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Resolution affirming that the proposed Consumer Price Index-based adjustments to solid waste and biosolids transportation rates are consistent with the franchise agreement with South San Francisco Scavenger Company, Inc., effective July 1, 2026
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WHEREAS, on July 9, 1997, the City Council approved a Franchise Agreement (the “Agreement”) with South San Francisco Scavenger Company (SSFSC) for the collection and disposal of solid waste within the City; and
WHEREAS, the City entered into a Fourth Amendment to the Agreement in 2013 establishing a rolling 20-year franchise term to support SSFSC’s ability to secure financing for capital improvements, contingent upon annual reporting by SSFSC regarding the status of their capital improvement program; and
WHEREAS, pursuant to the Agreement, solid waste collection rates are reviewed and adjusted triennially based on a regional rate survey, with interim year adjustments based on 80% of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI) for the San Francisco-Oakland-Hayward area; and
WHEREAS, SSFSC has provided the required Notice of Intent and updated rate schedules reflecting this adjustment; and
WHEREAS, for Fiscal Year 2026-27, the CPI-based adjustment of 1.40%, as verified by City staff using Bureau of Labor Statistics data, will be applied to collection rates and the Source Reduction and Recycling Element Franchise Fee (SRRE fee); and
WHEREAS, the SRRE fee will be adjusted accordingly from $19,924.61 to $20,203.55 per month, reflecting the 1.40% CPI-based increase; and
WHEREAS, under the Second Amendment to the Agreement, the tonnage rate for the transport of biosolids (organic sewage sludge) is subject to an annual adjustment based on 80% of the Consumer Price Index for All Urban Consumers (CPI-U); and
WHEREAS, to comply with SB 1383 mandates, a revised rate structure was agreed in March 2023, establishing a CPI-based increase effective annually on January 1st, with a minimum of 2.5% and maximum of 6%; and
WHEREAS, City staff verified a CPI increase of 2.50% for the applicable period, and SSFSC has agreed to apply this increase effective July 1, 2026.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco as follows:
1. The City Council confirms the CPI-based Solid Waste Rate adjustment of 1.40% for FY 2026-27, effective July 1, 2026, as consistent with the Franchise Agreement.
2. The City Council confirms the adjustment of the monthly SRRE fee from $19,924.61 to $20,203.55, effective July 1, 2026.
3. The Council confirms the CPI-based Biosolids Transport Rate adjustment of 2.50% for FY 2026-27, effective July 1, 2026, as consistent with the Franchise Agreement.
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