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File Number: <br />TO: <br />FROM: <br />BY: <br />City of San Leandro <br />Meeting Date: May 18, 2015 <br />15-196 <br />City Council <br />Chris Zapata <br />City Manager <br />Debbie Pollart <br />Public Works Director <br />Staff Report <br />Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.1. <br />FINANCE REVIEW: Not Applicable <br />TITLE: Staff Report for a Resolution Authorizing the City Manager to Execute the <br />12th Amendment to the Franchise Agreement Between the City of San <br />Leandro and Alameda County Industries, Inc. <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council, in accordance with Section 13.6 of the Franchise <br />Agreement between the City of San Leandro and Alameda County Industries, Inc. (ACI), <br />authorize the City Manager to execute the 12th Amendment to the Franchise Agreement, <br />subject to approval as to form by the City Attorney. <br />BACKGROUND <br />On January 20, 2015 the City Council approved Resolution 2015-010, the 11th Amendment to <br />the Franchise Agreement between the City and ACI. The amendment clarified unresolved <br />issues related to the City's Living Wage Ordinance and ensured that effective December 1, <br />2014, ACI would provide all workers at its Material Recovery Facility (MRF) with wages and <br />benefits that comply with the Living Wage Ordinance. The 11th Amendment to the franchise <br />agreement also provided for a $1,109,706.74 advance from the City to ACI to be repaid in <br />forty equal installments of $31,441.00 and cost recovered with an associated 2.14% rate <br />increase effective July 1, 2015. <br />The 10th Amendment to the franchise agreement provides for an annual rate adjustment <br />using a Refuse Rate Index (RRI) rather than a Consumer Price Index for determining prior <br />year cost increases. The adjustment of rates as determined by the RRI is 2.05%, effective <br />July 1, 2015. <br />In anticipation of future labor costs at the MRF, ACI submitted a request for special rate <br />review on October 1, 2014. At that time, workers at the MRF notified ACI of their intent to <br />collectively bargain. A collective bargaining agreement would provide increased wages for <br />MRF workers as well as medical benefits, retirement benefits, paid leave, and higher workers' <br />City of San Leandro Page 1 Printed on 511212015 <br />