HomeMy WebLinkAboutOrdinance 2752 N.C.S. 12/21/2020Ordinance No. 2752 N.C.S. Page 1
EFFECTIVE DATE
OF ORDINANCE
January 20, 2021
ORDINANCE NO. 2752 N.C.S.
Introduced by: Gabe Kearney Seconded by: Kevin McDonnell
ORDINANCE OF THE CITY OF PETALUMA CITY COUNCIL APPROVING AMENDMENT
NO. 2 TO THE FRANCHISE AGREEMENT BETWEEN THE CITY AND RECOLOGY
SONOMA MARIN FOR COLLECTION, DISPOSAL AND PROCESSING OF MIXED
MATERIALS, RECYCLABLE MATERIALS AND ORGANIC MATERIAL AND RELATED
ACTIVITIES PURSUANT TO CHAPTER 8.16 OF THE PETALUMA MUNICIPAL CODE
WHEREAS, City and Contractor are parties to that certain Franchise Agreement for Collection,
Disposal and Processing of Mixed Materials, Recyclable Materials and Organic Material and Related
Activities, dated March 6, 2013, as amended pursuant to that certain Assignment, Assumption and
Amendment Agreement last executed February 22, 2018 by and among City, Contractor and Petaluma
Refuse & Recycling, Inc. (such agreement as so amended, the “Franchise Agreement”); and
WHEREAS, pursuant to Section 10.4 of the Franchise Agreement, Contractor timely requested a
Detailed Rate Review to adjust the Maximum Service Rates chargeable by Contractor under the Franchise
Agreement, effective July 1, 2020, and duly submitted a rate application in support of such request; and
WHEREAS, City engaged an independent consultant, R3, to assist City staff in reviewing and
evaluating Contractor’s rate application, and after completing such review, City determined (and
Contractor agreed) that in accordance with the Franchise Agreement, Maximum Service Rates should be
adjusted by 35.9% effective July 1, 2020; and
WHEREAS, given the extraordinary circumstances arising from COVID-19 and the related economic
hardship faced by the residents and businesses of Petaluma, the parties have agreed on an alternative
approach to implementing the required rate adjustment, which reduces the impact on ratepayers while
fulfilling the intent and purposes of the Franchise Agreement; and
WHEREAS, the alternative approach involves implementing the required rate adjustment in stages,
deferring the initial adjustment, and limiting growth in certain fees payable by Contractor to City under
the Franchise Agreement, all as more fully set forth in this Amendment; and
WHEREAS, as part of the alternative approach, the parties have also agreed in principle to extend the
Franchise Agreement term to make up for lost revenue to Contractor due to the delayed implementation
of the required rate adjustment, but to postpone such extension to 2021, so that the related contract
amendment can include changes to the organic waste collection program mandated by SB 1383; and
WHEREAS, due to the delay in implementing the rate adjustment required by the Detailed Rate
Review, Maximum Service Rates were adjusted effective July 1, 2020 by 3.45%, pursuant to the Refuse
Rate Index adjustment methodology set forth in Section 10.3 and Exhibit 2 of the Franchise Agreement;
and
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Ordinance No. 2752 N.C.S. Page 2
WHEREAS, action on the proposed ordinance approving a second amendment to the solid waste
Franchise Agreement between the City and Recology Sonoma Marin setting new maximum solid waste
service rates is not a project subject to the requirements of the California Environmental Quality Act
(“CEQA”) or its Guidelines in accordance with paragraph (2) of subdivision (c) of Section 15060 of the
CEQA Guidelines, because approval of new maximum solid waste service rates will not result in a direct
or reasonably foreseeable indirect physical change in the environment, and in accordance with paragraph
(4) of subdivision (b) of Section 15378 of the CEQA Guidelines, because the ordinance approving the
second amendment to the Franchise Agreement involves the creation of government funding mechanisms
and other government fiscal activities that do not involve any commitment to any specific project that may
result in a potentially significant physical impact on the environment.
NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
Section 1. Recitals. The above recitals are hereby declared to be true and correct and hereby
incorporated into this ordinance as findings of the City Council.
Section 2. CEQA Exemptions. This ordinance approving a second amendment to the solid waste
Franchise Agreement between the City and Recology Sonoma Marin setting new maximum solid waste
service rates is not a project subject to the requirements of the California Environmental Quality Act
(“CEQA”) or its Guidelines in accordance with paragraph (2) of subdivision (c) of Section 15060 of the
CEQA Guidelines, because approval of new maximum solid waste service rates will not result in a direct
or reasonably foreseeable indirect physical change in the environment, and in accordance with paragraph
(4) of subdivision (b) of Section 15378 of the CEQA Guidelines, because this ordinance approving the
second amendment to the Franchise Agreement involves the creation of government funding mechanisms
and other government fiscal activities that do not involve any commitment to any specific project that may
result in a potentially significant physical impact on the environment.
Section 3. Second Amendment to the Franchise Agreement Approved. The Second Amendment
to the Franchise Agreement between the City of Petaluma and Recology Sonoma Marin for Collection,
Disposal and Processing of Mixed Materials, Recyclable Materials, and Organic Material and Related
Activities, which is attached to and made a part of this ordinance as Exhibit A, is hereby approved, and
the City Manager is hereby authorized and directed to sign a second amendment to the Franchise
Agreement on behalf of the City that is substantially in accordance with Exhibit A upon this ordinance
taking effect.
Section 4. Effective Date/Referendum Period. This ordinance shall become effective thirty days
after the date of its adoption by the Petaluma City Council.
Section 5. Posting/Publishing of Notice. The City Clerk is hereby directed to post and/or publish
this ordinance or a synopsis of it for the period and in the manner required by the City Charter.
INTRODUCED and ordered published and posted this 7
th
day of December 2020.
ADOPTED this 21
st
day of December 2020 by the following vote:
Ayes: Mayor Barrett, Vice Mayor Fischer, Healy, Kearney, King, McDonnell, Miller
Noes: None
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Ordinance No. 2752 N.C.S. Page 3
Abstain: None
Absent: None
Teresa Barrett, Mayor
ATTEST: APPROVED AS TO FORM:
Kendall Rose, CMC, City Clerk Eric Danly, City Attorney
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