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ATTY/RESO.0108/CC RESO APPROVING AMENDMENT NO. 2 TO RECOLOGY SAN MATEO FRANCHISE AGREEMENT REV: 11-04-25 MI Page 1 of 2 RESOLUTION NO.16369 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDWOOD CITY APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE AMENDED AND RESTATED FRANCHISE AGREEMENT WITH RECOLOGY SAN MATEO, AND APPROVING MAXIMUM 2026 AND 2027 SOLID WASTE COLLECTION RATES, AND SOLID WASTE CHARGES WHEREAS, the City Council approved the Amended and Restated Franchise Agreement with Recology San Mateo (“Agreement) on March 26, 2018; and WHEREAS, Amendment No. 2 to the Amended and Restated Franchise Agreement With Recology San Mateo (“Amendment 2”) specifies that Recology will perform all billing functions for its solid waste rates, provides that the City may establish a franchise fee, AB 939 fee, and administrative fee (collectively referred to as “franchise fees”) by resolution, sets the amounts of those solid waste franchise fees for Fiscal Years 2026 and 2027 and provides that, in later years, the fees will be increased, on an annual basis, by the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) in the San Francisco-Oakland-San Jose region (as reported and published by the U.S. Department of Labor, Bureau of Labor Statistics for the twelve- month period ending the previous December 31); and WHEREAS, the City conducted a review of said franchise fees and produced a study that demonstrates that the franchise fees do not exceed the City’s estimated reasonable costs of providing solid waste-related services, privileges and benefits to Recology and the reasonable value of City property used for solid waste-related services (“Franchise Fee Study”); and WHEREAS, the City Council adopted the Franchise Fee Study, by Resolution No. 16276, effective February 1, 2025, and determined that the City’s franchise fees comply with Section 1 of Article XIII C of the California Constitution and are justified by the City’s costs of providing solid waste-related services, privileges, and benefits to Recology and the reasonable value of City property used for solid waste services; and WHEREAS, the City Council approves maximum rates for charges for solid waste collection services; and WHEREAS, notices on the proposed maximum rates were sent in accordance with Government Code Section 53755, a hearing was held in accordance with the requirements of Article XIII D, Section 6 of the California Constitution (Proposition 218), no majority protest exists, and the proposed maximum rates comply with the limitations for use in Article XIII D, Section 6(b); and WHEREAS, the City followed Proposition 218’s notice and hearing requirements in approving the maximum solid waste collection rates, but the rates are imposed by Recology, not the City, and by following those requirements and adopting this resolution, the City does not intend to impose the solid waste collection rates pursuant to Proposition 218; and