CITY COUNCIL: 11.95% Rate Increase for 2008 to Waste Management

City Council
Agenda Item Summary

Name: Consideration of a Resolution approving a rate increase of 11.95% for 2008 to
reflect increases in disposal fees (approved by the Monterey Regional Waste
Management District), a Cost of Living Adjustment, a fuel price increase offset, and a fair rate of return.

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 February 1, 2008.

WM originally notified the City on October 12, 2007 regarding a fee adjustment.
Subsequently, on February 27, 2008, it resent a notice that requested an 11.95% fee
adjustment. This notice is in conformance with the exclusive Franchise Agreement that requires WM to notify the City at least 60 days in advance.

WM staff will make a PowerPoint presentation at the April City Council meeting
explaining in more detail its request for the proposed increased fee adjustment.

Overall Cost:
City and Grant Funds: $0

Staff Recommendation: Provide policy direction on whether to approve the requested
11.95% fee adjustment or an alternate fee adjustment.

Important Considerations: The WM request is in conformance to Section 6, Collection Rates, as written in the City’s exclusive Franchise Agreement (Attachment B)

Decision Record: Council annually reviews rate adjustments. The last fee adjustment
of 5.93% was approved by the City Council on January 10, 2006.

Reviewed by:


______________________________ _________________
Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING A RATE INCREASE OF 11.95% FOR 2008 TO REFLECT INCREASES IN DISPOSAL FEES (APPROVED BY THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT), A COST OF LIVING ADJUSTMENT, A FUEL PRICE INCREASE OFFSET, AND A FAIR RATE OF RETURN.

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 February 1, 2008; and

WHEREAS, Waste Management is requesting a Cost of Living adjustment; and

WHEREAS, Waste Management is requesting a fuel price increase offset; and

WHEREAS, Waste Management is requesting a fair rate of return; and

WHEREAS, Waste Management submitted a formal written request 60 days prior to the effective date as required in their 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 11.95% for residential and commercial
customers to cover cost increases to disposal fees, COLA adjustment, fuel price increases offset, and a fair rate of return requested by the Monterey Regional Waste Management District.

2. Authorize the effective date of April 1, 2008 for the above annual rate adjustment.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of April 2008, by the following roll call vote:

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

SIGNED:

_____________________
Heidi Burch, City Clerk

ATTEST:

_______________________
SUE McCLOUD, MAYOR