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HomeMy WebLinkAboutCC RES 2014-44RESOLUTION NO. 2014-44 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 July 1, 2014, ratifies the 1.29% (December 2012 to December 2013) Producer Price Index and 1.02% 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. 2014- 44 SECTION 4: That the County of Riverside has increased the per ton gate/disposal fee at the transfer station/landfill from $41.28 to $41.70 an increase of $.42. SECTION 5: The City Council of the City of Palm Desert, California, approves the new solid waste rate increases for 2014 as reflected in each Exhibit 3 to become effective July 1, 2014. SECTION 6: That the City Council of the City of Palm Desert, California, approved in 2013 the utilization of the remaining AB939 fees of $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) did not absorb the PPI and gate/disposal fee increases for 2013. SECTION 7: The additional $.03 per ton was absorbed by Burrtec in mid-2013. SECTION 8: The City Council of the City of Palm Desert, California, approved the commercial recycle rate structure established at 35% of the trash fee and includes the 8% Franchise Fee. Rate reflected on Exhibit 3B became effective November 1, 2013. SECTION 9: The Commercial Recycle Rate Structure as outlined in Exhibit 3B and the Roll Off Service Rates as outlined in Exhibit 3C is paid by Burrtec customers. SECTION 10: 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. 2 Resolution No. 2014- 44 PASSED, APPROVED, AND ADOPTED this 22" day of May, 2014, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: BENSON, HARNIK SPIEGEL, WEBER, and TANNER NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: if) RACWELLE D. KLASSEN, CITT CLERK CITY OF PALM DESERT, CALIFORNIA l/G / VAN G. TANNER, MAYOR 3 RESOLUTION NO. 2014-44 [This page has intentionally been left blank.] Car Exchange - 'or entire HOA's (per car, exchanged) N Cart Exchange - for entire HOA's (per cart exchanged) aaHoayO pau.r,a{ following voluntary or involuntary suspension of service Suspension of service/Restart Fee - Bulky Item Pick-up - Apartment complex includes four items (per Section 4 5 2) EA to V 0 aad >Ioay° pauntaa following voluntary or involuntary suspension of service Ut _ V O Oc o c rn CA OD c0 c c (A F N m 0 3 u m D ID T O m a m a 03 SL 3 17 0 0 ID 0 ) ID 7 pn a. O 0 EA EA EA EA EA CD d ,� w T. m D D D 9 ^ D D w Doi obi w 11, Iv °1 D (� v F to Q. 0 IL 0 (n O U o G. N o F. J I J N A O) ;l O G. :► N •< n ¢. c v i'o 1U 3 '3 .� _j ¢' ,) 3 3 m n, m L) G) -: 3 < rn ❑. 0, 1^ a iD' m 7 i co co m m m— w a. IN 3 'c7 0 o fo -- 0 io (D' C 0. N m a; 3 o 0 o m ( .1 cT. 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Greenwaste Container Service (A EA EA EA EA EA EA fA EA EA EA vi(A (D G • ON NOI1111OSali VE SIgIHX� N V Oo CO O O UI V O tJ O_ V O' W 'O W O U1 ••] '.D .'C N O I (X+ .T W U, 'co ,A J+ UI w W 1x Oc ,A W N N N W "' tr a EXHIBIT 3B City of Palm Desert RESOLUTION NO. 2014-44 Commercial Trash Service Kates - Current Commercial Collection Pickups per Week Container Size 1 2 3 4 5 6 Commercial Refuse Cart $ 11.75 $ 23.48 $ 35.23 $ 46.97 $ 58.71 $ 70.45 Commercial Greenwaste Carl $ 9.18 $ 18.33 $ 27.51 $ 36.67 $ 45.84 $ 54.87 2 Cubic Yards $ 74.66 $ 130.91 $ 187.60 $ 243.68 $ 300.16 $ 392.96 3 Cubic Yards $ 98.33 $ 175.69 $ 229.17 $ 322.92 $ 400.69 $ 478.21 4 Cubic Yards $ 135.18 $ 226.86 $ 321.60 $ 416.69 $ 533.62 $ 598.72 6 Cubic Yards $ 204.87 $ 344.39 $ 488.88 $ 633.28 $ 765.23 $ 911.18 **Locking Bin Fee $ 8.88 $ 17.75 $ 26.65 $ 35.52 $ 44.40 $ 53.27 *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 load bin - initial delivery, pickup, and disposal Temporary front end load 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 warnings) Emergency Service - hourly rate for one crew member and one collection truck $ 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 7/1/2014 Multiplier: 101.211% Container Size Commercial Refuse Cart $ 'Commercial Greenwaste Cari $ 2 Cubic Yards 3 Cubic Yards 4 Cubic Yards 6 Cubic Yards **Locking Bin Fee $ 75.56 $ 99.52 $ 136.82 $ 207.35 $ 8.99 Commercial Collection Pickups ) e r Week 1 2 3 11.89 $ 23.76 $ 35.66 9.29 $ 18.55 $ 27.84 $ 132.50 $ 189.87 $ 177.82 $ 231.95 $ 229.61 $ 325.50 $ 348.56 $ 494.80 $ 17.97 $ 26.97 **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 load bin - initial delivery, pickup, and disposal Temporary front end load bin - additional dumps 4 $ 47.54 $ 37.11 $ 246.63 $ 326.83 $ 421.74 $ 640.95 $ 35.95 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 warnings) Emergency Service - hourly rate for one crew member and one collection truck 5 $ 59.42 $ 46.40 $ 303.80 $ 405.54 $ 540.08 $ 774.50 $ 44.94 $ 35.36 $ 48.46 $ 65.48 $ 98.24 $ 130.96 $ 130.96 (Extra Empty Charge) $ 19.21 $ 19.99 $ 39.32 $ 95.49 6 $ 71.30 $ 55.53 $ 397.72 $ 484.00 $ 605.97 $ 922.22 $ 53.92 4/29/2014 EXHIBIT 3B Commercial Recycling Service Rates - Effective 7/1/2014 RESOLUTION NO. 2014-44 % of Trash Service Rate*: 35.00% Commercial Collection Pickups ,er Week Container Size 1 2 3 4 5 6 Commercial Recycle Cart * $ 4.16 $ 8.32 $ 12.48 $ 16.64 $ 20.80 $ 24.96 2 Cubic Yards * $ 26.45 $ 46.38 $ 66.45 $ 86.32 $ 106.33 $ 139.20 3 Cubic Yards* $ 34.83 $ 62.24 $ 81.18 $ 114.39 $ 141.94 $ 169.40 4 Cubic Yards* $ 47.89 $ 80.36 $ 113.93 $ 147.61 $ 189.03 $ 212.09 6 Cubic Yards* $ 72.57 $ 122.00 $ 173.18 $ 224.33 $ 271.08 $ 322.78 **Locking Bin Fee $ 8.99 $ 17.97 $ 26.97 $ 35.95 $ 44.94 $ 53.92 "Locking Bin Fee is a monthly charge based on number of pick ups per week 2-Yard - Extra Empty * I $ 12.38 3-Yard - Extra Empty * I $ 16.96 4-Yard - Extra Empty* I $ 22.92 6-Yard - Extra Empty" I $ 34.38 (Extra Empty Contaminated Recycling Container Charge - Bin Charge) Re -Start Fee - following voluntary or involuntary suspension of service $ 19.21 Returned Check Fee , $ 19.99 Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required warnings) I $ 39.32 Emergency Service - hourly rate for one crew member and one collection truck I $ 95.49 I 4/29/2014 EXHIBIT 3C Roll off Service Rates - Effective 7/1/2014 RESOLUTION NO. 2014-44 Multiplier: 101.29% Description RatePer Pull Standard Refuse Pull Charge (c) $ 139.51 Standard Greenwaste/Construction & Demolition Pull Charge (c ) $ 132.49 Compactor Pull Charge (c) $ 225.14 Landfill Disposal Charge actual cost (a) Greenwaste Disposal Charge actual cost (b) Construction and Demolition Disposal Charge actual cost (c) Rental Fee Per Day $ 9.14 (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 $ 19.77 Returned Check Fee $ 20.57 4/29/2014 RESOLUTION NO. 2014-44 EXHIBIT 4A Residential Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2014 Step One: Deduct franchise fees from gross rate revenue Revenue Component (including franchise fees) Gross Residential Rate Revenue Residential Franchise Fees (b) Annual Amount (a) $3,075,157 $202,517 Residential Rate Revenue Net of Franchise Fees $2,872,640 Step Two: Determine disposal expense, recycilng fees, and service Revenue Component (net of Franchise Fees) Annual Amount Percentage of Rate Revenue Net of Franchise Fees Residential Rate Revenue Net of Franchise Fees (c) $2,872,640 100.00% Less: Actual Residential refuse Disposal Expense $530,836 18.48% Less: Actual Residential Recycling Fees Residential Service Revenue $12,854 $2,328,950 Step Three: Caluclate percentage change in adjustment factors Adjustment Factor Disposal Tipping Fee per Ton Recycling Fee per ton Producer Price Index (Capped at 5%) 0.45% 81.07% Rate Old New Index Change Component Percent Change (d) $ 41.28 $ 41.70 1.02% 1.02% $0.00 $0.00 0.00% 0.00% 193.6 196.1 1.29% 1.29% Step Four: Calculate weighted percentage change in single family rates Components of Actual Revenue Component Rate Component Percent Change Weighted Rate Weight (e) (f) Adjustment Refuse Disposal 18.48% 1.0% 0.188% Recycling Fee 0.45% Service 81.07% Total 100.00% 0.0% 1.3% 0.000% 1.047% 1.235% Step Five: Apply weighted percentage change to single family rates Weighted Rate Service (g) Current Monthly Rate Adjustment (i) Rate Change Adjusted (Example Only) (h) (NOTE 11 Monthly Rate (j) 90-gallon automated cart collection $10.58 1.235% $0.13 $10.71 Manual curbside collection $11.641 1.235% $0.14 $11.78 Walk-in service fee $8.741 1.235% $0.11 $8.85 (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 recycilng 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 rate. (i) From weighted rate adjustment in Step Four. (j) "Current Monthly Rate" plus "Rate Change." 4/29/2014 4/29/2( RESOLUTION NO. 2014-44 EXHIBIT 4B Commercial Bin Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2014 Step One: Deduct franchise fees from gross rate revenue Revenue Component (including franchise fees) 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, recyciing fees, and service 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 Annual Amount Annual Amount (a) $4,016,637 $240,015 $3,776,622 Percentage of Rate Revenue Net of Franchise Fees $3,776,622 100.00% $993,309 26.30°/0 $23 146 0.61% $2,760,168 73.09% Step Three: Caluclate percentage change 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 Refuse Disposal Recycling Fee Service Total Service (g) Old New Index Change $41.28 $0.00 193.6 $41.70 $0.00 196.1 1 02% 0.00% 1.29% weighted percentage change in single family rates Component Rate Component Percent Change (f) Weight (e) 26.30% 0.61% 73.09% 100.00% 1.02% 0.00% 1.29% 