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File #: 2019-6902   
Type: Regular Agenda Item
Body: City Council
On agenda: 6/4/2019
Title: Public Hearing to Consider Adoption of Resolution Establishing Integrated Waste Collection Ceiling Rates and Service Fees for Alameda County Industries, Inc. for Rate Period 18 (July 2019 to June 2020). (Public Works 0274)
Attachments: 1. Exhibit 1 - HF&H Consultants, LLC Report, 2. Exhibit 2 - Ceililng Rate and Services Tables, 3. Resolution
Title

Public Hearing to Consider Adoption of Resolution Establishing Integrated Waste Collection Ceiling Rates and Service Fees for Alameda County Industries, Inc. for Rate Period 18 (July 2019 to June 2020). (Public Works 0274)

Body

To: Honorable Mayor and Members of the City Council

EXECUTIVE SUMMARY

In 2002, the City of Alameda (City) entered into a Franchise Agreement (Agreement) with Alameda County Industries (ACI). Under the Agreement, ACI is responsible for managing and paying all costs and fees associated with the collection, processing, and disposal of integrated waste, and directly billing all residential and commercial customers for these services. The Alameda Municipal Code (AMC) specifies that the ceiling rates be set by the City Council at a public hearing.

Ceiling rates for the collection and processing of integrated waste are established to generate sufficient revenue to recover ACI's costs in its entirety, including fees paid to Waste Management at its transfer station. Consistent with the Agreement, ACI has submitted the required rate application, which has been reviewed, adjusted, and finalized to recommend the rates for Rate Period 18 (July 1, 2019 to June 30, 2020). The application resulted in an across-the-board 7.31% increase. Staff is recommending a 4.21% increase in rates, with the remaining 3.1% covered by one-time contributions.

BACKGROUND

On July 2, 2002, the City entered into an Agreement with ACI for the curbside collection of solid waste, the collection and processing of recyclable materials, and the collection of organic materials, collectively referred to as integrated waste. In April 2009, the term of the Agreement was extended to 2022. ACI is responsible for managing and paying all costs and fees associated with the collection, processing, and disposal of integrated waste, and directly billing all residential and commercial customers for these services.

Through a separate agreement, the City contracts with Waste...

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