Agenda packet — Brea City Council, February 18, 2025 (part 1 of 3)

City Council and Successor Agency
to the Brea Redevelopment
Agency Agenda
Closed Session - 6:00 p.m.

General Session - 7:00 p.m.

Tuesday, February 18, 2025, 7:00 PM

COUNCIL CHAMBERS
1 Civic Center Circle
Brea, California 92821
Blair Stewart, Mayor Cecilia Hupp, Mayor Pro Tem Christine Marick, Council Member Marty Simonoff, Council Member Steven Vargas, Council Member This agenda contains a brief general description of each item Council will consider. The City Clerk has on file copies of written documentation relating to each item of business on this Agenda available for public inspection.

Contact the City Clerk’s Office at (714) 990-7756 or view the Agenda and related materials on the City’s website at www.cityofbrea.gov. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 1 Civic Center Circle, Brea, CA during normal business hours. Such documents may also be available on the City’s website subject to staff’s ability to post documents before the meeting.

Procedures for Addressing the Council
The Council encourages interested people to address this legislative body by making a brief presentation on a public hearing item when the Mayor calls the item or address other items under Matters from the Audience. State law generally prohibits the City Council from responding to or acting upon matters not listed on this agenda.

The Council encourages free expression of all points of view. To allow all persons the opportunity to speak, please keep your remarks brief. If others have already expressed your position, you may simply indicate that you agree with a previous speaker. If appropriate, a spokesperson may present the views of your entire group. Council rules prohibit clapping, booing or shouts of approval or disagreement from the audience. Please silence all cell phones and other electronic equipment while the Council is in session. Thank you.

Written comments may be submitted in advance of the meeting by emailing [email protected].

Written comments received by 3 p.m. on the day of the meeting will be provided to the Council, will be made available to the public at the meeting, and will be included in the official record of the meeting.

Special Accommodations
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (714) 990-7757. Notification 48 hours prior to the meeting will enable City staff to make reasonable arrangements to ensure accessibility. (28 CFR 35.102.35.104 ADA Title II) Important Notice
The City of Brea shows both live broadcasts and replays of City Council Meetings on Brea Cable Channel 3 and over the Internet at www.cityofbrea.gov. Your attendance at this public meeting may result in the recording and broadcast of your image and/or voice as previously described.

1. CLOSED SESSION - EXECUTIVE CONFERENCE ROOM 3RD FLOOR - 6:00 P.M. 1A. Call to Order/Roll Call
1B. Public Comment
1C. Public Employee Appointment Pursuant to Government Code Section 54957(b). Title: City Manager
1D. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6. City Representatives: Council Member Marick, Council Member Vargas and Mario Maldonado, Human Resources Manager. Unrepresented Employee: City Manager

2. GENERAL SESSION - COUNCIL CHAMBERS PLAZA LEVEL - 7:00 P.M. 2A. Call to Order/Roll Call
2B. Pledge of Allegiance: Girl Scout Troop 3033
2C. Invocation: Pastor Doug Green, North Hills Church
2D. Commendation: Senior Christmas Party 2024
2E. Presentation: Business of the Quarter
2F. Community Announcements
2G. Matters from the Audience
2H. Response to Public Inquiries

3. ADMINISTRATIVE ITEM
This agenda category is for City Council consideration of a wide variety of topics related to the City's operations. Public comments regarding items in this section should be presented during "Matters from the Audience."
3A. Consideration of Solid Waste and Recycling Service Rate Adjustments in Conformance with Senate Bill 1383, and Consideration a Second Amended and Restated Franchise Agreement with Republic Waste Services of Southern California, LLC (d.b.a. Brea Disposal) in Conformance with Senate Bill 1383, and Approve a CEQA Exemption.

4. CONSENT CALENDAR
The City Council/Successor Agency approves all Consent Calendar matters with one motion unless Council/Agency or Staff requests further discussion of a particular item. Items of concern regarding Consent Calendar matters should be presented during “Matters from the Audience." 4A. January 28, 2025 Special Meeting Minutes
— 1. Approve.
4B. February 4, 2025 Special Meeting Minutes
— 1. Approve.
4C. February 4, 2025 Regular Meeting Minutes
— 1. Approve.
4D. Monthly Report of Investments for the City of Brea for Period Ended January 31, 2025 — 1. Receive and file.
4E. January Outgoing Payment Log and City Disbursement Registers for January 31, 2025 and February 7, 2025
— 1. Receive and file.

5. CITY/SUCCESSOR AGENCY - CONSENT
5A. Monthly Report of Investments for the Successor Agency to the Brea Redevelopment Agency for Period Ended January 31, 2025
— 1. Receive and file.
5B. Successor Agency Disbursement Register January 31, 2025 — 1. Receive and file.

6. ADMINISTRATIVE ANNOUNCEMENTS
6A. City Manager
6B. City Attorney
6C. Council Requests

7. COUNCIL ANNOUNCEMENTS
7A. Council Announcements

8. ADJOURNMENT
8A. Meeting Adjournment
Date Posted: February 13, 2025
City of Brea
City Council Regular Meeting Communication
A. Consideration of Solid Waste and Recycling Service Rate Adjustments in Conformance with Senate Bill 1383, and Consideration a Second Amended and Restated Franchise Agreement with Republic Waste Services of Southern California, LLC (d.b.a. Brea Disposal) in Conformance with Senate Bill 1383, and Approve a CEQA Exemption.

Meeting
Tuesday, February 18, 2025, 7:00 PM
Agenda Group
ADMINISTRATIVE ITEM Item: 3A.

TO
Honorable Mayor and City Council Members
FROM
Kristin Griffith, Interim City Manager

RECOMMENDATION
Staff recommends that the City Council take the following actions:

1. Consideration of a Revised Second Amended and Restated Franchise Agreement with Republic Waste Services of Southern California, LLC (d.b.a. Brea Disposal), and;

2. If Original Terms are approved, or the Revised Second Amended and Restated Franchise Agreement option is approved, adopt a Resolution approving City staff’s recommendation for the proposed solid waste rates for residential, commercial and multi-family customers, and;

3. If Original Terms are approved, or the Revised Second Amended and Restated Franchise Agreement option is approved, adopt a Resolution approving the Second Amended and Restated Franchise Agreement with Republic Waste Services of Southern California, LLC (d.b.a. Brea Disposal), and;

4. If Original Terms are approved, or the Revised Second Amended and Restated Franchise Agreement option is approved, find the Second Amended and Restated Franchise Agreement is exempt from the provisions of the California Environmental Quality Act (CEQA), and;

5. If none of the above Options are approved, provide further direction to City staff.

BACKGROUND/DISCUSSION
At the February 4, 2025, City Council meeting, the City Council conducted a Public Hearing to receive any comments from members of the public opposed to the proposed solid waste rate adjustments. The Public Hearing was opened and no members of the public spoke in opposition to the proposed rate adjustments. The Public Hearing was closed and City Council conducted a questions and answers session with staff and representatives from Republic Services.

