HomeMy WebLinkAboutItem 6.2 AVI Garbage Rates
STAFF REPORT CITY CLERK
File #600-30
CITY COUNCIL
DATE:June 18, 2013
TO:
Honorable Mayor and City Councilmembers
FROM:
Joni Pattillo, City Manager
SUBJECT:
Public Hearing: Adoption of Rates for Garbage Collection, Disposal, and
Recycling Services Provided By Amador Valley Industries and Establishing the
2013-2014 Annual Assessment.
Prepared by Roger Bradley, Assistant to the City Manager
EXECUTIVE SUMMARY:
The Agreement for solid waste services between the City and Amador Valley Industries (AVI)
requires the City to adopt a rate schedule, which is estimated to produce a specified revenue
amount as identified in the Agreement. The City has also adopted an ordinance which requires
all parcels in the City to subscribe to weekly minimum garbage service. For residential
properties that are serviced with individual containers, the City collects the annual cost of
minimum service with the property tax bill. The City Council will consider adopting two separate
resolutions establishing the garbage rates effective July 1, 2013 and establishing the Fiscal
Year 2013-2014 refuse related property tax assessment.
FINANCIAL IMPACT:
The current cost of the minimum required residential can (32 gallon) would increase by $0.80
per month to $20.31 per month. As discussed in this report, this is collected on the Property Tax
bill as an annual assessment of $243.72. When compared to the Tri-Valley cities of Livermore,
Pleasanton, and San Ramon, the $20.31 monthly fee is 27% below the Tri-Valley average
monthly rate of $28.00. The proposed Dublin commercial rate increases vary based on the
service level selected. The proposed rate of $394.16 represents the average service level for a
four-yard bin collected once per week and is 14% below the Tri-Valley average rate of $460.33.
RECOMMENDATION:
Staff recommends that the City Council conduct the public hearing, deliberate, adopt
Resolution
Amending the Schedule for Service Rates for Integrated Solid Waste Services; and
Resolution
adopt Amending and Establishing the Collection of Minimum Residential Garbage
and Recycling Service Fees for Fiscal Year 2013-2014.
ITEM NO. 6.2
Page 1 of 4
Submitted By Reviewed By
Assistant to the City Manager Assistant City Manager
DESCRIPTION:
In December 2004, the City executed a Collection Service Agreement with Amador Valley
Industries (AVI) for service that began July 1, 2005. In June 2010, the City Council approved an
extension of the agreement term, which will continue through June 30, 2020. The Agreement
between the City and AVI requires the City to adopt a rate schedule, which is estimated to
produce a specified revenue amount as identified in the Agreement. The Agreement provides
for an annual adjustment to the total revenue based on economic indices applied to the base
cost that was part of AVI’s original proposal. The adjustment formula also factors in growth in
the number of customers and disposal tonnage.
The City has also adopted an ordinance which requires all parcels in the City to subscribe to
weekly minimum garbage service. For residential properties that are serviced with individual
containers, the City collects the annual cost of minimum service with the property tax bill. This
minimum service includes: weekly curbside collection of a 32 gallon garbage container; up to
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 AVI for the incremental rate difference. The
City pays AVI for the service cost of minimum residential service with monies collected from the
property tax bill.
GARBAGE RATE CALCULATION
Garbage Rate Background
The current garbage rates became effective July 1, 2012. The Agreement with AVI provides a
process for addressing the compensation generated from all rate classes on an annual basis.
The Agreement establishes a total annual revenue requirement for AVI with the City retaining
responsibility for establishing the rates for all categories. The Agreement contains a provision
that rates must be reasonably forecasted to provide AVI with an appropriate level of
compensation based on a formula detailed within the Agreement. The forecasting methodology
compares customer counts between the two most recent calendar years to calculate revenue
generation based on the level of services provided multiplied by the appropriate rates. Rates are
adjusted as appropriate across all service sectors to meet the calculated revenue requirement
as set forth by the rate model.
As required in the Agreement, the City has provided AVI with information showing the rate
calculations and assumptions. Section 5.13.1 states “…the final decision of the rate structure
rests solely with the City.” The proposed rate structure for Fiscal Year 2013-2014 is estimated to
meet the compensation requirement of $9,950,777. This compensation is possible as a result of
a proposed 4.2% increase to the residential, commercial, drop box, and other service
categories. A detailed description of the methodology required by the Agreement is included as
Attachment 1.
Page 2 of 4
Detailed Comparison of Current and Proposed Rates
Attachment 2 compares the proposed rates to the current rates for service levels that represent
a majority of the subscribers in the City. The proposed rates would be effective July 1, 2013.
