HomeMy WebLinkAboutItem 6.2 AVI Garbage Rate 2012-13or
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/ii � 111
DATE:
TO:
FROM:
STAFF REPORT
CITY COUNCIL
June 19, 2012
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
CITY CLERK
File #600 -30
SUBJECT: Public Hearing: Adoption of Rates for Garbage Collection, Disposal, and
Recycling Services Provided By Amador Valley Industries and Establishing the
2012 -2013 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, 2012 and establishing the Fiscal
Year 2012 -2013 refuse related property tax assessment.
FINANCIAL IMPACT:
The current cost of the minimum required residential can (32 gallon) would increase by $0.86
per month to $19.51 per month. As discussed in this report, this is collected on the Property Tax
bill as an annual assessment of $234.12. When compared to the Tri- Valley cities of Livermore,
Pleasanton, and San Ramon, the $19.51 monthly fee is 28% below the Tri - Valley average
monthly rate of $27.24. The proposed Dublin commercial rate increases vary based on the
service level selected. The proposed rate of $378.56 represents the average service level for a
four -yard bin collected once per week and is 16% below the Tri - Valley average rate of $451.76.
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; and 5) adopt the following
resolutions: a) Resolution Amending the Schedule for Service Rates for Integrated Solid Waste
Services; and b) Resolution Amending and Establishing the Collection of Minimum Residential
Garbage and Recycling Service Fees for Fiscal Year 2012 -2013.
Page 1 of 4 ITEM NO.
Submitted By"
Assistant to the City Manager
DESCRIPTION:
Reviewed By
Assistant City Manager
In December 2004, the City executed a Collection Service Agreement with Amador Valley
Industries (AVI) for service that began on July 1, 2005. In June 2010, the City Council approved
an extension of the agreement term 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, 2011. 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 2012 -2013 is estimated to
meet the compensation requirement of $9,773,782. This compensation is possible as a result of
a proposed 4.7% 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, 2012.
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 most 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 2012 -2013 is $234.12, which is collected in two
installments on the property tax bill. The proposed annual cost equates to $19.51 per month or a
$0.86 per month increase (4.62 %) over the rate levied in Fiscal Year 2011 -2012. 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
2010/11 2011/12 Proposed
2012/13
$215.88 $223.80 $234.12
Staff recommends that the City Council adopt the Resolution establishing the Fiscal Year 2012-
2013 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 debris collection as part of the
services provided by AVI. The proposed initial rates for the provision of this service are included
within the proposed schedule for Fiscal Year 2012 -2013 (Attachment 4).
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
A notice was placed in the Valley Times on June 11, 2012 and June 16, 2012, notifying the
community of the City Council's consideration of the proposed rates.
ATTACHMENTS: 1. Methodology Used For Fiscal Year 2012 -2013 Rate Adjustment
2. Proposed vs. Current Rates
3. Tri - Valley Rate Comparison
Page 3 of 4
4. Resolution Amending the
Solid Waste Services
5. Resolution Approving and
Residential Garbage and
2012 -2013
Page 4 of 4
Schedule of Service Rates for Integrated
Establishing the Collection of Minimum
Recycling Service Fees For Fiscal Year
METHODOLOGY USED FOR FISCAL YEAR 2012 -2013 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 19, 2012
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 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. 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, 2012, 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)
12/31/2011
LABOR
Labor - Teamsters Union Local 70 Contract
3.86%
VEHICLE REPLACEMENT
Transportation Equipment -Truck & Bus Bodies
1.45%
Sold Separately (wpu141301)
VEHICLE MAINTENANCE
Machinery & Equipment - Parts, Attachments
1.46%
and Accessories (wpu11440378)
ALL OTHER
Consumer Price Index - All Urban Consumers:
San Francisco - Oakland -San Jose, CA
2.97%
(cuura422sa0)
1 ATTACHMENT 1
METHODOLOGY USED FOR FISCAL YEAR 2012 -2013 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 19, 2012
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 2011. 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 2012/13 calculation.
STEP 2: RRI WEIGHTING FACTOR BASED ON RELATIONSHIP TO TOTAL COSTS
Operating Cost Category AVI $ % Total Expenses
reported (Weighting Factor)
LABOR $ 2,284,344 39.86%
VEHICLE REPLACEMENT $ 390,395 6.81%
VEHICLE MAINTENANCE $ 1,181,015 20.61%
ALL OTHER $ 1,875,430 32.72%
TOTAL $ 5,731,184 100%
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 2012/13 results:
STEP 3: RRI CALCULATION (CANNOT EXCEED 10 %)
[Index Change multiplied By Weighting Factor]
Operating Cost Category
% Index
% Total
RRI
Change @
Expenses
12/31/2010
(Weighting
Index Change
Factor)
x
Weighting Factor
LABOR
3.86%
39.86%
1.54%
VEHICLE REPLACEMENT
1.45%
6.81%
0.10%
VEHICLE MAINTENANCE
1.46%
20.61%
0.30%
ALL OTHER
2.97%
32.72%
0.97%
TOTAL
2.91%
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
2011. This is compared to the "Ending Calculated Revenue ". The Ending Calculated
Revenue is equal to the current rates multiplied by the December 2011 number of accounts
served. The adjustment reflects increases in the number of billed units served. The
methodology is relatively straight forward. The Agreement with AVI included an exhibit which
lists various service events. For example, it included the number of single family basic service
units, number of commercial bins by size, and frequency of service, etc. These are then
2 ATTACHMENT 1
METHODOLOGY USED FOR FISCAL YEAR 2012 -2013 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 19, 2012
Prepared By: Roger Bradley, Assistant to the City Manager
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 2012/2013 adjustment, the Agreement provides for the calculation to be done based
on the actual Collection census data as of January 2011 and as of December 2011. The
rates used for this comparison are the rates in effect on July 1, 2011.
The 2012/2013 calculation showed that the "Beginning Calculated Revenue ", or the revenue
collected by AVI for all services provided for that month, based on the January 2011 census
was $1,017,881 and the "Ending Calculated Revenue" based on the December 2011 census
was $1,043,283. This results in a 2012/2013 Annual Growth Factor of 2.50 %. [$1,043,283 -
$1,017,881 = $25,402; 25,402/1,017,881 = 0.0250].
Application of RRI and AG to Collection Compensation Element
The 2011/2012 Collection Compensation Element was $5,873,975. In accordance with the
Agreement, this amount is first adjusted by the Annual AG Factor [5,873,975 * (1 +.025) _
$6,020,824] and then that total is escalated by the RRI factor. [$6,020,565 1.0291 =
$6,196,030]. 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 2010, the total
recycling tons collected was 2,082.35. In 2011, AVI collected 1,875.44. This results in a
decrease of 5.14% (1,875.44 — 2,082.35 = - 206.91; - 206.91 / 2,082.35 = - .0994). The
Agreement with AVI states that negative growth factors will be set at zero. Thus, the
Commercial Recycling Growth Factor is 0.00 %, 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 (0.00 + 0.0291 = 0.0291; $2817344 * 0.0291 = $87187; $2817344 +
$87187 = $289,531). This amount then flows into the projected total compensation shown in
Section 6 of this report.
3 ATTACHMENT 1
METHODOLOGY USED FOR FISCAL YEAR 2012 -2013 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 19, 2012
Prepared By: Roger Bradley, Assistant to the City Manager
Commercial Recycling Compensation Continued
AVI Commercial Recycling Compensation for FY 2012 -2013
Year
Commercial
Recycling
RRI
Factor
Recycling Compensation Element
AVI Comp
Effective
Date
Tons
Growth
2005
1,418
Base Year
$150,000
2006
1,454
2.55%
3.60%
$159,225
2007
1,832
25.94%
2.89%
$205,130
7/1/2008
2008
2,097
14.53%
5.00%
$245,189
7/1/2009
2009
1,990
0.00%
5.74%
$259,263
7/1/2010
2010
2,082
4.65%
3.87%
$281,344
7/1/2011
2011
1,875
0.00%
2.91%
$289,531
7/1/2012
3. Methodoloav for Adiustina Rates to Reflect Chanaes In Landfill / Disoosal 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 2012/2013, the cost per ton for landfill fees will increase by $0.51 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 $0.08 per ton. The increase as provided in the disposal agreement with
Waste Management is $0.43 per ton. Therefore, the total disposal cost for 2012/2013 will be
$34.02 per ton. Of this amount, $19.22 (57% of the per ton fee) is related to regulatory fees
and $14.80 reflects the portion paid to Waste Management for landfill services.
The portion paid to Waste Management can increase only as provided in a Disposal
Agreement between the City and Waste Management. The regulatory fees are levied by
other agencies such as StopWaste.Org; County Local Enforcement Authority; California
Department of Resources Recycling and Recovery; Household Hazardous Waste Fees;
County Business License; etc. This results in an ATF Factor of 1.52 %. [2011 Rate = $33.51
/ton and 2012 Rate = $34.02 /ton. $34.02 — 33.51 = 0.51; 0.51 / 33.51 = 0.0152].
4 ATTACHMENT 1
METHODOLOGY USED FOR FISCAL YEAR 2012 -2013 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 19, 2012
Prepared By: Roger Bradley, Assistant to the City Manager
Annual Tonnage (AT) Factor
The tonnage increase for the 2012/13 adjustment is based on disposal reports for the period
January 1, 2011 — December 31, 2011 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 2011 was 23,080 tons, and in 2010, it was 23,987 tons. This results in an AT
Factor of - 3.78 %. [23,080 — 23,987 = -907; -907 / 23,987 = - 0.0378].
Application of ATF and AT Factors to Disposal Compensation Element
The Landfill Compensation Element was $803,845 in 2011. In accordance with the
Agreement, this amount is first adjusted by the Annual AT Factor [(803,845 * - 0.0378) +
803,845 = $773,460] and then that total is escalated by the ATF factor. [$773,450 * 1.0152 =
$785,216]. 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 2.50% for the 2012/13 adjustment. For the 2012/13 adjustment, the amount designated for
the Container Element was $194,981. Adjusting this amount by the AG Factor, there will be a
$4,875 increase in the calculated amount resulting in $199,856 to be recovered from the
rates in 2012/13. [$194,981 * (1 + .0250) = 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 2012/13, the Fee Compensation Element Calculation is as follows:
(6,196,030 + 289,531 + 785,216 + 199,856) _ $7,470,633 (base compensation)
$7,470,633 / (1- 23.35 %) _ $7,470,633 / (76.65 %)
$7,470,633 / 76.65% _ $9,746,423
$9,746,423 — $7,470,633 = $2,275,790
The adjusted total compensation for the Fee Element is shown in Section 6 below.
5 ATTACHMENT 1
METHODOLOGY USED FOR FISCAL YEAR 2012 -2013 GARBAGE RATE ADJUSTMENT
IN ACCORDANCE WITH AGREEMENT BETWEEN
CITY OF DUBLIN AND AMADOR VALLEY INDUSTRIES
Report Submitted To: City Council June 19, 2012
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
2012 -2013 rate adjustment process results in the need to establish rates at a level expected
to generate $9,746,423 in revenue. This amount is $412,900 more than the compensation
generated as part of the rate adjustment for Fiscal Year 2011 -2012 or the previous year.
Prior to establishing the compensation that will be generated from the rates, an adjustment is
made for grant revenues that reduce the Company's operating 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 2012/13. This will be the last year this credit will be
added to the rate structure, which is offset by the cost of bundling commercial organics
collection within the rate structure at $75,000.
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 $9,746,423. The calculation for Fiscal Year 2012 -2013 is performed using the
customer subscription figures as of December 2011.
Staff has determined that no more than a 4.7% rate increase to residential, commercial, drop
box, and other service categories will generate the required revenue. It is not possible to
exactly match the targeted annual revenue given the various subscription levels and fees.
The test calculation shows that when the grant funds and commercial organics cost (net of -
$25,000) are added to the new rates that the total projected compensation is $9,773,782. An
additional cost of $2,359 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
2011/12 rate model.
