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HomeMy WebLinkAboutCC RES 2015-48RESOLUTION NO. 2015- 48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING TAX ROLL BILLING, 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 RESIDENTIAU COMMERCIAL RECYCLING AND NEW COMMERCIAL RECYCLE RATE CONTAINED IN CONTRACT NO. C 274io — SOLID WASTE MANAGEMENT SERVICES WHEREAS, on the 1st day of June 2015, the City approved its Amended Franchise Agreement with Burrtec Waste and Recycling, LLC and approved the Agreement at its meeting of May 28, 2015; and WHEREAS, the term of the Franchise Agreement expores to May 31, 2023; and 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. Resolution No. 2015- 48 SECTION 3: The Franchise Agreement now provides for Tax Roll Billing commencing with the November 2015 Tax Roll for the billing period of July 1, 2015 to June 30, 2016. SECTION 4: Burrtec will pay to the City $1.06 to be divided $.73 to the Recycle and $.33 to the General Funds. SECTION 5: That the City Council of the City of Palm Desert, California, effective July 1, 2015, ratifies the 0% (December 2013 to December 2014) Producer Price Index and 6.09% gate/disposal fee increases for solid waste collection and recycling service requested by Burrtec Waste and Recycling as provided for in the Franchise Agreement. SECTION 6: Burrtec to hold Producer Price Index (PPI) Increase (does not include tipping fee/disposal increase) for three (3) years for commercial only commencing in July 1, 2015. SECTION 7: That the County of Riverside has increased the per ton gate/disposal fee at the transfer station/landfill from $41.70 to $44.24 an increase of $2.54. SECTION 8: The City Council of the City of Palm Desert, California, approves the new solid waste rate increases for 2015 as reflected in each Exhibit 3 to become effective July 1, 2015. SECTION 9: 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 10: The additional $.03 per ton was absorbed by Burrtec in mid-2013. SECTION 11: 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 12: 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 13: 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. 2015- 48 SECTION 14: Prior to the end of the term of the Franchise Agreement, Burrtec to replace eight (8) (or approximately 50%) of its route trucks with alternative fuel sources PASSED, APPROVED, AND ADOPTED this 28th day of May, 2015, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: HARNIR, JONATHAN, SPIEGEL, and TANNER NOES: WEBER ABSENT: NONE ABSTAIN: NONE ATTEST: RA HELLE D. KLASSE , CITY CLERK CITY OF PALM DESERT, CALIFORNIA Susan Marie Weber, Mayor 3 RESOLUTION NO. 2015-48 [This page has intentionally been left blank.] Cart Exchange - for entire HOA's (per cart exchanged) EA EA J O N J f b4 v 0 O W N Co 0 0 3 3 0 c 0 > (o 0) m a C. 3 0 co 3 0 O a x C A � co 13 0 0 x c if 3 co 3 (n m (j 0 N EA EA EA EA EA N W � O N N U O Additional Residential Services -Effective 7/1/2015 (3) Customers paying for walk-in service shall pay this fee for each additional cart. 