HomeMy WebLinkAbout5.16 Amending the Schedule of Service Rates for Integrated Solid Waste ServicesSTAFF REPORT
CITY COUNCIL
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Agenda Item 5.16
DATE: June 17, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT: Amending the Schedule of Service Rates for Integrated Solid Waste
Services
Prepared by: Marsha Moore, MMC, City Clerk
EXECUTIVE SUMMARY:
The City Council will consider ratifying a resolution to amend the service rates for integrated
solid waste services. The City Council held a noticed public hearing on June 3, 2025 to
establish the garbage rates effective July 1, 2025 and to establish the Fiscal Year 2025 -26
refuse-related property tax assessment. The City Council deliberated on Item 6.1 and no public
comment was received. The City Council now needs to act to ratify the resolution regarding the
schedule of service rates for integrated solid waste services.
STAFF RECOMMENDATION:
Adopt the Resolution Amending the Schedule of Service Rates for Integrated Solid Waste
Services.
FINANCIAL IMPACT:
The financial impact is detailed in the June 3, 2025, Item 6.1 Staff Report (Attachment 3),
which was reviewed and deliberated by the City Council on the same date.
DESCRIPTION:
Background
On June 3, 2025, the City Council held a noticed public hearing to consider two resolutions: (1)
Resolution Approving and Establishing the Collection of Minimum Residential Garbage and
Recycling Fees for Year 2025-2026, and (2) Resolution Amending the Schedule for Service
Rates for Integrated Solid Waste Services. The June 3, 2025, Staff Report, without its
accompanying attachments, is attached here as Attachment 3.
On June 3, 2025, Item 6.1 was agendized, a public hearing opened and closed, and no public
comment was received. After deliberation, the City Council motioned and unanimously
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approved the first of two resolutions presented under Item 6.1, the Resolution Approving and
Establishing the Collection of Minimum Residential Garbage and Recycling Fees for Year
2025-2026. The City Council now needs to take action to ratify the Resolution Amending the
Schedule of Service Rates for Integrated Solid Waste Services to amend the schedule of
service rates for integrated solid waste. The resolution and accompanying exhibit ar e attached
here as Attachments 1 and 2.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
For the June 3, 2025, Public Hearing, a notice was placed in the East Bay Times on May 24
and May 31, 2025, notifying the community of the City Council’s consideration of the proposed
rates and a copy of that Staff Report and attachments were provided to Amador Valley
Industries.
ATTACHMENTS:
1) Resolution Amending the Schedule of Service Rates for Integrated Solid Waste Services
2) Exhibit A to the Resolution – Proposed Adjustment to Garbage Company Rates
3) June 3, 2025, Item 6.1 Staff Report (without attachments)
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Attachment 1
Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 2
RESOLUTION NO. XX – 25
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING THE SCHEDULE OF SERVICE RATES FOR INTEGRATED SOLID WASTE
SERVICES
WHEREAS, the City of Dublin executed a Collection Service Agreement with Amador
Valley Industries (AVI) on January 12, 2005; and subsequently executed six amendments to the
agreement; and
WHEREAS, the Agreement requires the City Council to adopt a rate schedule, which is
estimated to produce a specified revenue amount as identified in the Agreement; and
WHEREAS, the City Council adopted the initial rate schedule with Resolution 68 -05 at a
noticed public hearing on May 3, 2005 and the Agreement provides that the City Council is
responsible for establishing all rates; and
WHEREAS, on September 10, 2020, the City of Dublin executed an Amended and
Restated Collection Service Agreement with AVI extend ing the Collection Service Agreement for
another 15-year term; and
WHEREAS, in 2024, AVI notified the City of its intent to sell the company, which was then
purchased by Livermore Sanitation, Inc. and authorized the execution of a new Amended and
Restated Agreement; and
WHEREAS, Livermore Sanitation, Inc. will continue to operate under the name AVI; and
WHEREAS, the Agreement provides for an adjustment to the rates each July 1 st in
accordance with specified formulas; and
WHEREAS, the City has calculated the required rate adjustment necessary to generate the
agreed to compensation and applied not more than a 4.06% adjustment to the residential,
commercial, roll-off, and other collection service rates and construction and demolition debris
rates; and
WHEREAS, on June 3, 2025, the City Council conducted a noticed public hearing prior to
the adoption of the new rate schedule.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby adopt the Rate Schedule attached hereto, marked Exhibit A and by reference made a
part hereof.
BE IT FURTHER RESOLVED that, while AVI may not charge a rate for these services in
excess of the established rates, nothing shall prohibit AVI from charging a rate less than the
established amount.
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Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 2 of 2
BE IT FURTHER RESOLVED that, upon the effective date, July 1, 2025, this resolution
shall supersede all previous resolutions adopting rates for solid waste services, and the rates
adopted by this resolution shall continue from year to year.
