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Home My WebLink About6.3 Garbage Collection, Disposal, Recycle Rates CITY CLERK File # D[l2][Q][DJ-[5]!D] AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 20,2006 SUBJECT: Public Hearmg: Adoption of Rates for Garbage Collection, Disposal, and Recycling Serviccs Provided By Amador Vallcy Industries and Establishing tbe 2006-2007 Annual Assessment Repon Prepared bv Paul S Rankin, Administrative Services Director ATTACHMENTS: I 2. 3 4 5 Methodology Used For 2006/2007 Rate Adjustment Proposed vs. Current Rates Rate Comparison Resoh~hon Adopting Rates Resolution Establishing Annual Property Related Fee Open tbe Public Hearing Receive the Staff Report and public testimony Close the puhlic bearing Deliberate Adopt Resolutions lf wntten protests are insufficH;mt FINANCIAL STATEMENT: Tt IS proposed that the solid waste rates m the City of Dublin be increased hy appnlXlmately 5 47"1" based on the adjustment formula ineluded in the City's solid waste collection services agreement WIth Amador Valley Tndustries (A VI). The rate adjustment fOffilUla takes into consideration vanous .;ost index increases. An annual fee IS collected on the Property lax bill for the cost of BasIC Residential Garbage Service. The proposed 200612007 Annual Assessment is $154 08 per household. DESCRIPTION: Tn January 2005, the City executed the collection service agreement with Amador Valley Tndustries (A VI) for service to begm July 1,2005 The agreement between the City and A VI 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 whIch was part of their origmal proposal. __m~~~~________________________________________~___~~.~____________________________.____________________M___~ COPY TO: Amador Valley Industries Page I uf3 ITEM NO. ". 3 r"\nl:lrbl:lge\2U06 RI:l[~ Adj\i\.GENDA \''lgend<t_stnmt_ (iarhagel{ates.dm: CI The City has also adopted an Ordinance, which requircs all parcels m the City to subscribe to weekly minimum garbage servIce. For residential propcrtics that are servIced wIth individual contamers, the City collects the annual cost ofmll1lmum service with the property tax bill. This minimum servIce mcludes: weekly curbside collection ofa 35 gallon garbage contall1er; up to two (2) organIc waste carts, Il1cluding (bod scraps (96 gallons each); up to two (2) recycling carts (96 gallons each); recycling collcction of used oil and filters; an annual housebold hazardous waste drop off event; and three on-call bulky waste pIck- ups per year Residents desiring larger garbage carts are billed directly by thc Company for the Incremental rate di ITercncc. The City pays the servIce cost for minimum residentIal servIce with monies collcctcd from thc property tax bilL GARBAGE RATE CALCULATION Garbal!e Rate Backl!round The current garbage rales hecame cf/cctivc July I, 2005 The agreement with A VI, provides a process for addressmg the compensation gcnerated from all rate classes on an annual basis. The agreement cstablishes a total arumal revenue requlfement for the Company The CIty retams the responsibility to establish the rates for all categurics, with the provision that those rates must bc rcasonably forecasted to result in thc Contractor to provide the compensatIOn to A VI as provided for in the Agreement. Thc forecasting uses census numbers based on service levcls multiplied by the new rates. As rcquircd in thc Agreement the City has pnlVlded A VI with information showll1g the rate calculations and assumptIons. Sechon 5 13 1 states" thc final decision of the rate structurc rcsts solely with the City." Tbe pmposed rate structure for 2006/2007 is estimated to meet the compensation reqUIrement of $6,610,082. This compensation IS possible as a result ofa pruposcd 5 47"10 increase to all rate categories. A dctailed description of the methodology requircd by thc Agreement is altached as Attaehmcnt I On March 18, 2005 public noticcs wcre mailed to property owners. The intcnt of the NotIces were to disclose thc changes in rates as a result oftbe new agreement with A VI. This property owner noticing was done in accordance wlth Propositiun 218, rcquiring noticing reqUIrements for propcrty related fees. As part of the Noticc, it was disclosed that there wo,dd be future adjustmcnts to the rates In accordance with the fonnulas in the Agreement. Detailed Comparison of Current and Proposed