Under the initial draft Second Amended and Restated Franchise Agreement (Agreement), the City retained full flow control for residential and commercial solid waste and residential organic waste, while Republic Services retained flow control for commercial organic waste. The City informed Republic Services of its desire to also retain full flow control for commercial organic waste. Under the revised Agreement, the City will retain full flow control for all residential and commercial solid waste and organic waste.

In exchange for the City’s request, Republic Services has proposed several revisions to the initial terms of the Agreement that was presented to the City Council at the February 4, 2025, meeting. Below is a summary of the proposed revisions.

Second Amended and Restated Agreement Proposed Revisions The initial draft agreement included a gradual seven-year transition for the residential rate adjustment index from the Consumer Price Index (CPI) to the Consumer Price Index for Garbage and Trash Collection Index (GTCI); and a five-year transition for the commercial rate adjustment index from CPI to the GTCI.

In exchange for the City to retain full flow control for both residential and commercial solid waste and organic waste, Republic Services has proposed an additional option related to modifications to the rate adjustment indexes for City Council consideration. This option is an alternative to what was initially negotiated. For the residential rate adjustment index, the phase in period from the CPI to the GTCI would shorten to a four-year phase in period. For the commercial rate adjustment index, years 2 through 6 will utilize the GTCI for the adjustment of the collection component of rates plus an additional 0.75% per year.

Below is the initial negotiated commercial rate for solid waste collection using the most common container size at 3 cubic yards. The initial rates will be effective until June 30, 2026 and are not adjusted by any rate index during the first year.

Under the revised index transition, the switch to the GTCI will take place in year 2 starting July 1, 2026. These projected year 2 rates below are based on an estimated 4% increase in Year 2 for the GTCI plus the additional

0.75% Republic Services is proposing. The average percent increase for the GTCI, from 2015 to 2023, is at 3.70% and has been rounded up to estimate the projected year 2 rate adjustment.

The table below outlines the initial negotiated commercial rate for recycling collection using the most common container size at 3 cubic yards. The initial rates will be effective until June 30, 2026 and are not adjusted by any rate index.

Below, using the revised index transition, the switch to the GTCI will take place in year 2 starting July 1, 2026, and shows the projected increase for commercial recycling container rates for the most commonly used 3 cubic yard container size. These projected year 2 rates below are based on an estimated 4% increase in Year 2 for the GTCI plus the additional 0.75% Republic Services is proposing. The average percent increase for the GTCI, from 2015 to 2023, has been 3.70% and has been rounded up to estimate the projected year 2 rate adjustment.

The table below shows the initial negotiated commercial rate for organic waste collection using the most common container size for a 65 gallon cart. The initial rates will be effective until June 30, 2026 and are not adjusted by any rate index.

0.75% Republic Services is proposing. The average percent increase for the GTCI, from 2015 to 2023, has been

3.70% and has been rounded up to estimate the projected year 2 rate adjustment. Below is the projected increase for commercial organic waste rates for the most commonly used container size.

Additionally, in exchange for the City retaining full flow control for all residential and commercial solid waste and organic waste, Republic Services also requested the following revisions to the initial negotiated terms:

Republic Services would retain full flow control for all residential and commercial recyclable materials Streamlined reporting requirements in Exhibit F. The prior draft Agreement included reports above and beyond SB 1383 requirements
Re-opener language to reset the landfill disposal amount upon the approval of the new County waste disposal agreement
Republic Services Contract Negotiations Results
At the January 17, 2023, Brea City Council Meeting, the City Council created a Solid Waste Ad Hoc Committee (Ad Hoc Committee). It assigned Council Member Hupp and Council Member Vargas to serve on the committee. Since then, the Ad Hoc Committee and City staff have been engaged in extensive negotiations with Republic Services to reach a comprehensive agreement that will provide all the additional services the City must implement to comply with SB 1383 regulations. This Second Amended and Restated Franchise Agreement will memorialize each party's rights and obligations in a single document to implement an SB 1383-compliant program in Brea. The tentative Agreement is being presented for City Council consideration. Below is a summary of some of the new provisions.

Residential and Commercial Rates
A significant component of the Second Amended and Restated Franchise Agreement (Agreement) is implementing a residential curbside organic waste collection program. Under the new program, single-family residential locations can place food scraps in their yard waste cart; thus, the yard waste cart will now be considered an organic waste cart. The residential curbside organic waste collection program was a service that was not part of the prior 2002 Agreement. This component was also one of the crucial activities identified in the City's CAP with CalRecycle.

Table 1 compares single-family residential (curbside) rates of Orange County cities that contract with Republic Services. When reviewing the table, it is essential to note that some cities that contract with Republic Services have not yet implemented a residential organic waste collection program. Once all cities have implemented a program, Brea's single-family rate is anticipated to be closer to the median of cities that contract with Republic Services.
1 Rate includes 3 carts - regular trash, recycling, and yard/organic waste 2 Residential curbside SB 1383 program not implemented
The City of Brea had already established an organic waste collection program for commercial properties under the 2019 CORP agreement to comply with prior organic waste legislation (Assembly Bill 1826). Under SB 1383 regulations, multi-family locations consisting of 5 dwelling units or more are considered commercial entities and fall under commercial services. Through extensive negotiations by the City's Ad Hoc Committee, commercial rate increases were minimized. The amended Agreement keeps commercial rates competitive compared to other Orange County cities that contract with Republic Services.

Table 2 compares commercial/multi-family rates for the most commonly used container size for cities that contract with Republic Services. Under the negotiated terms, Brea will be the second lowest for this container size among cities serviced by Republic.
1 Most commonly used container size Commercial/Multi-Family locations 3 cubic yard bin Table 3 compares commercial/multi-family rates for the most commonly used recycling container size for cities that contract with Republic Services. Through negotiations, Brea is in the top half of rates for containers this size.
1 Most commonly used container size Commercial/Multi-Family locations 3 cubic yard bin The City's Ad Hoc Committee also secured no rate increases for commercial organic waste collection services. The proposed rate will place Brea in the median of cities contracting with Republic Services. 1 Most commonly used container size Commercial/Multi-Family locations 65-gallon cart The amended Agreement also provides customer credits for potential future labor unrest which may impact services. This provision will allow customers to receive compensation for any missed service days.

Additionally, the amended Agreement retains the fifty percent revenue sharing from the sale of recyclable materials collected by providing residential customer rebates.

Liquidated Damages
The amended Agreement contains new liquidated damages provisions to help ensure Republic Services is adhering to performance standards. These liquidated damages allow the City to hold Republic Services accountable for substandard service by imposing monetary penalties. Below are some of the liquidated damages the City would be able to impose:

Failure to collect discarded materials that have been adequately set out for collection - $100 per occurrence.

