HomeMy WebLinkAbout6.1 GarbageRatesAdjusted CITY CLERK
# 810-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 5, 2001
SUBJECT:
Public Hearing: Adoption of Adjustment of Rates for Garbage Collection,
Disposal, and Recycling Services Provided By Livermore Dublin Disposal
Prepared by: Jason Behrmann, Administrative Analyst
EXHIBITS ATTACHED:
Rate Comparison
Proposed vs. Current Rates
Resolution Adopting Rates
RECOMMENDATION:
1. Open the Public Hearing
2. Receive the Staff Report and public testimony
3, Close the public hearing and deliberate
4. Adopt Resolution
FINANCIAL STATEMENT: The amount of the proposed rate increase varies depending on the type
of service received. There is no proposed increase for residential curbside customers. However it is proposed
that the rates for commercial and drop box customers increase by approximately 6.25% and 8.05%
respectively. The proposed rates will be effective July 1, 2001.
DESCRIPTION:
The current garbage rates became effective July 1, 2000. In accordance with the Agreement with Livermore
Dublin Disposal (LDD), the adopted rates were scheduled to be reviewed for a rate adjustment July 1,2001.
The amount of the allowed adjustment was calculated in accordance with a specific formula·
Agreement with Livermore Dublin Disposal
The agreement between the City of Dublin and Livermore Dublin Disposal requires the City to adopt a rate
schedule, which is estimated to produce a specified revenue amount. The target revenue amount is
determined in accordance with a specific schedule and formula. The annual adjustment takes into account (a)
Changes in the Consumer Price Index; (b) Changes in Landfill Regulatory Fees; (c) changes in number of
subscribers and (d) an Adjustment for the Number of Tons Placed in the Landfill. After incorporating these
adjustment factors, the Company reviews the calculation of the proposed rates to determine whether the
schedule is anticipated to meet the adjusted revenue requirement. The formula places a 5% cap on the growth
of total revenue estimated to be received by the company.
COPIES TO: Annette Borges, District Manager LDD
ITEM NO. 6 '~ I --
Total Estimated Revenues Required
Based upon the formula in the existing agreement, in Fiscal Year 2001-2002, Livermore Dublin Disposal
Revenue would increase by 5.68%. However this is decreased to 5% based on specific language in the
Agreement, which caps revenue growth.
The total annual revenue required under the Agreement for the period from July 1, 2001 through June 30,
2002 is approximately $4,366,146. Using the current subscriber census with the current rates, the Company is
projected to generate $4,158,234 in revenues. This results in the need for the proposed rate structure to
generate an additional $207,912, which will make up the shortfall.
In addition to the Company revenues from rates, the City currently offsets a portion of the Residential
Recycling Program's cost with a separate payment of Measure D Funds. This includes both the Single Family
and the Multifamily recycling programs. The Fiscal Year 2000-2001 contribution was $89,000. Staff
proposes that, in Fiscal Year 2001-2002, the subsidy be increased to $100,000 to account for the City's
residential growth. This assumption has been included in developing the proposed rates.
Composition of Waste Stream by Category of Business
The costs associated with the overall waste collection and disposal system must be considered in the context
of the types of services provided. These percentages were used to calculate the amount of expense allocated
to each sector. The following table shows the number of tons and percentage of the waste stream for the prior
three calendar years.
2000 TONS
% WASTE STREAM
Residential
Including Clean-ups Commercial Drop Box TOTAL
6,291 12,982 8,615 27,888
22.6% 46.6% 30.8% 100%
1999 TONS 6,360 12, 193 11,915 30,468
% WASTE STREAM 20.9% 40% 39.1% 100%
1998 TONS 6,096 10,957 7,521 24,574
% WASTE STREAM 26.5% 43.8% 29.7% 100%
Detailed Comparison of Current and Proposed Rates
The rate adjustment is based upon data gathered from the previous calendar year regarding the disposal
tonnage and service level selected. Staff has allocated the rate adjustment based upon disposal tonnage in
proportion to the total revenue. The proposed rate structure is estimated to approximate the Total Target
Compensation of $4,366,146.
