Attachment 1Attachment 1RESOLUTION NO. 24-167
Attachment 1
Attachment 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING THE COST-OF-SERVICE STUDY, APPROVING AND SETTING SOLID WASTE COLLECTION RATES, APPROVING AND AWARDING A SECOND AMENDED AND RESTATED AGREEMENT TO CR&R INCORPORATED FOR SOLID WASTE HANDLING SERVICES, AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND FINDING THE CONTRACT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR 15301), SECTION 15301 OF THE STATE CEQA GUIDELINES WHEREAS, City and CR&R Incorporated entered into that certain Amended and Restated Agreement for Solid Waste Handling Services (the "2011 Agreement”) dated January 1, 2011; and WHEREAS, City and CR&R entered into that certain Amendment No. 1 to the 2011 Agreement on June 13, 2016 (“First Amendment”); and WHEREAS, City and CR&R entered into that certain Amendment No. 2 to 2011 Agreement on November 9, 2021 (“Second Amendment”); and WHEREAS, on September 26, 2022, City issued to CR&R a Notice of Termination of the automatic renewal of the 2011 Agreement, as amended, which resulted in an expiration date of June 30, 2024; and WHEREAS, on July 1, 2024, City and CR&R entered into that certain Amendment No. 3 to the 2011 Agreement (“Third Amendment”), which extended the term through October 31, 2024; and WHEREAS, on October 1, 2024, City and CR&R entered into that certain Amendment No. 4 to the 2011 Agreement (“Fourth Amendment”), which extended the term through December 31, 2024; and WHEREAS, the 2011 Agreement as amended by the First, Second, Third and Fourth Amendments are referred to hereafter as the “Franchise Agreement”; and WHEREAS, the City must adjust services to comply with recent California law including Senate Bill 1383 which imposes significant obligations with regard to the collection and processing of organic materials; and WHEREAS, in June of 2022, MSW Consultants prepared a report titled “Recommendation Regarding the City’s Solid Waste and Franchise Agreement with CR&R”, which provided information related to trends within the industry, information about the market, a list of companies providing solid waste and recycling services within Orange County, an overview of the franchise agreements, and recommendations for the City, including a recommendation to negotiate with CR&R for a revised agreement; and WHEREAS, the City has been in the process of negotiating a revision of its Franchise Agreement with CR&R to comply with California law and to modernize and standardize its Franchise Agreement and collection rates; and WHEREAS, in October 2024, R3 Consulting completed a Program Fee Cost-of-Service Study in connection with setting new rates; and WHEREAS, the City and CR&R desire to amend their Agreement to comply with SB 1383 and other applicable state law; and WHEREAS, CR&R will provide services to implement the SB 1383 Regulations; and WHEREAS, the City has determined that it is necessary to impose new, increased or modified rates for solid waste service charges (collectively herein, the “Charges”); and WHEREAS, the rate structure for solid waste, recycling and organics collection includes three customer classes – residential, multi-family, and commercial, based on the container size, type of service, and frequency of collection; and WHEREAS, the revenues derived from the Charges will not exceed the funds required to provide the services for which the Charges are imposed, and will be used exclusively for the provision of the City’s solid waste services; and WHEREAS, the Charges are equitable to all customer classes; and WHEREAS, the amount of the Charges will not exceed the proportional cost of the service attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the Charges will not be imposed on a parcel unless the service for which such Charge is imposed, is actually used by, or immediately available to, the owner of the parcel; and WHEREAS, Article XIII D, Section 6 of the California Constitution (“Article XIII D”) requires that prior to imposing any increase to the Charges, the City shall provide written notice (the “Notice”) by mail of the new or increased Charges to the record owner of each parcel upon which the Charges are proposed for imposition and any tenant directly liable for payment of the Charges, the amount of the Charges proposed to be imposed on each parcel, the basis upon which the Charges were calculated, the reason for the Charges, and the date time and location of a public hearing (the “Hearing”) on the proposed Charges; and WHEREAS, pursuant to Article XIII D, such Notice is required to be provided to the affected property owners and any tenant directly liable for the payment of the Charges not less than 45 days prior to the Hearing on the proposed Charges, and the City provided such Notice in compliance with Article XIII D; and WHEREAS, the Hearing was noticed for November 19, 2024; and WHEREAS, at the Hearing, the City Council heard and considered all oral testimony, written materials, and written protests received concerning the establishment and imposition of the proposed rate increases for the Charges, and at the close of the Hearing, the City did not receive written protests against the establishment and imposition of the proposed rate increases for the Charges from a majority of the affected parcel owners subject to Charges; and WHEREAS, the City Council now desires to establish and impose the proposed Charges as set forth in Exhibit A hereto, which is fully incorporated herein by this reference.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
Section 1. That the above recitals are true and correct and incorporated herein fully as findings.
Section 2. That this project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, and there is no reasonable possibility that the activity will have a significant direct or foreseeable indirect effect on the environment.
Section 3. That the October 2024 Program Fee Cost-of-Service Study completed by R3 Consulting Group, Inc. is hereby approved and adopted as presented.
Section 4. Adoption of Solid Waste Service Charges. The City Council hereby sets and adopts the solid waste service charges, to take effect on the dates, in the amounts and at the rates set forth in Exhibit A hereto with future increases as set forth in the Proposition 218 Notice.
Section 5. That a solid waste handling services agreement is hereby awarded to CR&R Incorporated. The City Manager is authorized and directed to execute a Second Amended and Restated Agreement with CR&R Incorporated for Solid Waste Handling Services in a form substantially similar to that presented to the City Council on November 19, 2024.
Section 6. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of ____________________, 2024.
ATTEST:
___________________________ ________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-167 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. _________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
4888-7080-6249 v2
4888-7080-6249 v2
Resolution No. 24-167 Page 2