Title
Recommendation to Accept an Informational Report on Establishing Integrated Waste Collection Ceiling Rates and Service Fees for Alameda County Industries, Inc. for Rate Period 14 (July 2015 to June 2016). (Public Works 274)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Informational Report on Establishing Integrated Waste Collection Ceiling Rates and Service Fees for Alameda County Industries, Inc. for Rate Period 14 (July 2015 to June 2016)
BACKGROUND
The Alameda Municipal Code requires that the City Council establish integrated waste management rates on a yearly basis. These rates are established to ensure sufficient revenues are generated to pay all required costs and fees for the collecting, processing, and transporting of integrated waste in accordance with the City's franchise agreement with Alameda County Industries (ACI). This franchise expires in 2022.
ACI has submitted an application to request a yearly adjustment to these rates. Depending upon the year and as prescribed by the franchise agreement, a change in rate is either calculated on a cost or index basis. In a cost year, the City and its consultant conduct a detailed review of ACI's forecasted costs, profit, and pass-through fees.
Index-based Adjustment. The upcoming year, Rate Period 14 (July 2015 to June 2016), is an index-based review. As prescribed by the franchise, an indexed-based rate adjustment is calculated by applying cost-of-living indices, a labor index from the Teamsters Local 70 collective bargaining agreement, and adjusting pass-through costs (e.g., disposal fees). By the index's formula, this year's rate adjustment is an across-the-board 2.80% increase. The vast majority of Alameda subscribe to a 20- or 32-gallon container. For these ratepayers, this amounts to an increase of between $0.80 and $1.01 per month.
Special Adjustment. ACI is requesting a special adjustment related to a signific...
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