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STAFF REPORT C I T Y C L E R K
DUBLIN CITY COUNCIL File # ^~]O^~-0~
DATE: June 22, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni L. Pattillo, City Manager
SUBJE : Public Hearing: Adoption of Rates for Garbage Collection, Disposal, and
Recycling Services Provided By Amador Valley Industries and Establishing
the 2010-2011 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, 2010 and establishing the Fiscal
Year 2010-2011 refuse related property tax assessment.
FINANCIAL IMPACT:
The cost of the minimum required residential can (32 gallon) would increase by $3.74 per
month to $17.99 per month. When compared to the Tri-Valley cities of Livermore, Pleasanton,
and San Ramon, the $17.99 monthly fee is 25.60% below the Tri-Valley average monthly rate
of $24.18 and 6.74% below the Livermore monthly rate of $19.29, which is the closest rate to
the City of Dublin. The Dublin commercial rate ($320.84) for the average service level or a four-
yard bin collected once per week is 21 % below the Tri-Valley average rate of $406.64 or $85.80
less. Based on a change in the agreement with the garbage service provider, approved by the
City Council June 1, 2010, additional revenues and expenses are proposed to be incorporated
as an adjustment to the Fiscal Year 2010-2011 budget.
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; 6) Adopt the
Resolution Amending and Establishing the Collection of Minimum Residential Garbage and
Recycling Service Fees for Fiscal Year 2010-2011; and 7) Adopt the Budget Change;.
Page 1 of 4 ITEM NO. V• ~
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Su mitte - By Reviewed By Revie By
Sr. Administrative Analyst Administrative Services Director Assistant City Manager
DESCRIPTION:
In December 2004, the City executed a 7-year Collection Service Agreement, with an optional
3-year extension, with Amador Valley Industries (AVI) for service that began July 1, 2005. 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 on-call bulky waste pick-ups per year. Residents
desiring larger garbage carts are billed directly by the Company 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, 2009. 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 census numbers 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 equivalently across all service sectors to meet the calculated revenue requirement
as set forth by the rate model.
Contract Amendment
On June 1, 2010, the City Council approved an amendment to the Collection Service
Agreement with AVI (Attachment 1). The amendment extended the contract term with Amador
Valley Industries for an additional eight years (through 2010), created a no-negative growth
provision within the solid waste rate structure, updated indices used to increase solid waste
rates, and adjusted franchise and administrative fee rates. These items have been included in
the proposed rates for Fiscal Year 2010-2011.
The rate adjustment proposed to be effective July 1, 2010 must also incorporate factors
resulting from the contract amendment adopted by the City Council. Since the outcome of the
Page 2 of 4
contract amendment was unknown at the time the City prepared its Fiscal Year 2010-2011
Budget, it will be necessary to adopt a budget change (Attachment 2). The budget change will
update the estimated franchise and administrative fees as a result of the contract amendment.
In addition, the amount budgeted as revenue for residential service collected on the property tax
bill, and the offsetting expenditure increase, must also be accounted for as a budget revision. A
portion of the additional cost will be funded from existing fund balance, derived from prior year
collections and interest revenue. As far as the increase in the fees collected from AVI is
concerned, Staff has proposed that they be used to offset existing expenditures within the City's
proposed Fiscal Year 2010-2011 Budget for street sweeping, street maintenance, litter
abatement, and Environmental Services Staff time. Staff believes that these costs are
necessary components of a successful solid-waste program.
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 2010-2011 is estimated to
meet the compensation requirement of $8,973,445. This compensation is possible as a result of
a proposed 26.25% increase to all rate categories and a proposed 5.74% increase in the
Commercial Recycling Compensation Element. A detailed description of the methodology
required by the Agreement is included as Attachment 3.
Detailed Comparison of Current and Proposed Rates
Attachment 4 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, 2010.
Competitiveness of Dublin Rates with Neighboring Agencies
As shown in Attachment 5, the proposed City of Dublin rates remain very competitive compared
to rates charged for similar services in surrounding communities. In all cases, the City of Dublin
service levels are at least comparable, and 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 2010-2011 is $215.88, which is collected in two
installments on the property tax bill. The proposed annual cost equates to $17.99 per month.
This is a$3.74 per month increase over the rate levied in Fiscal Year 2009-2010. This base rate
includes $0.05 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
2005/06 2006/07 2007/08 2008/09 2009/10 Proposed
2010/11
$146.04 $154.08 $156.48 $162.72 $171.00 $215.88
Page 3 of 4
Staff recommends that the City Council adopt the Resolution establishing the Fiscal Year 2010-
2011 solid-waste-collection rates (Attachment 6) and adopt the Resolution establishing the
annual assessment for the required minimum level of garbage service (Attachment 7).
