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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 8, 2018 <br /> <br />SUBJECT <br />Adopt 2018 Solid Waste Rates for Regular and Unscheduled Services Provided by <br />Recology San Mateo County <br /> <br />RECOMMENDATION <br />Hold a Public Hearing and Adopt a Resolution Establishing 2018 Solid Waste Collection <br />Rates for Regular and Unscheduled Services Provided by Recology San Mateo County <br /> <br />BACKGROUND <br />The City Council annually sets rates for solid waste collection. Solid waste services, <br />which include garbage, recycling, organics collection, disposal, and processing, are <br />provided by Recology San Mateo County (Recology) through a franchise agreement <br />with the City. The current franchise agreement began in 2010 and is scheduled to run <br />through 2020. <br /> <br />The City is one of twelve member agencies of the Joint Powers Authority, South <br />Bayside Waste Management Authority (SBWMA). SBWMA provides oversight, support <br />and management of solid waste collection services for the member agencies and <br />annually reviews and audits Recology’s Compensation Application. The Compensation <br />Application outlines costs for solid waste and agency services for the year. Once the <br />application is approved by SBWMA, it becomes the basis for setting solid waste <br />collection rates for the member agencies. <br /> <br />For 2018, Recology’s approved application requires a minimum 2.3% increase for <br />regular, scheduled solid waste services and a 1.72% increase for unscheduled solid <br />waste services to meet revenue requirements for Redwood City. Regular, scheduled <br />solid waste services refer to the basic collection of residential and commercial solid <br />waste and recyclable materials, such as weekly collection. Unscheduled services <br />include miscellaneous services that are above and beyond routine garbage collection, <br />such as backyard collection, key service, or additional carts. Staff recommends a 3.34% <br />increase for regular, scheduled solid waste services to align with the San Francisco- <br />Oakland-San Jose CPI increase and a 1.72% increase to unscheduled solid waste <br />services based on the national average CPI adjustment for urban consumers. <br /> <br />The 3.34% proposed adjustment is the first adjustment to regular solid waste rates <br />since 2013. Figures 1 and 2 below chart Redwood City’s current and proposed rates <br />against those of other Bay Area agencies. Even with the proposed increases, Redwood <br />7.A. - Page 1