HomeMy WebLinkAboutItem 6.2 Garbage Rates CITY CLERK
File # 0810-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 1, 2000
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
Copies of Written Protests Received
Resolution Adopting Rates
5) Adopt ResolUtion
FINANCIAL STATEMENT: The amount of the proposed rate increase Varies depending on the type
'of service received..The increase is less than 1 .'5% for residential curbside customers usi~,g the Standard 35
gallon cart, aPprOximately 3.75% for conamercial cuStomers, m~d 5.~50]~"Tor'dr°p box ser~i~e. The proposed
r'-",tes Will be effective fOr all services proyided after July 1,2000.
DESCRIPTION:
The current' garbage rates became effective July 1,. 1999. In accordance with the Agreement with Livermore
Dublin Disposal (LDD), the adopted rates were scheduled to be reView6d for a rate adjustment July 1, 20001
The :amount of the allowed adjUstmerit 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 amaual 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 5-r'tl'e X.*:~'Ii!,,-i' of T,-~ns_placed in the.Landfill. After incorporating these
adjustment factor~, the COmpany ::c', i:'..., ~ I:.,.' c~Icul::~i.','..~ ~ofthe prop0sed 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.
Trends Evaluated To DeVelop PropoSedRates"
The rate adjustment is based upon data gathered from the pr,", ~ ":..', ,:'2'. ::'.:!".: x'c',ir' regarding the number of
cust0mei's, disPosal tOnnage and serViCe l'evel :selected: Staf: i'...'., ::'!,,.':,:,',! ~l',,' rate adjustment based Upon
COPIES TO: Annette Borges~ Dis{rict Manager LDD
' ' ITEMNO. :h'Z'-- '~
both Disposal and Collection in proportion to the Total Revenue. This was then distributed by major class of
service (i.e. residential, commercial, drop box). The proposed rate structure is estimated to approximate the
Total Target Compensation of $3,862,207.
Total Estimated Revenues Required
Based upon the formula in the existing agreement, in Fiscal Year 2000-20011 Livermore Dublin Disposal
Revenue would increase by 3.73%, which is below the 5% cap allowed in the Agreement.
The total annual revenue required under the Agreement for the period from July 1, 2000 through June 30,
2001 is approximately $ 3,862,207. Using the current subscriber census with the current rates, the Company
is projected to only generate $3,723,307. in revenues. This results in the need for the proposed rate structure to
generate an additional $138,900, 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 1999-2000 contribution was $89,000. Staff
proposes that, in Fiscal Year 2000-2001, no change is made. 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.
ReSidential
Including Clean-ups Commercial Drop Box TOTAL
1999 TONS 6,360 12,193 11,915 30,468
%1998 WASTE STREAM
20.9% 40% 39.1% 100%
1998 TONS 6,096 10,957 7,521 24,574
997 WASTE. STREAM
26.5% 43.8% 29.7% 100%
997 TONS 6,273 10,343 7,046 23,662
% 1996 WASTE STREAM 25.1% 43.1% 31.8% 100%
Detailed Comparison of Current and Proposed Rates
The actual percentage increase in the proposed rate depends on the type of service: The smallest increase
(1.49%) is. for the minimum 35 gallon residential service. The increase for the larger 64 and 96-gallon
residential carts is 3.88%. The greater increase, for the larger containers is designed to encourage residents
reduce their garbage service by increasing their recycling.
Commercial rates are increasing by approximately 3.75%, depending on the level of service. The increase
represents an effort to gradually increase Dublin's historically low commercial rates. Even with the increase,
Dublin's rates are at least 39% lower than the Tri-Valley average. 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 drop-box service rate increase is 5.26%. Drop-box disposal tonnage increased by nearly 60% from 1998
to 1999. Drop-box tonnage now represents approximately 40% of all waste generated in Dublin. Thc new
Construction and Demolition Debris Ordinance is intended to reduce the amount of this material going to
landfill; however, similar to the commercial rate, the loW drop-bOx rates make it difficult to encourage
recycling. The rate increase is intended to bring Dublin's rates closer to the Tri-Vatley average. The new drop-
box rates would still be 12% below the Tri,Valley average. The chart below compares the proposed rates to
the current rates for service levels which represent a majority of the subscribers in the City. The Proposed
~"-~tes would be effective July. 1, 2000.
