DATE: February 7, 2023
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Approving Garbage and Recycling Rates for 2023-2024
End
RECOMMENDATION
Recommendation
That Council adopts a resolution (Attachment II) approving the recommended garbage and recycling annual rate increase of 13.18% for all residential and commercial accounts effective March 1, 2023.
End
SUMMARY
A new Franchise Agreement between the City and Waste Management of Alameda County (WMAC), approved by Council in June 2022, will become effective on March 1, 2023, and will retain the same annual rate adjustment date of March 1. The new Agreement includes a negotiated increase of 7.88% to cover the costs of providing several service enhancements in the new contract. These include changes mandated by State Senate Bill 1383 (SB 1383), new public litter cans, and purchase of new trucks for residential recycling provider Tri-CED.
The Agreement also continues to allow the rates for Rate Year One (RY1) to be adjusted according to a Consumer Price Index (CPI) calculation based on WMAC’s current revenues. The CPI portion may not exceed 6% for a total maximum increase of 13.88%. Based on calculations as set forth in the Agreement, WMAC and City staff determined the rate adjustment effective March 1, 2023, is 13.18%, including 7.88% for service enhancements and 5.30% for CPI.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Comparison of Monthly Garbage & Recycling Rates