Fees 192,427$ 327,534$ 376,568$ 428,546$ 468,199$ 17,940,896$ Total Annual Benefit 493,830$ 1,136,472$ 1,210,730$ 1,288,737$ 1,355,251$ 46,569,412$ Actual Proposed Proposed Proposed Proposed Proposed Five-Year Rate Outlook - Gross Rates:'21 - '22 Year 1 Year 2 Year 3 Year 4 Year 5 Residential Rates 33.14$ 37.03$ 38.27$ 39.54$ 40.88$ 42.24$ Residential Rate Change 11.7%3.4%3.3%3.4%3.3% Multi-Family Rates 24.81$ 36.90$ 38.14$ 39.41$ 40.75$ 42.11$ Multi-Family Rate Change 48.7%3.4%3.3%3.4%3.3% Commercial 1-3-1 Rates 135.47$ 171.62$ 217.72$ 225.20$ 232.95$ 240.96$ Commercial 1-3-1 Rate Change 26.7%26.9%3.4%3.4%3.4% Organics 64 Gallon Rates 125.36$ 105.74$ 109.43$ 113.24$ 117.20$ 121.28$ Organics 64 Gallon Rate Change -15.7%3.5%3.5%3.5%3.5% Actual Proposed Proposed Proposed Proposed Proposed Five-Year Rate Outlook - Net Rates:'21 - '22 Year 1 Year 2 Year 3 Year 4 Year 5 Residential Rates 28.29$ 31.79$ 32.90$ 34.05$ 35.25$ 36.48$ Residential Rate Change 12.4%3.5%3.5%3.5%3.5% Multi-Family Rates 20.91$ 31.79$ 32.90$ 34.05$ 35.25$ 36.48$ Multi-Family Rate Change 52.0%3.5%3.5%3.5%3.5% Commercial 1-3-1 Rates 118.33$ 150.87$ 192.36$ 199.09$ 206.06$ 213.27$ Commercial 1-3-1 Rate Change 27.5%27.5%3.5%3.5%3.5% Organics 64 Gallon Rates 112.41$ 94.80$ 98.12$ 101.55$ 105.11$ 108.79$ Organics 64 Gallon Rate Change -15.7%3.5%3.5%3.5%3.5% Athens Services City of Azusa Contract Enhancement Proposals PREPARED BY: Gary Clifford Executive Vice President, Athens Services (626) 934-4619 gclifford@athensservices.com SB 1383 PROPOSAL SB 1383 PROPOSAL Attachment 2 2 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy What is SB 1383? SB 1383 was adopted by the California Legislature in 2016 and establishes statewide targets to reduce emissions of short-lived climate pollutants (SLCP) such as methane gas. California’s Department of Resources Recycling and Recovery (CalRecycle), a California Environmental Protection Agency department, is the lead agency responsible for implementation. Organic waste such as excess food, yard trimmings, paper, and cardboard make up half of what Californians dump in landfills. When these materials break down, they emit powerful greenhouse gases and pollutants, including methane. SB 1383 is intended to reduce these short- lived climate pollutants. How Will SB 1383 Impact My City? This unfunded mandate will impact everyone in the State of California. The law mandates new recycling programs, additional outreach and education, ongoing contamination monitoring, enhanced reporting and data management, and may require a change to your waste collection program. Jurisdiction responsibilities also include: • Evaluating your City’s readiness and capacity to implement SB 1383, including organics collection, recycling and edible food recovery capacity. • Providing organic waste collection to all residents and businesses, which means providing service automatically and not relying on the generator to subscribe. • Monitor waste stream contamination levels and issue violations to residents and businesses who continue to contaminate. • Establish edible food recovery program that recovers edible food from the waste stream. • Conducting outreach and education to all impacted parties, including generators and edible food recovery organizations. • Procuring recycled organic waste products like compost, mulch, renewable natural gas (RNG), and electricity. • Inspecting and enforce compliance with SB 1383, including assessing penalties to non-compliant generators. • Maintaining accurate and timely records of SB 1383 compliance. How Will SB 1383 Impact Ratepayers? Organic waste includes green waste, food waste, and food soiled paper. Organic material collected will need to be transported to a processing facility for composting. Residential ratepayers will be required to subscribe to organics recycling service. All businesses will need to subscribe to organics service. Large food waste generators will be required to recover edible food from their waste stream for donation to participating food recovery organizations How will SB 1383 Be Enforced? Jurisdictions are required to monitor contamination and impose penalties from $50 up to $500 for those waste generators that are not properly recycling organic waste. CalRecycle can issue penalties to jurisdictions, up to $10,000 per day, for failure to comply. Why is a Food Recovery Program Required under SB 1383? Californians send 11.2 billion pounds of food to landfills each year, some of which was still fresh enough to have been recovered to feed people in need. While billions of meals go to waste, millions of Californians don’t have enough to eat. To reduce edible food waste and address food insecurity, surplus food still safe for consumption will instead go to food banks, soup kitchens, and other food recovery organizations to help feed Californians in need. CALIFORNIA’S SHORT-LIVED CLIMATE POLLUTANT REDUCTION STRATEGY What You Need To Know 3 SB 1383 IMPLEMENTATION TIMELINE September 2016 Governor Edmund (Jerry) Brown Jr. set methane emissions reduction targets for California (SB 1383 Lara, Chapter 395, Statutes of 2016) in a statewide effort to reduce emissions of short- lived climate pollutants January 1, 2020 Reduce the statewide disposal of organic waste by 50% from the 2014 level (target: 11.5 million tons) January 1, 2022 Regulations take effect and are enforceable. Food Recovery for Tier 1 Businesses. January 1, 2025 Reduce the statewide disposal of organic waste by 75% from the 2014 level (target: 5.7 million tons) January 1, 2024 May require local jurisdictions to impose penalties for noncompliance on generators. Food Recovery for Tier 2 businesses. January 2, 2025 Recover 20% of currently disposed edible food for human consumption. Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy4 ABOUT ATHENS SERVICES // The Athens Way Culture After more than 60 years, Athens Services remains a family-owned and operated company built on an unwavering commitment to service, its employees, and to the environment. At the core of its success is The Athens Way, a business philosophy that underscores a company culture which: • Emphasizes superior customer service • Hire and develop great people while promoting workplace safety • Fosters environmental stewardship through the use of clean technology to increase recycling and landfill diversion Founded by Jack Arakelian in 1957 as a trash hauling company with just two trucks, today Athens Services is the largest privately held environmental services company in Southern California. With more than a quarter of a million customers in 50 cities and county areas, a fleet of nearly 1,000 vehicles, and a portfolio of facilities that includes three state-of-the art materials recovery facilities and a composting facility, Athens Services’ future is as bright as its storied past. SERVICE | PEOPLE | ENVIRONMENT TABLE OF CONTENTS // 1 WASTE STREAM ANALYSIS 2 OUTREACH & EDUCATION 3 CONTAMINATION MONITORING: ROUTE AUDITS 4 DATA MANAGEMENT & REPORTING SUPPORT 5 PROCUREMENT SUPPORT 6 FOOD RECOVERY SUPPORT 5 7 ATHENS’ FACILITIES 6 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 1. WASTE STREAM ANALYSIS // Compliance SB 1383, California’s Short-Lived Climate Pollutant Reduction Strategy, will drive numerous changes across the state. The shift from a residential green waste collection program to an organics collection program, where food waste and food soiled paper are commingled in the green waste container, and transported to a composting facility, will be one of the larger, more noticeable changes for your constituents. Over the past several months, Athens has been analyzing your current waste stream and conducting waste characterizations of all of the residential refuse/mixed waste loads in your City. These characterizations have provided us with the understanding of how much organic material is currently in those streams, so we can establish a baseline and goals for ensuring that material gets placed in the organics container. These characterizations are instrumental in determining how much outreach and education will need to be conducted to help drive customer behavior to minimize contamination. Each of the residential routes in your City were evaluated, and the results from those waste characterizations are available upon request. For a more detailed explanation on the methodology used for our waste characterizations, please refer to Appendix A. Also included in Appendix A for your reference, is a detailed description of the acceptable materials that will be allowed in the organics, recycle and refuse containers. Learn more about how Athens does waste characterizations for the City of Los Angeles recycLA program. 7 In order to comply with SB 1383, Athens will need to enhance the existing outreach and education program in your City. This is a crucial step to help drive the change in customer behavior. Similar to the outreach that is provided under AB 1826, which targets specific customers based on the amount of waste generated, outreach under SB 1383 will be applicable to all customers. Athens will be providing additional team members in your City to help with these efforts. The Athens outreach program will include in-person, print and electronic outreach in your City. Athens will also track, record, manage and store the data gathered from these outreach efforts, to assist the City in reporting back to CalRecycle. The Athens outreach team will also provide support to the City through assessing and verifying the circumstances of businesses that may qualify for a waiver. Jurisdictions are required to establish a waiver program and has final authority on approving waivers for service. Athens will verify, through our outreach team, whether a customer qualifies for a De Minimis, Physical Space, or Collection Frequency Waiver. Athens is unable to issue the final determination, as SB 1383 places that responsibility on the jurisdiction, but we can provide the work needed to help the City with that process. For a more comprehensive description on our overall outreach approach, please see Appendix B. 2. OUTREACH & EDUCATION // Effective, results-driven approach to education ATHENS OUTREACH TEAM: Lucas Arias, Recycling Coordinator Athens Team Member Since 2019 Athens Outreach Team 2018 Tabling Event Angie Park, Organics Recycling Coordinator Athens Team Member Since 2017 OUTREACH EFFORTS: In-person Digital/eletronic Print • Presentations & Training • Waste Assessments • Community Events & Meetings • Interactive Recycling Website (Recyclist) • Instructional Videos • Social Media • Signage • Container Labeling • Newsletter Articles 8 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 3. CONTAMINATION MONITORING: ROUTE AUDITS // Route auditors SB 1383 mandates regular monitoring of the collection routes, to observe and track contamination in the waste stream. The law provides two options for monitoring: (1) periodic waste characterizations at the processing facility; (2) periodic reviews and audits