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Committee forwards extension to landfill disposal agreement with Recology

San Francisco Board of Supervisors Budget & Finance Committee · June 5, 2024
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Summary

City environmental staff asked and the Budget & Finance Committee recommended a time-limited extension to the exclusive landfill disposal agreement with Recology to allow the city to complete a new RFP and related CEQA processes; staff said the extension would add roughly 4.3 years of disposal capacity at current rates.

The Budget & Finance Committee voted to forward a resolution authorizing the extension of the city’s landfill disposal agreement with Recology for either six additional years or up to 1,600,000 additional tons of waste, whichever occurs first.

Jack Macy, Zero Waste program manager in the Department of the Environment, told the committee the current contract (signed in July 2015) reaches its contractual term on 07/21/2024 or when the 3.4 million‑ton disposal limit is reached. Macy said the extension option would add roughly 4.3 years of disposal at current rates, giving the city time to conduct a new competitive solicitation, complete CEQA and negotiate a new agreement. "This additional time is really valuable for us," Macy said on the record, noting past procurement took seven years and included legal challenges.

Macy presented the fee context — landfill operations and mitigation fees are embedded in refuse rate setting and account for a small portion (~4%) of total refuse cost per the department’s slide — and discussed the practical need to align procurement and environmental review timelines. The committee discussed coordination with the City Administrator and recommended working with the Office of Contract Administration to prepare the next solicitation; the item was forwarded to the full Board with a positive recommendation (roll call: Mandelmann — aye; Melgar — aye; Chan — aye).

What’s next: the Environment Department will use the extension period to prepare an RFP, complete CEQA and pursue a competitive procurement for future landfill disposal services.

Sources: Department of the Environment presentation and committee discussion recorded in the hearing transcript.