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HomeMy WebLinkAboutResolution No. 4129 - CR&R 6th AmendmentResolution No. 4129 Page 1 of 4 STATE OF CALIFORNIA) RESOLUTION NO. 4129 COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO) SIXTH AMENDMENT TO THE FRANCHISE AGREEMENT BETWEEN THE CITY OF SAN JACINTO AND CR&R INCORPORATED 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; 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”); 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”); 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”); 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”); WHEREAS, CITY and CONTRACTOR entered into a certain Fourth Amendment to the Franchise Agreement between The City of San Jacinto and CR&R Incorporated dated June 16, 2020 (the “Fourth Amendment”); WHEREAS, CITY and CONTRACTOR entered into a certain Fifth Amendment to the Franchise Agreement between The City of San Jacinto and CR&R Incorporated dated June 30, 2022 (the “Fifth Amendment”); 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, their 2017 Third Amendment, their 2020 Fourth Amendment, and their 2022 Fifth Amendment in order to provide for certain service enhancements and address certain changes in the Bureau of Labor Statistics indexes. Docusign Envelope ID: 8ACC5167-FDF9-8D5F-82E1-FF09E6E25542 Resolution No. 4129 Page 2 of 4 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 8.d. “Annual Adjustment of Rates” of the 2005 Exclusive Franchise Agreement is hereby 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, 202 6, and any time thereafter through and including July 1, 2030, 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. Landfill Tipping Fee Formula: 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, 202 7 through July 1, 2031 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. 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 Docusign Envelope ID: 8ACC5167-FDF9-8D5F-82E1-FF09E6E25542 Resolution No. 4129 Page 3 of 4 delivered by regular U.S. mail to the property owners based on the latest available county tax roll and each rate payer based on 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: SECTION 1. Contractor is not in default of exclusive contract for collection and disposal of solid waste and recycling services. SECTION 2. Increase all solid waste and recycling rates as determined by the Solid Waste Recycling Rate Schedule for Billings after July 1, 2026, which is hereby attached and a part of this resolution. Beginning on July 1, 2026, and each July 1 thereafter, the fees may be increased by the City in accordance with th is agreement SECTION 3. Establishment of solid waste rates in this resolution supersedes any and all prior resolutions. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 2nd day of June, 2026 by the following vote: AYES: Ruiz, Sanchez, Vandever NAYS: None ABSENT: Ayala, Ledezma ABSTAIN: None CITY OF SAN JACINTO: _____________ Crystal Ruiz, Mayor ATTEST: _______________ Julia Espinoza, City Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER LLP ___________________________ Craig Hayes, City Attorney Docusign Envelope ID: 8ACC5167-FDF9-8D5F-82E1-FF09E6E25542 Resolution No. 4129 Page 4 of 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) CERTIFICATION I, Julia Espinoza, duly appointed City Clerk of the City of San Jacinto, California, do hereby certify that the foregoing Resolution No. 4129 was passed, adopted, and approved at a regular meeting of the City Council of the City of San Jacinto held on the 2nd day of June, 2026, by the following vote: AYES: Ruiz, Sanchez, Vandever NAYS: None ABSENT: Ayala, Ledezma ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL this 2nd day of June 2026. ______________________________ Julia Espinoza, City Clerk City of San Jacinto Docusign Envelope ID: 8ACC5167-FDF9-8D5F-82E1-FF09E6E25542