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File #: LB 19-010   
Section: Legislative Business Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 2/5/2019 Final action:
Subject: Review and Approve Recommended Garbage and Recycling Rates Adjustment for 2019-2020
Attachments: 1. Attachment I Staff Report, 2. Attachment II Resolution, 3. Attachment III Rates survey 2019

DATE:      February 5, 2019

 

TO:           Mayor and City Council

 

FROM:     Director of Utilities and Environmental Services

 

SUBJECT                     

 

Title                      

Review and Approve Recommended Garbage and Recycling Rates Adjustment for 2019-2020                                          

EndRECOMMENDATION

Recommendation

 

That Council reviews and approves the recommended garbage and recycling annual rate increase of 2.611% for all residential and commercial accounts effective March 1, 2019. 

End

 

SUMMARY

 

Refuse rates typically increase on March 1 of each year, in accordance with the Franchise Agreement between the City and Waste Management of Alameda County (WMAC) that became effective on March 1, 2015.  Rate Year Five (RY5) of the Franchise Agreement will commence on March 1, 2019. Per the Franchise Agreement, the rates for RY5 shall be set based on a Consumer Price Index (CPI) adjustment to WMAC’s current revenues. In addition to the CPI, due to a change in international policy resulting in a severe downturn in the recycling commodities markets, Tri-CED, which is the residential recycling subcontractor to WMAC, has asked for additional compensation. Staff recommends that an additional special increase of $2.00 per household be included in the overall rates, for a total rate increase of 2.611% for RY5. This increase will allow Tri-CED to receive an additional $1.13 million per year for the remaining term of the Franchise Agreement, which will last from three to five years.

 

ATTACHMENTS

Attachment I                                           Staff Report

Attachment II                                          Resolution

Attachment III                     Rates Survey 2019