PASSED, APPROVED AND ADOPTED this 17th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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Attachment 2
Exhibit A to the Resolution
Affected Parcels
(Rate includes $0.45 retained by City for preparing tax roll / collection.)
Residents may select a larger garbage container for an additional fee which is shown below:
64 Gallon $37.38 per month (Total = 82.04$ per month)
96 Gallon $74.77 per month (Total = 119.43$ per month)
Second Container:
Additional Large Item Collection:
Container: Container: Container:
Commercial Bin Service Rates
Commercial Can Service: Offered at locations unable to accommodate a commercial bin or with volumes deemed insufficient to utilize a commercial bin. Monthly
rate includes bin rental and once per week collection and disposal.
Rates shown on the following page are monthly rates based upon bin size and frequency of service. Rates include collection, disposal, and bin
rental.
COMMERCIAL AND MULTI-FAMILY BIN SERVICES (FRONT-END-LOADER)
2025/2026 PROPOSED ADJUSTMENT TO GARBAGE COMPANY RATES
Chapter 5.32 of the Dublin Municipal Code requires for the protection of the health safety and welfare of the community that all parcels obtain minimum weekly
garbage service. Amador Valley Industries, Inc. is the authorized garbage collection and disposal firm operating within the City. The agreement between the City of
Dublin and Amador Valley Industries, Inc. provides that the City shall adopt a rate schedule which is estimated to allow the Company to achieve a fixed amount of
annual revenue. Therefore, the adoption of these fees will affect all parcel owners. Rates are effective July 1, 2025.
Basis of Fees
The City has negotiated a multi-year agreement with Amador Valley Industries, Inc. The Company may request a change in rates based upon a formula which
includes: changes in the Refuse Rate Index; Increased Regulatory Fees; and changes in the total tons delivered to the Landfill. In addition the Company may under
specifc criteria request an extraordinary adjustment. The additional costs of each of these components has been allocated to the three classes of service:
Residential; Commercial Bin Service; and Drop Box/Compactor.
RESIDENTIAL RATES
Company Minimum Residential Collection Rate: Applies separately to each single family unit as well as each unit within a duplex or other attached housing,
Weekly Curbside Residential Recycling; and Weekly Curbside Green Waste Recycling; Large Item Collection Service; and access to an Annual HHW drop-off
event. All containers are provided by the Company.
Minimum Cost Plus
Minimum Cost Plus
Residents may request a second garbage container which will be charged at the same rate as a first container based on the size
requested.
Residents may request additional large item collection services for a fee of :per Cubic Yard
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Size # Times Size # Times
# Yards Per Wk # Yards Per Wk
1 1 4 1
1 2 4 2
1 3 4 3
1 4 4 4
1 5 4 5
1 6 4 6
2 1 6 1
2 2 6 2
2 3 6 3
2 4 6 4
2 5 6 5
2 6 6 6
3 1 7 1
3 2 7 2
3 3 7 3
3 4 7 4
3 5 7 5
3 6 7 6
OTHER COMMERCIAL SERVICES:
Container Push:19.74$
Lock & Key:11.85$
Excess Waste (Cu. Yd):64.70$ per Cubic Yard
Excess Cart Exchange:19.74$
Excess Bin Exchange:78.87$
Excess Bin Cleaning:98.51$
$283.54
Per Week Per Pick-up
Excess Per Yard If Filled Above Water Level $64.70 Per Cubic Yard
is charged at 50% of the non-compacted or compacted rate as appropriate.
MISCELLANEOUS DROP BOX CHARGES
Relocation of Drop Box $167.60 Per Request
Weekly Drop Box Container Rental - After 1st Week $65.52 Per Week
Cancel Auto Pick-up Without Notice $211.13 Per Event
Handy Hauler Extra Week Rental $65.52 Per Week
Standby Time $275.18 Per Hour
DROP BOX / COMPACTOR RATES: Cost shown is on a per pick-up basis and is based upon the load not exceeding water level (Excess is charged the same
rate). Additional Miscellaneous charges may also apply.
Non-Compacted:
$4,170.56 $9,371.84
Organic material is charged at 50% of the Commercial Service rate.
Recycled Material is charged at 25% of the Commercial Service rate.
SMALL COMPACTOR SERVICE: Rates for small compactors serviced as a commercial account on a regular route shall be billed by container size at the rate of
two times the stated rate above for loose garbage.