NOTICING REQUIREMENTS/PUBLIC OUTREACH: A notice was placed in the Valley Times
on June 5, 2010 and June 12, 2010, notifying the community of the City Council's consideration
of the proposed rates.
ATTACHMENTS: 1. June 1, 2010 Staff Report (w/o Attachments)
2. Budget Change
3. Methodology Used For Fiscal Year 2010-2011 Rate Adjustment
4. Proposed vs. Current Rates
5. Tri-Valley Rate Comparison
6. Resolution Amending the Schedule of Service Rates for
Integrated Solid Waste Services
7. Resolution Approving and Establishing the Collection of
Minimum Residential Garbage and Recycling Service Fees For
Fiscal Year 2010-2011
Page 4 of 4
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19~~~~~~ STAFFREPORT CITY CLERK
~`~,,1,~ `~ DUBLIN CITY COUNCIL Fi~e #^~~ DO- 3~~
DATE: June 1, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni L. Pattillo, City Manager
SUBJECT: Fourth Amendment to the Collection Service Agreement between the City of
Dublin and Amador Valley Industries, LLC
Prepared By: Roger Bradley, Senior Admrnistrafive Ana/ysf ~
EXECUTIVE SUMMARY:
The City Council will consider approving an amendment to the Collection Service Agreement
between the City of Dublin and Amador Valley Industries. If approved, the Amendment would
extend the contract term with Amador Valley Industries for an additional eight years, create a
no-negative growth provision within the solid waste rate structure, update indices used to
increase solid waste rates, include commercial recycling bins as an item in the annual growth
factor, and adjust franchise and administrative fee rates.
FINANCIAL IMPACT:
The cost of the minimum required residential can (32 gallon) would increase by $3.74 per
month to $17.99 per month. When compared to the Tri-Valley cities of Livermore, Pleasanton,
and San Ramon, the $17.99 monthly fee is 25.60% below the Tri-Valley average monthly rate
of $24.18 and 6.74% below the Livermore monthly rate of $19.29, which is the closest rate to
the City of Dublin.
RECOMMENDATION:
Staff recommends that the City Council adopt the Resolution approving the Fourth Amendment
to the Agreement with Amador Valley Industries, LLC and authorize the City Manager to
execute the Amendment.
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Submi ed By Reviewed By
Sr. Adminis rative Analyst Administrative Services Director
v Revi wed y
Assistant anager
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Attachment 1
Pag~ 1 of 5
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DESCRIPTION:
At the City Council meeting of June 23, 2009, Staff was directed to work with the City's refuse
hauler, Amador Valley Industries (AVt), to amend the Collection Service Agreement to augment
the annual rate adjustment methodology to adjust for losses experienced by AVI as a resutt of
recent economic conditions. Specifically, Staff was directed to explore the annual inflationary
process to include a new rate adjustment index and change the escalation cap from 5.00% to
10.00%. Additionally, Staff was also directed to include AVI's labor contact costs as one of the
indices used to calculate annual inflationary costs.
The Agreement with AVI provides for an annual rate adjustment based on a compensation
model presented within the Collection Service Agreement. One inflationary factor used within
the adjustment methodology to determine the amount of rate increases is the Refuse Rate
Index (RRI), defined in Section 5.05.1.1 of the Agreement. This index is applied to the various
compensation elements within the model as a percent increase in compensation for the next
year's rates. The RRI factor is similar to, and functions exactly like, the well known Consumer
Price Index (CP1), except that it is benchmarked to indices relevant to the refuse collection
industry. The table below lists the currEnt indices indicated as Operating Cost Components in
Exhibit 2, Page 78, of the Collection Service Agreement and the proposed replacement indices.
RRI Calculation Comnonents
Formula Com arrent
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Curi~ent Index. '_""
...
.
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Labor Waste Collection-Average Hourly Teamsters Union Local 70 Contract
Earnings (summation of monthly average per person
ceu60566210008 of sala + benefits + ension
Vehicle Replacement Transportation Equipment-Truck & Bus No Change
Bodies Sold Separately
w u141301
Vehicle Maintenance Machinery & Equipment-Parts, No Change
Attachments and Accessories
w u11440378
All Other Machinery & Equipment-Parts, Consumer Price Index - All Urban
Attachments and Accessories Consumers: San Francisco-Oakland-San
(wpu11440378) Jose, CA
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Originally, AVI had proposed to replace the A!I Other category of the RRI with the Labor
Contract costs. As Staff and AVI have worked on the Amendment, both have come to agree
that a more appropriate location for it is in the Labor category. Staff and AVI then agreed upon
the Bay Area CPI's inclusion in the All Other category, which is the original index used for this
category and will have a smaller rate impact in the Fiscal Year 2010-2011 rate adjustment.
