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HomeMy WebLinkAboutResolution - 3810COUNTYSTATE OF CALIFORNIA) RESOLUTION NO. 3811 OF RIVERSIDE) CITY OF SAN O. 1 ► ► �3ii# 't3_1 faZ� . i7rk1091►T;Z67:7_>19:4i7 WHEREAS, the City of San Jacinto recognizes that the proper collection and disposal of all solid waste created, produced or brought into the City is a significant health and safety issue; and WHEREAS, CITY and CONTRACTOR entered into a certain Agreement for the Collection and Handling of Solid Waste dated March 17, 2005 (the "2005 Franchise Agreement"); and WHEREAS, CITY and CONTRACTOR entered into a certain First Amendment to the Franchise Agreement between The City of San Jacinto and CR&R Incorporated dated April 15, 2010 (the "First Amendment"); and WHEREAS, CITY and CONTRACTOR entered into a certain Second Amendment to the Franchise Agreement between The City of San Jacinto and CR&R Incorporated dated December 17, 2012 (the "Second Amendment"); and WHEREAS, CITY and CONTRACTOR entered into a certain Third Amendment to the Franchise Agreement between The City of San Jacinto and CR&R Incorporated dated January 3, 2017 (the "Third Amendment"); and WHEREAS, Section 15F of the 2005 Franchise Agreement provides that any amendment thereto must be in a written form duly executed by the parties in order to be valid; and WHEREAS, CITY and CONTRACTOR desire to amend their 2005 Franchise Agreement, their 2010 First Amendment, their 2012 Second Amendment and their 2017 Third Amendment in order to provide for certain service enhancements and address certain changes in the Bureau of Labor Statistics indexes. NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Section 7.a. Clean -Up Week of t 1 Agreementdeleted in its entirety. I 1 2. Section 6.b.i. "Residential Service - Single Unit Residential" of the 2005 Exclusive Franchise Agreement, Paragraph Number 3 is hereby amendedas• • Upon verbal or written customer request, made prior to 2:30 PM on the weekday prior to CONTRACTOR'S normal weekly collection time, CONTRACTOR shall provide on -call Single Unit Residential Bulky Household Waste Collection Service. Bulky items shall be placed within two (2) feet of the curb or other such location as agreed to by the CONTRACTOR and the customer. CONTRACTOR and City agree that this service is intended to allow residents to safely discard of large household items such as furniture and whitegoods or other large household items that do not fit on their regular weekly trash containers. Each Single Unit Residential Customer shall be entitled to receive up to four (4) on -call Bulky Household Waste Collection Services per calendar year with a maximum of four (4) items at each collection occurrence. The total amount of annual allowable items per household shall be sixteen (16) Bulky Items per calendar year. Automobile tires shall be limited to four (4) tires per collection request. Bulky Household Waste items do not include items such as dirt, rock, sod, other inert or construction materials, motor vehicles, motor vehicle parts, boats, campers, trailers or household hazardous waste. Between December 25th and January 15th, Contractor shall collect live Christmas trees that are placed curbside for disposal. Trees shall have all decorations and tree stands removed. When possible, trees taller than six feet in length shall be cut in half. All trees shall be placed inside the green waste collection container for collection whenever possible. Section3. •Adjustmentof 00 AgreementFranchise • deleted in its entirety and replaced as follows: Franchise Agreement Inflationary Indices Rate Adjustments Solid Waste Charges will be adjusted annually for inflation and to pass through costs in wholesale service, commencing July 1, 2021, and any time thereafter through and including July 1, 2025, as follows: 1. Service Component Formula: a. Residential: (Solid Waste Charge x 85.5%) x 100% of the percentage increase or decrease in the Bureau of Labor Statistics Consumer Price Index for all Urban Consumers within the Riverside -San Bernardino - Ontario, CA. areas during the prior calendar year (Series ID CUURS49CSA0) ("CPI") b. Commercial: (Solid Waste Charge x 79%) x CPI 2 a. Residential: (Solid Waste Charge