HomeMy WebLinkAboutRes 97-54 Solid Waste and Residential Recycing i
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CITY OF PALM DESERT
INTEROFFICE MEMORANDUM
TO: THE HONORABLE MAYOR, CITY COUNCIL AND CITY MANAGER
FROM: JOHN M. WOHLMUTH, ASSISTANT CITY MANAGER
LISA V. CONSTANDE, ENVIRONMENTAL CONSERVATION MANAGER
DATE: JUNE 26, 1997
SUBJECT: WASTE MANAGEMENT OF THE DESERT REQUEST FOR CONSUMER PRICE
INDEX (CPI) INCREASE FOR SERVICE RATE
RECOMMENDATION
1 . Waive further reading and adopt Resolution No. 97-54 authorizing the following:
A. Adoption of the new solid waste collection and residential recycling
service rate structure with Consumer Price Index (CPI) increase
request of .8% submitted by Waste Management of the Desert
(Exhibit A); and
B. Rescind Resolution No. 96-56 pertaining to the Riverside County
Waste Resource Management District's (RCWRMD) landfill tipping
fee decrease and the solid waste collection and residential recycling
service charge increase, respectively; and
2. By minute motion:
Direct the City's franchised waste hauler, Waste Management of the Desert, to remit funds
collected under the RCWRMD's landfill tipping fee reduction to the City for deposit in a special
fund entitled, "Waste and Recycling Fee."
BACKGROUND
On April 29, 1997, Waste Management of the Desert (WMD) requested a service rate increase of .8%
(EXHIBIT A) effective July 1, 1997. The contract states that WMD may request a rate increase once a year
during the month of April to reflect ordinary changes in the cost of doing business as measured by the
Consumer Price Index (CPI), in the amount equal to 50% of CPI from March to March in the Los Angeles-
Long Beach areas. The CPI for this year, in these areas, is 1.6%. Therefore, under the provision of the
contract, WMD is able to request a .8% increase. Proposed rates reflecting the .8% increase for solid waste
collection and residential recycling is attached to this report along with the current rates now charged to
commercial and residential customers respectively (Attachment B).
In addition, in 1995 the City negotiated its current five-year franchise agreement with WMD. Since it was
a negotiating year, no WMD customer received a rate increase. In March 1996, the City implemented
automated trash collection for single-family homes. Published rates were mailed to every single-family
home. However, in April 1996, WMD presented the City with their request for a CPI increase. At the same
time, effective July 1, 1996, RCWRMD reduced the landfill tipping fee by $8.50 per ton (Attachment C).
Since rates had just been published and implemented for automated, the City Council determined to utiliz
a small portion of RCWRMD tipping fee reduction to absorb the residential CPI increase for 1996. The
tipping fee reduction continues to be deposited in a special account entitled "Solid Waste & Recycling Fee"
until the City Council determines the long range disposal needs for the City. The 1996 CPI increase for
residential rate payers will continue to be funded through this account. However, residential properties will
notice a CPI increase for 1997.
It is staff's recommendation that the City Council:
1 . Ratify the .8% solid waste collection and residential recycling service increase requested
by WMD as provided for in our franchise agreement; and
2. Increase commercial and residential rates by .8%;
3. Waive further reading and adopt the attached resolution setting the solid waste collection
and residential recycling service rates.
Respectfully Submitted, CONCUR,
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JOHN M. WOHLMUTH 'AMON A. DIAZ
ASSISTANT CITY MANAGER CITY MANAGER
CITY COUNCIL ACTION:
LISA V. CONSTANDE APPROVED DENIED
ENVIRONMENTAL CONSERVATION MANAGER RECEIVED OTHER
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LIST OF EXHIBITS
EXHIBIT A LETTER REQUESTING CPI INCREASE
FROM WASTE MANAGEMENT
OF THE DESERT
EXHIBIT B CURRENT RATES FOR CUSTOMERS
AND PROPOSED RATES REFLECTING A
.8% CPI INCREASE
EXHIBIT C RATE RESOLUTION 96-56
• 7WARti eecLieffes
Waste Management of the Desert
VA
41-575 Eclectic Street A Waste Management Company
P.O.Box 3876 ‘01,
Palm Desert,California 92261-3876
619/324-1741 -619/340-2113
• RECEIVED
April 29, 1997
APR 3 0 1997
Ray Diaz PALM DESERT CITY HALL
City of Palm Desert CRY MANAGER
73-510 Fred Waring Drive
Palm Desert, CA 92260
EXHIBIT A
Dear Mr. Diaz:
Waste Management of the Desert respectfully requests a review of its service rates per
Section III.X. of the Franchise Agreement.
