HomeMy WebLinkAbout6.1 Garbage, Disposal, Recycling RatesSTAFF REPORT
DUBLIN CITY COUNCIL
DATE: June 7, 2011
TO: Honorable Mayor and City Councilmembers
FROM: Joni L. Pattillo, City Manager
File #
CITY CLERK
� Q 3
SUBJECublic Hearing: Adoption of Rates for Garbage Collection, Disposal, and
Recycling Services Provided By Amador Valley Industries and Establishing
the 2011-2012 Annual Assessment
Prepared By: Roger Bradley, Senior Administrative Analyst
EXECUTIVE SUMMARY:
The Agreement for solid waste services between the City and Amador Valley Industries (AVI)
requires the City to adopt a rate schedule, which is estimated to produce a specified revenue
amount as identified in the Agreement. The City has also adopted an Ordinance which requires
all parcels in the City to subscribe to weekly minimum garbage service. For residential
properties that are serviced with individual containers, the City collects the annual cost of
minimum service with the property tax bill. The City Council will consider adopting two separate
resolutions establishing the garbage rates effective July 1, 2011 and establishing the Fiscal
Year 2011-2012 refuse related property tax assessment.
FINANCIAL IMPACT:
The current cost of the minimum required residential can (32 gallon) would increase by $0.66
per month to $18.65 per month. As discussed in this report, this is collected on the Property Tax
bill as an annual assessment of $223.80. When compared to the Tri-Valley cities of Livermore,
Pleasanton, and San Ramon, the $18.65 monthly fee is 27% below the Tri-Valley average
monthly rate of $25.64. The proposed Dublin commercial rate increases vary based on the
service level selected. The proposed rate of $361.84 represents the average service level for a
four -yard bin collected once per week and is 16% below the Tri-Valley average rate of $430.11.
RECOMMENDATION:
Staff recommends that the City Council: 1) Open the Public Hearing; 2) Receive the Staff
Report and public testimony; 3) Close the public hearing; 4) Deliberate; 5) Adopt the Resolution
Amending the Schedule for Service Rates for Integrated Solid Waste Services; and 6) Adopt
the Resolution Amending and Establishing the Collection of Minimum Residential Garbage and
Recycling Service Fees for Fiscal Year 2011-2012.(R6ARL /7/
G'1
Submitted y Reviewed By L-----Revieiwffi,ei By
Sr. Administrative Analyst Administrative Services Director Assistant City Manager tezi
Page 1 of 3
ITEM NO. 6.1 ��
DESCRIPTION:
In December 2004, the City executed a Collection Service Agreement with Amador Valley
Industries (AVI) for service that began July 1, 2005. In June 2010, the City Council approved an
extension of the agreement term, which will continue through June 30, 2020. The Agreement
between the City and AVI requires the City to adopt a rate schedule, which is estimated to
produce a specified revenue amount as identified in the Agreement. The Agreement provides
for an annual adjustment to the total revenue based on economic indices applied to the base
cost that was part of AVI's original proposal. The adjustment formula also factors in growth in
the number of customers and disposal tonnage.
The City has also adopted an Ordinance which requires all parcels in the City to subscribe to
weekly minimum garbage service. For residential properties that are serviced with individual
containers, the City collects the annual cost of minimum service with the property tax bill. This
minimum service includes: weekly curbside collection of a 32 gallon garbage container; up to
finro (2) organic waste carts, including food scraps (96 gallons each); up to two (2) 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 carts are billed directly by AVI for the incremental rate difference. The
City pays AVI for the service cost of minimum residential service with monies collected from the
property tax bill.
GARBAGE RATE CALCULATION
Garbage Rate Background
The current garbage rates became effective July 1, 2010. The Agreement with AVI provides a
process for addressing the compensation generated from all rate classes on an annual basis.
The Agreement establishes a total annual revenue requirement for AVI with the City retaining
responsibility for establishing the rates for all categories. The Agreement contains a provision
that rates must be reasonably forecasted to provide AVI with an appropriate level of
compensation based on a formula detailed within the Agreement. The forecasting methodology
compares customer counts between the finro most recent calendar years to calculate revenue
generation based on the level of services provided multiplied by the appropriate rates. Rates
are adjusted as appropriate across all service sectors to meet the calculated revenue
requirement as 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 2011-2012 is estimated to
meet the compensation requirement of $9,310,839. This compensation is possible as a result of
a proposed 3.65% increase to the residential rate category, a 12.78% increase to commercial,
drop box, and other services, and a proposed 8.52% increase in the Commercial Recycling
Compensation Element. A detailed description of the methodology required by the Agreement is
included as Attachment 1.
Detailed Comparison of Current and Proposed Rates
Attachment 2 compares the proposed rates to the current rates for service levels that represent
a majority of the subscribers in the City. The proposed rates would be effective July 1, 2011.