ADDITIONAL AMENDMENT PR~VISIONS
During its work on the contract amendment, Staff and AVI have discussed opportunities tc
provide for a long-term solution to service provision for the City of Dublin, which would be
financially beneficial to both entities. Specifically, the proposed amendment would extend the
contract term with AVI for an additional eight years, with a new termination date of June 30,
2020. This would benefit the City by locking in the low rate structure for the long-term,
maintaining the City's position as the low cost service provider in the Tri-Valley, and it would
benefit AVI by allowing it to restructure its financing obligations at a lower cost, as a result of the
guaranteed additional service provision period.
Page 2 of 5
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If the City Council were to consider re-bidding the contract at its current termination date, June
30, 2012, it would not be unreasonable to expect that the new rates may increase to the level,
and possibly beyond, of the City of Livermore, which executed a new contract for garbage
services September 2009. This assumes that the City would continue to provide all services it
currently has in place, as adding or removing services affects overall service rates. By way of
example, in order for it to able to control its costs and keep overall service rates low, the City of
Livermore had to begin separately charging for commercial recycling services, which is still
included as a free service as part of Dublin's basic senrice rate under the proposed
amendment. Therefore, locking in the rates for the long-term with AVI best protects the interests
of the Dublin ratepayer. A cost comparison of the Amendment's impact with the rates of the Tri-
Valley Cities of Livermore, Pleasanton, and San Ramon is presented in Attachment 1. In nearly
a11 cases, the City of Dublin proposed rate is significantly below the average and below the next
most competitive city.
In addition to the City Council initiated contract amendments, AVI discussed with Staff the
revenue shortfalls that AVI has experienced over the past year due to losses in the commercial
sector. Annually, the rates are set to generate a sufficient amount of revenue to compensate
AVI for the collection services it provides to the City. While the model is not meant to be an
exact projection of the revenue needed, it is designed to provide a reasonable estimation of the
revenue needed to fairly compensate AVI for its services. AVI indicated to the City that it
expects to be nearly $500,000 under the model's estimation in the current year, and the rate
projection for next year will further decrease (approximately 8%) as a result of current
commercial conditions. This presents serious problems for the hauler, and ultimately for the
City, as a certain level of revenue generation needs to be maintained to ensure the financial
solvency of the Collection Service Agreement. To fix this problem, Staff and AVI have
negotiated a no-negative-growth provision and included this within the proposed amendment.
The effect of this provision is two pronged: first, it recasts the rate structure across the current
customer base, which recovers the losses experienced in the previous year, anc} second, it
provides a level of security to AVI in that rates will be maintained at their current level should
conditions continue to worsen or worsen again at some point in the future.
An additional request of AVI, in order to extend the contract term, was to include commercial
recycling within the annual rate adjustment model. As the City's commercial recycling programs
continue to grow over the extended term, AVI has concern that the financial model it built its
original bid estimate upon may no longer hold and that it may begin to lose money. Losses in
revenue are projected as commercial customers shift from revenue generating garbage service
to free recycling services. Currently, the rate model does not account for commercial recycling
as a revenue escalation factor in the rate structure, as the City has free commercial recycling
services that do not generate revenue. In order to lock in the rate over the contract extension
term and meet AVI's request, Staff has included this provision as part of the contract
Amendment. The item will not take effect until the Fiscal Year 2011-2012 rate adjustment. It is
likely that the impact of this inclusion will result in a 1%- 3% increase in the overall rate
structure in any given future year, depending upon new commercial growth and the
effectiveness of promoting the City's recycling programs to existing businesses. Growth would
include onty new recyciing services added after December 31, 2010.
In addition to the AVI request, Staff also negotiated a few items for inclusion within the
proposed amendment. First, Staff included a provision clarifying that all City facilities are to
receive access to garbage, recycling, and composting services free of charge. Under the
current contract, the only collection services provided free of charge to the City were for those
facilities listed within Exhibit 3 of the contract, which contains only those facilities that were
Page 3 of 5
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extant as of July 1, 2005. The amendment deletes this exhibit and indicates that any City facility
extant or proposed will receive the appropriate level of service as determined by the City. This
will take into account future City service sites, new parks, etc. as well as those added since July
1, 2005 without the need of amending the contract on a continual basis.
Finally, in researching best management practices for inclusion in the contract extension, Staff
found that agencies often recover costs that have a nexus with solid waste generation from the
solid-waste hauler. For example, the City of Livermore, which, as mentioned above, negotiated
a new agreement as of September 2009, has instituted a number of fees to recover costs
regarding street sweeping, franchise monitoring and enforcement, collection vehicle impacts,
and neighborhood preservation, which is a fee designed to compensate for resolving health,
safety, and public nuisance problems. As Staff compared this to the City's current contract, it
noticed that there are a number of garbage related costs that the City's general and other funds
have been subsidizing over the past many years, which could be recovered from the solid waste
hauler through the proposed contract amendment. In order to consolidate and compensate for
these costs, Staff has negotiated an increase in the franchise and administrative fee paid to the
City by AVI for its rights to provide exclusive service to the City. Currently, the franchise fee is
set at 13.60% and the administrative fee is set at 2.00% of revenues received by AVI. Staff has
negotiated an increase of these values to 16.35% and 7.00% respectively. The agreement
allows the City to adjust the amounts as needed without an amendment, but for transparency
sake, this proposed change has been included within the amendment. This will result in
additional compensation to the City's General Fund, which could be used to offset costs for
street sweeping, street maintenance, litter abatement, and staff time.
