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HomeMy WebLinkAboutR-11539 declaring the City's intent to adopt an Ordinance restating its existing franchise agreement and set a Public Hearing for March 18, 2025R 11539 RESOLUTION NO. 11539 (2025 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING THE CITY’S INTENT TO ADOPT AN ORDINANCE RESTATING ITS EXISTING FRANCHISE AGREEMENTS WITH SAN LUIS GARBAGE COMPANY AND SET A PUBLIC HEARING FOR MARCH 18, 2025 WHEREAS, the City of San Luis Obispo ("City") adopted Ordinance No. 1551 on August 20, 2010, granting a franchise to San Luis Garbage Company ("San Luis Garbage") for a term of 15 years for the collection and disposal of solid waste, recycling, and organics within the City (collectively referred to as the "Franchise Agreements"); and WHEREAS, public health and safety demand the orderly and periodic collection and safe disposal and/or processing of solid waste, recyclables, and green waste; and WHEREAS, it has been determined that an exclusive franchise granted to a private company is the most effective and efficient way to collect and remove solid waste, recyclables, and organics within the City; and WHEREAS, San Luis Garbage has provided a high level of service and reasonable rates for solid waste, recyclables, and organics collection in the City for the terms of the Franchise Agreements; and WHEREAS, the City adopted Ordinance No. 1624 on October 20, 2015, amending the green waste franchise agreement to incorporate food waste and approve the extension to the term of the agreement until December 18, 2038 – to establish funding for the development and operation of the KOMPOGAS SLO Anaerobic Digestion Facility – formerly Hitochi Zosen Inova – which processes the City's curbside food and yard waste and turns it into organic compost; and WHEREAS, Senate Bill 1383, Chapter 395, Statutes of 2016 (SB 1383) establishes methane emissions reduction targets in a statewide effort to reduce emissions of short­ lived climate pollutants by reducing disposal of organic waste in landfills and is California's most comprehensive change to solid waste regulations in over thirty years; and WHEREAS, the City adopted Ordinance No. 1711 on May 3, 2022, amending the Franchise Agreements to implement organic waste diversion programs to meet the goals of SB 1383 and allows a jurisdiction to designate a public or private entity to fulfill, in whole or in part, its responsibilities under SB 1383 through contracts with its waste haulers; and Docusign Envelope ID: 537AC62F-DA5B-4A28-82B2-B6EBF3CFC47A Resolution No. 11539 (2025 Series) Page 2 R 11539 WHEREAS, the solid waste and recycling agreements expire on August 25, 2025; and WHEREAS, to maintain continuity, the material terms and conditions for the solid waste and recycling franchise agreements are being proposed to be merged into a restated Franchise Agreement with organics set forth below in compliance with Section 1002 of the City Charter of the City of San Luis Obispo, thereby extending the term of the solid waste and recycling agreements to align with the green waste expiration date of December 18, 2038; and WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (AB 939), set forth in Public Resources Code Sections 40000 et seq., declares that it is within the public interest to authorize and require local agencies to make adequate provision for solid waste handling within their jurisdiction, including but not limited to, the discretion to perform a competitive bidding process. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to Section 1002 of the City Charter of the City of San Luis Obispo, the City Council hereby declares its intent to grant a restated franchise to San Luis Garbage for the collection and disposal of solid waste, recycling, and organics in the City with the following key terms: a) Merged solid waste, recycling, and organics agreements into one, restated agreement. b) Contract expiration of December 18, 2038 – aligning with the organics agreement. c) San Luis Garbage Company to provide updated enhancements within the agreement for residential customers such as residential no cost large/bulky item collection, Customer Assistance Program for qualified low­income residents, holiday tree collection, and annual cart exchange. d) Revised agreement language to increase duration between Public Hearings for delinquent solid waste customers to up to five years. e) San Luis Garbage Company to continue to provide public education and outreach assistance and compliance reporting. f) Revised rate setting methodology to replace the current 1994 Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates. SECTION 2. A public hearing will be held on March 18, 2025, beginning at 5:30 p.m. in the City Council Chambers, at which time any persons having any interest in the amendments to the Franchise Agreements may appear before the Council to be heard thereon. Docusign Envelope ID: 537AC62F-DA5B-4A28-82B2-B6EBF3CFC47A Resolution No. 11539 (2025 Series) Page 3 R 11539 SECTION 3. The City Clerk shall publish this resolution at least once within fifteen (15) days of its passage in a newspaper in the City of San Luis Obispo. Upon motion of Vice Mayor Shoresman, seconded by Council Member Francis, and on the following roll call vote: AYES: Council Member Boswell, Francis, Marx, Vice Mayor Shoresman, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 21st day of January 2025. _________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. _________________________ Teresa Purrington City Clerk Docusign Envelope ID: 537AC62F-DA5B-4A28-82B2-B6EBF3CFC47A 1/24/2025 | 2:45 PM PST