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10A Action 2020 0302
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10A Action 2020 0302
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2/25/2020 5:13:12 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
3/2/2020
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City of San Leandro <br />Meeting Date: March 16, 2020 <br />Staff Report <br />Agenda Section:File Number:20-052 ATS Review <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Debbie Pollart <br />Public Works Director <br />FINANCE REVIEW:Liz Warmerdam <br />Interim Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Authorizing the <br />City Manager to Execute a Fourteenth Letter Amendment of the Franchise <br />Agreement to Modify the Annual Rate Adjustment Methodology for Solid Waste, <br />Recyclables, and Green Waste Services between the City of San Leandro and <br />Alameda County Industries, Inc. <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City of San Leandro City Council review and consider a request from <br />Alameda County Industries, Inc. (“ACI”) to modify the Franchise Agreement for Solid Waste, <br />Recyclables, and Green Waste (“Franchise Agreement”) between the City of San Leandro and <br />ACI. The request is presented as Amendment Fourteen to the Franchise Agreement and would <br />modify the annual rate adjustment methodology for rates effective July 1, 2020, and thereafter for <br />the term of the Franchise Agreement. Amendment Fourteen would also modify the definition of <br />“Multi-Family Residence” and clarify point of pickup locations for multi-family residences. <br />BACKGROUND <br />The City of San Leandro entered into a Franchise Agreement with ACI for Solid Waste, <br />Recyclables, and Green Waste Services on February 1, 2000. It will expire in January 2025. The <br />Franchise Agreement allowed for a rate adjustment July 1 of each year, based on the Consumer <br />Price Index for the San Francisco Bay area, as well as a rate analysis every five years. <br />Amendment 10 to the Franchise Agreement (as attached), approved on July 20, 2009, changed <br />the annual rate adjustment process to a Refuse Rate Index (RRI). That revised methodology was <br />created to reflect changes in cost by focusing on six cost categories within the Consumer Price <br />Index specific to the solid waste industry: Labor; Diesel Fuel; Vehicle Replacement; Vehicle <br />Maintenance; Disposal and All Other. Apart from special rate adjustments in 2015 related to the <br />Material Recovery Facility labor issue, as well as the special rate adjustment last year, the RRI <br />has been used to modify rates since 2010. <br />Page 1 City of San Leandro Printed on 2/25/2020 <br />1068
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