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FACT SHEET <br />SUMMARY OF REFUSE SERVICE PRIVATIZATION <br />Reason for Privatization: <br />• Approximately 2/3 of industrial/commercial refuse accounts handled by San Leandro Disposal <br />• The remaining term of San Leandro Disposal's existing contract is 19 years <br />• All residential recycling handled by San Leandro Recycling <br />• The remaining term of San Leandro Recycling's existing contract is 6 years <br />• Significant cost to upgrade City's equipment and containers to provide greater operational <br />efficiencies <br />• City unable to achieve economies of scale due to current service providers in City sanitation <br />service area (approximately 60% of City) <br />Goal: <br />• Improve delivery of residential service to wheeled container pickup for refuse and recycling <br />• Maintain service fees at rates comparable to neighboring jurisdictions <br />• Eliminate Refuse Enterprise Fund annual operating deficit and repay the Refuse Enterprise Fund <br />loans to the General Fund <br />• Repay $ 2.1 million loan from General Fund loan <br />• Streamline process to adjust refuse/recycling service fees <br />• Provide uniformity of service delivery in City sanitation area <br />Transition Plan: <br />• Approve franchise agreement with Alameda County Industries (newly formed company in <br />process of acquiring San Leandro Disposal and San Leandro Recycling) to provide all <br />refuse/recycling services in City sanitation area effective February 1, 2000 <br />• Offer employment to current City refuse service employees (teamsters union) <br />• Single stream residential recycling (June 2000) <br />• Automated residential refuse collection (October 2000) <br />Deal Points: <br />• Term of new franchise agreement will be for 10 years with option to renew for additional 10 year <br />period if performance is satisfactory <br />• No change in service rates until July 1, 2000 <br />• Annual adjustments in July based on CPI formula <br />• Rate review at the end of 10 years; rates at that time will not be greater than 5% of the median <br />rate charged by Oro Loma, Hayward, Oakland, Castro Valley, Alameda <br />• Performance review undertaken at 5 year intervals <br />• Future assignment of franchise agreement requires City Council approval <br />• ACI will do billing <br />• ACI to actively assist in the City's meeting its AB939 goals <br />