Page 2 of 3
Competitiveness of Dublin Rates with Neighboring Agencies
As shown in Attachment 3, the proposed City of Dublin rates remain very competitive compared
to rates charged for similar services in surrounding communities. In all cases, Dublin's services
are at least comparable, and they are often better than the survey cities. For example,
Pleasanton does not offer any bulky waste pick-ups, and Livermore and San Ramon charge
extra for many items, such as electronic waste and appliances, which AVI will pick up free of
charge for Dublin residents. Therefore, the City of Dublin customers receive more services. For
most rate categories, the proposed City of Dublin rates are similar and in all cases below the
average of the Tri-Valley agencies surveyed.
Annual Fee for Minimum Residential Garbage Service
The City Council will need to establish the annual fee, which is collected with the property tax
for residential properties, separately from the rates for other levels of service. The Proposed fee
for basic residential service for Fiscal Year 2011-2012 is $223.80, which is collected in finro
installments on the property tax bill. The proposed annual cost equates to $18.65 per month.
This is a$0.66 per month increase (3.65%) over the rate levied in Fiscal Year 2010-2011. This
base rate includes $0.25 per month, which is collected for the purpose of funding the cost
associated with collection of the property tax bill. These funds are not paid to AVI. In addition,
the cost of collection and delinquencies for the basic service are expected to be covered from
the following sources: prior year fund balance; penalties and prior year taxes collected by the
County Tax Collector; and interest on funds held prior to payment to the Company.
Historical Annual Fee for Minimum Garbage Service Collected with Property Tax Bill
2009/10 2010/11 Proposed
2011/12
$171.00 $215.88 $223.80
Staff recommends that the City Council adopt the Resolution establishing the Fiscal Year 2011-
2012 solid-waste-collection rates (Attachment 4) and adopt the Resolution establishing the
annual assessment for the required minimum level of garbage service (Attachment 5).
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A notice was placed in the Valley Times on May 28, 2011 and June 4, 2011, notifying the
community of the City Council's consideration of the proposed rates.
ATTACHMENTS: 1. Methodology Used For Fiscal Year 2011-2012 Rate Adjustment
2. Proposed vs. Current Rates
3. Tri-Valley Rate Comparison
4. Resolution Amending the Schedule of Service Rates for
Integrated Solid Waste Services
5. Resolution Approving and Establishing the Collection of
Minimum Residential Garbage and Recycling Service Fees For
Fiscal Year 2011-2012
Page 3 of 3
/ llv
METHODOLOGY USED FOR FISCAL YEAR 2011-2012 GARBAGE RATE ADJUSTMENT~
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 7, 2011
Prepared By: Roger Bradley, Senior Administrative Analyst
How Adiustment Factors Are Applied to Elements That Comprise Total Compensation
The Agreement with AVI, as structured with the Company, initially provides a lump sum figure
to provide all services in the Agreement. The initial rates were established to generate the
annual revenue based on the initial level of customers. As new customers are added, .the
Company also receives revenue for those services. In accordance with section 5.14 of the
Agreement, the Company retains any compensation in excess of what is calculated. If actual
compensation is less than calculated, the Company is not entitled to any additional revenues.
Annually, there is a process established where a revised total compensation figure is
developed. This calculation takes into consideration changes in the number of accounts
serviced as well as adjustments to four elements. The Agreement divides compensation
provided to AVI into the following five Elements:
1. Collection Compensation Element
2. Commercial Recycling Element
3. Disposal Compensation Element
4. Container Compensation Element
5. Fee Compensation Element
1. Methodoloqv for Adiustinq Rates to Reflect Chanqes In Collection Costs
The Agreement with AVI contains a very detailed methodology for incorporating economic
changes into the annual rate adjustments. Specifically, two calculations are made as part of a
larger formula. The first is the Refuse Rate Index Adjustment (RRI) and the second an
Annual Growth (AG) factor. On July 1, 2011, the agreement provides for an annual
adjustment to Collection Compensation. The Agreement also details the time period to be
used in making the annual adjustments.
