Title
Resolution to Approve and Authorize the City Manager to Execute a Fourteenth 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 Council approve and authorize the City Manager to execute 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. ("ACI").
The letter amendment would authorize ACI to increase rates by .8% to implement education, outreach and reporting requirements as required by SB1383, California's Short-Lived Climate Pollutant Reduction Strategy. The .8% increase is considered a special rate request and would be added to the contractually allowed annual rate increase of 4.89%. If the Fourteenth Letter Amendment is approved the total rate increase effective July 1, 2022 would be 5.69%.
In addition to the rate request, the amendment includes language modifying the definition of "multi-family" in compliance with state regulations, clarifies point of pickup locations, and reduces the rate change notification requirement to 30-days.
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 allows 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; ...
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