Currently, there is a permit system for solid waste haulers that provide services to commercial and multi-family properties in the City of El Segundo. These haulers operate pursuant to City-issued permits that are scheduled to expire April 2025.

A five-year notice of the City’s intent to franchise commercial and multi-family services was provided to applicable haulers on June 12, 2019. It is the City's intent to execute one or more non-exclusive franchise agreements with qualified haulers in 2024 for commercial solid waste collection, recycling, and disposal services.

This task is being done in two steps. Step one consisted of a "Request for Qualifications" ("RFQ"). The purpose of the RFQ is to assist in identifying haulers that meet the City’s minimum qualifications, have a history of good customer service, and have a demonstrated track record of compliance with applicable state laws and regulations, including state-mandated reporting requirements.

Step two will consisted of a Request for Proposals ("RFP") from those haulers that have demonstrated the requisite qualifications. As part of the RFP, the haulers will be required to propose service rates. Each of the haulers chosen to enter into a non-exclusive franchise agreement with the City will not be allowed to charge any of its customers at a rate higher than that set forth in its proposal; however, the hauler would be free to charge a lesser rate as it deems necessary to compete for business. We anticipate that the franchise agreements will allow for automatic annual rate increases tied to a specific national price index and will also allow the franchisees to request permission for additional increase in extraordinary circumstances. 

Once all the proposals have been received and evaluated, the City Council will choose which, and how many haulers will be offered a non-exclusive franchise agreement.

Public Works staff received direction in the November 5, 2024, City Council Meeting regarding the referenced item. Pursuant to the Council’s direction, all qualified haulers that successfully responded to the Request for Proposals for Commercial Solid Waste Collection, Recycling, and Disposal Services for the City of El Segundo will be offered the opportunity to enter into a Non-Exclusive Franchise Agreement with the City. There was a total of twelve (12) qualified hauler proposals received in response to the RFP issued in April 2024. At the direction of the City Council, the term of the non-exclusive agreement that will be offered will be limited to an initial two years.

We anticipate that the non-exclusive agreements will be fully executed and in place by April 1, 2025. The City intends to extend the current permitted haulers through March 31, 2025. For more information, please reach out Daniel Pankau at dpankau@elsegundo.org or 310-524-2358.