Rates Attachment 2 compares the proposed rates to thc currcnt rates for servIce levels, which rcpresent a maJonly of the subscribers in thc City The proposed rates would be effectivc July 1,2006 Competitiveness of Dublin Rates with Neil!hborinl! Al!encies As shown in Attachmcnt 3, the proposed City ofDubhn rates remain vcry competitive compared to ratcs charged for similar servIces III surnlundmg communitics. In most cases, the City of Dublin scrvice levels are at least comparahle, and o/lcn bcttcr than the survey cities. For example, Pleasanton does not offer any bulky wastc pick-ups and Livemlore and San Ram(1l1 charge extra for many of the Iterns such as electronic waste, and appliances that A VI will pick up frce of charge for Duhlm residcnts. Therefore, the City of Dub 1m customers receivc morc services. For most rate categories, thc proposed City of Dublin rates are SImIlar and m many cases below thc averagc of the Tri-Valley agencies surveyed. For the purpose (,fthls survey the rates for the LivemlOre include a recently adopted ratc increase that will be c1Tcctivc July I" For the City of San Ramon the rates rellect thcir new service agreement and arc effectIve October 1st 2- OL ..3 Annual Fee For Minimum Residential Garbae:e Service Thc City Council will need to establish the annual fee, which is cullectcd with the property tax for residentIal propertIes, separately from the rates for other levels of servIce. The proposcd fcc for Fiscal Year 200n-2007 IS $154 08, which cquatcs to $12.84 per month. ThIS IS a $0 67 pcr month increase over thc rate leVIed m 2005/2006 This base rate inc1udcs $015 per month whIch IS collected for thc purpose of fundmg the cost assocIated with collcction on the property tax bIll. Those funds arc not paid to A VI. Tn additIOn the cost of eollcction and delinquencIes for haslc service, are cxpected to be covered from the following sources: prior year fund halance; penalties and prior year taxes collected by the County Tax Collector; and mterest on funds held prior to paymcnt to the Company Thc proposed annual assessment for 200612007 reprcscnts a 547% increase over the Fiscal Year 20U5- 200b assessment. The following table shows the historical annual assessments: Historical Aunual Fee For Minimum Garbage Service Colleeted With Property Tax Bill 2000/01 $121.80 2001/02 $121.80 2002103 $121.80 2003/04 $121.80 2004/05 $121.80 2005106 146.04 Proposed 2006/07 15408 Recommendation Attached to the Agenda Statement is a Resolution (Attachment 4), whIch will establish thc Amador Valley Tnduslnes Rate Schedule in accordance with the FranchIse Agreement, under which the Company operates in the City of Dublin. Attachment 5 is a ResolutIOn establishmg the Annual Rate to be leVIed for BaSIC Service on the resIdentIal properly tax bilL Staff recommends that the City Council conduct a Pl.lbhe Heanng;. Following the Public Heanng, Slaff rccommends that the City Council deliberate and adopt thc Rcsolutions. .) . ' ~ L;IL",;ti~ 1Io,,~ ~'r...;>-" METHODOI"OGY USED FOR 2006/2007 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR V ALLEY INDUSTRIES lev /'7,,' Report Submitted To: City Council June 20, 2006 Prepared Dy' Paul S. Rankin, Administrative Services Director How Adiustment Factors Are Applied To Elements That Comprise Total Compeusation Tbe Agreement with A VT is structured with the Company lluhally providing a lump sum figure to provide all servIces III the Agreement. Thc initial ratcs were established to generate the annual rcvcnue bascd on the initial level of customers_ As new customers arc added the Company also recel yes revenuc for thosc services. In accordance wIth sechon 5 14 ofthc Agrcement the Company retall1S any compensation in cxccss 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 conslderabon changes in the number of accounts serviced as well as adj ustments to four c1cmcnts. The Agreement dIvides compensahon provided to A VI into the following four Elements. I 2. 