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OR CIT COUNCI AGEND TEM <br />Agenda Date Requested: June 27. 1994 <br />Requested By: G'1 a Department: Public Works <br />XXXX Report Resolution Ordinance <br />Exhibits: Letter from BFI Waste Systems <br />SU RY & RECOMMENDATION <br />In 1990, the City Council approved a five (5) year contract with BFI Waste <br />Systems for the collection and disposal of commercial solid waste. The <br />Contract includes both front-load containers and roll-off service. The <br />original contract provided for an annual rate increase, based on the <br />Consumer Price Index (CPI), with no increase to exceed 4$ in any year. <br />This is the final year 'of the Contract, which also contains a five (5) year <br />renewal option. <br />One of the services provided is roll-off containers, which are uncompacted. <br />With the dramatic increases in landfill costs, an inequitable situation has <br />been created. BFI has had no problem absorbing landfill increases in its <br />front-load container service because trash is compacted approximately 7 to <br />1. Therefore, disposal fees make up a small percentage of total cost, and <br />increases do not dramatically affect total cost. However, with roll-off <br />service, which is non-compacted trash, landfill fees are approximately 30$ <br />of the total cost. Due to the language of the Contract, BFI is unable to <br />increase roll-off fees to pay for its costs to provide the service. <br />BFI has requested an increase, for roll-off service only, which will adjust <br />the fees to actual cost. The proposed rate increase is as follows. <br />1990 RATE 1993 RATE <br />20 CY $8.25/CY $8.99/CY <br />30 CY $7.00/CY $7.65/CY <br />40 CY $6.00/CY $6.58/CY <br />PROPOSED RATE INCREASE <br />$1o.21/cY $1.22/cY <br />$ 8.84/CY $1.19/CY <br />$ 7.74/CY $1.16/CY <br />It is recommended that the proposed rate increase be approved. Rates <br />charged to commercial customers will be adjusted on October 1, 1994. <br />Action Required by Council: Approve the rate increase requested by BFI <br />Waste Systems for roll-off service. <br />Availability of Funds: <br />General Fund Water/Wastewater <br />Capital Improvement General Revenue Sharing <br />Other <br />Account Number: N/A _ Funds Available: YES NO <br />~nurovea ror city council egenaa <br />Robert T. Herrera DATE <br />City Manager <br />