HomeMy WebLinkAboutReso 2019-186RESOLUTION NO. 2019-186
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING THE RESULTS OF THE PUBLIC
PROTEST PROCESS REGARDING PROPOSED INCREASES
IN GENERAL SERVICE RATES, AND ANNUAL
INFLATIONARY RATE INCREASES FOR SMALL
QUANTITY AND LARGE QUANTITY GENERATORS, FOR
SOLID WASTE AND RECYCLING COLLECTION SERVICES
BY THE CITY’S FRANCHISED PROVIDER, REPUBLIC
SERVICES; AND APPROVING THE PROPOSED RATE
INCREASES IF THERE IS NOT A MAJORITY PROTEST
WHEREAS, in 2014 the City of Chula Vista (the City) and Republic Services (Republic)
entered into an amended and restated solid waste and recycling franchise agreement to provide
collection services to all residential and commercial properties in Chula Vista (the
“Agreement”); and
WHEREAS, the Agreement permits Republic to charge fees for its service, subject to
maximum rates established in the contract, requires Republic to pay the City a 20% franchise fee
and an additional 5% AB939 fee that is used for recycling and waste reduction programs and
education, both of which Republic may pass-through to customers; and
WHEREAS, the City received a request for a special rate increase from Republic to
alleviate financial losses caused by a significant shift in export recycling markets; and
WHEREAS, the requested increase of 6.1% is subject to the 20% franchise fee and 5%
AB939 fee that Republic is required to pay to the City under contract (approved by Resolution
No. 2014-129), bringing the total rate increase to 7.6% increase on all residential, commercial
and industrial service accounts; and
WHEREAS, the Agreement allows Republic to request City approval of a fee increase
due to extraordinary circumstances beyond Republic’s control and maximum annual rate
adjustments pursuant to the approved contract with Republic Services; and
WHEREAS, on June 18, 2019, Chula Vista City Council approved Republic Services
request and directed staff to proceed with conducting the proceedings necessary prior to the
implementation of the proposed rate increase (Resolution no. 2019-128); and
WHEREAS, the contract also provides for an annual inflationary increase pursuant to the
formulas set forth in the contract; and
WHEREAS, staff sent the requisite public notice to 101,221 Chula Vista property owners
and Chula Vista Republic Services customers of record to notify them of the public hearing to
consider the proposed rate increases and rate adjustment formulas for solid waste; and
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Resolution No. 2019-186
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WHEREAS, the mailing of the notice started a 45-day period during which written
protests to the proposed rate increases may be submitted to the City, culminating with a public
hearing on September 24, 2019; and
WHEREAS, the final tally of written protests received by the City Clerk, (less than
50,610 +1) confirmed that written protests were not received on behalf of a majority of the
affected parcels and, as a result, the proposed rate increases and annual rate adjustments, as set
forth in the public notice, are approved and the increases will go into effect.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it:
1. Accept the results of the majority public protest process; and
2. Approves the proposed general service rate increase of 7.6%, on Chula Vista Republic
Services ratepayers conditioned on the City retaining the ability to reduce the rate when it
determines that market conditions warrant a reduction; and
3. Approves the annual inflationary rate adjustments, pursuant to the formulas contained in
the public notice, for the five-year period beginning in 2020.
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Resolution No. 2019-186
Page No. 3
Presented by Approved as to form by
Eric C. Crockett Glen R. Googins
Director of Economic Development City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 24th day of September 2019 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-186 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 24th day of September 2019.
Executed this 24th day of September 2019.
Kerry K. Bigelow, MMC, City Clerk
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