STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 22, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Christie Crowl, City Attorney
SUBJECT: Resolution Ratifying Prior Action to Approve Restated Solid Waste Franchise Agreement between City of Hercules and Richmond Sanitary Service, Inc. dba Republic Services and Directing Staff to Execute Agreement RECOMMENDATION:
Staff recommends that the City Council adopt a Resolution of the City Council of the City of Hercules Ratifying the Council’s Prior Approval of an Agreement with Richmond Sanitary Services, Inc. dba Republic Services for Solid Waste Collection Services and Direction to Staff Execute the Agreement BACKGROUND:
The City of Hercules holds a Franchise Agreement with Richmond Sanitary Service, Inc. dba Republic Services (Republic), which expires on June 30, 2025. The agreement currently in place is an amended version of the same agreement that was executed in 1986. The City Council authorized staff to commence negotiations on September 12, 2023, for an extension of the term of the agreement and a restatement of the agreement.
At its March 25, 2025 regular meeting, the City Council considered a draft Restated Franchise Agreement (the “Restated Franchise Agreement”). The City Council adopted a resolution that: (1) authorized the City Manager to execute the Restated Agreement and directed staff to set a Proposition 218 hearing, (2) accepted the Franchise Fee Study prepared to support the Restated Agreement, and (3) authorized the City Manager to execute a side letter agreement regarding the use of certain City rate stabilization funds for one year. The staff report from the March 25, 2025 meeting is attached hereto for reference.
ANALYSIS:
The resolution adopted by the Council on March 25, 2025 included direction to staff to set a Proposition 218 hearing for a future meeting. Proposition 218 was an initiative adopted by the California voters in 1996 which was intended to ensure that taxes and charges on property owners would be subject to voter approval. Proposition 218 thus limits the ability of local governments to impose or increase fees or charges for property-related services without property owner consent, including a noticed public hearing.
Fees for garbage collection may be considered a property-related service depending on how local governments adopt and impose them. In Hercules, such services are voluntary and are provided by a private entity. Republic Services imposes and collects the fees. For this reason, Hercules does not need to undergo the Proposition 218 hearing process. At this time, staff recommends ratifying the prior action taken by the Council on March 25, 2025 but confirming that staff does not need to set a Proposition 218 hearing.
FISCAL IMPACT:
None for the proposed action. Please see the March 25, 2025 staff report for the fiscal impact analysis of adoption of the Restated Franchise Agreement.
ATTACHMENTS:
March 25, 2025 staff report
Resolution Ratifying Prior Approval of the Restated Solid Waste Franchise Agreement between the City of Hercules and Richmond Sanitary Service, Inc. dba Republic Services