Title
Staff Report for a City of San Leandro City Council RESOLUTION to Authorize the City Manager to Execute a Thirteenth Letter Amendment of the Franchise Agreement for Solid Waste, Recyclables, and Green Waste Services between the City of San Leandro and Alameda County Industries, Inc.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City of San Leandro City Council review and consider a request from Alameda County Industries, Inc. ("ACI") to increase rates by 7.89%, effective October 1, 2019. The request is presented in the form of a letter amendment to the Franchise Agreement for Solid Waste, Recyclables, and Green Waste Services ("Franchise Agreement") between the City of San Leandro and Alameda County Industries, Inc. The letter amendment would authorize the rate increase and include a provision that the City and ACI will discuss and consider a new annual rate adjustment process prior to any future rate increases. Staff anticipates that a proposal for a new rate adjustment process to the Franchise Agreement would be brought to the City Council for consideration before February 1, 2020.
BACKGROUND
The City of San Leandro entered into a Franchise Agreement for Solid Waste, Recyclables and Green Waste Services on February 1, 2000. The Franchise Agreement allowed for a rate adjustment each July 1, based on the Consumer Price Index for the San Francisco area and a rate analysis every five years. Amendment 10 to the Franchise Agreement (as attached), approved on July 20, 2009, changed the annual rate adjustment process to a Refuse Rate Index (RRI). The revised methodology reflects changes in cost by focusing on six cost categories within the Consumer Price Index specific to the solid waste industry: Labor; Diesel Fuel; Vehicle Replacement; Vehicle Maintenance; Disposal and All Other. Apart from special rate adjustments in 2015 related to the Materials Recovery Facility (MRF) labor issue (Amendments 11 and 12 as attached), the RRI has been ...
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