Finance Highlights 2009 0324 - Laserfiche WebLink

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CITY COUNCIL FINANCE COMMITTEE March 24, 2009 9:00 a.m. -10:30 a.m. San Leandro City Hall 835 East 14th Street San Leandro, California (Sister Cities Gallery) HIGHLIGHTS Committee Members: Mayor Santos and Councilmember Prola City Staff Present: City Manager Hollister, Interim Assistant City Manager Diaz, City Attorney Williams, Interim Finance Director Carter, Community Development Director Sims, Police Chief Willis, Public Works Director Bakaldin, Deputy Finance Director Rodriguez, Budget & Compliance Manager Perini, Housing-CDBG Manager Liao, Administrative Analyst I Nassab, Sr. Accountant Galvin, and Administrative Assistant III Perez. Public Present: Interim Captain Pricco, Kathy Ornelas, Pam Covington, Chris Lim, Song Chin-Bendib, Bill Dobert, Louie Pellegrini, Mike Katz-Lacabe, Gordon Galvan, Rose Padilla Johnson, Morgan Mack-Rose, Tim Holmes, and Karen Holzmeister. The meeting was called to order at 9:00 a.m. 1. Review Proposed 2009-2010 Rate Increase by Alameda County Industries (ACI) City Manager Hollister informed the Committee that Public Works Director Bakaldin and Administrative Analyst Nassab have been working with Alameda County Industries (ACI) in negotiating to renew their contract with the City that is to be presented to Council prior to August 1, 2009. Bakaldin provided a brief history to the Committee on the existing contract and the desire from both ACI and the City to extend the contract for an additional 10 years, as allowed in the current contract. In 2000, the City contracted with ACI to collect trash, recyclables, and yard waste from homes and businesses. In addition, ACT also collects trash from special events. Bakaldin notified the Committee that he received a letter on January 28, 2009 from ACI requesting to discontinue collection and processing of recyclable fiber material due to the collapse of the commodity markets for these materials. ACI continues to lose money and the market continues to plummet. In addition, ACI's labor cost has increased and is unable to meet their financial covenants. The owners of ACI have had to put up $1 million to keep the company solvent through the end of the fiscal year. Should the City wish to continue having ACI pick up recyclables, the City must agree to increase rates by 10% effective July 1, 2009. Bakaldin expressed his concern with discontinuing the recycling service to homeowners for the following reasons: it would be difficult for homeowners to continue to "be green" and approximately 10,000 tons of mixed paper would be landfilled annually. Staff is asking the 1