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i 7. PUBLIC HEARING(S) A. Solid Waste Collection Rate Increase. (803) Recommendation: Approve, by resolution, a 7.81% increase in the rates for solid waste and recycling collection effective January 10, 2012 RESOLUTION NO. 15162 OF THE CITY COUNCIL OF THE CITY OF REDWOOD CITY ESTABLISHING SOLID WASTE COLLECTION RATES (EXCLUDES THE H�z�4R�ous WASTE FEE) Mr. Gibbons, Public Works Superintendent, presented the report (on file) and also introduced others present who would also be available to answer questions. He then explained the specifics and rationale of the Solid Waste Collection Rate increase. He also covered the other agencies involved Recology, South Bay Recycling, and SBWMA. Mr. Gibbons then proceeded to explain the Proposition 218 procedures that were followed and how many notifications were sent out. Staff also held a community meeting with 10 people in attendance and lasting about 90 minutes. Mr. Gibbons asked City Clerk Vonderlinden the number of protest letters received as of 5:00 p.m. and Ms. Vonderlinden said 65 as of that time. Mr. Gibbons explained how the revenue collected is paid directly to Recology and how the rate setting was handled. He covered the solid waste collection program and the benefits and cost to the customer. He provided historical data on rate increases and how the current increase was not out of the range from prior increases. He also covered the various containers that customers can pick from and all the options available. One Council Member provided some historical data on the change of the provider from Allied to Recology (beginning Jan. 1, 2011) and the difference on the old approach (cost plus contract) and the new contract (fixed fee approach). Cliff Feldman of South Bayside Waste Management Authority (SBWMA), added details about the old contract with Allied. This Council Member explained that with the prior contract customers were subsidizing the rate payers and with Recology this no longer occurs. Mr. Feldman added that Redwood City decided to handle the losses earlier and took care of that problem last year, while other agencies have yet to address such losses. One Council Member asked staff to go over the alternatives. Mr. Gibbons explained these in detail and the Council Member appreciated it. Another Council Member asked staff to comment on the legislation and its impact. Mario Puccinelli of Recology San Mateo County (RSMC), covered the various components that went into the rates based on last year' AB 341. He said that Redwood City is poised to meet those requirements. The Council Member noted that such legislation has an impact on the issue of rate increases but the benefit is that we are paying more for substantially more services. JOINT CITY COUNCIUREDEVELOPMENT AGENCY BOARD January 9, 2012 MEETING MINUTES PAGE 5 MINUTE BOOK NO. 64 Page No. 05