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Report regarding a resolution confirming the change in solid waste collection rates to be collected by the South San Francisco Scavenger Company effective July 1, 2023. (Paul Harris, Financial Services Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution confirming the change in solid waste collection rates to be collected by the South San Francisco Scavenger Company effective July 1, 2023.
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BACKGROUND/DISCUSSION
On July 9, 1997, the City Council approved a franchise agreement ("Franchise Agreement") for collection and disposal of solid waste with the South San Francisco Scavenger Company ("SSFSC"). In 2013, the City entered into an amended agreement with SSFSC that provides for a rolling 20-year franchise term. The longer term was implemented to allow SSFSC to have a longer period to obtain financing for their investment in capital improvements. As part of the approval of that amendment, the Council asked SSFSC to provide an annual update on the status of their capital improvement program. Representatives of SSFSC will be at the Council meeting on June 28th to present this information.
Under the terms of the Franchise Agreement, solid waste rates are adjusted every three years based on a rate survey of cities throughout the San Francisco Bay Area. For the two years following the survey year, rates are adjusted based on 80% of the change in Consumer Price Index (CPI) for San Francisco-Oakland-Hayward published by the United States Bureau of Labor Statistics. FY 2023-24 is the second year in which the 80% of CPI adjustment will be applied. The next rate study is due by March 31, 2024 which will set the rates for FY2024-25. SSFSC is required to provide a Notice of Intent to the City of their intention to adjust the collection rates by March 31 preceding the fiscal year in which the new rates become effective. This Notice and the new rate schedule is shown in Attachment 1.
Based on data from the ...
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