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Finance Highlights 2009 0324
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Finance Highlights 2009 0324
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4/3/2009 11:11:28 AM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Committee Highlights
Document Date (6)
3/24/2009
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_CC Agenda 2009 0406
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\City Clerk\City Council\Agenda Packets\2009\Packet 2009 0406
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Committee to authorize going to Council with a 10% increase to rates effective July 1, 2009 as <br />well as authorize staff to negotiate a new rate adjustment formula and related items for the <br />second ten-year term. Staff is proposing the following contract changes: eliminate five year rate <br />review process; replace CPI formula for annual rate increases with afive-factor Refuse Rate <br />Index; create a formula so that any improvement in the value of recyclable materials will be <br />credited to ratepayers; enhance services that will not require additional rate increases (e.g. <br />curbside recycling of batteries, refrigerators, and electronics); and ACI to replace existing fleet <br />with clean fuel vehicles. There are several benefits associated with the proposed changes, e.g. <br />future increases to cost would be more accurate, the removal of the 5 year rate review process <br />should prevent significant increases in 2010 and 2015, and ACI should remain financial solvent <br />through the term of the contract. Bakaldin also informed the Committee that even with a 10% <br />increase to the rates, the City of San Leandro would still have one of the lowest rates in Alameda <br />County. <br />Councilmember Prola stated that he has spoken to Louie Pellegrini of ACI and does not have a <br />problem with the increase to the current rates however did state he would like for the new <br />contract to allow ACI to pick-up trash from the San Leandro Unified School District. Mayor <br />Santos stated that due to the two school districts within the city limits, this may not be feasible. <br />Mayor Santos inquired about the state mandate to recycle 75% of trash. Mr. Pellegrini stated <br />that the City of San Leandro is at 66% of the state mandate and eliminating the recycle service <br />would decrease the percentage but would not put the City in jeopardy of going again the state <br />mandate. <br />Committee Recommendation <br />Committee recommended taking to Council for approval. <br />2. Update on Proposed Davis Street Family Resource Center Funding <br />Hollister provided the Committee with a history of Davis Street Family Resource Center's <br />(DSFRC) request for assistance to purchase the building and land they currently are located. <br />Their request of $500,000 from the City was approved by Council in a 4-3 vote to use <br />Community Development Building Grant (CDBG) funding. DSFRC was successful in <br />extending the closing of escrow to June 30, 2009 however Community Development Director <br />Sims stated that there are no CDBG funds available until July 15, 2009. Representative Rose <br />Padilla-Johnson of DSFRC stated that she would attempt to extend the escrow for 30 more days <br />however there will be a risk of losing money from grants, which also have a deadline date of <br />June 30, 2009. Sims stated that San Leandro Redevelopment Agency (RDA) funds may be used <br />and then repaid with CDBG funds after July 15, 2009. Staff will take two proposals to Council <br />on Monday, April 6, 2009. One proposal would be to use CDBG funds, should DSFRC be <br />successful in extending the escrow 30 days; and the second proposal would be to use RDA funds <br />and then receive repayment from CDBG funds. <br />3. Committee Member Comments <br />Councilmember Prola thanked Mr. Pellegrini for wanting to work with the City as well as the <br />school district. Prola would like staff to research the possibility of adding the district to the ACI <br />contract as well as utilizing other available funds. <br />2 <br />
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