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City Council - 4 - October 29, 1998 Refuse Enterprise Fund Poligy Considerations The recommended long-term strategy is that the City begin the RFQ/RFP process with the goal of completing contract negotiations by July 1999. The contract parameters would include reducing cost of service delivery, providing service and rates comparable to Oro Loma, providing automated recycling and refuse collection services, and providing a low-income discount, if legal. Attachment 4 is a partial list of contract issues that will need to be negotiated. As part of our negotiations with an outside refuse collection company, the City may want to consider having the City's contract terms be co -terminus with Oro Loma's current contract with Waste Management. This would allow the City to look at the possibility of making both service levels and rates consistent within the entire San Leandro service area at the time of contract renewal for our two agencies. Perhaps the most complex issue associated with the recommended strategy is the impact of this policy decision on existing employees. Based on staff preliminary analyses, it appears that resolution to this issue will be far more complicated than those dealt with as part of either the fire services contract or golf course operations contract. There are clearly meet -and -confer issues associated with service delivery changes for refuse collection and as such these must be discussed further in closed session at a future date. Finally, as was done so successfully with the golf course contract process, it is recommended that the City retain the services of a refuse consultant to provide expertise and advice on the business implications of the options available through the RFQ/RFP process as well as to assist the City during contract negotiations Water Pollution Control Enterprise Fund It is stars understanding that the overall strategic goal regarding this fund is to evaluate the feasibility and cost-effectiveness of alternate service delivery for the City's wastewater (Water Pollution Control Plant and sewer collection system.) Short-term actions 1. The City will explore the opportunity of having the Oro Loma Sanitary District or East Bay Municipal District provide sewer services to the entire San Leandro service area. Staff met with Mike Cameron of Oro Loma Sanitary District regarding the City's wastewater operations. Contrary to expectations, Mike Cameron indicated that Oro Loma would probably not be interested in taking over operating the City's treatment plant. He did indicate that the District would consider taking over the City's sewer collection system. However, in order to do so, Oro Loma would need to expand their existing plant with an additional digester for $12 Million, upgrade their plant's aeration system for $2 Million as well as retrofit the City's sewer collection system to redirect the City's flow to the Oro Loma plant. Oro Loma staff assumes that these costs would be borne solely by those San Leandro property owners currently served by the