HomeMy WebLinkAboutResolution No. 4129 - CR&R 6th AmendmentResolution No. 4129
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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.
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Resolution No. 4129
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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
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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
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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
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