Finance Highlights 2009 0324 - Laserfiche WebLink

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