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8.A. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the Utilities Committee <br /> January 27, 2014 <br /> SUBJECT <br /> Solid Waste Collection Rate Increase for Unscheduled Services <br /> RECOMMENDATION <br /> Adopt a resolution maintaining the existing Solid Waste collection rates and approving a <br /> 1.69% increase for Unscheduled Services effective January 28, 2014. <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, processing and disposal costs, plus agency fees. <br /> Recology San Mateo County (Recology) has been contracted with by the City of <br /> Redwood City to provide collection services in Redwood City. Redwood City is a <br /> member agency of SBWMA (Sough Bayside Waste Management Authority) along with <br /> other cities and agencies. Recology provides to SBWMA an annual Compensation <br /> Application for the collection services, processing and disposal costs, and agency <br /> services they provide each year. SBWMA reviews and audits the Application and when <br /> approved by the SBWMA Board of Directors, becomes the basis for setting rates for the <br /> upcoming year. <br /> ANALYSIS <br /> For 2014, the Committee's recommendation is to maintain the existing residential and <br /> commercial collection rates for the collection of solid waste and recyclables materials <br /> and increase the rate for Unscheduled Services by 1.69%. Unscheduled Services <br /> include key service, container cleaning, additional container purchase or rental, and <br /> distance charges. This information was presented to the Council Utilities Committee at <br /> their meeting on July 10, 2013 and the item was approved to be brought to the full City <br /> Council for their consideration. <br /> Based on Recology's 2014 Application and the SBWMA's subsequent audit, the City's <br /> costs for collection services is $10,259.750. Recology's compensation for rate year <br /> 2014 is based on adjusting the Recology's SBWMA-approved 2013 costs by applying <br /> the changes in several indices (Employment Cost Index, Fuel Index, Consumer Price <br /> Index — All Urban Consumers) and the wages and benefits schedule from Recology's <br /> Collective Bargaining Agreements. <br /> Materials collected from the City's residents and businesses are delivered to the <br /> SBWMA-owned Shoreway Environmental Center. South Bay Recycling, LLC (SBR) <br /> operates the Shoreway facility under separate contract with the SBWMA. SBR's costs <br />