REPORT TO THE CITY COUNCIL
February 25, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: JERRY L. SCHUBER SR., Assistant Director
Department of Public Utilities - Solid Waste Management Division
SUBJECT
Title
Approve the Index-Based Rate Adjustments (Rate Period 5) for Commercial Solid Waste Franchise Services as Requested by Mid Valley Disposal ("Mid Valley") and Allied Waste ("Allied") for Disposal of Multi-Family, Commercial Solid Waste, Recyclable and Organic Material.
Body
RECOMMENDATION
It is recommended the City Council approve the Index-Based Rate Adjustments for Commercial Contractor's Mid Valley and Allied, pursuant to the Multi-Family and Commercial Solid Waste Services Franchise Agreement.
EXECUTIVE SUMMARY
On September 29, 2011, the Fresno City Council awarded exclusive commercial solid waste franchises to Mid Valley and Allied ("Franchisees") to provide commercial solid waste ("CSW") services within the municipal corporate limits of the City. The Multi-Family and Commercial Solid Waste Franchise Agreement (CSW Agreement) allows Mid Valley and Allied, on an annual basis, to submit requests for commercial solid waste service rate increases.
In October 2015, both Mid Valley and Allied submitted requests for rate increase for CSW services, with the new rates planned to become effective January 2016. City staff, with the assistance of the R3 Consulting Group, reviewed the rate increase requests and supporting documentation from the Franchisees, and determined both Mid Valley and Allied are contractually entitled to index-based rate adjustments for Period 5 (Calendar Year 2016) in the amount of 1.20 percent for Allied and 1.40 percent for Mid Valley. The adjustments differ slightly due to variation in fuel consumption related to the Franchisees' service areas.
City staff confirmed the methodology used by Mid Valley and Allied in the rate increase requests complies with Article I...
Click here for full text