The March 1997 Consumer Price Index (CPI) from the U.S. Department of Labor
indicates Riverside County experienced an inflation factor of 1.6% during the past year
ended March 1997. Our current franchise agreement allows us to seek 50% of CPI or
.8%, to offset cost increases we experienced during the 95-96 fiscal year. Waste
Management of the Desert seeks to increase service rates by this .8% CPI factor.
We will be Glad to discuss this request with you at your convenience. Should you have
any questions, please contact me.
Sincerely,
Frank Orlett
Division President OBIT A
cc: John Wohlmuth
Lisa Constande
EXHIBIT "B"
CURRENT- RESIDENTIAL RATES
AUTOMATED COLLECTION OF TRASH AND GREEN WASTE RECYCLING
EFFECTIVE: JULY 1, 1996
SOLID WASTE RECYCLING GREEN WASTE GREEN WASTE LANDFILL SOLID WASTE& CITY
SERVICE OPTIONS ADMIN COLLECTION COLLECTION COLLECTION TIPPING FEE TIPPING FEE RECYCLING FEE FRANCHISE FEE TOTAL RATE
MIXED WASTE CONTAINERS--MANDATORY
One-96 gallon mixed waste container .53 4.22 1.52 --- --- 3.02 .79 .50 10.58
One-64 gallon mixed waste container .53 2.96 1.52 --- 2.74 .73 .40 8.88
One-32 gallon mixed waste container .53 1.73 1.52 2.47 .67 .30 7.22
GREEN WASTE CONTAINERS--SUBSCRIPTION II Residents are able to have two or more containers for the price of a single container to meet their green waste collection needs.
One-96 gallon mixed waste container&
One-ANY SIZE green waste container .53 4.22 1.52 2.31 .69 3.02 .77 .50 13.56
One-64 gallon mixed waste container&
One-ANY SIZE green waste container .53 2.96 1.52 2.31 .69 2.74 .71 .40 11.86
-
One-32 gallon mixed waste container&
One-ANY SIZE green waste container .53 1.73 1.52 2.31 .69 2.47 .65 .30 10.20
ADDITIONAL MIXED WASTE CONTAINERS--SUBSCRIPTION
For a second:
96 gallon mixed waste container -- 5.00 --- --- ... .40 5.40
For a second:
64 gallon mixed waste container 3.78 ... . . .30 4.08
WALK-IN SERVICE An additional $3.00 per month
FREE-To qualify for FREE walk-in service,resident must meet the following requirements:
WALK-IN SERVICE FOR • Department of Motor Vehicles(DMV)requirement for a disabled parking placard
DISABLED RESIDENTS • Placard must be N1-Permanent
STOP SERVICE FEE-
WAIVER REQUIRED No Charge-containers picked up by company.
START SERVICE FEE A $15 fee is charged only to the same owner or tenant. If a new resident resides in the dwelling,a fee is not charged. _
One free service level change per year per resident(with the option of an increase or decrease in capacity). If a resident requires more than one service level change
SERVICE LEVEL CHANGE FEE per year,the charge is $15. If a resident is reducing their trash capacity,there is no charge for the service level change.
CONTAINER(S)PLACEMENT AND REPAIRS When containers are stolen,broken,vandalized,etc.,container(s)are replaced and/or repaired at the expense of the contractor.
FEE,FOR RETURNED CHECKS When a check is returned by the bank because of insufficient funds, a fee of $15 will be charged.
PROPOSED - RESIDENTIAL RATES
AUTOMATED COLLECTION OF TRASH AND GREEN WASTE RECYCLING
REFLECTING AN .8% CPI RATE INCREASE II PROPOSED TO BE EFFECTIVE: JULY 1, 1997
SOLID WASTE RECYCLING GREEN WASTE GREEN WASTE LANDFILL SOLID WASTE& CITY
SERVICE OPTIONS ADMIN COLLECTION COLLECTION COLLECTION TIPPING FEE TIPPING FEE RECYCLING FEE FRANCHISE FEE TOTAL RATE
MIXED WASTE CONTAINERS--MANDATORY
One-96 gallon mixed waste container .54 4.25 1.53 --- 3.02 .79 .50 _ 10.63
One-64 gallon mixed waste container .54 2.98 1.53 _ --- _ 2.74 .73 .40 8.92
'
One-32 gallon mixed waste container .54 1.74 1.53 --- 2.47 .67 .30 7.25
GREEN WASTE CONTAINERS--SUBSCRIPTION II Residents are able to have two or more containers for the price of a single container to meet their green waste collection needs.
