CC RES 2022-015 RESOLUTION NO. 2022-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, CALIFORNIA TO CONSIDER
AND APPROVE A RESIDENTIAL WASTE MANAGEMENT
SERVICES RATE ADJUSTMENT ATTENDANT TO THE
PASSAGE OF SENATE BILL 1383
WHEREAS, The City of Rancho Palos Verdes ("City") entered into an exclusive
agreement franchise agreement with EDCO Disposal Corporation ("EDCO") for
Residential Solid Waste Management Services on or about November 24, 2009, which
was thereafter amended on June 30, 2015 (the "Agreement"); and
WHEREAS, the term of the Agreement was set to expire on June 30, 2020, but
the Agreement also included an option for seven (7) one-year extensions, which could
extend the Term until June 30, 2027; and
WHEREAS, Exhibit 4 of the Agreement establishes initial maximum rates for July
1, 2010, through June 30, 2011 ("Maximum Rates"); and
WHEREAS, The State of California recently adopted a number of bills mandating
a comprehensive update to waste management and recycling systems, particularly with
respect to the diversion of organic materials and food waste away from landfills. AB 341
mandates that commercial waste generators arrange for recycling services. AB 1826
mandates that commercial waste generators recycle their organic waste. AB 1594 will
end the practice of excluding organic material used as Alternative Daily Cover ("ADC")
from the calculation of a jurisdiction's total per capita amount of waste disposed; and
WHEREAS, most significantly, SB 1383 directs public agencies to reduce organic
waste disposal by 75% and increase edible food recovery by 20% by 2025. SB 1383 is
the most significant waste reduction mandate adopted in California in the last 30 years.
SB 1383's regulations apply to all persons and entities that generate organic materials,
such as food scraps and plant trimmings. All waste generators are required to divert their
organic materials from the garbage. SB 1383 allows the Department of Resources
Recycling and Recovery ("CalRecycle") to implement new regulations on local
jurisdictions if significant progress has not been made in the law's waste reduction goals;
and
WHEREAS, SB 1383 requires EDCO and other waste haulers to comply with
mandatory processing of food waste to be collected in residential green waste carts and
implement new measures to reduce contamination, educate waste generators, procure
recycled products with organic content, track and report recycling participation, and assist
local jurisdictions with enforcement of new recycling requirements. EDCO will need to
implement modifications to their service routes, purchase additional disposal containers
and container labels, and otherwise provide customers with additional refuse and
recycling services; and
WHEREAS, the above-referenced changes in law and State mandates present
substantial additional operational and programmatic changes in local waste hauling
services to meet new waste reduction goals, which requires EDCO to implement several
comprehensive changes to their refuse and recycling services in order to comply with
State regulations. To this end, EDCO can only continue to provide its residential refuse
and recycling services as mandated by the State if it can secure a rate adjustment and
new Agreement terms; and
WHEREAS, Article XIII D of the California Constitution ("Proposition 218")
establishes required procedures for increasing property related fees, including (i) mailing
a written notice of the proposed fee increase ("Notice") to each parcel on which the fee
will be imposed ("Identified Parcels"), and (ii) conducting a public hearing on the proposed
fee increase not less than forty-five (45) days after mailing the notice (the "Protest
Hearing"); and
WHEREAS, Proposition 218 requires the City Council to consider all protests
against the proposed rate increase, and establishes that if written protests against the
proposed rate increase are presented by a majority of owners of the Identified Parcels,
the City Council shall not approve the rate increase; and
WHEREAS, protests exceeding 7,000 would constitute a majority of owners of
Identified Parcels (a "Majority Protest"); and
WHEREAS, Proposition 218 and Government Code section 53756 allow the City
Council to adopt a schedule of rate adjustments, including a formula for adjusting the
rates, for a period not to exceed five years ("Five-Year Adjustment Formula"); and
WHEREAS, the adoption of the Five-Year Adjustment Formula by the City Council
is subject to the same procedures as a rate increase; and
WHEREAS, EDCO has requested a rate increase to meet the State of California's
requirements pursuant to Senate Bill 1383; and
WHEREAS, the City Council of the City of Rancho Palos Verdes seeks to hold a
fair and noticed public protest hearing as described in the Notice of Public Protest Hearing
on March 15, 2022, to consider the proposed residential waste collection services rate
structure with Five-Year Adjustment Formula to be applied pursuant to the requirements
of Proposition 218, and
WHEREAS, at said public hearing, all Identified Parcels are to be afforded the
opportunity to protest the proposed new rate schedule. Protest against the rate structure
shall be received and counted by the City Council.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The foregoing Recitals are hereby found to be true and correct and
incorporated herein by this reference.
