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Managing Tomorrow’s Resources Today MEMORANDUM Page 4 of 11 RWC_Memo_19Dec2024 2. Contract Administration and Enforcement The City uses its Trash and Recycling Efforts program to manage, administer, and enforce the Agreement with Recology. Activities include preparing specifications, preparing the Request for Proposal (RFP), writing staff reports for Council issuance and approval, and receiving and reviewing the proposals responding to the RFP. Based upon review of the FY 2023-24 budget for the solid waste program, the total reasonable cost of franchise administration and enforcement that can be recovered by the Fees is $315,933. The City currently bills customers on behalf of Recology, so they receive a utility bill which includes their water, sewer, and solid waste services. These bills are prepared and distributed by the City’s Revenue Services department. The City estimated that 20% of the overall Revenue Services department budget is attributable to solid waste billing. By performing the billing to solid waste customers, the City is providing a benefit to Recology, saving the company staffing resources in exchange. Therefore, a total attributable portion of $462,328 could be recovered for the City’s solid waste billing services that benefit Recology. Figure 3 reflects a range of expenses to be recovered. In the event the City chooses not to continue providing billing services on Recology’s behalf, the lesser figure excludes the cost of billing services. Figure 3. City Contract Administration and Enforcement Expenses 3. Legal Support While legal support costs are a component included in consideration of costs that benefit a franchisee, no costs were included for the City in this analysis. The City currently allocates these costs to all departments through its Cost Allocation Plan. As a result, staffing costs for contract administration and enforcement include legal costs allocated by the City attorney. 4. Street Tree Trimming Hazard Mitigation. Recology’s collection vehicles are among the tallest vehicles driving through City streets, in particular residential streets, and will come into contact with streetside trees if not maintained properly. When stopped to collect the solid waste containers, the side-load and front-load mechanical apparatus used to lift collection containers above the truck and dump the material into the collection hopper increases the clearance height requirement of the vehicles. City crews are responsible for trimming street-side trees to allow clearance for Recology’s collection vehicles to avoid damaging the trees and/or the vehicle. If unmanaged, the trees would be damaged, becoming an unsightly blight and/or die completely or the vehicles would be damaged or unable to operate properly. The cost to maintain Contract Administration & Enforcement Minimum Maximum Contract Administration $315,933 $315,933 City Billing $0 $462,328 Total Expenses $315,933 $778,261 ATTY/RESO.0003/CC RESO 2025 SOLID WASTE COLLECTION RATES & ADOPTING FRANCHISE FEE STUDY - EXHIBIT B REV: 01-14-25 MI Page 4 of 11