One-96 gallon mixed waste container&
One-ANY SIZE green waste container .54 4.25 1.53 2.33 .69 3.02 .77 .50 13.63
One-64 gallon mixed waste container&
One-ANY SIZE green waste container .54 2.98 1.53 2.33 .69 2.74 .71 .40 11.92
One-32 gallon mixed waste container&
One-ANY SIZE green waste container .54 1.74 1.53 2.33 .69 2.47 .65 .30 10.25
ADDITIONAL MIXED WASTE CONTAINERS--SUBSCRIPTION
For a second:
96 gallon mixed waste container --- 5.04 --- --- --- --- .40 5.44
For a second:
64 gallon mixed waste container --- 3.81 --- --- --- .30 4.11
WALK-IN SERVICE An additional $3.00 per month
FREE-To qualify for FREE walk-in service,resident must meet the following requirements:
WALK-IN SERVICE FOR • Department of Motor Vehicles(DMV)requirement for a disabled parking placard
DISABLED RESIDENTS • Placard must be NI-Permanent
STOP SERVICE FEE-
WAIVER REQUIRED No Charge-containers picked up by company.
START SERVICE FEE A $15 fee is charged only to the same owner or tenant. If a new resident resides in the dwelling,a fee is not charged.
One free service level change per year per resident(with the option of an increase or decrease in capacity). If a resident requires more than one service level change
SERVICE LEVEL CHANGE FEE per year,the charge is $15. If a resident is reducing their trash capacity,there is no charge for the service level change.
CONTAINER(S)PLACEMENT AND REPAIRS When containers are stolen, broken,vandalized,etc.,container(s)are replaced andlor repaired at the expense of the contractor.
FEE FOR RETURNED CHECKS When a check is returned by the bank because of insufficient funds,a fee of$15 will be charged.
CURRENT - RESIDENTIAL RATES
MANUAL COLLECTION OF SOLID WASTE
EFFECTIVE: JULY 1, 1996
SOLID WASTE
ADMIN & COLLECTION LANDFILL FEE & RECYCLING FEE TOTAL
SINGLE FAMILY HOME
CURB SERVICE 7.12 2.74 0.72 10.58
WALK-IN SERVICE 9.28 2.74 0.70 12.72
CENTRAL ONE-STOP LOCATION OF TRASH
CURB SERVICE
FIRST UNIT 7.12 2.74 0.72 10.58
EACH ADDITIONAL 3.87 2.74 0.74 7.35
WALK-IN SERVICE
FIRST UNIT 9.28 2.74 0.70 12.72
EACH ADDITIONAL 6.03 2.74 0.73 9.50
OTHER THAN CENTRAL LOCATION OF TRASH
CURB SERVICE
FIRST UNIT 7.12 2.74 0.72 10.58
EACH ADDITIONAL 4.56 2.74 0.74 8.04
WALK-IN SERVICE
FIRST UNIT 9.28 2.74 0.70 12.72
EACH ADDITIONAL 7.80 2.74 0.72 11.26
MOBILE HOME PARKS
CURB SERVICE
EACH UNIT 5.93 2.74 0.73 9.40
WALK-IN SERVICE
- EACH UNIT 8.32 2.74 0.71 11.77
PROPOSED - RESIDENTIAL RATES
MANUAL COLLECTION OF SOLID WASTE
REFLECTING AN .8% CPI RATE INCREASE II PROPOSED TO BE EFFECTIVE: JULY 1, 1997
SOLID WASTE
ADMIN & COLLECTION LANDFILL FEE & RECYCLING FEE TOTAL
SINGLE FAMILY HOME
CURB SERVICE 7 .17 2.74 0.72 10.63
WALK-IN SERVICE 9.35 2.74 0.70 12.79
CENTRAL ONE-STOP LOCATION OF TRASH
CURB SERVICE
FIRST UNIT 7 .17 2.74 0.72 10.63
EACH ADDITIONAL 3.90 2.74 0.74 7.38
WALK-IN SERVICE
FIRST UNIT 9.35 2.74 0.70 12.79
EACH ADDITIONAL 6.08 2.74 0.73 9.55
OTHER THAN CENTRAL LOCATION OF TRASH
CURB SERVICE
FIRST UNIT 7 .17 2.74 0.72 10.63
EACH ADDITIONAL 4.60 2.74 0.74 8.08
WALK-IN SERVICE
FIRST UNIT 9.35 2.74 0.70 12.79
EACH ADDITIONAL 7.86 2.74 0.72 11.32
MOBILE HOME PARKS
CURB SERVICE