As far as the above activities are concerned, Staff believes that these costs are necessary
components of a successful solid-waste program. Street sweeping, for example, occurs directly
following solid-waste-collection days to remove litter from our streets, which is left after pick-up
as well as to remove other refuse and debris from our streets for proper disposal. Street
maintenance costs have been included to account for the impact that solid waste collection
vehicles have on the City's roadways. In addition, the City has recently been placed under strict
requirements by the Regional Water Quality Control Board to abate litter and other
contaminants (e.g., used oil, which is collected by AVI) that may enter our storm-sewer system.
Finally, in order to ensure the City's environmental programs are managed in the long-term, the
increased revenue provides funding for 2.5 FTE Environmental Services Staff (1 Environmental
Specialist, 1 Environmental Technician, and 0.5 Secretary). The City has been using leftover,
one-time funding from the Waste Management Contract as well as Measure D funds, which
have been declining yearly to fund these positions. This will ensure stable funding for these
positions and continued sound management of the City's programs in the long-term.
As a result, Staff recommends increasing the franchise and administrative fees to reimburse the
City for these items. These proposed new revenues have not been included in the proposed
budget, which the City Council will review at its meeting on June 22, 2010. The additional
revenue will only occur after the City Council adopts the new rates. If adopted, a budget change
reflective of the additional revenue will be presented for City Council approval. Thus, Staff
recommends that the City Council adopt the Resolution approving a Fourth Amendment to the
Agreement with Amador Valley Industries, LLC and authorizing the City Manager to execute the
Amendment (Attachment 2),
NOTICING REQUIREMEN7S/PUBLIC OUTREACt-I: A copy of the report has been sent to
AVI.
Page 4 of 5
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ATTACHMENTS:
1. Tri-Valley Rate Comparison
2. Resolution authorizing the Fourth Amendment
to the Collection Service Agreement between the
City of Dublin and Amador Valley Industries,
LLC.
Page 5 of 5
CITY OF DUBLIN ~ ~~ p~,~
BUDGET CHANGE FORM FY 2010 / 2011
CHANGE FORM #
New Appropriations (City Council Approval Required): Budget Transfers:
____ From Unappropriated Reserves (*) __ From Budgeted Contingent Reserve (1001.1901.81101)
Within Same Department Activity
~ From New Revenues __ Between Departments (City Council Approval Required)
Other
" D~ECREASE~BUI3GE[' ~CCO~UN7'~ . ,
ANCO~lN~~~ ~.'_`..
,..I~CREASE BUD+GET~,~A,GCOUIVT~~~' .. ..
,AMOLIf~T ,~'..~~,,
Name: REVENUE - General Fund -
Franchise Tax Garbage
$ 525,000
Account #: 1001.0000.42403
Name: REVENUE - General Fund -
Waste Mgt Admin Fee
$ 485,000
Account #: 1001.5101.48511
Name: REVENUE - Residential
Garbage Service Fund - Charges for
Service Res. Garbage/Recycle
$ 330,000
Account #: 2303.5101.48501
Name: EXPENSE - Residential
Garbage Service Fund - Contract
Services $ 351,000
Account #: 2303.5101.64001
REASON FOR BUDGET CHANGE ENTRY: This Budget Change is for Fiscal Year 2010/2011 based
on changes negotiated to the garbage and recycling agreement with Amador Valley Industries
after the proposed Budget was prepared. The revised agreement adopted June 1, 2010 provides
for increased Franchise Taxes and Administrative fee revenue. In addition based on the proposed
rates an increase in the Residential Garbage Service Revenue and offsetting expenditures will be
required for basic services collected on the Property Tax Bill. The City Council will consider the
rate adjustments at a public hearing on 6/22/2010.