Steps Required to Calculate the RRI Factor
The weighted RRI factor cannot exceed 10%, and it is calculated based on the weighted
percentage change in specific indices multiplied by the costs associated with key company
expenses. The following tables provide a summary description of how these factors are
interrelated:
STEP 1: INDICES USED IN RRI CALCULATION
Operating Cost Category Index Used % Index Change @
To Produce A Wei hted Ad'ustment 1213112010
LABOR Labor - Teamsters Union Local 70 Contract 6.63°/a
VEHICLE REPLACEIVIENT Transportation Equipment-Truck & Bus Bodies
_0.23%
Sold Se aratel w u141301
VEHICLE MAINTENANCE Machinery & Equipment-Parts, Attachments 2 97%
and Accessories w u11440378
ALL OTHER Consumer Price Index - All Urban Consumers:
San Francisco-Oakland-San Jose, CA 1.58%
cuura422sa0
~ ~! ~~,~~ ~
1 ATTACHMENT 1
~ ~~
METHODOLOGY USED FOR FISCAL YEAR 2011-2012 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 7, 2011
Prepared By: Roger Bradley, Senior Administrative Analyst
The Company provides the City with their expenditures in each of these areas over Calendar
Year 2010. These costs are AVI expenses and exclude disposal costs or fees paid to the
City. The total costs for the year are used to determine the weighting to be applied for each of
the indices. The following table shows the actual weighting used in the 2011/12 calculation.
STEP 2: RRI WEIGHTING FACTOR BASED ON RELATIONSHIP TO TOTAL COSTS
Operating Cost Category AVI $ % Total Expenses
re orted Wei htin Factor
LABOR $ 2,428,969 43.24%
VEFiICLE REPLACEMENT 382,382 ~ 6.81 %
VEHICLE MAINTENANCE 930,786 16.57%
ALL OTHER 1,875,219 33.38%
TOTAL 5,617,356 100%
As mentioned earlier, these factors are applied on a weighted basis. The index factor for
each cost category is multiplied by the weighting factor. The result will produce the RRI,
which per the agreement cannot exceed 10%. The following table shows the 2011/12 results:
STEP 3: RRI CALCULATION (CANNOT EXCEED 10%)
[Index Change multiplied By Weighting Factor]
Operating Cost Category % Index % Total RRI
Change @ Expenses
12/31/2010 (Weighting Index Change
Factor) X
Wei htin Factor
LABOR 6.63% 43.24% 2.87%
VEHICLE REPLACEMENT -0.23% 6.81 % -0.02%
VEHICLE MAINTENANCE 2.97% 16.57% 0.49%
ALL OTHER 1.58% 33.38% 0.53%
TOTAL 3.87%
Steps Required to Calculate the Annual Growth (AG) Factor
The Annual Growth factor uses a formula that compares revenue at two points in time. The
"Beginning Calculated Revenue" equals the current rates multiplied by the census of January
2010. This is compared to the "Ending Calculated Revenue". The Ending Calculated
Revenue is equal to the current rates multiplied by the December 2010 number of accounts
served. The adjustment reflects increases in the number of billed units served. The
methodology is relatively straight forward. The Agreement with AVI included an exhibit which
lists various service events. For example, it included the number of single family basic service
units, number of commercial bins by size, and frequency of service, etc. These are then
2 ATTACHMENT 1
1~
METHODOLOGY USED FOR FISCAL YEAR 2011-2012 GARBAGE RATE ADJUSTMEN
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 7, 2011
Prepared By: Roger Bradley, Senior Administrative Analyst
multiplied by the appropriate monthly rate. Residential service is a bundled rate for recycling
and garbage and, therefore, recycling is not included in the calculation. Moreover, each
single family unit is calculated at the Basic Rate regardless of whether they may have
multiple recycling or green waste bins. Conversely, this is the first year that the commercial
recycling census has been included within the growth factor calculation. For the purpose of
calculating growth, commercial recycling bins are considered to have the same rate as
commercial garbage bins with the increase in bins from year to year factored within this
formula.
For the 2011/2012 adjustment, the Agreement provides for the calculation to be done based
on the actual Coflection census data as of January 2010 and as of December 2010. The
rates used for this comparison are the rates in effect on July 1, 2010.
The 2011/2012 calculation showed that the "Beginning Calculated Revenue", or the revenue
collected by AVI all services provided for that month, based on the January 2010 census was
$960,705 and the "Ending Calculated Revenue" based on the December 2010 census was
$936,212. This results in a 2011/2011 Annual Growth Factor of -2.55%. [$936,212 -
$960,705 =-$24,493; -24,493/960,705 =-.0255] Because the agreement does not allow for
negative growth, the AG Factor will be set to 0.00%.
Application of RRI and AG to Collection Compensation Element
The 2010/2011 Collection Compensation Element was $5,655,122. In accordance with the
Agreement, this amount is first adjusted by the Annual AG Factor [5,655,122 (1+.000) _
$5,655,122] and then that total is escalated by the RRl factor. [$5,655,122 * 1.0387 =
$5,873,975]. This amount then flows into the projected total compensation shown in Section
6 of this report.
2. Methodoloqv for Adiustinq Commercial Recvclinq Compensation
The City has agreed to provide a compensation amount to AVI for the City's Commercial
Recycling Program. This amount is escalated each year by the RRI factor, which is
calculated as described above, and the growth in commercial recycling tonnage.
