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Home My WebLink AboutRES-26-7549 (RATE ADJUSTMENT) Page 1 of 4 RES-26-7549 CITY OF HERMOSA BEACH RESOLUTION NO. 26-7549 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING THE ANNUAL RATE ADJUSTMENT TO THE MAXIMUM RATES FOR SOLID WASTE SERVICES PURSUANT TO THE INTEGRATED SOLID WASTE MANAGEMENT SERVICES AGREEMENT WITH ARAKELIAN ENTERPRISES, INC. (DBA ATHENS SERVICES) WHEREAS, the City of Hermosa Beach (“City”) is authorized to provide for the collection, transportation, and disposal of solid waste within its jurisdiction pursuant to its police power under the California Constitution (Section 7 of Article XI) and applicable provisions of state law; and WHEREAS, the City entered into an Integrated Solid Waste Management Services Agreement as amended (“Agreement”) with Arakelian Enterprises, Inc., dba Athens Services (“Athens”) effective July 1, 2013 to provide solid waste collection services to residential and commercial customers; and WHEREAS, the Agreement authorizes Athens to request annual adjustments to the maximum rates charged to customers based on a defined formula, subject to City Council approval; and WHEREAS, the Agreement provides that annual rate adjustments shall be calculated based on the percentage change in the Consumer Price Index (“CPI”) for Trash and Garbage Collection, plus one additional percent; and WHEREAS, the City conducted a Proposition 218 proceeding on December 13, 2022, and provided notice to property owners and ratepayers regarding proposed solid waste rates, including disclosure of future annual CPI-based adjustments; and WHEREAS, following the Proposition 218 proceeding, the City Council adopted a resolution approving the solid waste rate structure (including formula- based annual CPI adjustments); and WHEREAS, Athens submitted a timely request for an annual rate adjustment for FY 2026–2027 in accordance with the Agreement; and Docusign Envelope ID: 4744C903-90C3-82B3-830A-CD38F096B335 Page 2 of 4 RES-26-7549 WHEREAS, City staff reviewed the requested adjustment and determined that it complies with the formula and methodology set forth in the Agreement and the previously approved rate structure; and WHEREAS, the proposed adjustment results in an approximate five percent (5%) increase in maximum rates effective July 1, 2026; and WHEREAS, the City Council desires to approve the annual adjustment as required under the Agreement and consistent with the previously approved rate structure. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The recitals above are true and correct, and are hereby incorporated herein by reference. SECTION 2. Approval of Annual Rate Adjustment. The City Council hereby approves the annual adjustment to the maximum solid waste service rates effective July 1, 2026, as set forth in the rate schedule (attached hereto as Exhibit A and incorporated herein by reference) and as calculated pursuant to Section 6.4 of the Agreement. SECTION 3. Findings. The City Council hereby finds and declares as follows: a. Prior Proposition 218 Compliance. The City previously complied with Proposition 218 (Article XIII D of the California Constitution) by providing notice and conducting a public hearing regarding solid waste service rates, including disclosure of the methodology for annual CPI-based adjustments. b. Implementation of Approved Rate Structure. The annual rate adjustment approved herein constitutes implementation of a previously approved rate structure and formula, and does not establish a new or increased fee requiring a new Proposition 218 notice and protest hearing. c. Formula-Based Adjustment. The rate adjustment is calculated pursuant to a formula based on the percentage change in the applicable CPI for Trash and Garbage Collection, plus one percent, as authorized in the Agreement and previously disclosed to ratepayers. The City Council finds Docusign Envelope ID: 4744C903-90C3-82B3-830A-CD38F096B335 Page 3 of 4 RES-26-7549 that the CPI percentage applied reflects the year-over-year change in the applicable index for the period used by the City and its consultant, and that the methodology used is consistent with the Agreement. d. Within Authorized Time Period. The adjustment falls within the authorized multi-year period for CPI-based adjustments. Although prior materials referenced a longer authorization period, the City is currently within a five-year period consistent with California Government Code section 53756; and therefore within a legally defensible timeframe for implementation of formula- based adjustments. e. No Structural Changes. The City is not modifying the rate structure, cost allocation methodology, service levels, or fee components, and is not imposing any new charges. f. Cost of Service. The adjusted rates continue to reflect the reasonable cost of providing solid waste services and comply with the substantive requirements of the California Constitution (Section 6(b) of Article XIIID), including proportionality and cost-of-service limitations. SECTION 4. Ministerial Implementation Findings. The City Council further finds and declares: a. Ministerial Action. The approval of the annual rate adjustment is ministerial in nature and limited to verification that the adjustment complies with the formula set forth in the Agreement and previously approved rate structure. b. No Discretionary Rate-Setting. The City Council is not exercising independent discretion to establish new rates, but is implementing a contractual adjustment mechanism previously authorized. c. Contractual Compliance. Approval of the adjustment satisfies the City’s obligation under the Agreement to review and approve rate adjustments calculated in accordance with the contractual formula. SECTION 5. Legislative Findings. The City Council further finds that: (a) this action is a lawful exercise of the City’s police power and contractual authority; (b) the rate adjustment is not a tax but a fee for solid waste services; and (c) the action is consistent with applicable law and prior City approvals. Docusign Envelope ID: 4744C903-90C3-82B3-830A-CD38F096B335 Page 4 of 4 RES-26-7549 SECTION 6. California Environmental Quality Act (“CEQA”). The City Council finds that this action is not a project under CEQA pursuant to CEQA Guidelines sections 15378(b)(4) and (5), as it involves a government funding mechanism and administrative activity that will not result in a direct or indirect physical change in the environment. SECTION 7. Severability. If any section or provision of this Resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Resolution shall remain valid. The City Council hereby declares that it would have adopted this Resolution, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. SECTION 8. Certification. The City Clerk shall certify to the passage and adoption of this Resolution; cause the same to be entered among the original resolutions of the City; and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which time same is passed and adopted. SECTION 9. Effective Date. This Resolution is effective immediately upon adoption. PASSED, APPROVED and ADOPTED on this 26th day of May 2026. ______________________________________________________________________________ Mayor Mike Detoy PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM: _______________________________ ________________________________ Martha Alvarez Jason Baltimore City Clerk Interim City Attorney Docusign Envelope ID: 4744C903-90C3-82B3-830A-CD38F096B335 State of California ) County of Los Angeles ) ss City of Hermosa Beach ) May 28, 2026 Certification of Council Action RESOLUTION NO. RES-26-7549 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING THE ANNUAL RATE ADJUSTMENT TO THE MAXIMUM RATES FOR SOLID WASTE SERVICES PURSUANT TO THE INTEGRATED SOLID WASTE MANAGEMENT SERVICES AGREEMENT WITH ARAKELIAN ENTERPRISES, INC. (DBA ATHENS SERVICES) I, Martha Alvarez, City Clerk of the City of Hermosa Beach, do hereby certify that the above and foregoing Resolution No. RES-26-7549 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 26th day of May 2026, and passed by the following vote: AYES: MAYOR DETOY, MAYOR PRO TEMPORE KEEGAN, COUNCILMEMBERS JACKSON, FRANCOIS, and SAEMANN NOES: NONE ABSTAIN: NONE ABSENT: NONE ________________________________ Martha Alvarez City Clerk Docusign Envelope ID: 4744C903-90C3-82B3-830A-CD38F096B335