HomeMy WebLinkAboutItem 6.2 LDD Rate Adjust (2)SUBJECT:
ATTACHMENTS: ' 1.
2.
"C:I:Ty CLERK
AGENDA STATEMENT '
public Hearing: Adoption 0~'Adjustment of Rates for Garbage
Collection, Disposal; and ReCycling services Provided By
"Livermore Dublin DisPosal (RePort Prepared by: Julie Carter,
ASsistant to the City Manager)
Rate ComParison
Copies of Written protest~ Received
Resolution Adopting Rates
1) Open the Public Hearing. 2) Receive the Staff Report and public
testimony. 3) ClOse thepublic hearing and deliberate. 4) Determine
the number of anY' additional written protests received for the record.
5) Adopt Resolution.
FINANCIAL STATEMENT: The mount Of-the prop~>sed rate increase varies depending on 'th'e
type of service received. The increase is approXimately 1% for most cUStomers. The proposed rates will
be effective for ail services provided after July 1, 1999.
DESCRIPTION:
f'"' The current garbage rates became effective July 1, 1998. In accordance with the Agreement with
Livermore Dublin disposal/the adopted rates were scheduled to be~'~evie~d for a rate adjustment July 1,
1999.. The mount of the allOWed adjustment was calculated in accordance with a specific formula.
Ag~een~en~'~iih'Livermore Dubli'n~Di~p0sal
The City has a role in the establishment of Garbage and RecYCling Service Fees. 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 mount is determined in accordance
with a specific S~hedule 'and 'form~ui-a. The' annual 'adjustment takes int° account (a) Changes in the
Consumer PriCe Ifide~C;' (b) changes in Landfill Regulaiory fees; and (~) an Adjustment for the Number Of
- i Tons Placed in the Landfill iAfter incorporating these adjustment factors, the Company reviews the
- i:: calculation of the' pr°Pbsed ~rat~s' tO'de~eimine Whettier the S~hed~i'~'-i~ "anticipated ~ meet the adjusted
revenue requirement. The formula places a 5% cap on the growth of total revenue estimated to be
received by the Company.
Trends Evaluated to Develop PropOsed Rates ' '
The rate adjustment is based upon data gathered from the previous calendar year regarding the number of
customers and service level selected. Staff has allocated the deficiency based upon both Disposal and
COPIES' TOi'Ahn~tte Borges; Dis'tl~icfMhnhger, LDD
ITEM NO. ~
\K)UBLIIqFS2'o-ULIEC$\Coun¢il Reports\l 9-99"~2"00~0g/irb~ge COllectiOn' ~t'e'~'~do~
Residential, C0~ercial, prol;
approximate the Total Target ComPensati0n 0f $3,299,005;
Total E stima/e d'~ R~;enu es~ R'e~q~ii-i~'d ~ ....
Based upon 'ffi'e"i%~uia in the existing' Agreement, ih-Fi~6~iI Y¢~ i'55:9~2bb0~'~the-~crease is io be based':: ::"~::':::':
upon a 3.8% .increasein DisPosal C6sts and ~/ 3.04%: increase ifiC6iieeii6h ~6os~s piu~ ~ 'hllOW~;6-¢aS~d '~' '~
upon total tons collected. Using this formula the total i998799Li;vermore Dublih'Di~p0s'~/i'Re¥~iiue ......
~e by approximately 2285%'whiehiSb;~'Ib~'th~ 5'% ~hl5~ ' x~6e~il~: ...............
would incre .... ~i}5~ed~iii'th~ ........................... ' ........
The total annual revenue required under the Agreement for the period from July 1, 1999 through jun~ '30,
2000 is approximately $3,299,005. Using the current subs~riber~census'with' il~e'~urrent"r~ie~}"th~
Company is projected to only generate $3, 267,879 in revenues. This results in the need for the proposed
rate Structure to generate an'additional $3 I;126, WhiCh ~rill'make tip'the ShOrtfall. :-'' ....
In addition i0-the COmpany re~,enfies fr;ni rates'/he City currently offsets a portion of the
'Recycling Program's cost with a separate payment of measure D funds. This includes both the Single
developing 'the ProPosed rates.
