REPORT TO THE CITY COUNCIL
November 17, 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 6) for Commercial Solid Waste Franchise Services as Requested by Allied Waste Services and Mid Valley Disposal for Disposal of Multi-Family, Commercial Solid Waste, Recyclable and Organic Material.
Body
RECOMMENDATION
Staff recommends City Council approve the Index-Based Rate Adjustments for commercial contractors Allied Waste Services (Allied) and Mid Valley Disposal (Mid Valley), pursuant to the Multi-Family and Commercial Solid Waste Services Franchise Agreements.
EXECUTIVE SUMMARY
On September 29, 2011, Council awarded exclusive commercial solid waste franchises to Allied and Mid Valley ("Franchisees") to provide commercial solid waste services within the municipal corporate limits of the City. The Multi-Family and Commercial Solid Waste Franchise Agreement (CSW Agreement) allows Allied and Mid Valley, on an annual basis, to submit requests for commercial solid waste service rate increases.
In October 2016, both Allied and Mid Valley submitted requests for an index-based rate adjustments for CSW services, with the new rates planned to become effective January 2017. City staff reviewed the rate increase requests and supporting documentation from the Franchisees, and determined both Allied and Mid Valley are contractually entitled to an index-based rate adjustments for Period 6 (Calendar Year 2017) in the amount of 1.3 percent for Allied and 1.2 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 Allied and Mid Valley in the rate increase requests complies with Article II of the CSW Agreement. Therefore, City staff recommends...
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