Competitiveness of Dublin Rates with Neighboring Agencies
As shown in Attachment 3, the proposed City of Dublin rates remain very competitive compared
to rates charged for similar services in surrounding communities. In all cases, Dublin’s services
are at least comparable, and are often better than the survey cities. For example, Pleasanton
does not offer any bulky waste pick-ups, and Livermore and San Ramon charge extra for many
items, such as electronic waste and appliances, which AVI will pick up 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 nearly 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 2013-2014 is $243.72, which is collected in two
installments on the property tax bill. The proposed annual cost equates to $20.31 per month or a
$0.80 per month increase (4.12%) over the rate levied in Fiscal Year 2012-2013. This base rate
includes $0.35 per month, which is collected for the purpose of funding the cost associated with
collection of the property tax bill. These funds are not paid to AVI, but are retained by the City to
offset the administrative cost in preparing the tax roll. In addition, the cost of collection and
delinquencies for the basic service are expected to be covered from the following sources: prior
year fund balance; penalties and prior year taxes collected by the County Tax Collector; and
interest on funds held prior to payment to the Company.
Historical Annual Fee for Minimum Garbage Service Collected with Property Tax Bill
Proposed
2011/12 2012/13
2013/14
$223.80 $234.12 $243.72
Staff recommends that the City Council adopt the Resolution establishing the Fiscal Year 2013-
2014 solid-waste-collection rates (Attachment 4) and adopt the Resolution establishing the
annual assessment for the required minimum level of garbage service (Attachment 5).
Construction & Demolition Debris Collection
As directed by the City Council at the June 5, 2012 City Council meeting, the Agreement with
AVI has been amended to include construction and demolition (C&D) debris collection as part of
the services provided by AVI. The proposed initial rates for the provision of this service included
discounted franchise and administrative fees for AVI during the first year of the agreement.
Continuing on from the first year, these fees paid for by AVI are brought to an equivalent level
with the fees paid for by AVI as part of regular collection services. The resultant increase in C&D
service rates for all service categories is approximately 14.7%.
StopWaste Benchmark Information Fee
Effective for Fiscal Year 2013-2014, the Alameda County Waste Management Authority
(StopWaste) has adopted and is asserting that all jurisdictions within the County must collect a
Benchmark Information Fee, which is designed to fund StopWaste’s development of
comparative programmatic solid waste data for County residents. At the current time, the
Page 3 of 4
Benchmark Information Fee is not included within the solid waste rates as proposed. Staff will
present the fee to the City Council for consideration of its inclusion in the rate in July.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A notice was placed in the Valley Times on June 8, 2013 and June 15, 2013, notifying the
community of the City Council's consideration of the proposed rates.
ATTACHMENTS: 1. Methodology Used For Fiscal Year 2013-2014 Rate Adjustment
2. Selected Comparison of Proposed vs. Current Rates
3. Tri-Valley Rate Comparison
4. Resolution Amending the Schedule of Service Rates for Integrated
Solid Waste Services
5. Resolution Approving and Establishing the Collection of Minimum
Residential Garbage and Recycling Service Fees For Fiscal Year
2013-2014
Page 4 of 4
METHODOLOGY USED FOR FISCAL YEAR 2013-2014 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 18, 2013
Prepared By: Roger Bradley, Assistant to the City Manager
How Adjustment Factors Are Applied to Elements That Comprise Total Compensation
The Agreement with AVI, as structured with the Company, initially provided a lump sum figure
to provide all services in the Agreement. The initial rates were established to generate the
annual revenue based on the initial level of customers. As new customers are added, the
Company also receives revenue for those services. In accordance with section 5.14 of the
Agreement, the Company retains any compensation in excess of what is calculated. If actual
compensation is less than calculated, the Company is not entitled to any additional revenues.
Annually, there is a process established where a revised total compensation figure is
developed. This calculation takes into consideration changes in the number of accounts
serviced as well as adjustments to four elements. The Agreement divides compensation
provided to AVI into the following five Elements:
1. Collection Compensation Element
2. Commercial Recycling Incentive Element
3. Disposal Compensation Element
4. Container Compensation Element
5. Fee Compensation Element
1. Methodology for Adjusting Rates to Reflect Changes In Collection Costs
The Agreement with AVI contains a very detailed methodology for incorporating economic
changes into the annual rate adjustments. Specifically, two calculations are made as part of a
larger formula. The first is the Refuse Rate Index Adjustment (RRI) and the second an
Annual Growth (AG) factor. On July 1, 2013, the agreement provides for an annual
adjustment to Collection Compensation. The Agreement also details the time period to be
used in making the annual adjustments.