EACH UNIT 5.98 2.74 0.73 9.45
WALK-IN SERVICE
EACH UNIT 8.39 2.74 0.71 11.84
r
CURRES' - COMMERCIALSATES
EFFECTIVE: JULY 1 , 1996
SERVICE RATE
FREQUENCY 1 2 3 4 5 6
BIN SIZE
2 $41.43 $ 69.12 $ 97.00 $124.45 $152.16 $207.43
3 51.70 84.80 119.50 150.11 184.92 217.57
4 69.12 105.30 143.93 182.65 221.44 254.44
6 103.70 157.91 215.91 273.92 332.11 381.67
DUMP SURCHARGE
I FREQUENCY 1 2 3 4 5 6
BIN SIZE
2 $ 14.47 $ 28.82 $ 43.27 $ 57.71 $ 72.19 $ 86.52
3 21.49 43.27 46.60 86.52 108.16 129.79
4 28.82 57.73 86.52 115.45 144.12 172.92
6 42.99 86.52 129.79 173.05 216.44 259.57
SOLID WASTE AND RECYCLING FEE
FREQUENCY 1 2 3 4 5 6
BIN SIZE
2 $ 4.10 $ 8.16 $ 12.26 $ 16.35 $ 20.45 $ 24.51
3 6.09 12.26 18.02 24.51 30.64 36.77
4 8.16 16.36 24.51 32.71 40.83 48.99
6 12.18 24.51 36.78 49.03 61.32 73.54
TOTAL RATE
FREQUENCY 1 2 3 4 5 6
BIN SIZE
2 $60.00 $106.10 $152.53 $198.51 $244.80 $318.46
3 79.28 140.33 201.12 261.14 323.72 384.13
4 106.10 179.39 254.96 330.81 406.39 476.35
6 158.87 268.94 382.48 496.00 609.87 714.78
ADDITIONAL CHARGES
2-Yard Bin-Extra Empty $26.29
3-Yard
• r Bin-Extra Empty
36.41
4Yard Bin-Extra Empty 48.71
6-Yard Bin-Extra Empty 72.88
Handling Charge(per pickup) 4.81
Locking Container 49.65
Re-Start Fee 15.00
Returned Check Fee 15.00
ROLLOFF RATES
RATE' RENTAL RATES"
•
20 Yards $70.48 $10.06
30 Yards 95.57 13.66
40 Yards 113.12 15.45
'Plus dump fees charged at actual +$8.501ton recycling program charge +10%
. " Per day after 7 days
PROPOSED - COMMERCIAL RATES
•
REFLECTING AN .8% CPI RATE INCREASE // PROPOSED TO BE EFFECTIVE
• JULY 1, 1997
SERVICE RATE 1 2 3 4 5 6
FREQUENCY
BIN SIZE
2 $41.76 $69.67 $97.78 $125.45 $153.38 $209.09
3 52.11 85.48 120.46 151.31 186.40 219.31
4 69.67 106.14 145.08 184.11 223.21 256.48
6 104.53 159.17 217.64 276.11 334.77 384.72
DUMP SURCHARGE
FREQUENCY
BIN SIZE 1 2 3 4 5 6
2 $ 14.47 $28.82 $ 43.27 $ 57.71 $ 72.19 $ 86.52
3 21.49 43.27 63.60 86.52 108.16 129.79
4 28.82 57.73 86.52 115.45 144.12 172.92
6 42.99 86.52 129.79 173.05 216.44 259.57
SOLID WASTE AND
RECYCING FEE 1 2 3 4 5 6
FREQUENCY
BIN SIZE
2 $ 4.10 $ 8.16 $ 12.26 $ 16.35 $20.45 $24.51
3 6.09 12.26 18.02 24.51 30.64 36.77
4 8.16 16.36 24.51 32.71 40.83 48.99
6 12.18 24.51 36.78 49.03 61.32 73.54
TOTAL RATE
FREQUENCY 1 2 3 4 5 6
BIN SIZE
2 $60.33 $106.65 $153.31 $199.51 $246.02 $320.12
3 79.69 141.01 202.08 262.34 325.20 385.87
4 106.65 180.23 256.11 332.27 408.16 478.39
6 159.70 270.20 384.21 498.19 612.53 717.83
ADDITIONAL CHARGES
2-Yard Bin•Extra Empty $26.50
3-Yard Bin•Extra Empty 36.70
4-Yard Bin•Extra Empty 49.10
6-Yard Bin-Extra Empty 73.46
Handling Charge(per pickup) 4.85
Locking Container 50.05
Re-Start Fee 15.00
Returned Check Fee 15.00
ROLLOFF RATES RATE' RENTAL RATES'•
20 Yards $71.04 $ 10.14
30 Yards 96.33 13.77
40 Yards 114.02 15.57
• Plus dump fees charged at actual+$8.501ton recycling program charge+10%
•• Per day after 7 days
EXHIBIT "C"
RESOLUTION NO. 96-56
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING THE RATE SCHEDULE OF FEES FOR THE
COI T.FCTION, RECYCLING, AND DISPOSAL OF MUNICIPAL SOLID WASTE
AND RESIDENTIAL RECYCLING, RESCINDING RESOLUTION NO. 94-56.
