HomeMy WebLinkAbout12/01/1992, C-5 - TRANSFER OF FUNDS FROM SAN LUIS GARBAGE COMPANY TO THE CITY OF SAN LUIS OBISPO FOR PROMOTION OF RECYCLING PROGRAMS IIIII�I�IIIIVIIIIIII�� IIIIIII "J (, MEETING DATE:
III=IIII Ciof san tuts oBIspo December 1 1992
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COUNCIL AGENDA REPORT ITEM NUMBER/JSO
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FROM: John Moss, Acting Utilities Director
PREPARED BY: Cyndi Butterfield, Solid Waste Coordinator__"O`
SUBJECT: Transfer of Funds from San Luis Garbage
Company to .the City of San Luis Obispo for
Promotion of Recycling Programs
CAO RECOMMENDATION:
Approve and authorize the Mayor to execute an agreement for
transfer of funds from San Luis Garbage Company to the City of San
Luis Obispo in the annual amount of $9, 000, and authorize the Mayor
to execute approval of amendment to the budget for Solid Waste
Programs in the above amount to be used for the purposes of
recycling promotion.
DISCUSSION
San Luis Garbage Company currently is responsible for promotion of
all of the City's residential curbside, multi-unit and commercial
recycling programs. Residential and commercial garbage rates
provide $30, 000 annually for this promotion as indicated by solid
waste ratemaking calculations. This is double the amount per
customer contributed to recycling promotion by other cities
serviced by San Luis Garbage. This extra amount was allocated for
promotion of City commercial programs by San Luis Garbage Company
at a time when San Luis Obispo was first on line with commercial
collection services. However, commercial recycling promotion
currently produced by San Luis Garbage is directed to customers
throughout their collection area and other jurisdictions also
benefit from the program.
Of this $30, 000 annual total, $16, 000 is directed to promotion of
residential recycling programs and $14, 000 to promotion of
commercial recycling programs. with the above in mind, San Luis
Garbage and the City have agreed that the $14, 000 annual
expenditure for promotion of commercial programs should be
reallocated as follows:
$5, 000 are to be retained by the Garbage Co. to fund ongoing
promotion of the City's commercial programs by San Luis
Garbage Company.
$9,000 are to be transferred to the City for City promotion of
recycling programs.
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��������►i�Vlilllllllll1° ��U�ll city of San LUIS OBispo
COUNCIL AGENDA REPORT
With this plan the City will continue to be included in commercial
recycling promotion produced by the Garbage Co. and will be able to
strengthen promotion of targeted City programs. Enhanced promotion
of the City's existing programs is essential in reaching the first
AB 939 goal of 25% diversion by 1995.
FISCAL IMPACTS
Approval of the recommended amendment will transfer a portion of
the responsibility from San Luis Garbage (Franchisee) to the City
of San Luis Obispo for promoting certain City recycling programs.
In the current franchise agreement, San Luis Garbage agreed to the
use of $30, 000 of the revenue derived from garbage rates for
recycling promotion. The recommended amendment will approve the
City's acceptance of $9, 000 of this amount, in two biannual
payments, for targeted commercial recycling program promotion by
the Solid Waste Coordinator.
Attachment: Agreement
AGREEMENT
TO TRANSFER FUNDS FOR PROMOTION
FROM SAN LUIS GARBAGE COMPANY TO THE
CITY OF SAN LUIS OBISPO
This agreement is made this day of _ 1992 by
and between the City of San Luis Obispo (City) and San Luis Garbage
Company (Franchisee) .
SECTION I. RECITALS
The City and the Franchisee recognize and acknowledge the following
circumstances:
A. The Franchisee arranges for collection and disposal of solid
waste in the City of San Luis Obispo and is obligated to
collect recyclables from residential and commercial accounts
in the City.
B. The Franchisee has promoted the City's residential and
commercial recycling programs through television, radio and
newspaper advertisements and by publishing and distributing
brochures.
C. Solid waste ratemaking calculations indicate the Franchisee is
spending at least $30, 000 each year to promote the City's
recycling activities.
D. The Franchisee directs $16, 000 of this annual total to
promotion of residential recycling programs for the City.
E. The Franchisee directs $14 , 000 of the annual total to
promotion of commercial recycling programs for the City.
F. The Franchisee and the City agree that the $14, 000 annual
expenditure by the Franchisee for promotion of commercial
programs shall be reallocated. Five thousand dollars are to
be retained by the Franchisee to fund promotion of commercial
programs . Nine thousand dollars are to be transferred to the
City for promotion of recycling programs.
66-3
Agreement for Transfer of Funds
Page 2
SECTION II. GENERAL STIPULATIONS
A. CITY'S DUTIES AND RESPONSIBILITIES
2 . The City agrees to coordinate recycling promotion with
the Franchisee and to work closely with SLOCO Recycles in
the development and implementation of promotional
programs.
B. THE FRANCHISEE'S RESPONSIBILITIES
1. The Franchisee shall transfer $9, 000 annually to the City
in two biannual payments of $4 , 500 each.
2 . The Franchisee shall pay its annual remittance in two
installments on January 1 and July 1 of each year.
3 . The Franchisee agrees to regularly inform the City of
plans for commercial recycling promotion and to provide
the City with biannual projections of commercial
recycling promotion programs for which the $5, 000 will be
used.
IN WITNESS WHEREOF, City and Franchisee have executed this
agreement on the day and year first bove written.
FRANC
By.
San u ' s arba mpa
CITY OF SAN LUIS OBISPO
By: