Title
Adoption of Resolution Amending the Fiscal Year 2023-24 General Fund Budget to Appropriate $72,500 from General Fund Residual Fund Balance to Conduct a Franchise Fee Cost Review for Collection, Transportation and Processing of Municipal Solid Waste, Recycling, and Organic Materials. (Public Works 26241500)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On May 18, 2021, City Council approved a 12-year Franchise Agreement (Agreement) with Alameda County Industries (ACI) for the collection, transportation, and processing of the City's municipal solid waste, recycling, and organic materials. The Agreement, which became effective July 1, 2021, includes various fees, including franchise fees, paid to the City of Alameda (City) annually. Based on potential changes to franchise fee setting policy at the state and local level, staff recommends a franchise fee cost review be conducted with development of a new franchise fee cost model. A budget amendment is required to execute this work now to align with the timing of the annual fee adjustment process.
BACKGROUND
On May 18, 2021, City Council approved a 12-year Franchise Agreement with ACI for the collection, transportation, and processing of the City's municipal solid waste, recycling, and organic materials. The Agreement, which became effective July 1, 2021, includes various fees, including franchise fees, paid to the City annually.
Under the Agreement, ACI collects and remits a Franchise Fee, Waste Management Recycling and Program Fee, Infrastructure Impacts Mitigation Fee, Doolittle Landfill Maintenance Fee, and City Parks Fee to the City. Franchise Fees are calculated as 10% of ACI's gross rate revenue. The Agreement with ACI includes an annual adjustment method and allows the City to set other fees as the City deems necessary. Franchise fees will be adjusted annually for CPI. The fee adjustment process begins in spring of the calendar yea...
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