Finance Highlights 2009 0324 - Laserfiche WebLink

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3/24/2009 Next Steps Staff recommends that the City Council: • Authorize a letter amendment far a 10% race increase effective July 1, 2009, in lieu of the annual CPI adjustment • Authorize staff to negotiate a new rate adjustment formula and related items for the second ten-year term • Authorize staff to present the negotiated franchise amendments as part of the contract extension approval process (City Council must agree to ten- yearextension by August 1, 2009) ~ 1 Proposed Contract Changes • Eliminate the five year rate review process, which would have resulted in a 9% increase in residential rates in 2010 • Replace the CPI formula for annual rate increases with alive-factor Refuse Rate Index • Create a formula so that any improvement in the value of recyclable materials will be credited to ratepayers • Enhance services to customers that will not require additional rate increases (e.g. curbside recycling of batteries, refrigerators, and electronics) • ACI to replace existing fleet with clean fuel ~` ~ -~ vehicles .~ Benefits • Rates will adjust based on well-defned factors • The RRI will reflect ACI's cost increases more accurately • Increases in recycling revenues will offset future rate increases • Removal of 5 year rate review process should prevent significant increases in 2010 and 2015 • ACI should remain financially solvent through the term of the controct Alameda County Refuse Rates ~ i y 9a1H In enRCl Fabr 1 ZIM9 JZ oMn cart of Abmeda 1 9 OI A0. 4•,: of e•rv.e~e z2. .1 of Dubin SI].5 al Em viq® 11.2 of F.emonf 32. 1 olN wwd S2J] of Livermore of HewaM1 20 ~ o. o~,and zo sl of vieamonl SA~.S of P~ro,~,lon 15 z r el L,ryo~ ~ ..1 I,e~~ 5~ a,l,~l lo., oral ',1nc1 L]Ara I)9 hmed•Ceun McAkn Ral• 1!1 . ro+. an. z