3 4 ColIcction Compensation Element Disposal Compensation Element Container Compcnsation Element Fee Compensah(m Element l. MethodoIol!v for Adiustinl! Rates To Reflect Chanl!es In Collection Costs The Agreement with A VI contains a very detailed methodology as It relates to adjustmcnts to rates to reflect economIc changes. Two calculahons are made as part of a larger formula. The first is the Rcfuse Rate Adjustment (RR!) and the second an Annual Growth (AG) factor. Begll1nmg on Jllly I, 2006 thc agrccment provides for an annual adjustment to tbe Collection Compensation. The Agrccmcnt also dctails the time period to be used lllmakmg the adjustments. Steps Required to Calculate the RRI Factor The RRI factor cannot exceed 5'1.. and it is calculated based on the weighted percentage changc in specific indices mulbphed hy the costs associatcd with kcy company expenses. The following table provides a summary descriptIOn of ho\\; these factors are intcrrclated. STEP 1: INDICES USED IN RRI C ALCULA nON Operating Cost Category Index Used (To Produee A % Index Chauge Weighted Ad.iustmentl (iiJ, 12/31/2005 LABOR Waste ColIcction Avg Hourly 177% --.",' .'~._-,_.. - _.~ Earnings (ccu60562 10006) ..,', VEHICLE REPLACEMENT Motor V chicle Mfg- Vehicles On Purchased Chassis 545% (p,:,u3362!13362113) ......".....- VEHICLE MAINTENANCE Indllstnal Truck & Tractor Mfg.-Parts for Industrial Work 476% -- Tl1!cks (pcu3339243339243) ..~"'" ALL OTHER Industnal Truck & Tractor Mfg.-Parts for Industnal Work 4 76'10 Trucks (pcu33392433392431 Page I of'5 ",~'2.o~a(.c ~.':1 (Attaehment 1) METHODOLOGY llSED FOR 2006/2007 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBUN AND AMADOR VALLEY INDUSTRIES /~b\""Y Report Suhmittcd To. Cily Council JIUle 20, 2006 Prepared BY' Paul S. Rankin, Admini,trative Services Director The Company provides thc City with theIr expendItures m each ofthcse arcas. The data provIded for the 2006/2007 adjustment was based on the first SIX months July - December Thcsc costs are A VI expenses and exclude dIsposal costs or fccs paid to the City The SIX month costs are used to detcrmine the weightmg to be applied from cach ofthc indices. The followll1g table shows thc actual weIghting used in the 2006/07 calculahon. STEP 2: RRl WEIGHTING FACTOR BASED ON RELATIONSHIP TO TOTAL COSTS Operating Cost Category % Total Expenses ei htin Factor) 32.03"1,. 7.23'% 12.18% 48.56% LABOR VEHICLE REPLACEMENT VEHICLE MAINTENANCE ALL OTHER TOTAL As mentioned earlier these factors from the indiccs are applicd on a weighted baSIS. The index factor for each cost category is multiplied by the welghtll1g factor The result will produce the RRI, whIch per the agreement cannot cxceed 5%. The followmg table shows the 2006/07 rcsults: STEP 3; RRI CAI,CUI,ATION (CANNOT EXCEED 5%) [Index Change multiplied B} Weighting Factor] RRl 0.57% 0.39% 0.58% 2.31% 3.85% Steps Required to Calculate the Annual Growth (A G) Factor The Annual Growth factor uses a formula that comparcs projected revenue at two pomts in time. The "Beginning Calculated Revenue" equals the current ratcs multiplicd by the census of July I, 2005 This is comparcd to thc "Ending Calculated Revenue" The "Ending Calculatcd Revenue is equal to the current rates multiplicd by the December 2005 census. Tbe ad] l~stment rct1ccts increases in the number of hilled units servcd. The methodology is relatIvely straIght forward. Thc Agrccment with A VI mcluded an Exbiblt which lists various service events. For example, the number of singlc family basic servicc units; number of commercial bl11s by size and frequcncy of service; etc. These are then multiplied by the appropriate monthly rate. ResIdential service IS a bundled ratc for recycling and garbage. Eacb smgle family unit is calculated at the BasIC Rate regardless of whether thcy may have mulhple rccychng or green waste bins. Similarly the commercIal bll1 service is a bundlcd rate and only the billed garbage serVIce for which thcrc is a ratc cstablished is counted m thIs f()rmula. Pagc 2 of5 (Attachment t) METHODOLOGY USED FOR 2006/2007 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY 01<' DUBLIN AND AMADOR V ALLEY INDUSTRIES 3~ 1'.1/ Repurt Submitted To: City Council June 20, 2006 Prepared By. Paul S. Rankin, Administrative Services Director For the 2006/2007 adjustment the Agrccmcnt provides for the calculatIon to be done bascd on the census included in thc original AgreenlCnt and the actual Collection census data as of December 31, 2005 The rates used for this comparison are the rates in efTcct on July I, 2005 The 2006/2007 calculation showed that the "Begmmng Calculated Revenuc" for one month would be $499,161 and the "Ending Calculated Revcnuc" based on the December 2005 census would bc $530,815 This rcsults in a 20ll6/2007 Annual Growth Factor of 6.34"10. [$53ll,815 - 499,161 = $31,654,31,654/530,815 = 0634] Application of RRl and 4 G to Collection Compensation Element The base agreement CollectIOn Compcnsation Element was established at $4,176,900. In accordance with the Agreement this amount is first adjusted by the Annual AG Factor [4,176,900 '" I 0634 = $4,441,715] and then that total is escalated by the RRI factor. [$4,441,715 .. 1 0.385 ~ $4,612,722] This amount then flows into the total projectcd total compensation shown m section 5 ofthis report. 2. Methodolol!v for Adiustinl! Rates To Reflect Chanl!'es In Landfill I Disposal Costs Landfill disposal costs are established under a separate agreement between thc City of Dublin and Waste Management Inc. A VI is requircd to use the disposal facihty deSIgnated by thc City A VI makcs the payments for disposal costs and pays the pricc negotiated by the City under the separatc agreemcnt with Waste Management. Sll1Ce these are expenscs incurred by A VI, theses costs must also be considered in setting the rates. The landfill component alsu has thc following two factors that Impact the rates: I) Tip Fec Factor, and 2) Annual Tonnage Factor Approved Tip Fee(ATF) Factor Tn 2006/2007 thc cost per ton for landfill fees will inGrease by 12 ccnts. The increase relates enl1rely to Increases in rcgulatory fces (9 cent mcrease m Measure D and 3 ccnt increase in Open Space Fees). There is ho changc to thc base component oftbe cost pmd to Wastc Management, the only increase is III regulatory fecs. Thc total disposal cost for 2006/2007 will be $27 78 per ton. Of this amount $15.02 is related to rcgulatory fees and $12.76 reflects the portion paid to Waste Management for landfill services. The portion paid to Waste Management remains at thc rate that was made effechve July 1, 2005 The regulatory fees arc levied by other agencIes such as Stop Waste; County Local Enforcement Authority; Cahfornia Tntegrated Waste Management Board; Housebold Hazardous Waste Fccs; County Business License; etc. ThIS results in an A TF Factor of 0.43%. [2005 Rate = $27 66/ton and 2006 Ratc = $27 n/ton. $2778 - 27.66 = 0.12, 0 12/27.66 = 0 0043] Annual Tonnage (AT) Factor The tonnage ll1Grease f\,r the 2006/07 adjustment is reqUIred under the agreement to bc tonnage shown in ExhibIt 1 of the Agreement (27,039 tons) compared to an armuahzed average based on disposal reports for thc period July 1, 2005 - December 31, 2005 This formula results m an average disposal for 2005 of 29,839 tons. This results in an AT Factor of 10.36%. [29,839 27,039 = 2,800; 2,800 1 27,039 = 01036] Page 3 01'5 (Attaehment 1) METHODOLOGY USED FOR 200612007 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR V ALI"EY INDUSTRIES 4~'~ Report Submitted To: City Council June 20, 2006 Prepared By. Paul S Rankin~ Administrative SeTvi~cs Directur Application of ATF and AT Factors to Disposal Compensation Element Thc base agreement Landfill Compcnsation Element was estabhshed at $747,899 In accordance wIth the Agrccmcnt this amount IS first adjustcd by the Annual AT Fact\lT [747,899 * I 1036 = $825,3Rl] and then that tutal is escalated by the A TF factor [$825,381 * I Oll43 = $R2R,930] This amount then flows into the total proj ected total compensation shown in section 5 of thIs report. 3. MethodoIol!Y Addressinl! Container Compensation Element This clement represents the amortized cost of carts and bms over the life ofthc agreement. The allowed amount is modified by the AG factur As notcd above thIs factor was caleulatcd at 6.34% for the 2006/07 adjustmcnt. In the illltial agreement the amount designated for the Container Element was $177,000 Adjusting this by the AG Factor results ill $188,222 as the anlOunt to be recovercd from rates m 2006107 4. MethodoIol!v Addressinl! Fee Compensation Element As part of the Agreement with thc City of Dublin A VI IS requircd to rcmit franchise taxes and certain fces to the City of Dublin based on a pcrccntagc of its revenue. Therefore, as thc company rates go up tbe Fee Element must also be adjusted In order to recognizc thc fees to be paId on the llew rcvcnue. The Fee Compensation Elemcnt shall equal. (Collection + DIsposal + Contaillcr Elcmcnts) = "base compensahon" "basc compcnsation" is divIded hy (1 minus thc Currcnt Fee Percentage) mmus the basc compensation For 2006107 Fee Compcnsation Element Calculahon is as follows: (4,612,722 + 82R,930 + 188,222) = $5,629,874 (base compcnsation) $5,629,8741 (1- 15.6%) = $5,629,874/844% = $6,67ll,467 $6,670,467 - $5,629,R74 = $1,040,593 The adjustcd total compensatIon for the Fee Elcmcnt is shown in section 5 below 5. City Process Of DeveloDinl! Rates Proiected To Meet Total Compensation As discuss cd abovc certain adjustment factors are applicd to each area. The starting point is the base compensaholl allowed undcr the Agreement as shown ill thc following table: Compensation Element -------. -.--. _<:;olleetion _Disposal Container Fee Base Agreement 7/1/05 $ Amount $ 4,176,900 $ 747,89<) $ __J ?7, 000 $ 942,9R7 Adjustment Factor RRI and AG -- ATF and AT AG 15.6% applied to the sum of the Adiusted Collection I Disposal! Container Elements 200612007 Ad.iusted Comp $ 4,612,72:2_ $ 828,930 ......-- ...J 188,222 $ 1,040,593 TOTAL $ 6,044, 7~6 . ._ $ 6,~70,467 Page 4 of5 (Attachment 1) METHODOLOGY lTSED FOR 2006/2007 GARBAGE RATE ADJUSTMENT IN 60b l-y ACCORDANCE WITH AGREEMENT BETWEEN CITY OF DUBLIN AND AMADOR V ALLEY INDUSTRIES Report Submitted To: City Council Jlmc 20, 2006 Prepared Hy- Paul S. Rankin, Administrative Sl:Tviccs Diredor As sbown abovc thc 2006107 rate adjustment process results in the need to establish rates at a level expected to generate $6,670,467 in rcvenuc. This anlOunt is $625,681 more than the allowcd compensahon calculated when thc ratcs were established for July 1,2005 Prior to establishing the amount tbat will be gencratcd from rates, an adjustmenllS made for grant rcvenues that reduce the Company operating cost. The amount ofrevenue requITed from rates IS partially offset by two grants. A $350,000 grant was obtaincd at the beginning ofthe agreement to reduce thc cost of impIemcnting a natural gas truck fleet. The total grant is amortized over the 7 year life ofthe Agreement and tberelore $50,000 is credited against requIred revenue in 2006107 Thc City has also obtained a Recycled Oil grant of$IO,385 that is applied towards the revenue requirement. Therefore, a total of$60,3~5 ($50,000 + $10,385) ofthc required compensatIon IS offset by grants. Thc final step in developing the rates is to tesl the total annual expected revenue to the Company, when the ratcs are increased by different amounts. It IS necessary for thc adjustment to be at a level so that lhe total annual projccted compcnsation to the Company will equal $6,670,467 Thc caIeulation for 2006107 IS perfolmed usmg the census figures as of Dccember 2005 Based on the December 31, 2005 census of customers servIced hy A VI, Staff with assistance from R3 Consultmg have determined that a 5 47% across the board increase will generatc thc required revenue. It IS not possible to exactly match thc targeted annual revenue given tbe various subscription levels and fees. The goalls to come as close as possible to thc targct. The test caIeulatIon shows that when thc grant funds of $60,385 are added to the new rates (incrcasc of 5 47%) that the total prOjected compcnsation is $6,671,102. ThIS only exceeds the target by $635 Pagc 5 of5 (Attachment 1) lo ~!Jc (Selected Service Levels Representing Most Common Subscriptions) COMPARISON OF SELECTED RATES Current (2005/06) vs Proposed (2006/07) Proposed Increase over Current Proposed 200512006 Residential -Month Iv Rates Rate 2006/2007 $ % Minimum Residential (35) Gallon $12.17 $ 12.84 $ 0.67 55% 64 Gallon Residential $22.36 $ 23.58 $ 1.22 5.5% Sample rate categories represent 96% of residential customers Commercial -Monthly Rates 1 Yard - 1 time I wk $ 52.11 $ 5496 $ 2.85 5.5% 2 Yard - 1 time / wk $ 104.22 $ 109.92 $ 570 5.5% 3 Yard - 1 time I wk $ 156.33 $ 16488 $ 8.55 5.5% 3 Yard - 2 times / wk $ 325.63 $ 343 44 $ 17.81 5.5% 4 Yard - 1 Time / wk $ 208 44 $ 219.84 $ 1140 5.5% 4 Yards - 2 times I wk $ 429 85 $ 453.36 $ 23.51 5.5% Sample rate categories represent 71 % of commercial customers OroD Box - Rates Per Service 20 Yard Loose $ 31300 $ 330.12 $ 17 12 5.5% 30 Yard Loose $ 469.50 $ 495.18 $ 25.68 5.5% 40 Yard Loose $ 626.00 $ 660.24 $ 34.24 55% Represents 86% of 2005 non-compacted Drop Box Subscriptions 30 Yard Compacted $ 938.70 $ 990 05 $ 51.35 5.5% Represents 39% of the 2005 compacted Drop Box SUbscriptions Handy Hauler Available To Residents $ 72.78 $ 76.76 $ 3.98 5.5% Attachment 2 ATTACHMENT 3 - RATE COMPARISON 2006 Garbage Rate Comparison