Title
Consideration of and action on an ordinance amending Schedule B to address Commercial Solid Waste Fees.
Body
Summary:
Beginning December 1, 2013, the City granted an exclusive franchise to Waste Management for the pick-up of containerized commercial solid waste. The contract allows for an annual base rate adjustment as follows: “…annually on each anniversary of the Commencement Date of this Agreement, the Base Rates for services shall be adjusted by the same percentage as the CPI”. In accordance with this contract provision, Waste Management has increased their base fees by 2.327% effective on the annual anniversary of the contract, December 1, 2017. The 2.327% increase represents the change in the CPI for garbage and trash collection "during the preceding twelve months, ending June 30" (Section 9.01 CPI Adjustment).
Waste Management provided a new rate table effective December 1, 2017 and the new rates have been incorporated in the attached ordinance.
Fiscal/Budgetary Impact:
None. Expenditures in the FY 2017-2018 budget for commercial garbage collection are included in the Sanitation Department budget (Account No. 10-402-4220, Commercial Garbage Collection); however, these costs are offset by revenues in the General Fund (Account No. 10-000-3202, Commercial Garbage Fees). Per the contract, garbage collection from dumpsters used by the City at its facilities is provided at no cost to the City.
Recommended action
Approval of the ordinance amending Schedule B for Commercial Solid Waste Fees.