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
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(3) Customers paying for walk-in service shall pay this fee for each additional cart
(1) Small volume commercial customers with automated carts shall pay this rate for each refuse cart
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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
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