Steps Required to Calculate the RRI Factor
The weighted RRI factor cannot exceed 10%, and it is calculated based on the weighted
percentage change in specific indices multiplied by the costs associated with key company
expenses. The following tables provide a summary description of how these factors are
interrelated:
STEP 1: INDICES USED IN RRI CALCULATION
Operating Cost Category Index Used % Index Change @
(To Produce A Weighted Adjustment) 12/31/2012
LABOR Labor - Teamsters Union Local 70 Contract 1.67%
VEHICLE REPLACEMENT Transportation Equipment-Truck & Bus Bodies
1.79%
Sold Separately (wpu141301)
VEHICLE MAINTENANCE Machinery & Equipment-Parts, Attachments
1.55%
and Accessories (wpu11440378)
ALL OTHER Consumer Price Index - All Urban Consumers:
San Francisco-Oakland-San Jose, CA 2.11%
(cuura422sa0)
ATTACHMENT 1
1
METHODOLOGY USED FOR FISCAL YEAR 2013-2014 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 18, 2013
Prepared By: Roger Bradley, Assistant to the City Manager
The Company provides the City with their expenditures in each of these areas over Calendar
Year 2012. 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 2013/14 calculation.
STEP 2: RRI WEIGHTING FACTOR BASED ON RELATIONSHIP TO TOTAL COSTS
Operating Cost Category AVI $ % Total Expenses
reported (Weighting Factor)
LABOR $2,443,162 41.57%
VEHICLE REPLACEMENT $395,895 6.74%
VEHICLE MAINTENANCE $1,088,724 18.52%
ALL OTHER $1,949,835 33.17%
TOTAL $5,877,616 100%
As mentioned earlier, these factors are applied on a weighted basis. The index factor for
each cost category is multiplied by the weighting factor. The result will produce the RRI,
which per the agreement cannot exceed 10%. The following table shows the 20132/14
results:
STEP 3: RRI CALCULATION (CANNOT EXCEED 10%)
[Index Change multiplied By Weighting Factor]
Operating Cost Category % Index % Total RRI
Change @ Expenses
Index Change
12/31/2012 (Weighting
x
Factor)
Weighting Factor
LABOR 1.67% 41.57% 0.69%
VEHICLE REPLACEMENT 1.79% 6.74% 0.12%
VEHICLE MAINTENANCE 1.55% 18.52% 0.29%
ALL OTHER 2.11% 33.17% 0.70%
TOTAL 1.80%
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
2012. This is compared to the “Ending Calculated Revenue”. The Ending Calculated
Revenue is equal to the current rates multiplied by the December 2012 number of accounts
served. The adjustment reflects increases in the number of billed units served. The
methodology is relatively straight forward. The Agreement with AVI included an exhibit which
lists various service events. For example, it included the number of single family basic service
ATTACHMENT 1
2
METHODOLOGY USED FOR FISCAL YEAR 2013-2014 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 18, 2013
Prepared By: Roger Bradley, Assistant to the City Manager
units, number of commercial bins by size, and frequency of service, etc. These are then
multiplied by the appropriate monthly rate. Residential service is a bundled rate for recycling
and garbage and, therefore, recycling is not included in the calculation. Moreover, each
single family unit is calculated at the Basic Rate regardless of whether they may have
multiple recycling or green waste bins. For the purpose of calculating growth, commercial
recycling bins are considered to have the same rate as commercial garbage bins with the
increase in bins from year to year factored within this formula.
For the 2013/2014 adjustment, the Agreement provides for the calculation to be done based
on the actual Collection census data as of January 2012 and as of December 2012. The
rates used for this comparison are the rates in effect on July 1, 2012.
The 2013/2014 calculation showed that the “Beginning Calculated Revenue”, or the revenue
collected by AVI for all services provided for that month, based on the January 2012 census
was $1,099,810 and the “Ending Calculated Revenue” based on the December 2012 census
was $1,085,463. This results in a 2013/2014 Annual Growth Factor of -1.30%. [$1,085,463 -
$1,099,810 = -$14,347; -$14,347/$1,099,810 = 0.0130]. As the Agreement does not allow for
negative values, the Annual Growth Factors is set to 0.0000.
Application of RRI and AG to Collection Compensation Element
The 2012/2013 Collection Compensation Element was $6,196,030. In accordance with the
Agreement, this amount is first adjusted by the Annual AG Factor [6,196,030 * (1+.0000) =
$6,196,030] and then that total is escalated by the RRI factor. [$6,196,030 * 1.018 =
$6,307,559]. This amount then flows into the projected total compensation shown in Section
6 of this report.