Fin Mgr/ASD:
Date: 6 ~- 2e ~
Date: li 9
Signature
City Mana er: ~ ~
nature
As Approved at the City Gouncil Meeting on: i Dafe: 6/22/2010 '
Mayor:
Date:
Posted By:
Signature
Signature
Date:
G:IB~~dge~ Chmigesl3_2010_//1!_6_22_/0_Solid W¢r~e Rate Adoption.doc ATTAC H M E N T# 2
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METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Councif June 22, 2010
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. Methodoloqy 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, 2010, 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 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 table provides 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) 12/31/2009
LABOR Labor - Teamsters Union Local 70 Contract 3.08%
VEHICLE REPLACEMENT Transportation Equipment-Truck & Bus Bodies
Sold Separately 2.65%
w u141301
VEHICLE MAINTENANCE Machinery & Equipment-Parts, Attachments
and Accessories 21.18%
w u11440378
ALL OTHER Consumer Price Index - All Urban Consumers:
San Francisco-Oakland-San Jose, CA 0.73%
cuura422sa0
Attachment 3
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METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 22, 2010
Prepared By: Roger Bradley, Senior Administrative Analyst
The Company provides the City with their expenditures in each of these areas over Calendar
Year 2009. 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 2010/11
calculation.
STEP 2: RRI WEIGHTING FACTOR BASED ON RELATIONSHIP TO TOTAL COSTS
Operating Cost Category AVI $ % Total Expenses
reported (Wei htin Factor
LABOR $ 2,258,240 43.42%
VEHICLE REPLACEMENT 368,648 7.09%
VEHICLE MAINTENANCE 978,852 18.82%
ALL OTHER 1,595,436 30.67%
TOTAL 5,201,176
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 2010/11
results:
STEP 3: RRI CALCULATION (CANNOT EXCEED 5%)
[Index Change multiplied By Weighting Factor]
O eratin Cost Cate or RRI
LABOR 1.34%
VEHICLE REPLACEMENT 0.19%
VEHICLE MAINTENANCE 3.99%
ALL OTHER 0.22%
TOTAL 5.74%
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
2009. This is compared to the "Ending Calculated Revenue". The Ending Calculated
Revenue is equal to the current rates multiplied by the December 2009 census. 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 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
2 Attachment 3
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METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 22, 2010
Prepared By: Roger Bradley, Senior Administrative Analyst
family unit is calculated at the Basic Rate regardless of whether they may have multiple
recycling or green waste bins. Similarly, the commercial bin service is a bundled rate and
only the billed garbage service for which there is a rate established is counted in this formula.
For the 2010/2011 adjustment, the Agreement provides for the calculation to be done based
on the actual Collection census data as of January 2009 and as of December 2009. The
rates used for this comparison are the rates in effect on July 1, 2009.
The 2010/2011 calculation showed that the "Beginning Calculated Revenue" based on the
January 2009 census was $640,357 and the "Ending Calculated Revenue" based on the
December 2009 census was $590,148. This results in a 2010/2010 Annual Growth Factor of
-7.84%. [$590,148 - 640,357 = -$50,209; -3,781/640,357 = -.0784] Because the agreement
does not allow for negative growth, the AG Factor will be set to 0.00%.
Application of RR/ and AG to Collection Compensation Element
The 2009/2010 Collection Compensation Element was $5,348,139. In accordance with the
Agreement, this amount is first adjusted by the Annual AG Factor [5,348,139 (1+.000) _
$5,348,139] and then that total is escalated by the RRI factor. [$5,348,139 '~ 1.0574 =
$5,655,122] 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 2008, AVI collected 2,097.73. This results in a
decrease of 5.14% (1,989.88 - 2,097.73 = -107.85; -107.85 / 2,097.73 = -.0514). Because
the Agreement does not allow negative growth, the percentage is set at 0.00% and is added
to the RRI factor with the combination of the factors used to inflate the previous year's
Commercial Recycling Program compensation amount (0.00 + 0.0574 = 0.0574; $245,189 *
0.0574 =$14,074; $245,189 +$14,074 =$259,263). This amount then flows into the
projected total compensation shown in Section 6 of this report.
3 Attachment 3
~~ ~~ a;~
METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT ~
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 22, 2010
Prepared By: Roger Bradley, Senior Administrative Analyst
AVI Commercial Rec cling Compensation for FY 2009-2010
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% $256,263 7/1/2010
3. Methodology for Adiustinq Rates to Reflect Chanaes In Landfill / Disaosal 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 2010/2011, the cost per ton for landfill fees will increase by $3.00 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 $2.53 per ton ($0.25 increase in Measure D and $2.34 cent increase in the
County Facility Fee). The increase as provided in the disposal agreement with Waste
Management is $0.41 per ton. Therefore, the total disposal cost for 2010/2011 will be $32.89
per ton. Of this amount, $18.94 is related to regulatory fees and $13.95 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 10.04%. [2009 Rate =$29.89/ton and 2010 Rate =$32.89 /ton. $32.89 -
29.89 = 3.00; 3.00 / 29.89 = 0.1004]
4 Attachment 3
~l ~ ~C~
METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT ~
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 22, 2010
Prepared By: Roger Bradley, Senior Administrative Analyst
Annual Tonnage (AT) Factor
The tonnage increase for the 2010/11 adjustment is based on disposal reports for the period
January 1, 2009 - December 31, 2009 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 2009 was 24,384 tons, and in 2008, it was 25,598 tons. This results in an
AT Factor of -4.74%. [24,384 - 25,598 = -1,214; -1,214 / 25,598 = - 0.0474]
Application of ATF and AT Factors to Disposal Compensation Element
The Landfill Compensation Element was $765,098 in 2009. In accordance with the
Agreement, this amount is first adjusted by the Annual AT Factor [(765,098 *-0.0474) +
765,098 =$728,832] and then that total is escalated by the ATF factor. [$728,832 * 1.1004 =
$802,007] 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 factor. As noted above, this factor was calculated
at 0.00% for the 2010/11 adjustment. For the 2009/10 adjustment, the amount designated for
the Container Element was $194,981. Adjusting this amount by the AG Factor results in
$194,981 being the amount to be recovered from rates in 2010/11.
