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The San Ramon City Council is set to hold a public hearing on a resolution that would give the city more flexibility in determining the fee it charges to its waste management provider.
The city’s franchise agreement with Alameda County Industries of San Ramon (ACI) for collecting and processing solid waste give the agency the exclusive right to provide waste collection and sanitation services within San Ramon, for which the city charges ACI a franchise fee.
Under existing municipal code, that fee is determined as a percentage of ACI’s gross revenue from its services within the city, with the city having since moved towards adjusting the fee to reflect the “actual costs” associated with contract management activities, according to a staff report from City Attorney Martin Lysons.
Currently, the city is working with consultants on a cost analysis of its contract management activities on which to base a new franchise fee.
“The proposed Ordinance is the first step in revising the method that the City will use to calculate the Franchise Fee,” Lysons wrote. “Rather than requiring that the Franchise Fee be based on gross revenues received, the proposed Ordinance will provide for the City Council to set the Franchise Fee annually by Resolution.”
“This will give the Council the flexibility to adjust the Franchise Fee as the costs associated with Contract Management Activities increase or decrease, rather than relying on a pre-set percentage,” he continued.
If the council decides to move forward with the proposed ordinance as it stands, it would be set for a vote at the next regular meeting on Sept. 23. If the council opts to make changes to the proposed ordinance, it would be reintroduced on Sept. 23, then up for a vote on Oct. 14.
The San Ramon City Council is set to meet at 7 p.m. Tuesday (Sept. 9). The agenda is available here.
