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Home My WebLink AboutCC RES 2013-54RESOLUTION NO. 2013-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE NEW ADJUSTED RATE SCHEDULE OF FEES (EXHIBIT 3A, 3B, AND 3C) FOR RESIDENT, COMMERCIAL, AND ROLL -OFF) FOR THE COLLECTION, RECYCLING, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RESIDENTIAL/ COMMERCIAL RECYCLING AND NEW COMMERCIAL RECYCLE RATE CONTAINED IN CONTRACT NO. C27410 — SOLID WASTE MANAGEMENT SERVICES WHEREAS, on the 1st day of June 2009, the City entered into an exclusive contract with Burrtec Waste and Recycling, LLC and approved the Agreement at its meeting of May 21, 2009. WHEREAS, Burrtec now provides solid waste collection and residential and commercial recycling services to the residents and businesses within Palm Desert; and WHEREAS, the franchise agreement sets forth rates for solid waste collection and recycling services within the City of Palm Desert as provided in Exhibits 3A, 3B, and 3C and 4A, 4B, and 4C and commencing on the second year of said agreement new rates may be applied at 100% of the PPI with a 5% cap unless otherwise approved and to become effective July 1st of each year; and WHEREAS, the Riverside County Waste Resources Management District (RCWRMD) sets the landfill tipping fees and effective July 1, 1996, reduced the landfill tipping fee from $38.50 to $30.00 per ton; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1: That the City Council of the City of Palm Desert, California, rescinds all previous resolutions. SECTION 2: The annual rate increase shall be 100% of PPI with a 5% cap. SECTION 3: That the City Council of the City of Palm Desert, California, effective September 1, 2013, ratifies the 1.2% Producer Price Index and 1.85% gate/disposal fee increases for solid waste collection and recycling service requested by Burrtec Waste and Recycling as provided for in the Franchise Agreement. Resolution No. 2013-54 SECTION 4: That the County of Riverside has increased the per ton gate/disposal fee at the transfer station/landfill from $40.54 to $41.28 an increase of $.74. SECTION 5: The City Council of the City of Palm Desert, California, approves the new solid waste rate increases for 2013 as reflected in each Exhibit 3 to become effective October 1, 2013, for residential customers who are directly billed and September 1, 2013 for master billed HOAs/residential and commercial customers. SECTION 6: That the City Council of the City of Palm Desert, California, effective as outlined in Section 5 above will utilize the $1.87 (formerly $4.19) per ton tipping fee plus an additional $.03 per ton so that residential and commercial customers (excluding roll off and other special services) do not absorb the PPI and gate/disposal fee increases for 2013. SECTION 7: That the additional $.03 per ton be paid from the City's AB939 Fund. SECTION 8: Rate increases as outlined in each Exhibit 3 relative to Commercial Service Rates and Roll Off Service Rates shall be passed on to the those that utilizes these services. SECTION 9: All other solid waste and commercial recycling rates, services, 8% franchise fee, any other fees, reports, etc. shall be in accordance with the Agreement currently in effect. PASSED, APPROVED, AND ADOPTED this 22nd day of August, 2013, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: BENSON, SPIEGEL, TANNER, WEBER, AND HARNIK NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RAC -IELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNI 2 N C. HARNIK, MAYOR 1 RESOLUTION NO. 2013-54 en s �� saa 2 wwv► hnwwviw t wvi a w w w v► w w 0 ao va § g M A a I i g ! W Cq �� V m N U LL �• Y N o o bava •$4 `§ ° 2 d 313(.1 2 a ccj a• A d 3 vg aC�c��occ b i el o 0 d > > 2 `BiITT % .ininm i <' 6 m ,-I lid O�(n Mf+� nn r b N N N a > M In V o O 00 .D .: O o. 00 00 .