5. Methodoloqv 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.
5 Attachment 3
Historical Comparison of ATF Factor
Fees Assessed on a Per Ton Basis
~~~~~~
~
METHODOLOGY USED FOR FISCAL YEAR ~
2010-2011 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 22, 2010
Prepared By: Roger Bradley, Senior Administrative Analyst
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 2010/11, the Fee Compensation Element Calculation is as follows:
(5,655,122 + 259,263 + 802,007 + 194,981) _ $6,911,373 (base compensation)
$6,911,373 / (1- 23.35%) _ $6,911,373 / (76.65%)
$6,911,373 / 76.65% _ $9,016,795
$9,010,917 - $6,911,373 = $2,105,422
The adjusted total compensation for the Fee Element is shown in Section 6 below
6. Citv Process of Devefopinq 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. The adjustment methodology is shown in the table below. As the table shows,
the Fiscal Year 2010-2011 rate adjustment process results in the need to establish rates at a
level expected to generate $9,016,795 in revenue. This amount is $1,255,832 more than the
allowed compensation calculated when the rates were established on July 1, 2009.
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 cost. 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 2010/11.
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 $9,016,795. The calculation for Fiscal Year 2010-2011 is performed using the
census figures as of December 2009.
Based on the December 31, 2009 census of customers serviced by AVI, Staff has
determined that a 26.25% rate increase to all 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 $9,017,000. An additional cost of
6 Attachment 3
~.~ cX~
METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WiTH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY iNDUSTRIES
Report Submitted To: City Council June 22, 2010
Prepared By: Roger Bradley, Senior Administrative Analyst
$6,650 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 2009/10 rate model.
~ Attachment 3
METHODOLOGY USED FOR FISCAL YEAR 2010-2011 GARBAGE RATE ADJUSTMENT IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 22, 2010
Preparetl By: Roger Bratlley, Senior Administrative Analyst
Historical Comparison of Compensation Elements 200612007 - 201012011
~
~~
~
~
'~
~
Compensation 200612007 20071200
Element
Compensation 8
Compensation Absolute
Change Percent
Change 200812009
Compensation Absolute
Change Percent
Change 200912010
Compensation Absolute
Change Percent
Change 2010/2011
Proposed Absolute
Change Percent
Change
Collection $ 4
612
722 $ 4
839
470 22
Commercial ,
, ,
, $
6,748 4.92% $ 5,124,727 $285,257 5.89% $ 5,348,139 $223,412 4.36% $5 655,122 $306,983 5.74%
Rec clin ~~ $~ -- -- $ 205,130 $205,130 -- $ 245,189 $ 40,059 19.53% $259
263 $14
074 74%
5
Dis osal $ 828
930 $ 786
736 2 , , .
Container ,
$ 188
222 ,
$ 190
612 $ 4
,194
$ 2
390 -5.09%
° $ 747,006 $ 39,730 5.05% $ 765,098 $18,092 2.42%
$802,007
$36,909 o
4.82/0
Fee ,
$1
040
593 ,
$1
075
146 ,
$ 34
5 1.27/0 $196,178 $ 5,566 2.92% $194,981 $1,197 -0.61% $194,981 $0 0.00%
TOTAL ,
,
$ 6,670,467 ,
,
$ 6,891,964 ,
53
$221,497 3.32%
3.32°/a
$1,159,472
$ 7,432,513
$ 84,326
$540,549 o
7.84/0
7.84%
$1,211,293
$7,764
700
$ 51,821
$332187
4.47%
4
47%
$2,1Q5,422
9 016 795
$894,129
$1
252
0
73.820%
, ~ . , , ,
,
95 16.13 /o
8
.~.
~..
