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HFH CONSULTANTS LLC II <br />201 N. Civic Drive, Suite 230 <br />Walnut Creek, California 94596 <br />Telephone: 925/977-6950 <br />Fax: 925/977-6955 <br />www.hfh-consultants.com <br />April 29, 2015 <br />Ms. Jennifer Auletta <br />Deputy Public Works Director <br />City of San Leandro <br />14200 Chapman Road <br />San Leandro, California 94578 <br />Via Emoil:jouletta@sonleandro.org <br />Subject: Special Rate Review for Alameda County Industries <br />Dear Ms. Auletta, <br />Managing Tomorrow's Resources Today <br />Robert D. Hilton, CMC <br />John W. Farnkopf, PE <br />Laith B. Ezzet, CMC <br />Richard J. Simonson, CMC <br />Marva M. Sheehan, CPA <br />Robert C. Hilton, CMC <br />HF&H Consultants, LLC (HF&H) is pleased to provide our findings to the City of San Leandro from our <br />review the special rate adjustment request resulting from Alameda County Industries' (ACI's) Materials <br />Recovery Facility (MRF) labor issues related to union activities and the City of San Leandro's living wage <br />ordinance. This report is organized into three sections: <br />1. Background <br />2. Scope of Work and Limitations <br />3. Findings and Recommendations <br />I. BACKGROUND <br />In February of 2000, the City of San Leandro and ACI entered into a Franchise Agreement (Agreement) <br />to provide solid waste, recyclables, and green waste collection services to businesses and residents. The <br />term of the Agreement ends January 31, 2025. <br />ACI manages collection services for the cities of Alameda and San Leandro and operates a Material <br />Recover Facility (MRF), located in San Leandro, under a sister company, Alameda County Industries, LLC. <br />In July of 2014, ACI LLC was sued by attorneys representing a class of MRF workers for possible <br />violations of the City's Living Wage Ordinance (effective September 2007). The lawsuit was subsequently <br />settled by the parties and the International Longshore and Warehouse Union (ILWU), Local 6 and ACI <br />began discussions for a collective bargaining agreement. In December of 2014, ACI agreed to hire the <br />MRF workers from the third -party staffing agency, who employed them, and started paying the City's <br />hourly living wage rate. ACI and ILWU are currently negotiating a collective bargaining agreement for <br />the MRF workers. <br />