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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, 2019. (Christina Crosby, Interim Director of Finance).
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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, 2019.
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BACKGROUND/DISCUSSION
On July 9, 1997, the City Council approved a franchise agreement for collection and disposal of solid waste with the South San Francisco Scavenger Company (Franchise Agreement). Under the terms of the Franchise Agreement, the solid waste rates are adjusted every third year based on a rate survey of cities throughout the San Francisco Bay Area, and adjusted by 80 percent of the Consumer Price Index (CPI) in the intervening years.
The proposed rates for solid waste and sludge hauling for 2019-20 accurately reflect an increase of 80 percent of the CPI or 2.63 percent. City staff has confirmed that the data from the United States Bureau of Labor Statistics indicates that the CPI in February 2018 was 275.699 and 284.758 in February 2019. Staff has also confirmed the calculation of 80 percent of the change in CPI, equaled 2.63 percent.
Scavengers would like to note, the effects of policy changes in China regarding the importation of paper, cardboard and plastics has created chaos in the world recycling markets. This is primarily due to the loss of markets for recyclable materials, which has led to a significant revenue decrease and a significant increase in expenses in the industry, not just in the Bay Area or in California, but nationwide and worldwide. The lack of markets and the increased costs of sorting to a higher standard, is putting tremendous upward pressure on rates, since the mandated diversion goals have not changed. As a result, the Scavengers would like to note that ra...
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