The actual percentage increase in the proposed rate depends on the type of service. For Fiscal Year 2001-2002
it is proposed that residential rates remain unchanged while commercial rates increase by 6.25% and drop box
rates increase by 8.05%. Staff recommends that this year's rate increases be used as an incentive to encourage
recycling among commercial and drop-box customers. Since the introduction of the 64 gallon co-mingled
recycling carts, residential recycling rates have increased by over 50%. Commercial recycling on the other
hand has become stagnant. Currently less than 1/3 of commercial customers subscribe to any kind of recycling
service. City Staff as well as LDD Staff believe that this is largely due to Dublin's extremely low commercial
garbage rates. For example, even with the increase, Dublin's commercial rates are at least 38% lower than the
Tri-Valley average (See Attachment 1). The low commercial rates make it difficult to encourage recycling.
Typically businesses are more likely to recycle when the cost of recycling is much lower than the garbage
service. Dublin's current rates provide very little incentive to recycle.
The following example illustrates what a typical business can save by recycling with the new rates:
13 yard bin 3x week Garbage $347.15
13 yard bin 2x week Cardboard $139o00
2 - 96 gallon lx week Mixed Container $37.85
Monthly Total $524.00
Service Without Recycling
2 3 yard bins 3x week Garbage $694.30
A SAVINGS OF $170.30 PER MONTH
The proposed drop-box service rate increase is 8.05%. Drop-box tonnage is largely attributed to construction
and demolition projects in the City. In 2000, drop box tonnage represented nearly 31% of the total disposal
tonnage in the City. While this number is decreasing largely due to the City' s Construction and Demolition
Ordinance, the new rates will provide an even greater incentive to recycle more of the debris. The rate increase
is intended to bring Dublin' s rates closer to the Tri-Valley average. The new drop-box rates would still be
11% below the Tri-Valley average. Attachment 2 compares the proposed rates to the current rates for service
levels which represent a majority of the subscribers in the City. The proposed rates would be effective July l,
2001,
Competitiveness of Dublin Rates with Neighboring Agencies
As shown in Attachment 1, 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 in some cases better than the survey cities. For example, both Livermore and
Pleasanton offer Residential Green Waste collection only every other week. Therefore, the. City of Dublin
residential subscribers receive more services. For most rate categories, the proposed City of Dublin rates are
well below the average of the Tri-Valley agencies surveyed°
Recommendation
Attached to the Agenda Statement is a Resolution (Attachment 3), which will establish the Adjusted
Livermore Dublin Disposal Rate Schedule in accordance with the Franchise Agreement, under which the
Company operates in the City of Dublin.
Staff recommends that the City Council conduct a Public Hearing and adopt the Resolution.
(Prepared By City of Dublin May 2001)
Printed: 5/29/01 16:19 # Dublin
Residential
1 Can Residential (32°35 Gallon)
2 Can Residential (64-70 Gallon)
% Dublin Customers Covered By Sample Rate Categories: 95%
Residential Notes:
2001 Garbage Rate Comparison Survey
Proposed % Proposed Current
Livermore Pleasanton San Ramon Average Dublin From Avg Rate
$ 11o60 $ 22,30 $ ll.50 $ 15013 $ 10.15 -33% $ 10.15
$ 21.65 $ 16.73 $ 19,19 $ 18.65 -3% $ 18.65
Dublin: Basic rate includes 35-gallon can supplied by LDD (weekly pick-up);W.~.gg.~ 64-gallon green waste can supplied by
LDD; weekly curbside recycling collection; and 3 special curb-side clean-ups per year
Livermore: Basic rate includes a 30-35-gallon can supplied by customer, picked up weekly; 96-gallon green waste can
supplied by LDD (gvery other week pick-up); weekly curbside recycling; and 4 curbside clean-ups per year
San Ramon:Basic rate includes 35-gallon can supplied by Garbage Co. (weekly pick-up); 96-gallon green waste can supplied by Company
(picked up every other week); weekly .curbside recycling, and three special clean-ups per year.
