That the City Council:
APPROVE THE FIRST READING OF ORDINANCE NO. _____ ENTITLED:  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, REPEALING IN ITS ENTIRETY CHAPTER 8.04 “GARBAGE AND RUBBISH COLLECTION AND DISPOSAL” OF TITLE 8 “HEALTH AND SAFETY” AND REPLACING IT WITH CHAPTER 8.04 “SOLID WASTE COLLECTION AND DISPOSAL” RELATING TO SOLID WASTE RECYCLABLE MATERIALS AND ORGANIC WASTE RECYCLING REQUIREMENTS, PER SENATE BILL 1383.

In 2016, the State of California approved SB 1383, the Short-lived Climate Pollutant Reduction Act, which requires the California Department of Resources Recycling and Recovery (CalRecycle) to develop regulations to reduce organic waste going into landfills in an effort to curtail a source of methane. SB 1383 places legal requirements on cities, residential households, commercial businesses, commercial edible food generators, waste haulers, self-haulers, food recovery organizations, and food recovery services to support the achievement of statewide organic waste disposal reduction targets.  In addition, SB 1383 requires cities to adopt and enforce an ordinance or other enforceable mechanism that implements relevant provisions of the law.  CalRecycle requires each city to adopt its local ordinance by December 31, 2021.  The adoption of the proposed ordinance presented to City Council in this report will satisfy that requirement for the City of La Habra.

As drafted, the ordinance being considered by the City Council will amend and restate Chapter 8.04 of the La Habra Municipal Code concerning the handling of refuse and recycling materials and enable the City to implement and enforce its rules and regulations relating to the handling of solid waste in a manner consistent with State law. 

The ordinance will revise and add new language on a number of issues, a summary of which is as follows:

1. Definitions:  Much of the City's existing solid waste disposal ordinance has been unchanged since 1970.  The new ordinance will update the City’s code, as well as revise and add definitions to ensure compliance with SB 1383.

2. Updates Existing General Refuse Provisions:  The new ordinance updates and restates many of the basic provisions in the City’s Solid Waste Ordinance, such as regulations specific to refuse container placement, refuse container tampering, scavenging, illegal dumping, handling of certain materials and other related issues.

3. Hours of Collection:  The ordinance will change the hours of collection for trash trucks from the current “no collection…before the hour of six a.m.” to “no collection…before six (6) a.m. or thirty (30) minutes after sundown.”

4. Exclusive Franchise Agreement:  The ordinance clarifies who is allowed to haul refuse in the City, exceptions to the City’s exclusive agreement, equipment standards, billing, and other related issues.

5. Removal of Unauthorized Containers:  The ordinance revises the existing article on unauthorized containers that are brought in by other non-franchised haulers, making it easier for staff to take corrective action against non-franchised haulers who may bypass the City’s existing laws.

Under the City's current ordinance, unauthorized haulers found in the City are provided a notice of violation.  The hauler is then required to complete loading of the bin within 24 hours and leave.  In this particular scenario; however, the City may not issue any penalties, impound, or punish repeat offenders as long as the unauthorized hauler removes the bin within 24 hours.

Under the proposed changes, once an unauthorized hauler has been provided an initial notice, any subsequent violations will result in the impoundment of their bin and trigger an automatic violation notice and assessment of fees.  Furthermore, containers that do not have proper identification and contact information can be automatically impounded and fees issued. 

6. Requirements for Residential and Commercial Premises:  This change requires all residential and commercial premises, including multi-family dwellings, to have a recycling and organics program along with their regular trash service. This change also details self-hauler requirements and what documentation is needed for those who self-haul their waste, as well as provides a description of the waiver process and allowable exemptions.

7. Edible Food Recovery:  This change details how Tier 1 and Tier 2 commercial edible food generators must comply with SB 1383 and the food recovery requirements of the ordinance.  Pursuant to law, businesses must arrange to recover the maximum amount of edible food that would otherwise be disposed, contract with a food recovery organization, and keep records of their collections. These mandates also apply to food recovery organizations, haulers, and facility operators, as well as specifies procurement requirements imposed upon the City, including an obligation to maintain records on the procurement of recovered organic waste products and paper products.

8. Enforcement:  The City or its representative may conduct inspections of any collection container, vehicle loads, transfer facilities, processing facilities, and/or disposal facilities.  Pursuant to SB 1383, inspectors will work to ensure that 100% of residents and businesses have programs, and will check for any contamination in all three containers (trash, recycling, organics) to make sure recycling is being done properly.

Any violations of this article may cause the issuance of a notice of violation with possible penalties based on further non-compliance, with penalties ranging from $100 to $500 per violation.  In addition, the City is authorized to commence civil, criminal (misdemeanor or infraction) or other administrative actions to address the violations.  Violations of this ordinance are subject to administrative penalties beginning January 1, 2022. 

Staff anticipates that many customers will need to adjust to the new State mandated regulations regarding organic waste management and will emphasize education programs and notices for residents and businesses about SB 1383 and the new ordinance to ensure compliance.  In the case; however, of blatant, willful and recurring violations, staff will have the tools necessary to levy fines to encourage compliance with these new regulations.

There are likely to be multiple direct and indirect fiscal impacts to the City due to the State mandated implementation of SB 1383; however, it is difficult to determine what those impacts could be at this time.  Staff anticipates that there will be an increase, by some customers, for requests to provide recycling and organics containers as commercial businesses, multi-family dwellings, and some residential town home associations transition from the current two-cart service to a new three-cart service.  Staff also anticipates that there will be an increase in franchise fee revenues to the General Fund and sanitation fee revenues to the Refuse Fund as a result of new organics fees that will be assessed to pay for this new mandated diversion.

The amount of administrative violations is anticipated to be low during the first year as staff focuses on education, rather than penalties, to encourage compliance; however, revenues from fines may increase beginning in 2023.  CalRecycle expects cities to issue violations for contamination in the waste stream and the City is required to document those instances when they occur. 

Any potential funds generated from future fines, including those imposed on unauthorized haulers, cannot be accurately forecast at this time; however, staff will monitor the program as it is implemented and will track and budget any potential new costs or revenues resulting from this new State mandated program.