CITY COUNCIL: Resolution Approving Waste Management Pass-Through Disposal Rate Increase & Cost-of-Living Adjustment

City Council
Agenda Item Summary

Name: Consideration of a Resolution approving a pass-through disposal rate increase of 0.54% (as approved by the Monterey Regional Waste Management District) and an annual cost-of-living adjustment of 2.48%.

Description: Waste Management (WM), Inc. is the City’s trash and recycle collector. It has an exclusive Franchise Agreement with the City. This agreement allows WM to request an annual rate adjustment, whenever the Monterey Regional Waste Management District (MRWMD) Board of Directors authorizes a rate increase. MRWMD approved an increase, effective April 1, 2009.

WM notified the City of the proposed fee increase on January 5, 2009. This notice conforms with the exclusive Franchise Agreement requiring WM to notify the City at least 60 days in advance.

Overall Cost:
City and Grant Funds: N/A

Staff Recommendation: Provide policy direction on whether to approve the requested 0.54% fee adjustment and the 2.48% COLA or an alternate fee adjustment.

Important Considerations: The WM request conforms to Section 6, Collection Rates, as written in the City’s exclusive Franchise Agreement.

Decision Record: Council annually reviews rate adjustments. The most recent fee adjustment of 11.95% was approved by the City Council on April 3, 2008.

Reviewed by:

______________________________ _________________
Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2009 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING AN ANNUAL PASS-THROUGH RATE INCREASE OF 0.54% FOR WASTE MANAGEMENT SERVICES AND A 2.54% COST-OF-LIVING ADJUSTMENT

WHEREAS, Waste Management is the City’s trash and recycle collector; and

WHEREAS, the Monterey Regional Waste Management District increased the disposal fees to take effect on April 1, 2009; and

WHEREAS, Waste Management is requesting a 2.54% cost-of-living adjustment; and

WHEREAS, Waste Management submitted a formal written request 60 days prior to the effective date as required in its exclusive Franchise Agreement.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Approve an annual rate adjustment of 0.54% for residential and commercial customers to cover cost increases to disposal fees, as requested by the Monterey Regional Waste Management District.

2. Authorize the effective date of April 1, 2009 for the above annual rate adjustment.

3. Approve a cost-of-living adjustment increase of 2.48% for 2009.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of February 2009, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

_____________________
Heidi Burch, City Clerk

ATTEST:

_______________________
SUE McCLOUD, MAYOR