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File Number: 20-052 adjust accordingly. If their actual costs exceed the indices for the prior twelve-month period, then the cost difference would be reflected in the July 1, 2022 rates. The most significant change in the methodology is the addition of the Net Recyclables Processing Cost Adjustment Methodology (NRPCAM), indicated as Appendix F1 in Amendment 14 (Attached to the associated Resolution). The methodology calculates the change in processing costs for the Material Recovery Facility, which processes recyclables for the nine jurisdictions that ACI serves. ACI assumes a per ton cost for the operation and then applies it to the incoming recycling tons for San Leandro. A similar method is used for the other jurisdictions. ACI includes revenues received for the sale of recyclable materials to offset processing costs. In the NRPCAM, 95% of the revenues are used to offset costs and ACI receives the remaining 5% as profit. If the change in revenues is positive, there is a greater cost offset for ratepayers. If the change in revenues is negative, the processing cost per ton increases. Currently, ACI assumes the risk associated with the change in commodity values and volatility of recycling markets. With the NRPCAM, ratepayers assume most of the risk as it affects the overall change in processing costs. The change in recycling processing costs for the July 1, 2020 rate year is significant since 2020 is a baseline year. Total recycling processing costs for San Leandro increase from approximately $965,000 to approximately $1,373,000. This is a 42% increase in recycling processing costs over the current year. Using the DRAM, rates are estimated to increase by 6.73 percent effective July 1, 2020. Rates would increase from $32.27 to $34.45 per month for residential customers receiving 32-gallon garbage service weekly. Rates would increase from $141.51 to $151.03 per month for commercial customers receiving a 1 cubic-yard bin, one time per week. Previous Actions ·Resolution No. 2000-8 approving a Franchise Agreement for Solid Waste Recyclables, and Green Waste Services between the City of San Leandro and Alameda County Industries, Inc. ·Resolution No. 2009-117 authorizing the City Manager to execute Amendment 10 to the Franchise Agreement. ·Resolution No. 2015-010 approving Amendment 11 to the Franchise Agreement. ·Resolution No. 2015-095 authorizing the City Manager to execute Amendment 12 to the Franchise Agreement. Applicable General Plan Policies ·Action 27.01-A: Source Reduction and Recycling Programs ·Action 27.01-C: Commercial and Multi-Family Residential Programs ·Action 27.01-D: Food Waste Recycling Fiscal Impacts Page 3 City of San Leandro Printed on 2/25/2020 1070