Failure to collect illegally dumped bulky goods within two days of notification by the City -$100 per day.

Failure to clean up vehicle leaks or spills within the agreed time-frame - $500 per occurrence.

Failure to record a response to a customer complaint or request within 24 hours of resolution—$100 per occurrence.

Failure to repair or replace a damaged or missing container within two working days of a request from the City or a customer—$50 per day.

The complete list of liquidated damages can be found in Section 12.6 of the attached amended Agreement.

Flow Control
Under the initial negotiated terms, the City retained flow control rights for solid waste disposal for singlefamily and commercial customers. In addition, the Amended Agreement explicitly designates that the City will retain flow control for single-family residential recycling materials and organic materials, a key provision that the City retains. This allows the City to direct which facilities these materials should be taken to for processing and disposal. Retaining this option could minimize future rate adjustments for single-family residential customers by allowing the City to designate facilities that may have lower processing and disposal costs.

Outreach and Education Requirements
The amended Agreement contains additional education and outreach activities that City staff and Republic Services will conduct. These efforts will be key to the City's compliance with SB 1383 to inform residential and commercial customers of new service levels, container configurations, and recycling requirements. Upon approval of the amended Agreement, City staff and Republic Services will begin notification of the new service collection program. This will include mailings to all residential and commercial customers regarding the new program requirements, updates on both Republic Services and City websites, quarterly newsletters, and informational posts on the City's social media platforms. Republic Services will be required under the amended Agreement to provide continuous education and outreach to all residential and commercial customers annually to ensure SB 1383 compliance.

Moreover, Republic Services will assign a full-time, Brea-dedicated Recycling Coordinator/Sustainability Advisor and one part-time route auditor to assist with citywide education and outreach efforts, participate in community events, conduct waste audits, resolve customer complaints/requests, and perform additional compliance efforts.

Once the amended Agreement is approved, Republic Services will distribute a new cart label to all singlefamily residential locations in the City. Residents will place these new labels on their yard waste containers to identify the expanded accepted materials for collecting all organic waste. This is because Brea's current residential yard waste carts do not meet SB 1383 labeling and color requirements. With the goal of limiting the increase to residential rates, the temporary labels were a compromise, allowing the current carts to continue to be used until they become damaged or worn. Once the cart has reached the end of its useful life, it will be replaced with an SB 1383-compliant cart. Under SB 1383, current carts are allowed to be used until January 1, 2036.

Monitoring and Reporting
The amended Agreement contains provisions for contamination monitoring and reporting requirements to comply with SB 1383 regulations. Republic Services will be required to perform container contamination monitoring, conduct route reviews of containers for prohibited container contaminants, prepare reports, and assist customers in reducing the levels of contamination in their containers.

Upon identification of prohibited container contaminants, Republic Services shall provide the customer with a notice of contamination, either as a courtesy pick-up notice or a non-collection notice. Commercial customers who receive a notice will be informed of the observed presence of prohibited container contaminants, information on the customer's requirement to properly separate materials into the appropriate containers, and information that contamination fees may be assessed following one instance of contaminated materials for commercial customers. Residential customers will be notified via a non-collection notice of container contamination and instructed to properly separate the materials into the appropriate container before servicing them.

Republic Services will also be required to maintain a container contaminant log and fee assessment report, which will be included in monthly activity reports for the City. These reports will be required to maintain compliance with the record-keeping requirements under SB 1383. Furthermore, Republic Services shall prepare and submit the draft CalRecycle Electronic Annual Report (EAR) to the City for review and approval by July 1 of each year. All jurisdictions are required by the State to submit an EAR annually to monitor progress in implementing solid waste and recycling laws.

Food Recovery Assistance
The amended Agreement contains a provision to assist with identification and outreach to Commercial Edible Food Generators (CEFG) as part of food recovery efforts. Under the amended Agreement, Republic Services will provide a $45,000 annual lump sum to help fund an agreement with a food recovery organization to facilitate food recovery efforts. City staff and Republic Services will annually provide education outreach, legislative requirement reminders, and training to all on-site employees for CEFG to ensure SB 1383 compliance. Furthermore, Republic Services will be expected to facilitate the growth of food recovery efforts in Brea for Edible Food Recovery Organizations to ensure a collaborative approach to reducing food waste within the community.

Initial Negotiated Rate Adjustment Indexes
The initial negotiated revised rate adjustment indexes for residential and commercial collection was agreed upon to facilitate a gradual transition from the current Consumer Price Index (CPI) towards utilizing the Garbage and Trash Collection Index (GTCI), which is due to its tailored relevance to the solid waste industry.

The GTCI directly correlates to fluctuations in the costs associated with waste collection, disposal, and recycling processes, providing a more accurate reflection of the waste hauler's operational expenses. This focus allows for better resource allocation and ensures the rate adjustments align more closely with actual service delivery costs rather than general economic indicators. Additionally, utilizing the GTCI can enhance transparency for residential and commercial customers, as they can better understand how their rates are connected to the structural costs of waste management and maintain the high standards the City of Brea has for keeping a clean community.

The rate adjustment formula for residential customers to gradually transition from CPI to GTCI is as follows:

Year 1: 100% CPI
Year 2: 100% CPI
Year 3: 70% CPI and 30% GTCI
Year 4: 60% CPI and 40% GTCI
Year 5: 50% CPI and 50% GTCI
Year 6: 70% GTCI and 30% CPI
Year 7: 100% GTCI
By Year 7, the rate adjustment index will fully transition to the GTCI until the end of the Agreement's term.

Commercial customers will experience a similar rate adjustment formula, transitioning from CPI to GTCI as follows:

Year 1: 100% CPI
Year 2: 70% CPI and 30% GTCI
Year 3: 50% CPI and 50% GTCI
Year 4: 70% GTCI and 30% CPI
Year 5: 100% GTCI
By Year 5, the rate adjustment index will fully transition to the GTCI until the end of the Agreement's term. This structured adjustment strategy aims to prevent sudden spikes in commercial collection rates, allowing businesses to better budget their expenses over time.

Overall, a transitional approach helps mitigate the financial impact on residential and commercial customers, allowing a smooth transition to the agreed-upon adjustment indexes without causing abrupt rate increases.

In addition, the rate adjustment methodology was updated in the amended Agreement. The collection component now includes the hauler's processing costs. The prior agreement rate calculations also included a disposal per ton component, which included transfer fees. This component was simplified under the amended Agreement. It will now be based on the actual percent change in the gate rate at County landfills.

Furthermore, the amended Agreement contains added provisions to guard against any extraordinary rate increases. Republic must formally request any extraordinary rate increases outside of annual rate adjustment indices. In this instance, the request cannot be related to changes in recyclable materials or organic waste processing costs, changes in the market value of recyclable materials, inaccurate estimates by Republic of its proposed cost of operations, or changes in wage rates or employee benefits. In addition, for any extraordinary rate adjustment request, Republic must provide supporting documentation demonstrating how total costs and revenues have changed over the past three years for services provided under the amended Agreement.

