REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, Director Department of Public Utilities BY: JAMES VERROS, Assistant Director Department of Public Utilities SUBJECT ..Title Actions pertaining to the Sixth Amendment to the Services Agreement with Orange Avenue Disposal Company: 1. Adopt a finding of Categorical Exemption, per staff determination, dated November 20, 2025, pursuant to Section 15301/Class1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; 2. Approve the Sixth Amendment to the Services Agreement with Orange Avenue Disposal Company, Inc., (OAD) to extend the term of the Agreement by one year to February 25, 2035, and to allow OAD to make future requests to materially alter the Agreement or to increase costs to the City under the Agreement which are occasioned by changes in law, legal mandates, or other legally required programs (Citywide). ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines, and approve the Sixth Amendment to the Services Agreement with Orange Avenue Disposal Company, Inc., (OAD) to extend the term of the Agreement by one year to February 25, 2035, and to allow OAD to make future requests to materially alter the Agreement or to increase costs to the City under the Agreement which are occasioned by changes in law, legal mandates, or other legally required programs. ENVIRONMENTAL FINDINGS Section 15301/Class 1 (Class 1/Existing Facilities) of the CEQA Guidelines exempts from the provisions of CEQA, projects that consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Staff prepared an environmental assessment and as reflected in the attached document, determined the project is categorically exempt. The project is exempt from the California Environmental Quality Act (CEQA) because it involves the approval of a Sixth Amendment to an existing Services Agreement between the City of Fresno and Orange Avenue Disposal Company, Inc. (OAD). Under the existing service agreement, OAD transfers, processes, and disposes of municipal solid waste, construction and demolition materials, and asphalt and concrete materials generated by residential and commercial customers within the City. The materials transferred, processed, and disposed of by the service provider are hauled directly to the processing facility located at 3457 South Cedar Avenue. The Sixth Amendment extends the term of the existing Service Agreement by one year to February 25, 2035, and will permit OAD to make future requests for material modifications to the agreement or to increase costs to the City under the Agreement which are occasioned by changes in law, legal mandates, or other legally required programs. The project constitutes a modification to an existing service agreement and does not involve the construction of new facilities, changes in land use, or any physical development. There will be no ground disturbance or expansion of an existing use. All services provided by OAD will continue to operate from existing facilities and the materials transferred, processed, and disposed of will be collected and hauled from within established service areas across the city. Accordingly, the project will not have a significant impact on the environment, as it involves the extension and amendment of an existing service agreement with negligible or no expansion of use. None of the exceptions to Categorical Exemptions outlined in the CEQA Guidelines, Section 15300.2 apply to the project. Furthermore, the proposed project is not expected to affect the environment significantly. A categorical exemption, as noted above, has been prepared for the project, and the area is not environmentally sensitive. Attachments: Categorial Exemption Sixth Amendment to Agreement