Survey (Prepared June 9, 2006) Comparison With Proposed Rates Propos ed EffeClive 711 As of 1 0106 Dublin % Proposed Curren~ % Increase Residential Livermore P leasanton San Ramon Average Basic Rate From Avg Rate over Prior FY 1 Can Residen!ial (32-35 Gallon) $ 13.08 $ 22.50 $ 16.45 S 17.34 $ 12.84 -26% $12.17 5.5% 2 Can Residen!ial (64-70 Gallon) $ 2~.n $ 25.04 $ 2868 $ 27.50 $ 23.59 -14% $22.36 5.5% % Dubli n Custo mers Covere<J By Sa mpl e Rate Catego ries: 96% Residential Notes: Dubl in: Basic rate includes 35-gallon garbage can (weekly pick-up) ;Weekly 64-gall on organics can; Weekly 64-gall on curbside recycl ing can; lager size and/or add itional organ i c and recycl ing carts avai lable L.l pon request; com post give-back and 3 on~call bul ky waste clean -ups per year i ncl uding items such as electronic waste, household batterie-s, tires, white and brown goods. Livermore: Basic rate includes 35-galloo garbage can (weekly pick.up)~Weekly 64-gallon organics can; Weekly 64-og allon eu rbside recycl i ng can j and 4 on-call clean-u ps per year San Ramon:Elasic rate includes 35-gallon garbage can (weekly pick-up); Weekly 96"9allon green waste can supplied by Company; Weekly 54-gallon curbside recycl ing can, and 3 special clean-ups per year Pleasanton: Basic rate includes 90-gallon can {recycllng + garbage) supplied by company (weekly pick.Llp}; no separate container for recyclable-s. Weekly 64-gallon organic waste can; 1 extra green.waste pick-up per year; no sped al CLl rbside c1ean-u ps As of 10106 Proposed Proposed 3 Cily Du bl in San Ramon Average $ 101.50 $ 85.89 $ 188.50 $ 16772 $ 260.99 $ 238.59 $ 521.98 $ 468.73 $ 318.99 $ 305.64 $ 537.97 $ 599.27 Effective 711 Commerci al Livermore Pleasanton 1 Yard - 1 time 1 wk $ 61 47 S 94.69 2 Yard - 1 time 1 wk $ 125.40 $ 189.25 3 Yard - 1 time I wk $ 184.40 $ 270.39 3 Yard - 2 times 1 wk $ 384.17 $ 500.05 4 Yard - 1 Time 1 wk $ 245.86 $ 352.04 4 Yards - 2 times I wk $ 501.60 $ 658.25 % Dublin Customers Covered By Sample Rate Categories: 71 % Dubli n and Livermore rates include free commercia I recycling % Proposed From Avg -36% -34% -31% -27% -28% -24% Current Rate $52.11 $104.22 $156.33 $325.63 $208.44 $429.85 D roo Box 20 Yard Loose $ 298.40 $ 353.46 $ 445.00 $ 365.62 $ 330.20 -10% $ 313.00 30 Yard Loose $ 447.60 $ 530.19 $ 465.00 $ 480.93 $ 495.30 3% $ 469.50 40 Yard Loose $ 596.80 $ 706.91 $ 485.00 $ 596.24 S 660.40 11% $ 626.00 30 Yard Compacted $ 1 ,342.80 S 1,060.37 $ 590.00 $ 997 72 S 990.30 -1% $ 938.70 % Dublin Customers Covered By Sample Rate Categories: 84% $ $ $ $ $ $ 54.98 109.96 184.94 343.56 219.92 453.52 Eve!) effort has been made to assure the aC-Guracy of the information and oomparison of similar levets of serviC€ accordiflg to our uooerstanding 'Of olher agel'\C~ rate-so % Increase over 200412005 5.5% 5.5% 5.5(1/0 5.5% 5.5% 5.5"'" 5.5% 5.5% 5.5% 5.5% ~ d' ATTACHIHE:\T 3 " RESOUTTlON NO - 2006 t6~ I~ A RESOLVTION OF THE CITY COVNCIL OF THF CTT'\: OF DUBLIN AMENDING THE SCHEDULli: OF SERVICE RATES FOR INTEGRATED SOUD WASTE SERVICES WHEREAS, the City ofDubhn execoted a Collection Service Agreement wIth Amador Valley Industries (A Vl) on January 12,2005, and WHRRF:AS, the Agreement reqlllres the City Council to adopt a rate sehedulc, which is estimated to producc a speeitied revenue amount as Idcntlfied in the Agreement; and WHEREAS, the City Council adopted the initial rate sehedule with Resolution 6g-05 at a nol1eed public hearing on May 3, 2005 and the Agreement provides that the City Council is responsible for estabhshmg all rates; and WHEREAS, the Agreement with A VI provides for an adjustment 10 the rates each July 1" in aeeordance with speelfied furmulas; and WHRRRAS, the City has calculated the required rate adjustment necessary to generate the agreed to eompensation and applied a 5 47%, adjustment aeroSS the board on all solid waste rates; and WHEREAS, on June 20, 2006 the City Council cunduded a noticed public hearing prior to the adoption of the new ratc sehcdulc. NOW, THEREFORE, RF: IT Rli:SOLVED that the City Couneil of the City of Dublin does hcreby adopt the Rate Schedule attached hereto, marked I'xhihit A and by reference made a part hereof BE JT FURTHRR RRSOL VED that, upun thc effective date, July I, 2006, this resolutIOn shall supersede all prevIOus resolutions adopting rates for solid waste serVIces, and the rates adopted by this resulutlOn shall continue from year to year PASSED, APPROVED AND ADOPTED thIS 20th day of June, 2006. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST City Clerk Attachment 4 tt 'b 12- 2006/07 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, 2006. 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 35 gallons of garbage capacity, including once per week COllection and disposal; Weekly Curbside Residential Recycling: and Weekly Curbside Green Waste Recycling (Icludes food scrap); 3 on-call bulky waste item pick-ups per year;; and access to an Annual HHW drop-off event. All containers are provided by the Company Minimum Monthly Rate $ 1284 (Rate includes fifteen cents ($0.15) retained by City for preparing tax . rOil I collection.) Residents may select a larger garbage container for an additional fee which is shown below. 64 Galton Gamage Contalna, Po, Month, Minimum Cost Plus $10.74 Total I Mo = $ 23.58 96 Gallon Gmb,," Cuntalnc' Pc, Month: Minimum Cost Plus $21,49 Total I Mo = $ 34.33 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 Second Container' 8 44 per Cubic . Yard Additional Large Item Collection: Commercial and Multi.Famllv Bin Services (Front.End Loaderl 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. Service is a bundled rate including recycling services under the Agreement with AVi. 35 Gallon Container. $12.84 64 Gallon Container' $23.58 96 Gallon Container' $34.33 R~t(; R~l".!Jud~", I;.hihir ^ (l'agelof2) 1D11'Y Commercial and Multi-familv Bin Services {Front-End Loader} CONTINUED Commercial Bin Service Rates Rates based upon bin size and frequency of service. Rates include collection, disposal, and bin rental. Commercial bin service is a bundled rate includin9 recyclin9 services under the A9reement with AVI Size # Times Size # Times Base Monthly Rate Base Monthly Rate # Yards Per Wk # Yards Per Wk 1 1 $54 96 4 1 $219.84 1 2 $123.60 4 2 $453.36 1 3 $192.24 4 3 $686.88 1 4 $260.88 4 4 $920 AO 1 5 $329.52 4 5 $1,153.92 1 6 $398.16 4 6 $1,38744 2 1 $109.92 6 1 $329.76 2 2 $233.52 6 2 $673.20 2 3 $357 12 6 3 $1,016.64 2 4 $480.72 6 4 $1,360.08 2 5 $604.32 6 5 $1,703.52 2 6 $727.92 6 6 $2,046.96 3 1 $164.88 7 1 $384 72 3 2 $343.44 7 2 $783.12 3 3 $522.00 7 3 $1,181.52 3 4 $700.56 7 4 $1,579.92 3 5 $87912 7 5 $1,978.32 3 6 $1,057.68 7 6 $2,376.72 Organic material is charged at 75% of the Commercial Service rate. OTHER COMMERCIAL SERVICES. Rates for additional requested services. Container Push: $ 5.00 Lock & Key' $ 3.00 Excess Waste (Cu. Yd): $ 16.41 per Cubic Yard Excess Cart Exchange: $ 5.00 Excess Bin Exchange: $ 20.00 Excess Bin Cleaning: $ 25.00 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 hi9her than water $76.76 level; Additional Bin Rental Per Week: $13.44 Per Weel Cost For Additional Dump: Per Pick-up $55.65 Excess Per Yard If Filled Above Water level $16.41 Per Cubic Yard DROP BOX I 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: $16.51 Compacted: $33.00 Organic material is charged at 75% of the non-compacted or compacted rate as appropriate. MISCELLANEOUS DROP BOX CHARGES Relocation of Drop Box Weekly Drop Box Container Rental - After 1 sl Week Cancel Auto Pick-up Without Notice Handy Hauler Extra Week Rental Standby Time $48.18 $18.85 $60.70 $13.44 $79.10 Per Request Per Week Per Event Per Week Per Hour R;rt~ R~5ohltion Exhibil A 'P~c].r,)f2\ RESOLUTION NO. - 2006 II1JIY A RESOLUTION OF THE CITY COUNCIL OF THE CITY OI<' DlfBLIN ********* APPROVING AND ESTABLISHING THE COLLECTION OF MINIMUM RESIDENTIAL GARBAGE AND RECYCUNG SERVICE FEES FOR FISCAL YEAR 2006-2007 WHEREAS, the City of Dublin is mandated by the State of CaJifomw, under An 93'1, to reduec the amount of suhd waste going into the landfill, and WHEREAS, through the Mandatory Garbage Ordinancc and other means, the City of Dublin is taking a proactive stance to mcet thc State Mandated Goals; and WIIF:REAS, the goal of the Mandatory Garbage Ordinanec IS tu protect the health and welfare of the eummunity, to provide recycling scrvices to all residential property uwners, and to equally sharc the costs of these ptol,,"'ams by mandating that evcry reSIdence contributes towards thc eust of the service madc available; and WHEREAS, minimum service meludes service described in the current Agreement with the franehised wastc hauler, Amador Valley Industries (A VI); and WHEREAS, Il1 