Pleasanton: Basic rate includes 90-gallon can (recycling + garbage) supplied by company (weekly pick-up); 64-gallon green waste can
(picked up every_Other week); no separate container for recyclables; 1 extra green-waste pick-up per year; no special curbside clean-ups
3 City Proposed % Proposed Current
Commercial Livermore Pleasanton San Ramon Average Dublin From Avg Rate
1 Yard-ltime/wk $ 51.88 $ 84.33 $ 70.00 $ 68.74 $ 36.55 °47% $ 34.40
2Yard- 1 time/wk $103.76 $ 168.55 $130.00 $134.10 $ 73.10 -45% $ 68,80
3 Yard - 1 time /wk $155o64 $ 240,82 $180.00 $192.15 $109,65 -43% $103.20
3 Yard - 2 times / wk $ 332.84 $ 445.36 $ 360.00 $ 379.40 $ 228.40 -40% $ 215°00
4 Yard- 1 Time/wk $ 207,52 $ 313.54 $220.00 $247~02 $146.20 ~41% $137.60
4 Yards - 2 times / wk $ 436,60 $ 586,26 $ 440,00 $ 487.62 $ 301.50 -38% $ 283,80
% Dublin Customers Covered By Sample Rate Categories: 73%
Drop Box
20 Yard Loose $ 241.60 $ 314,80 $ 300,00 $ 285,47 $ 255,00 -11% $ 236,00
30 Yard Loose $ 362.40 $ 472.20 $ 450,00 $428,20 $ 382,50 -1 I% $ 354,00
40 Yard Loose $ 483,20 $ 629°60 $ 600,00 $ 570°93 $ 510,00 -11% $ 472,00
30 Yard Compacted $ 724.80 $ 944,40 $900,00 $ 856,40 . $ 765.00 -I 1% $ 708,00
% Dublin Customers Covered By Sample Rate Categories: 88%
Every effort has been made to assure the accuracy of the information and comparison of similar levels of service according to our understanding of other agency rates.
% Increase
over 2000/2001
0.00%
0.00%
% Increase
over 2000/2001
6.25%
6.25%
6,25%
6.23%
6,25%
6,24%
8.05%
8.05%
8.05%
8.05%
ATTACHMENT 2 ~,~ ~' _5'
COMPARISON OF SELECTED RATES CURRENT
vs PROPOSED
Residential -Monthly Rates
Minimum Residential (35) Gallon
64 Gallon Residential
Proposed Current
2001/2002 Rate
$ 10,15 $10,15
$ 18,65 $18,65
Sample rate categories represent 95% of residential customers
Proposed
% Increase over
2000/2001
0,00%
0.00%
Additional Green Waste Recycling Can: $4,00 per can per month - (no change)
Multi-Family Recycling (per unit):
$ 0.60 $ 0.57
5,26%
Commercial -Monthly Rates
1 Yard - 1 time / wk $ 36,55
2Yard- 1 timetwk $ 73,10
3 Yard - 1 time /wk $ 109,65
3 Yard - 2 times I wk $ 228,40
4 Yard - 1 Time / wk $. 146,20
4 Yards - 2 times / wk $ 301,50
Sample rate categories represent 73% of commercial customers
$ 34,40
$ 68,80
$ 103,20
$ 215,00
$ 137,60
$ 283,80
6,25%
6,25%
6.25%
6,23%
6,25%
6,24%
Drop Box - Rates Per Service
20 Yard Loose $ 255,00
30 Yard Loose $ 382.50
40 Yard Loose $ 510,00
Represents 93% of 2000 non-compacted Drop Box Subscriptions
$ 236,00
$ 354,00
$ 472.00
8,05%
8.05%
8.05%
30 Yard Compacted $ 765,00
Represents 82% of the 2000 compacted Drop Box Subscriptions
$ 708.00
8,O5%
Handy Hauler Available To Residentia~
$ 60,70 $ 57,80
5,02%
'ATTACHMENT 2
RESOLUTION NO,
-2001
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 Dubi in adopted on June 13, 1995, a Franchise Agreement with Waste Management
of Alameda County; and
WHEREAS, the City Council also adopted Resolution 142-00 on August 1, 2000, which established service
rates to be effective July 1, 2000; and
WHEREAS, the Agreement provides for consideration of the fifth adjustment to the rates in accordance
with specified formulas to be effective July 1,2001; and
WHEREAS, the City Council has considered this action as part of a noticed public hearing on June 5, 2001,
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 1,2001, 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 5th day June, 2001o
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
CityClerk
ATTACHMENT 3
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, Livermore Dublin Disposal is the authorized garbage collection
and disposal firm operating within the City. The agreement between the City of Dublin and Livermore Dublin Disposal
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. The rates indicated on this notice
represent the maximum amount that the City can establish at the June 5,2001 Public Hearing. Rates are effective July 1,
2001.
Basis of Fees
The City has negotiated a multi-year agreement with Livermore Dublin Disposal. The Company may request a change in
rates based upon a formula which includes: changes in the Consumer Price Index; Increased Regulatory Fees; and
changes in the total tons delivered to the Landfill. The additional costs of each of these components has been allocated to
the three classes of service: Residential; Commercial Bin Service; and Drop Box/Compactor.
RESIDENTIAL RATES
Company Minimum Residential Collection Rate: Applies separately to each single family unit as well as each unit
within a duplex or other attached housing, which receives individual garbage collection services. The rate applies to the
initial 35 gallons of garbage capacity, including once per week collection and disposal; 3 annual special curbside clean-
ups; Weekly Curbside Residential Recycling; and Weekly Curbside Green Waste Recycling (64 gallon container), All
containers are provided by the Company.
Company Minimum Monthly Rate:
$10.15
Residents may select a larger garbage container for an additional fee which is shown below:
64 Gallon Garbage Container: Minimum Cost Plus $ 8.55 per month (Total = $18.65 per month)
96 Gallon Garbage Container: Minimum Cost Plus $17.10 per month (Total = $27.15 per month)
Special Residential Services
Large Accumulations: $11.80 per cubic Yard
Special Pick-Ups: $12.80 minimum per pick-up
Additional Green Waste Container: $4.00 per container
COMMERCIAL AND MULTI-FAMILY BIN SERVICES (FRONT-END LOADER)
Excess Rate For Waste Which Exceeds water level: $11.80 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.
35 Gallon Container: $ 9.45
64 Gallon Container: $17.00
96 Gallon Container: $ 25.35
Multi-Family Recycling Service: Multi-Family rates for Recycling are charged by the Company on the number of
units located in the complex.
Monthly Cost: $ 0.60 per unit
EXHIBIT A
Commercial Bin Service Rates
Rates shown below are monthly rates based upon bin size and frequency of service. Rates include collection, disposal,
and bin rental.
Size # # Times Base Monthly Size # # Times Base Monthly
YARDS Per Wk Rate YARDS Per Wk Rate
1 I $36.55 4 I $146.20
1 2 $82.20 4 2 $301.50
1 3 $127.85 4 3 $456.80
1 4 $173.50 4 4 $612.10
1 5 $219.15 4 5 $767,40
2 1 $73o10 6 1 $219.30
2 2 $155.30 6 2 $447.70
2 3 $237,50 6' 3 $676.10
2 4 $319.70 6 4 $904.50
2 5 $401.90 6 5 $1,132.90
3 1 $109.65 7 1 $255.85
3 2 '$228.40 7 2 $520.80
3 3 $347.15 7 3 $785075
3 4 $465.90 7 4 $1,050.70
3 5 $584.65 7 5 $1,315.65
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: $60.70
Additional Bin Rental Per Week: $10.70 per week Cost For Additional Dump: $44.00 / pick-up
Excess Per Yard If Filled Above Water Level $11.80 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. Additional Miscellaneous
charges may also apply, Excess Rate Per Cubic Yard: Non-Compacted: $11.80 Compacted: $23.60
MISCELLANEOUS DROP BOX CHARGES
I Drop Box Flasher Initial Placement of Drop Box I
$12.75 per placement $25.00
Stand-By Time
$85.10 per hro
Relocation of Drop Box
$38.10 per request
Weekly Drop Box Container Rental
After 1 st Week
$14.90 Per Week
Cancel Auto Pick-Up
Without Notice
$48.00