of the collection routes. Athens has determined the most cost effective approach for compliance with this part of the mandate is by conducting ongoing route reviews. Athens will provide quarterly route reviews for commercial and residential sectors, to monitor contamination. We will conduct these audits by performing a hands-on visual check, and will document our findings and capture photos of the containers being audited. This information will be housed in our database, and will be available for the City to review as needed. See more about Athens’ route audit process and contamination monitoring in Appendix C. ROUTE AUDIT PROCESS: Document findings and capture photos Report information in databaseIn-person visual check 9 4. DATA MANAGEMENT & REPORTING SUPPORT // Dedicated reporting team to oversee data management of recycling efforts SB 1383 requires jurisdictions to monitor contamination, issue notices of violations and report this information to CalRecycle. Athens can provide support with this through our enhanced reporting process. Athens has developed the infrastructure needed to capture the data required under SB 1383. This includes all the information gathered through our outreach efforts, which includes data such as backhaul/selfhaul programs, waiver information, and container and waste stream photographs. In addition, the data gathered for contamination monitoring through our proposed route reviews will also be tracked by Athens. This will eliminate the need for your City to have to manage and store this data. This data will be available, as needed, to the City for reporting and compliance purposes. As part of the outreach, monitoring and reporting the Athens team will be providing, we will have adequate data to support the City with enforcement actions administered. For more information on how Athens can support with data management and reporting, please refer to Appendix D. Audit report from a similar City. 10 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 5. PROCUREMENT SUPPORT // Procurement SB 1383 requires jurisdictions to procure recycled organic products on an annual basis. CalRecycle has developed a calculator to help jurisdictions determine how much material would need to be procured. Athens will help your City comply with this requirement through the use of renewable natural gas (RNG) utilized in our collection vehicles and through the compost produced at American Organics. Over the years, Athens has invested in significant RNG and composting infrastructure in preparation for upcoming regulations. This has prepared us to help your City meet procurement needs through RNG and compost. Please refer to Appendix E for additional details on how Athens can support your City’s Procurement requirements. 11 6. FOOD RECOVERY SUPPORT // Educating Food Generators on SB 1383 In addition to the reduction of organics disposal, SB 1383 establishes an additional target that no less than 20% of currently disposed edible food is recovered for human consumption by 2025. Food service establishments will be required to work with a food recovery organization. Starting in 2022, Tier 1 edible food generators must arrange to recover the maximum amount of their edible food that would otherwise go to landfills and they must maintain food donation records. As a waste hauler, Athens scope of work is typically focused on the “back of house” operations, where the waste gets placed into the containers we haul. Food recovery activities take place prior to the material coming to the “back of house”, or to the enclosure. However, Athens is able to provide support with the City’s food recovery program by providing the outreach needed for food generators subject to this requirement. Athens will work with food generators, as part of the site visits and outreach we provide, to inform and advise customers how they can develop a food recovery program. Athens will also work with the City to help identify Tier 1 and Tier 2 customers as well as identify potential food recovery partners. A full description of how Athens can provide food recovery support to your City is included in Appendix F. Learn more about Athens’ food recovery and donation program. 12 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 7. ATHENS’ FACILITIES // Utilizing Innovative Technology Athens has built the most advanced sustainable green waste and organics composting facility in the region. American Organics processes more organic waste in a shorter period while producing the highest quality, certified-organic, contaminant-free compost. We do this better than any other facility in Southern California. Additionally, this facility reduces thousands of metric tons of greenhouse gases (GHGs) annually by diverting organic waste from landfills. The compost produced at American Organics benefits Southern California by diverting organic waste and reducing GHGs. Athens has invested hundreds of millions of dollars in building and improving materials recovery facilities (MRFs) to help municipalities meet diversion goals and prepare for future recycling regulations. Our Sun Valley MRF is renowned for its innovative technology, impeccable safety record, and green building certification. A short distance away, Athens is expanding and enclosing Crown Recycling, one of the most comprehensive MRFs in the area. Upon completion, the $50 million renovation will increase facility capacity to 6,700 tons per day (TPD) of organic material, construction and demolition, and mixed solid waste. Our