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CITY OF SAN LEANDRO STAFF REPORT Date: July 29, 1998 To: John J. Jermanis, City Manager From: Robert J. Rockett, Public Works Director Subject: Refuse Enterprise Fund Rate Increase for SUMMARY AND RECOMMENDATION APPROVED AND FORWARDED TO CITY COUNCIL John J. Jermanis J)) b City Manager 92-144/ �1a51/Io��l`'t3�(Ja3iQ oB-cam-98 Expenses exceed revenues for recycling by $114,469. A rate of increase of 9.3% is needed to offset this cost. Staff recommends the City Council adopt the attached resolution which raises the Refuse Enterprise Fund rate for recycling 9.3%. DISCUSSION Recycling expenses for the 1998-99 fiscal year are $1,339,469, including a $450,000 deficit amortized over four years and 4% CPI. The expected revenue is $1,225,000. Expenses are 9.3% greater than revenues. Rates were last increased in 1996 to $5.10 per month. The City's contract with San Leandro Recycling allows San Leandro Recycling to raise their rates to the City annually by 80% of the San Francisco Bay Area Consumer Price Index. In 1997, San Leandro Recycling increased its rates to the City from $5.10 per month to $5.18 per month. The City did not raise its rates. CPI had increased 4.8% since the last rate increase. In addition, following the preparation of the original staff report and City Council's direction to notify the public of increasing rates, San Leandro Recycling notified the City that it is raising its rates from $5.18 per month to $5.36 per month. The process for Proposition 218 requires the City provide written notice to the property owner of the amount of the fee, the basis for the fee, and the date, time and place of the required public hearing. On Monday, June 15, 1998, the City Council authorized staff to notify all affected individuals that a public hearing which would consider a rate increase of 9.3% for recycling would be held at City Hall on August 3, 1998. A copy of the notices are attached for City Council information. 27