Historical Comparison of Compensation Elements 2010/2011 — 2012/2013
Compensation
Element
2010/2011
Compensation
2011/2012
Proposed
Comp
Absolute
Change
Percent
Change
2012/2013
Proposed
Comp
Absolute
Change
Percent
Change
Collection
$5,655,122
$5,873,975
$218,853
3.87%
$6,196,030
$322,055
5.48%
Commercial
Recycling
$259,263
$281,344
$22,081
8.52%
$289,531
$8,187
2.91%
Disposal
$802,007
$803,845
$1,838
0.23%
$785,216
- $18,629
-2.32%
Container
$194,981
$194,981
$0
0.00%
$199,856
$4,875
2.50%
Fee
$2,105,422
$2,179,378
$73,956
3.51%
$2,275,790
$96,412
4.42%
TOTAL
$9,016,795
$9,333,523
$316,728
3.51%
$9,746,423
$412,900
4.42%
6 ATTACHMENT 1
(Selected Service Levels Representing Most Common Subscriptions)
COMPARISON OF SELECTED RATES
Current (2011/12) vs Proposed (2012/13)
Sample rate categories represent 96% of residential customers
Commercial - Monthly Rates
1 Yard -
1 time / wk
Proposed
$94.64
$4.18
Increase over
Current
Proposed
2011/2012
Residential - Monthly Rates Rate
2012/2013
$ %
Minimum Residential (32) Gallon $18.65
$19.51
$0.86 4.61%
64 Gallon Residential $34.25
$35.83
$1.58 4.61%
Sample rate categories represent 96% of residential customers
Commercial - Monthly Rates
1 Yard -
1 time / wk
$90.46
$94.64
$4.18
4.62%
2 Yard -
1 time / wk
$180.92
$189.28
$8.36
4.62%
3 Yard -
1 time / wk
$271.38
$283.92
$12.54
4.62%
3 Yard -
2 times / wk
$565.27
$591.39
$26.12
4.62%
4 Yard -
1 Time / wk
$361.84
$378.56
$16.72
4.62%
4 Yards
- 2 times / wk
$746.19
$780.67
$34.48
4.62%
Sample rate categories represent 76% of commercial customers
Droa Box - Rates Per Service
20 Yard Loose $509.00 $532.60 $23.60 4.64%
30 Yard Loose $763.50 $798.90 $35.40 4.64%
40 Yard Loose $1,018.00 $1,065.20 $47.20 4.64%
Represents 85% of 2010 non - compacted Drop Box Subscriptions
30 Yard Compacted $1,526.40 $1,597.80 $71.40
Represents 41 % of the 2011 compacted Drop Box Subscriptions
4.68%
Handy Hauler Available To Residents $118.36 $123.83 $5.47 4.62%
Attachment 2
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RESOLUTION NO. XX -12
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * **
AMENDING THE SCHEDULE OF SERVICE RATES
FOR INTEGRATED SOLID WASTE SERVICES
WHEREAS, the City of Dublin executed a Collection Service Agreement with Amador Valley
Industries (AVI) on January 12, 2005; and
WHEREAS, the Agreement requires the City Council to adopt a rate schedule, which is
estimated to produce a specified revenue amount as identified in the Agreement; and
WHEREAS, the City Council adopted the initial rate schedule with Resolution 68 -05 at a
noticed public hearing on May 3, 2005 and the Agreement provides that the City Council is
responsible for establishing all rates; and
WHEREAS, the Agreement with AVI provides for an adjustment to the rates each July 1St in
accordance with specified formulas; and
WHEREAS, the City has calculated the required rate adjustment necessary to generate the
agreed to compensation and applied not more than a 4.7% adjustment to the residential,
commercial, roll -off, and other collection service rates; and
WHEREAS, on June 19, 2012, 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, 2012, this resolution shall
supersede all previous resolutions adopting rates for solid waste services, and the rates
adopted by this resolution shall continue from year to year.
PASSED, APPROVED AND ADOPTED this 19th day of June, 2012, by the following vote-
AYES-
NOES-
ABSENT-
ABSTAIN:
ATTEST:
City Clerk
Mayor
Page 1 of 1 ATTACHMENT 4
2012/13 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, 2012.
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 : $ 19.51 (Rate includes $0.35 retained by City for preparing tax roll / collection.)
Residents may select a larger garbage container for an additional fee which is shown below:
64 Gallon Garbage Container: Minimum Cost Plus $16.32 per month (Total = $ 35.83 per month)
96 Gallon Garbage Container: Minimum Cost Plus $32.64 per month (Total = $ 52.15 per month)
Residents may request a second garbage container which will be charged at the same rate as a first container based on the size
Second Container: requested.