x 14.5%) x 100% of the percentage increase or decrease in the rates adopted by the County of Riverside ("County Rate Increase") b. Commercial: (Solid Waste Charge x 21 %) x County Rate Increase 3. Commercial Organic Rates CPI Formula: a. Service: (Service Component Rate x CPI) b. Digester: (Digester Component Rate x County Rate Increase) All other rates in the approved rate schedule of Solid Waste Charges including, but not limited to, various fees and roll -off haul rates, shall also be adjusted by 100% of the change in the CPI. The comparison shall be made for each calendar year (Annual Change) during the term thereof and shall be effective each July 1st. The pass -through adjustments are referred to collectively as the "Pass - Through Adjustments." The Pass -Through Adjustments shall be assumed for the five-year period identified above so that annual increases effective July 1, 2021 through July 1, 2025 shall be automatic upon the 30-day notice required under Government Code Section 53756(d). The Solid Waste Charges shall not increase by more than 15% in any fiscal year as a result of the Pass -Through Adjustments. • .. • - s ,. • • • In addition to the Franchise Fee, Contractor shall pay the City an Annual Payment of one hundred seventy-five thousand dollars ($175,000). The initial annual payment shall be due and payable by January 1, 2013. Each subsequent annual payment shall be due and payable each January 1st of each calendar year throughout the term of this agreement. The first adjustment to this annual payment shall not be considered until such time as the City either has greater than 14,500 single family residential units or January 1, 2020 whichever occurs first. No later than January 1, 2020 or at the time when the City has greater than 14,500 single family units, and on each January 1st of each subsequent year, the annual payment shall be adjusted using the change in the Consumer Price Index (CPI) for all Urban Consumers within the Riverside -San Bernardino -Ontario, CA. areas. The CPI adjustment shall be equal to the amount derived by multiplying (1) the previous Annual Payment by (2) the percentage increase or decrease in the CPI as defined above during the prior calendar year. This CPI comparison shall be made for the year over year change from September to September of each calendar year. WHEREAS, the City has duly noticed the property owners and rate payers prior to 45 days of the public hearing in accordance with the noticing requirements of Proposition 218 and California Constitution article 13D. Such notice was delivered by regular U.S. mail to the property owners based on the 3 latest available county tax roll and each rate payer based each known postal address. The City understands that not all property owners are users of the service; and NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City Council of the City of San Jacinto, California, as follows: 1) Contractor is not in default of exclusive contract for collection and disposal of solid waste and recycling services. 2) Increase all solid waste and recycling rates as determined by the Solid Waste Recycling Rate Schedule for Billings after July 1, 2020, which is hereby attached and a part of this resolution. Beginning on July 1, 2020, and each July 1 thereafter, the fees may be increased by the City in accordance with this agreement 3) Establishment of solid waste rates in this resolution supersedes any and all prior resolutions. PASSED, APPROVED AND ADOPTED by the San Jacinto City Council on the 16th day of June, 2020 by the following vote: AYES: Kotyuk, Ledezma, Lopez, Utz, Ruiz Nor-0 ABSTAIN:NAYS: x • A"1Lq-=L- Jyj Espinoza, Records Clerk Clerk Best Best and Krieger, LLP Michael J. Ma rer, City Attorney F"Irr-TAT t Andrew Kotyuk, Mayor GI STATE O CALIFORNIA) I, Julia Espinoza, Records Clerk of the City of San Jacinto, California, do hereby certify that the foregoing Resolution No. 3810 was passed, adopted and approved at a regular meeting of the City Council of City of San Jacinto held on the 16th day of June, 2020, by the following vote: AYES: Kotyuk, Ledezma, Lopez, Utz, Ruiz WITNESS SAY HAND AND OFFICIAL SEAL this 16th day of June, 2020. Ju a spinoza, Records Clerk City of San Jacinto 9