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San Francisco LAFCO reviews rapid R3 study on refuse procurement; commissioners seek deeper fee, barging and contract analysis
Summary
LAFCO heard an R3 consultant report showing San Francisco’s high diversion and average rates but no formal franchise contract; commissioners asked for more data on franchise‑fee equivalents (DOE: ~$29M/≈10.6%), port barging options and a legal review of the 1932 permit ordinance and asked R3 to return in 3–4 weeks.
The San Francisco Local Agency Formation Commission on April 13 received a rapid independent study of refuse collection, hauling and disposal that confirmed the city’s high diversion rates and broadly satisfactory service but flagged that San Francisco lacks a conventional, time‑limited franchise contract used in most Bay Area jurisdictions.
The 3‑week R3 study, presented to the commission by consultant Rick Hutchinson, reviewed procurement practices in roughly 95 jurisdictions across seven counties and found that 55% use competitive procurement while about 45% rely on legacy or non‑competitive arrangements. Hutchinson told the commission three large haulers — Republic Services, Recology and Waste Management — serve a majority of the surveyed jurisdictions, and that most peers document service standards and term limits in a written franchise or contract. “Unlike virtually every jurisdiction we studied, San Francisco uses a permit and license process and does not have a formal contract with a finite term,” Hutchinson said during the presentation.
Why this matters: commissioners said the distinction has budgetary and oversight implications. Melanie Nutter,…
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