HANDY HAULER:- One-time placement and collection of a 4
cubic yard bin, including one week container rental filled no higher
than water level:
Cost For Additional Dump:
$2,058.32 $4,658.96
$2,762.40 $6,229.92
$3,466.48 $7,800.88
$650.16 $1,517.04
$1,354.24 $3,088.00
$1,895.52 $5,363.04
$2,382.88 $6,717.28
$2,870.24 $8,071.52
$433.44 $1,300.32
$920.80 $2,654.56
$1,408.16 $4,008.80
$1,299.28 $4,550.08
$1,569.92 $5,470.88
$487.36 $1,787.68
$758.00 $2,708.48
$1,028.64 $3,629.28
Base Monthly Rate Base Monthly Rate
$216.72 $866.88
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C&D Debris Box Service: Costs shown are on a per pick-up basis
Material Type Cubic Yards Rate Material Type Cubic Yards Rate
Concrete & Asphalt Front End Loader
Per Yard Clean $137.12 Per Yard $53.81
Clean 6 $822.72 Mixed 4 (1/2 Full) $107.62
Mixed 6 $984.66 Mixed 4 $215.24
Mixed 6 (1/2 Full) $161.43
Cardboard Mixed 6 $322.86
Per Yard Clean $27.43 Mixed 7 (1/2 Full) $188.34
Clean 20 $548.60
Clean 30 $822.90 Metal
Clean 40 $1,097.20 Metal 20 $639.77
Metal 30 $731.19
Dirt Metal 40 $914.01
Clean 6 $822.25
Mixed 6 $984.66 Stucco
Per Yard Clean $137.12
Drywall Clean 6 $822.72
Per Yard Clean $65.62 Mixed 6 $984.66
Clean 20 $1,312.40
Mixed C&D
Wood Per Yard $56.68
Per Yard Clean $27.43 Mixed 15 $850.20
Clean 20 $548.60 Mixed 20 $1,133.60
Clean 30 $822.90 Mixed 30 $1,700.40
Clean 40 $1,097.20 Mixed 40 $2,267.20
CONSTRUCTION & DEMOLITION (C&D) DEBRIS BOX SERVICES
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STAFF REPORT
CITY COUNCIL
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Agenda Item 6.1
DATE: June 3, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT: Adoption of Rates for Garbage Collection, Disposal, and Recycling
Services Provided by Amador Valley Industries and Establishing the 202 5-
26 Annual Assessment
Prepared by: Jay Baksa, Finance Director
EXECUTIVE SUMMARY:
The City Council will consider adopting resolutions establishing the garbage rates effective
July 1, 2025 and establishing the Fiscal Year 2025-26 refuse-related property tax assessment.
STAFF RECOMMENDATION:
Conduct a public hearing, deliberate, and adopt the following: 1) Resolution Approving and
Establishing the Collection of Minimum Residential Garbage and Recycling Service Fees for
Fiscal Year 2025-2026; and 2) Resolution Amending the Schedule of Service Rates for
Integrated Solid Waste Services.
FINANCIAL IMPACT:
For Fiscal Year 2025-26, the annual rate adjustment will result in a 4.06% increase across all
service rates. For example, the monthly fee for residential garbage and recycling service,
collected as an annual assessment on the Property Tax bill, will increase by $1.74 for the
standard 32-gallon garbage container to a new monthly total of $44.66. Rate increases for all
service categories, including residential, commercial, multi-family, construction, and demolition
debris, are detailed in Attachment 3.
Attachment 3
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DESCRIPTION:
In January 2005, the City executed an agreement with Amador Valley Industries, LLC (AVI) for
services that began on July 1, 2005, and continued through June 30, 2020. On June 16, 2020,
the City Council approved an Amended and Restated Agreement with AVI, extending the
contract term to 2035. The agreement introduced a new rate model that outlines annual rate
adjustments, separates component costs, and includes regular financial reviews. The financial
reviews, conducted every three years by a third-party administrator, verify the reasonableness
of costs and revenues, and ensure that AVI maintains an industry-standard operating margin.
In 2024, AVI notified the City of its intent to sell the company, which was then purchased by
Livermore Sanitation, Inc. (LSI). On August 20, 2024, the City Council approved the
assignment of the agreement to LSI and authorized the execution of a new Amended and
Restated Agreement. Livermore Sanitation, Inc. will continue to operate under the name AVI.
Annual Rate Adjustment Calculation
The current agreement provides that rates must be reasonably forecasted to provide AVI with
an appropriate level of compensation. The forecasting methodology compares customer
counts between the two most recent calendar years to calculate revenue generation based on
the level of services provided multiplied by the appropriate rates. Rates are adjusted across all
service sectors to meet the calculated revenue requirement set forth by the rate model.
As required in the agreement, the City has provided AVI with information showing the rate
calculations and assumptions. Section 5.13.1 states “…the final decision of the rate structure
rests solely with the City.” The proposed rate structure for Fiscal Year 2025 -26 is estimated to
meet the compensation requirement of $30,110,784. This compensation is possible as a result
of a proposed 4.06% increase to all categories. Attachment 4 includes a detailed description of
the methodology required by the agreement.
