HomeMy WebLinkAboutItem 8.3 GarbageAnnualRateRevie CITY CLERK
File # J JJ ! J 0
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 1, 2004
SUBJECT: Annual Rate Review for Garbage Collection, Disposal, and Recycling
Services Provided By Waste Management
Prepared by: Jason Behrmann, Administrative Analyst
ATTACHMENTS: 1. Comparison of Selected Rates
RECOMMENDATION~~Receive Report
FINANCIAL STATEMENT: None
DESCRIPTION:
The current garbage rates brcame effective July 1, 2003. In accordance with the Agreement with Waste
Management (WM) the adopted rates are required to be reviewed prior to July 1, 2004.
Agreement with Waste Management
The agreement between the City of Dublin and WM 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, WM
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% annual cap on the growth of total revenue estimated
to be received by WM.
Total Estimated Revenues Required
Based upon the formula in the current agreement, the total annual revenue required for the period from July 1,
2004 through June 30, 2005 is $5,021,639. Using the current subscriber census data, the current rates are
projected to generate the annual revenue required by the Agreement, therefore no rate increase is required for
Fiscal Year 2004-2005.
Measure D Funds Used to Minimize Rate Increase
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 level
COPIES TO: Patrick Gavin, District Manager WM
of Measure D funding varies from year to year as shown below, depending on the measure D fund balance and
the required revenue increase.
1999-2000 $89,000
2000-2001 $89,000
2001-2002 $100,000
2002-2003 $48,000
2003-2004 $188,362
The Fiscal Year 2004-2005 contribution is proposed at $185,292. This assumption has been included in
calculating the 2004-2005 revenue. A large portion of the City's contribution in Fiscal Year 2003-2004 and
Fiscal Year 2004-2005 comes from excess food waste revenue the City continues to receive from Waste
Management. While the food waste program has improved and participation has increased, the revenues
collected from all commercial accounts to fund the program continue to exceed expenditures. Therefore it is
recommended that a portion of this excess revenue be used to fund the subsidy and help maintain the current
rates.
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 most cases, the City of Dublin service levels are
at least comparable, and often better than the survey cities. For most rate categories, the proposed City of
Dublin rates are well below the average of the Th-Valley agencies surveyed.
Recommendation
Staff recommends that the City Council receive the report.