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File Number: 15-196 <br />ACI requested similar rate increases, based on an allocation of tons processed at the MRF, <br />from the cities of Alameda and Livermore. These rate increase requests are dependent upon <br />all three cities' willingness to accept ACI's request and continued use of the MRF facility. If <br />one or more of the cities does not participate, the cost structure and associated rate request <br />could change substantially for the other participating cities. <br />The impact of the total rate request on residential and commercial rates is as follows: <br />Table 2: Monthly Solid Waste Rates <br />Customer <br />Service Level <br />7/1/13 <br />2/1/15 <br />8.49% Increase <br />Change <br />Residential <br />20 -gallon rate <br />$20.24 <br />$21.06 <br />$22.85 <br />$1.79 <br />Residential <br />32 -gallon rate <br />$25.22 <br />$26.23 <br />$28.46 <br />$2.23 <br />Multifamily <br />1 c 1x per week <br />$93.97 <br />$97.94 <br />$106.26 <br />$8.32 <br />Commercial <br />1 c 1x per week <br />$110.58 <br />$115.01 <br />$124.77 <br />$9.76 <br />Commercial <br />3cy 1x per week <br />$334.30 <br />$347.71 <br />$377.23 <br />$29.52 <br />The City hired HF&H Consultants, LLC to provide a comprehensive and independent analysis <br />of the special rate request proposal. HF&H confirms that the calculations provided by ACI are <br />mathematically accurate and that the increases reflect the costs described in the LOU. The <br />results of the analysis are presented in Attachment B - HF&H Report. HF&H provided similar <br />analyses for the cities of Alameda and Livermore. <br />Rate Comparison <br />HF&H has provided a comparison of rates that can be used as a general guideline to evaluate <br />San Leandro rates as they relate to other cities in Alameda County (Attachment D - Rate <br />Survey). Although rates may vary for several reasons such as the residential versus <br />commercial customer mix, services offered, processing/disposal costs, and geographic <br />service area, San Leandro rates are about average for the county when the proposed rate <br />increase is applied. Residential rates for a 30-35 gallon container range from $18.10/month <br />(Emeryville) to $51.88/month (Piedmont), while ACI's proposed rate is $28.46/ month. <br />Commercial rates for a 1 -yard bin serviced one time per week range from $86.95/month <br />(Fremont) to $261.83/month (Castro Valley Sanitary District), while ACI's proposed rate is <br />$124.77/month. <br />Future Rate Impacts <br />The LOU between the International Longshore and Warehouse Union, Local 6 and Alameda <br />County Industries, LLC (Attachment C) identifies salary and benefit costs for MRF workers <br />for the next five years. The increased costs will have an impact on future rates coinciding with <br />the annual rate adjustment process. As previously mentioned, ACI projects that future rate <br />impacts associated with MRF worker unionization should be less than one percent (1 %) per <br />year for most years. <br />While the City has endeavored to keep rates as low as possible while periodically adding <br />beneficial new services to customers, future rate impacts are highly dependent on ACT's <br />overall financial health, the stability of markets for processed recyclable materials, and costs <br />associated with county and state mandates for mandatory recycling and additional waste <br />diversion. The special rate request is intended to assist ACI to come into compliance with <br />bank covenants and to ensure the overall viability of the company for the term of the contract <br />City of San Leandro Page 3 Printed on 511212015 <br />