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HomeMy WebLinkAbout60B - SOLID WASTE OPTIONSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 16, 2020 TITLE: CONSIDER OPTIONS RELATED TO SOLID WASTE COMPLIANCE WITH STATE MANDATES (NON -GENERAL FUND) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER OPTIONS FOR CITY COUNCIL CONSIDERATION A. Adopt a resolution increasing the City curbside cart refuse rates by $1.90, effective July 1, 2020, and by $1.50, effective July 1, 2021. Eel B. Approve an amendment to the Waste Management agreement for collection and handling of solid waste to extend the agreement from June 30, 2021 to June 30, 2022, to maintain the expanded timeline for the Solid Waste Request for Proposals, and remove the requirement for composting of green waste, subject to non -substantive changes approved by the City Manager and City Attorney. IN C. Approve neither Option A, nor Option B. If no action is taken, the Waste Management agreement for collection and handling of solid wastes will expire on June 30, 2021, allowing only twelve months for completion of the Solid Waste Request for Proposals process, the purchase and deployment of equipment, and program implementation effective July 1, 2021. DISCUSSION During the June 2, 2020 City Council meeting a public hearing was held to adopt a resolution increasing the curbside cart refuse rates. As required by the provisions of Proposition 218, notices of a public hearing for adjusting refuse rates were mailed to all property owners within the City of Santa Ana refuse service area on April 17, 2020. Comments from property owners were heard, protests were recorded, and the Public Hearing was closed. City Council directed staff to continue negotiations with Waste Management (WM) in an effort to reduce the rate increases. The adoption of the resolution was continued to a later date for further deliberation of the City Council. Consider Options Related to Solid Waste Compliance with State Mandates June 16, 2020 Page 2 Negotiations with WM did not result in a further reduction of costs as WM already contributes $1,667,333 to the City through the following: Action Cost Savings Negotiated with WM Provision of service from 01/01/2020 to 06/30/2020 $869,022 Provision of service at loss of $0.04 per month per account for two years 40,421 Tiered rate increase resulting in loss of $1.50 per month per account for FYE21 757,890 Total WM Contribution $1,667,333 Total Service Cost $4,345,211 % Share of Cost 38.37% Option A Staff recommends adoption of the resolution (Exhibit 1) which addresses the requirements of Assembly Bill 1594 (Exhibit 2), ensuring that the City remains in compliance with State mandates avoiding potential fines of up $10,000 per day. The resolution will increase the curbside cart refuse rates by $1.90, effective July 1, 2020, and by $1.50, effective July 1, 2021. Approval of this option also allows for the execution of the amendment approved on March 17, 2020 (Exhibit 3), which extends the solid waste services agreement with WM through June 30, 2022. Extension of the WM agreement provides the additional time needed to meet the City's Solid Waste Request for Proposals (RFP) expanded timeline. Without this extension, the RFP timeline would need to be compressed by a minimum of 6 months. Option B At the request of the City, WM will enter into an amendment (Exhibit 4) providing a one-year extension from June 30, 2021 to June 30, 2022, to maintain the expanded timeline for the Solid Waste RFP, and will remove the requirement for composting of green waste. Removing the composting requirement will eliminate the diversion credit that the City receives, and will expose the City to a compliance order and potential fines from CalRecycle. The City is required by AB 1594 to report to CalRecycle on August 3, 2020 of its handling of previously diverted green waste as Alternative Daily Cover. Option C Approval of neither option will result in the invalidation of the one-year extension of the agreement with Waste Management approved by the City Council on March 17, 2020 and will compress the RFP timeline to 12 months. Twelve months is not sufficient time to complete the RFP process, purchase the necessary trucks, bins, and carts, and implement the program on July 1, 2021. STRATEGIC PLAN ALIGNMENT Approval of these items support the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment). �. 1 Consider Options Related to Solid Waste Compliance with State Mandates June 16, 2020 Page 3 ENVIRONMENTAL IMPACT There are no environmental impacts associated with Options A and C. Selecting Option B will reduce the life of Orange County landfills. FISCAL IMPACT The proposed rates are designed to meet the cost of service requirements of Proposition 218. There is no fiscal impact associated with this action, as the rate increases are a direct pass -through to WM. NS/MLM/CK Exhibits: 1. Resolution 2. AB 1594 and ADC Overview 3. Amendment to Waste Management Agreement — Option A 4. Amendment to Waste Management Agreement — Option B jmf 5/22/20 EXHIBIT 1 RESOLUTION NO. 2020-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADJUSTING RATES FOR RESIDENTIAL/CURBSIDE REFUSE COLLECTION SERVICE PROVIDED BY THE CITY OF SANTA ANA WHEREAS, Chapter 16 of the Santa Ana Municipal Code, Article II, Section 16- 38, authorizes the City to charge for the provision of curbside solid waste collection service to customers within the City of Santa Ana and to establish those rates by resolution; and WHEREAS, landfill operators must cover all disposed solid waste at the end of each day and may use alternative materials in lieu of earthen materials. These materials are referred to as alternative daily cover (ADC); and WHEREAS, as of January 1, 2020, pursuant to Assembly Bill 1594, the use of green waste as ADC does not qualify for diversion credit and will be considered disposal for purposes of measuring jurisdiction's compliance with other state mandates; and WHEREAS, previously, green waste collected from the City's customers by the City's solid waste contractor, Waste Management (WM), was minimally processed by a third -party green waste facility, transferred to landfills to be used as ADC, and the City received diversion credit; and WHEREAS, to continue receiving diversion credit under the new restrictions of AB 1594, the green waste is now being composted by the third -party green waste facility, but at a higher cost to WM; and WHEREAS, the City previously retained HF&H Consultants, LLC, independent solid waste consultants, to assist the City in negotiating a one-year extension of the solid waste agreement with WM to June 30, 2022, which will incorporate programs to comply with AB 1594 and shall become effective upon approval of this Resolution; and WHEREAS, based on the results of the analysis completed by HF&H, a copy of which is attached as Exhibit A, increases in the rate for residential/curbside cart refuse service are necessary as a result of AB 1594; and WHEREAS, the proposed increase to the residential/curbside cart refuse service rate is structured to directly align with WM's increased cost for composting green waste and is based on a proposed cost of $90.13 per ton to process and compost green waste, versus a current cost of $33.13 per ton to use green waste as landfill ADC; and WHEREAS, the proposed residential/curbside cart refuse service charge is a fixed, monthly charge billed on a bimonthly basis; and Resolution No. 2020-XXX Page 1 of 5 �. 1 jmf 5/22/20 WHEREAS, the proposed rate increases are for a period of two years and are proposed to take effect on July 1, 2020 and July 1, 2021, respectively; and WHEREAS, the rate increase applies to all residential/curbside cart refuse service customers: and WHEREAS, the rate increase will not be expended for general governmental purposes, but only for the increased cost for composting green waste; and WHEREAS, article XIII D, section 6 of the California Constitution ("Article XIII D") requires that prior to imposing increases to solid waste collection rates, the City shall provide written notice by mail of the new or increased rates to the record owner of each parcel upon which the rate is proposed for imposition and any tenant directly liable for payment of the rate, the amount of the rate proposed to be imposed on each parcel, the basis upon which the rate was calculated, the reason for the rate, and the date, time, and location of a public hearing on the proposed rate; and WHEREAS, on April 17, 2020, the City distributed notices as required by Article XIII D regarding the City Council's consideration of the proposed rate adjustments at a public hearing scheduled for June 2, 2020, to all owners of record in accordance with Article XIII D, Section 6(a)(1) of the California Constitution and Government Code Section 53755; and WHEREAS, on June 2, 2020, the City Council held a duly noticed public hearing on the proposed rates contained in this Resolution, and at that time invited oral and written comments from the public; and WHEREAS, upon close of said public hearing, the City did receive written protests to the proposed rate increases, and therefore there has been no majority protest; and WHEREAS, the City Council now desires to establish rate increases of $1.90 per month effective July 1, 2020, and an additional $1.50 per month effective July 1, 2021. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The adoption of this Resolution falls within a statutory exemption from environmental review pursuant to sections 15273, 15060(c)(2) of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA), which pertain to the establishment, modification, structuring, restructuring, or approval of rates and charges by public agencies which the public agency finds are for the purpose of meeting operating expenses, and pertain to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under CEQA Regulations. Resolution No. 2020-XXX Page 2 of 5 jmf 5/22/20 Section 2. After considering the material presented in Exhibit A, the City Council hereby finds as follows: (a) Revenues derived from the rate increases do not exceed the funds required to provide the property -related service; (b) Revenues derived from the rate increases shall not be used for any purpose other than for which the rate increases are imposed; (c) The amount of the rate increases imposed upon any parcel or person does not exceed the proportional cost of services attributable to the parcel; (d) The rate increases are for services actually used by, or immediately available to, the owner of the property upon which the rate increases are imposed; and (e) The rate increases will not be expended for general governmental purposes, but only for the increased costs of composting green waste. Section 3. After receiving public comment and testimony on the rate increases for residential/curbside cart refuse service, and absent a majority protest to the proposed rate increases, the increases are hereby approved to establish rate increases of $1.90 per month effective July 1, 2020, and an additional $1.50 per month effective July 1, 2021. Section 4. The rate increases for residential/curbside cart refuse service shall be implemented beginning July 1, 2020, and on July 1, 2021. The scheduled adjustments authorized by this Section may be made by the City Manager or designee, without conducting another public hearing or any action on the part of the City Council. Section 5, This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. To the extent any other resolution of the City conflicts with the provisions set forth herein, it is the explicit intent of the City Council that the provisions of this Resolution shall supersede. ADOPTED this day of 12020. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: 7K" �� John M. Funk Assistant City Attorney Resolution No. 2020-XXX Page 3 of 5 jmf 5/22/20 NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby certify the attached Resolution No. 2020 - to be the original resolution adopted by the City Council of the City of Santa Ana on 12020. Date: Clerk of the Council City of Santa Ana 'Ume MMa Mal Page 4 of 5 �. 1 jmf 5/22/20 EXHIBIT A The increased cost of composting green waste, in place of use as Alternative Daily Cover is $570) per ton. The estimated 30,492(2) tons of green waste at $57 per ton equals the total increased cost per year $1,738,044(3). When spread over the 42,105(4) customers, the cost is $3.44(5) per customer, per month. The City negotiated a $.04(6) reduction per month, as well as tiered implementation, in which customers pay $1.90(7) per month for the first year, and an additional $1.50(e) per month in the second year. The final result is a monthly increase of $3.40 during the second year. This cost is a direct pass -through to Waste Management to pay for the composting process, and will not be used for other purposes. RATE INCREASE CALCULATION Proposed Cost/Ton at Tierra Verde $90.13 Current Cost/Ton at Tierra Verde — $33.13 Proposed Increase/Ton (1) $57.00 Estimated Tons to be Composted (2) X 30,492 Total Incremental Cost/Year (3) $1,738,044.00 Number of Residential Units (4) _ 42,105 Cost per Unit per Year $41.28 Months per Year - 12 Cost per Unit per Month (5) $3.44 Negotiated Adjustment (6) Negotiated Cost per Unit/Month to be Increased over a Two-year Period — $0.04 $3.40 Increase effective July 1, 2020 (7) $1.90 Increase effective July 1, 2021 (8) $1.50 Resolution No. 2020-XXX Page 5 of 5 Z� • EXHIBIT 2 CALIFORNIA LEGISLATIVE MANDATES The State of California has established a variety of mandates (Assembly Bills 939, 341, 1826, among others) requiring all jurisdictions (i.e., responsible cities, counties, and regional agencies) in the State to comply with measures to manage and control solid waste generation. Included in these mandates are requirements to divert a minimum of 50% of waste from landfills and to implement recycling programming. One of the newest State mandates, Assembly Bill 1594 (AB 1594), went into effect on January 1, 2020. AB 1594 eliminates diversion credit for green waste that is sent to County landfills as Alternative Daily Cover (ADC) and reclassifies it as waste disposal for purposes of measuring a jurisdiction's compliance with State mandates. WHAT IS ADC? The State of California defines Alternative Daily Cover (ADC) as "...cover material other than earthen material placed on the surface of ... a municipal solid waste landfill at the end of each operating day." ADC helps to control vectors, fires, odors, blowing litter, and scavenging. (See https://www.calrecycle.ca.gov/Igcentral/basics/adcbasic for additional information.) CITY OF SANTA ANA REFUSE COLLECTION SERVICES The City of Santa Ana has contracted with Waste Management (WM) to provide citywide refuse collection services. Prior to the implementation of AB 1594, green waste collected from the City's customers by WM was minimally processed by a third -party green waste facility, transferred to landfills to be used as ADC, and the City received diversion credit. Composting green waste is an alternative that will allow the City to continue receiving diversion credit under the new restrictions of AB 1594. However, this process is more costly. EXHIBIT 3 SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED AGREEMENT FOR COLLECTION AND HANDLING OF SOLID WASTES GENERATED, PRODUCED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA This SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED AGREEMENT FOR COLLECTION AND HANDLING OF SOLID WASTES GENERATED, PRODUCED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA ("Second Amendment') is made and entered into this 17th day of March, 2020 by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("CITY") and Waste Management Collection and Recycling, Inc., a California corporation dba Waste Management of Orange County ("CONTRACTOR"). RECITALS A. The Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989, Division 30 of the California Public Resources Code, commencing with Section 40000 ("CIWMA"), declares that it is within the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions. B. In the opinion of the City Council of the City of Santa Ana, the public health, safety and well-being require that the collection, transportation, and recycling, diversion by means of composting, mulching and/or transforming, and disposal of Solid Waste, including, but not limited to, the frequency and means of such collection, transportation and recycling, yard waste diversion or disposal, and the charges and fees therefore, be provided by contract to a qualified contractor. C. On June 30, 1993, CITY and CONTRACTOR entered into an agreement for such Solid Waste collection and handling. D. Since the execution thereof, CITY and CONTRACTOR jointly concurred that it would be in the best interest of the CITY and the residents therein that the Original Agreement be revised to provide for Solid Waste collection, recycling and disposal of Curbside Service Units by means of automated Solid Waste collection vehicles and Solid Waste collection and recycling plastic carts. E. On June 1, 1996, CITY entered into an agreement entitled "Amended and Restated Agreement for Collection and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" with Great Western Reclamation, a division of CONTRACTOR, to effectuate the new curbside service collection program. F. On June 19, 1997, CITY entered into an Agreement entitled "Second Amended and Restated Agreement for the Collection and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" with Great Western Reclamation, a division of CONTRACTOR, to clarify the responsibilities associated with the collection, handling, and processing of solid waste collected by CONTRACTOR. Page I of 4 G. On April 3, 2005, CITY entered into an Agreement entitled "Third Amended and Restated Agreement for the Collection and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" with USA Waste of California, Inc., a division of CONTRACTOR, in order to, among other things: (i) extend the term of the Agreement to June 30, 2018, (ii) incorporate new programs to increase recycling and reduce illegal disposal of used oil, as well as to reduce illegal dumping and litter throughout the CITY and (iii) include measures to ensure continued compliance with the 50% diversion requirements as imposed by the State of California. H. On June 20, 2017, CITY entered into a Fourth Amended and Restated Agreement with USA Waste of California, Inc., a division of CONTRACTOR, to incorporate the provisions of previous amendments and to clarify, update and realign other provisions of the Agreement, No. A-2006-071-01 ("Fourth Amended Agreement") L Effective December 5, 2017, the Parties entered into an extension of the Fourth Amended Agreement, No. A-2017-342, and added certain other provisions, including new programs to increase recycling throughout the CITY, measures to ensure continued compliance with state diversion requirements, and clarification of CONTRACTOR's correct legal name. The term of the Fourth Amended Agreement was extended through June 30, 2020 with provision for extension through June 30, 2021 by mutual agreement of the Parties. J. On December 18, 2018, the Parties entered into an Amendment to the Fourth Amended Agreement, No. A-2017-342-01, to provide reduced rate commercial organic waste recycling services. K. On June 4, 2019, the Parties mutually agreed to extend the term of the Fourth Amended Agreement through June 30, 2021, L. The Fourth Amended Agreement remains in effect, and the Parties now wish to further extend the term of the Fourth Amended Agreement and include certain other provisions in accordance with Assembly Bill 1594. The Parties therefore agree: 1. EFFECTIVENESS OF SECOND AMENDMENT CONTINGENT: This Second Amendment shall become effective only upon (1) the absence of a majority protest following the completion of the procedures set forth in Article XIII D, Section 6 of the California Constitution and (2) subsequent approval by resolution of the City Council of the City of Santa Ana of the rate increases described in Section 3 below. 2. 'TERM OF CONTRACT: The term of the Fourth Amended Agreement shall be extended from June 30, 2021 through June 30, 2022 should the Second Amendment become effective as set forth in Section 1. 3. GREEN WASTE MATERIAL DISPOSAL FEE: Assembly Bill 1594 mandates that as of January 1, 2020, the use of green waste material as alternative daily cover no longer constitutes diversion through recycling and will instead be considered disposal in terms of measuring a jurisdiction's annual per capita disposal rate. As a result, CITY has determined it Page 2 of 4 60B-11 must make alternative final disposition of the CITY's green waste through composting. Therefore, the CITY will experience an increase in CITY's per ton green waste collection, processing and disposal cost, which necessitates an increase to the service fee on residential units for green waste material collection, processing and disposition by CONTRACTOR. a. Effective July 1, 2020, there shall be an increase of $1.90 to the monthly service fee per each residential unit for green waste materials collection, processing and disposal. Effective July 1, 2021, the monthly service fee shall increase by an additional $1.50 per each residential unit for green waste materials collection, processing and disposal. b. Final disposition of the green waste will occur at the Tierra Verde Industries composting facility, located in the City of Irvine. CONTRACTOR warrants that the proposed service fee increases are necessary to compensate CONTRACTOR for the actual cost paid by CONTRACTOR to Tierra Verde upon delivery of green waste materials to Tierra Verde. CONTRACTOR shall notify CITY in writing within 30 days if a lower cost option becomes available for green waste materials collection, processing and disposal at another facility in Orange County or if a lower cost is provided to another jurisdiction served by CONTRACTOR in Orange County with similar or higher green waste material contamination levels, in order to initiate a cost reduction to the CITY'S ratepayers. If so desired, CITY will have the ability to choose a lower cost composting facility for the disposal of green waste in Orange County, and the rate paid by the ratepayer will be reduced accordingly provided that the CITY's chosen composting facility is properly licensed and permitted under and in compliance with applicable laws and regulations to receive, process and dispose of green waste material and provided further that CONTRACTOR's collection, transportation, transfer, processing and disposal costs do not increase as a result of CITY's selection. 4. ALL PRIOR AGREEMENTS REMAIN IN FORCE:, Except as modified by this Second Amendment, and all prior amendments and extensions, all terms and conditions of the Fourth Amended Agreement, as extended, remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Fourth Amended Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By: J16HN M. FUNK Assistant City Attorney Page 3 of 4 KRISTINE RIDGE City Manager CONTRACTOR Name: o; ttle: ice President 60B-12 FOR APPROVAL NABIL SABA Acting Executive Director Public Works Agency Page 4 of 4 60B-13 EXHIBIT 4 SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED AGREEMENT FOR COLLECTION AND HANDLING OF SOLID WASTES GENERATED, PRODUCED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA This SECOND AMENDMENT TO FOURTH AMENDED AND RESTATED AGREEMENT FOR COLLECTION AND HANDLING OF SOLID WASTES GENERATED, PRODUCED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA ("Second Amendment") is made and entered into this 16th day of June, 2020 by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("CITY") and Waste Management Collection and Recycling, hic., a California corporation dba Waste Management of Orange County ("CONTRACTOR"). RECITALS A. The Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989, Division 30 of the California Public Resources Code, commencing with Section 40000 ("CIWMA"), declares that it is within the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions. B. In the opinion of the City Council of the City of Santa Ana, the public health, safety and well-being require that the collection, transportation, and recycling, diversion by means of composting mulching and/or transforming, and disposal of Solid Waste, including, but not limited to, the frequency and means of such collection, transportation and recycling, yard waste diversion or disposal, and the charges and fees therefore, be provided by contract to a qualified contractor. C. On June 30, 1993, CITY and CONTRACTOR entered into an agreement for such Solid Waste collection and handling. D. Since the execution thereof, CITY and CONTRACTOR jointly concurred that it would be in the best interest of the CITY and the residents therein that the Original Agreement be revised to provide for Solid Waste collection, recycling and disposal of Curbside Service Units by means of automated Solid Waste collection vehicles and Solid Waste collection and recycling plastic carts. E. On June 1, 1996, CITY entered into an agreement entitled "Amended and Restated Agreement for Collection and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" with Great Western Reclamation, a division of CONTRACTOR, to effectuate the new curbside service collection program. F. On June 19, 1997, CITY entered into an Agreement entitled "Second Amended and Restated Agreement for the Collection and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" with Great Western Reclamation, a division of CONTRACTOR, to clarify the responsibilities associated with the collection, handling, and processing of solid waste collected by CONTRACTOR. Page 1 of 3 60B-14 G. On April 3, 2005, CITY entered into an Agreement entitled "Third Amended and Restated Agreement for the Collection and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" with USA Waste of California, Inc., a division of CONTRACTOR, in order to, among other things: (i) extend the term of the Agreement to June 30, 2018, (ii) incorporate new programs to increase recycling and reduce illegal disposal of used oil, as well as to reduce illegal dumping and litter throughout the CHY and (iii) include measures to ensure continued compliance with the 50% diversion requirements as imposed by the State of California. H. On June 20, 2017, CITY entered into a Fourth Amended and Restated Agreement with USA Waste of California, Inc., a division of CONTRACTOR, to incorporate the provisions of previous amendments and to clarify, update and realign other provisions of the Agreement, No. A-2006-071-01 ("Fourth Amended Agreement") I. Effective December 5, 2017, the Parties entered into an extension of the Fourth Amended Agreement, No. A-2017-342, and added certain other provisions, including new programs to increase recycling throughout the CITY, measures to ensure continued compliance with state diversion requirements, and clarification of CONTRACTOR'S correct legal name. The term of the Fourth Amended Agreement was extended through June 30, 2020 with provision for extension through June 30, 2021 by mutual agreement of the Parties. J. On December 18, 2018, the Parties entered into an Amendment to the Fourth Amended Agreement, No. A-2017-342-01, to provide reduced rate commercial organic waste recycling services. K. On June 4, 2019, the Parties mutually agreed to extend the term of the Fourth Amended Agreement through June 30, 2021. L. The Fourth Amended Agreement remains in effect, and the Parties now wish to further extend the term of the Fourth Amended Agreement and make other adjustments to the Fourth Amended Agreement. The Parties therefore agree: 1. The term of the Fourth Amended Agreement shall be extended from June 30, 2021 through June 30, 2022. 2. Effective July 1, 2020, Section 14(a)(3) of the Fourth Amended Agreement, entitled "Yard Waste Collection and Recycling Plastic Carts," is deleted in its entirety. 3. Except as modified by this Second Amendment, and all prior amendments and extensions, all terms and conditions of the Fourth Amended Agreement, as extended, remain in full force and effect. signatures appear on next page Page 2 of 3 60B-15 IN WITNESS WBEREOF, the parties hereto have executed this Second Amendment to the Fourth Amended Agreement on the date and year first written above. ATTEST DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney By: W�: 'M,. -f.L RYIN M. FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL NABIL SABA Executive Director Public Works Agency Page 3 of 3 60B-16 CITY OF SANTA ANA KRISTINE RIDGE City Manager CONTRACTOR Name: Title: