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HomeMy WebLinkAbout6.2 Garbage, Disposal & Recycle Rates or 19 82 STAFF REPORT CITY CLERK CITY COUNCIL File #810-30 DATE: May 19, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Public Hearing: Adoption of Rates for Garbage Collection isposal and Recycling Services Provided By Amador Valley Industries and Establishing the 2015-2016 Annual Assessment Prepared by Roger Bradley, Assistant to the City Manager 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, 2015 and establishing the Fiscal Year 2015-2016 refuse related property tax assessment. FINANCIAL IMPACT: The current cost of the minimum required residential can (32 gallon) would increase by $0.96 per month to a monthly rate of $22.06. As discussed in this report, this is collected on the Property Tax bill as an annual assessment of $264.72. When compared to the Tri-Valley cities of Livermore, Pleasanton, and San Ramon, the $22.06 monthly fee is 30% below the Tri-Valley average monthly rate of $31.31. The proposed Dublin commercial rate increases vary based on the service level selected. The proposed rate of $428.12 represents the average service level for a four-yard bin collected once per week and is 11% below the Tri-Valley average rate of $479.53. RECOMMENDATION: Staff recommends that the City Council conduct the public hearing, deliberate and adopt the Resolution Amending the Schedule for Service Rates for Integrated Solid Waste Services; and adopt the Resolution Amending and Establishing the Collection of Minimum Residential Garbage and Recycling Service Fees for Fiscal Year 2015-2016. Page 1 of 4 ITEM NO. 6.2 Reviewed By Assistant City Manager DESCRIPTION: In December 2004, the City executed a Collection Service Agreement with Amador Valley Industries (AVI) for service that began July 1, 2005. The agreement term 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 two (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 (3) 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, 2014. 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 two 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 2015-2016 is estimated to meet the compensation requirement of $11,539,859. This compensation is possible as a result of a proposed 4.57% average increase to the residential, commercial, drop box, and other service categories. The 4.57% increase in the rates results in a projected compensation amount of $11,540,076 for solid waste collection services within the City of Dublin, which must equal or exceed the aforementioned revenue requirement (due to rounding and other factors, required and projected revenue generally do not equally each other exactly). A detailed description of the methodology required by the Agreement is included as Attachment 1. Page 2 of 4 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, 2015. 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 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 at no additional cost for Dublin residents. Therefore, the City of Dublin customers have more services include within the base cost of 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 2015-2016 is $264.72, which is collected in two installments on the property tax bill. The proposed annual cost equates to $22.06 per month or a $0.96 per month increase over the rate levied in Fiscal Year 2014-2015. This base rate includes $0.35 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, but are retained by the City to offset the administrative cost in preparing the tax roll. 