City of San Leandro
City Council Meeting
Amendment 14 to Franchise Agreement
Alameda County Industries
May 16, 2022
Overview
Proposed Amendment 14
Approve rate increase of 5.69%
Modify the definition of Multi-family
Clarify point of pickup locations for
multi-family residences
Change rate notification period to
30-days
2 3
Previous Actions
Amendments to Franchise
Year Amendment Purpose
2010 10 Established the Refuse Rate Index (RRI) to adjust rates annually
2015 (February) 11 Adjusted rates by 4.01% for MRF labor issue 2015 (August) 12 Adjusted rates by 8.49% for special rate review (includes annual rate adjustment)
2019 13 Adjusted rates by 7.89% for special rate review (includes annual rate adjustment)
2022 14 (Proposed) Adjusted rates by 5.69% for special rate review (includes annual rate adjustment)
Contract expires February 1, 2025
Proposed Rate Adjustment
Components of 5.69% Rate Increase
5.84% Refuse Rate Index (Annual Rate Adjustment)
-1.46% recycling revenue share 2022
.35% recycling revenue share (2021 reversed)
.16% Material Recover Facility Labor
.80% SB 1383 implementation (Special Rate Review)
4 Annual Rate Adjustment Process
Amendment 10 specifies use of Refuse Rate Index (RRI) for determining Annual Rate Adjustment
Includes provision to share revenues on the sale of recyclables 5 Refuse Rate Index
Cost Category Index
Labor Changes in actual labor costs
Diesel Fuel #2 Diesel - Series ID WPU057303
Vehicle Replacement Truck & Bodies – Series ID WPU141301 Vehicle Maintenance Parts & Attachments – Series ID WPU1140378 Disposal Changes in actual disposal costs at landfill
All Other All items – Series ID CURR0000SA0
Additional Adjustments
Amendments 11 & 12
Material Recover Facility Labor Dispute of 2015
City loaned ACI $1.1m to settle dispute (Amendment 11) Authorized 4.1% increase 2/1/2015
Authorized an 8.49% increase
effective 8/1/2015 (Amendment 12)
Provides for annual increases for
MRF workers not include in RRI
6 Special Rate Review
SB 1383 Implementation
.80% increase requested
7 Focus on compliance in 2022-
2023
One-time outreach design
costs
Data transfer to Recyclist
.25 FTE for Reporting
.5 FTE Sustainability Specialist
Contamination Notification
(Cart Tags)
Annual outreach – door
hanger
Monthly Solid Waste Rates
8 Rate Impacts
*Residential Customers billed quarterly
Residential
20-gallon
Residential
32-gallon
Multifamily
1cy 1x week
Commercial
1cy 1x week
Commercial
3cy 1x week
Current Rates
July 1, 2021-2022
$27.29 $34.00 $126.69 $149.07 $450.70
Proposed Rates
July 1, 2022-2023
$28.84 $35.93 $133.90 $157.55 $476.34
Increase (5.69%) $1.55 $1.93 $7.21 $8.48 $25.64
Monthly Solid Waste Rates
9 Rate Comparison
Jurisdiction Residential
20-gallon
Residential
32-gallon
Residential
64-gallon
Residential
96-gallon
Commercial
1cy
1x per week
Commercial
3cy
1x per week
San Leandro - Current $27.29 $34.00 $56.59 $79.16 $149.07 $450.70 San Leandro - 5.69% $28.84 $35.93 $59.81 $83.64 $157.55 $476.34 Alameda $35.99 $45.53 $74.64 $104.25 $173.05 $519.16
Berkeley $27.30 $43.66 $87.28 $130.87 $173.77 $480.92
Dublin N/A $38.39 $70.52 $102.65 $186.27 $558.81
Fremont $38.94 $39.72 $43.33 $62.64 $109.70 $315.32
Hayward $25.06 $36.63 $65.32 $93.98 $155.80 $401.38
Livermore $29.94 $39.63 $59.36 $93.26 $119.07 $357.20
Newark $31.21 $34.68 $61.43 $88.16 $140.54 $371.83
Oakland $46.13 $52.36 $92.29 $138.62 $255.26 $607.89
Pleasanton N/A $27.58 N/A $48.12 $123.49 $370.45
Union City $46.37 $54.37 $94.38 $134.32 $165.98 $434.94 Castro Valley SD $32.42 $50.26 $87.29 $124.30 $265.60 $706.13 Oro Loma SD $17.51 $29.49 $53.28 $77.15 $163.02 415.09
Conclusion
10 Approve Amendment 14
5.69% Rate Increase Effective July 1, 2022