CITY OF MODESTO
COUNCIL AGENDA REPORT
April 26. 2005
Date: April 11, 2005
Mayor and City Council
Cheryl Detmar, Deputy Director of Finance
SUBJECT: Garbage Billing Contract
CONTACT: Cheryl Detmar, firstname.lastname@example.org, ext. 15174
RECOMMENDED COUNCIL ACTION:
Consider a resolution approving garbage-billing contracts between the City of Modesto, Waste
Management Holdings, Inc, Gilton Solid Waste Management and Bertolotti Modesto Disposal,
The City of Modesto contracts with Waste Management Holdings, Inc. and Gilton Solid Waste
Management to provide garbage billing for approximately 54,000 single family residential utility
customers. Currently the City of Modesto charges the collectors $0.98 per bill for this service,
which generates approximately $532,000 in General Fund revenue annually. As allowed by the
escalator in the billing agreement, the per-bill amount will increase to $1.01 effective July 1,
2005. This will result in additional revenue of approximately $1,620.
Starting June 2005 the City will begin billing for Bertolotti Modesto Disposal, Inc. This additional
service will provide approximately $36,000 in new revenue annually.
REASONS FOR RECOMMENDATION:
Adoption of new Senior/Disabled Discount rates and City of Modesto’s new metering policy
required changes to existing contracts. The current contract between the City of Modesto,
Waste Management and Gilton Disposal allows for increases linked to the local consumer price
index. These contracts renew annually unless either the City or the haulers give notice of intent
to the other party.
A contract with Bertolotti Modesto Disposal is needed to provide billing services for their single-
family residential customers who have City of Modesto water and are within city limits.
EXISTING POLICY / RELATIONSHIP TO THE STRATEGIC PLAN:
Currently City of Modesto on behalf of the garbage collection companies provides billing service
to and collects ga