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) Weighted Rate Adjustment (i) (NOTE 1) $98.33 1.211% $175.69 1.211% $229.17 1.211% $322.92 1.211% $400.69 1.211% $478.21 1.211% $47.88 1.211% Rate Component Percent Change (d) 1.02% 0.00% 1.29% Weighted Rate Adjustment 0.268% 0.000% 0.944% 1.211%1 Rate Change Adjusted Monthly Rate (j) $1.19 $2.13 $2.78 $3.91 $4.85 $5.79 $0.58 (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 recyciing 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 rate. (i) From weighted rate adjustment in Step Four. (j) "Current Monthly Rate" plus "Rate Change." $99.52 $177.82 $231.95 $326.83 $405.54 $484.00 $48.46 4/29/20' z o 6 O M N -4 n N ro N 6• coo O m a 7 Q; J 0 CD 3 CD 'cf. o 0 co co 0 cD y 3 CD r 3 c o- 0 6 o 5. (C3 co R 0 73 O 0 'A n nZ, y� G O CIA C .ti 7 fi 03 e'r 3 el N ro A 2. N 0-. s 0. 0 CD cam. N -0 rlfld: WPUSOP3000 Not Seasonally Adjusted Group: Stage of processing Item: Finished goods Base Date: 198200 RESOLUTION NO. 2014-44 PRODUCER PRICE INDEX Download: . j_xis Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2003 140.8 142.3 144.2 142.1 142 143 143 143.7 144 145.5 144.5 144.5 i 143.3 2004 145.4 145.3 146.3 147.3 148.9 148.7 148.5 148.5 148.7 152 151.7 150.6 148.5 2005 151.4 152.1 153.6 154.4 154.3 154.2 155.5 156.3 158.9 160.9 158.3 158,7 i 155.7 2006 159.9 158 159.1 160.7 161.2 161.8 161.7 162.3 160.3 158.9 159.8 160.5 160.4 2007 160.1 161.8 164.1 165.9 167.5 167.2 168.5 166.1 167.4 168.6 171.4 170.4 166.6 2008 172 172.3 175.1 176.5 179.8 182.4 185.1 182.2 182.2 177.4 172 168.8 177.1 2009 170.4 169.9 169.1 170.3 171.1 174.3 172.4 174.2 173.2 173.8 175.7(R) 176 172.5 2010 178 177 179.1 179.5 179.8 179 179.5 179.9 180 181.2 181.6 182.6 179.8 2011 184.4 186.6 189.1 191.4 192.5 191.4 192.2 191.7 192.6 191.8 191.7 . 191.1 190.5 2012 192 192.9 194.4 194.9 193.7 192.8 193.2 195.4 196.7 196.3 194.5(P) 193.6(P) 194.2(P) 2013 194.7(P) 196.2(P) R : Revised P . Preliminary. All indexes are subject to revision four months after original publication. Series Id: WPUSOP3000 Not Seasonally Adjusted Group: Stage of processing Item: Finished goods Base Date: 198200 Download: Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2004 145.4 145.3 146.3 147.3 148.9 148.7 148.5 148.5 148.7 152 151.7 150.6 148.5 2005 151.4 152.1 153.6 154.4 154.3 154.2 155.5 156.3 158.9 160.9 158.3 158.7 155.7 2006 159.9 158 159.1 160.7 161.2 161.8 161.7 162.3 160.3 158,9 159.8 160.5 160.4 2007 160.1 161.8 164.1 165.9 167.5 167.2 168.5 166.1 167.4 168.6 171.4 170.4 166.6 2008 172 172.3 175.1 176.5 179.8 182.4 185.1 182.2 182.2 177.4 172 168.8 177.1 2009 170.4 169.9 169.1 170.3 171.1 174.3 172.4 174.2 173.2 173.8 175.7(R) 176 172.5 2010 178 177 179.1 179.5 179.8 179 179.5 179.9 180 181.2 181.6 182.6 : 179.8 2011 184.4 186.6 189.1 191.4 192.5 191.4 192.2 191.7 192.6 191.8 191.7 191.1 190.5 2012 192 192.9 194.4 194.9 193.7 192.8 193.2 195.4 196.7 196.3 194.5 193.7 194.2 2013 194.8 196.3 196.6 195.9 196.8 197.2 197.2 197.9 197.3 196.9 195.9(P) 196.1(P) 196.6(P) 2014 197.7(P) 198.8(P) R : Revised P . Preliminary. All indexes are subject to revision four months after original publication. 4/29/2014