aeeordance with Califomia ConshlutHll1 Article XIII C (I'roposlhon 21R) Section 6 (2) thc City has proVIded wntten notice to all affected propcrty owners March 18,2005 prior \u adopting the 2005/20001'> rate structurc which Il1duded a provision for foture inercases based on changes in spcelfied indices as outlined in the agreement with A VI, and WHEREAS, the City COllneil has considered this action as part of a noticed public heanng on June 20, 2001'>. NOW, THERFFORF:, BE IT RESOLVED that, the City Council ofthc City of Dublin does hereby approve and estabhsh 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 inCOI'Porated by referenee. BE IT j<'VRTHER RESOL VF:D that the City Staff arc hereby authorized to undertake all administrative tasks to implement the assessments, including, but nut 11l111ted to an agreement with Alameda County for colledlOn which may pruvlde payment to Alameda Cuunty of Its reasonable costs of collodIOn not to exceed 1 7% uf the tutal amount levied. PASSED, APPROVED AND ADOPTED thlS 20th day of June, 200(,- AYES NOES ABSENT ABSTAIN Mayor ATTEST CIty Clerk Attachment 5 City of Duhlin /2 IV' RESIDENTIAL MINIMUM GARBAGE / RECYCLING SERVICES '1J (Collected With Residential Property Tax Bills) Basis 0 f Fees The City has negotiated a mull1-ycar agreement with Amador Valley Industries (A VI) requiring a rate adjustment to the residential mlllimum garbage/recycling services colleded with the property tax hills. The current annual fee of $146.04 pcr year will increase $X.04 filT a total of $154.08 for 2001>-2007 The annual asscssment equates to a monthly lll..:rease 01'$0 67, from $12.17 to $12.R4 The AE,'tccmcnt with the Company provides for, annual adjustments tu the rates based upon annual changes 111 five s~'Parate indices maintained by the Bureau of Lahor Statisti..:s (Rc1ilsc Rate Index), plus pass-through disposal custs. The tive indices account for cost changes III thc folluwing categories: lahor; fuel and oil; vchidc replacement; vehicle maintenancc; and all uthcr custs. In order to determine the fee, the CIty cstimates the total revenue required tu pay the Garbage Company for Minimum Service tu all reSll1cntial units which are eligible to use the serVlCC, according to the ternlS of the agreement with A VI. Thc specific factors considered III thIS calculation include the following components: the residential rale fur Minimum Service; estimated numher of housing units atreeted by the fee; costs associated with the cullection of the fee as part ufthe Pruperty Tax Bill, estimated delinquenCIes; eSl1mated reVcnues ti'om late payments and Illtcrest earnings; and funds availahle from eolledlUns in a prior year Affeeted Parcels Chapter 5.32 of the Dublin Municipal Code requires for the protection ofthe health safety and welfare ufthc commumty that all parcels obtain minimum weekly garbage sClvice. Residential housing umts arc billed tor the cust of Minimum Garbage/Re..:ycling Services, which is included with the annual property tax bill. nlis fee only applics to residential units whIch havc individual garbage containers and are not servi..:cd by central billS. This docs include duplexes and other attached housing types, which receive indIVIdual servicc. Households subjectlu thIS ICe which only receive Minimum ServIce, will not be billed by the Garhage Company Amadur Valley industries will hill customers ea..:h quartcr tor additional servi..:es, If a huusehold selects weekly garbage collection of a container larger than the 35 gallon container included III the Minimum Scrvice Level. What Services Are Provided By The Fee Minimum service includes weekly curbside collection of: a 35 gallon garbagc cuntainer; up to two \16 gallon organic waste carts; up tu two 91> gallon recycling carts; used uil and filtcrs; an annual household hazardous waste drop otf event; and three un-call bulky wastc pick-ups per year Amount ofthe Fee The annual amount of the assessment indudes the cost of collection as well as the cost uf servIces over the entire year The City makes the paymcnt to Amador Valley Industries hased upun thc current rate allowed for Minimum Residential ServIce. TYPE OF HOUSING UNIT Each Single Family Resldenee Each Condominium / Townhouse Unit Each Duplex (2 llnits) Each Duplex (5 or More Units) ANNUAL FEE $ 154.08 $ 154.08 $ 308.16 $154.08 times the numher of units EXHIBIT A ~_.._-