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7B <br />Page 3 <br />Given this background in 2006, the Utilities Committee recommended that the $2.4 million <br />payment from Allied be used as a rate stabilization reserve against future unanticipated <br />rate increases. <br />Fiscal Impact <br />Since the City, in accordance with the franchise agreement, does not pay Allied for the <br />collection of the City's solid waste, there will be no cost impact to the City if this rate <br />increase is approved. This practice is consistent for all SBWMA members. <br />r~ <br />~-'"-l__... <br />Brian P nt <br />Director of Finance and Financial Planning <br />,.----~, <br />~' >~ i~' <br />~~ ' % ' / <br />l <br />;, ~ ;,i ._ <br />i <br />r f Er n <br />Edwar =Everett ''~~ <br />City Manager <br />Attachment: <br />Allied Garbage Collection Rates Schedule Effective February 1, 2007 <br />3 <br />