For City Council Meeting [July 13, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Michael Tahan, Interim Public Works Director
Title
Request City Council Adopt Resolution No. 7747 Approving the Municipal Solid Waste Collection, Recycling and Disposal Service Rates for Fiscal Year 2021/2022, Effective July 1, 2021.
(ACTION)
Body
BACKGROUND
In April 1996, the City Council approved a Franchise Agreement with Burrtec Waste Industries ("Burrtec") for solid waste collection and disposal services that included a curbside mixed recyclables program to meet the mandates of AB 939 and unlimited green waste removal. Resolution No. 4217 established the base residential and commercial solid waste collection and disposal rates, (the "Rates"). The Franchise Agreement allows Burrtec to request Rate adjustments based on changes in the Consumer Price Index (CPI) and changes in operating costs, such as landfill tipping fees and state mandated programs.
In July 2020, as a method of reducing fiscal impacts to residents and businesses impacted by the COVID-19 pandemic, Burrtec deferred the Fiscal Year 2020/2021 Rate adjustment and the cost recovery for both residential tax roll and residential direct bill customers to the Fiscal Year 2021/2022 cycle. The intent was to recover the Fiscal Year 2020/2021 cost increases incurred by Burrtec in the Fiscal Year 2021/2022 cycle resulting in a deferred cost recovery and true-up adjustment.
ANALYSIS/DISCUSSION
On June 11, 2019, the City Council conducted a Public Hearing in accordance with Proposition 218 procedures and adopted a 3-Year Schedule for Municipal Solid Waste Collection, Recycling and Disposal Rates for Fiscal Years 2019/2020 through 2021/2022.
Fiscal Year 2021/2022 Rates for Residential Customers are recommended to include the following components.
* No CPI adjustment to the 2021/2022 Residential Hauler Fee
* The deferred Fiscal Year 2020/2021 cost increases (the "Deferment Sta...
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