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Resolution confirming the Consumer Price Index-based rate adjustments to solid waste collection and biosolids transportation rates under the franchise agreement with South San Francisco Scavenger Company effective July 1, 2025
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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 (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 2025-26, the CPI-based adjustment of 2.17%, 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 $19,501.43 to $19,924.61 per month, reflecting the 2.17% CPI-based increase; and
WHEREAS, under the Second Amendment to the Agreement, the tonnage rate for the transport of biosolids (organic sewage sludge) is also subject to an annual CPI adjustment; 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 2.76% for the applicable period, and SSFSC has ...
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