The City also retains the right to audit this information concerning any extraordinary rate adjustment request.

City and Community Services
The amended Agreement also contains additional benefits to the community and City. Republic Services will continue to provide solid waste and recycling collection and disposal services for City-sponsored events at no cost. The amended Agreement also annually provides seven 40-yard roll-off containers for the City to utilize for neighborhood or other cleanup events such as Love Brea. Republic will also provide up to 20 tons of compost and/or mulch for community giveaway events for Brea residents to pick up. This material will assist the City in achieving its annual recovered organic target. Additionally, the amended Agreement includes a new annual mobile paper shredding event where residents can take old paperwork to be securely shredded onsite.

Compliance with other State Laws
The amended Agreement will help the City maintain compliance with other State laws regarding solid waste and recycling, including:

AB 939 - Adopted in 1989, AB 939 (the California Integrated Waste Management Act of 1989) provides the statutory framework for solid waste collection and diversion by jurisdictions in the State AB 341 - Adopted in 2012, AB 341 required mandatory commercial recycling and set forth a state diversion goal of 75% by 2020
AB 1826 - Adopted in 2014, AB 1826 required mandatory commercial organics (food and green waste) recycling from businesses and green waste recycling from multi-family units (five or more units) by April 2016. Food scrap recycling programs were also required to be offered to businesses meeting the thresholds of the law
AB 1594 - Eliminated allowing the use of green (yard) waste for alternative daily cover at landfills as a diversion credit in state reporting starting in January 2020 SB 1383 - Effective January 1, 2022, SB 1383 established goals to reduce short-lived climate pollutants (e.g., greenhouse gasses) by 75 percent by 2025 throughout the State. In particular, focusing on methane gasses released from landfills from decomposing organic material. The law also set a 20% recovery threshold for edible food from being disposed in landfills.

Environmental Determination
The City Council finds and determines that approval of the 2025 Franchise Agreement and the Proposed Rate Adjustments is exempt from California Environmental Quality Act ("CEQA") review under statutory and categorical exemptions, including those outlined in California Code of Regulations Title 14, Sections 15061(b) (3), 15273(a), 15301, and 15308. Development and implementation of the amended organic waste collection services under the 2025 Agreement is a requirement of SB 1383 and CalRecycle and is exempt from CEQA because it is an action under a regulatory requirement to assure the protection of the environment and involves procedures for the protection of the environment. Furthermore, the amended organic waste collection services apply to the City's existing volume of generated solid waste, which has no expansion of use. The Proposed Rate Adjustments are necessary to meet the operating expenses of the organic waste collection program. These approvals are additionally exempt under the general rule that CEQA applies only to projects that can potentially cause a significant effect on the environment.

Cost-of-Service-Study
The proposed solid waste rate adjustments are needed to comply with new unfunded State regulations required by SB 1383. They also coincide with the Second Amended and Restated Franchise Agreement being presented for City Council consideration. The proposed rate adjustments will allow for Republic Services to implement a residential curbside organic waste collection program, expand current commercial organic waste collection services, procure additional collection carts and vehicles, implement monitoring and reporting functions, assist with edible food recovery efforts, and incorporate additional service measures to ensure compliance with SB 1383.

NewGen Strategies and Solutions, LLC (NewGen) conducted a cost-of-service study (Study) (Attachment B—Solid Waste Cost of Service Study Memorandum), which examined the City's Sanitation and Street Sweeping Fund (Fund 440). The Study focused on residential solid waste collection services to determine if the proposed rate adjustment will meet the cost-of-service requirements to ensure the continuous delivery of essential sanitation services and implement additional services to comply with SB 1383 regulations.

The Study analyzed historical data for Fund 440 from the past five budget cycles, the current Fiscal Year budget for Fund 440, and Republic Services' estimated cost for residential organic waste collection service to design rates for the City for Fiscal Year (FY) 2024-2025. The Study also removed 15% of City staff salary expenses to account for assistance provided to commercial customers as part of daily City functions.

Under current year projections, the cost to provide residential solid waste collection is $4,061,390. This cost does not include the additional amount to implement the new residential curbside organic waste collection service. The current revenues generated at the current curbside cart rate is $3,857,941. This results in a current under-recovery of costs of $203,449. The solid waste franchise fees collected in FY 23-24 were $1,164,193, included in the City's General Fund revenues. These revenues are utilized for various General Fund activities. They are not intended to administer the solid waste program. As a result, Table 5 shows the amount of solid waste franchise fees collected and the General Fund subsidies to Fund 440. Enterprise funds should strive to be cost-neutral and not be provided subsidies from General Fund revenues.
*Cost projection does not include additional residential organic waste collection costs After reviewing historical and current budget data, NewGen determined that the total revenue requirement to achieve cost recovery for residential solid waste services in Fund 440 for FY 2024-2025 is $4,504,926. According to the Study, most of those costs, which amount to $3,440,310, are related to the contract with Republic Services. The remaining costs are for salaries and benefits of City staff to administer the solid waste program and provide residential billing services. There is an additional cost of $487,740 in FY 2024-2025 for Republic Services to implement the new curbside residential organic waste collection service. This new service is a significant component of the Second Amended and Restated Franchise Agreement. Table 6 outlines the FY 2024-2025 revenue requirement for residential solid waste services.

The Study showed that under the current residential cart rate of $27.80 per month, there is a projected underrecovery of $646,985 for FY 2024-2025. The under-recovery results from the total revenue from the current curbside cart rate of $3,857,941 compared with the future revenue requirement of $4,504,926 to implement the residential organic waste collection service and account for City administrative costs. Table 7 shows the difference between the current curbside cart rate revenues and the future revenues needed to cover service costs.

To achieve cost recovery, including the new curbside residential organic waste collection program, NewGen recommended a $4.79 increase to the current monthly refuse rate.

Based on the consultant's recommended $4.79 increase, $29.45 is comprised of the negotiated contract rate with Republic Services to implement required SB 1383 programs. The additional $3.14 would go to the City to cover costs for administration and oversight of the residential solid waste program and billing services.

After reviewing the study results, City staff conducted additional research to determine if any action could be taken to reduce the consultant-recommended residential rate. Staff determined that the recommended residential rate could be reduced due to current staffing vacancies in the Public Works Department. As a result, City staff's recommended adjusted residential rate is $31.27 per month which is $1.32 less than the consultant's recommended rate. This recommended residential rate is projected to result in an under-recovery of $158,930 for Fund 440, compared to the full cost recovery identified in the Study, by the end of FY 2024-2025.

