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J. Jermanis Proposed Refuse Agreement • City Council directed staff to identify ways to make the City's refuse operation more cost- effective, reduce the expenditures associated with the City's refuse services. • Because of the existing contracts with San Lenadro Disposal and San Leandro Recycling, the operating expenditure reduction was only possible for residential service in the City's service area. • The reduction was made through the implementation of curbside collection. • The capital outlay associated with the acquisition of automated refuse service delivery was not and is not now financially possible for the City. • In August 1999, the City was notified that a new company was forming, Alameda County Industries (ACI), which was interested in buying San Leandro Disposal and San Leandro Recycling. • Sole source negotiations with ACI representatives commenced to identify whether it was feasible to privatize all refuse services in the City's service area. • A competitive bid process would have been possible only had the City Council chosen to condemn the existing contracts with San Leandro Disposal and San Leandro Recycling, an action which was not recommended. DISCUSSION • The negotiations with ACI have been concluded and the proposed major business deals points are summarized in Attachment 1. • The proposed term of the franchise agreement will be for 10 years with the option to renew for additional 10 year period if performance is satisfactory. • Approval of the proposed ACI franchise agreement has been placed on the City Council's January 31, 2000 agenda for City Council consideration and action. ENHANCED SERVICES • Residential refuse and recycling customers in the City's service area will receive wheeled carts for refuse, wheeled single stream recycling carts, and will be able to use their existing wheeled green waste containers. • Automated residential refuse and recycling services are scheduled to begin in October 2000. • Refuse service in the City's parks, at City facilities, and for other City trash receptacles will continue to be provided. • Annual debris pickups will remain unchanged (1 free pickup per year, by appointment). • Invoices and billing collection for refuse and recycling services will be performed by ACI and such charges will be removed from the property tax statements. • There will be uniformity of refuse and recycling service delivery in the City's service area. • Service fees will be maintained at levels comparable to neighboring jurisdictions. • Customers in the City's service area will be able to realize economies of scale because services currently delivered by three service providers will be combined and delivered by one service provider. 2