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HomeMy WebLinkAboutItem 6.2 Garbage Rate Proposed Increase (2) .� CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 8; 1990 SUBJECT: Residential Garbage Rate Proposed Increase dLeport by Paul Rankin, Assistant City Manager EXHIBITS ATTACHED: Proposed Resolution RECOMMENDATION: onduct public hearing; deliberate; adopt Resolution FINANCIAL STATEMENT: The proposed rates would result in an approximate 16% increase over the current rates. This proposal does not include any adjustment for Household Hazardous Waste Collection Day or Residential Curbside Recycling. The implementation of these programs will require an additional adjustment. DESCRIPTION: At the City Council meeting on,December 21;-1989, the City Council reviewed a report prepared by the Joint Refuse Rate Review Committee (JRRRC) . The JRRRC is comprised of representatives of agencies which are serviced by Oakland. Scavenger Company, a division of Waste Management Inc. The committee provides a joint , method of reviewing rate applications presented by the company. J The last time the garbage rates were increased was. in 1983 . When the City of Dublin assumed the role of franchisor in 1986, the City reduced commercial garbage rates by more than 11%. Residential rates were reduced by a smaller percentage as a result of the City electing to impose a lower franchise fee than had been levied by the Dublin San Ramon Services District (DSRSD) , which was the previous franchisor. At the previous City Council meeting, Staff identified measures which could mitigate the need for a residential rate increase. This would require that the level of service, be reduced in, some manner. For example, changing the service from back yard pick-up to curbside pick- up would reduce the need for a residential rate increase. The end result is that the customer receives a . lower level of service. At the City Council meeting on December 21, 1989, the City Council directed Staff to prepare the item for a public hearing based on current service levels. The City Attorney's Office advised that pursuant to the Government Code, a notice of the proposed increase should be published in the newspaper. A notice was published on December 28, 1989 and January 3, 1990, indicating that the increase would be considered at a public hearing on January 8, 1990. The current residential garbage rates include the provision of two Citywide clean-ups for residential customers of the disposal company. In addition, two clean-ups are funded through a special fund which was created when DSRSD delayed the implementation of a JRRRC recommended rate reduction. The residential garbage rates provide for back yard service for residential customers. The JRRRC has recommended that the City approve a 16% increase. The need for the increase is based on the increased cost of the company's operations over the last six years. The JRRRC recommendation was based upon a detailed analysis prepared for' the committee by an . independent accounting firm. A representative of the accounting firm presented a summary of the findings to the City Council at the COPIES TO: Dave McDonald, Waste Mgmt- Inc. ITEM NO. 6� ;47, Mary Evans, Controller Livermore-Dublin Disposal Bill Brandi, Manager Livermore-Dublin Disposal December 21, 1989 meeting. The rates contained in the proposed resolution represent an increase of 16%, rounded to the nearest nickel. At the previous City Council meeting, Staff also discussed with the Council, the option to adjust the rates to accommodate a Household Hazardous Waste collection day. In addition, Staff was directed to negotiate with the firm on the implementation of a curbside recycling program. Depending on the method of payment selected, this may also affect the garbage rates. Staff did not receive the HHW collection cost proposal in sufficient time to assess the total cost and joint financing between the participating agencies. Therefore, the proposed rate increase reflects only the JRRRC 16% recommended increase. Representatives of Waste Management have indicated a willingness to consider a single future rate adjustment which would cover both recycling and HHW. The representatives have indicated that there would not be a problem with having the increase effective date after the actual HHW collection day. The rates would be adjusted to assure that the share attributable to Dublin was recovered. Waste Management is capable of entering into this arrangement because the Cities of Dublin, Livermore and Pleasanton are considering the use of Chemical Waste Management for the HHW collection. This firm is a subsidiary affiliated with the local garbage company. Staff recommends that the City Council conduct a public hearing and adopt the proposed Resolution. RESOLUTION NO. - 90 / , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************************** AMENDING A SCHEDULE OF SERVICE RATES FOR SOLID WASTE COLLECTION AND DESIGNATING THE POINT OF COLLECTION FOR SINGLE FAMILY COLLECTION WHEREAS, the City of Dublin adopted Resolution No. 24-86 in March of 1986 which established garbage service rates; and WHEREAS, the proposed amended rates correspond to the findings of the Refuse Rate Review Committee dated November 21, 1989; and WHEREAS, a notice of the proposed rate increase has been published on December 28, 1989 and January 3, 1990, as required by the Government Code; and WHEREAS, the City Council has conducted a public hearing on the matter on January 8, 1990; and WHEREAS, the Solid Waste Management Ordinance and Agreement Regarding Waste Collection and Disposal require the City Council to designate a rate schedule and point of collection for single family residences. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby resolve as follows: 1. The Rate Schedule attached hereto, marked "Exhibit A" and made a part hereof by reference, shall be the official rate schedule until further rescinded or amended. - 2. Said rates in Exhibit A shall be imposed beginning January 1, 1990. 3 . Said rates are in accordance with the City of Dublin Solid Waste Management Ordinance and the Agreement between the City of Dublin and Oakland Scavenger Company, a subsidiary of Waste Management Inc. , Regarding Waste Collection and Disposal. 4. The content of this Resolution shall supercede Resolution No. 24-86 adopted the 10th day of March, 1986. PASSED, APPROVED AND ADOPTED this 8th day of January, 1990. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk . FL } !J d_ EXHIBIT A I. RATES The monthly rates for collection of refuse within the City of Dublin as of January 1, 1990, are set forth as follows: Residential a. Once a week collection of one container. $ 5.70 of 32 gallon capacity b. Once per week collection of two containers $ 9. 65 of 32 gallon capacity each c. Once per week collection of each additional $ 3 .95 can beyond "b" above d. Large accumulations per cubic yard $ 4.80 e. Special pick-ups, minimum $ 9 . 30 Commercial (For Refuse Only .- Excludes Container Rental Rate) a. Per cubic yard (not compacted) $ 4.80 b. Compacted material per cubic yard $ 9.60 II. DESIGNATION OF POINT OF COLLECTION For Single Family Residential Service, the above rates shall be for back yard service. The term "back yard service" shall mean the container(s) shall be on the outside of and in close proximity to the structure being served, and at a location which is the customer's option. Padlocks. or other devices which deny the Collector reasonable access will relieve said Collector from responsibility of such collection. III. ADDITIONAL SERVICES PROVIDED IN RATES The above rates shall include two (2) annual residential cleanups. Dates of said cleanups shall be at the discretion of the City upon reasonable notice to the Company. The rules regulating the special cleanup shall be approved by the Contractor and the Director.