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 17 (July 2018 to June 2019). (Public Works 274)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Public Hearing to Consider Adoption of Resolution Establishing Integrated Waste Collection Ceiling Rates and Service Fees for Alameda County Industries, Inc. for Rate Period 17 (July 2018 to June 2019)
BACKGROUND
On July 2, 2002, the City entered into a Franchise Agreement (Agreement) with Alameda County Industries (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 Management for the transferring and landfilling of the solid waste portion of the integrated waste stream.
The Alameda Municipal Code specifies that the ceiling rates for the collection and processing of integrated waste be set by the City Council at a public hearing. Ceiling rates are established to generate sufficient revenue to recover ACI's costs in its entirety, including fees paid to Waste Management at its transfer station.
The Agreement with ACI specifies two types of annual rate reviews: an index-based and a cost-based adjustment. An index-based adjustment requires the ceiling rates to be adjusted by three specific Consumer Price Index categories. Every third year a cost-based adjustment is performed, which includes a detailed review of ACI's forecasted costs, profit, a...
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