HomeMy WebLinkAboutReso 78-2025 (25-630)City of South San Francisco
City Council
Resolution: RES 78-2025
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File Number: 25-630 Enactment Number: RES 78-2025
RESOLUTION CONFIRMING THE CONSUMER PRICE
INDEX -BASED RATE ADJUSTMENTS TO SOLID
WASTE COLLECTION AND BIOSOLIDS
TRANSPORTATION RATES UNDER THE FRANCHISE
AGREEMENT WITH SOUTH SAN FRANCICO
SCAVENGER COMPANY EFFECTIVE JULY 1, 2025
WHEREAS, on July 9, 1997, the City Council approved a Franchise Agreement (the
"Agreement") with South San Francisco Scavenger Company (SSFSC) for the collection and disposal of
solid waste within the City; and
WHEREAS, the City entered into a Fourth Amendment to the Agreement in 2013 establishing a
rolling 20-year franchise term to support SSFSC's ability to secure financing for capital improvements,
contingent upon annual reporting by SSFSC regarding the status of their capital improvement program; and
WHEREAS, pursuant to the Agreement, solid waste collection rates are reviewed and adjusted
triennially based on a regional rate survey, with interim year adjustments based on 80% of the Consumer
Price Index (CPI) for the San Francisco -Oakland -Hayward area,- and
WHEREAS, SSFSC has provided the required Notice of Intent and updated rate schedules
reflecting this adjustment; and
WHEREAS, for Fiscal Year 2025-26, the CPI -based adjustment of 2.17%, as verified by City staff
using Bureau of Labor Statistics data, will be applied to collection rates and the Source Reduction and
Recycling Element Franchise Fee (SRRE fee); and
WHEREAS, the SRRE fee will be adjusted accordingly from $19,501.43 to $19,924.61 per month,
reflecting the 2.17% CPI -based increase; and
WHEREAS, under the Second Amendment to the Agreement, the tonnage rate for the transport of
biosolids (organic sewage sludge) is also subject to an annual CPI adjustment; and
WHEREAS, to comply with SB 1383 mandates, a revised rate structure was agreed in March
20231 establishing a CPI -based increase effective annually on January 1st, with a minimum of 2.5% and
maximum of 6%, and
WHEREAS, City staff verified a CPI increase of 2.76% for the applicable period, and SSFSC has
agreed to apply this increase effective July 1, 2025, pending formal revision of the conflicting language in
Section 5.9(a)(2) of the Second Amendment to align with the new annual adjustment date of January 1st;
and
WHEREAS, the City Manager's Office is currently reviewing the Franchise Agreement and will
work with SSFSC to formally reconcile inconsistencies in rate adjustment timing in a future amendment.
City of South San Francisco
File Number: 25-630
Enactment Number: RES 78-2025
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco
as follows:
1. The Council confirms the CPI -based solid waste rate adjustment of 2.17% for FY 2025-26, effective
July 1, 2025, as consistent with the Franchise Agreement.
2. The Council confirms the adjustment of the monthly SRRE fee from $19,501.43 to $19,924.61,
effective July 1, 2025.
3. The Council acknowledges the 2.76% increase in biosolid tonnage rates, effective July 1, 2025, as an
interim measure pending resolution of inconsistencies in the Franchise Agreement.
4. The City Manager or designee is directed to work with SSFSC to formally amend the Franchise
Agreement to reflect updated CPI adjustment protocols and avoid future discrepancies.
At a meeting of the City Council on 6/11/2025, a motion was made by Vice Mayor Addiego,
seconded by Councilmember Nicolas, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Flores, Vice Mayor Addiego, Councilmember Nagales,
Councilmember Coleman, and Councilmember Nicolas
Attest by �zv V*-r
R Govea Acosta, Cit Cler
City of South San Francisco