2. Methodology for Adjusting Commercial Recycling 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 2011, the total
recycling tons collected was 1,875.44. In 2012, AVI collected 2,022.95. This results in an
increase of 7.87% (2,022.95 – 1,875.44 = 147.51; 147.51 / 1,875.44 = 0.0787). Thus, the
Commercial Recycling Growth Factor is 7.87%, which is added to the RRI factor with the
combination of the factors used to inflate the previous year’s Commercial Recycling Program
compensation amount (0.0787 + 0.0180 = 0.0967; $289,531 * 0.0967 = $27,984; $289,531 +
$27,984 = $317,515). This amount then flows into the projected total compensation shown in
Section 6 of this report.
ATTACHMENT 1
3
METHODOLOGY USED FOR FISCAL YEAR 2013-2014 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 18, 2013
Prepared By: Roger Bradley, Assistant to the City Manager
Commercial Recycling Compensation Continued
AVI Commercial Recycling Compensation for FY 2012-2013
Recycling Compensation Element
Commercial
RRI
Recycling
Year
Effective
Factor
AVI Comp
Date
Tons Growth
2005 1418 Base Year $150,000
2006 1454 2.55% 3.60% $159,225
2007 1832 25.94% 2.89% $205,130 7/1/2008
2008 2097 14.53% 5.00% $245,189 7/1/2009
2009 1990 0.00% 5.74% $259,263 7/1/2010
2010 2082 4.65% 3.87% $281,344 7/1/2011
2011 1,875 0.00% 2.91% $289,531 7/1/2012
2012 2023 7.97% 1.80% $317,515 7/1/2013
3. Methodology for Adjusting Rates to Reflect Changes In Landfill / Disposal Costs
Landfill disposal costs are established under a separate agreement between the City of
Dublin and Waste Management, Inc. AVI is required to use the disposal facility designated by
the City. AVI makes the payments for disposal costs and pays the price negotiated by the
City under the separate agreement with Waste Management. Since these are expenses
incurred by AVI, these costs must also be considered in setting the rates. The landfill
component has the following two factors that impact the rates: 1) Tip Fee Factor, and 2)
Annual Tonnage Factor.
Approved Tip Fee(ATF) Factor
In 2013/2014, the cost per ton for landfill fees will increase by $0.48 per ton. The increase
comes from two separate categories: increases in governmental regulatory fees and
increases as provided in the Disposal Agreement with Waste Management. The increase in
regulatory fees is $0.04 per ton. The increase as provided in the disposal agreement with
Waste Management is $0.44 per ton. Therefore, the total disposal cost for 2013/2014 will be
$34.50 per ton. Of this amount, $19.26 (56% of the per ton fee) is related to regulatory fees
and $15.24 reflects the portion paid to Waste Management for landfill services.
The portion paid to Waste Management can increase only as provided in a Disposal
Agreement between the City and Waste Management. The regulatory fees are levied by
other agencies such as StopWaste.Org; County Local Enforcement Authority; California
Department of Resources Recycling and Recovery; Household Hazardous Waste Fees;
County Business License; etc. This results in an ATF Factor of 1.41%. [2012 Rate = $34.02
/ton and 2013 Rate = $34.50 /ton. $34.50 – 34.02 = 0.48; 0.48 / 34.02 = 0.0141].
ATTACHMENT 1
4
METHODOLOGY USED FOR FISCAL YEAR 2013-2014 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 18, 2013
Prepared By: Roger Bradley, Assistant to the City Manager
Annual Tonnage (AT) Factor
The tonnage increase for the 2013/14 adjustment is based on disposal reports for the period
January 1, 2012 – December 31, 2012 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 2012 was 24,326 tons, and in 2011, it was 23,080 tons. This results in an AT
Factor of 5.40%. [24,326 – 23,080 = 1,246; 1,246 / 23,080 = 0.0540].
Application of ATF and AT Factors to Disposal Compensation Element
The Landfill Compensation Element was $785,216 in 2012. In accordance with the
Agreement, this amount is first adjusted by the Annual AT Factor [($785,216 * 0.0540) +
$785,216 = $827,618] and then that total is escalated by the ATF factor. [$827,618 * 1.0141
= $839,287]. This amount then flows into the projected total compensation shown in Section
6 of this report.
4. Methodology Addressing 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 0.000% for the 2013/14 adjustment. For the 2012/13 adjustment, the amount designated
for the Container Element was $199,856. Adjusting this amount by the AG Factor, there will
be a $0 increase in the calculated amount resulting in $199,856 to be recovered from the
rates in 2013/14. [$199,856 * (1 + .0000) = 199,856].