The commercial recycling growth is calculated based on the total tonnage at the end of each
calendar year over the total tonnage for the previous. For Calendar Year 2009, the total
recycling tons collected was 1,989.88. In 2010, AVI collected 2,082.35. This results in a
increase of 5.14% (2,082.35 - 1,989,88 = 92.47; 92.47 / 1,989.88 =.0465). Thus, the
Commercial Recycling Growth Factor is 4.65%, which is added to the RRI factor with the
combination of the factors used to inflate the previous year's Commercial Recycling Program
compensation amount (0.0465 + 0.0387 = 0.0852; $259,263 * 0.0852 = $22,081; $259,263 +
$22,081 =$281,344). This amount then flows into the projected total compensation shown in
Section 6 of this report.
3 ATTACHMENT 1
METHODOL Y ~ '~
OG USED FOR FISCAL YEAR 2011-2012 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 7, 2011
Prepared By: Roger Bradley, Senior Administrative Analyst
Commercial Recvclinq Compensation Continued
AVI Commercial Recyclin Compensation for FY 2011-2012
Commercial RRI Rec clin Com ensation Element
Year Recycling F
t AVI C Effective
Tons Growth ac
or omp Date
2005 1418 Base Year $150,000
2006 1454 2.55% 3.60% $159,225
2007 1832 25.94% 2.89% $205,130 7/1/2008
2008 2097 14.53% 5.00% $245,189 7/1 /2009
2009 1990 0.00% 5.74% $259,263 7/1/2010
2010 2082 4.65% 3.87% $281,344 7/1 /2011
3. Methodoloav for Adiustina Rates to Reflect Chanaes In Landfill / Disposal Costs
Landfill disposal costs are established under a separate agreement between the City of
Dublin and Waste Management, Inc. AVI is required to use the disposal facility designated by
the City. AVI makes the payments for disposal costs and pays the price negotiated by the
City under the separate agreement with Waste Management. Since these are expenses
incurred by AVI, these costs must also be considered in setting the rates. The landfill
component has the following two factors that impact the rates: 1) Tip Fee Factor, and 2)
Annual Tonnage Factor.
Approved Tip Fee(ATF) Factor
In 2011/2012, the cost per ton for landfill fees will increase by $0.62 per ton. The increase
comes from two separate categories: increases in governmental regulatory fees and
increases as provided in the Disposal Agreement with Waste Management. The ,increase in
regulatory fees is $0.20 per ton. The increase as provided in the disposal agreement with
Waste Management is $0.42 per ton. Therefore, the total disposal cost for 2011/2012 will be
$33.51 per ton. Of this amount, $19.14 (58% of the per ton fee) is related to regulatory fees
and $14.37 reflects the portion paid to Waste Management for landfill services.
The portion paid to Waste Management can increase only as provided in a Disposal
Agreement befinreen the City and Waste Management. The regulatory fees are levied by
other agencies such as StopWaste.Org; County Local Enforcement Authority; California
Department of Resources Recycling and Recovery; Household Hazardous Waste Fees;
County Business License; etc. This results in an ATF Factor of 1.89%. [2010 Rate =$32.89
/ton and 2011 Rate =$33.51 /ton. $33.51 - 32.89 = 0.62; 0.62 / 32.89 = 0.0189].
Annual Tonnage (AT) Factor
The tonnage increase for the 2011/12 adjustment is based on disposal reports for the period
January 1, 2010 - December 31, 2010 and is the summation of the monthly tonnages over
this period. This amount is then compared against the previous year's disposal tonnage. The
4 ATTACHMENT 1
METHODOLOGY USED FOR FISCAL YEAR 2011-2012 GARBAGE RATE ADJUSTMEN~ /`~
~
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 7, 2011
Prepared By: Roger Bradley, Senior Administrative Analyst
total disposal in 2010 was 23,987 tons, and in 2009, it was 24,384 tons. This results in an AT
Factor of -1.63%. [23,987 - 24,384 = -397; -397 / 24,384 = - 0.0163). ~
Application of ATF and AT Factors to Disposal Compensation Element
The Landfill Compensation Element was $802,007 in 2010. In accordance with the
Agreement, this amount is first adjusted by the Annual AT Factor [(802,007 *-0.0163) +
802,007 =$788,934] and then that total is escalated by the ATF factor. [$788,934 * 1.0189 =
$803,845]. This amount then flows into the projected total compensation shown in Section 6
of this report.
4. Methodoloqv Addressinq Container Compensation Element
This element represents the amortized cost of carts and bins over the life of the agreement.
The allowed amount is modified by the AG facto"r. As noted above, this factor was calculated
at 0.00% for the 2011/12 adjustment. For the 2010/11 adjustment, the amount designated for
the Container Element was $194,981. Adjusting this amount by the AG Factor, there will be
no increase in the calculated amount to be recovered from the rates in 2011/12.