Composition of Waste Stream
The ~'OS~ system must 'l~e considered ~n the
context of the types of' services provide&~ '~ These pereenthges ~we~e used' ~t0 c/i~Ulate the amount
expense allocated to each. sector,-'.~6 ~foll0Wing't~tbl-~'~l/0~ '~e~ ii~be~ ~Sf t0ns and per~entag~ 6-f ~
waste stream for the prior three calendar ~;ears.
;,... ,¢. :.:~:: ......,,. ~ : ·
1998 'TONS ......... .... 6,096 .. 10,957 7,521 24,574
% 1998 waste s/re~' ' 24.8% .... 44.6% 30.6% 100.0%
1997 TONS [ 6,273 10,343 7,046
% 1997 was't~ stream'~ [ 26.5% 43.8% 29.7%
10,06617,437 ~_~,~6~
43.1% 31.8% 100.0%
D~tailed cii~pai:ison of current ah'd ProPiised Ra0~s
The actual percentage of increase in the proposed rate depends on the type of service. Residential Rates
are proPOsed to increase by less thanl%, except for Multi~f~l~/re6~clihg~hi~h'is in~feaS~
10% from $.50 per unit to $255; this is
adjusted. Although the Multi-family recycling rate has not been adjusted since 1996~
increased Contributions from Measure D, which address the cost of all residential recycling programs.
Even though the percentage increase is more than the'other rates; in terms Of actual dollars this change is
relatively minor. The City's largest apartment complex cOntaining 550 units would experience a total
annual increase of only $330. commercial Rates ~e proposed t0'ifi~:ease' by
Box Rates would increase by~18'8%. The cha~ belo~ COmpares the'pr0i~6~d rates to
service levels, which i~ePresent a majorii'y df th¥subS~ribe/~'i-n~'~'ci~'~ propc rates
place beginning July 1, 1999.
· COMPARISON OF SELECTED' TES PROPOSED vs CURRENT
_*-?;',,'~?". ProposSd
Residential-Monthly Rates ...... .- .- ..; Dublin
Minimum Residential (35) Gallon .... $. 10.05
64 Gallon Residential $ 18.05
Current
Rate
$9.95
$17.90
% Dublin Customers Covered By
Sample Ratecateg0de§' :~ -;. ':
over 1998
1.01%
0.84%
Additional Green Waste Recycling Can: $4.00 per can per month - (no change)
Multi-Family RecyC'ii'/~g*i ..... "' -' ;¢;: '" : $ 0.55 per unit $ 0.50 per unit
*Rate has never been increased under current Agreement
· ; ':'"'-' ' $' 33.45
· . .$ '66.90
$100.35
$ 209.15
$133.80
~$ 276.05
76%
10.00%
3 Yard - 1 time / wk
3 Yard - 2 times / wk
..... f.. 4-Yards - 2 times / wk
% Dublin CUstomers Covered By
Sample Rate Commercial Categories
$ 33.15 0.9O%
$ 66.30 0.90%
$ 99.45 0.90%
$ 207.20 0.94%
$132.60 0.90%
$ 273.50 0.93%
Drop Box - Rates Per Service
20 Yard Loose $ 228.00
30 Yard L'OO~e : '~' ~ '~ ~' $ 342.00
40 Ya~:d Loos~:''¢': :'"" ' "'
Represents 95% of 1998 non-compacted Drop Box Subscriptions
$ 226.00
$ 339.00
$ 452.OO
0.88%
0.88% . --
0'88%
30 Yard Compacted $ 684.00
Represents 83% of the 1998 compacted Drop Box Subscriptions
$ 678.00
0.88%
Handy Hauler Available To Residential $ 56.35
$ 55.80
0.99%
, ne proposea** . ra~e_...., s~c~e includes. . clm~$~.~;0t; ~g~.~ged for sm~l co~erc,~ compactors
semcea 0n a re~ co~erci~ ~S ~ ~ ~Ee ~e ~o* of ~e l~se ~¢~&' fee. U~e ~e
rollre~drop box ~ts Se sm~l co~erc,~ compactors c~ be semced ~$out ,ndlv, dual ~ps to Se
remmn very competitive compared to rates
service i~I'~
:example; B6th Liv-~rm0r~
rates
less
is in th~ process of arate
Requirements Under Propo~itiofi
'Under` .e reqse~en~' ~f P~0P0Si~i0n
rehSe semite fees, reqdres a 45-day notice to
omcrs °n MaY2i, 1999. .........