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'C w 0 (A -) ,c,ro - O '0 00 A O' 'O O' J J 0' A t -) J VD A CO - .0 - d u aolnias Jaweluo0 alseMuaaJ0 Residential Monthly Service Rates - Effective 7/1/2015 VC JJ IIHXH U EXHIBIT 3B RESOLUTION NO. 2015-48 City of Palm Desert Commercial Trash Service Rates - Current Commercial Collection Pickups per Week Container Size 1 2 3 4 5 6 Commercial Refuse Cart $ 11.89 $ 23.76 $ 35.66 $ 47.54 $ 59.42 $ 71.30 Commercial Greenwaste Cart $ 9.29 $ 18.55 $ 27.84 $ 37.11 $ 46.40 $ 55.53 2 Cubic Yards $ 75.56 $ 132.50 $ 189.87 $ 246.63 $ 303.80 $ 397.72 3 Cubic Yards $ 99.52 $ 177.82 $ 231.95 $ 326.83 $ 405.54 $ 484.00 4 Cubic Yards $ 136.82 $ 229.61 $ 325.50 $ 421.74 $ 540.08 $ 605.97 6 Cubic Yards $ 207.35 $ 348.56 $ 494.80 $ 640.95 $ 774.50 $ 922.22 **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 $ 35.36 3-Yard - Extra Empty $ 48.46 4-Yard - Extra Empty $ 65.48 6-Yard - Extra Empty $ 98.24 Temporary front end load bin - initial delivery, pickup, and disposal $ 130.96 Temporary front end load bin - additional dumps $ 130.96 (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) $ 39.32 Emergency Service - hourly rate for one crew member and one collection truck $ 95.49 Commercial Trash Service Rates - Effective 7/1/2015 Multiplier: 101.424% Commercial Collection Pickups er Week Container Size 1 2 3 4 5 6 Commercial Refuse Cart $ 12.06 $ 24.10 $ 36.17 $ 48.22 $ 60.27 $ 72.32 Commercial Greenwaste Cart $ 9.42 $ 18.81 $ 28.24 $ 37.64 $ 47.06 $ 56.32 2 Cubic Yards $ 76.64 $ 134.39 $ 192.57 $ 250.14 $ 308.13 $ 403.38 3 Cubic Yards $ 100.94 $ 180.35 $ 235.25 $ 331.48 $ 411.32 $ 490.89 4 Cubic Yards $ 138.77 $ 232.88 $ 330.14 $ 427.75 $ 547.77 $ 614.60 6 Cubic Yards $ 210.30 $ 353.52 $ 501.85 $ 650.08 $ 785.53 $ 935.35 **Locking Bin Fee $ 9.12 $ 18.23 $ 27.35 $ 36.46 $ 45.58 $ 54.69 **Locking Bin Fee is a monthly charge based on number of pick ups per week 2-Yard - Extra Empty $ 35.86 3-Yard - Extra Empty $ 49.15 4-Yard - Extra Empty $ 66.41 6-Yard - Extra Empty $ 99.64 Temporary front end load bin - initial delivery, pickup, and disposal $ 132.82 Temporary front end load bin - additional dumps $ 132.82 (Extra Empty Contaminated Recycling Container Charge - Bin Charge) Re -Start Fee - following voluntary or involuntary suspension of service $ 19.48 Retumed Check Fee $ 20.27 Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required warnings) $ 39.88 Emergency Service - hourly rate for one crew member and one collection truck $ 96.85 5/8/2015 EXHIBIT 3B (CONTINUED) RESOLUTION NO. 2015-48 Commercial Recvclin2 Service Rates - Effective 7/1/2015 % of Trash Service Rate*: 35.00% Commercial Collection Pickups 3er Week Container Size 1 2 3 4 5 6 Commercial Recycle Cart * $ 4.22 $ 8.44 $ 12.66 $ 16.88 $ 21.09 $ 25.31 2 Cubic Yards * $ 26.82 $ 47.04 $ 67.40 $ 87.55 $ 107.85 $ 141.18 3 Cubic Yards* $ 35.33 $ 63.12 $ 82.34 $ 116.02 $ 143.96 $ 171.81 4 Cubic Yards* $ 48.57 $ 81.51 $ 115.55 $ 149.71 $ 191.72 $ 215.11 6 Cubic Yards* $ 73.61 $ 123.73 $ 175.65 $ 227.53 $ 274.94 $ 327.37 **Locking Bin Fee $ 9.12 $ 18.23 $ 27.35 $ 36.46 $ 45.58 $ 54.69 **Locking Bin Fee is a monthly charge based on number of pick ups per week 2-Yard - Extra Empty * 1 $ 12.55 3-Yard - Extra Empty' 1 $ 17.20 4-Yard - Extra Empty* 1 $ 23.24 6-Yard - Extra Empty* 1 $ 34.87 (Extra Empty Contaminated Recycling Container Charge - Bin Charge) Re -Start Fee - following voluntary or involuntary suspension of service 1 $ 19.48 Returned Check Fee 1 $ 20.27 Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required warnings) 1 $ 39.88 Emergency Service - hourly rate for one crew member and one collection truck 1 $ 96.85 5/8/2015 RESOLUTION NO. 2015-48 City of Palm Desert Roll off Service Rates - Current EXHIBIT 3C Description Rate Per Pull Standard Refuse Pull Charge (c) $ 139.51 Standard