The City staff proposed rate retains the negotiated contracted rate to allow Republic Services to implement required SB 1383 programs and maintain minimum service levels provided by City staff for the remainder of FY 2024-2025. The proposed adjustments account for all labor, equipment, materials and supplies, insurance, overhead, transfer, and disposal necessary to perform all services. With its consultant, the City has reviewed the overall proposed rate adjustments as part of the Study and determined them to be reasonable.

Furthermore, the proposed rate adjustments will allow the City to implement the necessary services to satisfy the action items identified in its formal CAP and ensure compliance with SB 1383 regulations. If the City Council approves the proposed rate adjustments, the new rates will go into effect on March 1, 2025.

Proposition 218 Public Hearing
Proposition 218 (Prop. 218) requires the City to conduct a public hearing to consider approving a resolution adjusting solid waste service rates for residential, multi-family, and commercial customers. The City must mail the notice at least forty-five (45) days before the public hearing date regarding the proposed rates.

Beginning the week of December 1, 2024, per Prop. 218, the City mailed notifications of the proposed adjusted, solid waste service rates to property owners, commercial customers, tenants, and occupants as part of the bimonthly utility billing (Attachment A—Prop. 218 Public Hearing Notice). Separate Prop. 218 notices were mailed out on December 19, 2024, utilizing the most current addresses from Orange County property tax roll assessments.

The Prop. 218 notice identified the proposed adjusted rates and instructions for filing written protests concerning the proposed rates. As of agenda preparation on January 28, 2025, the City received four written protest objecting to the rate increase. Protest letters from over 50% of the parcels in Brea would be required to prevent the approval of the recommended actions. If no majority protest is received, and the City Council approves the resolution, the rate adjustments would be effective March 1, 2025.

COMMISSION/COMMITTEE RECOMMENDATION
This staff report was reviewed by the Finance Committee at their January 28, 2025, meeting and recommended to proceed to City Council.

SUMMARY/FISCAL IMPACT
Under the Second Amended and Restated Franchise Agreement, the City will be paid a 10 percent franchise fee.

The annual franchise fee is estimated to be $1.2 million for the Agreement's first year. Subsequent franchise fee payments will depend upon the revenues collected after applying the rate adjustment indexes and the number of active solid waste accounts. The collected franchise fees are deposited into the General Fund (Fund 110).

City staff's recommended residential curbside monthly cart rate of $31.27 is estimated to generate $4,345,996 in revenue for Fund 440. Based on the staff-recommended residential rate, there is a projected under-recovery of $158,930 by the end of FY 2024-2025. After the conclusion of FY 2024-2025, additional rate adjustments may be needed to achieve full cost recovery, as identified in the Cost-of-Service Study for Fund 440, which can be further analyzed as part of future budgeting processes.

RESPECTFULLY SUBMITTED
Kristin Griffith, Interim City Manager
Prepared by: Francesca Vivanti, Management Analyst I
Matthew Cuevas, Senior Management Analyst
Concurrence: Michael Ho, PE, Public Works Director
Attachments
Attachment A - Proposition 218 Notices of Public Hearing.pdf Attachment B - Solid Waste Cost of Service Study Memorandum.pdf Attachment C - Resolution Approving 2nd Amended Solid Waste Franchise Agreement and Rate Adjustments.pdf Attachment D - Revised Draft Second Amended and Restated Franchise Agreement with Republic Waste Services of Southern California LLC.pdf Attachment E - Revised Draft Second Amended and Restated Franchise Agreement Exhibits.pdf Service rates are for the operation and administration of the solid waste disposal and recycling services and programs implemented by the franchisee as required by State law, the Brea Municipal Code, and the franchise agreement.

Such services include solid waste containers, solid waste pick-up, a set number of bulky item pickups per year, e-waste disposal, compost giveaways, and other community clean up events.

PROPOSED ADJUSTMENTS TO SOLID

WASTE & RECYCLING SERVICE RATES
Additional information on services provided by Republic Services can be found at www.recyclebrea.net
WHAT IS SENATE BILL 1383 ?
Short-lived Climate Pollutants (SLCP): Organic Waste Reductions Act was signed into law in 2016 and established methane emissions targets and edible food recovery goals.

For more information on SB 1383, visit calrecycle.ca.gov/organics/slcp/

PRSRT STD
U.S. POSTAGE
PAID

ANAHEIM, CA
PERMIT NO. 8056
City of Brea
1 Civic Center Circle
Brea, California 92821-5732
www.cityofbrea.gov

ATTACHMENT A

CITY OF BREA NOTICE OF PUBLIC HEARING FOR

PROPOSED ADJUSTMENTS TO SOLID WASTE & RECYCLING SERVICE RATES NOTICE IS HEREBY GIVEN that the Brea City Council will hold a public hearing on proposed adjustments to solid waste and recycling service rates on Tuesday, February 4, 2025 at 7:00 PM, or as soon as the matter may be heard, at 1 Civic Center Circle, Brea, CA 92821 in City Council Chambers. If approved by the City Council in the absence of a majority protest (see below), the initial increases will go into effect on March 1, 2025.

WHY HAVE I RECEIVED THIS NOTICE?
This notice is regarding a public hearing to consider proposed adjustments to solid waste and recycling service rates for all Brea solid waste customers.

The public hearing will be conducted in accordance with Proposition 218 (1996), specifically California Constitution Article XIII D, Section 6. This notice is being sent to all property owners of record whose parcels receive solid waste and recycling services from Brea’s solid waste hauler franchisee and to tenants who are directly responsible for payment of the solid waste and recycling service rates.

WHY ARE RATE INCREASES NECESSARY?
All California cities, including Brea, face the most stringent solid waste legislation in history under Senate Bill 1383 (2016) (“SB 1383”). SB 1383 mandates the State of California to reduce organic waste disposal (including green waste and food waste) 50% by January 1, 2020, and 75% by January 1, 2025.

SB 1383 also requires the State to recover 20% of edible food by January 1, 2025. As a result, green waste and food waste can no longer be disposed of in a landfill and must be recycled. The SB 1383 organic recycling mandates, along with current economic conditions, including equipment supply chain interruptions and labor shortages, are significantly impacting the solid waste industry. For the City of Brea to remain in compliance with State law and avoid being fined by the State, expanded solid waste and recycling services are necessary, none of which are funded by the State. Therefore, these expanded services and other cost increases must be funded by adjusting the solid waste and recycling service rates.

PROPOSED SOLID WASTE & RECYCLING SERVICE RATES
The City Council will consider the proposed adjustments to the solid waste and recycling service rates in connection with entering into a restated and amended Franchise Agreement with the City’s solid waste hauler franchisee, Republic Waste Services of Southern California LLC, which does business as Brea Disposal. The new Franchise Agreement will ensure that the City continues to be in compliance with SB 1383 and other unfunded State mandates for solid waste and recycling. The proposed rates represent the maximum amount that customers can be charged pursuant to the new Franchise Agreement for all labor, equipment, materials and supplies, taxes, insurance, bonds, letters of credit, overhead, disposal, transfer, profit, and all other things necessary to perform solid waste and recycling services.

