Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute Amendment No. 1 to the Franchise Agreement between the City and Alameda County Industries, Inc. (ACI) for Recyclables, Organics, and Solid Waste Collection Services
Staffreport
COUNCIL PRIORITY
* Quality of Life
* Infrastructure
SUMMARY
The purpose of the first amendment to the Franchise Agreement with Alameda County Industries, Inc. (ACI) is to include a Rate Stabilization Reserve that will allow the City to smooth annual rate adjustments for the term of the agreement in a manner that complies with applicable law.
RECOMMENDATIONS
Staff recommend that the City Council approve and authorize the City Manager to execute Amendment No. 1 to the Franchise Agreement with ACI for Recyclables, Organics and Solid Waste Collection Services.
BACKGROUND
The City executed its original agreement with ACI in 2000. To address the complex requirements of California Senate Bill 1383, which was passed in 2016 and effective January 2022, the Franchise Agreement with ACI was redesigned to meet State requirements and was executed on July 24, 2024. The new Agreement included myriad enhancements to the services provided by ACI to the City's sanitary district area that serves 60% of San Leandro waste collection customers.
Separately, Oro Loma Sanitary District serves 40% of the City of San Leandro, and that collection agreement is provided by Waste Management.
The ten-year, five-month term of the ACI Agreement (link to download 5.8MB) began on February 1, 2025, and will conclude on July 1, 2035, with an option to extend the Agreement for an additional five years.
Analysis
Staff identified that shifting ACI's existing reimbursement schedule to replace the Vehicle Impact reimbursement with a Rate Stabilization Reserve is advantageous to the City to support future rate stability. The Rate Stabilization Reserve Fund is a financial mechanism that would allow the City to smooth the annual rate adjustmen...
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