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vehicles in rate year 2020 of the Current Franchise Agreement. Pursuant to these <br />assumptions, the Base Contractor’s Compensation will: <br />· Increase 2.4% from 2019 to 2020; <br />· Increase 10.2% from 2020 to 2021; and <br />· Adjust annually thereafter, per changes in industry indices and service level <br />changes (capped at a 5% increase per year). <br /> <br />Redwood City’s portion of this base compensation would be $11,458,072. This is <br />approximately 12.6% higher than the 2018 compensation of $10,173,164. The rates that <br />Redwood City charges its customers include Recology compensation, SBWMA costs to <br />operate the Shoreway transfer facility, waste disposal costs, franchise fees and other <br />minor charges. In addition to the increase in Recology compensation, disposal costs are <br />also anticipated to increase by 2021. <br /> <br />The City Council approved a rate increase of 3.34% for 2018, which was the first rate <br />increase since 2013. Redwood City has engaged a consultant to conduct a <br />comprehensive rate study and the study is currently underway. The rate study, among <br />other items, will also analyze the Recology compensation and disposal cost impacts on <br />the rates and consider smoothing the rate increases over multiple years. The rate study <br />is expected to be completed by August of this year and Staff anticipates presenting the <br />study recommendations to the City Council around the same time. <br /> <br /> <br />Service Changes <br />Residential and commercial customers are not expected to experience any changes to <br />their current collection services, which include: <br /> <br />Single Family Residential: <br />· Weekly solid waste, recyclable materials and organic materials collection <br />· Two on-call bulky item collections per year <br />· Household battery and cell phone collection <br />· Holiday tree collection <br /> <br />Multi-family Residential: <br />· Weekly solid waste and recyclable materials collection (more frequent service <br />may be scheduled for an additional cost) <br />· Organic materials collection for an additional cost <br />· Two on-call bulky item collections (additional collections may be scheduled for an <br />additional cost) <br />· Household battery and cell phone collection <br />· Holiday tree collection <br />6.2.B. - Page 3