20070402 - VII-2/VIII-C-1 - Laserfiche WebLink

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VII-2 VIII-C-1 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: March 29, 2007 SUBJECT: Public Hearing and 2"" Reading: Ordinance Amendment Relating to the Method of Adjusting Residential Solid Waste Collection and Recycling Rates RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action approving the 2"d Reading, after completion of the Public Hearing, of an Ordinance amendment relating to the method of adjusting residential solid waste collection and recycling rates. BACKGROUND At the City Council meeting on Monday February 5, 2007 the City Council approved four actions regarding the residential solid waste collection license request for proposal process, including directing: "City Staff to prepare the necessary Ordinance amendments for City Council consideration at a future meeting, that properly reflect the method for implementing residential solid waste collection rate adjustments, based on a consumer price index and fuel clause adjustment factor." The February 5, 2007 City Council meeting also included action that resulted in Waste Management being awarded the residential solid waste and recycling collection license. The ls` Reading of the Ordinance amendment was approved by the City Council at the meeting conducted on March 5, 2007. Current ordinance does not allow a rate adjustment the first year of the license, with future adjustments approved by the City Council. As the City Council will note, the ordinance amendment essentially states that rate adjustment provisions will be incorporated in the written agreement between the City and the licensed hauler (Waste Management). Thus, should fuel prices reach certain levels, both increases and decreases, the rates will adjust accordingly. Furthermore, there may also be an annual adjustment based on the CPI. Staff rec~nmends approval of the 2"d Reading of the attached Ordinance Amendment. David M. city Adm