Title
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, 2025. (Karen Chang, Finance Director)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution affirming that the proposed Consumer Price Index-based rate adjustments to Solid Waste and Biosolids Transportation Rates are consistent with the terms of the Franchise agreement with South San Francisco Scavenger Company, with rate changes effective July 1, 2025
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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 a fourth amendment to the 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 a condition of that amendment, SSFSC is required to provide an annual update on the status of their capital improvement program. Representatives of SSFSC will be at the Council meeting on June 11th to present this information.
Under the terms of the Franchise Agreement, SSFSC adjusts their solid waste rates 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 2025-26 is the first year in which the 80% of CPI adjustment will be applied. The next rate study is due by March 31, 2028. 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 ...
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