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

City Council
Agenda Item Summary

Name: Consideration of a Resolution approving a pass-through disposal rate
increase of 0.29% (as approved by the Monterey Regional Waste Management District) and an annual cost-of-living adjustment of 0.57%
for a total increase of 0.86%.

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, which includes whenever the Monterey Regional Waste Management District (MRWMD) Board of Directors authorizes a rate increase. MRWMD approved increases effective on January 1, 2011.

WM notified the City of the proposed fee increase on March 4, 2011. This notice conforms with the exclusive Franchise Agreement requiring WM to notify the City at least 60 days in advance. The total adjustment is comprised of a pass-through disposal rate increase of 0.29% and an annual cost-of-living adjustment of 0.57%.

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

Staff Recommendation: Provide policy direction on whether to approve the requested 0.29% fee adjustment and the 0.57% cost-of-living adjustment, 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: At its March 2, 2010, meeting Council approved a pass-through fee adjustment of 0.54% and a cost-of-living increase of 2.48% (Resolution 2010-20). This resolution was subsequently rescinded on April 6, 2010 and only the 0.54% passthrough fee adjustment was approved (Resolution 2010-33). Prior to that, Council approved a Waste Management fee increase of 11.7% in April 2008 and 5.93% increase in January 2006.

Reviewed by:

_________________________________ _________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING AN ANNUAL PASS-THROUGH RATE INCREASE OF 0.29% FOR WASTE MANAGEMENT SERVICES AND A 0.57% COST-OF-LIVING ADJUSTMENT FOR A TOTAL INCREASE OF 0.86%

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 January 1, 2011; and
WHEREAS, Waste Management is requesting a 0.57% cost-of-living adjustment
in addition to the requested 0.29% 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 0.29% 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 0.57% for 2011.
3. Authorize the effective date of January 1, 2011 for the above annual rate
adjustment.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA this 5th day of April 2011, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:

_______________________
SUE McCLOUD, MAYOR

ATTEST:

_________________
Heidi Burch, City Clerk