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HomeMy WebLinkAboutItem 6.2 Waste Mgmt Benchmark Svc Feeor 19 82 /ii � 111 DATE: TO: FROM: STAFF REPORT CITY COUNCIL November 5, 2013 Honorable Mayor and City Councilmembers Joni Pattillo City Manager""' CITY CLERK File #1030 -20 SUBJECT: Public Hearing: Adoption of Rates for Garbage Collection, Disposal, and Recycling Services and Adding the Alameda County Waste Management Authority Benchmark Information Services Fee Prepared by Roger Bradley, Assistant to the City Manager EXECUTIVE SUMMARY: At the City Council meeting on June 18, 2013, the City Council adopted the rates for solid waste collection services for the City of Dublin for Fiscal Year 2013 -2014. However, the rates approved by the City Council did not include a fee for benchmark information services, which was adopted by the Alameda County Waste Management Authority. The City Council will consider adopting a resolution amending the garbage rates to include the benchmark information services fee. FINANCIAL IMPACT: The proposed rate amendment includes no cost changes to any solid waste rates within the City of Dublin. The Benchmark Information Service Fee financial impact to rate payers is proposed to be offset by subsidizing a portion of the costs for solid waste services to each customer using City Measure D revenues during Fiscal Year 2013 -2014 in an estimated amount of $35,000. RECOMMENDATION: Staff recommends that the City Council: 1) Adopt the Resolution Amending the Schedule for Service Rates for Integrated Solid Waste Services; and 2) Adopt the Budget Change Form. Submitted By Assistant to the City Manager Reviewed By Assistant City Manager Page 1 of 3 ITEM NO. 6.2 DESCRIPTION: On June 18, 2013, the City Council adopted rates for solid waste services for the City of Dublin for Fiscal Year 2013 -2014. At the time of rate adoption, the rates did not include a fee for services adopted by the Alameda County Waste Management Authority (StopWaste) known as the Benchmark Information Services Fee (Fee). The Fee is designed to fund StopWaste's development of comparative programmatic solid waste data for County residents. By way of overview, the services provided by the Fee include informing a resident about how to conduct a study of the waste generated by his or her household or business for comparison to Citywide solid waste data. After completing the generation study, a resident would then be more informed about how well he or she is recycling compared to his or her neighbors. StopWaste has asked the City and its franchised hauler, Amador Valley Industries, to collect the Fee on its behalf. The City Council has previously considered the Fee and determined that StopWaste does not have the legal authority to force the City and its Hauler to collect it. StopWaste has likewise asserted that it has the legal authority to compel collection of the Fee. As a result of the opposing viewpoints and to avoid litigation, the City and StopWaste have entered into a settlement agreement whereby the City will collect the fee for a period of three years, at which time StopWaste will take certain actions to evaluate the appropriateness of the Fee, with the City retaining its legal assertion that it cannot be compelled to collect the fee. The Benchmark Information Fee is set by StopWaste at $1.81 per residential and commercial cart customer, $7.24 per commercial account, which generates less than 4 cubic yards of collection service per week, and $21.72 per commercial account generating 4 or more cubic yards of collection services each week. This results in a need for the City to recover $31,038 from the rates based on a collection census provided by the City solid waste hauler Amador Valley Industries (AVI), which amount would be passed on to StopWaste. Customer Category Fee Per Customer Customer Census Total Residential Cart $1.81 11,620 $21,032.20 Commercial Cart $1.81 88 $159.28 Commercial < 4 yards $7.24 289 $2,092.36 Commercial > = 4 yards $21.72 357 $7,754.04 Total $31,037.88 Of the total amount, $21,032 is estimated for residential customers, and the remaining balance ($10,006) is to be collected from commercial customers. In order to be conservative and ensure adequate funds are budgeted to account for any growth or migration in services during the year, an approximate 15% contingency has been included for a total estimated budget of $35,000. A budget change form in an amount of $35,000 from the City's Measure D Recycling Funds is included for the City Council's consideration (Attachment 1). As allowed under the Benchmark Information Services Fee Resolution, Staff proposes to offset the financial impact of the Fee to rate payers by offsetting a portion of the costs for solid waste services to each customer using City funds. Thus, the proposed rate resolution (Attachment 2) contains the same rates for all rate categories as the rate resolution adopted by the City Council on June 18, 2013 (see Attachment 3 for comparison). Staff recommends that the City Council adopt the proposed rates. Page 2 of 3 NOTICING REQUIREMENTS /PUBLIC OUTREACH: A notice was placed in the Valley Times on October 26, 2013 and November 2, 2013, notifying the community of the City Council's consideration of the proposed rates. ATTACHMENTS: 1. Budget Change Form 2. Resolution Amending the Schedule of Service Rates for Integrated Solid Waste Services 3. Resolution 106 -13 — Adopting Solid Waste Service Rates for Fiscal Year 2013 -2014 Page 3 of 3 RESOLUTION NO. XX - 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * ** AMENDING THE SCHEDULE OF SERVICE RATES FOR INTEGRATED SOLID WASTE SERVICES WHEREAS, the Alameda County Waste Management Authority (ACWMA) adopted a Benchmark Information Service Fee (FEE) on June 20, 2012, which is designed to generate revenue to be used to provide residents with generalized programmatic solid waste data to determine how well their recycling efforts compare vis -a -vis their neighbors; and WHEREAS, the City of Dublin contends that the ACWMA does not have the legal authority to require that the City and its hauler collect the FEE on behalf of the ACWMA; and WHEREAS, the ACWMA believes that it does have the legal authority to require that the City and its hauler collect the FEE; and WHEREAS, in order to avoid litigation, the City agreed, in exchange for certain commitments from ACWMA, to collect the FEE from Fiscal Year 2013 -2014 through Fiscal Year 2015 -2016; and WHEREAS, under the terms of the resolution adopting the FEE, the City may choose in any given year to offset the impact of the FEE on residents and businesses with funds other than those directly paid by the ratepayer. This process is consistent with the subsidy process included within that certain rate adjustment model as outlined within the Collection Service Agreement for solid waste collection services within the City of Dublin; and WHEREAS, the City of Dublin has executed a Collection Service Agreement with Amador Valley Industries (AVI) on January 12, 2005; and WHEREAS, the Collection Service Agreement requires the City Council to adopt a rate schedule, which is estimated to produce a specified revenue amount as identified in the Agreement; and WHEREAS, the City Council adopted the initial rate schedule with Resolution 68- 05 at a noticed public hearing on May 3, 2005, and the Agreement provides that the City Council is responsible for establishing all rates; and WHEREAS, the Agreement with AVI provides for an adjustment to the rates each July 1St in accordance with specified formulas; and ATTACHMENT 2 WHEREAS, on June 18, 2013, the City Council conducted a noticed public hearing and adopted the new rate schedule for Fiscal Year 2013 -2014; and WHEREAS, the FEE was not included within the new rate schedule for Fiscal Year 2013 -2014, and following a noticed public hearing held November 5, 2013, the City desires to include the FEE within the rates in Fiscal Year 2013 -2014 and through Fiscal Year 2015 -2016; and WHEREAS, for Fiscal Year 2013 -14, the City will offset the financial impact of the FEE to ratepayers by offsetting a portion of the AVI and /or City costs for solid waste services to each customer using City funds. NOW, THEREFORE, BE IT RESOLVED that 