-; try V� M to (, .-. .-. N .--. 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YTO A" 1 55A i 14! i i 1 g ti 124 -a 4 1 SaM -g.slq �v� lii „ IS 4 fl 1111(1Eilaa RESOLUTION NO. 2013-54 EXHIBIT 3B City of Palm Desert Commercial Trash Service Rates - Current Commercial Collection Pickups yer Week Container Size 1 2 3 4 Commercial Refuse Cart Commercial Greenwaste Car 2 Cubic Yards 3 Cubic Yards 4 Cubic Yards 6 Cubic Yards **Locking Bin Fee $ $ 11.75 9.18 74.66 98.33 $ 135.18 $ 204.87 $ 8.88 $ 23.48 $ 18.33 $ 130.91 $ 175.69 $ 226.86 $ 344.39 $ 17.75 35.23 27.51 187.60 229.17 321.60 488.88 26.65 "Locking Bin Fee is a monthly charge based on number of pick ups per week 2-Yard - Extra Empty 3-Yard - Extra Empty 4-Yard - Extra Empty 6-Yard - Extra Empty Temporary front end Toad bin - initial delivery, pickup, and disposal Temporary front end Toad bin - additional dumps 46.97 36.67 243.68 322.92 416.69 633.28 35.52 Contaminated Recycling Container Charge - Bin Re -Start Fee - following voluntary or involuntary suspension of service Retumed Check Fee Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required warnings) Emergency Service - hourly rate for one crew member and one collection truck 11.91 5 6 $ 58.71 $ 70.45 $ 45.84 $ 54.87 $ 300.16 $ 392.96 $ 400.69 $ 478.21 $ 533.62 $ 598.72 $ 765.23 $ 911.18 $ 44.40 $ 53.27 $ 34.94 $ 47.88 $ 64.70 $ 97.06 $ 129.39 $ 129.39 (Extra Empty Charge) $ 18.98 $ 19.75 $ 38.85 $ 94.35 Commercial Trash Service Rates - Effective 7/1/2013 Multiplier: 100.00% Container Size Commercial Refuse Cart Commercial Greenwaste Car 2 Cubic Yards 3 Cubic Yards 4 Cubic Yards 6 Cubic Yards **Locking Bin Fee Commercial Collection Pickups ,er Week 1 2 3 4 $ 11.75 $ 23.48 $ 35.23 $ 46.97 $ 9.18 $ 18.33 $ 27.51 $ 36.67 $ 74.66 $ 130.91 $ 187.60 $ 243.68 $ 98.33 $ 175.69 $ 229.17 $ 322.92 $ 135.18 $ 226.86 $ 321.60 $ 416.69 $ 204.87 $ 344.39 $ 488.88 $ 633.28 $ 8.88 $ 17.75 $ 26.65 $ 35.52 '*Locking Bin Fee is a monthly charge based on number of pick ups per week 2-Yard - Extra Empty 3-Yard - Extra Empty 4-Yard - Extra Empty 6-Yard - Extra Empty Temporary front end Toad bin - initial delivery, pickup, and disposal Temporary front end Toad bin - additional dumps Contaminated Recycling Container Charge - Bin Re -Start Fee - following voluntary or involuntary suspension of service Returned Check Fee Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required wamings) Emergency Service - hourly rate for one crew member and one collection truck 5 $ 58.71 $ 45.84 $ 300.16 $ 400.69 $ 533.62 $ 765.23 $ 44.40 $ 34.94 $ 47.88 $ 64.70 $ 97.06 $ 129.39 $ 129.39 (Extra Empty Charge) $ 18.98 $ 19.75 $ 38.85 $ 94.35 6 $ 70.45 $ 54.87 $ 392.96 $ 47821 $ 598.72 $ 911.18 $ 53.27 9/5/2013 City of Palm Desert 20].3-54 Roll off Service Rates - Current EXHIBIT 3C Dgsoptiop RRtr Per Pu11 Standard Refuse Pull Charge (c) $ 136.09 Standard Greenwaste/Construction & Demolition Pull Charge (c) $ 129.25 Compactor Pull Charge (c) $ 219.63 Landfill Disposal Charge actual cost (a) Greenwaste Disposal Charge actual cost (b) Construction and Demolition Disposal Charge actual cost (c) Rental Fee Per Day $ 9.02 (a) The disposal charge per ton includes both the landfill tipping fee (actual cost) and the City's recycling fee of $8.25 per ton. (b) Temporary roll off customers may be charged a delivery charge, a pull charge, plus four tons of