5. Methodology Addressing Fee Compensation Element
As part of the Agreement with the City of Dublin, AVI is required to remit franchise taxes and
certain fees to the City of Dublin based on a percentage of its revenue. Therefore, as the
company rates go up, the Fee Element must also be adjusted in order to recognize the fees
to be paid on the new revenue.
The Fee Compensation Element shall equal:
1. (Collection + Commercial Recycling Element + Disposal + Container Elements) =
“base compensation”
2. “base compensation” is divided by (one (1) minus the “Current Fee Percentage”)
[Where the “Current Fee Percentage” = 23.35%]
3. subtract “base compensation” from the obtained value
For 2013/14, the Fee Compensation Element Calculation is as follows:
(6,307,559 + 317,515 + 839,287 + 199,856) = $7,664,217 (base compensation)
$7,664,217 / (1- 23.35%) = $7,470,633 / (76.65%)
$7,470,633 / 76.65% = $9,998,978
$9,998,978 – $7,664,217 = $2,334,761
The adjusted total compensation for the Fee Element is shown in Section 6 below.
ATTACHMENT 1
5
METHODOLOGY USED FOR FISCAL YEAR 2013-2014 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 18, 2013
Prepared By: Roger Bradley, Assistant to the City Manager
6. City Process of Developing Rates Projected to Meet Total Compensation
As discussed above, certain adjustment factors are applied to each area. The starting point is
the base compensation from the previous agreement year as required under the Agreement.
The adjustment methodology is shown in the table below. As the table shows, the Fiscal Year
2013-2014 rate adjustment process results in the need to establish rates at a level expected
to generate $9,998,978 in revenue. This amount is $252,555 more than the compensation
generated as part of the rate adjustment for Fiscal Year 2012-2013 or the previous year.
Prior to establishing the compensation that will be generated from the rates, an adjustment is
made for grant revenues or other agreed upon amounts reducing operating costs. The
amount of revenue required from the rates is partially offset by one item: a $48,875 agreed
upon amount to reduce the cost of collection services for the Dublin Unified School District;
therefore, $48,875 is credited against required revenue in 2013/14.
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 $9,998,978. The calculation for Fiscal Year 2013-2014 is performed using the
customer subscription figures as of December 2012.
Staff has determined that no more than a 4.2% rate increase to residential, commercial, drop
box, and other service categories will generate the required revenue. It is not possible to
exactly match the targeted annual revenue given the various subscription levels and fees.
The test calculation shows that when the grant funds and agreed upon cost reductions are
added to the new rates that the total projected compensation is $9,950,771. An additional
cost of $668 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 2012/13 rate
model.
Historical Comparison of Compensation Elements 2011/2012 – 2013/2014
Compensation 2011/2012 2012/2013 Absolute Percent 2013/2014 Absolute Percent
Element Proposed Proposed Change Change Proposed Change Change
Comp Comp Comp
Collection $5,873,975 $6,196,030 $322,055 5.48% $6,307,559 $111,529 1.80%
Commercial Recycling $281,344 $289,531 $8,187 2.91% $317,515 $27,984 9.67%
Disposal $803,845 $785,216 -$18,629 -2.32% $839,287 $54,071 6.89%
Container $194,981 $199,856 $4,875 2.50% $199,856 $0 0.00%
Fee $2,179,378 $2,275,790 $96,412 4.42% $7,664,217 $58,971 2.59%
TOTAL $9,333,523 $9,746,423 $412,900 4.42% $9,998,978 $252,555 2.59%
ATTACHMENT 1
6
(Selected Service Levels Representing Most Common Subscriptions
COMPARISON OF SELECTED RATES
Current (2012/13) vs Proposed (2013/14)
Proposed
Increase over
Current Proposed 2013/2014
Residential -Monthly Rates Rate 2013/2014 $ %
$19.51
Minimum Residential (32) Gallon $20.31 $0.80 4.10%
$35.83
64 Gallon Residential $37.31 $1.48 4.13%
Sample rate categories represent 98% of residential customers
Commercial -Monthly Rates
$94.64
1 Yard - 1 time / wk $98.54 $3.90 4.12%
$189.28
2 Yard - 1 time / wk $197.08 $7.80 4.12%
$283.92
3 Yard - 1 time / wk $295.62 $11.70 4.12%
$591.39
3 Yard - 2 times / wk $615.76 $24.37 4.12%
$378.56
4 Yard - 1 Time / wk $394.16 $15.60 4.12%
