RESOLUTION NO. ___________________ (N.C.S.)
A RESOLUTION REGARDING ADJUSTMENTS TO REPUBLIC SERVICES OF SALINAS’S SCHEDULE OF CONTRACTOR SERVICE FEES AND APPROVED RATES FOR COMMERCIAL AND RESIDENTIAL CUSTOMERS EFFECTIVE JANUARY 1, 2025, AND ALSO REGARDING RESOLUTION OF PERFORMANCE ISSUES WHEREAS, Section 14-01.10 of the City of Salinas Code, and California Public Resources Code, Section 40059 allows the City to enter into a contract for collection, removal, and disposal of all garbage, wet garbage, rubbish or commercial rubbish; and WHEREAS, the City of Salinas has a Collection Services Agreement with Republic Services of Salinas to provide solid waste, recycling, and green waste collection services for the City; and WHEREAS, per the Agreement, Article 4, Contractor Compensation and Customer Rates, Republic Services may adjustment their rates on an annual basis; and WHEREAS, City of Salinas and R3 Consulting Group, Inc. staff have reviewed the proposed adjustments to their service fees and the Proposed New Exhibit 1 – “Schedule of Approved Rates,” and accurately reflect those formulas prescribed by the Agreement and found them to be reasonable and accurate; and WHEREAS, if found to be reasonable and accurate, Republic Services will implement the proposed Schedule of Approved Rates effective January 1, 2025; and WHEREAS, R3 Consulting Group, Inc. has conducted a performance review of Republic Services which focused on contract compliance; and WHEREAS, the performance review identified areas of non-compliance including overweight vehicle, non-compliant vehicles, and staffing; and WHEREAS, Republic has addressed these issues over the last six months and in lieu of paying administrative charges for such non-compliance, is offering to waive the first six months of rate increases to cover the administrative charges; and WHEREAS, Republic Services has sent a letter to the City Manager outlining terms for the waiving of the first six (6) months of the 2024-25 rates in lieu of administrative charges.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby finds and determines that the above recitals and accompanying staff report are true and correct and have served as the basis, in part, for the actions of the City Council set forth below; and BE IT FURTHER RESOLVED that the proposed New Exhibit 1- “Schedule of Approved Rates,” attached hereto, is found and determined to be consistent and an accurate interpretation of the Franchise Agreement, and to be reasonable and accurate; BE IT FURTHER RESOLVED that the City Manager is authorized to sign the attached letter agreeing to the terms of a proposed satisfaction of performance issues in lieu of administrative charges.
PASSED AND APPROVED this 3rd day of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
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Kimbley Craig, Mayor
ATTEST:
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Patricia M. Barajas, City Clerk