HomeMy WebLinkAbout2025-09-25; Palomar Transfer Station Operator Selection and Sustainable Materials Management and Compliance Plan (Districts -All); Gomez, PazTo the memb~rs of the:
CITY COUNCIL
Date i/25\2SCA V CC ✓
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September 25, 2025
Council Memorandum
{city of
Carlsbad
Memo ID# 2025057
To:
From:
Honorable Mayor Blackburn and Members of the City Council
Paz Gomez, Deputy City Manager, Public Works
Via:
Re:
Sheila Cobian, Assistant City Manager ~
Palomar Transfer Station Operator Selection and Sustainable Materials
Management and Compliance Plan (Districts -All)
This memorandum provides an overview of the city's upcoming efforts to secure a long-term
operator for the Palomar Transfer Station (PTS} in preparation for the expiration of the current
operator agreement and underlying County of San Diego lease in 2027.
Background
A solid waste transfer station receives various materials from residential, business and
community customers, sorts that material and then transports it to regional landfill and
recycling centers. In Carlsbad, the city leases the PTS property from the County of San Diego
under a long-term lease agreement that commenced June 1, 2002, with an initial 25-year
prepaid term through May 31, 2027, and up to 14 five-year extension options. The lease was
originally executed by Allied Waste Systems, Inc. (now Republic Services}. Later in 2002, the city
assumed the lease from Allied Waste Systems, Inc., to secure long-term local control over solid
waste services. At that time, the city also entered into a sublease and operations agreement
with Palomar Transfer Station, Inc. (a Republic Services subsidiary}, allowing Republic Services
to continue operating the facility under an operator contract with the city.
In 2021, the City Council approved Amendment No. 5 to extend and amend the PTS and
Disposal Services Agreement with Republic Services through May 31, 2027, aligning the
operations contract with the County lease term. This amendment also added new waste
diversion programs and compliance measures required under Senate Bill 1383.
Discussion
The County of San Diego is currently considering the city's request to combine two five-year
lease extension options into a single 10-year extension (2027-2037}. County staff have
indicated that an appraisal of the premises will not be completed until mid-2026, after which
proposed lease terms will be provided for city review. Preliminary feedback suggests the
10-year option is under consideration but requires further internal review and approval by the
County Board of Supervisors.
Public Works Branch
Environmental Sustainability Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2646 t
Council Memo -PTS Operator Selection and SMM and Compliance Plan (Districts -All)
September 25, 2025
Page 2
The expiration of both the city's operating agreement with Republic Services and the County
lease in 2027 necessitates coordinated action to ensure continuity of service, compliance with
evolving solid waste regulations and alignment with the city's sustainability goals.
To support this effort, staff plan to work with a consultant to provide phased services,
including:
• Aligning PTS operator contract development with anticipated County lease
requirements and appraisal-based rent adjustments
• Assessing current PTS operations, financial performance and regulatory compliance
• Developing the Transfer Station Sustainable Materials Management and Compliance
Plan, which would identify opportunities to increase waste diversion, modernize the
facility and improve customer service
• Supporting negotiations and development of a new operator agreement that ensures
regulatory compliance, financial optimization and community benefit
This phased approach will guide the city from compliance assessment and strategic planning
through development of a new operating agreement, environmental responsibility and service
excellence for the next decade and beyond.
Next Steps
Staff plan to initiate a Request for Proposals (RFP) to retain a consultant with expertise in solid
waste operations, financial modeling and sustainable materials management to guide the city
through this process. With the current operator agreement and County lease expiring in 2027,
proactive planning is essential to maintain continuity of service, meet regulatory requirements,
and advance the city's sustainability goals.
The following timeline is provided:
• Issue RFP for consulting services -September 26, 2025
• Begin working with a consultant to assess the PTS facility and programs -Early 2026
• Complete assessment and phased planning deliverables -Summer 2026
• Return to the City Council with consultant findings and recommendations, including a
potential RFP for a PTS Operator, contingent on City Council direction -Early 2027
cc: Geoff Patnoe, City Manager
Cindie McMahon, City Attorney
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services
Tim Lyons, Assistant City Attorney
Jason Haber, Intergovernmental Affairs Director
Zach Korach, Finance Director
James Wood, Environmental Sustainability Director
Council Memo -PTS Operator Selection and SMM and Compliance Plan (Districts -All)
September 25, 2025
Page 3
Curtis Jackson, Real Estate Manager
Avecita Jones, Senior Program Manager