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Resolution No. 2022-15
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Section 2. The City Council hereby ratifies the Proposition 218 process and
adopts the rates proposed by EDCO as set forth in the Notice of Public Protest Hearing
mailed to all Identified Parcels EDCO serves on January 28, 2022, and pursuant to
Proportion 218 finds as follows:
a) Rates for Service Provided Only: Revenues derived from the rates may not
be used for any purpose other than that for which the rate was imposed.
The rates collected are used to pay EDCO for the refuse collection,
recycling, new organics programs, and disposal services it provides to City
customers serviced by EDCO pursuant to the passage of Senate Bill 1383
and other new State mandates identified in the Recitals hereto. This
conclusion is further supported by all findings of fact presented at the City
Council hearing, including without limitation those facts stated in the
accompanying staff report, all of which evidence is incorporated herein by
this reference.
b) Rates not to Exceed Cost of Service: Revenues derived from the rates may
not exceed the funds required to provide refuse service. The City's cost for
refuse and recycling service is,established by the Agreement which permits
EDCO to recover its actual costs. It is found that EDCO will accrue direct
and unforeseen costs of service as a result of legal obligations pursuant to
the passage of Senate Bill 1383 and other new State mandates
necessitating EDCO's transition into providing City with additional solid
waste, recycling and organics collection services and attendant fiscal
impacts. This conclusion is further supported by all findings of fact
presented at the City Council hearing, including without limitation those
facts stated in the accompanying staff report, all of which evidence is
incorporated herein by this, reference.
c) Rates not to Exceed Proportional Cost: The amount of the rates may not
exceed the proportional cost of the refuse service attributable to the parcel.
EDCO proposes that the proposed refuse rates are reasonably proportional
and cost-based, and meet the general requirements of fairness and equity
under Proposition 218. In the course of analyzing the rates attendant to this
resolution, the City retained the services of an independent
auditor/consultant for purposes of reviewing and verifying the rate structure
proposed by EDCO, which independent audit supports the rate structure.
This conclusion is further supported by all findings of fact presented at the
City Council hearing, including without limitation those facts stated in the
accompanying staff report, all of which evidence is incorporated herein by
this reference.
Section 3. The Council has fully considered this matter and has:
a) Reviewed the information submitted herewith regarding the proposed solid
waste service rate adjustment for accounts serviced by EDCO, the parcels
to which the proposed rate adjustment would apply, and the reasons and
basis for the adjustment and the rates;
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Resolution No. 2022-15
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b) Provided notice of the proposed rate adjustment to the Identified Parcels to
which the proposed adjustment would apply in accordance with Article XIIID
of the California Constitution;
c) Heard and received all written protests from any Identified Parcels subject
to the rates;
d) Taken and received oral and documentary evidence pertaining to the
proposed rate adjustment; and
e) Been fully informed of this matter.
Section 4. The Council finds that insufficient written protests were presented to
prevent the rates proposed by EDCO from being imposed.
Section 5. The Council finds that based on these facts and the circumstances
and information received during the public hearing, the changes in rates proposed by
EDCO are necessary and are hereby adopted, contingent upon there being no Majority
Protest from a majority of all Identified Parcels under an omnibus protest by all those
permitted to protest the proposed new rate system. (Morgan v. Imperial Irrigation District
(2014) 223 Cal.App.4th 892.)
Section 6. Said refuse rates shall take effect on April 1, 2022.
Section 7. This Resolution shall become'effective immediately.
PASSED, APPROVED and ADOPTED this 15th day of March 2022.
APP
Mayor
Attest:
City Clerk
STATEOF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY'OF RANCHO PALOS VERDES )
I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify
that the above Resolution No. 2022-15 was duly and regularly passed,,and adopted by
the said City Council at a regular meeting thereof held on March 15, 2022..
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•
ity Clerk
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Resolution No. 2022-15
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