WHEREAS, on the 13th day of July, 1995, the City Council of the City of Palm
Desert, California, authorized an exclusive contract with Waste Management of the Desert to
provide solid waste collection and residential recycling services; and
WHEREAS, the provisions of the franchise agreement allows Waste Management
of the Desert an annual rate increase equal to 50% of the Consumer Price Index (CPI) as
measured in the Los Angeles- Anaheim-Riverside area from March to March; and
WHEREAS, the CPI from March 1995 to March 1996 is 1.7% and Waste
Management of the Desert requested on April 16, 1996, an .85% increase for solid waste
collection and residential recycling services; and
WHEREAS, the Riverside County Waste Resources Management District
(RCWRMD) sets the landfill tipping fees; and
WHEREAS, RCWRMD has reduced the landfill tipping fee from $38.50 to $30.00
per ton, effective July 1, 1996.
NOW, THEREFORE, BE IT RESOLVED as follows:
SECTION 1: That the City Council of the City of Palm Desert, California, rescinds
Resolution No. 94-56 effective July 1, 1996.
SECTION 2: That the City Council of the City of Palm Desert, California,
effective July 1, 1996, ratifies the .85% solid waste collection and residential recycling service
increase requested by Waste Management of the Desert as provided for in our franchise
agreement.
SECTION 3: That the City Council of the City of Palm Desert, California,
effective July 1, 1996, ramifies the RCWRMD's landfill tipping fee surcharge reduction from
$38.50 to $30.00 per ton.
SECTION 4: That the City Council of the City of Palm Desert, California,
effective July 1, 1996, retains the $8.50 per ton tipping fee reduction and directs the funds to
a special account entitled, "Waste and Recycling Fee;"
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SECTION 5: eat the City Council of the Cit. Palm Desert, California,
effective July 1, 1996, increases commercial rates by .85 %, and utili7Fs a portion of the $8.50
per ton tipping fee reduction so that residential customers do not receive an .85 percent rate
increase;
• SECTION 6: That Waste Management of the Desert shall notify its commercial
customers of the solid waste collection increase of .85% based upon their request for CPI
increase.
SECTION 7: That Waste Management of the Desert shall forward to the City on
a monthly basis an amount equal to $8.50 multiplied by the City's franchised hauler residential
garbage tonnage as reported to the RCWRMD Tonnage Tracking System.
SECTION 8: That Waste Management of the Desert shall forward to the City on
a monthly basis an amount equal to $8.50 multiplied by the City's franchised hauler
commercial and industrial (roll-off) garbage tonnage as reported to the RCWRMD Tonnage
Tracking System.
SECTION 9: That the schedule of solid waste collection and residential recycling
service rates and landfill tipping fee surcharge shall be in accordance with Exhibit A attached
hereto and made part hereof:
PASSED, APPROVED, and ADOPTED this 22nd day of August
, 1996, by the City Council of the City of Palm Desert, California, by the following vote, to
wit:
AYES: BENSON, CRITES, KELLY, SPIEGEL, SNYDER
NOES:NONE
ABSENT: NONE
ABSTAIN: NONE ,
WALTER H. SNYDER, YOR
AI II.ST:
G,'4,,,,t„, ... , ,4„, _,)46c,r,,,,c—
SHEILA . GILLIGAN, CITY-CLERIC
DIRECTOR OF COMMUNITY AFFAIRS
CITY OF PALM DESERT, CALIFORNIA
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