5. Methodoloav Addressinq Fee Compensation Element
As part of the Agreement with the City of Dublin, AVI is required to remit franchise taxes and
certain fees to the City of Dublin based on a percentage of its revenue. Therefore, as the
company rates go up the Fee Element must also be adjusted in order to recognize the fees to
be paid on the new revenue.
The Fee Compensation Element shall equal:
1. (Collection + Commercial Recycling Element + Disposal + Container Elements) _
"base compensation"
2. "base compensation" is divided by (one (1) minus the "Current Fee Percentage")
[Where the "Current Fee Percentage" = 23.35%]
3. subtract "base compensation" from the obtained value
For 2011/12, the Fee Compensation Element Calculation is as follows:
(5,873,975 + 281,344 + 803,845 + 194,981) _ $7,154,145 (base compensation)
$7,154,145 / (1- 23.35%) _ $7,154,145 / (76.65%)
$7,154,145 / 76.65°!0 = $9,333,523
$9,333,523 - $7,154,145 = $2,179,378
The adjusted total compensation for the Fee Element is shown in Section 6 below.
6. Citv Process of Developinq Rates Proiected to Meet Total Compensation
As discussed above, certain adjustment factors are applied to each area. The starting point is
the base compensation from the previous agreement year as required under the Agreement.
5 ATTACHMENT 1
_ ~ /
METHODOLOGY USED FOR FISCAL YEAR 2011 2012 GARBAGE RATE ADJUSTMENT ~~
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 7, 2011
Prepared By: Roger Bradley, Senior Administrative Analyst
The adjustment methodology is shown in the table below. As the table shows, the Fiscal Year
2011-2012 rate adjustment process results in the need to.establish rates at a level expected
to generate $9,333,523 in revenue. This amount is $316,728 more than the compensation
generated as part of the rate adjustment for Fiscal Year 2010-2011 or the previous year.
Prior to establishing the compensation that will be generated from the rates, an adjustment is
made for grant revenues that reduce the Company's operating eost. The amount of revenue
required from rates is partially offset by one grant. A$350,000 grant was obtained at the
beginning of the agreement to reduce the cost of implementing a natural gas truck fleet. The
total grant is amortized over the initial 7-year period of the Agreement and, therefore, $50,000
is credited against required revenue in 2011/12. This will be the last year this credit will be
added to the rate structure.
The final step in developing the rates is to test the total annual expected revenue to the
Company, when the rates are increased by different amounts. It is necessary for the
adjustment to be at a level so that the total annual projected compensation to the Company
will equal $9,333,523. The calculation for Fiscal Year 2011-2012 is performed using the
customer subscription figures as of December 2010.
Staff has determined that a 3.65% rate increase to residential rates and a 12.78% increase to
commercial, drop box, and other service categories will generate the required revenue. It is
not possible to exactly match the targeted annual revenue given the various subscription
levels and fees. The test calculation shows that when the grant funds of $50,000 are added
to the new rates that the total projected compensation is $9,333,686. An additional cost of
$27,316 was included in the rate compensation model to offset costs in the timing of landfill
fee increases, which have been paid by AVI and were not included in the 2010/11 rate model.
Historical Comparison of Compensation Elements 2009/2010 - 2011/2012
Compensation
Element 2009/2010
Compensation 2010/2011
Compensation Absolute
Change Percent
Change 2011/2012
Proposed
Com Absolute
Change Percent
Change
Collection $ 5,348,139 $5,655,122 $306,983 5.74% $5,873,975 $218,853 3.87%
Commercial
Rec clin ~ 245,189 $259,263 $14,074 5.74% $281,344 $22,081 8.52%
Dis osal $ 765,098 $802,007 $36,909 4.82% $803,845 $1,838 0.23%
Container $ 194,981 $194,981 $0 0.00% $194,981 $0 0.00%
Fee $ 1,211,293 $2,105,422 $894,129 73.82% $2,179,378 $73,956 3.51 %
TOTAL $7,764,700 9,016,795 $1,252,095 16.13% $9,333,523 $316,728 3.51%
6 ATTACHMENT 1
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~
(Selected Service Levels Representing Most Common Subscriptions)
COMPARISON OF SELECTED RATES
Current (2010/11) vs Proposed (2011 /12)
Proposed Increase over
Current Proposed 2010/2011
Residential - Monthiv Rates Rate 2011/2012 $ %
Minimum Residential (32) Gallon $17.99 $18.65 $0.66 3.67%
64 Gallon Residential $33.04 $34.25 $1.21 3.66%
Sample rate categories represent 96% of residential customers
Commercial - Monthlv Rates
1 Yard - 1 time / wk $80.21 $90.46 $10.25 12.78%
2 Yard - 1 time / wk $160.42 $180.92 $20.50 12.78%
3 Yard - 1 time / wk $240.63 $271.38 $30.75 12.78%
3 Yard - 2 times / wk $501.22 $565.27 $64.05 12.78%
4 Yard - 1 Time / wk $320.84 $361.84 $41.00 12.78%
4 Yards - 2 times / wk $661.64 $746.19 $84.55 12.78%
Sample rate categories represent 77% of commercial customers
Drop Box - Rates Per Service
20 Yard Loose $451.40 $509.00 $57.60 12.76%
30 Yard Loose $677.10 $763.50 $86.40 12.76%
40 Yard Loose $902.80 $1,018.00 $115.20 12.76%
Represents 74 % of non-compacted Drop Box Subscriptions
30 Yard Compacted $1,353.30 $1,526.40 $173.10 12.79%
Represents 32% of the compacted Drop Box Subscriptions
Handy Hauler $104.95 $118.36 $13.41 12.78%
Attachment 2
ATTACHMENT 3 - RATE COMPARISON
2011 Garbage Rate Comparison Survey (Prepared May 19, 2011)
Comparison With Proposed Rates
Proposed
Dublin % Proposed C urrent
Residential Livermore Pleasanton San Ramon Average Basic Rate From Avg Rate
1 Can Residential (32-35 Gallon) $ 22.96 $ 29.13 $ 24.84 $ 25.64 $ 18.65 -27.27% $ 17.99
1 Can Residential (64-70 Gallon) $ 48.34 n/a $ 43.24 $ 45.79 $ 34.25 -25.20% $ 33.04
1 Can Residential (90-96 Gallon) $ 80.21 $ 34.57 $ 69.20 $ 61.33 $ 49.85 -18.71% $ 48.09
% Dublin Customers Covered By Sample Rate Categories: 100%
Residential Notes:
Dublin: Basic rate includes 32-gallon garbage can (weekly pick-up);Weekly 64-gallon organics can; Weekly 64-gallon curbside recycling can;
lager size andlor additional organic and recycling carts available upon request; compost give-back and 3 on-call bulky waste clean-ups per
year including items such as electronic waste, household batteries, tires, white and brown goods.
Livermore: Basic rate includes 35-galion garbage can (weekly pick-up); Weekly 96-gallon organics can;
Weekly 64-gallon curbside recycling can; and 3 on-call clean-ups per year .
San Ramon: Basic rate includes 35-gallon garbage can (weekly pick-up); Weekly 96-gallon green waste can supplied by Company;
Weekly 64-gallon curbside recycling can, and 3 special ciean-ups per year.
% Increase
over Prior FY
3.67%
3.66%
3.66%
Pleasanton- effective October 2009: 35 Gallon Service includes 35 galion trash cart, 64 gallon greenlfood scrap cart and 96 gallon recycling cart.
96 Gallon service inlcudes a 96 gallon tresh cart, 64 gallon green/food scrap cart and a 96 gallon recycling cart. Both services have weekly pick up.
Residents still have the option to drop off recyclables at the transfer station to recieve credit on their PGS invoice proivdeded that the recyclabes weigh 75 Ibs or more.
no special curbside clean-ups .
3 City Proposed % Proposed Current % Increase
Commercial Livermore Pleasanton Sa n Ramon Average Dublin From Avg Rate over Prior FY
1 Yard - 1 time / wk $ 103.30 $138.59 $ 115.19 $ 119.03 $ 90.46 -24% $ 80.21 12.78%
2 Yard - 1 time / wk $ 206.58 $277.00 $ 213.93 $ 232.50 $ 180.92 -22% $ 160.42 12.78%
3 Yard - 1 time / wk $ 309.87 $395.79 $ 296.13 $ 333.93 $ 271.38 -19% $ 240.63 12.78%
3 Yard - 2 times / wk $ 645.53 $731.97 $ 592.30 $ 656.60 $ 565.27 -14% $ 501.22 12.78%
4 Yard - 1 Time / wk $ 413.17 $515.29 $ 361.86 $ 430.11 $ 361.84 -16% $ 320.84 12.78%
4 Yards - 2 times / wk $ 860.70 $963.53 $ 723.73 $ 849.32 $ 746.19 -12% $ 661.64 12.78%
% Dublin Customers Covered By Sample Rate Categories: 71%
. __ , . _.._, .. : _, _. . ._. w_ __, .
Dublin's rates include free commercial recycling
San Ramon's rate does not include the cost of commercial recycling as the amount varies depending on the hauler used
Livermore charges for recycling at 15% of the regular commerical rate.
Drop Box
20 Yard Loose $ 429.85 $517.20 $ 664.56 $ 537.20 $ 509.00 -5% $ 451.40 12.77%
30 Yard Loose $ 644.77 $775.80 $ 689.86 $ 703.48 $ 763.50 9% $ 677.10 12.77%
40 Yard Loose $ 859.70 $1,034.40 $ 715.14 $ 869.75 $ 1,018.00 17% $ 902.80 12.77%
30 Yard Compacted $ 1,934 32
. __ . _ __ .. . .. $1,551 60
.w_ . .
.. $
. ._ 847.91
.~ , ..._ $
~. 1 444 61
_. . . _ ...._._. $
_ _... 1,526 40
. _ .. ...~.. - - _ 6%
, _ $
.. 1,353~.30
. 12.80%
. __ ____ .
% Dublin Custome~s Coveted BySample Rate Categories: 84% ~ ~
Livermore rates do not include the cost of disposal/processing, which is assesed after collection.
Every effort has been made to assure the accuracy of the information and comparison of similar levels of service according to our understanding of other agency rates. (~O
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ATTACHMENT 3 ~
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RESOLUTION NO. XX - 11
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
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, the Agreement with AVI provides for an adjustment to the rates each
July 1St 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 3.7% adjustment to
the residential rates, and not more than a 12.8% adjustment to commercial, roll-off, and
other collection service rates; and
WHEREAS, on June 7, 2011, 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, upon the effective date, July 1, 2011, 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 7th day of June, 2011, by the
following vote:
AYES:
NOES:
ATTACHMENT 4
1
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ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
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2011l12 PROPOSED ADJUSTMENT TO GARBAGE COMPANY RATES
Affected Parcels
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, 2011.
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. 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.
Company Minimum Residenlial Collection Rate: Applies separately to each single family unit as well as each unit within a duplex or other attached
housing, which receives individual garbage collection services. The rate applies to the initial 32 gallons of garbage capacity, including once per week
collection and disposal; 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 Monthly Rate : $ 18.65 (Rate includes $0.25 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 Garbage Container: Minimum Cost Plus $15.60 per month (Total -$ 34.25 per month)
96 Gallon Garbage Container: Minimum Cost Plus $31.20 per month (Total -$ 49.85 per month)
Residents may request a second garbage container which will be charged at the same rate as a first.container based on the
Second Container: size requested.
Additional Large Item Collection: Residents may request additionat large item collection services for a fee of : $12.25 per Cubic Yard
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.
32 Gallon Container: $21.15 64 Gallon Container: $38.83 96 Gallon Container: $56.48
Commercial Bin Service Rates
Rates shown on the following page are monthly rates based upon bin size and frequency of service. Rates include collection,
disposal, and bin rental.
Rate Resolution Exhibit A
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a
Size iF Times Size # Times
# Yards Per Wk Base Monthly Rate # Yards Per Wk Base Monthly Rate
1 1 $90.46 4 1 $361.84
1 2 $203.43 4 2 $746.19
1 3 $316.40 4 3 $1,130.54
1 4 $429.37 4 4 $1,514.89
1 5 $542.34 4 5 $1,899.24
1 6 $655.31 4 6 $2,283.59
2 1 $180.92 6 1 $542.76
2 2 $384.35 6 2 $1,108.03
2 3 $587.78 6 3 $1,673.30
2 4 $791.21 6 4 $2,238.57
2 5 $994.64 6 5 $2,803.84
2 6 $1,198.07 6 6 $3,369.11
3 1 $271.38 7 1 $633.22
3 2 $565.27 7 2 $1,288.95
3 3 $859.16 7 3 $1,944.68
3 4 $1,153.05 7 4 $2,600.41
3 5 $1,446.94 7 5 $3,256.14
3 6 $1,740.83 7 6 $3,911.87
Organic material is charg ed at 75% of the Commercial Service rate.
OTHER COMMERCIAL SERVICES: Rates for additional requested services.
Container Push: $ 8.23
Lock & Key: $ 4.94
Excess Waste (Cu. Yd): $ 27.01 per Cubic Yard
Excess Cart Exchange: $ 8.23
Excess Bin Exchange: $ 32.92
Excess Bin Cleaning: $ 41.13
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:
Additional Bin Rental Per Week: $27.36 Per Week
Excess Per Yard if Filled Above Water Level
$118.36
Cost For Additional Dump: $85.81 Per Pick-up
$27.01 Per Cubic Yard
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.
Rate Per Cubic Yard: Non-Compacted: $25.45 Compacted: $50.88
Organic material is charged at 75% of the non-compacted or compacted rate as appropriate.
MISCELLANEOUS DROP BOX CHARGES
Relocation of Drop Box $69.95 Per Request
Weekly Drop Box Container Rental - After 1st Week $27.36 Per Week
Cancel Auto Pick-up W ithout Notice $88.13 Per Event
Handy Hauler Extra Week Rental $27.36 Per Week
Standby Time $114.86 Per Hour
Rate Resolution Exhibit A
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RESOLUTION NO. XX - 11
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
**********~
APPROVING AND ESTABLISHING THE COLLECTION OF MINIMUM
RESIDENTIAL GARBAGE AND RECYGLING SERVICE FEES FOR FISCAL
YEAR 2011-2012
WHEREAS, the City of Dublin is mandated by the State of California, under AB
939, to reduce the amount of solid waste going into the landfill; and
WHEREAS, through the Mandatory Garbage Ordinance and other means, the
City of Dublin is taking a proactive stance to meet the State Mandated Goals; and
WHEREAS, the goal of the Mandatory Garbage Ordinance is to protect the
health and welfare of the community, to provide recycling services to all residential
property owners, and to equally share the costs of these programs by mandating that
every residence contributes towards the cost of the service made available; and
WHEREAS, minimum service includes service described in the current
Agreement with the franchised waste hauler, Amador Valley Industries (AVI); and
WHEREAS, in accordance with California Constitution Article XIII C(Proposition
218) Section 6(2), the City provided written notice to all affected property owners on
March 18, 2005 prior to adopting the 2005/2006 rate structure which included a
provision for future increases based on changes in specified indices as outlined in the
agreement with AVI; and
WHEREAS, the City Council has considered this action as part of a noticed
public hearing on June 7, 2011. .
NOW, THEREFORE, BE IT RESOLVED that, the City Council of the City of
Dublin does hereby approve and establish the collection of minimum residential
services fees by the City on the property tax bill as shown in Exhibit A, which is attached
hereto and hereby incorporated by reference.
BE IT FURTHER RESOLVED that City Staff are hereby authorized to undertake .
all administrative tasks to implement the assessments, including, but not limited to an
agreement with Alameda County for collection, which may provide payment to Alameda
County of its reasonable costs of collection not to exceed 1.7% of the total amount
levied.
ATTACHMENT 5
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PASSED, APPROVED AND ADOPTED this 7th day of June, 2011, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
1 1
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City of Dublin
RESIDENTIAL MINIMUM GARBAGE / RECYCLING SERVICES
(Collected With Residential Property Tax Bills)
Basis of Fees
The City has negotiated a multi-year agreement with Amador Valley Industries (AVI)
requiring a rate adjustment to the residential minimum garbage/recycling services
collected with the property tax bills. The current annual fee of $215.88 per year will
increase $7.92 for a total of $223.80 for 2011-2012. The annual assessment equates to
a monthly increase of $0.66, from $17.99 to $18.65. The Agreement with the Company
provides for annual adjustments to the rates based upon annual changes in five
separate indices, four of which are maintained by the Bureau of Labor Statistics (Refuse
Rate Index), plus pass-through disposal costs. The five indices account for cost
changes in the following categories: labor; fuel and oil; vehicle replacement; vehicle
maintenance; and all other costs.
In order to determine the fee, the City estimates the total revenue required to pay the
Garbage Company for Minimum Service to all residential units that are eligible to use
the service, according to the terms of the agreement with AVI. The specific factors
considered in this calculation include the following components: the residential rate for
Minimum Service; estimated number of housing units affected by the fee; costs
associated with the collection of the fee as part of the Property Tax Bill; estimated
delinquencies; estimated revenues from late payments and interest earnings; and funds
available from collections in a prior year.
Affected Parcels
Chapter 5.32 of the Dublin Municipal Code requires the protection of the health, safety,
and welfare of the community by requiring that all parcels obtain minimum weekly
garbage service. Residential housing units are billed for the cost of Minimum Garbage
Service, which is included with the annual property tax bill. This fee only applies to
residential units which have individual garbage containers and are not serviced by
central bins. This does include duplexes and other attached housing types, which
receive individual service.
Households subject to this fee, which only receiv.e Minimum Service, will not be billed by
the Garbage Company. Amador Valley industries will bill customers each quarter for
additional services, if a household selects weekly garbage collection of a container
larger than the 32-gallon container included in the Minimum Service Level.
Services Provided By the Fee
Minimum service includes weekly curbside collection of: one 32 gallon garbage
container; up to two 96 gallon organic waste carts; up to two 96 gallon recycling carts;
used oil and filters; an annual household hazardous waste drop off event; and three on-
call bulky waste pick-ups per year. -
Exhibit A
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Amount of the Fee
The annual amount of the assessment includes the cost of collection as well as the cost
of services over the entire year. The City makes the payment to Amador Valley
Industries based upon the current rate allowed for Minimum Residential Service.
TYPE OF HOUSING UNIT ANNUAL FEE
Each Single Family Residence $ 223.80
Each Condominium / Townhouse Unit $ 223.80
Each Duplex (2 Units) $ 447.60
Each Duplex (5 or More Units) ~223.80 times the
number of units