Under the new Franchise Agreement, there are two customer classes: (i) single-family residential (premises with less than five dwelling units) and (ii) commercial, which includes multi-family and industrial. The proposed single-family residential monthly rate is a flat rate comprised of a City Utility Billing Component, Service Component, and Disposal Component, and includes one pick-up per week of a trash cart, recycling cart, and organic waste cart.

The proposed commercial monthly rates are comprised of a Service Component and a Disposal Component for each type of service (trash, recycling and organic waste), and for each type of service is based on: (i) container size (in gallons or cubic yards); (ii) type of container (e.g., cart or bin); and (iii) frequency of pick-ups per week. Absent a waiver, commercial customers are required to have trash, organic waste and recycling service. For all customers, extra services (e.g., roll-out services) are available at additional cost. A partial list of the proposed rates are set forth in the attached Exhibit A.

A full list of the proposed rates can be viewed on the City’s website at www.cityofbrea.net/recyclebrea.

If approved by the City Council, the initial rate adjustments will go into effect on March 1, 2025. In addition, without the City Council holding additional public hearings, the rates may be adjusted on July 1, 2025, July 1, 2026, July 1, 2027, and July 1, 2028 to account for inflation and changes in the gate rate at the County landfill. The method for calculating the annual adjustments can be viewed on the City’s website at cityofbrea.net/recyclebrea.

HOW CAN I PARTICIPATE? WHAT IS A MAJORITY PROTEST?
At the public hearing, the City Council will hear and consider all objections or protests to the proposed adjustments to the solid waste and recycling service rates. Any property owner of record whose parcel receives solid waste and recycling services from Republic and any property tenant that is directly responsible for payment of solid waste and recycling service rates (each, a "rate payer") may submit a written protest against the proposed adjustments to the solid waste and recycling service rates. Written protests may be personally delivered to the City Clerk during the public hearing.

Written protests may also be mailed to the City of Brea, Attention: City Clerk, 1 Civic Center Circle, Brea, CA 92821 or delivered in-person to City Hall, 1 Civic Center Circle, Brea, CA 92821. Protests that are mailed or delivered to City Hall must be received by the City Clerk by 7:00 PM on February 4, 2025.

To be counted, a written protest must: (1) identify the parcel of property subject to the proposed adjustments to solid waste and recycling service rates, (2) identify the rate payer, and (3) include the signature of the rate payer. Emailed protests will not be counted in determining the existence of a majority protest. A majority protest will exist if, at the end of the public hearing, there are written protests submitted by a majority of the rate payers subject to the proposed adjustments to solid waste and recycling service rates. No more than one written protest per parcel of property will be counted in calculating a majority protest. The City Council cannot adopt the proposed adjustments to the solid waste and recycling service rates if a majority protest exists.

WHERE CAN I FIND MORE INFORMATION?
For more information regarding the State’s SB 1383 unfunded mandate please visit CalRecycle’s website at calrecycle.ca.gov/organics/slcp. You may also contact the Brea Public Works Department at (714) 990-7691 if you have questions about this notice or your solid waste and recycling service rates.

ATTACHMENT A
SINGLE FAMILY RESIDENTIAL SERVICES* Current Rate 1City
Utility Billing
1Collection
Component (85%)
1Disposal
Component (15%)
1Proposed
Adjusted Rate
*Residential premises with 4 or less dwelling units
MONTHLY RESIDENTIAL RATE $27.80 $3.14 $25.03 $4.42 $32.59 (Includes 3 carts: 1 Trash, 1 Recycle, 1 Organic Waste 1x/week PICK-UP)

ADDITIONAL RESIDENTIAL
TRASH CONTAINER $13.15 $12.95 $2.28 $15.23
ORGANIC WASTE CONTAINER $6.04 $5.95 $1.05 $7.00
RECYCLE CONTAINER $0.00 $0.00 $0.00 $0.00
MOBILE HOME RESIDENTIAL RATE $27.80 $3.14 $25.03 $4.42 $32.59 TEMPORARY 3 YARD RES. BIN $105.89 $104.26 $18.40 $122.66 3 DAYS (Del - Fill - PICK-UP & Disposal)

RESIDENTIAL ROLL-OUT SERVICES
(Service is for customers that want back door, garage, walk in service) $14.01 $13.79 $2.43 $16.22 RESIDENTIAL EXTRA DUMP - ALL 3 CONTAINERS $29.74 $29.28 $5.17 $34.45 RESIDENTIAL EXCHANGE OF ALL 3 CONTAINERS $45.98 $45.27 $7.99 $53.26 RESIDENTIAL CONTAINER REPLACEMENT - MISUSE (Each) $81.36 $80.11 $14.14 $94.25

RESIDENTIAL BULKY-ITEM COLLECTION
Additional Pick-ups Over 3x Pick-up/Year $57.55 $56.67 $10.00 $66.67 Charge for Each Item Over 20 per Collection $8.22 $8.09 $1.43 $9.52 Additional Fee Required for Gas Recovery $78.12 $76.92 $13.57 $90.49 RESIDENTIAL KITCHEN PAIL FOR PURCHASE (unbranded) New Rate $12.15 COMMERCIAL/MULTI-FAMILY/INDUSTRIAL BIN SERVICE Current Rate 2Collection Component (85%)
2Disposal
Component (15%)
2Proposed
Adjusted Rate
(Absent a waiver, trash, recycle and organic waste service is required.

Typical service includes 1 trash, 1 recycle, and 1 organic waste container) COMMERCIAL BARREL RATE (96 GALLON TRASH) $41.26 $37.26 $6.58 $43.84

