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San Francisco commission authorizes extension of landfill disposal agreement with Recology

San Francisco Commission on the Environment · June 24, 2024
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Summary

The Commission on the Environment voted unanimously to authorize the director to execute an extension of the city—s landfill disposal agreement with Recology, adding capacity and time while staff proceed with a new procurement and CEQA review.

The San Francisco Commission on the Environment on June 24 voted to authorize the director to execute an amendment extending the city—s landfill disposal agreement with Recology San Francisco.

Commissioners heard staff say the original agreement, executed July 22, 2015, designates Recology—s Hay Road landfill (Dixon/Vacaville area) as the primary disposal site and includes both a time-based option and a tonnage cap. Staff reported the city has disposed roughly 3,200,000 tons under the contract as of May 1 and said the contract—s 3,400,000-ton cap would be reached earlier than the time-based term; an extension option would add 1,600,000 tons (for a total contractual capacity of about 5,000,000 tons) or increase the term by up to six years, whichever comes first.

Jack Macy, the department presenter, told commissioners the landfill component of refuse rates is included in what residents and businesses pay and cited a landfill disposal cost of about $40.60 per ton (presentation materials also referenced $40.16 per ton). Macy said Recology won the original competitive bid at roughly half the price of its nearest competitor during procurement and that current market tipping fees cited in a recent study range from about $50 to $95 per ton, making the present contract—s landfill component comparatively favorable.

Staff framed the amendment as a pragmatic step to preserve disposal capacity while the City completes a full procurement process, which will include an RFP, California Environmental Quality Act (CEQA) analysis, contract negotiation and Board of Supervisors approval. Macy said the extension would also buy up to four years needed to pilot and evaluate technologies to recover organics and other material from the waste stream; a June 1 pilot test showed preliminary results indicating more than 40% of the material could be routed to composting, with full composting-test results expected after about 90 days.

Commissioner Tompkins moved to approve the resolution authorizing the director to execute the extension and Commissioner Yuan seconded. The motion passed on a roll-call vote: Vice President Sullivan, Commissioner Ahn, Commissioner Bermejo, Commissioner Tompkins and Commissioner Yuan voted "Aye." President Juan and Commissioner Hunter were excused.

Next steps noted by staff include completing the amendment paperwork, continuing pilot work on waste processing to maximize recovery of compostables and other materials, and beginning the procurement and CEQA schedule with a goal of finishing the solicitation process by 2028.