disposal. If disposal tonnage is less than four tons or greater than four tons, the customer will be credited/charged accordingly. (c) Roll -off customers may be charged a box rental fee after seven (7) business days if there has been no pulls within the 7-day period. Roll -off customers who are using roll -off for recycling purposes are not charged this fee. Additional Services Description Rate Roll -Off Delivery , Relocation Charge, Re -Start Fee $ 19.29 Returned Check Fee $ 20.07 Roll off Service Rates - Effective 7/1/2013 Multiplier: 101.20% Description Rat, Per Pull Standard Refuse Pull Charge (c) $ 137.73 Standard Greenwaste/Construction & Demolition Pull Charge (c) $ 130.80 Compactor Pull Charge (c) $ 222.27 Landfill Disposal Charge actual cost (a) Greenwaste Disposal Charge actual cost (b) Construction and Demolition Disposal Charge actual cost (c) Rental Fee Per Day $ 9.13 (a) The disposal charge per ton includes both the landfill tipping fee (actual cost) and the City's recycling fee of $8.25 per ton. (b) Temporary roll off customers may be charged a delivery charge, a pull charge, plus four tons of disposal. If disposal tonnage is less than four tons or greater than four tons, the customer will be credited/charged accordingly. (c ) Roll -off customers may be charged a box rental fee after seven (7) business days If there has been no pulls within the 7-day period. Roll -off customers who are using roll -off for recycling purposes are not charged this fee. Additional Services Description Rate Roll -Off Delivery , Relocation Charge, Re -Start Fee $ 19.52 Returned Check Fee $ 20.31 4/8/2013 Components of Actual Revenue Refuse Disposal Revenue Component (net of Franchise Fees) Residential Rate Revenue Net of Franchise Fees (c) Less: Actual Residential refuse Disposal Expense RESOLUTION NO. 2013-54 EXHIBIT 4A Residential Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2013 Step One: Deduct franchise fees from gross rate revenue Revenue Component (Including franchise fees) Gross Residential Rate Revenue Residential Franchise Fees (b) Residential Rate Revenue Net of Franchise Fees Step Two: Determine disposal expense, recycling fees, and service Percentage of Rate Revenue Net of Franchise Fees 100.00% 18.14% Annual Amount $2,822,148 $511,803 Less: Actual Residential Recycling Fees $39.958 Residential Service Revenue $2,270,387 Annual Amount (a) $3,019,573 $197,425 $2,822,148 Step These: Caluclate percentage change In adjustment factors Adjustment Factor Old Disposal Tipping Fee per Ton Recycling Fee per ton Producer Price Index (Capped at 5%) $ 40.54 $ $1.87 191.3 New Index Change 41.28 -$0.03 193.6 Step Four: Calculate weighted percentage change In single family rates Component Rate Component Percent Change Weight (e) (f) 18.14% 1.8% 1.83% 0.00% 1.20% Recycling Fee 1.42% 0.0% Service 80 % 1.2% Total 100.00% Step Five: Service (9) 90-gallon automated cart collection Manual curbside collection Walk-in service fee Apply weighted percentage change to single family rates Current Monthly Rate Weighted Rate (Example Only) (h) Adjustment (I) Rate Chang (NOTE it $10.58 0.000% $11.84 0.000% $8.74 0.000% $0.00 $0.00 $0.00 NOTE 1 - 2013/14 Rate Adjustment of 1.298% offset by reduction to Recycling Fee Residential rate increases effective 7/1/2013 (a) For the twelve months ending the December before the Juy 1 rate adjustment. (b) Franchise fee is 8% of gross revenue less disposal fees and per ton recycling fees. (c) From Step One above. (d) "Index Change" multiplied by "Allowable Portion of Index Change." (e) From "Percentage of Rate Revenue Net of Franchise Fees" in Step Two. (f) From last column in Step Three. (g) Not all rate categories are shown In this example. (h) The weighted rate adjustment should be applied to the total rate, including Franchise Fee portion of the (i) From weighted rate adjustment in Step Four. (j) "Current Monthly Rate" plus "Rate Change." (k) Recycling fee is a negative $.03 per -ton as the fee was used to offset 2013/14 rate increase 1.42% 80.45% , Rate Component Percent Change (di 1.83% 0.00% 1.20%, Weighted Rate Adjustment 0.331% 0.000% 0.967% 1.298% Adjusted Monthly Rate ()) $10.58 $11.64 $8.74 resulting in no rate. NOTE 1 9/5/2013 9/5/2013 RESOLUTION NO. 2013-54 EXHIBIT 4B commercial Bin Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2013 Step One: Deduct franchise fees from gross rate revenue Revenue Component (Including franchise fess) Gross Commercial and Multi -Family Rate Revenue Commercial and Multi -Family Franchise Fees (b) Commercial and Multi -Family Rate Revenue Net of Franchise Fees Step Two: Determine disposal expense, Revenue Component (net of Franchise Fees) Commercial and Multi -Family Rate Revenue Net of Franchise Fees (c) Less: Actual Commercial and Multi -Family refuse Disposal Expense Less: Actual Commercial and Multi -Family Recycling Fees Commercial and Multi -Family Service Revenue recycling fees, and service Percentage of Rate Revenue Net of Franchise Fees $3,677,337 100.00% $941,784 25.61% $72,357 1.97% $2,663,196 72.42% Annual Amount Annual Amount (a) $3,908,919 $231,582 $3,677,337 Step Three: Caluclate percentage chan le In adjustment factors Adjustment Factor Disposal Tipping Fee per Ton Recycling Fee per ton Producer Price Index (Capped at 5%) Step Four. Calculate Components of Actual Revenue efuse Disposal ecycling Fee vereervice Total Service (g) Old New Index Change $40.54 $1.87 191.3 $41.28 -$0.03 193.6 1.83% 0.00% 1.20% weighted percentage change in single family rates Component Rate Component Percent Change (f) Weight (e) 26% 1.83% 2% 0.00% 72% 1.20% 100% Step Five: Apply weighted percentage change to single family rates One 3-yard bin once per week One 3-yard bin twice per week One 3-yard bin three times per week One 3-yard bin four times per week One 3-yard bin five times per week One 3-yard bin six times per week Extra 3-yard empty Current Monthly Rate (Example Only) (h) $98.33 $175.69 $229.17 $322.92 $400.69 $478.21 $47.88 Weighted Rate Adjustment (I) (NOTE 1) 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% Rate Component Percent Change 1.83% 0.00% 1.20% Weighted Rate Adjustment 0.467% 0.000% 0.871 % 1.338% (NOTE 11 Rate Change Adjusted Monthly Rate 0) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $98.33 $175.69 $229.17 $322.92 $400.89 $478.21 $47.88 NOTE 1 - 2013/14 Rate Adjustment of 1.338% offset by reduction to Recycling Fee resulting in no Commercial rate increases effective 7/1/2013 (a) For the twelve months ending the December before the July 1 rate adjustment. (b) Franchise fee is 8% of gross revenue less disposal fees and per ton recycling fees. (c) From Step One above. (d) "Index Change" multiplied by "Allowable Portion of Index Change." (e) From "Percentage of Rate Revenue Net of Franchise Fees" in Step Two. (f) From last column in Step Three. (g) Not all rate categories are shown in this example. ^) The weighted rate adjustment should be applied to the total rate, Including Franchise Fee portion of the rate. From weighted rate adjustment In Step Four. "Current Monthly Rate" plus "Rate Change." 'It Recycling fee is a negative $.03 per -ton as the fee was used to offset 2013/14 rate increase 9/5/2013