MONTHLY COMMERCIAL TRASH BIN RATES

1.5 YARD TRASH BIN 1x/week PICK-UP $111.93 $101.09 $17.84 $118.93

1.5 YARD TRASH BIN 2x/week PICK-UP $194.06 $175.26 $30.93 $206.19

1.5 YARD TRASH BIN 3x/week PICK-UP $276.19 $249.43 $44.02 $293.45

1.5 YARD TRASH BIN 4x/week PICK-UP $358.32 $323.61 $57.11 $380.72

1.5 YARD TRASH BIN 5x/week PICK-UP $440.45 $397.78 $70.20 $467.98

1.5 YARD MANURE BIN 1x/week PICK-UP $123.43 $111.47 $19.67 $131.14

1.5 YARD MANURE BIN 2x/week PICK-UP $217.06 $196.03 $34.59 $230.62

1.5 YARD MANURE BIN 3x/week PICK-UP $310.69 $280.59 $49.52 $330.11

1.5 YARD MANURE BIN 4x/week PICK-UP $404.32 $365.15 $64.44 $429.59

1.5 YARD MANURE BIN 5x/week PICK-UP $497.95 $449.71 $79.36 $529.07 2 YARD TRASH BIN 1x/week PICK-UP New Rate $139.04 $24.54 $163.58 2 YARD TRASH BIN 2x/week PICK-UP New Rate $232.28 $40.99 $273.27 2 YARD TRASH BIN 3x/week PICK-UP New Rate $325.52 $57.44 $382.96 2 YARD TRASH BIN 4x/week PICK-UP New Rate $418.76 $73.90 $492.66 2 YARD TRASH BIN 5x/week PICK-UP New Rate $512.00 $90.35 $602.35 3 YARD TRASH BIN 1x/week PICK-UP $181.12 $163.57 $28.87 $192.44 3 YARD TRASH BIN 2x/week PICK-UP $302.58 $273.27 $48.22 $321.49 3 YARD TRASH BIN 3x/week PICK-UP $424.04 $382.96 $67.58 $450.54 3 YARD TRASH BIN 4x/week PICK-UP $545.50 $492.65 $86.94 $579.59 3 YARD TRASH BIN 5x/week PICK-UP $666.96 $602.35 $106.30 $708.65 3 YARD MANURE BIN 1x/week PICK-UP $195.79 $176.82 $31.20 $208.02 3 YARD MANURE BIN 2x/week PICK-UP $331.92 $299.77 $52.90 $352.67 3 YARD MANURE BIN 3x/week PICK-UP $468.05 $422.71 $74.60 $497.31 3 YARD MANURE BIN 4x/week PICK-UP $604.18 $545.65 $96.29 $641.94 3 YARD MANURE BIN 5x/week PICK-UP $740.31 $668.59 $117.99 $786.58 3 YARD TEMP CONSTRUCTION BIN 1x/week PICK-UP $232.94 $210.37 $37.12 $247.49 3 YARD TEMP CONSTRUCTION BIN 2x/week PICK-UP $360.11 $325.22 $57.39 $382.61 3 YARD TEMP CONSTRUCTION BIN 3x/week PICK-UP $487.28 $440.07 $77.66 $517.73 3 YARD TEMP CONSTRUCTION BIN 4x/week PICK-UP $614.45 $554.93 $97.93 $652.86 3 YARD TEMP CONSTRUCTION BIN 5x/week PICK-UP $741.62 $669.78 $118.20 $787.98 3 YARD COMPACTED BIN 1x/week PICK-UP $266.27 $240.48 $42.44 $282.92 3 YARD COMPACTED BIN 2x/week PICK-UP $481.71 $435.04 $76.77 $511.81 3 YARD COMPACTED BIN 3x/week PICK-UP $697.15 $629.61 $111.11 $740.72 3 YARD COMPACTED BIN 4x/week PICK-UP $912.59 $824.18 $145.44 $969.62 3 YARD COMPACTED BIN 5x/week PICK-UP $1,128.03 $1,018.75 $179.78 $1,198.53 4 YARD TRASH BIN 1x/week PICK-UP New Rate $188.11 $33.20 $221.31 4 YARD TRASH BIN 2x/week PICK-UP New Rate $314.26 $55.46 $369.72 4 YARD TRASH BIN 3x/week PICK-UP New Rate $440.41 $77.72 $518.13 4 YARD TRASH BIN 4x/week PICK-UP New Rate $566.55 $99.98 $666.53 4 YARD TRASH BIN 5x/week PICK-UP New Rate $692.70 $122.24 $814.94 6 YARD TRASH BIN 1x/week PICK-UP New Rate $327.15 $57.73 $384.88 6 YARD TRASH BIN 2x/week PICK-UP New Rate $546.54 $96.45 $642.99 6 YARD TRASH BIN 3x/week PICK-UP New Rate $765.92 $135.16 $901.08 1 City Utility Billing, Collection Component and Disposal Component make up the Proposed Adjusted Rate for Single Family Residential. 2 Collection Component and Disposal Component make up the Proposed Adjusted Rate for Commercial/Multi-Family/Industrial.

FULL LIST OF PROPOSED RATES AVAILABLE ON CITY WEBSITE: www.cityofbrea.net/recyclebrea CITY OF BREA PROPOSED SOLID WASTE & RECYCLING SERVICE RATES EFFECTIVE MARCH 1, 2025 (Rates may escalate on July 1, 2025; July 1, 2026; July 1, 2027; and July 1, 2028)

EXHIBIT A

ATTACHMENT A
6 YARD TRASH BIN 4x/week PICK-UP New Rate $985.31 $173.88 $1,159.19 6 YARD TRASH BIN 5x/week PICK-UP New Rate $1,204.70 $212.59 $1,417.29 8 YARD TRASH BIN 1x/week PICK-UP New Rate $376.22 $66.39 $442.61 8 YARD TRASH BIN 2x/week PICK-UP New Rate $628.52 $110.91 $739.43 8 YARD TRASH BIN 3x/week PICK-UP New Rate $880.81 $155.44 $1,036.25 8 YARD TRASH BIN 4x/week PICK-UP New Rate $1,133.11 $199.96 $1,333.07 8 YARD TRASH BIN 5x/week PICK-UP New Rate $1,385.40 $244.48 $1,629.88 COMMERCIAL/MULTI-FAMILY/INDUSTRIAL RECYCLE RATES Current Rate 2Collection Component (85%)
2Disposal
Component (15%)
2Proposed
Adjusted Rate
65 GALLON RECYCLE CART 1x/week PICK-UP New Rate $51.00 $9.00 $60.00 96 GALLON RECYCLE CART 1x/week PICK-UP New Rate $51.00 $9.00 $60.00 2 YARD RECYCLE BIN 1x/week PICK-UP New Rate $95.14 $16.79 $111.93 Additional per trip PICK-UP New Rate $95.14 $16.79 $111.93 3 YARD RECYCLE BIN 1x/week PICK-UP $152.81 $136.38 $24.07 $160.45 Additional per trip PICK-UP $152.81 $136.38 $24.07 $160.45 4 YARD RECYCLE BIN 1x/week PICK-UP New Rate $159.89 $28.22 $188.11 3 YARD SPLIT BIN (no additional lock fee or installation) New Rate $206.93 $36.52 $243.45 COMMERCIAL RECYCLE BIN CONTAMINATION FEE per occurrence New Rate $98.85 $17.44 $116.29 COMMERCIAL RECYCLE CART CONTAMINATION FEE per occurrence New Rate $49.44 $8.72 $58.16 COMMERCIAL/MULTI-FAMILY/INDUSTRIAL ORGANIC WASTE RATES Current Rate 2Collection Component (85%)
2Disposal
Component (15%)
2Proposed
Adjusted Rate
35 GALLON CART 1x/week PICK-UP $41.26 $35.07 $6.19 $41.26 35 GALLON CART 2x/week PICK-UP $82.52 $70.14 $12.38 $82.52 35 GALLON CART 3x/week PICK-UP $123.78 $105.21 $18.57 $123.78 65 GALLON CART 1x/week PICK-UP $65.19 $55.41 $9.78 $65.19 65 GALLON CART 2x/week PICK-UP $130.37 $110.81 $19.56 $130.37 65 GALLON CART 3x/week PICK-UP $195.56 $166.23 $29.33 $195.56 2 YARD BIN 1x/week PICK-UP $348.61 $296.32 $52.29 $348.61 2 YARD BIN 2x/week PICK-UP $697.21 $592.63 $104.58 $697.21 2 YARD BIN 3x/week PICK-UP $1,045.82 $888.95 $156.87 $1,045.82 ORGANIC BIN NON-SCHEDULE ADDITIONAL PICK-UPS New Rate $296.32 $52.29 $348.61 ORGANIC CART NON-SCHEDULE ADDITIONAL PICK-UPS New Rate $35.07 $6.19 $41.26 ORGANIC BIN CONTAMINATION FEE per occurrence $116.29 $98.85 $17.44 $116.29 ORGANIC CART CONTAMINATION FEE per occurrence $58.16 $49.44 $8.72 $58.16 COMMERCIAL/MULTI-FAMILY/INDUSTRIAL SPECIAL SERVICES Current Rate 2Collection Component (85%)
2Disposal
Component (15%)
2Proposed
Adjusted Rate
Pull out service (applicable when container must be moved more than 25ft) $71.94 $64.97 $11.47 $76.44 Lock latch (For any bin with lockbar other than split bins) $2.71 $2.45 $0.43 $2.88 Redeliver bin (due to non-payment) $101.78 $91.92 $16.22 $108.14 Lock latch bin one-time installation fee (For all lock latch except split bins) $120.81 $109.10 $19.25 $128.35

