Council directs further review of solid-waste franchise options, refers matter to Internal Affairs with staff follow-up

Staff presented the city's options for replacing or extending expiring solid-waste franchise agreements that have been in place since 2017. Public Works Director Skyler Webbski outlined three options: negotiate a five-year extension with the current haulers, initiate a competitive RFP/RFQ, or transition back to an open market structure. Webbski warned state mandates for organics processing (SB 1383) could increase costs and that any extension would be negotiated, not automatic.

Public comment was extensive and mixed. Waste-hauler representatives urged negotiating an extension with stronger performance standards; the Downtown Chico Business Association and Habitat for Humanity praised existing community partnerships. Property-owner groups and some multifamily property managers urged an RFP for transparency and competitive rates; one property manager said some customers saw rate increases of up to 300% when the system moved from open market to franchise.

Council members weighed competitive bids versus the risk of a new provider failing to deliver. Several members supported initiating an RFP or at least developing key decision points; Vice Mayor Bennett and Council Member O'Brien favored sending the issue to Internal Affairs for more detailed review and to solicit community input. A substitute motion to narrow staff direction failed, and the council ultimately voted 5-1 (one no, one absence) to forward all three options to Internal Affairs and for staff to return with key decision points and information to finalize procurement direction.

Staff emphasized there was no final contract action requested that night; any contract or extension would return to council for approval.