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File #: PH 22-036   
Section: Public Hearing Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 6/28/2022 Final action:
Subject: New Solid Waste and Recycling Franchise Agreement: Approval of New Franchise Agreement and New Refuse, Recycling, and Organics Services Rates - Introduction of Ordinance
Attachments: 1. Attachment I Staff Report, 2. Attachment II Resolution WMAC Franchise Agreement, 3. Attachment III Ordinance, 4. Attachment IV Resolution MOU with OLSD and WMAC, 5. Attachment V OLSD Maps, 6. Attachment VI Schedule of Warnings and Surcharges, 7. Attachment VII Rate Comparisons
Related files: CONS 22-440

DATE:      June 28, 2022

 

TO:           Mayor and City Council

 

FROM:     Director of Public Works                     

 

SUBJECT                     

 

Title                      

New Solid Waste and Recycling Franchise Agreement:  Approval of New Franchise Agreement and New Refuse, Recycling, and Organics Services Rates - Introduction of Ordinance          

                              

End
RECOMMENDATION

 

Recommendation

That Council:

1.                     Adopts a resolution (Attachment II) authorizing the City Manager to execute a new Franchise Agreement with Waste Management of Alameda County (WMAC); and

2.                     Introduces an ordinance (Attachment III) granting an exclusive franchise to WMAC incorporating the proposed Franchise Agreement; and

3.                     Adopts a resolution (Attachment IV) authorizing the City Manager to execute an extension to the current Memorandum of Understanding (MOU) with the Oro Loma Sanitary District (OLSD) and WMAC.

 

SUMMARY

 

The City holds a franchise agreement with WMAC to provide solid waste, recycling, and organic materials collection, and processing services. The current agreement commenced March 1, 2015 and was scheduled to expire March 1, 2022. The agreement includes the option to extend for three, 12-month periods, and on January 18, 2022, Council opted to extend the contract for one year.  If the City extends the contract the maximum numbers of times, the agreement would expire March 1, 2025.  Most recently, on January 18, 2022, staff requested from Council and was granted an extension of the exclusive negotiating period until June 30, 2022. 

 

Staff recently completed negotiating with WMAC as authorized by Council.  Key elements of the new contract include: acquisition of state-required new blue recycling containers and black trash containers; new public litter cans; surcharges for contamination and overages; and a new fleet of trucks for residential recycling provider Tri-CED. The tentative agreement recommended by staff includes maximum possible rate increase of 14.27%, effective March 1, 2023. This includes a maximum base rate adjustment of 8.27% and a consumer price index (CPI) portion of up to 6%.

 

ATTACHMENTS

Attachment I                         Staff Report

Attachment II                          Resolution Authorizing the City Manager to execute a new Franchise Agreement with WMAC

Attachment III                        Ordinance

Attachment IV                                             Resolution Authorizing the City Manager to execute MOU with OLSD and WMAC

Attachment V                                               OLSD Maps

Attachment VI                          Schedule of Warnings and Surcharges

Attachment VII                        Rate Comparisons