~'
-~•-
/~d~ ~~~
(Selected Service Levels Representing Most Common Subscriptions)
COMPARISON OF SELECTED RATES
Current (2009/10) vs Proposed (2010/11)
Proposed Increase over
Current Proposed 2009/2010
Residential -Monthlv Rates Rate 2010/2011 $ %
Minimum Residential (32) Gallon $14.25 $17.99 $3.74 26.25%
64 Gallon Residential $26.17 $33.04 $6.87 26.25%
Sample rate categories represent 96% of
residential customers
Commercial -Monthlv Rates
1 Yard - 1 time / wk $63.53 $80.21 $16.68 26.26%
2 Yard - 1 time / wk $127.06 $160.42 $33.36 26.26%
3 Yard - 1 time / wk $190.59 $240.63 $50.04 26.26%
3 Yard - 2 times / wk $396.99 $501.22 $104.23 26.26%
4 Yard - 1 Time / wk $254.12 $320.84 $66.72 26.26%
4 Yards - 2 times / wk $524.05 $661.64 $137.59 26.26%
Samp/e rate categories represent 71 % of
commercial customers
Drop Box - Rates Per Service
20 Yard Loose $357.60 $451.40 $93.80 26.23%
30 Yard Loose $536.40 $677.10 $140.70 26.23%
40 Yard Loose $715.20 $902.80 $187.60 26.23%
Represents 86% of 2005 non-compacted
Drop Box Subscriptions
30 Yard Compacted $1,071.90 $1,353.30 $281.40 26.25%
Represents 39% of the 2005 compacted
Drop Box Subscriptions
Handy HaulerAvailable To Residents $83.13 $104.95 $21.82 26.25%
Attachment 4
ATTACHMENT 5 - RATE COMPARISON
2010 Garbage Rate Comparison Survey (Prepared May 21, 20'i0)
Comparison With Proposed Rates
Proposed
Dublin % Proposed Current
Residential Livermore Pleasanton San Ramon Average Basic Rate From Avg Rate °/a Increase
P
i
1 Can Residential (32-35 Gallon) $ 19.2g $ 29.13 $ 24.12 $ 24
18 over
r
or FY
.
-25.60% $14.25
1 Can Residential (64-70 Gallon) $ 42.40 $ 42.18 $ 42
29 $ 33
04 26.25%
.
.
-21.87% $26.17
1 Can Residential (90-96 Gallon) $ 70.36 $ 34.57 $ 67
70 $ 57
54 $ 48
09 26.25%
.
.
.
-16.43% $38.09 26.25%
% Dublin Customers Covered By'Sample Rate Categories 100%
Residential Notes:
Dublin: Basic rate inciudes 32-gallon garbage can (weekly pick-up);Weekly 64-gallon organics can; Weekly 64-gallon curbside recycling can;
lager size and/or additionai organic and recycling carts available upon request; compost give-back and 3 on-call buiky waste clean-ups per
year including items such as electronic waste, household batteries, tires, white and brown goods.
Livermore: Basic rate includes 35-gallon garbage can (weekly pick-up); Weekly 96-gallon organics can;
Weekly 64-gallon curbside recycling can; and 3 on-call clean-ups per
ear
y
.
San Ramon: Basic rate includes 35-gallon garbage can (weekly pick-up); Weekiy 96-gallon green waste can supplied by Company;
Weekly 64-gallon curbside recycling can, and 3 special clean-ups per
ear
y
.
Pleasanton- effective October 2009: 35 Gallon Service includes 35 galton trash cart, 64 gallon green/food scrap cart and 96 gallon rec
clin
cart
y
g
.
96 Gallon service inicudes a 96 gallon trash 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 r
l
b
ecyc
a
es weigh 7
no special curbside ciean-ups . 5 ibs or more.
3 City Proposed % Proposed Current
Commercial Livermore Pleasanton San Ramon Average Dublin From Av
Rat % increase
g
e
1 Yard - 1 time / wk $ 89.73 $135.97 $ 113.19 $ 112.96 $ 80
21 -29% $ 63
53 over Prior FY
.
.
2 Yard - 1 time / wk $ 179.46 $271.76 $ 210.18 $ 220.47 $ 160.42 -27% $ 127
06 26.26%
.
3 Yard - 1 time / wk $ 269.19 $388.30 $ 290.93 $ 316.14 $ 240.63 -24% $ 190.59
3 Yard - 2 times / wk 26.26%
26
26%
$ 560.77 $718.12 $ 581.88 $ 620.26 $ 501.22 -19% $ 396.99
4 Yard - 1 Time / wk $ 358.92 $505
54 $ 355
47 $ 406
6 .
26.26%
.
.
.
4 $ 320.84 -21 °/a $ 254.12
4 Yards - 2 times / wk $ 747.69 $945.30 $ 710.94 $ 801
31 $ 661
64 26.26%
.
.
-17% $ 524.05
% Dublin Customers Covered By Sample Rate Categories: 71 % 26.26%
~
- Dublin's rates include free commercial recycling
San R
'
t
d
~
{ amon
s ra
e
oes not include the cost of commercial recycling as the amount varies depending on the hauler used
ti .
