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ACI Rate Request 2 Apri16, 2009 <br />comparison indicate that ACI is allowed an 8.65% increase in residential rates at the start of the <br />second term of the Agreement. <br />The results of the review and the request to extend the Franchise Agreement for a second term of <br />ten years will be presented to the City before August 1, 2009. In addition to presenting the results <br />to Council, Staff will recommend amendments to the Agreement for the purposes of streamlining <br />the rate review process and for providing additional collection services to rate payers. <br />Analysis <br />Although the rate increase is substantial, under the provisions of the existing Agreement, ACI <br />would be allowed to adjust rates for inflation 1.2% this year and would be allowed to adjust rates <br />8.65% next year, as part of the ten-year rate comparison process. ACI will forego those increases <br />if the 10% rate increase is granted and will negotiate with staff an alternative rate adjustment <br />process that will include industry operating cost factors and a revenue sharing mechanism for <br />windfall profits in commodity prices from the sale of recyclables. This process will more <br />accurately reflect annual increases in ACI's operating costs for the second term of the <br />Agreement. <br />Current City Council Policy <br />N/A <br />Previous City Council Action(s) <br />Resolution Number 2000-8 approving a Franchise Agreement for Solid Waste Recyclables, and <br />Green Waste Services between the City of San Leandro and Alameda County Industries, Inc. <br />City Council Committee Review and Action <br />The Finance Committee reviewed the request by ACI for a ten percent (10%) rate increase on <br />Mazch 24, 2009 and recommended that the item be brought to the full City Council for a vote in <br />April. <br />Applicable General Plan Policy <br />Action 27.01-A: Source Reduction and Recycling Programs <br />Action 27.01-C: Commercial and Multi-Family Residential Programs <br />Action 27.01-D: Food Waste Recycling <br />Permits and/or Variances Granted <br />N/A <br />Environmental Review <br />N/A <br />Code Compliance Review <br />N/A <br />Board/Commission Findings <br />N/A <br />