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 2013/14 2014/15 Proposed 2015/16 $243.72 $253.20 $264.72 Staff recommends that the City Council adopt the Resolution establishing the Fiscal Year 2015- 2016 solid-waste-collection rates (Attachment 4) and adopt the Resolution establishing the annual assessment for the required minimum level of garbage service (Attachment 5). StopWaste Benchmark Information Fee Effective for Fiscal Year 2015-2016, the Alameda County Waste Management Authority (StopWaste) has adopted and is asserting that all jurisdictions within the County must collect a Benchmark Information Fee, which is designed to fund StopWaste's development of comparative programmatic solid waste data for County residents. The funding will be used to produce an Annual Recycling Report for residents within the Dublin community. The amount assessed by StopWaste is $1.74 per residential account for Fiscal Year 2015-2016, which is a decrease of $0.11 over the prior year. The City is required to pass this amount through to ratepayers within the City of Dublin. Thus, the total assessed amount for Fiscal Year 2015-2016 will be $266.46, or a monthly amount of$22.21 Page 3 of 4 NOTICING REQUIREMENTS/PUBLIC OUTREACH: A notice was placed in the Tri-Valley Times on May 9, 2015 and May 16, 2015, notifying the community of the City Council's consideration of the proposed rates. ATTACHMENTS: 1. Methodology Used For Fiscal Year 2015-2016 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 2015-2016 Page 4 of 4 METHODOLOGY USED FOR FISCAL YEAR 2015-2016 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES Report Submitted To: City Council May 19, 2015 Prepared By: Roger Bradley, Assistant to the City Manager How Adjustment Factors Are Applied to Elements That Comprise Total Compensation The Agreement with AVI, as structured with the Company, initially provided 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 Incentive Element 3. Disposal Compensation Element 4. Container Compensation Element 5. Fee Compensation Element 1. Methodology for Adiusting Rates to Reflect Changes 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 , 2015, 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 Weighted Adjustment) 12/31/2014 LABOR Labor- Teamsters Union Local 70 Contract 3.34% VEHICLE REPLACEMENT Transportation Equipment-Truck & Bus Bodies 1.08% Sold Separately w u141301 VEHICLE MAINTENANCE Machinery & Equipment-Parts, Attachments 2.13% and Accessories w u11440378 ALL OTHER Consumer Price Index - All Urban Consumers: San Francisco-Oakland-San Jose, CA 2.95% cuura422sa0 1 ATTACHMENT 1 METHODOLOGY USED FOR FISCAL YEAR 2015-2016 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES Report Submitted To: City Council May 19, 2015 Prepared By: Roger Bradley, Assistant to the City Manager The Company provides the City with their expenditures in each of these areas over Calendar Year 2014. 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 FY 2015-2016 calculation. STEP 2: RRI WEIGHTING FACTOR BASED ON RELATIONSHIP TO TOTAL COSTS Operating Cost Category AVI $ % Total Expenses reported (Weigh in Factor) LABOR $3,112,162 43.15% VEHICLE REPLACEMENT $449,471 6.23% VEHICLE MAINTENANCE $1 ,484,914 20.59% ALL OTHER $2,166,677 30.04% TOTAL $71213,224 100% 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 FY 2015-2016 results: STEP 3: RRI CALCULATION (CANNOT EXCEED 10%) [Index Change multiplied By Weighting Factor] Operating Cost Category % Index % Total RRI Change @ Expenses 12/31/2014 (Weighting Index Change Factor) x Weighting Factor LABOR 3.34% 43.15% 1 .44% VEHICLE REPLACEMENT 1 .08% 6.23% 0.07% VEHICLE MAINTENANCE 2.13% 20.59% 0.44% ALL OTHER 2.95% 30.04% 0.89% TOTAL 2.84% 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 2014. This is compared to the "Ending Calculated Revenue". The Ending Calculated Revenue is equal to the current rates multiplied by the December 2014 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 2 ATTACHMENT 1 METHODOLOGY USED FOR FISCAL YEAR 2015-2016 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES Report Submitted To: City Council May 19, 2015 Prepared By: Roger Bradley, Assistant to the City Manager 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 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. 