Title
Staff Report for a Resolution Authorizing the City Manager to Execute the 12th Amendment to the Franchise Agreement Between the City of San Leandro and Alameda County Industries, Inc.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council, in accordance with Section 13.6 of the Franchise Agreement between the City of San Leandro and Alameda County Industries, Inc. (ACI), authorize the City Manager to execute the 12th Amendment to the Franchise Agreement, subject to approval as to form by the City Attorney.
BACKGROUND
On January 20, 2015 the City Council approved Resolution 2015-010, the 11th Amendment to the Franchise Agreement between the City and ACI. The amendment clarified unresolved issues related to the City's Living Wage Ordinance and ensured that effective December 1, 2014, ACI would provide all workers at its Material Recovery Facility (MRF) with wages and benefits that comply with the Living Wage Ordinance. The 11th Amendment to the franchise agreement also provided for a $1,109,706.74 advance from the City to ACI to be repaid in forty equal installments of $31,441.00 and cost recovered with an associated 2.14% rate increase effective July 1, 2015.
The 10th Amendment to the franchise agreement provides for an annual rate adjustment using a Refuse Rate Index (RRI) rather than a Consumer Price Index for determining prior year cost increases. The adjustment of rates as determined by the RRI is 2.05%, effective July 1, 2015.
In anticipation of future labor costs at the MRF, ACI submitted a request for special rate review on October 1, 2014. At that time, workers at the MRF notified ACI of their intent to collectively bargain. A collective bargaining agreement would provide increased wages for MRF workers as well as medical benefits, retirement benefits, paid leave, and higher workers' compensation. The agreement increases MRF employees' wages and benefits beyond the requirements of the City's Living Wage...
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