CITY COUNCIL: Resolution Authorizing Pass-Through Disposal Rate Increase & Annual Cost-of-Living Adjustment for Waste Management (WM)

Meeting Date: April 6, 2010
Prepared by: Rich Guillen

City Council
Agenda Item Summary

Name: Re-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% for a total increase of 3.02%.

Description: Waste Management (WM), Inc. is the City’s trash and recyclable goods 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 February 2, 2010. WM notified the City of the proposed fee increase on January 5, 2009. Subsequently, WM withdrew their request so to minimize the financial burden to their customers with the downturn of the economy. WM is now requesting again that the City consider its request for a rate increase. This notice conforms to the exclusive Franchise Agreement requiring WM to notify the City at least 60 days in advance.

Overall Cost:
City Funds: N/A
Grant Funds: N/A

Staff Recommendation: Adopt the Resolution authorizing the requested 0.54% fee adjustment and the 2.48% COLA or an alternate COLA adjustment.

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

Concerns were expressed by residents subsequent to the Council decision on March 2, 2010. Mayor McCloud requested a reconsideration of the item.

Decision Record: Council annually reviews WM 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 2010-
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 2.48% COST-OF-LIVING ADJUSTMENT

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

WHEREAS, the Monterey Regional Waste Management District increased the
disposal fees to take effect on February 2, 2010; and

WHEREAS, Waste Management is requesting a 2.48% cost-of-living adjustment
in addition to the requested .54% pass-through disposal cost; 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. Approve a cost-of-living adjustment increase of 2.48% for 2010.

3. Authorize the effective date of February 2, 2010 for the above annual rate adjustment.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 6th day of April 2010, by the following roll call vote:

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

SIGNED:

_______________________
SUE McCLOUD, MAYOR


ATTEST:

_____________________
Heidi Burch, City Clerk