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 FY 2015-2016 adjustment, the Agreement provides for the calculation to be done based on the actual collection census data as of January 2014 and as of December 2014. The rates used for this comparison are the rates in effect on July 1 , 2014. The FY 2014-2015 calculation showed that the "Beginning Calculated Revenue", or the revenue collected by AVI for all services provided for that month, based on the January 2014 census was $1,226,123 and the "Ending Calculated Revenue" based on the December 2014 census was $1,290,408. This results in a FY 2015-2016 Annual Growth Factor of 5.24%. [$1 ,290,408 - $1 ,226,123 = $64,285; $64,285/$1 ,226,123 = 0.0524] Application of RRI and AG to Collection Compensation Element The FY 2014-2015 Collection Compensation Element was $6,698,321 . In accordance with the Agreement, this amount is first adjusted by the Annual AG Factor [6,698,321* (1+.0524) _ $7,049,511] and then that total is escalated by the RRI factor. [$7,049,511 * (1 + .0284) _ $7,249,717]. This amount then flows into the projected total compensation shown in Section 6 of this report. 2. Methodolo_gV for Adlustinq Commercial RecVclincl 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 2013, the total recycling tons collected was 2,183.44. In 2014, AVI collected 2,183.44. This results in an increase of 11 .92% (2443.65 — 2,183.44 = 160.49; 260.21 / 2,183.44 = 0.1192). Thus, the Commercial Recycling Growth Factor is 11 .92%, 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 (0.1192 + 0.0284 = 0.1476; $348,107 * 0.1476 = $51,372; $348,107 + $51 ,372 = $399,479). This amount then flows into the projected total compensation shown in Section 6 of this report. 3 ATTACHMENT 1 METHODOLOGY USED FOR FISCAL YEAR 2015-2016 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES Report Submitted To: City Council May 19, 2015 Prepared By: Roger Bradley, Assistant to the City Manager Commercial Recycling Compensation Continued AVI Commercial Rec clip Com ensation for FY 2014-2015 Commercial RRI Recycling Comp ensation Element Year Recycling Factor AVI Comp Effective Tons Growth 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 2011 1 ,875 0.00% 2.91% $289,531 7/1/2012 2012 2023 7.97% 1 .80% $317,515 7/1/2013 2013 2183 7.93% 1 .70% $348,103 7/1/2014 2014 2444 11 .92% 1 2.84% $399,479 7/1/2015 3. Methodology for Adiusting Rates to Reflect Changes 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 FY 2015-2016, the cost per ton for landfill fees will increase by $1 .15 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 $0.05 per ton. The increase as provided in the disposal agreement with Waste Management is $1 .10 per ton. Therefore, the total disposal cost for FY 2015-2016 will be $36.18 per ton. Of this amount, $19.38 (54% of the per ton fee) is related to regulatory fees and $16.80 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 between 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 .54%. [2015 Rate = $36.18/ton and 2014 Rate = $35.03/ton 4 36.18 — 35.03 = 1 .15; 1.15 / 35.03 = 0.0328]. 4 ATTACHMENT 1 METHODOLOGY USED FOR FISCAL YEAR 2015-2016 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES Report Submitted To: City Council May 19, 2015 Prepared By: Roger Bradley, Assistant to the City Manager Annual Tonnage (AT) Factor The tonnage increase for the FY 2015-2016 adjustment is based on disposal reports for the period January 1 , 2014 — December 31 , 2014 and is the summation of the monthly tonnages over this period. This amount is then compared against the previous year's disposal tonnage. The total disposal in 2014 was 26,994 tons, and in 2013, it was 24,253 tons. This results in an AT Factor of 11 .30%. [26,994 — 24,253 = 2,741 ; 2,741 / 24,253 = 0.1130]. Application of ATF and AT Factors to Disposal Compensation Element The Landfill Compensation Element was $849,655 in 2014. In accordance with the Agreement, this amount is first adjusted by the Annual AT Factor [($849,655 * 0.1130 = 96,025) + $849,655 = $945,680] and then that total is escalated by the ATF factor. [($945,680 * 0.0328 = $31 ,018) + $945,680 = $976,698]. This amount then flows into the projected total compensation shown in Section 6 of this report. 4. MethodologV 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 factor. As noted above, this factor was calculated at 5.24% for the FY 2015-2016 adjustment. For the FY 2014-2015 adjustment, the amount designated for the Container Element was $208,690. Adjusting this amount by the AG Factor, there will be an $10,935 increase in the calculated amount resulting in $208,690 to be recovered from the rates in FY 2013-2014. [$208,690 * (1 + .0524) = 219,625]. 