Valley MRF, located in the City of Industry, sorts up to 3,000 TPD. This facility was the first Athens MRF constructed, and has continued to be on the cutting edge of innovation, helping Athens adapt to new mandates like SB 1383. In collaboration with Komar Industries, Athens recently developed the Organic Separation Press (OSP). The OSP is the first system of its kind to recover organic liquid from waste for reuse. Using a large auger screw, the OSP presses waste to separate nutrient-right organic liquid. The liquid is harvested and transported to a wastewater treatment facility to be converted into renewable natural gas. All of the Athens facilities are prepared to meet the requirements of SB 1383. This includes, but is not limited to, RDRS reporting, data management, contamination monitoring, load checks and safety practices as outlined in the final regulations published November 2020. 13 APPENDIX A Waste Stream Analysis To analyze and better understand the composition of your City’s refuse/mixed waste stream, Athens conducted waste characterizations of your residential routes. Under current law, it is acceptable to place food waste in the trash. Under SB 1383, food waste needs to be removed from the trash bin and placed in the organics container. These recent waste characterizations helped Athens identify how much organics (food waste and green waste) is currently in your trash stream. Approximately 200-400 pounds of material were sampled from each load. From that sampling, the Athens team worked to identify the various organics commodities within that load. Each commodity type was identified, labeled and photographed. The team was able to quantify, how much of each of the organic commodities were in the load sample. This process takes roughly 3-4 hours per load sample. This ensures that we are accurately able to identify and categorize materials. Below is an image that illustrate this process. The characterizations are designed to identify the volume of organics placed in this stream. The results are used to identify a benchmark and establish goals for implementing a residential organics recycling program in your City. Based on the established goals, we can determine resources needed to be put forth for education and outreach to transition organics into the green waste container program. 14 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX A Waste Stream Acceptable Materials Athens will provide compliance for your City by collecting residential green waste, food waste and food soiled paper in the organics (green) container. Acceptable materials for the recycle (blue) and trash (black) barrel will be communicated to our customers through our outreach program. Below is a listing of acceptable materials for each of these waste streams. Green Container Acceptable Items Green Waste • Grass clippings • Flower & hedge trimmings • Leaves & branches • Lumber, scrap wood, & plywood types (not painted or treated) • Weeds Food Scraps (Any putrescible matter produced from human or animal food production, preparation, & consumption activities. No produce stickers.) • Bread, rice, & pasta • Cheese & dairy • Coffee filters • Flowers & herbs • Fruits & vegetables • Meat, bones, poultry, seafood, & soft shells (e.g. lobster, crab, & shrimp) Food-Soiled Paper (All items must be 100% plant-fiber based with NO petroleum, wax, or bio-plastic coating, liner, or laminate. Must be soiled ONLY with food and/or drink liquids. *No bathroom tissue, toilet paper, or feminine products.) • 100% fiber based, compostable to-go containers & serving-ware • Egg cartons (paper) • Food-stained paper • Paper napkins & kitchen towels* • Paper food boats • Paper packaging • Paper plates & cups • Pizza boxes Non-Acceptable Organics (Please place in the trash.) • Rags, clothing, or other cloth/textiles (“plant-fiber” means paper, not textiles.) • Bio-solids or bathroom waste, including tissues or bathroom paper towels. • Disposable diapers • Pet waste • Tea bags and tea bag wrappers • Lint • Hard shells (e.g. clams, mussels, & oysters) • Cacti, succulents, and palm fronds *Athens does not accept paper towels and/or napkins used to clean surfaces due to the use of nonfood related chemicals and potential toxins. 15 Black Container Acceptable Items Acceptable materials in the black container include:• Disposable diapers• Empty aerosol cans• Pet Waste• Unusable clothing & fabric• Tea bags and tea bag wrappers• Lint• Hard shells• All foam• Garden hoses & plastic tarps• Bubble wrap• Latex and plastic gloves• Empty motor oil• All receipts• Bathroom & facial tissues• Gift wrap with plastic or metal• Hardback books• Laminated or plastic coated paper• Padded or Tyvek-type envelopes• Photographs• Candy & protein bar wrappers• Chip bags• Disposable coffee cups & lids• Juice and food pouches • Bags with a mix of metal & plastic Blue Container Acceptable Items Acceptable materials in the blue container include:• Paper products not included in the organics stream• Printing and writing paper• Commingled recyclables such as aluminum/tin foil and trays (clean)• Aseptic containers, juice boxes and milk cartons• Cans (aluminum, bi-metal, and tin)• Cardboard• Envelopes• Glass bottles and jars• Junk mail; magazines• All metal• Newspaper • Office paper• Paperback books• Paper grocery bags• Clean plastic bags, film plastic (grocery, dry cleaning)• Plastic containers (1-7)• Shredded paper (bagged)• Wrapping paper (with no metal) NO! / ¡NO! LANDFILL ONLY SOLO BASURA PARA EL VERTEDERO Your Zero Waste Partner (888) 336-6100 AthensServices.com NO! / ¡NO! RECYCLABLES ONLY SOLO RECICLABLES NO LIQUIDS OR FOOD/ NO LIQUIDOS O COMIDA *Bagged shredded paper / papel triturado en bolsa Your Zero Waste Partner (888) 336-6100 AthensServices.com Container Colorization Athens will work with your City to determine the best approach to phase in new, SB 1383 compliant containers. 