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RESOLUTION NO. 2002-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA INCREASING THE AMOUNT OF THE SOLID WASTE PROGRAM SURCHARGE ESTABLISHED PURSUANT TO SECTION 10 OF THE SECOND AMENDED AND RESTATED AGREEMENT FOR THE COLLECTION OF SOLID WASTE GENERATED AND/OR ACCUMULATED IN THE CITY OF SANTA ANA MV 05-14-02 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: The City of Santa Ana is currently engaged in a contract with Waste Management Collection and Recycling Inc.(Contractor) whereby Contractor is the exclusive provider of the collection, transportation disposal of solid waste within the corporate limits of the City of Santa Ana. Pursuant to the exclusive contract, Contractor pays to the City of Santa Ana a solid Waste Program Surcharge based upon the gross receipts received by contractor. The program surcharge revenue is used to pay for the cost to administer the refuse and recycling program. Administrative costs include but are not limited to salaries of staff and fixed costs. The estimated costs of the program are set forth in Refuse Collection Resource Sheet Exhibit A located in the Public Works Agency and is incorporated herein by this reference as though fully set forth. The fee established by this resolution is estimated to collect $1.5 million per year. Eo The amount of the program surcharge is currently set at seven and one half (71/2%) percent of gross receipts of Contractor for business and apartment service. F. The surcharge percentage has remained the same since 1997. Go The cost to provide administration of refuse and recycling program has increased above the cost currently collected pursuant to the program surcharge. Resolution No, 2002-045 Page 1 of 3