COMPARISON OF SELECTED RATES PROPOSED VS. CURRENT
Residential-Monthly Rates
Minimum Residential (35) Gallon
64 Gallon Residential
% Dublin Customers Covered By
Sample Rate Categories
95%
Proposed Current % Increase
Dublin Rate over 1999
$ 10.20 $10.05 1.49%
'$ 18.75 ' : $i8.05 ' 3.88%
Additional Green Waste Recycling Can: $4.00 per,can per month'- (no change)
Multi-Family Recycling:
$ 0.57, per unit ~ $ 0.55 per unit
3.64%
Commercial-Monthly Rates
/,-.1. Yard - 1 time / wk
Yard - 1 time / wk
3 Yard - 1 time/wk
3 Yard - 2 times / wk
4 Yard - 1 Time/wk
4 Yards - 2 times / wk
% Dublin Customers Covered By
Sample Rate Commercial Categories
$ 34.70 $ 33.45
$, 69.40 $ -:66.90
$ 104.10 _ $ 100.35
$ 216.90 $ 209.15
$ 138.80 $ 133.80
286.30 $ 276.05
74%:
3.74%
3.74%
3.74%
3.71%
3.74%
3.71%
Drop Box - Rates Per Service
20 Yard Loose $ 240.00
30 Yard Loose. ' $ 360.00
40Yard Loose $ 480.00
Represents 91% Of 1999 non-compacted Drop BOX Subscriptions ~' '
30 Yard. Compacted $ 720.00 $ .684.00
Represents 81% of the 1998 compacted DroP'Box Subscriptions
$ 228.00 5.26%
$ ·342.00 ' ' 5.26%
.$ .456.00 5.26%
5.26%
Competitiveness of Dublin Rates ~vith Neighboring Agencies -
As shoTM in Attaclu-nent !, the proPosed City of Dublin rates remain very competitive Compared to rates
(/,~harged for similar serVices in. surrounding a0mmuhities~. In all cases, the City of'Dublin Service levels are at
.tst comparable,-and in some cas'es better:than the sui:vey cities. For example; :both LiV~rmore and
Pleasanton offer Residential Green Waste collection only every 0ther 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.
Requirements Under Proposition 218
Under the requirements of Proposition 218, the adoption or increase in property-related fees which are refuse
service fees, requires a 45-day notice to the parcel owners. The notice was mailed to all parcel owners on
June 16, 2000.
Proposition 218 has very specific criteria which must be considered prior to the adoption of this fee.
Specifically, Section 6(2) Property-Related Fees and Charges - states the following:
The agency shall conduct a public hearing upon the proposed fee or charge not less than 45 days after
mailing the notice of the proposed fee or charge to the record property owners of each identified parcel
upon which the fee or charge is proposed for imposition. At the public hearing, the agency shall
consider all protests against the proposed fee or charge. If the written protests against the fee or charge
are presented by a mai ority of owners of the identified parcels, the agen~y shall not impose the fee or
charge. .. ......
At the time the Agenda Statement was prepared, the City had received one (1) written protest.
Agreement with the City of Pleasanton Regardin~ Regulatory_ Fees
As part of the settlement of litigation over the expansion of the Altamont Landfill, Alameda County agreed to
impose new per-ton fees on LDD's parent corporation, Waste Management of Alameda County, Inc.
(WMAC), and to require LDD and WMAC to pass those fees to their franchisors and, thus, to the franchisors'
customers. LDD's proposed rate increases reflects the inclusion of those fees in its calculation of adjusted
target revenue.
Of the $1.25 per ton in fees now assessed by the County, $0.75 must be spent by a specially created
committee on the acquisition of open space. Twenty percent of the $0.75 will be allocated to the Dublin-
Pleasanton area. Pleasanton has voting representation on the committee that makes decisions about the use of
the fees. Dublin and Pleasanton are considering an agreement that provides that, in return for Dublin passing
the fees to its customers, PleasantOn Will use its position on the committee to vote that half of the funds for the
Dublin-Pleasanton area will be spent to acquire open space in Dublin, and that the properties acquired will be
approved by the Council. Neither city has yet approved that agreement.