Additional Large Item Collection: Residents may request additional large item collection services for a fee of : $ 12.82 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 rental and once per week collection and disposal.
32 Gallon Container: $22.13 64 Gallon Container: $40.62 96 Gallon Container: $59.09
Commercial Bin Service Rates
Rates shown on the following page are monthly rates based upon bin size and frequency of service. Rates include collection, disposal, and
bin rental.
Rate Resolution Exhibit A
Size # Times Size
# Times
Compacted: $53.26
# Yards Per Wk Base Monthly Rate # Yards
Per Wk
Base Monthly Rate
1 1 $94.64 4
1
$378.56
1 2 $212.83 4
2
$780.67
1 3 $331.02 4
3
$1,182.78
1 4 $449.21 4
4
$1,584.89
1 5 $567.40 4
5
$1,987.00
1 6 $685.59 4
6
$2,389.11
2 1 $189.28 6
1
$567.84
2 2 $402.11 6
2
$1,159.23
2 3 $614.94 6
3
$1,750.62
2 4 $827.77 6
4
$2,342.01
2 5 $1,040.60 6
5
$2,933.40
2 6 $1,253.43 6
6
$3,524.79
3 1 $283.92 7
1
$662.48
3 2 $591.39 7
2
$1,348.51
3 3 $898.86 7
3
$2,034.54
3 4 $1,206.33 7
4
$2,720.57
3 5 $1,513.80 7
5
$3,406.60
3 6 $1,821.27 7
6
$4,092.63
Organic material is charged at 50% of the Commercial Service rate.
OTHER COMMERCIAL SERVICES: Rates for additional requested services.
Container Push: $ 8.61
Lock & Key: $ 5.17
Excess Waste (Cu. Yd): $ 28.26 per Cubic Yard
Excess Cart Exchange: $ 8.61
Excess Bin Exchange: $ 34.44
Excess Bin Cleaning: $ 43.03
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:
$123.83
Additional Bin Rental Per Week: $28.62 Per Week
Cost For Additional Dump: $89.77 Per Pick -up
Excess Per Yard If Filled Above Water Level
$28.26
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: $26.63
Compacted: $53.26
Organic material is charged at 50% of the non - compacted or compacted
rate as appropriate.
MISCELLANEOUS DROP BOX CHARGES
Relocation of Drop Box
$73.18
Per Request
Weekly Drop Box Container Rental - After 1 st Week
$28.62
Per Week
Cancel Auto Pick -up Without Notice
$92.20
Per Event
Handy Hauler Extra Week Rental
$28.62
Per Week
Standby Time
$120.17
Per Hour
Rate Resolution Exhibit A
Material Type Cubic Yards Rate
Concrete & Asphalt
Clean 6 $333.70
Mixed 6 $399.45
Cardboard
Cubic Yards
Clean
20 $259.55
Clean
30 $355.39
Clean
40 $444.94
Dirt
Clean 6 $333.57
Mixed 6 $399.45
Drywall 20 $532.60
Wood
Clean 20 $259.55
Clean 30 $355.95
Clean 40 $444.94
Material Type
Cubic Yards
Rate
Mixed C &D
Mixed
15
$345.00
Mixed
20
$460.00
Mixed
30
$690.00
Mixed
40
$920.00
Metal
Metal 20 $259.55
Metal 30 $296.63
Metal 40 $370.78
Stucco
Clean 6 $333.70
Mixed 6 $399.45
C &D Debris Box Service: Costs shown are on a per pick -up basis
Rate Resolution Exhibit A
RESOLUTION NO. XX - 12
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 2012 -2013
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 19, 2012.
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
it
PASSED, APPROVED AND ADOPTED this 19th day of June, 2012, by the
following vote-
AYES-
NOES-
ABSENT-
ABSTAIN:
ATTEST:
City Clerk
Mayor
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 $223.80 per year will
increase $10.32 for a total of $234.12 for Fiscal Year 2012 -2013. The annual
assessment equates to a monthly increase of $0.86, from $18.65 to $19.51. 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
$ 234.12
Each Condominium / Townhouse Unit
$ 234.12
Each Duplex (2 Units)
$ 468.24
Each Duplex (5 or More Units)
$234.12 times the
number of units