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<br /> <br /> <br />DATE: May 16, 2017 <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Tom Tait, Public Works Services Director <br /> By: Vanessa Hevener, Environmental Services Officer <br /> <br />SUBJECT: RESOLUTION NO. 7165 SETTING SERVICE RATES FOR THE <br />COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES <br />PURSUANT TO SECTION 5120.7 OF THE ARCADIA MUNICIPAL CODE <br />Recommendation: Adopt <br /> <br />SUMMARY <br /> <br />In accordance with the Residential Refuse and Recycling Agreement, Waste <br />Management Inc. (“WM”) is entitled to receive annual rate adjustments that are subject <br />to staff review and City Council approval. Waste Management has submitted a request <br />to adjust the single family and multi-family refuse rates by 1.55% for Fiscal Year 2017- <br />2018. Even with the proposed rate adjustment, the City’s residential refuse rates will <br />remain among the lowest 1/3 in the San Gabriel Valley compared to cities with similar <br />services. It is recommended that the City Council approve Resolution No. 7165, which <br />will set service rates for the collection of residential refuse and recyclables. <br /> <br />BACKGROUND <br /> <br />In June 2016, the City Council approved a five-year rate adjustment schedule in <br />accordance with Proposition 218 requirements. This is the second year of the approved <br />five (5) year rate adjustment schedule for single-family and multi-family rates based on <br />the rate adjustment formula. In October 2013, the City amended its existing contract <br />with WM which extended the term for an additional five years through June 2021. The <br />original contract was set to expire in June of 2017. The amended contract requires that <br />WM receive City Council approval for annual rate adjustments subject to a standardized <br />formula. The rate adjustment formula consists of three weighted indices: Consumer <br />Price Index (CPI) (65% of the total); Disposal/Green Waste Facility Index (30%); and <br />Producer Price Index (PPI) for fuel (5%). Resolution No. 7165 is attached for adoption <br />and includes, as part of the Resolution, the proposed rate schedules. <br /> <br /> <br />