16 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX B Outreach and Education Athens Services currently provides outreach and education for customers subject to AB 341, AB 1826 and AB 827. SB 1383 will have an impact on all customers, and much effort is needed to help customers with this transition. Athens Services can provided enhanced outreach and education efforts to help the City comply with SB 1383. Outreach will be provided through print, in-person and electronic communication on an annual basis. Outreach materials will be translated into the appropriate languages spoken in your community. Athens will also keep copies of all outreach provided and will track and document which customers received the outreach. This includes tracking all social media activity. Content that will be communicated to customers include: 1. How to properly sort waste 2. How to prevent organic waste generation 3. Methane reduction benefits 4. Public health and safety & environmental impacts 5. Edible Food Recovery 6. Self-haul requirements (if applicable) Below is a summary of the Athens outreach plan for your City. Recycling Coordinators Athens’ Recycling Coordinators (RC’s) are trained recycling exports with a niche for conducting outreach and education. Recycling Coordinators will lead the outreach efforts in your City by utilizing a variety of tools to engage with customers. Whether in-person or virtually, recycling coordinators will ensure the community has the right resources for a successful recycling and organics program. RC’s will provide site visits to all commercial and multifamily customers and conduct waste assessments, which will include: • Comprehensive waste audit • Detailed waste management and recycling strategies • Customer personnel training • Effective signage, location placement, and maintenance suggestions • Container types, sizes, and pick-up frequency recommendations Many customers cannot be onsite or do not feel comfortable participating in onsite assessments, given concerns that have arisen due to COVID-19. Our RC team can conduct virtual waste assessments where we engage the customer over the phone or through a Zoom meeting to go through the site visit’s details and our findings. We ask the customer several questions about their business or multifamily site, gather and document this information for future use, and make recommendations on service levels. 17 We also have the ability to video record our onsite waste assessments for clients, when necessary. The video will include suggestions and be available to the appropriate parties. We will also follow up with additional input and resources. The RC and client can review the video together or separately. This approach is essential for our multifamily accounts, which might have out-of-state managers or have COVID-19 (or other health concerns) limitations. As part of our customer visits, customers will receive recycling signage and training on additional resources. Athens’ recycling resources are available on www.athensservices.com/outreach/ for download, promoted via social media, distributed with e-mail blasts or mailed based on the customer’s preferred method of contact. Outreach & Education App Athens has developed an Outreach and Education application “App” to help track customer interactions. The application was designed specifically for use in the field by Recycling Coordinators. The app collects customer information, along with additional vital information pertaining to the waste and recycling program. We will use the data to target specific customers for outreach on recycling, organics, contamination, and edible food recovery. Data Collected by the Outreach and Education App • Contact information, service and billing address, service levels, and routing information • Date and Time of trainings • GPS link to service and bin location • Photos of bin locations, enclosures, and inside the containers. • Container information, including lock lids, custom bin sizes, and measurements • Site information, including any safety hazards, gate codes, or special access instructions. • Customer implementation of recycling and organics signage and interior containers for employee, tenant, and customer use. • Reasons why customer refused outreach material or services offered. • Contamination training, including participants and pictures • Types of material in waste stream the customer throws away and estimated volumes. • Customer’s interest and previous attendance in recycling and organics training • AB 1826 and SB 1383 compliance questions, including if they have any implementation issues, refuse service, and if they are or should be participating in edible food recovery. The data collected can be utilized for regulatory compliance of a multiple recycling mandates. 