h~ ve~
The agency shall conduct a public hearing upon
e not less
~ ~r~ed, the C,ty had rece,ved._a total of sm protests 'Som 5 d,fferent
propert~'6~ers, as Contained ifi-~At~liment' 2~' '-"~"'nhrnb~i~'
Amched to me S~ Repo~ is a ReSolufion~ A~6~ent.3, '~
S'ched~"'~ accord~ce ~ ~e Fr~c~Se A~eemem, ~der W~ch ~e'Ci~
protes~ FolIo~
{Prepared By City of Dublin May 1999)
Printed: 6/28/99 11:59
Residential
1 Can Residential (32-35 Gallon)
2 Can Residential (64-70 Gallon)
1999 Garbage Rate Comparison Survey
# Dublin. 3 City Proposed
Customers Livermore Pleasanton San Ramon Average Dublin
3,858 $ 9.64 $ 16.00 $ 11.50 $ 12.38 $ 10.05
2,038 $ 17.99 $ 25.50 $ 16.73 $ 20.07 $ 18.05
% Dublin Customers Covered By Sample Rate Categories: 98%
% Proposed Current
Off Fr Avg Rate
-19% $ 9.95
-10% $ 17.90
Residential Notes:
Dublin: Basic rate includes 35-gallon can supplied by LDD (weekly pick-up);Weekly 64-gallon green waste can supplied by
LDD; weekly curbside recycling collection; and 3 special curb-side clean-ups per year
% Increase
1998
1.01%
0.84%
Livermore: Basic rate includes a 30-35-gallon can supplied by customer, picked up weekly; 96-gallon green waste can
supplied by LDD (every_ 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
(every other week pick-up); weekly curbside recycling, and three special clean-ups per year.
Pleasanton: Basic rate includes 35-gallon can 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
Commercial
1 Yard- I time/wk $ 33.45 $ 61.27 $ 70.00 $ 54.91 $ 33.45 -39% $ 33.15
2 Yard- 1 time/wk $ 66.90 $ 122.54 $130.00 $106.48 $ 66.90 -37% $ 66.30
3 Yard- 1 time/wk $100.35 $ 183.81 $180.00 $154.72 $100.35 -35% $ 99.45
3 Yard - 2 times / wk $ 214.60 $ 367.62 $ 360.00 $ 314.07 $ 209.15 -33% $ 207.20
4 Yard - I Time / wk $133.80 $ 245.08 $ 220.00 $199.63 $133.80 -33% $132.60
4 Yards - 2 times / wk $ 281.50 $ 490.16 $ 440.00 $ 403.89 $ 276.05 -32% $ 273.50
% Dublin Customers Covered By Sample Rate Categories: 76%
0.90%
0.90%
0.90%
0.94%
0.90%
0.93%
Drop Box
20 Yard Loose $167.00 $ 282.80
30 Yard Loose $ 250.50 $ 424.20
30 Yard Compacted $ 501.00 $ 848.40
% Dublin Customers Covered By Sample Rate Categories: 83%
$ 300.00 $ 249.93 $ 228.00 -9% $ 226.00
$ 450.00 $ 374.90 $ 342.00 -9% $ 339.00
$ 900.00 $ 749~80 $ 684.00 -9% $ 678.00
0.88%
0.88%
0.88%
Every effort has bden made to assure the accuracy of the information and comparison of sintilar levels of service according to our understanding of other agency rates.
ATTACHMENT !
RECEIVED
JUN 1- 199,9
CiTY OF DUBLI
P. O. J3ox 2340
Dublin, CA 94568
Attention: City Clerk
Protesting fee related to Refuse Collection Services for Garbage
Coll~cfion/Disposal-Reeycling Collection. :2
Name:=` ' "~t~'Nordquist, 7110 Corte Balboa, Pleasanton, CA 94566
Property address: 6560 Pioneer Lane, Dublin
Parcel No.: 941-2765-29 '
Inmy opinion, the armdal assessment applied to a=~ndominium/;bwnhouse unit,
in the amount of $120.60 would not be appropriate if you 'applied the same annual
fee to each single family residence. The amount of trash, garbage, or green waste
is far less than that of a single family residence.' IfI am to be assessed a fee for
gar. b~ige collection, I Would like t'o see the assessment for 6ond6minium or
to~ouse units be less'than that applied to the single family r~/sidence.
