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HomeMy WebLinkAboutItem 7.6 Const & Demo Debris Rate Amend STAFF REPORT CITY CLERK File #600-30 CITY COUNCIL DATE:July 17, 2012 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJECT: Construction & Demolition (C&D) Debris Collection Rate Amendment Prepared by Roger Bradley, Assistant to the City Manager EXECUTIVE SUMMARY: The City Council will consider a reducing the cost and adding additional service level options for the collection of Construction & Demolition (C&D) debris by Amador Valley Industries. FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution amending the rates for C&D debris collection services. Submitted By Reviewed By Assistant to the City Manager Assistant City Manager DESCRIPTION: At the City Council meeting on June 19, 2012, the City Council adopted the collection rates for all solid waste services provided within the City of Dublin. Construction & Demolition (C&D) debris collection is a subset of the rates that were adopted. Since the rate adoption, Staff has been approached by Amador Valley Industries (AVI) with a request to amend the rates for cardboard and wood collection service. C&D collection for cardboard and wood have a tiered cost structure where the larger bins cost less on a per cubic yard basis than smaller bins, with the intent that the smaller bins would be picked up more frequently and, therefore, would have a higher per collection charge. However, AVI has indicated that most customers are electing to go with the largest bin size to reduce their cost of collection, which is having the unintended consequences of depleting the supply of the largest size bins, especially where smaller bins would have normally been chosen by the customer. Thus, AVI is proposing to amend the rate schedule to have one consistent per cubic yard rate for the collection of C&D cardboard and wood debris. Currently, the largest bin, which is the cheapest, costs $11.12 per cubic yard, and ITEM NO. 7.6 Page 1 of 2 AVI is proposing that this rate be applied to all service levels, thereby, reducing the cost of collection services for smaller bins, and removing the disincentive for smaller bins. In addition, AVI has proposed to add additional bin options for the collection of mixed C&D debris, in order to provide customers with greater service selection. The rate change impact is depicted below. Proposed C&D Rate and Service Level Changes Per Per Cardboard & Wood C&D Current Cubic Proposed Cubic Service Levels Rate Yard Rate Yard 20 Cubic Yards $259.55 $12.97 $222.40 $11.12 30 Cubic Yards $355.39 $11.84 $333.60 $11.12 40 Cubic Yards $444.94 $11.12 $444.80 $11.12 New Mixed C&D Service Levels 4 Cubic Yards - - $87.36 $21.84 6 Cubic Yards - - $131.04 $21.84 7 Cubic Yards - - $152.88 $21.84 Staff supports this request and believes it will ultimately save money and provide greater customer service to C&D users. For that reason, Staff recommends adoption of the Resolution amending the rate schedule for C&D collection services. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution amending the rates for C&D debris collection services Page 2 of 2 RESOLUTION NO. XX -12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * AMENDING THE SCHEDULE OF SERVICE RATES FOR CERTAIN CONSTRUCTION AND DEMOLITION DEBRIS COLLECTION SERVICES WHEREAS, the City of Dublin executed a Collection Service Agreement wit 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 iden Agreement; and WHEREAS,the City Council adopted the initial rate schedule with Resoluti 05 at a noticed public hearing on May 3, 2005 and the Agreement Council is responsible for establishing all rates; WHEREAS, on June 19, 2012, the City Council conducted a noticed public hearing prior to the adoption of the new rate schedule;and WHEREAS,AVI has requested to reduce the per cubic yard rate for cardboar and wood construction and demolition debris collection services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the Rate Schedule for construction and services attached hereto, marked Exhibit Aand by reference made BE IT FURTHER RESOLVED that, while AVI may not charge a rate for these services in excess of the established rates, nothing shall prohi rate less than the established amount. BE IT FURTHER RESOLVED that, upon the effective date, July 17, 2012, this resolution shall supersedeall previous resolutions adopting rate demolition debris collection services, and the rates adopted by continue from year to year. PASSED, APPROVED AND ADOPTED this 17thday of July, 2012, by the following vote: AYES: NOES: ATTACHMENT 1 1 ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 2 CONSTRUCTION & DEMOLITION (C&D) DEBRIS BOX SERVICES Material TypeMaterial Type Cubic YardsRateCubic YardsRate Concrete & AsphaltMixed C&D Clean6$333.70Mixed4$87.36 Mixed6$399.45Mixed6$131.04 Mixed7$152.88 Mixed15$345.00 Cardboard Clean20$222.40Mixed20$460.00 Clean30$333.60Mixed30$690.00 Clean40$444.80Mixed40$920.00 DirtMetal Clean6$333.57Metal20$259.55 Mixed6$399.45Metal30$296.63 Metal40$370.78 20$532.60 Drywall Stucco Clean6$333.70 Wood Clean20$222.40Mixed6$399.45 Clean30$333.60 Clean40$444.80 Costs shown are on a per pick-up basis C&D Debris Box Service: Rate Resolution Exhibit A