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, while AVI may not charge a rate for solid waste collection services in excess of the established rates, nothing shall prohibit AVI from charging a rate less than the established amount, provided that the FEE is not diminished by such changes to the solid waste rates. BE IT FURTHER RESOLVED that, upon the effective date, November 5, 2013, 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. AYES- NOES- ABSENT- ABSTAIN: ATTEST: City Clerk FA Mayor 2013/14 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. Amador Valley Industries, Inc. is the authorized garbage collection and disposal firm operating within the City. The agreement between the City of Dublin and Amador Valley Industries, Inc. 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. Rates are effective July 1, 2013. Basis of Fees The City has negotiated a multi -year agreement with Amador Valley Industries, Inc. The Company may request a change in rates based upon a formula which includes: changes in the Refuse Rate 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. Note: The StopWaste Benchmark Information Service Fee (Alameda County Waste Management Authority Resolution #WMA 2012 -06) has been included for collection in the rates across all residential and commercial service rate categotories. 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 32 gallons of garbage capacity, including once per week collection and disposal; Weekly Curbside Residential Recycling; and Weekly Curbside Green Waste Recycling Large Item Collection Service; and access to an Annual HHW drop -off event. All containers are provided by the Company. Minimum Monthly Rate : $ 20.31 (Rate includes $0.35 retained by City for preparing tax roll / collection.) Residents may select a larger garbage container for an additional fee which is shown below: 64 Gallon Garbage Container: Minimum Cost Plus $17.00 per month (Total = $ 37.31 per month) 96 Gallon Garbage Container: Minimum Cost Plus $33.99 per month (Total = $ 54.30 per month) Residents may request a second garbage container which will be charged at the same rate as a first container based on the size Second Container: requested. Additional Large Item Collection: Residents may request additional large item collection services for a fee of : $ 13.35 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. 32 Gallon Container: $23.04 64 Gallon Container: $42.29 96 Gallon Container: $61.52 Commercial Bin Service Rates Rates shown on the following page are monthly rates based upon bin size and frequency of service. Rates include collection, disposal, and bin rental. Rate Resolution Exhibit A Size # Times Size # Times # Yards Per Wk Base Monthly Rate # Yards Per Wk Base Monthly Rate 1 1 $98.54 4 1 $394.16 1 2 $221.60 4 2 $812.84 1 3 $344.66 4 3 $1,231.52 1 4 $467.72 4 4 $1,650.20 1 5 $590.78 4 5 $2,068.88 1 6 $713.84 4 6 $2,487.56 2 1 $197.08 6 1 $591.24 2 2 $418.68 6 2 $1,207.00 2 3 $640.28 6 3 $1,822.76 2 4 $861.88 6 4 $2,438.52 2 5 $1,083.48 6 5 $3,054.28 2 6 $1,305.08 6 6 $3,670.04 3 1 $295.62 7 1 $689.78 3 2 $615.76 7 2 $1,404.08 3 3 $935.90 7 3 $2,118.38 3 4 $1,256.04 7 4 $2,832.68 3 5 $1,576.18 7 5 $3,546.98 3 6 $1,896.32 7 6 $4,261.28 Organic material is charged at 50% of the Commercial Service rate. OTHER COMMERCIAL SERVICES: Rates for additional requested services. Container Push: $ 8.96 Lock & Key: $ 5.38 Excess Waste (Cu. Yd): $ 29.42 per Cubic Yard Excess Cart Exchange: $ 8.96 Excess Bin Exchange: $ 35.86 Excess Bin Cleaning: $ 44.80 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: $128.93 Additional Bin Rental Per Week: $29.80 Per Week Cost For Additional Dump: $93.47 Per Pick -up Excess Per Yard If Filled Above Water Level $29.42 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 (Excess is charged the same rate). Additional Miscellaneous charges may also apply. Rate Per Cubic Yard: Non - Compacted: $27.73 Compacted: $55.46 Organic material is charged at 50% of the non - compacted or compacted rate as appropriate. MISCELLANEOUS DROP BOX CHARGES Relocation of Drop Box $76.20 Per Request Weekly Drop Box Container Rental - After 1 st Week $29.80 Per Week Cancel Auto Pick -up Without Notice $96.00 Per Event Handy Hauler Extra Week Rental $29.80 Per Week Standby Time $125.12 Per Hour Rate Resolution Exhibit A CONSTRUCTION & DEMOLITION (C &D) DEBRIS BOX SERVICES C &D Debris Box Service: Costs shown are on a per pick -up basis Material Type Cubic Yards Rate Concrete & Asphalt Clean 6 $382.58 Mixed 6 $457.96 Cardboard Clean 20 $255.00 Clean 30 $382.50 Clean 40 $510.00 Dirt Clean 6 $382.43 Mixed 6 $457.96 Drywal I Clean 20 $610.61 Wood Clean 20 $254.98 Clean 30 $382.46 Clean 40 $509.95 Material Type Cubic Yards Rate Mixed C &D Mixed 4 (1/2 Full) $5006 Mixed 4 $100.12 Mixed 6 (1/2 Full) $75.09 Mixed 6 $150.18 Mixed 7 (1/2 Full) $8761 Mixed 7 $175.21 Mixed 15 $395.40 Mixed 20 $527.20 Mixed 30 $790.80 Mixed 40 $1,054.40 Metal Metal 20 $297.56 Metal 30 $340.08 Metal 40 $425.09 Stucco Clean 6 $382.58 Mixed 6 $457.96 Rate Resolution Exhibit A RESOLUTION NO. 106 -13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING THE SCHEDULE OF SERVICE RATES FOR INTEGRATED SOLID WASTE SERVICES WHEREAS, the City of Dublin executed a Collection Service Agreement with Amador Valley Industries (AVI) on January 12, 2005; and WHEREAS, the Agreement requires the City Council to adopt a rate schedule, which is estimated to produce a specified revenue amount as identified in the Agreement-, and WHEREAS, the City Council adopted the initial rate schedule with Resolution 68- 05 at a noticed public hearing on May 3, 2005 and the Agreement provides that the City Council is responsible for establishing all rates; and WHEREAS, the Agreement with AVI provides for an adjustment'to the rates each July 1st in accordance with specified formulas; and WHEREAS, the City has calculated the required rate adjustment necessary to generate the agreed to compensation and applied not more than a 4.2% adjustment to the residential, commercial, roll-off, and other collection service rates, with the exception of construction and demolition debris services, which adjustment is not more than 14.7% -, and WHEREAS, on June 18, 2013, the City Council conducted a noticed public hearing prior to the adoption of the new rate schedule. NOW, THEREFORE, BE IT RESOLVED that 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, while AVI may not charge a rate for these services in excess of the established rates, nothing shall prohibit AVI from charging a rate less than the established amount. BE IT FURTHER RESOLVED that, upon the effective date, July 1, 2013, 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. Page 1 of 2 PASSED, APPROVED AND ADOPTED this 18th day of June, 2013, by the following vote: AYES: Councilmembers Biddle, Gupta, Hart, Haubert, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None ATTM , P City Clerk Reso No. 106-13, Adopted 6-18-13, Item 6.2 Page 2 of 2 Mayor 2013/14 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. Amador Valley Industries, Inc. is the authorized garbage collection and disposal firm operating within the City. The agreement between the City of Dublin and Amador Valley Industries, Inc. provides that the Clty 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 tees will affect all parcel owners. Rates are effective July 1, 2013. Basis of Fees The City has negotiated a multi -year agreement with Amador Valley Industries, Inc. The Company may request a change in rates based upon a formula which includes: changes in the Refuse Rate Index; Increased Regulatory Fees; and changes In the total tons delivered to the Lancifilt. The additional costs of each of these components has Won allocated to the three classes of service: Residential; Commercial Bin Service; and Drop Box/Compactor. 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 32 gallons of garbage capacity, including once per week collection and disposat; Weekly Curbside Residentlal Recycling; and Weekly Curbside Green Waste Recycling Large Item Collection Service; and access to an Annual HHW drop -alt event. All containers are provided by the Company. Minimum Monthly Rate : $ 20.31 (Rate includes $0.35 retained by City for preparing tax roll/ collection.) Residents may select a larger garbage container for an additional fee which is shown below: 64 Gallon Garbage Container: Minimum Cost Plus $17.00 per month (Total = 3 37.31 per month) 96 Gallon Garbage Container: Minimum Cost Plus $33.99 per month (Total = $ 54.30 per month) Residents may request a second garbage container which will be charged at the same rate as a first container based on the size Second Container: requested. Additional Large Item Collection: Residents may request additional large item collection services for a fee of : $ 13.35 per Cubic Yarc 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. 32 Gallon Container; $23.04 64 Gallon Container: $42.29 96 Gallon Container: $61.52 Commercial Bin Service Rates Rates shown on the following page are monthly rates based upon bin size and frequency of service. Rates include collection, disposal, and bin rental. Rate Resolution Exhibit A Size # Times Size # Times Organic material }s charged at 50% of the non - compacted or Compacted # Yards Per Wk Base Monthly Rate # Yards Per Wk Base Monthly Rate 1 1 $98.54 4 1 $394.16 1 2 $221.60 4 2 $812.84 1 3 $344,66 4 3 $1,231.52 1 4 $467.72 4 4 $1,650.20 1 5 $590.78 4 5 $2,068.88 1 6 $713.84 4 6 $2,487.56 2 1 $197.08 6 1 $591.24 2 2 $418,68 6 2 $1,207.00 2 3 $640.28 6 3 $1,822.76 2 4 $861.88 6 4 $2,438.52 2 5 $1,083.48 6 5 $3,054,28 2 6 $1,305.08 6 6 $3,670.04 3 1 $295.62 7 1 $68918 3 2 $615,76 7 2 $1,404.08 3 3 $935 -90 7 3 $2,118.38 3 4 $1,256.04 7 4 $2,832.68 3 5 $1,576.18 7 5 $3,546.98 3 6 $1,896.32 7 6 $4,261.28 Organic material Is charged at 50% of the Commercial Service rate. OTHER COMMERCIAL SERVICES: Rates for additional requested services, Container Push: $ 8.96 Lock & Key: $ 5.38 Excess Waste (Cu. Yd): $ 29.42 per Cubic Yard Excess Cart Exchange: $ 8.96 Excess Bin Exchange: $ 35.86 Excess Bin Cleaning: $ 44.80 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: $128,93 Additional Bin Rental Per Week: $29.80 Per Week Cost For Additional Dump: $93.47 Per Pickup Excess Per Yard It Filled Above Water Level $29.42 Per Cubic Yard DROP BOX I COMPACTOR RATES: Cost shown Is on a per pick -up basis and is based upon the load not exceeding water level (Excess Is charged the same rate). Additional Miseeltaneous charges may also apply. Rate Per Cubic Yard: Non - Compacted: $27.73 Compacted: $55.46 Organic material }s charged at 50% of the non - compacted or Compacted rate as appropriate, MISCELLANEOUS DROP BOX CHARGES Relocation of Drop Box $75.20 Per Request Weekly Drop Box Container Rental • After 1st Week $29.80 Per Week Cancel Auto Pick -Up Without Notice $98.00 Per Event Handy Hauler Extra Week Rental $29.817 Per Week Standby Time $125.12 Per Hour Rate Resolution. Exhibit A C &D Debris Box Servit:e: Casts shown are on a per pick -up basis Material Type Cubic If Rate Material Type Cubic Yards Rate Concrete & Asphalt .................._ ^� Clean 6 $382.58 Mixed 6 $457.96 Cardboard Clean 20 $255.00 Clean 30 $382.50 Clean 40 $510.00 Dirt _ Clean 6 $382.43 Mixed 6 $457.96 Drywall Clean 20 $610.61 Wood Clean 20 $254.98 Clean 30 $33246 C {ean 40 $509.95 Mixed C &D Mlxcd 4 (112 Full) $5006 Mixed 4 $10012 Mixed 6 (112 Full) $7509 Mixed 6 $150.18 Mixed 7 (112 Full) $87.61 Mixed 7 $175.21 Mixed 15 $395.40 Mixed 20 $527.20 PAlxed 30 $790.80 PAlxed 40 $1,054.40 Metal _ Metal~ 20 $297,56 Metal 30 $340.08 Metal 40 $425.09 Stucco .. Clean 6 $382.58 Mixed 6 $45796 Rate Resotution Exhibit A CITY OF DUBLIN FISCAL YEAR 2013 -14 BUDGET CHANGE FORM Budget Change Reference #: From Un- Appropriated Reserves X Budget Transfer Between Funds Other Account Amount Account Amount Measure D -Waste Management - Contract Services 2302.5101.64001 $35,000 At the November 5, 2013 City Council meeting, Staff recommended and the City Council approved the utilization of Measure D fund to subsidize City of Dublin residents and businesses the Benchmark Information Services Fees adopted by the Alameda County Waste Management Authority (StopWaste) Posted By: CAUsers \agenda \Desktop \Item 6.2 Attch 4 Item 6.2 Attch 4 As Presented at the City Council Meeting 11/5/2013 Date: