TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
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First Amendment to Agreement with CR&R Incorporated for Integrated Solid Waste Management suspending the Road Mitigation Payment and updating fees paid to the City
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2. SUMMARY
The City proposes to amend its Restated and Amended Agreement No. 5444.B with CR&R Incorporated, suspending the existing Road Mitigation Payment and replacing the payment with a Franchise Fee based on the demonstrated value of CR&R Incorporated's extraordinary use of the public right-of-way used for solid waste collection, effective July 1, 2026. The new encroachment-based Franchise Fee will remain at the same amount as the current Road Mitigation Payment, with ongoing Consumer Price Index escalation, resulting in no impact to established solid waste collection rates.
3. RECOMMENDED ACTION
recommendation
Approve First Amendment to Agreement with CR&R Incorporated to suspend the existing Road Mitigation Payment and adopt a new encroachment-based Franchise Fee set at the same annual dollar amount as the Road Mitigation Payment currently in effect; and authorize the Mayor and City-Clerk to execute on behalf of the City.
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4. FISCAL IMPACT
None
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. DISCUSSION AND BACKGROUND
The City and CR&R Incorporated have maintained a solid waste franchise agreement since 2009. The current Restated and Amended Agreement No. 5444.B was approved by the City Council and executed in February 2024. The Agreement establishes a ten-year term commencing March 1, 2024, and expiring February 28, 2034, with a mutual option to extend for one additional five-year period upon 24 months' prior written notice.
In addition to providing services, Agreement No. 5444.B requires CR&R to ma...
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