5. Methodology 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 FY 2015-2016, the Fee Compensation Element Calculation is as follows: (7,249,514 + 399,479 + 976,684 + 219,625) _ $8,845,302 (base compensation) $8,845,302 / (1- 23.35%) _ $8,104,769 / (76.65%) $8,845,302 / 76.65% _ $11 ,539,859 For FY 2015-2016, the calculated fees payable to the City are: $11 ,539,859 — $8,845,302 = $2,694,557 The adjusted total compensation for the Fee Element is shown in Section 6 below. 5 ATTACHMENT 1 METHODOLOGY USED FOR FISCAL YEAR 2015-2016 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES Report Submitted To: City Council May 19, 2015 Prepared By: Roger Bradley, Assistant to the City Manager 6. City Process of Developing Rates Projected 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. The adjustment methodology is shown in the table below. As the table shows, the Fiscal Year 2015-2016 rate adjustment process results in the need to establish rates at a level expected to generate $11 ,539,859 in revenue. This amount is $966,117 more than the compensation generated as part of the rate adjustment for Fiscal Year 2014-2015, i.e., the previous year. Prior to establishing the compensation that will be generated from the rates, an adjustment is made for grant revenues or other agreed upon amounts reducing operating costs. The amount of revenue required from the rates is partially offset by one item: a $48,875 agreed upon amount to reduce the cost of collection services for the Dublin Unified School District; therefore, $48,875 is credited against required revenue in FY 2015-2016. An additional cost of $299 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 FY 2014-2015 rate model. 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 $11 ,539,859. The calculation for Fiscal Year 2015-2016 is performed using the customer subscription figures as of December 2014. Staff has determined that no more than a 4.7% rate increase to residential, 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 and agreed upon cost reductions are added to the new rates that the total projected compensation is $11 ,540,076. Historical Comparison of Compensation Elements FY 2013-2014 — FY 2015-2016 Compensation 2013/2014 2014/2015 Absolute Percent 2015/2016 Absolute Percent Element Comp Comp Change Change Proposed Change Change Comp Collection $6,307,559 $6,698,321 $390,762 6.20% $7,249,717 $551,396 8.23% Commercial Recycling $317,515 $348,103 $30,588 9.63% $399,479 $51,372 14.76% Disposal $839,287 $849,655 $10,368 1.24% $976,698 $127,043 14.95% Container $199,856 $208,690 $8,834 4.42% $219,625 $10,935 5.24% Fee $7,664,217 $8,104,769 $134,206 5.57% $2,694,557 $225,588 9.14% TOTAL $9,998,978 $10,573,736 $574,758 5.75% $11,540,076 $966,340 9.14% 6 ATTACHMENT 1 (Selected Service Levels Representing Most Common Subscriptions) COMPARISON OF SELECTED RATES Current (2014/15) vs Proposed (2015/16) Proposed Increase over Current Proposed 2014/2015 Residential -Monthly Rates Rate 2015/2016 $ % Minimum Residential (32) Gallon $21.10 $22.06 $0.96 4.55% 64 Gallon Residential $38.75 $40.52 $1.77 4.57% 65 Gallon Residential $56.40 $58.98 $2.58 4.57% Sample rate categories represent 100%of residential customers Commercial -Monthly Rates 32 Gallon Cart $23.93 $25.02 $1.09 4.55% 64 Gallon Cart $43.93 $45.94 $2.01 4.58% 96 Gallon Cart $63.90 $66.82 $2.92 4.57% 1 Yard - 1 time/ $102.35 wk $107.03 $4.68 4.57% 2 Yard - 1 time/ $204.70 wk $214.06 $9.36 4.57% 3 Yard - 1 time/ $307.05 wk $321.09 $14.04 4.57% 3 Yard - 2 times/wk $639.57 $668.81 $29.24 4.57% 4 Yard - 1 Time/wk $409.40 $428.12 $18.72 4.57% 4 Yards - 2 times/wk $844.27 $882.87 $38.60 4.57% Sample rate categories represent 76% of commercial customers Drop Box- Rates Per Service 20 Yard Loose $576.00 $602.40 $26.40 4.58% 30 Yard Loose $864.00 $903.60 $39.60 4.58% 40 Yard Loose $1,152.00 $1,204.80 $52.80 4.58% Represents 85% of 2010 non-compacted Drop Box Subscriptions 30 Yard Compacted $1,728.00 $1,807.20 $79.20 4.58% Represents 41% of the 2011 compacted Drop Box Subscriptions Handy Hauler Available To Residents $133.92 $140.04 $6.12 4.57% Attachment 2 r► w x L) a m Fs &` 9 9 � � � � G 0- _ .7 OC 43 ,• U�7f w N 40 U M 6H W M 69 uy 49 M W 44 5F} tE CL °7 ° LS ti w LL N L T C lLf] r- ao g o� r` u° ° E c ro r: $ d r: � $ o c xip E L d m Vs E4 �^. 4) 44 44 44 .a t4 4n 69 69 6'7 C- u) 00 am m w N �6 c5 N ep v m O N a mp 4 = � rrE4 fR K!fA K!+�! 4 V►w k9 W O N C p .Y C Or C q G �] 8 �S a r CS [ VJ C + i6 O W 18 G: +CAD It � [D d eC p 1`a 4 S I'd S E cm v r. Sr�Z 7n o � c E 'M G7 � ° W E G W fe o ._ q' �6 ro �j 4s+t!4�i 44 w u► Fn w ag w m rc77 T 10 ��++77 G� 1�ffj arts CL C4 _ [o rri eri ,` ep q rpG CL 64 69 � SE N v� cd m p g G 0 rn f r� 3 _ m ` N fE ry 'G 4 L Ir OI C RF N l`O T��j' oN W (D U) 4 U O N Ul �uyy r6 0rnn7f N t LLI N o 7 N N E c4 12 t cc E �? ' N cr, U eau ri [fin a 8° C�] G7 4�i ci 4°a 'J'u�j w RESOLUTION NO. XX - 15 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 4.7% adjustment to the residential, commercial, roll-off, construction and demolition debris, and other collection service rates; and WHEREAS, on May 19, 2015, 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. BE IT FURTHER RESOLVED that, upon the effective date, July 1, 2015, 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 19th day of May, 2015, by the following vote: ATTACHMENT 4 1 AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 2 2015/2016 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 1,2015. 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. 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, 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: $ 22.06 (Rate includes$0.35 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 $18.46 per month (Total= $ 40.52 per month) 96 Gallon Garbage Container: Minimum Cost Plus $36.92 per month (Total= $ 58.98 per month) Residents may request a second garbage container which will be charged at the same rate as a first container based on the size Second Container: requested. Additional Large Item Collection: Residents may request additional large item collection services for a fee of: $ 14.50 per Cubic Yard COMMERCIAL AND MULTI-FAMILY BIN SERVICES(FRONT-END-LOADERI 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: $25.02 64 Gallon Container: $45.94 96 Gallon Container: $66.82 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 Size #Times Size #Times #Yards Per Wk Base Monthly Rate #Yards Per Wk Base Monthly Rate 1 1 $107.03 4 1 $428.12 1 2 $240.69 4 2 $882.87 1 3 $374.35 4 3 $1,337.62 1 4 $508.01 4 4 $1,792.37 1 5 $641.67 4 5 $2,247.12 1 6 $775.33 4 6 $2,701.87 2 1 $214.06 6 1 $642.18 2 2 $454.75 6 2 $1,310.99 2 3 $695.44 6 3 $1,979.80 2 4 $936.13 6 4 $2,648.61 2 5 $1,176.82 6 5 $3,317.42 2 6 $1,417.51 6 6 $3,986.23 3 1 $321.09 7 1 $749.21 3 2 $668.81 7 2 $1,525.05 3 3 $1,016.53 7 3 $2,300.89 3 4 $1,364.25 7 4 $3,076.73 3 5 $1,711.97 7 5 $3,852.57 3 6 $2,059.69 7 6 $4,628.41 Organic material is charged at 50%of the Commercial Service rate less the benchmark fee. OTHER COMMERCIAL SERVICES:Rates for additional requested services. Container Push: $ 9.74 Lock&Key: $ 5.85 Excess Waste(Cu.Yd): $ 31.96 per Cubic Yard Excess Cart Exchange: $ 9.74 Excess Bin Exchange: $ 38.95 Excess Bin Cleaning: $ 48.66 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: $140.04 Additional Bin Rental Per Week: $32.36 Per Week Cost For Additional Dump: $101.53 Per Pick-up Excess Per Yard If Filled Above Water Level $31.96 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: $30.12 Compacted: $60.24 Organic material is charged at 50%of the non-compacted or compacted rate as appropriate. MISCELLANEOUS DROP BOX CHARGES Relocation of Drop Box $82.77 Per Request Weekly Drop Box Container Rental-After 1st Week $32.36 Per Week Cancel Auto Pick-up Without Notice $104.28 Per Event Handy Hauler Extra Week Rental $32.36 Per Week Standby Time $135.90 Per Hour Rate Resolution Exhibit A CONSTRUCTION&DEMOLITION(C&D)DEBRIS BOX SERVICES C&D Debris Box Service:Costs shown are on a per pick-up basis Material Type Cubic Yar I Material Type Cubic Yards Rate Concrete&Asphalt Front End Loader Per Yard Clean $69.26 Per Yard $27.19 Clean 6 $415.56 Mixed 4(1/2 Full) $54.38 Mixed 6 $497.42 Mixed 4 $108.76 Mixed 6(1/2 Full) $81.57 Cardboard Mixed 6 $163.14 Per Yard Clean $13.85 Mixed 7(1/2 Full) $95.17 Clean 