18 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy Print & Electronic Tools Our marketing team has perfected digital marketing for community engagement. Today, Athens’ social media averages an industry-leading 17% follower engagement. This figure is not only higher than the industry average but also higher than the national average. We will utilize this high engagement to connect with the community and other prominent organizations to convey important dates and service information. Athens is currently active on the following platforms: While we prioritize digital marketing to minimize paper consumption, we realize that some customers prefer mailers and handouts. Therefore, our marketing team will also develop community hard copy collateral to help educate your residents and businesses. Athens will provide quarterly newsletters to both residential and multifamily customers by mail in their bill or electronically. Newsletter content will include service notifications and tips on proper sorting and usage. These newsletters will contain legislative information, as well as general information about the City’s overall waste and recycling program, including food recovery programs. Athens will continue to distribute our annual legislative brochure as a billing insert, by mail or electronically. Athens has developed video content containing various waste and recycling training topics, and we continue to grow our content library. These videos will be available to all customers to help further provide support as needed. Interactive Ultimate Recycling Guide Athens’ “What Goes Where Guide” is your interactive zero-waste guide for correctly reusing, recycling, and composting unwanted items. In collaboration with Recyclist, Athens has developed this innovative guide to help customers and communities identify the proper stream for more than 350 materials types. The interactive zero-waste guide provides: • User friendly and promotes recycling • Fully customizable and tailored to City needs • Illustrate tips on reusing, reducing, and recycling of 300+ everyday items • Educational content about disposal options, safe handling, and alternative recycling options • Local information about drop-off and collection programs • Work seamlessly across devices with no download required • Provide mobile-friendly information with SEO (Search Engine Optimization) • Allow users to stay up-to-date with accurate information • Update easily and quickly given editorially supported services • Quantify utilization and traffic with Google Analytics Instagram Facebook LinkedIn YouTube Twitter 19 APPENDIX C Contamination Monitoring: Route Audits SB 1383 places the responsibility of contamination monitoring on the jurisdictions. Athens is able to help with this requirement by providing quarterly route reviews of organic collection routes. Reviews are conducted to monitor contamination levels in waste stream. Athens has a trained team of professional auditors dedicated to route reviews. Athens recently developed new technology that enhances the process. Route Review Process On a quarterly basis, the Athens will audit approximately 20% sampling of organic routes, both residential and commercial. A residential route has approximately 1,000 customers per day, therefore we will target a sampling of roughly 200 customers per day per route. Commercial organics routes have roughly 130 stops per day. There we will target approximately 30 customers per route per day. Route Review App Route reviews are completed utilizing a custom app to help with this process. The app is similar to the Outreach and Education app. The Route Review app enables our auditor team to track customers volumes and contamination levels. The app guides auditors through a series of questions. The app also has the ability for our team to upload photos of audited locations and containers, which will be made available to the City for CalRecycle reporting purposes. Below is a screen shot of the route review app: 20 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy Route Review Dashboard In addition to the Route Review app, Athens has developed a user friendly dashboard that summarizes and populates the data collected from the route reviews. This dashboard contains information on the total number of customers audited, total number of containers contaminated, the contamination percent, as well as a map of the areas audited. This dashboard will be made available to the City, for regular monitoring. Athens will store and manage this data on behalf of the City and provide the data needed for the City to submit to CalRecycle for required reporting. Notice of Violation The information gathered from the quarterly route reviews will help Athens’ Outreach Team target outreach efforts to minimize contamination, and will provide the backup validation to issue violation notices as required under SB 1383. This notice will be issued on behalf of the City to the generator who is contaminating the waste stream. It will include information regarding the contamination and will include photographic evidence of the violation. Notices will be emailed or mailed based on the customer’s preference. 21 APPENDIX D Data Management & Reporting Athens Services utilizes its Soft-Pak customer database to monitor and report activity. Utilizing customized tracking codes specific to your City, Athens will monitor outreach and education and incidents of contamination. Using Athens’ fully customized recycling coordinator mobile app, and route review app, Athens can quickly and accurately report site visits, waste assessments, and service level adjustments in our Soft-Pak database. Container Contamination Reporting: SB 1383 requires jurisdictions to provide record keeping for container contamination. Athens will provide the support needed to the City for this requirement. Athens will keep copies of the following, which will be available to the City upon request: 1. A description of the jurisdiction’s process for determining the level of container contamination. 