HomeMy WebLinkAboutCC RES 2016-68RESOLUTION NO. 2016-68
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 RESIDENTIAL/ COMMERCIAL RECYCLING
AND NEW VEHICLE IMPACT/ROAD MAINTENANCE FEE
CONTAINED IN CONTRACT NO. C27411 — 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 extends 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.
SECTION 3: The Franchise Agreement now provides for Tax Roll Billing that
commenced with the November 2015 Tax Roll for the billing period of July 1, 2015 to
June 30, 2016 and shall continue until such time as rescinded.
Resolution No. 2016-68
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, 2016, ratifies the 0% (December 2014 to December 2015) Producer
Price Index and 12.65% gate/disposal fee pass through increase for solid waste
collection and recycling service requested by Burrtec Waste and Recycling as provided
for in the Franchise Agreement for 2016.
SECTION 6: Burrtec to hold Producer Price Index (PPI) Increase (does not
include tipping fee/disposal increase) for three (3) years (2015, 2016, and 2017) for
commercial only commencing in July 1, 2015. Burrtec extended PPI exemption to
residential for the 2016 year only.
SECTION 7: That the County of Riverside has increased the per ton
gate/disposal fee at the transfer station/landfill from $44.24 to $45.11 an increase of
$0.87 for Disposal Tipping Fee per ton and from $28.00 to $31.00 and increase of $3.00
for Greenwaste Tipping Fee per ton.
SECTION 8: The City Council of the City of Palm Desert, California, approves
the new solid waste and recycle rate increases for 2016 as reflected in Exhibit 3A, 3B,
and 3C to become effective July 1, 2016.
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, effective November 1, 2013.
SECTION 12: The City Council approved a phased in approach to
implementation of the food waste recycle program and the recycle and vehicle
impact/road maintenance fees, commencing with the vehicle impact fee/road
maintenance fee in 2016.
SECTION 13: The City Council approved the implementation of the Vehicle
Impact/Road Maintenance Fee effective July 1, 2016, at the rate of 6.39% residential,
6.37% commercial, and 6.46% roll off as reflected in Exhibit 3A, 3B, and 3C
2
Resolution No. 2016-68
SECTION 14: 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.
SECTION 15: 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. During the period of June 1, 2015 to May 31, 2016, Burrtec purchased two roll
off and one residential front end loader trucks.
PASSED, APPROVED, AND ADOPTED this 14th day of July, 2016, by the City
Council of the City of Palm Desert, California, by the following vote, to wit:
AYES: HARNIK, JONATHAN, TANNER, WEBER, and SPIEGEL
NOES: NONE
ABSENT: NONE
ABSTAIN:NONE
ATTEST:
111P0W11 C _
RA ' ELLE D. KLASSE , ITY CLERK
CITY OF PALM DESERT, CALIFORNIA
OBERT A. SPIEG
3
RESOLUTION NO. 2016-68
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RESOLUTION NO. 2016-68 EXHIBIT 4A
Residential Rates Adjustment
City of Palm Desert
Rate Adjustment - July 1, 2016
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, recycilng fees, and service
Revenue Component (net of Franchise Fees) Annual Amount
Residential Rate Revenue Net of Franchise Fees (c) $2,970,024
Less: Actual Residential refuse Disposal Expense $570,322
Less: Actual Residential refuse GW Expense $95,0551
Less: Actual Residential Recycling Fees $0
Residential Service Revenue $2,304,6481
Step Three: Caluclate percentage change in adjustment factors
Adjustment Factor
Disposal Tipping Fee per Ton
Greenwaste Tipping Fee per Ton
Recycling Fee per ton
Producer Price Index (Capped at 5%)
Step Four:
Components of Actual Revenue
Refuse Disposal
Greenwaste
Recycling Fee
Service
Total
Service (g)
90-gallon automated cart collection
Manual curbside collection
Walk-in service fee
Old
$ 44.24 $
$ 28.00 $
$0.00
New
45.11
31.00
$0.00
Calculate weighted percentage change in single family rates
Component
Weight (e)
19.20%
3.20%
0.00%
77.60%
100.00%
Annual Amount (a)
$3,271,177
$301,152
I $2,970,024
Percentage of Rate Revenue Net
of Franchise Fees
100.00%
19.20%
3.20%
0.00%
77.60%
Index Change
Rate Component Percent Change (f)
Step Five: Apply weighted percentage change to single family rates
Current Monthly Rate
(Example Only) (h)
Weighted Rate
Adjustment (i)
'NOTE 11
$10.83 0.721%
$11.92 0.721%
$8.95 0.721%
Vehicle Impact
Fee
$0.69
$0.69
$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 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."
