CC 11-19-2024 Item No. 11 Adopt a maximum rate schedule for Rate Period Five for Recology_Desk ItemCC 11-19-2024
Item No. 11
Adopt a maximum
rate schedule for
Rate Period Five for
Recology
Desk Item
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: November 19, 2024
Agenda Item #11
Subject
Adopt a maximum rate schedule for Rate Period Five (RP 5) for Recology to provide
recycling, organics, and solid waste collection, recycling and organics processing
services, and transport for disposal as calculated using the allowed and approved
methodology in the Franchise Agreement (Attachment A).
Recommended Action
Adopt Resolution No. 24-XXX (Attachment B) to:
1) Adopt a maximum rate schedule for RP 5 for Recology to provide recycling,
organics, and solid waste collection, recycling and organics processing services,
and transport for disposal pursuant to the Franchise Agreement (Attachment A
(FA Exhibit E1)); and
2) Authorize the use of $394,465 of restricted-use Enterprise Funds to smooth and
mitigate the RP 5 adjustment.
Background:
Staff’s responses to questions received from councilmember are shown in
italics.
Q1: The cities which were comparably served in 2023 (provided in the
December 5, 2023 Supplemental Report and pasted below the current report
table) appear to have all had much greater rate increases in the past year (City
of Campbell, for example). Is the supplemental Enterprise Fund accounting
for why our 32 or 35 gallon cart fee is not increasing/matching comparables or
is there some other reason? Is it possible the other cities have added pre- or
post sorting to account for their rate increases? (Moore)
Staff response: The Cities of Campbell, Monte Sereno, Saratoga, and Town of Los
Gatos are represented by the West Valley Solid Waste Management Authority, and
they just recently negotiated a new franchise agreement which reset their rates
effective March of this year. Their new agreement does not include post-collection
sorting of garbage.
The use of Cupertino's Resource Recovery Fund to lessen rate impacts is keeping rates
lower for residents and businesses than they otherwise would be. As noted in the staff
report, without the proposed subsidy, rates for next year would increase by 7.08%,
which would mean an additional $0.88 per month for the average residential
ratepayer.
Attachments Provided with Original Staff Report:
A. Recology Franchise Agreement
B. Draft Resolution