Title
Public Hearing to Consider Adoption of Resolution Establishing Integrated Waste Collection Ceiling Rates and Service Fees for Alameda County Industries, Inc. (ACI) for Rate Period 14 (July 2015 to June 2016). (Public Works 274)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, City Manager
Hold a Public Hearing to Consider Adoption of Resolution 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.
The upcoming year, Rate Period 14 (July 2015 to June 2016), is an index-based review. However, ACI has requested a special adjustment related to a significant change in their labor costs at their Material Recovery Facility in San Leandro. ACI's sorters and other workers voted to join the International Longshore and Warehouse Union (ILWU), Local 6. ACI and ILWU are currently negotiating a collective bargaining agreement. Prior to unionization, ACI had contracted with a third-party staffing agency that hired and employed the sorters.
ACI employs approximately 60+ sorters in two shifts, processing curbside recyclable material from Alameda, ...
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