October 13, 2026
Agenda Item No. 2
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Zachary Gentry, Municipal Operations Director - 949-644-3055, [email protected] PREPARED BY:
John Nelson, Acting Senior Management Analyst - 949-644-3197, [email protected] TITLE:
Resolution No. 2026-87: Resolution of Intention to Conduct a Public Hearing to Consider Granting Non-Exclusive Commercial Solid Waste and Divertible Materials Handling Franchises to OC Construction & Clean Up Corp.
ABSTRACT:
As required by Article XIII of the City Charter, staff requests City Council approval of a resolution declaring its intention to conduct a public hearing on October 27, 2026, to consider granting non-exclusive commercial solid waste and divertible materials handling franchises to OC Construction & Clean Up Corp.
RECOMMENDATIONS:
Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and Adopt Resolution No. 2026-87, A Resolution of the City Council of the City of Newport Beach, California, Declaring Its Intention to Conduct a Public Hearing to Consider Granting Non-Exclusive Commercial Solid Waste and Divertible Materials Handling Franchises.
DISCUSSION:
The City of Newport Beach (City) utilizes a non-exclusive solid waste franchise system for the collection of commercial solid waste throughout the city. This waste comes from multi-family residential complexes, as well as retail, commercial, recreational and industrial sources. The collection of construction and demolition waste is also regulated in this system.
Article XIII of the City Charter requires City Council approval of a resolution of intention to set the date and time of the public hearing and to name the applicants requesting Non-Exclusive Solid Waste Franchises.
The resolution must:
establish the date, time and location where interested persons may appear and be heard before the City Council, be published by the City Clerk at least once in the official newspaper within 15 days of passage, and at least 10 days prior to the hearing date.
Staff reviewed the application submitted by OC Construction & Clean Up Corp. and requests City Council approval of the resolution of intention to conduct the public hearing at the October 27, 2026, City Council meeting to consider granting a Non-Exclusive Commercial Solid Waste Franchise to the aforementioned applicant.
FISCAL IMPACT:
Revenue is generated as part of this agreement. Per Chapter 12.63 of Newport Beach Municipal Code, franchisees are to pay to the City a fixed percentage of 16% of quarterly gross receipts deriving from solid waste handling services within the city. Per the franchise agreement, 10.5% shall be used in line with Public Resources Code Section 41901, with a portion attributable to implementation and maintenance of the City’s Source Reduction and Recycling Element (SRRE). The remaining 5.5.% is paid into the Environmental Liability Fund 160.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A - Resolution
Attachment B - Sample 2020 Non-Exclusive Commercial Solid Waste Franchise Agreement
Resolution No. 2026-87: Resolution of Intention to Conduct a Public Hearing to Consider Granting Non-Exclusive Commercial Solid Waste and Divertible Materials Handling Franchises to OC Construction & Clean Up Corp.
October 13, 2026
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