Title
Staff Report for a City of San Leandro City Council Resolution Authorizing the City Manager to Execute a Fourteenth Letter Amendment of the Franchise Agreement to Modify the Annual Rate Adjustment Methodology 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 modify the Franchise Agreement for Solid Waste, Recyclables, and Green Waste ("Franchise Agreement") between the City of San Leandro and ACI. The request is presented as Amendment Fourteen to the Franchise Agreement and would modify the annual rate adjustment methodology for rates effective July 1, 2020, and thereafter for the term of the Franchise Agreement. Amendment Fourteen would also modify the definition of "Multi-Family Residence" and clarify point of pickup locations for multi-family residences.
BACKGROUND
The City of San Leandro entered into a Franchise Agreement with ACI for Solid Waste, Recyclables, and Green Waste Services on February 1, 2000. It will expire in January 2025. The Franchise Agreement allowed for a rate adjustment July 1 of each year, based on the Consumer Price Index for the San Francisco Bay area, as well as 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). That revised methodology was created to reflect 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 Material Recovery Facility labor issue[DP1], [WL2]as well as the special rate adjustment last year, the RRI has been used to ...
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