$780.67
4 Yards - 2 times / wk $812.84 $32.17 4.12%
Sample rate categories represent 78% of commercial customers
Drop Box - Rates Per Service
$532.60
20 Yard Loose $554.60 $22.00 4.13%
$798.90
30 Yard Loose $831.90 $33.00 4.13%
$1,065.20
40 Yard Loose $1,109.20 $44.00 4.13%
Represents 70% of non-compacted Drop Box Subscriptions
$1,597.80
30 Yard Compacted $1,663.80 $66.00 4.13%
Represents 38% of the 2011 compacted Drop Box Subscriptions
$123.83
Handy Hauler Available To Residents $128.93 $5.10 4.12%
Attachment 2
ATTACHMENT 3 - RATE COMPARISON
2013 Garbage Rate Comparison Survey (Prepared June 7, 2013)
Comparison With Proposed Rates
Proposed
Dublin% Proposed Current % Increase
Residential LivermorePleasantonSan RamonAverageBasic RateFrom AvgRateover Pr
1 Can Residential (32-35 Gallon)$ 30.5927.51$ 25.89$ 28.00$ 20.31$ -27.46%19.51$ 4.10%
1 Can Residential (64-70 Gallon)$ n/a44.9553.34$ 49.15$ 37.31$ -24.08%35.83$ 4.13%
1 Can Residential (90-96 Gallon)$ 36.3086.21$ 71.82$ 64.78$ 54.30$ -16.17%52.15$ 4.12%
% Dublin Customers Covered By Sample Rate Categories: 100%
Residential Notes:
Dublin: Basic rate includes 32-gallon garbage can (weekly pick-ucycling can;
lager size and/or additional organic and recycling carts availabte clean-ups per
year including items such as electronic waste, household batteri
Livermore: Basic rate includes 32-gallon garbage can (weekly pi
Weekly 96-gallon curbside recycling can .
San Ramon: Basic rate includes 32-gallon garbage can (weekly pic
Weekly 64-gallon curbside recycling can, and 3 special clean-ups
Pleasanton- effective October 2009: 32 Gallon Service includes 3lon recycling cart.
96 Gallon service inlcudes a 96 gallon trash cart, 64 gallon gces have weekly pick up.
Residents still have the option to drop off recyclables at the transfer statdeded that the recyclabes weigh 75 lbs or more.
no special curbside clean-ups .
3 CityProposed% Proposed Current % Increase
Commercial LivermorePleasantonSan RamonAverageDublinFrom AvgRateover Prior
1 Yard - 1 time / wk116.72$ $145.51 118.76$ 127.00$ 98.54$ -22.41%94.64$ 4.13%
2 Yard - 1 time / wk233.43$ $290.82 220.54$ 248.26$ 197.08$ -20.62%189.28$ 4.13%
3 Yard - 1 time / wk350.16$ $415.54 305.27$ 356.99$ 295.62$ -17.19%283.92$ 4.13%
3 Yard - 2 times / wk729.44$ $768.49 610.58$ 702.84$ 615.76$ -12.39%591.39$ 4.13%
4 Yard - 1 Time / wk466.98$ $541.00 373.01$ 460.33$ 394.16$ -14.37%378.56$ 4.13%
4 Yards - 2 times / wk972.59$ $1,011.60 746.04$ 910.08$ 812.84$ -10.68%780.67$ 4.13%
% Dublin Customers Covered By Sample Rate Categories: 76%
Dublin's rates include free commercial recycling
San Ramon's rate does not include the cost of commercial recycli
Livermore charges for recycling at 35% of the regular commerical
Drop Box
20 Yard Loose485.73$ $543.00 693.23$ 573.99$ 554.60$ -3.38%532.60$ 4.14%
30 Yard Loose728.59$ $814.50 719.69$ 754.26$ 831.90$ 10.29%798.90$ 4.14%
40 Yard Loose971.46$ $1,086.00 746.13$ 934.53$ 1,109.20$ 18.69%1,065.20$ 4.14%
30 Yard Compacted2,185.78$ $1,629.30 885.00$ 1,566.69$ 1,663.80$ 6.20%1,597.80$ 4.14%
% Dublin Customers Covered By Sample Rate Categories: 85%
Livermore rates do not include the cost of disposal/processing, which is assesed after collection.
Every effort has been made to assure the accuracy of the informaur understanding of other agency rates.
ATTACHMENT 3
RESOLUTION NO. XX -13
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 wit
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 iden
Agreement; and
WHEREAS,the City Council adopted the initial rate schedule with Resoluti
05 at a noticed public hearing on May 3, 2005 and the Agreement
Council is responsible for establishing all rates; and
WHEREAS, the Agreement with AVI provides for an adjustment to the rates e
st
July 1
in accordance with specified formulas; and
WHEREAS, the City has calculated the required rate adjustment necessary t
generate the agreed to compensation and applied not more than a4
the residential, commercial,roll-off, and othercollection servic
of construction and demolition debris services, which adjustment is not more than
14.7% ; and
WHEREAS, on June 18, 2013, the City Council conducted a noticed public
hearing prior to the adoptionof 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, mark
reference made a part hereof.