NON-SCHEDULE ADDITIONAL PICK-UPS
1st BIN PICK-UP (1.5 & 3 YARD BINS) $84.79 $76.58 $13.51 $90.09 BIN OVERAGE "OVER THE TOP" - Each Occurrence $47.31 $55.25 $9.75 $65.00 COMMERCIAL CONTAINER STEAM CLEANING (container exchanged) $135.14 $122.05 $21.54 $143.59

COMMERCIAL BULKY-ITEM COLLECTION
Bulky item pickups (no limit); max 20 items per collection $61.06 $55.14 $9.73 $64.87 Charge for Each Item Over 20 per collection $8.12 $7.33 $1.29 $8.62 Additional Fee Required for Gas Recovery $78.12 $70.55 $12.45 $83.00 INDUSTRIAL SPECIAL SERVICES Current Rate 2Collection
Component (85%)
2Disposal
Component (15%)
2Proposed
Adjusted Rate
PERMANENT 30 YARD ROLL-OFF - Min. 4 PICK-UPS per/Month $2,646.69 $2,390.29 $421.82 $2,812.11 ADDITIONAL PICK-UP - PERM 30 YARD ROLL-OFF $661.67 $597.57 $105.45 $703.02 PERMANENT 15 YARD DEMO BOX - Min. 4 PICK-UPS per/Month $2,819.48 $2,546.34 $449.35 $2,995.69 ADDITIONAL PICK-UP - PERM 15 YARD DEMO $704.87 $636.59 $112.34 $748.93 PERMANENT 40 YARD PACKER - Each PICK-UP $825.04 $745.11 $131.49 $876.60 TEMPORARY 30 YARD ROLL-OFF BOX $663.40 $599.13 $105.73 $704.86 TEMPORARY 30 YARD ROLL-OFF BOX - Yardwaste $625.25 $564.68 $99.65 $664.33 TEMPORARY 15 YARD DEMO BOX $766.18 $691.96 $122.11 $814.07 THREE DAYS - 1 EMPTY

CONTAINER MONTHLY RENTALS
THREE (3) YARD BIN $67.58 $61.03 $10.77 $71.80
TILT HOPPER $52.72 $47.61 $8.40 $56.01
STORAGE CONTAINER $106.76 $96.42 $17.01 $113.43
PACKER UNIT - "TURN-A-ROUND" REQUIRED $13.76 $12.43 $2.19 $14.62 (Surcharge per Pull)
SATURDAY SERVICE - PER LOAD $40.74 $36.79 $6.49 $43.28
BREA OLINDA SCHOOL DISTRICT Current Rate 2Collection
Component (85%)
2Disposal
Component (15%)
2Proposed
Adjusted Rate

MONTHLY COMMERCIAL RATES
3 YARD BIN 1x/week PICK-UP $117.46 $106.08 $18.72 $124.80 3 YARD BIN - ADDITIONAL PICK-UP $85.56 $77.27 $13.64 $90.91 1 City Utility Billing, Collection Component and Disposal Component make up the Proposed Adjusted Rate for Single Family Residential. 2 Collection Component and Disposal Component make up the Proposed Adjusted Rate for Commercial/Multi-Family/Industrial.

FULL LIST OF PROPOSED RATES AVAILABLE ON CITY WEBSITE: www.cityofbrea.net/recyclebrea (Rates may escalate on July 1, 2025; July 1, 2026; July 1, 2027; and July 1, 2028)

EXHIBIT A
CITY OF BREA PROPOSED SOLID WASTE & RECYCLING SERVICE RATES EFFECTIVE MARCH 1, 2025

ATTACHMENT A
Service rates are for the operation and administration of the solid waste disposal and recycling services and programs implemented by the franchisee as required by State law, the Brea Municipal Code, and the franchise agreement.

Such services include solid waste containers, solid waste pick-up, a set number of bulky item pickups per year, e-waste disposal, compost giveaways, and other community clean up events.

Additional information on services provided by Republic Services can be found at www.recyclebrea.net

ARE WE THE ONLY CITY EXPERIENCING A RATE
ADJUSTMENT ?
No. The costs associated with the proposed rate increase will affect most, if not all, jurisdictions in Orange County and the State. Costs associated with inflation, Senate Bill 1383 (SB 1383), and recycling markets will impact solid waste rates all across California.

WHAT IS SENATE BILL 1383 ?
Short-lived Climate Pollutants (SLCP): Organic Waste
Reductions Act was signed into law in 2016. The
law established statewide targets to achieve a 50%
reduction in the level of organic waste disposed
in landfills by 2020 and a 75% reduction by 2025.

Additionally, the law sets a statewide target of a 20%
reduction in the disposal of edible food, and for this
food to be recovered for human consumption.

For more information on SB 1383, please visit the
CalRecycle website at calrecycle.ca.gov/organics/slcp/

PROPOSED ADJUSTMENTS

TO SOLID WASTE & RECYCLING

SERVICE RATES