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7.A. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> February 25, 2013 <br /> SUBJECT <br /> Solid Waste Collection Rate Increase <br /> RECOMMENDATION <br /> Approve, by resolution, a 3.0% increase in the rates for regular solid waste and <br /> recycling collection services, and a 3.25% increase for Unscheduled Services effective <br /> February 26, 2013. <br /> BACKGROUND <br /> The City Council annually sets the maximum rate to be charged for solid waste, <br /> recycling and compost collection. The total cost of the solid waste program includes the <br /> cost of the collection services, disposal and processing costs, and agency fees provided <br /> by Recology San Mateo County. Recology has been contracted with by the City of <br /> Redwood City to provide these services in Redwood City. Redwood City is a member <br /> agency of SBWMA, along with other cities. Recology provides to SBWMA an annual <br /> Compensation Application for the collection services, disposal and processing costs, <br /> and agency services they provide each year. SBMWA reviews and audits the <br /> Application, and if approved becomes the basis for setting rates for the upcoming year. <br /> For 2013, as explained in greater detail below, Recology's approved application <br /> requires a 3.0% increase in the rates for Regular solid waste and recycling collection <br /> services, and a 3.25% increase for Unscheduled Services. <br /> ANALYSIS <br /> Explanation of Rate Increase for 2013 <br /> There are several components to the proposed 2013 rate increase: <br /> ➢ Recology's Compensation — Based on Recology's 2013 Application and the <br /> SBWMA's subsequent audit, the City's costs for collection services is <br /> $18,055,164, a 3.0% increase from 2012. Recology's compensation for rate year <br /> 2013 is based on adjusting Recology's SBWMA-approved 2012 costs by <br /> applying the changes in several indices (Employment Cost Index, Fuel Index, <br /> Consumer Price Index — All Urban Consumers) and the wages and benefits <br /> schedule from Recology's Collective Bargaining Agreements. <br /> ➢ Disposal / Processing Fees at Shoreway Facility — Materials collected from the <br /> City's residents and businesses are delivered to the SBWMA-owned Shoreway <br />