GreenwastelConstruction & 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 Tess 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 Roll off Service Rates - Effective 7/1/2015 Multiplier: 100.00% Description Rate Per 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 Tess 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 5/8/2015 RESOLUTION NO. 2015-48 EXHIBIT 4A Residential Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2015 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 Annual Amount (a) $3,119,944 $205,716 $2,914,228 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) $2,914,228 100.00% Less: Actual Residential refuse Disposal Expense $548,496 18.82% Less: Actual Residential Recycling Fees Residential Service Revenue $2,365,732 Step Three: Caluclate percentage change in adjustment factors Adjustment Factor Disposal Tipping Fee per Ton Recycling Fee per ton oducer Price Index (Capped at 5%) 0.00% 81.18% Rate Old New Index Change Component Percent Change Id) $ 41.70 $ 44.24 6.09% 6.09% $0.00 $0.00 0.00% 0.00% 0.0 0.0 0.00% 0.00% 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 18.82% 6.1 % 1.146% Recycling Fee 0.00% 0.0% 0.000% Service 81.18% 0.0% 0.000% Total 100.00% 1.146% Step Five: Apply weighted percentage change to single family rates Weighted Rate Current Monthly Rate Adjusted Service (g) (Example Only) (h) Adjustment (i) Rate Change Monthly Rate (j) (NOTE 1) 90-gallon automated cart collection $10.71 1.146% $0.12 $10.83 Manual curbside collection $11.78 1.146% $0.14 $11.92 Walk-in service fee $8.85 1.146% $0.10 $8.95 (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. From last column in Step Three. 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. (i) From weighted rate adjustment in Step Four. (j) "Current Monthly Rate" plus "Rate Change." 5/8/2015 5/8/2015 RESOLUTION NO. 2015-48 EXHIBIT 4B Commercial Bin Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2015 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, recycling fees, and service Percentage of Rate Revenue Net of Franchise Fees Commercial and Multi -Family Rate Revenue Net of Franchise Fees (c) $4,248,692 100.00% Less: Actual Commercial and Multi -Family refuse Disposal Expense $993,309 23.38% Less: Actual Commercial and Multi -Family Recycling Fees 0.00% Commercial and Multi -Family Service Revenue $3,255,383 76.62% Revenue Component (net of Franchise Fees) Refuse Disposal Recycling Fee Service Total Service (9) Annual Amount (a) $4, 530, 215 $281,523 $4,248,692 Annual Amount Step Three: Caluclate percentage change in adjustment factors Adjustment Factor Old Disposal Tipping Fee per Ton Recycling Fee per ton Producer Price Index (Capped at 5%) $41.70 $0.00 0.0 New Index Change $44.24 $0.00 0.0 6.09% 0.00% 0.00% Step Four: Calculate weighted percentage change in single family rates Components of Actual Revenue Component Rate Component Percent Change (f) Weight (e) 23.38% 6.09% 0.00% 0.00% 76.62% 0.00% 100.00% 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) $99.52 1.424% $177.82 1.424% $231.95 1.424% $326.83 1.424% $405.54 1.424% $484.00 1.424% $48.46 1.424% Rate Component Percent Change (d) 6.09% 0.00% 0.00% Weighted Rate Adjustment 1.424% 0.000% 0.000% 1.424% Rate Change Adjusted Monthly Rate (j) $1.42 $2.53 $3.30 $4.65 $5.78 $6.89 $0.69 (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." $100.94 $180.35 $235.25 $331.48 $411.32 $490.89 $49.15 IWO r IMO tomP 5/8/2015 0 co CP 0