2. Documentation of route reviews conducted. 3. Copies of all notices issued to generators with prohibited container contaminants. 4. Documentation of the number of containers where the contents were disposed due to observation of prohibited container contaminants. 5. The number of hauler route reviews conducted. 6. Description of the process for determining the level of contamination. 7. Summary report of non-collection notices and/or contamination processing fee assessment notices issued, which for each notice shall include the date of issuance, customer name, and service address. 8. A record of each inspection and contamination incident, which shall include, at a minimum: • Name of the Customer • Address of the Customer • The date the contaminated Container was observed • The staff who conducted the inspection • The total number of violations found and a description of what action was taken for each • Copies of all notices, and enforcement orders issued or taken against generators with prohibited container contaminants • Any photographic documentation or supporting evidence 9. Documentation of the total number of containers disposed of due to observation of prohibited container contaminants. 10. A list of all customers assessed contamination processing fees reported separately by residential, multi- family, and commercial premises customers and including the customer name, customer address, and reason for the assessment of the contamination processing fee, and the total number of instances contamination processing fees were assessed in the month and the total amount of fees collected in the month. 22 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy Complaint Reporting Athens will maintain a record of all SB 1383 non-compliance complaints and responses to track the following information: 1. Total number of complaints received and total number of complaints investigated. 2. Copies of documentation recorded for each complaint received, which shall at a minimum include the following information: • The complaint as received • The name and contact information of the complainant, if the complaint is not submitted anonymously • The identity of the alleged violator, if known • A description of the alleged violation; including location(s) and all other relevant facts known to the complainant • Any relevant photographic or documentary evidence submitted to support the allegations in the complaint 3. Copies of all investigation reports, which shall include at a minimum: • The complaint as received • The date Athens investigated the complaint • Documentation of the findings of the investigation • Any photographic or other evidence collected during the investigation • Athen’s recommendation to the City on whether or not the entity investigated is in violation of SB 1383 based on the investigation Generator Waivers Athens will provide a report that documents each generator waiver request. This report will identify the generator name and service address, the type of waiver requested, and the status of the waiver (accepted, denied, pending). Outreach Reporting 1. A copy of all education and outreach materials provided to generators, but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media postings. 2. A record of the date and to whom the information was disseminated or direct contact made, in the form of a list that includes: the generatorʹs name or account name, the type of education or outreach received; the distribution date, and the method of distribution. 3. The number of organic waste generators and commercial edible food generators that received information and the type of education and outreach used. 4. Athens will maintain a record of the date, a copy of the any mass distribution mailings or billing inserts, and the type and number of accounts that received the information. 5. A copy of electronic media, including the dates posted of: social media posts, email communications, or other electronic messages. 23 6. Records of all technical assistance efforts conducted, including: • The name and address of the customer/generator receiving technical assistance, and account number, if applicable. • The date of any technical assistance conducted and the type of technical assistance, including, but not limited to: site visits, waste assessments, compliance assessments, direct outreach, workshops, meetings, events, and follow-up communications. • A copy of any written or electronic educational materials distributed during the technical assistance process. 