City Council/Successor Agency/Public Finance Authority

AGENDA ITEM NO. 5. – A. CITY OF AVENAL “Pistachio Capital of the World®” SPECIAL CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING JANUAY 24, 2024; 6:00 P.M. AVENAL CITY HALL, 919 SKYLINE BLVD., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING: Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join. MINUTES CALL TO ORDER & PLEDGE OF ALLEGIANCE: by Mayor Preciado at 5:37 p.m. ROLL CALL: Councilmembers: Ricardo Verdugo, Pablo Hernandez, Luis Gravelle, Mayor Pro Tem Alejandro Ramirez. Mayor Alvaro Preciado. ABSENT: None. STAFF: Lopez, Ortiz, Bermudez. LEGAL COUNCEL: Moses Diaz. CITY CLERK: Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency. The City Council went into Closed Session at 6:01 p.m. CLOSED SESSION: (City/Successor Agency): It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session. A. Personnel (Government Code §54957(b)). Consider Public Employee Performance Evaluation for the Positions of: • City Manager Mayor Preciado re-opened City Council meeting at 7:19 p.m. with nothing to report out of Closed Session. OLD BUSINESS: A. Consider Approval of Municipal Solid Waste Collection Agreement between the City of Avenal and Mid- Valley Disposal, LLC, and adjacent services (Resolution 2024-02). Antony Lopez, City Manager reported that item continued, and it was originally presented on January 11, 2024, at a regular City Council meeting. In the packet for said meeting, included a version of the agreement which had been vetted by the City Attorney’s office to include a fixed ten (10) year term to the agreement between the City and MidValley, with one-year extensions thereafter to ensure a continuity of service if a new agreement was not reached. City Staff was contacted by Mid-Valley representatives that a ten-year fixed term was not viable for their financial investments to the community and to meet the new requirements per SB-1383. The cost analysis and fees they presented to City Staff as part of the Prop 218 rate study, was under the assumption of a rolling-term agreement that would help Mid-Valley secure financing for new equipment and ensure lower rates for the customers. After this revelation, Staff presented both versions of the language for a fixed and a rolling term to the Council. Mid- Valley President and CEO, Joseph Kalpakoff, was also present to explain Mid-Valley’s position on needing a rolling term agreement, and the possibility of the rates increasing by $2-3 dollars should the agreement be only fixed to ten years. At the City Attorney’s urging, the Council tabled the item to the next Council meeting, pending further review and changes to the current agreement. Attached is the latest version of the agreement, which includes a recital that makes clear that this agreement is a one-time sort of arrangement to assist the contractor with special financing due to recent legislative needs Joint Meeting City Council/Successor Agency/PFA – October 13, 2022 Page 2 of 2 of today and will not be a common practice. It also adds provisions that further clarify means for ending the agreement’s rolling term basis. Lastly, Mid-Valley has also proposed an alternative term to a ten-year rolling-term, instead proposing an initial five-year term, with the renewal/rolling provision starting in 2029 which would make the initial term 12 years, with rolling seven (7) year rolling term. Staff is presenting the updated agreement, with an option to adopt it with either a 10 year or 7 year rolling term. Should council decide to instead approve the agreement with a fixed 10-year term, the Prop 218 study may need to redo account for possible cost increases alluded to by Mid-Valley. In either case, Staff recommends adopting Resolution 2024-02, authorizing the City Manager to execute a Municipal Solid Waste Collection Agreement with Mid Valley Disposal, Inc. Below is the original staff report with supporting information on the new agreement with Mid-Valley After a lengthy discussion, the following action was taken. RESOLUTION 2024-02: A RESOLUTION OF THE CITY AUTHORIZING ENTRY INTO SOLID WASTE COLLECTION AGREEMEN. Mayor Pro Tem Ramirez motion to authorizing the City Manager to execute a Municipal Solid Waste Collection Agreement with Mid Valley Disposal, Inc. with supporting information on the new agreement with Mid-Valley, seconded by Councilman Gravelle and carried. Roll Call Vote: AYES: Ramirez, Gravelle Verdugo, Hernandez, Preciado. NOES: None. ABSENT: None. ABSTAIN: None. ADJOURNMENT: There being no further business the City Council meeting was adjourned at 7:49 p.m. Respectfully submitted, Maria Ortiz, City Clerk