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Home My WebLink AboutRes 93-58 Solid Waste and Recycling Collectiion Rates / INTEROFFICE MEMORANDUM CITY OF PALM DESERT TO: CITY COUNCIL AND CITY MANAGER FROM: ENVIRONMENTAL CONSERVATION MANAGER SUBJECT: RESOLUTION SETTING SOLID WASTE AND RECYCLING COLLECTION RATES AND AMENDING THE COUNTY OF RIVERSIDE LANDFILL CHARGE DATE: JUNE 24 , 1993 Recommendation: 1 . By minute motion, ratify a 3 . 1% solid waste collection rate increase, pursuant to the independent audit performed by Lund and Guttry as mandated by the Palm Desert Municipal Code and the City' s exclusive franchise agreement . 2 . Waive further reading and adopt Resolution No. 93-58 rescinding Resolution No. 91-133 and Resolution No. 92-50 pertaining to the County of Riverside Landfill tipping fee increase and the Solid Waste and Recycling collection charge increase, respectively. Background: Waste Management of the Desert is requesting two increases this fiscal year, a landfill tipping fee increase and solid waste service rate increase. Landfill Tipping Fee The County of Riverside Board of Supervisors has passed a resolution increasing the landfill tipping fee from $31 . 50 per ton to $34 . 50 per ton effective July 1, 1993 . This 9 . 5% increase is due to an increase in costs of providing the service of landfilling solid waste at all County landfill facilities . The County landfill tipping fee is a "pass through" charge, as the City and Waste Management does not govern these rate increases . The County tipping fee increase of 9 . 5% will increase the residential collection surcharge $0 . 27 per month. Solid Waste and Recycling Service Increase On April 16 , 1993, Waste Management of the Desert requested a service increase of 5 . 47% . The franchise agreement states that Waste Management may request refuse rate increases once a year CITY COUNCIL AND CITY MANAGER JUNE 24 , 1993 during the month of April to reflect ordinary changes in the cost of doing business as measured by CPI , in the amount equal to 50% CPI from March to March in the Los Angeles area. The CPI for this year in this area is 3 . 0% . Therefore, under this provision Waste Management is entitled to a 1 . 5% "automatic" increase. In lieu of the 50% CPI increase, the agreement allows Waste Management to petition the City for a rate increase on the basis of unusual changes or extraordinary increases in operation cost . Waste Management retained the CPA firm of Thomas , Bigbie and Smith to prepare a financial statement justifying a 5 . 47% increase for this year (Attachment 1 ) . The City retained an independent auditor to review Waste Management ' s books and financial statements . The firm of Lund & Guttry was selected by the City to prepare a Waste Management rate study at Waste Management expense. The rate study indicated a net operating expense increase of 3 . 1% (Attachment 2 ) The difference between the 5 . 47% requested rate increase and the 3 . 1% recommended rate increase is primarily due to the phrase within the agreement stating "recycling shall be provided at no additional cost to the residents and businesses . " The last audit performed on Waste Management was in 1989 . The City negotiated an agreement without an increase in the service rate in 1989 . The City has ratified the 50% CPI service rate increase in 1991 and 1992 . Staff recommends that the City Council ratify a 3 . 1% solid waste collection rate increase and waive further reading and adopt the attached resolution setting the solid waste collection service rate and County landfill tipping fee surcharge increase. REVIEWED AND CONCUR: C\ 4idpiimai,(77,/ ) JO M. WOHLMUTH BRUCE A. ALTMAN EN RONMENTAL CONSERVATION MANAGER CITY MANAGER JMW/rgf CITY COUNCIL TION: APPROVED DENIED RECEIVED OTHER MEETING DA`i'Ea VA7) • VIES: ADSTAIN: 00 2 — VERIFIED BY: C��q�IY�-� Original on File witji City Clerk' s Office • PALM DESERT PALM DESERT CURRENT SERVICE RATE PROPOSED SERVICE RATE FREQUENCY 1 2 3 4 5 6 FREQUENCY 1 2 3 4 5 6 BIN SIZE BIN SIZE 2 39.49 65.89 92.45 118.62 145.03 197.72 2 40.71 67.93 95.32 122.30 149.53 203.85 3 49.27 80.83 113.90 143.07 176.26 207.39 3 50.80 83.34 117.43 147.51 181.72 213.82 4 65.89 100.37 137.20 174.09 211.07 242.53 4 67.93 103.48 141.45 179.49 217.61 250.05 6 98.85 150.51 205.80 261.10 316.56 363.76 6 101.91 155.18 212.18 269.19 326.37 375.04 CURRENT DUMP SURCHARGE PROPOSED DUMP SURCHARGE FREQUENCY 1 2 3 4 5 6 FREQUENCY 1 2 3 4 S 6 BIN SIZE BIN SIZE 2 15.17 30.20 45.35 60.49 75.67 90.69 2 16.61 33.08 49.67 66.25 82.87 99.32 3 22.53 45.35 66.66 90.69 113.37 136.04 3 24.67 49.67 73.01 99.32 124.16 148.99 4 30.20 60.52 90.69 121.01 151.06 181.25 4 33.08 66.28 99.32 132.53 165.44 198.51 6 45.06 90.69 136.05 181.39 226.87 272.08 6 49.35 99.32 149.00 198.66 248.47 297.98 CURRENT TOTAL RATE PROPOSED TOTAL RATE FREQUENCY 1 2 3 4 5 6 FREQUENCY 1 2 3 4 5 6 BIN SIZE BIN SIZE 2 54.66 96.09 137.80 179.11 220.70 288.41 2 57.33 101.01 144.98 188.55 232.40 303.17 3 71.80 126.18 180.56 233.76 289.63 343.43 3 75.47 133.00 190.44 246.83 305.89 362.81 4 96.09 160.89 227.89 295.10 362.13 423.78 4 101.01 169.76 240.78 312.02 383.05 448.55 6 143.91 241.20 341.85 442.49 543.43 635.84 6 151.26 254.50 361.18 467.85 574.84 673.02 CURRENT ADDITONAL CHARGES PROPOSED ADDITONAL CHARGES 2-YARD BIN-EXTRA EMPTY 24.45 2-YARD BIN-EXTRA EMPTY 25.43 3-YARD BIN-EXTRA EMPTY 34.41 3-YARD BIN-EXTRA EMPTY 35.81 4-YARD BIN-EXTRA EMPTY 46.05 4-YARD BIN-EXTRA EMPTY 47.92 6-YARD BIN-EXTRA EMPTY 68.87 6-YARD BIN-EXTRA EMPTY 71.68 HANDLING CHARGE(PER PICKUP) 4.59 HANDLING CHARGE(PER PICKUP) 4.73 LOCKING CONTAINER 47.32 LOCKING CONTAINER 48.79 RE-START FEE 10.86 RE-START FEE 11.20 RETURNED CHECK FEE 10.21 RETURNED CHECK FEE 10.53 PALM DESERT PALM DESERT CURRENT ROLLOFF RATE PROPOSED ROLLOFF RATE RENTAL RATES - PER RENTAL RATES - PER RATE• DAY AFTER 7 DAYS RATE• DAY AFTER 7 DAYS 20YARDS 67.19 9.60 20YARDS 69.27 9.90 30 YARDS 91.09 13.01 30 YARDS 93.91 13.42 40YARDS 107.83 15.40 40YARDS 111.17 15.88 •PLUS DUMP FEES CHARGED AT ACTUAL+ 10% •PLUS DUMP FEES CHARGED AT ACTUAL + 10% • • PALM DESERT PALM DESERT CURRENT RESIDENTIAL RATE PROPOSED RESIDENTIAL RATE SINOLB FAMILY HOME SINGLE FAMILY HOME CURB SERVICE 6.79 DUMP SURCHARGE 2.88 CURB SERVICE 7.00 DUMP SURCHARGE 3.15 WALK-IN SERVICE 8.85 DUMP SURCHARGE 2.88 WALL-IN SERVICE 9.12 DUMP SURCHARGE 3.15 CENTRAL ONE-STOP LOCATION OF TRASH CENTRAL ONE-STOP LOCATION OF TRASH CURB SERVICE CURB SERVICE FIRST UNIT 6.79 DUMP SURCHARGE 2.88 FIRST UNIT 7.00 DUMP SURCHARGE 3.15 EACH ADDITIONAL 3.69 DUMP SURCHARGE 2.88 EACH ADDITIONAL 3.80 DUMP SURCHARGE 3.15 WALK-IN SERVICE WALK-IN SERVICE FIRST UNIT 8.85 DUMP SURCHARGE 2.88 FIRST UNIT 9.12 DUMP SURCHARGE 3.15 EACH ADDITIONAL 5.75 DUMP SURCHARGE 2.88 EACH ADDITIONAL 5.93 DUMP SURCHARGE 3.15 OTHER THAN CENTRAL LOCATION OF TRASH OTHER THAN CENTRAL LOCATION OF TRASH CURB SERVICE CURB SERVICE FIRST UNIT 6.79 DUMP SURCHARGE 2.88 FIRST UNIT 7.00 DUMP SURCHARGE 3.15 EACH ADDITIONAL 4.35 DUMP SURCHARGE 2.88 EACH ADDITIONAL 4.48 DUMP SURCHARGE 3.15 WALK-IN SERVICE WALK-IN SERVICE FIRST UNIT 8.85 DUMP SURCHARGE 2.88 FIRST UNIT 9.12 DUMP SURCHARGE 3.15 EACH ADDITIONAL 7.44 DUMP SURCHARGE 2.88 EACH ADDITIONAL 7.67 DUMP SURCHARGE 3.15 MOBILE HOME PARKS MOBILE HOME PARKS CURB SERVICE CURB SERVICE EACH UNIT 5.65 DUMP SURCHARGE 2.88 EACH UNIT 5.83 DUMP SURCHARGE 3.15 WALK-IN SERVICE WALK-IN SERVICE EACH UNIT 7.93 DUMP SURCHARGE 2.88 EACH UNIT 8.18 DUMP SURCHARGE 3.15 CURRENT ADDITONAL CHARGES PROPOSED ADDITONAL CHARGES RE-START FEE 10.86 RE-START FEE 11.20 RETURNEDCHECK FEE 10.21 RETURN ED C HECK FEE 10.53