Pleasanton's City Council is con§idering the agreement on August 1, 2000. The agreement is also on the
Dublin City Council's August 1 agenda with this proposed rate increase. The attached resolution authorizes
the full rate increase requested by LDD, if Pleasanton approves the agreement. It further provides that, if
Pleasanton does not approve the agreement, the City Manager is authorized' to reduce LDD's proposed
increased rates to reflect the rates that would result from not including the open space fees in LDD's adjusted
target revenue calculation.
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 update the calculation of any additional
written protests received. Following the Public Hearing, Staff' recommends that the City Council deliberate
and adopt the Resolution.
ATTA ~t,~M ENT I
(Prepared By Cily of Dublin July 2000)
Printed: 07/26/2000 9:42
Residential
1 Can Residential (32-35 Gallon)
2 Can Residential (64-70 Gallon)
2000 Garbage Rate Comparison Survey
# Dublin 3 City Proposed
Livermore Pleasanton San Ramon Average Dublin
% Proposed Current
From Avg Rate
$ 10.58 $ 20.04 $ 11.50 $ 14.04 $ 10.20 -27% $ 10.05
$ 19.73 $ t6.73 $ 18.23 $ 18.75 3% $ 18.05
Dublin Customers Covered By Sample Rate Categories: 95%
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
Livermore: Basic rate includes a 30-35-gallon can supplied by customer, picked up weekly; 96-gallon green waste can
supplied by LDD (eve _ry other week pick-up); weekly eurbside 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 Compan3
(picked up every other week); 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; ] extra green-waste pick-up per year; no special curbside clean-ups
3 City Proposed
Commercial Livermore Pleasanton San Ramon Average Dublin
1 Yard-] time/wk $ 41.66 $ 84.33 $ 70.00 $ 65.33 $ 34.70 -47% $ 33.45
2Yard-itime/wk $ 83.32 $ 168.55 $130.00 $127.29 $ 69.40 -45% $ 66.90
3 Yard - 1 time / wk $124.98 $ 240.82 $180.00 $181.93 $104.10 -43% $100.35
3 Yard- 2 times/wk $267.27 $ 445.36 $360.00 $357.54 $216.90 -39% $209.15
4Yard- 1 Time/wk $166.64 $ 313.54 $220.00 $233.39 $138.80 -41% $133.80
4 Yards - 2 times / wk $ 350.59 $ 586.26 $440.00 $458.95 $ 286.30 -38% $ 276.05
Dublin Customers Covered By Sample Rate Categories: 74%
Drop Box ~
20 Yard Loose $ 201.00 $ 314.80 $300.00 $271.93 $ 240.00 -12% $ 228.00
30 Yard Loose $ 301.50 $ 472.20 $ 450.00 $407.90 $ 360.00 -12% $ 342.00
40 Yard Loose $ 402.00 $ 629.60 $ 600.00 $ 543.87 $ 480.00 - 12% $ 456.00
30 Yard Compacted $ 603.00 $ 944.40 $ 900.00 $ 815.80 $ 720.00 -12% $ 684.00
% Dublin Customers Covered By Sample Rate Categories: 90%
Every effort hax been made to assure the accaracy of the information and comparison of similar levels of service according to our understanding of other agenqv rates.
% Increase
1999
1.49%
3.88%
3.74%
3.74%
3.74%
3.71%
3.74%
3.71%
5.26%
5.26%
5.26%
5.26%
ATTACHMENT 1
June 1.9, 2000
Attention: City Clerk
City of Dublin
P.O. Box 2340
Dublin, CA 94568
Dear Sir:
I am writing in regards to the recent Public Notice And Summary Regarding Proposed
Adoption Of Property Related Fees. My Assessor's Parcel Number is 941-01.83-060-00.
I am opposed to the proposed fee increases id Garbage Company Rates and Residential
Minimum Garbage/Recycling Services for the following reasons.
When I moved to Dublin 8 years ago, there were 4 free speciaI pickups throughom the
year. Residents were allowed to put out a wide variety of garbage to encourage people to clean
their yards of~msightly junk, as well as yard trimmings. This was an excellent program to
encourage civic pride city-wide. About two years ago, the program was reduced to 3 special
pickups for yard trimmings only. This has resulted in many houses in different Dublin
neighborhoods looking unsightly and unattractive. Because of subsequent rate increases, it has
also resulted in less service at a higher cost.
If Dublin were to return to the old program of 4 special pickups ofyardjtmk as well as
trhnmings, I would not oppose periodic rate increases. Thank you for you consideration.
Yours truly,
William F. Clark
8532 Ardmore Pl.
Dublin, CA 94568
ATTACHMENT 2
RESOLUTION NO. - O0
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING THE SCHEDULE OF SERVICE RATES
FOR INTEGRATED SOLID WASTE SERVICES AND
ESTABLISHING MINIMIIM 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 130-99 on July 6, 1999, which establi'shed
service rates to be effective 'July 1, 1999; and
WHEREAS, the Agreement provides*for consideration of the fourth adjustment to the rates in
accordance with specified formulas to be effective July 1, 2000;' and
WHEREAS, the currently proposed adjustments take into account regulatory fees imposed on
Waste Management as part of the settlement of litigation over its expansion of the Altamont Landfill; and
WHEREAS, the Cities of Dublin and Pleasanton are considering an agreement regarding the
expenditure of a portion of those regulatory fees on the acquisition of open space, which agreement neither
city has yet approved; and
WHEREAS, in accordance with California Constitution Article XIII C (Proposition 218) Section
(2) the City has provided written notice to 7,475 property owners listed by the Alameda County Assessor
on the Fiscal Year 1999-2000 tax roll at least 45 days prior to holding a public hearing; and
WHEREAS, the City received a total of 1 written protest 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
August 1, 2000.
NOW, THEREFORE, BE IT RESOLVED that, on the condition that the City Council of the
City of Pleasanton approves the agreement entitled "Agreement between the City of Dublin and The City
of Pleasanton Regarding Expenditures by the Open Space Advisory Committee Created by an Agreement
Settling LitigaTion over the Expansion of the Altamont Landfilt," 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~ if the City Council of the City of Pleasanton does not
approve the agreement entitled "Agreement between the City of Dublin and The City of Pleasanton
Regarding Expenditures by the Open Space Advisory Committee Created by an Agreement Settling
Litigation over the Expansion of the Altamont Landfill," the City Council of the City of Dublin authorizes
Attachment 3
the City Manager to reduce the rates shown in Exhibit A, but only by amounts equal to the portion of the
proposed increases attributable to taking the fees into account in calculating the increased rates.
BE IT FURTHER RESOLVED that, upon the effective date, July 1, 2000, 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 Ia day of August, 2000.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
K2/G/8-1-00/reso-garbagemtes.doc
Attachment 3
PROPOSED ADJUSTMENT TO GARBAGE COMPANY RATES
Affected Parcels
f___Chapter 5.32 of the Dublin Municipal Code requires for the protection of the health safety and welfare of the community
at 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 August 1, 2000 Public Hearing. Rates are effective July
1, 2000.
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:
$10.20
~,esidents 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 = $18.75 per month)
96 Gallon Garbage Container: Minimum Cost Plus $17.10 per month (Total = $27.30 per month)
Special Residential Services
Large Accumulations: $12.00 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: $12.00 per cubig yard
Commercial Can Service: Offered at locations unable to accommodate a commercial bin or with volumes deemed
insufficient to utilize a commercial bin. Monthly rateqncludes bin recital and once per week collection and disposal.
35 Gallon Container: $ 8.90 64 Gallon Container: $16.20 96 Gallon Container: $ 24.20
Multi-Family Recycling Service: Multi-Faro ily rates for Recycling are charged by the Company on the number of
~"mits located in the complex.
onthlv Cost: $ 0.57 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 1 $34.70 4 1 $138.80
1 2 $78.10 4 2 $286.30
1 3 $121.50 4 3 $433.80
1 4 $164.90 4 4 $581.30
1 5 $208.3 4 5 $728.80
2 1 $69.40 6 1 $208.20
2 2 $147.50 6 2 $425.10
2 3 $225.60 6 3 $642.00
2 4 $303.70 6 4 $858.90
2 5 $381.80 6 5 $1,075.80
3 1 $104.10 7 1 $242.90
3 2 $216.90 7 2 $494.50
3 3 $329.70 7 3 $746.10
3 4 $442.50 7 4 $997.70
3 5 $555.30 7 5 $1,249.30
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: $58.00
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 $12.00 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: $12.00 Compacted: $24.00
MISCELLANEOUS DROP BOX CHARGES
I Drop BoxFlasher [ Initial elacem, entofDrop Box I
$12.75 per placement $25.00
Stand-By Time
$85.10 per hr.
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