CITY OF SAN MATEO
RESOLUTION NO. ____ (2024)
AUTHORIZING AN APPROPRIATION IN THE AMOUNT OF $1,000,000 FROM THE SOLID WASTE FUND
UNASSIGNED FUND BALANCE FOR PAYMENT OF THE RECOLOGY BALANCING ACCOUNT DEFICIT
WHEREAS, on November 6, 2017, the City Council adopted Resolution 100 (2017), which approved an Amended and Restated Franchise Agreement with Recology San Mateo County for Recyclable Materials, Organic Materials and Solid Waste Collection Services (Franchise Agreement); and WHEREAS, Article 11.07, Section B of the Franchise Agreement addresses a balancing account tracking of the annual surplus or deficit between what Recology is owed and what the City collects from solid waste rates; and
WHEREAS, pursuant to Attachment S of the Franchise Agreement, deficits increase the balancing account shortfall and are charged interest; and
WHEREAS, the City desires to keep the balancing account as low as possible to avoid excessive interest charges; and
WHEREAS, the City currently has a balancing account deficit; and WHEREAS, City staff recommends remitting payment in the amount of $1,000,000 to Recology using available funds from the Solid Waste Fund unassigned fund balance to address the balancing account deficit.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This City Council action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
2. An appropriation in the amount of $1,000,000 from the Solid Waste Fund unassigned fund balance to pay the balancing account deficit owed to Recology San Mateo for past services provided, pursuant to the terms of the Franchise Agree is approved.