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HomeMy WebLinkAboutItem 6.2 Multi-FmlyRecyclRate (2) ; .,. . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 13, 1995 SUBJECT Public Hearing: Adjustment To Multi-Family Recycling Rate For the Period May 1995 - December 1995 ~ (prepared by: Paul S. Rankin, Assistant City Manager) : / Resolution Approving the Second Amendment To The Agreement dated 22 February 1993 for Multi-Family Recycling Services EXHIBITS ATTACHED RECOMMENDATION ~:/l) Open the Publie Hearing. (2) Receive the StalTReport and Public Testimony. (3) Deliberate. (4) Adopt The Resolution. FINANCIAL STATEMENT: The amount of the increase totals is three cents per month per multi- family unit. It is proposed that the City pay the entire. increase with Measure D. Funds in lieu of increasing the rate paid by the property owners. Total cost will be S576 for the period May through December. DESCRIPTION In 1993, the City entered into an agreement with Livermore Dublin Disposal to provide recycling services at Multi-Family Residential complexes. The range of services and commodities collected was similar to the items collected in the residential curbside program. Section VI of the current agreement addresses annual adjustments to the rate charged. The applicable section reads: LDD may make annual adjustments to the fees charged for the Multi-Family Program, no sooner than one year after LDD begins providing recycling services using the full percentage difference in the" San Francisco-Oakland-San Jose Consumer Price Index, All Urban Consumer, All Items," as the percentage basis for the adjustments. The February index will be used for May 1 adjustment... The current allowed rate is S1.28 per unit per month. Staff has reviewed the applicable change in the CPI which was reported at 2.1 %. Therefore, the Company is presently entitled to an increase of SO.03 per unit per month. The City has subsidized the current rate by SO.52 per unit per month since May 1994. The subsidy is funded with Measure D funds, which must be used toward recycling related activities. This results in the property owner paying a monthly fee of SO.76 per unit per month. The City has also subsidized the rate paid by Single Family Property Owners, in order to reduce the amount which is collected as an assessment. Effective January 1, 1995, the Single Family Rate increased from S1.37 per month to S1.40 per month and the increase was paid from Measure D Funds. Beginning January 1, 1996 the Multi-Family program will be incorporated as part of a comprehensive agreement and the rate charged will be reduced further. It is proposed that the City fund the full amount of the May 1995 increase using Measure D funds. This will avoid any direct increase in costs to the affected households. Due to proposed changes in the City Solid Waste Collection and Recycling Agreements, which are scheduled to take effect January 1, 1996, the current rate will only need to be in effect through December 31, 1995. Following that date the proposed new franchise agreement provides a further reduction in the charges for the Multi-Family Recycling program. Staff has prepared an Amendment to the Agreement, which will modify the City contribution through December 31, 1995. It is recommended that the City Council adopt the Resolution approving the amendment to the current Agreement. --------------------------------------------------------------------------- lTEMNO.b.Z COPIES TO: Dan Borges, LDD General Manager CITY CLERK FILE~ c:garbage!AGMFRECY I' . RESOLUTION NO. -95 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ------------------------------------------------------------------------------------------------------------------------------- ADOPTING AMENDMENT NO.2 TO MULTI-FAMILY RECYCLING PROGRAM AGREEMENT WHEREAS, tlrrough Resolution No. 25-93, adopted February 22, 1993, the City of Dublin approved a comprehensive multi-family residential recycling program operated by Livennore Dublin Disposal; and WHEREAS, following the first year of operation the Company is authorized to collect an increased rate based upon changes in the Consumer Price Index; and WHEREAS, the City receives Measure D funds which must be used for Recycling and Source Reduction activities and programs; and WHEREAS, the City Council adopted Resolution 64-94 on June 27, 1994, which amended the original agreement and subsidized a portion of the Recycling charges with Measure D funds; and WHEREAS, the Measure D subsidy reduced the monthly rate collected from rate payers by the Company; and WHEREAS, based upon the existing agreement, a rate adjustment for the Multi-Family Program was scheduled for May 1995; and WHEREAS, based upon the change in the Consumer Price Index, the rate should be increased by three cents to $1.31 per unit; and - WHEREAS, as provided in the amendment adopted by the City Council on June 27, 1994, the City is currently paying a portion of the current rate with Measure D funds (fifty-two cents per unit per month); and WHEREAS, the City desires to increase this subsidy to meet the increase due May 1995. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Second Amendment to the Recycling Agreement attached hereto as Exhibit A (1995). BE IT FURTHER RESOLVED that the Mayor of the City of Dublin is authorized to execute the amendment to the agreement. PASSED, APPROVED, AND ADOPTED this 13th day of June, 1995. A YES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk g:agendalnsaslrttsmfral.doc tx"'b~+ .L (l e e SECOND AMENDMENT TO AGREEMENT DATED 22 FEBRUARY 1993 BETWEEN OAKLAND SCAVENGER COMPANY (OSC) [Now called Waste Management of Alameda County], LIVERMORE DUBLIN DISPOSAL (LDD), AND THE CITY OF DUBLIN (CITY) FOR MULTI-FAMILY RECYCLING SERVICES This Amendment dated for convenience as 13 June 1995, is hereby adopted by the parties in accordance with Section VII (J) of the original Agreement dated 22 February 1993. The parties hereby agree to the following: I. "Section VI. Compensation For Services" shall be deleted in its entirety and replaced with the following: Section VI Compensation For Services and Process For Adjustments A. Authorized Monthly Rate For Recycling Services Effective with this Amendment, the cost of the service shall be shared between the City and the rate payer. The Authorized Monthly Rate for the Multi-Family Recycling Program effective May I, .t--9-94 1995 shall be $1.28 $1.31 per r~sidential unit. This fee shall be charged in the manner described below, for all multi-family resident units regardless of the level of their participation in the program. B. City Responsibilities City shall be responsible for subsiClizing a portiolt of the total monthly rate owed for these services for the period of May 1, -1-994-1995 through June 30, 199'1 December 31,1995. the City subsidy ~;hall be $.02 (two cont;) per month permu]ti family unit. Effective July 1. 1 ')9'1 May 1,1995, the amount of the subsidy is established at $.52 (fifty t\\'o cents) $0.55 (fifty-five celtts) per month per multi-family unit. Company shall bill City in advance for six months of service. Company shall submit billings on or about July 1st. City shall make every effort to process payments owed within 45 days. For the period of May - June +9941995 Company shall bill CITY upon execution of this amendment. The following is provided as an example of the typical semi-annual billing information to be provided by Company: Period Covered: # Multi-family Units: Per Unit Monthly Subsidy: July 199X - December 199X 2400 $0.55 Total This Billing: 6 months * 2400 units * $.55 = $7,920 The amount of the City Subsidy can only change upon adoption by the City Council of an appropriate Resolution. It is intended that the funding source of this subsidy shall be the Measure D Recycling Funds. ~)(HI:~1:.T A J! e. . IN WITNESS WHEREOF, This Amendment is executed by the parties to the Agreement. LIVERMORE DUBLIN DISPOSAL a Division of Waste Management Alameda County WASTE MANAGEMENT OF ALAMEDA COUNTY a Waste Management, Inc. Company Dan Borges, General Manager Kevin Walbridge, President CITY OF DUBLIN, a Municipal Corporation Attest: Guy Houston, Mayor Kay Keck, City Clerk Approved As To Form: City Attorney g:finance lagreemn/lwmac-/dd.doc