HomeMy WebLinkAbout2012-39 Recology Ashland Sanitary Rate Increase
RESOLUTION NO. 2012-5q
A RESOLUTION AUTHORIZING A RATE INCREASE FOR SOLID
WASTE COLLECTION AND HAULING SERVICES PROVIDED BY
RECOLOGY ASHLAND SANITARY
RECITALS:
A. The City of Ashland contracts with Recology Ashland Sanitary Service by means of a
franchise agreement for provision of solid waste and recyclable materials collection and
disposal services within the City until March 31, 2018.
B. The franchise agreement, Ordinance 2582, states Recology can petition the City Council to
increase its solid waste collection and disposal rates and seek binding arbitration if the parties
fail to agree on new rates.
C. Following a request by Recology Ashland Sanitary Service in December 2011 for a 23% rate
increase, the City granted an 11% increase and directed staff to conduct a thorough review of rates
and services in order to determine if an additional rate increase is warranted.
D. The City contracted with Chris Bell, CPA, for a rate review, which determined that Recology is
entitled to an additional 8% rate increase in order to achieve a usual and customary profit margin on
Ashland solid waste disposal services.
E. The franchise requires that rate increases must be approved by Council resolution.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS
SECTION 1 The rates for the collection, hauling and disposal of solid waste and recyclable
materials within the city of Ashland as indicated in Appendix A are approved.
SECTION 2 The adopted rates will take effect January 1, 2013, and shall remain in effect unless
amended by a vote of the Ashland City Council.
SECTION 3 The City will review current services and discounts provided by Recology; propose
franchise agreement revisions to reflect a formula for rate increases hereafter and current best
practices for solid waste collection; and, seek a mutual agreement with Recology on a
subsequent rate increase and on priorities for solid waste collection services.
SECTION 4 This resolution takes effect upon signing by the Mayor.
This resolution was read y title onl== with Ashland Municipal Code. PASSED
and AD ED this day of 2012.
Barbara Christensen, City Recorder
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SIGNED and APPROVED this day of 41 , 2012
J Stromberg, Mayor
Reviewrd as to form:
David Lohman, City Attorney
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