7. A copy of all special event reports submitted to the City in accordance with Section 4.4.6 of the Agreement. Food Recovery Program Support 1. The total number of generators classified as Tier 1 and Tier 2 commercial edible food generators located within the City. 2. The number of food recovery services and food recovery organizations located and operating within the City. 3. The number of generators participating in the edible food recovery program. APPENDIX D (cont.) Data Management & Reporting 24 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX E Procurement Support Commencing January 1, 2022, a jurisdiction shall annually procure a quantity of recovered organic waste products that meets or exceeds its current annual recovered organic waste product procurement target as determined by CalRecycle’s procurement calculation. Athens has confirmed it can assist your City in meeting the procurement requirements through the renewable natural gas utilized in our collection vehicles and through providing compost to your City. Renewable Natural Gas Athens has eliminated 10,549 metric tons of climate-altering greenhouse gas emissions since 2012, which is the equivalent of: • 26,176,000 miles driven by an average passenger vehicle • 1,700 Homes Powered by electricity for one year • 1,187,000 Gallons of gasoline consumed Investing in Clean Technology and Renewable Fuels Our collection fleet is currently over 90% natural gas vehicles (NGVs) – the cleanest refuse vehicle commercially available. In 2008, we committed to never adding a diesel vehicle to our collection fleet. We are committed to retiring all diesel vehicles and making our entire collection fleet 100% natural gas vehicles by 2023. Renewable Fuels Over four years ago, Athens began investing in renewable natural gas (RNG)—a low carbon, renewable fuel that is made from existing organic waste streams. As of 2019, renewable natural gas now composes 89% of our total natural gas fuel use, which will continue to increase in the coming years. Why Does Athens Use Natural Gas Vehicles? • Reduce Emissions: The newest natural gas engines produce 90% fewer NOx emissions than the EPA’s current heavy-duty emission standard. • Minimize Maintenance: NGVs have no messy Diesel Particulate Filter (DPF) regeneration or waste and have no diesel exhaust fluid. • Quieter in Communities: NGVs have engines 10 decibels quieter than their diesel equivalent, reducing noise pollution in neighborhoods. • Minimal Downtime: NGVs can run 600+ miles of daily operation without compromise. • Safer for Residents and Drivers: When compared to traditional diesel vehicles, natural gas vehicles provide a safer experience for drivers and residents by eliminating exposure to diesel fumes and odor. • Utilize Locally Produced Fuel: NGVs, when fueled with RNG, utilize a renewable fuel produced in-state. 25 What is Renewable Natural Gas? Renewable natural gas (RNG) is a renewable fuel made by harnessing methane emitted by organic waste. The methane can be harnessed from food and green waste, wastewater treatment plants, landfills, dairy farms, and forest management. The methane is captured, cleaned, and injected into the existing natural gas pipeline so that it can be transmitted and stored anywhere in the state. Once processed, RNG is a drop-in replacement for conventional natural gas and can be used to fuel natural gas vehicles. Composting Athens recently invested in a multi-million dollar redevelopment effort of our American Organics facility in preparation of the upcoming SB 1383 mandate. To read more about our facility and how it operates, please refer to the attached article https://athensservices.com/wp-content/uploads/2020/08/CASP-White-Paper- Final.pdf. American Organics American Organics is another facility in the Athens family that is on the cutting edge of tech innovation. Located in Victorville, the site recently completed major renovations at the 700 tons per day facility, with the ability to divert 85% of organic material. The redesigned facility was converted from a traditional windrow, outdoor windrow composting system to a Covered Aerated Static Pile (CASP) system. The renovation included a 22,000-square-foot, covered processing center that will process 50 tons per hour on a fully automated processing line. American Organics material is Certified Organic by CDFA. It is OMRI certified, ensuring that both Organic and Conventional operations can utilize it, and thus our material is available to 100% of users within the category. We are a member of the United States Compost Council and maintain certification using their authorized third- party laboratory for analytical testing or labs. These labs are a critical tool for product evaluation and quality. 26 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX F Food Recovery Support Athens can provide support to the City with their Food Recovery program. Below is a summary on how Athens can partner. No later than January 1, 2022, Athens will identify all commercial customers that meet the definition of Tier 1 and Tier 2 Commercial Edible Food Generators and provide a list of these customers to the City, which shall include: • Customer name • Service address • Contact information • Tier One or Tier Two classification • Type of business (as it relates to the Tier One and Tier Two Commercial Edible Food Generator definitions). Athens will work with the City to help identify food recovery partners that can provide support to Tier 1 and Tier 2 customers. The list of qualified food recovery partners will be placed on the Athens food donation webpage, for customers to access. You can view this information at www.athensservices.com/fooddonation/. At least annually, Athens provide Commercial Edible Food Generators with the following information: • Information about the City’s Edible Food Recovery program • Information about the Commercial Edible Food Generator requirements • Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found • Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste Athens will also provide the education information required by SB 1383 by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to commercial businesses. An example of our food recovery outreach material is included below: 27 SERVICE | PEOPLE | ENVIRONMENT