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REQUEST FOR <br /> COUNCIL ACTION Ed„cauo" 's° <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> MAY 20, 2002 <br /> TITLE: APPROVED <br /> ❑ As Recommended <br /> ACTIONS MODIFYING REFUSE ❑ As Amended s <br /> ❑ Ordinance on 1 Reading <br /> ADMINISTRATIVE FEES <br /> 0 Ordinance on 2nd Reading <br /> ❑ Implementing Resolution <br /> ❑ Set Public Hearing For <br /> CONTINUED TO <br /> v.Gc_—� FILE NUMBER A-2002-082 <br /> CITY M AGER e) r oD<- 0V <br /> RECOMMENDED ACTION <br /> 1 . Adopt a resolution modifying the City' s refuse program surcharge on <br /> business and apartment service. <br /> 2 . Direct the City Attorney to prepare and authorize the Clerk of the <br /> Council and the City Manager to execute an amendment to the <br /> agreement with Waste Management Inc. establishing a method for <br /> adjusting the City' s administrative fee for curbside service. <br /> DISCUSSION <br /> Pursuant to the agreement with Waste Management, the City currently <br /> receives seven and one-half percent of the business and apartment refuse <br /> charges to pay for the costs of administering the refuse collection and <br /> recycling enterprise . That percent (referred to as the refuse program <br /> surcharge) has remained at the same level since 1997 . <br /> Any change in the surcharge must be established by Council resolution. <br /> At this time, it is recommended that the surcharge be increased to nine <br /> percent to support increased costs of the enterprise. Other cities <br /> charge similar fees that range up to 19 . 4 percent . Due to decreases in <br /> other components of the business and apartment rates, there will be no <br /> increase in the total rates charged to the customers . <br /> The agreement with Waste Management also establishes the rate for <br /> curbside service and a methodology for adjusting the disposal, hauling <br /> and processing components of that rate. A method for adjusting the <br /> administrative component was inadvertently omitted from the agreement. <br /> As a result, the City' s administrative fee has remained the same for the <br /> past 12 years . The proposed amendment to the agreement will restructure <br /> the method of calculating the fees to accommodate future increases in <br /> this administrative component based on the consumer price index. The new <br /> Page 197 55 • B • <br />