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10 <br /> APPROVED AND <br /> CITY OF SAN LEANDRO FORWARDED <br /> TO CITY COUNCIL <br /> STAFF REPORT <br /> Jo i :Jermanis <br /> Ci el er Com" 7 <br /> Date: January 27, 2000 (to-ta) <br /> i U <br /> To: John J. Jermanis, City Manager <br /> From: Wandzia Grycz, Assistant City Manager <br /> Subject: Privatization of Refuse Service <br /> SUMMARY AND RECOMMENDATION <br /> • It is recommended that the City Council approve moving forward with a proposed franchise <br /> agreement between the City and Alameda County Industries(ACI). <br /> • This item has been placed on the City Council's January 31, 2000, agenda for Council <br /> consideration and action. <br /> BACKGROUND <br /> • In August 1999, the City was notified that a new company was forming, Alameda County <br /> Industries (ACI), which was interested in buying San Leandro Disposal and San Leandro <br /> Recycling. <br /> • Sole source negotiations with ACI representatives commenced to identify whether it was feasible <br /> to privatize all refuse services in the City's service area. <br /> • A competitive bid process would have been possible only had the City Council chosen to <br /> condemn the existing contracts with San Leandro Disposal and San Leandro Recycling, an action <br /> which was not recommended. <br /> DISCUSSION <br /> • The negotiations on the major deal points with ACI have been concluded. <br /> • The proposed term of the franchise agreement will be for ten years with the option to renew for <br /> an additional ten-year period if performance is satisfactory. <br /> • There were no increases in the City's refuse and recycling rates for the last seven years. As a <br /> result, initial negotiations identified that significant increases in service rates would have been <br /> justifiable. <br /> • To mitigate the impact of such increases on the customers, rate adjustments in some of the <br /> customer classifications(residential, commercial-industrial, multi-family, etc.)were negotiated. <br /> I <br />