20 $277.00 Clean 30 $415.50 Metal Clean 40 $554.00 Metal 20 $323.20 Metal 30 $369.38 Dirt Metal 40 $461.72 Clean 6 $415.38 Mixed 6 $497.42 Stucco Per Yard Clean $69.26 Drywall Clean 6 $415.56 Per Yard Clean $33.16 Mixed 6 $497.42 Clean 20 $663.20 Mixed C&D Wood Per Yard $28.63 Per Yard Clean $13.85 Mixed 15 $429.45 Clean 20 $277.00 Mixed 20 $572.60 Clean 30 $415.50 Mixed 30 $858.90 Clean 40 $554.00 Mixed 40 $1,145.20 Rate Resolution Exhibit A RESOLUTION NO. XX - 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * APPROVING AND ESTABLISHING THE COLLECTION OF MINIMUM RESIDENTIAL GARBAGE AND RECYCLING SERVICE FEES FOR FISCAL YEAR 2015-2016 WHEREAS, the City of Dublin is mandated by the State of California, under AB 939 and SB 1016, to reduce the amount of solid waste going into the landfill; and WHEREAS, through the Mandatory Garbage Subscription 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 Subscription 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 Fiscal Year 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 May 19, 2015; and WHEREAS, on June 20, 2012, the Alameda County Waste Management Authority (ACWMA) adopted Resolution #WMA 2012-06 creating a Benchmark Information Service Fee (FEE), which is designed to generate revenue to be used to provide residents with generalized programmatic solid waste data to determine how well their recycling efforts compare vis-a-vis their neighbors; and WHEREAS, the City of Dublin contends that the ACWMA does not have the legal authority to require that the City and its hauler collect the FEE on behalf of the ACWMA; and ATTACHMENT 5 1 WHEREAS, the ACWMA believes that it does have the legal authority to require that the City and its hauler collect the FEE; and WHEREAS, in order to avoid litigation, the City agreed, in exchange for certain commitments from ACWMA, to collect the FEE from Fiscal Year 2013-2014 through Fiscal Year 2015-2016; and WHEREAS, following a noticed public hearing held May 19, 2015, the City desires to include the FEE within the assessment for minimal residential service rates for Fiscal Year 2015-2016; and 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. PASSED, APPROVED AND ADOPTED this 19th day of May, 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 2 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 $253.20 per year will increase $11 .52 for a total of $264.72 for Fiscal Year 2015-2016. The annual assessment equates to a monthly increase of $0.96, from $21.10 to $22.06. The Agreement with the AVI provides for annual adjustments to the rates based upon annual changes in five separate indices, three 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: growth in services; labor; vehicle replacement; vehicle maintenance; and all other costs. In order to determine the fee, the City estimates the total revenue required to pay AVI for the Minimum Service to all residential units that are eligible to use the service, according to the terms of the agreement. 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. Additionally, the fee includes an amount assessed on all ratepayers within the City of Dublin by the Alameda County Waste Management Authority for its Benchmark Information Services Annual Report in the amount of $1.74 for Fiscal Year 2015-2016. The City is required to pass this amount through to ratepayers within the City of Dublin, unless they have opted out of the fee as reported to the City by the Alameda County Waste Management Authority. Thus, the total assessed amount for Fiscal Year 2015- 2016 will be $266.46, or a monthly amount of $22.21 , unless the individual parcel has opted out of the Benchmark Information Services Fee, in which case the annual assessment will be $264.72. 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 receive Minimum Service, will not be billed by the Garbage Company. Amador Valley industries will bill customers each quarter for Exhibit A 3 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. 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 $ 266.46 Each Condominium /Townhouse Unit $ 266.46 Each Duplex (2 Units) $ 532.92 Each Duplex (5 or More Units) $266.46 times the number of units 4