~ Droo Box
~
~ 20 Yard Loose $ 377.06 $507.40 $ 652.86 $ 512.44 $ 451.40 -12°/a $ 357.60
30 Yard Loose 26
24%
('~ $ 565.59 $761.10 $ 677.73 0
$ 668.14 $ 677.10 1/o $ 536.40
40 Yard Loose $ 754
12 .
26.24%
~ .
$1,014.80 $ 702.60 $ 823.84 $ 902.80 10% $ 715.20
30 Yard Compacted $ 1
696
77 $1
521
90 $ 833
15 26.24%
~ ,
.
,
.
.
$ 1,350.61 $ 1,353.30 0% $ 1,071.90
% Dublin Customers Covered By Sample Rate Categories: 84% 26.26%
~-~
Livermore rates do not include the cost of disposal/recycling, which is assesed after collection. ~`
~,`
~'~
ATTACHMENT 5 ~~
~~
r {, ~~
~
RESOLUTION NO. XX - 10
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 a 26.25% adjustment to all solid-
waste collection rates; and
WHEREAS, on June 22, 2010, 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, 2010, 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 22nd day of June, 2010, by the
following vote:
AYES:
NOES:
ABSENT:
ATTACHMENT 6
f
~~ a-
ABSTAIN:
ATTEST:
Mayor
City Clerk
~ ~~~ ~~-~
~~
2010/11 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,
2010.
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 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
77.99 (Rate includes $0.05 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 $15.05 per month (Total =$ 33.04 per month)
96 Gallon Garbage Container: Minimum Cost Plus $30.10 per month (Total =$ 48.09 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 additional large item collection services for a fee of : $11.82 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 rentai and once per week collection and disposal.
32 Gallon Container: $18.75 64 Gallon Container: $34.43 96 Gallon Container: $50.08
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
~
~~~~ ~~-~
0
Size # Times Size # Times
# Yards Per Wk Base Monthly Rate # Yards Per Wk Base Monthly Rate
1 1 $80.21 4 1 $320.84
1 2 $180.38 4 2 $661.64
1 3 $280.55 4 3 $1,002.44
1 4 $380.72 4 4 $1,343.24
1 5 $480.89 4 5 $1,684.04
1 6 $581.06 4 6 $2,024.84
2 1 $160.42 6 1 $481.26
2 2 $340.80 6 2 $982.48
2 3 $521.18 6 3 $1,483.70
2 4 $701.56 6 4 $1,984.92
2 5 $881.94 6 5 $2,486.14
2 6 $1,062.32 6 6 $2,987.36
3 1 $240.63 7 1 $561.47
3 2 $501.22 7 2 $1,142.90
3 3 $761.81 7 3 $1,724.33
3 4 $1,022.40 7 4 $2,305.76
3 5 $1,282.99 7 5 $2,887.19
3 6 $1,543.58 7 6 $3,468.62
Organic material is charge d at 75% of the Commercial Service rate.
OTHER COMMERCIAL SE RVICES: Rates for addition al requested service s.
Container Push: $ 7.30
Lock & Key: $ 4.38
Excess Waste (Cu. Yd): $ 23.95 per Cubic Yard
Excess Cart Exchange: $ 7.30
Excess Bin Exchange: $ 2g.1 g
Excess Bin Cleaning: $ 36.47
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: $26.40 Per Week
Excess Per Yard if Filled Above Water Level
$104.95
Cost For Additional Dump: $76.09 Per Pick-up
$23.95 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: $22.57 Compacted: $45.11
Organic material is charged at 75% of the non-compacted or compacted rate as appropriate.
MISCELLANEOUS DROP BOX CHARGES
Relocation of Drop Box $67.49 Per Request
Weekly Drop Box Container Rental - After ist Week $26.40 Per Week
Cancel Auto Pick-up W ithout Notice $85.03 Per Event
Handy Hauler Extra Week Rental $26.40 Per Week
Standby Time $110.82 Per Hour
Rate Resolution Exhibit A
a/ a
RESOLUTION NO. XX - 10
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 2010-2011
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 22, 2010.
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 7
1
~~ ~` j' C(
~
V
PASSED, APPROVED AND ADOPTED this 22nd day of June, 2010, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
2
~~~ F ~~
~
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 $171.00 per year will
increase $44.80 for a total of $215.88 for 2010-2011. The annual assessment equates
to a monthly increase of $3.74, from $14.25 to $17.99. The Agreement with the
Company provides for annual adjustments to the rates based upon annual changes in
five separate indices 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 receive 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: a 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
3
a ~. a~
~
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
Each Single Family Residence
Each Condominium / Townhouse Unit
Each Duplex (2 Units)
Each Duplex (5 or More Units)
ANNUALFEE
$ 215.88
$ 215.88
$ 431.76
$215.88 times the
number of units
4