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City of San Leandro <br />Meeting Date: June 17, 2019 <br />Staff Report <br />Agenda Section:File Number:19-198 ACTION ITEMS <br />Agenda Number:10.B. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Debbie Pollart <br />Public Works Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for a City of San Leandro City Council RESOLUTION to Authorize <br />the City Manager to Execute a Thirteenth Letter Amendment of the Franchise <br />Agreement for Solid Waste, Recyclables, and Green Waste Services between <br />the City of San Leandro and Alameda County Industries, Inc. <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City of San Leandro City Council review and consider a request from <br />Alameda County Industries, Inc. (“ACI”) to increase rates by 7.89%, effective October 1, 2019. <br />The request is presented in the form of a letter amendment to the Franchise Agreement for Solid <br />Waste, Recyclables, and Green Waste Services (“Franchise Agreement”) between the City of <br />San Leandro and Alameda County Industries, Inc. The letter amendment would authorize the rate <br />increase and include a provision that the City and ACI will discuss and consider a new annual rate <br />adjustment process prior to any future rate increases. Staff anticipates that a proposal for a new <br />rate adjustment process to the Franchise Agreement would be brought to the City Council for <br />consideration before February 1, 2020. <br />BACKGROUND <br />The City of San Leandro entered into a Franchise Agreement for Solid Waste, Recyclables and <br />Green Waste Services on February 1, 2000. The Franchise Agreement allowed for a rate <br />adjustment each July 1, based on the Consumer Price Index for the San Francisco area and a <br />rate analysis every five years. Amendment 10 to the Franchise Agreement (as attached), <br />approved on July 20, 2009, changed the annual rate adjustment process to a Refuse Rate Index <br />(RRI). The revised methodology reflects changes in cost by focusing on six cost categories within <br />the Consumer Price Index specific to the solid waste industry: Labor; Diesel Fuel; Vehicle <br />Replacement; Vehicle Maintenance; Disposal and All Other. Apart from special rate adjustments <br />in 2015 related to the Materials Recovery Facility (MRF) labor issue (Amendments 11 and 12 as <br />attached), the RRI has been used to modify rates since 2010. <br />Page 1 City of San Leandro Printed on 6/12/2019 <br />252