A'I-i'ACHMENT 2
City of Dublin
· RESIDENTIAL MINIMUM GARBAGE / RECYCLING SERVICES
(Collected With Residential Property Tax Bffis)
Atfected Parcels
Residential homing units are billed' for the cost of Minimum Garbage/Recycling Services, which is
included with the annual property tax bill. This fee only applies to residential units which have individual
garbage contalncrs and are not serviced by central bins. Thl.q does include duplexes and other attached
homing types, which receive individual service.
Households subject to this fee which °nly receive Minimum Sc'trice, will not be billed by the Garbage
Company. Livermom Dublin Disposal will continue to bill customers each quarter for additional sc~ices,
if a household selects weekly garbage collection ora container larger than the 35 gallon container
includ~ in th, Iv{'mimum Scrvi~ I~v¢l.
Basis of The Fee
The City estimates the total revenue required to pay the Garbage Company for Minlmm Service to ail
residential traits which are eligible to use the sea'vice. The specific factors considc-md in th/s calculation
include the following components: the monthly residential rate for Minimum Sca'vice (Proposed at $10.05
per month); estimated nmbcr of housing units affected by the fcc; costs associated with the collection of ..
the fe~ as part of the Property Tax Bill; estimated delinquencies; estimated revenues from late payments
and interest camin~; and funds availabl, from collections in a prior ye, ar.
What Services Are Provided By The Fee
Minimum Service includes: weekly collection and disposal of one (35 Gallon) garbage container;, weekly
collection of one (64 Gallon) Green Wast~ containm,;, weekly curbside mcycting (including: glass, tin,
alumin~rm~ newspaper, mixed papC'rtjnnk nmil, magazines, and cardboard); and three special cie, an-ups
each year. AH monies collected will only be used towards the cost of these services.
.Amount of the Fee
The annual mount of the assessment includes the cost of collection az Well as the cost ofseaMces over
the entire ye, ar. The City makes the payment to Livcrmorc Dublin Disposal based upon the currant rate
allowed £or Minimum Rmidential
TYI'E OF HOUSING UNIT
Ea~ S~e Fam~ ~id~
Each Condom I To--omc Un~
Each Duplex (2 Un~)
Ea~ Duplex (~ or Mo~ U~)
ANNIJ~ FEE
$120.60
$120.60 ~
$ 241.20
$120.60 times the
number of units
Although the proposed Fiscal Year 1999/00 fee is a 1.8% incmaze over the 1998/99 fee, the amount is still
less than the charge required prior to the new anlomated sc, rvice~ which was implemented in 1996.
Rita Matzat
7148 Amado Valley Blv&
Dub~.ia,~ CA 94568
-j
RECEIVED
:m.,. C'it-,: Clerk
Chv ,:.)t" Dublin
P.:.':. ?.,v:.. 2340
?)i~hi{n. C. ,.',,
and ~hc Rcs/dcnfi~ X,~mum Garbagc,?,ccyc~g Scr,.Sc:s ~'~'-" The Assessor's Pin':ti i'fumbcr far
be w~ing ~o accept ~e proposed kncreascs, how~cr., b~he numbs'of special curbside v.,~---i. "~ .... --~s.
