TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: AUGUST 3, 2004

SUBJECT: COMMERCIAL REFUSE AND COLLECTION AGREEMENT WITH CALMET SERVICES, INC.

Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst

RECOMMENDATION

Authorize the Mayor and the City Clerk to execute a Non-exclusive Franchise Agreement for Commercial Refuse Collection and Disposal Services with CalMet Services, Inc. to be effective through December 31, 2004.

BACKGROUND & DISCUSSION

CalMet Services, Inc. (CalMet) has requested a business license to provide commercial and industrial roll-off and recycling services. CalMet has agreed to meet the requirements of the agreement, which include providing source reduction and recycling reports, obtaining a business license, submitting franchise and AB 939 fees, and submitting required insurance documentation. The addition of CalMet would authorize a total of 13 firms to conduct commercial refuse service in the City. The agreement also informs all commercial haulers that on December 20, 2000, the City issued a Notice of Non-Extension and that there might be no renewal of such annual agreements beyond December 21, 2005.

FISCAL IMPACT

The City receives a five percent franchise fee and a five percent AB 939 fee on gross receipts. Annually, the City received approximately $60,000 in franchise fees and AB 939 fees from the various commercial haulers.

Respectfully submitted:

Dean E. Allison, Director of Public Works

Reviewed by:

Les Evans, City Manager