Detailed Comparison of Current and Proposed Rates
Attachment 5 compares the proposed rates to the current rates for all service levels. The
current rates were effective July 1, 2024 and the proposed rates would be effective July 1,
2025.
Competitiveness of Dublin Rates with Neighboring Agencies
Historically, Staff has included a comparison of the Dublin rates compared to rates charged for
similar services in surrounding communities. This comparison has focused solely on the
garbage rates, as historically, recycling and organic waste were seen as smaller,
complimentary services. This is no longer true with the implementation of SB 1383 (mandatory
organic waste disposal reduction laws), as well as other regional and statewide laws. Looking
specifically at garbage rates no longer offers a clear “apples to apples” comparison.
Recycling. For example, Livermore now charges recycling at 80% of the garbage rate,
Castro Valley is at 67%, and San Ramon at 50%, where Dublin charges 25%.
Organic Waste. The same pattern is now occurring with organic waste, in which Dublin
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charges 50% of the garbage rate and Castro Valley charges 124%, but as regulations change
and options for disposal become more limited , these services have become more expensive,
and cities are adjusting for that reality.
Overall, Dublin remains competitive, and the services offered are comparable to the cities
surveyed, especially when factoring in the different types of services provided (garbage,
recycling, organics, etc.). The current three-agency comparison is included as Attachment 6;
and as in last year’s comparison, Staff has included Castro Valley Sanitation District as part of
the average calculation in place of Pleasanton, to include three service areas that offer similar
services. Pleasanton’s cost structure has become an outlier in the Tri-Valley and when
incorporating their costs into an “area average,” it skews the perspective of Dublin’s of
competitiveness (in reality Dublin’s rates are comparable to those of Livermore and San
Ramon). Pleasanton’s costs have been included for reference only but are not included in the
three-agency average calculations.
Minimum Residential Garbage Service
Dublin Municipal Code Section 5.32 requires that all properties in Dublin subscribe to a weekly
minimum garbage service. This minimum service includes weekly curbside collection of a 32-
gallon garbage container; up to two organic waste carts (96 gallons each); up to two recycling
carts (96 gallons each); recycling collection of used oil and filters; an annual household
hazardous waste drop-off event; and three on-call bulky waste pick-ups per year. Residents
desiring larger garbage containers are billed directly by AVI for the incremental rate difference.
The City pays AVI for the service cost of the minimum residential service of a 32-gallon
garbage container with monies collected from the property tax bill.
The City Council will need to establish the annual minimum residential service, which is
collected with the property tax bill for residential properties, separately from the rates for other
levels of service. The proposed annual fee for basic residential service for Fiscal Year 2025-26
is $535.92, which is collected in two installments on the property tax bill. This equates to a total
annual increase of $20.88 ($1.74 per month) above the rate levied in Fiscal Year 2024-25, as
shown in Table 1.
Table 1. Historical Annual Fee for Minimum Garbage Service Collected with Property
Tax Bill
2023-24
2024-25
Proposed
2025-26
Annual
Change
Monthly
Change
$510.36 $515.04 $535.92 $20.88 $1.74
This base rate includes $0.45 per month to cover the cost associated with the collection being
included on the property tax bill. These funds are not paid to AVI but are retained by the City to
offset the administrative cost in preparing the tax roll. Additionally, the cost of collection and
delinquencies for the basic service is expected to be covered by the prior year fund balance,
penalties and prior year taxes collected by the County Tax Collector, and interest on funds
held prior to payment to AVI.
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Resolutions
Included in this Staff Report (Attachments 1-3) are the annual resolutions that, with City
Council adoption, will establish the collection of minimum residential garbage and recycling
service fees for Fiscal Year 2025-26, and amend the schedule of service rates for integrated
solid waste services.
STRATEGIC PLAN INITIATIVE:
None
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A notice was placed in the East Bay Times on May 24, 2025 and May 31, 2025, notifying the
community of the City Council’s consideration of the proposed rates, and the City Council
Agenda was posted. A copy of the Staff Report and all attachments were provided to Amador
Valley Industries.
ATTACHMENTS:
1) Resolution Approving and Establishing the Collection of Minimum Residential Garbage and
Recycling Service Fees for Fiscal Year 2025-2026
2) Resolution Amending the Schedule of Service Rates for Integrated Solid Waste Services
3) Exhibit A to the Resolution – Proposed Adjustment to Garbage Company Rates
4) Methodology used for Fiscal Year 2025-2026 Annual Garbage Rate Adjustment in
Accordance with Agreement Between City of Dublin and Amador Valley Industries
5) Proposed vs. Current Rates
6) Local Area Rate Comparison
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