waa increased fi'om fi~¢ present 3 annually ro 4. l appreciate d~e oppommiiy ~o commeni on ihis
isst*~'. ~a~X; you very muc!i~
'5.'om's IrUly,
Wi!liam F. Clark
~ ~-3.2 .~',mmore mace
Dublin. C.A 94568
RESOLUTION NO. - 99
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
- ' '~ ' ' AMENDING THE SCHEDI~E OF SERVICE RATES
FOR INTEGRATED SOLID WASTE SERVICES AND
ESTABLISHING MINIMUM SERVICE LEVEL FOR RESIDENTIAL CUSTOMERS
WHEREAS, the City of Dublin adopted on June 13, 1995, a Franchise Agreement with Waste Management
of Alameda County; and
WHEREAS, the City Council also adopted Resolution 98-98 on June 29, 1998, which established service
be effecti~/e July I, 1998; and
WHEREAS, the Agreement provides for consideration of the third adjustment to the rates in accordance
with specified formulas to be effective July 1, 1999; and
WHEREAS, in accordance with California Constitution Article XIII C (Proposition 218) Section 6 (2) the
City has provided written notice to 8,551 property owners listed by the Alameda County Assessor on the Fiscal Year
1998-99 tax roll at least 45 days prior to holding a public hearing; and
WHEREAS, the City received a total of 6 written protests to the adoption of the amended solid waste fees,
which was not a sufficient number to represent a majority of the affected property owners; and
WHEREAS, the City Council has considered this action as part of a noticed public hearing on July 6, 1999.
" ~ NOW, THEREFORE, BE IT RESOLVED THAT THE City Council does hereby adopt the Rate Schedule
attached hereto, marked "Exhibit A" and by referenqe made a part hereof.
BE IT FURTHF..R RESOLVED THATupon the effective date, July 1, 1999, this resolution shall supersede
all previous resolutions adopting ~'ateS for solid waste services.
PASSED, APPROVED 'AND ADOPTED this 6th day of July, 1999.
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
Attachment 3
Exhibit A
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. Liverm°re 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 proposed rates will be effective
July 1, 1999.
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 (Note: For Housing Units Constructed as of the 1999/2000 Property
Tax Lien Date, January 1, 1999, the annual cost of Minimum Service will be paid through a fee collected
with the Property TaX bill. See Insert )
Company Minimum Monthly Rate: $10.05
Residents may select a larger garbage container for an additional fee which is Shown below':
64 Gallon Garbage Container: ' MinimUm Cost Plus $ 8.00 per month (Total = $18.05 per mOnth)
96 Gallon Garbage Container: Minimum COst Plus $16.00 per month (Total = $26.05 per month)
Each Additional Increment shall be an additional $8.00 per month.
special Residential Services
Large Accumulations: $11.40 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: $11.40 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.
~'~5 Gallon Container: $ 8.75 64 Gallon Container: $16.00 96 Gallon Container: $ 24.00
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: $ 0.55 per unit
Commercial Bin Service Rates /'q' ~ /~'-
Rates shown beloTM are monthly rates based ui~on bin size and frequenfy of service. Rates include collection, disposal,
and bin rental.
Size # # Times Base Size # # Times Base
YARDS Per Wk Monthly Rate YARDS Per Wk Monthly Rate
33.45 4 1 $ 133.80
75.35 ~4 2 $ 276.05
117.25 4 3 $ 418.30
159.15 4 4 $ 560.55
201.05 4 5 $ 702.80
2 1 $ 66.90 6 1 $ 200.70
2 2 $ 142.25 6 2 $ 409.85
2 3 $ 217.60 6 3 $ 619.00
2 4 $ 292.95 6 4 $ 828.15
2 5 $ 368.30 6 5 $ 1,037.30
3 1 $ 100.35 7 I $ 234.15
3 2 $ 209.15 7 2 $ 476.75
3 3 $ 317.95 7 3 $ 719.35
3 4 $ 426.75 7 4 $ 961.95
3 5 $ 535.55 7 5 $ 1,204.55
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: $56.35
Additional Bin Rental Per Week: $10.70 per week Cost For Additional Dump: $42.50 / pick-up
Excess Per Yard If Filled Above Water Level $11.40 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: $11.40 Compacted: $22.80
Non-Compacted Proposed Compactor Proposed
Size In Yds RATE Size/CY Rate
6 $ 159.60
14 $ 159.60 25 $ 570.00
20 $ 228.00 30 $ 684.00
25 $ 285.00 40 $ 912.00
30 $ 342.00
40 $ 456.00
50 $ 570.00
MISCELLANEOUS DROP BOX CHARGES
Drop Box Flasher
$12.50 per placement
Initial Placement of Drop Box
$24.55
Stand-By Time
$83.45 per hr.
Weekly Drop Box Container Rental Cancel Auto Pick-Up
Relocation of Drop Box After 1 st Week Without Notice
$37.40 per request $14.60 Per Week $48.00