BE IT FURTHER RESOLVED that, while AVI may not charge a rate for these
services in excess of the established rates, nothing shall prohi
rate less than the established amount.
BE IT FURTHER RESOLVED that, upon the effective date, July 1, 2013, this
resolution shall supersede all previous resolutions adopting rat
services, and the rates adopted by this resolution shall continu
PASSED, APPROVED AND ADOPTED this 18thday of June, 2013, by the
following vote:
ATTACHMENT 4
1
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
2
2013/14 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 adoptiof these fees will affect all parcel owners. Rates are effective July 1, 2013.
Basis of Fees
The City has negotiated a multi-year agreement with Amador Valley Industries, Inc. The Company may request a ased upon a formula
which includes: changes in the Refuse Rate Index; Increased Reguatory 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 ServiCompactor.
RESIDENTIAL RATES
: Applies separately to each single family unit as well as each unit within a duplex or other attached
Company Minimum Residential Collection Rate
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
.
(Rate includes $0.35 retained by City for preparing tax roll / c
Minimum Monthly Rate :20.31$
Residents may select a larger garbage container for an additional fee which is shown below:
Garbage Container:
64 Gallon
Minimum Cost Plus $17.00per month (Total = 37.31$ per month)
Garbage Container:
96 Gallon
Minimum Cost Plus $33.99per month (Total = 54.30$ per month)
Residents may request a second garbage container which will be cat the same rate as a first container based on the size
requested.
Second Container:
Residents may request additional large item collection services for a fee of : $ 13.35 per Cubic Yard
Additional Large Item Collection:
COMMERCIAL AND MULTI-FAMILY BIN SERVICES (FRONT-END-LOADER)
: Offered at locations unable to accommodate a commercial bin or
Commercial Can Service
Monthly rate includes bin rental and once per week collection and disposal.
Container: Container: Container:
32 Gallon64 Gallon96 Gallon
$23.04$42.29$61.52
Commercial Bin Service Rates
Rates shown on the following page are monthly rates based upon bsize and frequency of service. Rates include collection, disposal, and
bin rental.
Rate Resolution Exhibit A
Size# TimesSize# Times
Base Monthly RateBase Monthly Rate
# YardsPer Wk# YardsPer Wk
1141$98.54$394.16
$221.60$812.84
1242
1343$344.66$1,231.52
$467.72$1,650.20
1444
1545$590.78$2,068.88
1646$713.84$2,487.56
2161$197.08$591.24
2262$418.68$1,207.00
2363$640.28$1,822.76
2464$861.88$2,438.52
2565$1,083.48$3,054.28
2666$1,305.08$3,670.04
3171$295.62$689.78
3272$615.76$1,404.08
3373$935.90$2,118.38
3474$1,256.04$2,832.68
3575$1,576.18$3,546.98
3676$1,896.32$4,261.28
is charged at 50% of the Commercial Service rate.
Organic material
Rates for additional requested services.
OTHER COMMERCIAL SERVICES:
$ 8.96
Container Push:
$ 5.38
Lock & Key:
$ per Cubic Yard29.42
Excess Waste (Cu. Yd):
$ 8.96
Excess Cart Exchange:
$ 35.86
Excess Bin Exchange:
$ 44.80
Excess Bin Cleaning:
: Rates for small compactors serviced as a commercial account on
SMALL COMPACTOR SERVICE
rate of two times the stated rate above for loose garbage.
- One-time placement and collection of a 4
HANDY HAULER:
cubic yard bin, including one week container rental filled no hi
than water level:
$128.93
Per WeekPer Pick-up
Additional Bin Rental Per Week:$29.80Cost For Additional Dump:$93.47
Excess Per Yard If Filled Above Water Level$29.42Per Cubic Yard
: Cost shown is on a per pick-up basis and is based upon the load not exceeding water level (Excess is charged the
DROP BOX / COMPACTOR RATES
same rate). Additional Miscellaneous charges may also apply.
Rate Per Cubic Yard: $27.73Compacted:$55.46Non-Compacted:
is charged at 50% of the non-compacted or compacted rate as appropriate.
Organic material
MISCELLANEOUS DROP BOX CHARGES
Relocation of Drop BoxPer Request
$76.20
Weekly Drop Box Container Rental - After 1st WeekPer Week
$29.80
Cancel Auto Pick-up Without NoticePer Event
$96.00
Handy Hauler Extra Week Rental Per Week
$29.80
Standby TimePer Hour
$125.12
Rate Resolution Exhibit A
CONSTRUCTION & DEMOLITION (C&D) DEBRIS BOX SERVICES
Costs shown are on a per pick-up basis
C&D Debris Box Service:
Material TypeMaterial Type
Cubic YardsRateCubic YardsRate
Concrete & AsphaltMixed C&D
Clean6$382.58Mixed4 (1/2 Full)$50.06
Mixed6$457.96Mixed4$100.12
Mixed6 (1/2 Full)$75.09
Mixed6$150.18
Cardboard
Clean20$255.00Mixed7 (1/2 Full)$87.61
Clean30$382.50Mixed7$175.21
Clean40$510.00Mixed15$395.40
Mixed20$527.20
Mixed30$790.80
Dirt
Clean6$382.43Mixed40$1,054.40
Mixed6$457.96
Metal
Metal20$297.56
Drywall
Clean20$610.61Metal30$340.08
Metal40$425.09
Wood
Clean20$254.98
Stucco
Clean30$382.46Clean6$382.58
Clean40$509.95Mixed6$457.96
Rate Resolution Exhibit A
RESOLUTION NO. XX - 13
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 2013-2014
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 18, 2013.
NOW, THEREFORE, BE IT RESOLVED
that, the City Council of the City of
Dublin does hereby approve and establish the collection of minimum residential
services fees by the City on the property tax bill as shown in Exhibit A, which is attached
hereto and hereby incorporated by reference.
BE IT FURTHER RESOLVED
that City Staff are hereby authorized to undertake
all administrative tasks to implement the assessments, including, but not limited to an
agreement with Alameda County for collection, which may provide payment to Alameda
County of its reasonable costs of collection not to exceed 1.7% of the total amount
levied.
ATTACHMENT 5
1
PASSED, APPROVED AND ADOPTED
this 18th day of June, 2013, by the
following vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________
Mayor
ATTEST
:
_________________________________
City Clerk
2
City of Dublin
RESIDENTIAL MINIMUM GARBAGE / RECYCLING SERVICES
(Collected With Residential Property Tax Bills)
Basis of Fees
The City has negotiated a multi-year agreement with Amador Valley Industries (AVI)
requiring a rate adjustment to the residential minimum garbage/recycling services
collected with the property tax bills. The current annual fee of $234.12 per year will
increase $9.60 for a total of $243.72 for Fiscal Year 2013-2014. The annual assessment
equates to a monthly increase of $0.80, from $19.51 to $20.31. The Agreement with the
Company provides for annual adjustments to the rates based upon annual changes in
five separate indices, four of which are maintained by the Bureau of Labor Statistics
(Refuse Rate Index), plus pass-through disposal costs. The five indices account for cost
changes in the following categories: labor; fuel and oil; vehicle replacement; vehicle
maintenance; and all other costs.
In order to determine the fee, the City estimates the total revenue required to pay the
Garbage Company for Minimum Service to all residential units that are eligible to use
the service, according to the terms of the agreement with AVI. The specific factors
considered in this calculation include the following components: the residential rate for
Minimum Service; estimated number of housing units affected by the fee; costs
associated with the collection of the fee as part of the Property Tax Bill; estimated
delinquencies; estimated revenues from late payments and interest earnings; and funds
available from collections in a prior year.
Affected Parcels
Chapter 5.32 of the Dublin Municipal Code requires the protection of the health, safety,
and welfare of the community by requiring that all parcels obtain minimum weekly
garbage service. Residential housing units are billed for the cost of Minimum Garbage
Service, which is included with the annual property tax bill. This fee only applies to
residential units which have individual garbage containers and are not serviced by
central bins. This does include duplexes and other attached housing types, which
receive individual service.
Households subject to this fee, which only 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: one 32 gallon garbage
container; up to two 96 gallon organic waste carts; up to two 96 gallon recycling carts;
used oil and filters; an annual household hazardous waste drop off event; and three on-
call bulky waste pick-ups per year.
Exhibit A
3
Amount of the Fee
The annual amount of the assessment includes the cost of collection as well as the cost
of services over the entire year. The City makes the payment to Amador Valley
Industries based upon the current rate allowed for Minimum Residential Service.
TYPE OF HOUSING UNIT ANNUAL FEE
Each Single Family Residence $ 243.72
Each Condominium / Townhouse Unit $ 243.72
Each Duplex (2 Units) $ 487.74
$243.72 times the
Each Duplex (5 or More Units)
number of units
4