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CITY OF SAN LEANDRO STAFF REPORT Date: January 4, 2000 To: John J. Jermanis, City Manager From: Wandzia G�czz As Is�ityly anager Subject: Privatization of Refuse Service APPROVED AND FORWARDED TO CITY COUNCIL cv Jo . 7erman's M o Ci alter 2D00— S or 12-OCR 0b-ta) SUMMARY AND RECOMMENDATION • It is recommended that the City Council approve moving forward with a proposed franchise agreement between the City and Alameda County Industries (ACI). • A report on this item has been placed on the City Council's January 18, 2000 agenda. BACKGROUND • The City is split into two refuse/recycling service areas. • The southern part of the City (40%) is within the Oro Loma Sanitary District and residential and commercial/industrial customers in this area are provided refuse and recycling services via a contract between the District and Waste Management of Alameda, Inc. • The remaining 60% of the City is known as the City's service area. • Commercial/industrial customers in the City's service area (approximately 2/3 of all commercial/industrial accounts) receive non-putrdesible refuse service via a contract between the City and San Leandro Disposal. • The remaining term of the City's existing contract with San Leandro Disposal is 19 years. • Residential customers in the City's service area receive recycling service via a contract between the City and San Leandro Recycling. • The remaining term of the City's existing contract with San Leandro Recycling is 6 years. • Residential customers in the City's service area receive refuse service by the City's Refuse Workers. • The residential refuse service is the least profitable portion of all refuse/recycling services provided in the City's service area. • In June 1999, staff recommended a rate increase for both refuse and recycling services because it was projected that the Refuse Enterprise Fund expenditures would not match incoming revenues.