0.87
3.00
$0.00
0.0
1.97%
10.71
0.00%
0.00%
Rate Change
$0.08
$0.09
$0.06
Rate
Component
Percent Change
(dl
1.97%
10.71%
Weighted Rate
Adjustment
0.378%
0.343%
0.000%
0.000%
0.721%
Adjusted
Monthly Rate (j)
$11.60
$12.70
$9.59.
6/22/2016 6/22/2016
RESOLUTION NO. 2016-68 EXHIBIT 4B
Commercial Bin Rates Adjustment
City of Palm Desert
Rate Adjustment - July 1, 2016
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
Annual Amount (a)
$4,524,813
$277,149
$4,247,664
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
Commercial and Multi -Family Rate Revenue Net of Franchise Fees (c) $4,247,664 100.00%
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 $3,254,355 76.62%
Step Three: Caluclate percentage change in adjustment factors
Adjustment Factor Old New Index Change
Disposal Tipping Fee per Ton
Recycling Fee per ton
Producer Price Index (Capped at 5%)
$44.24
$0.00
0.0
$45.11
$0.00
0.0
1.97%
0.00%
0.0
Rate
Component
Percent Change
(d)
1.97%
0.00%
Step Four: Calculate weighted percentage change in single family rates
Component I Weighted Rate
Components of Actual Revenue Rate Component Percent Change (f)
Weight (e) Adjustment
:fuse Disposal 23.38% 1.97% 0.460%
-ecycling Fee 0.00% 0.00% 0.000%
Service 76.62% 0.00% 0.000%
Total 100.00% 0.460%
Service (g)
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
Step Five: Apply weighted percentage change to single family rates
Current Monthly Rate
(Example Only) (h)
Weighted Rate
Adjustment (i)
(NOTE 1)
$100.94 0.460%
$180.35 0.460%
$235.25 0.460%
$331.48 0.460%
$411.32 0.460%
$490.89 0.460%
$49.15 0.460%
Rate Change Vehicle Impact Adjusted
Fee Monthly Rate (j)
$0.46
$0.83
$1.08
$1.52
$1.89
$2.26
$0.23
(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."
'^) Rom "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.
.. r) 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."
$6.43
$11.48
$14.97
$21.10
$26.18
$31.24
$3.13
$107.83
$192.66
$251.30
$354.10
$439.39
$524.39
$52.51
6/22/2016
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Residential Monthly Service Rates - Effective 7/1/2016
City of Palm Desert
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Residential Monthly Service Rates - Current
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following voluntary or involuntary suspension of service
following voluntary or involuntary suspension of service
Returned Check Fee
Returned Check Fee
Cart Exchange - for entire HOA's (per cart exchanged)
Cart Exchange - for entire HOA's (per cart exchanged)
Commercial Trash Service Rates - Effective 7/1/2016
RESOLUTION NO. 2016-68
Container Size
Rate Adjustment- Schedule 4B
Vehicle Impact Fee Only
Commercial Collection
0.46% EXHIBIT 3B
6.37%
Multiplier: 106.830%
Pickups ler Week
Commercial Refuse Cart $
Commercial Greenwaste Car $
2 Cubic Yards $
3 Cubic Yards $
4 Cubic Yards $
6 Cubic Yards $
**Locking Bin Fee $
1 2 3 4 5
12.88 $ 25.75 $ 38.64 $ 51.51 $ 64.39 $
10.06 $ 20.09 $ 30.17 $ 40.21 $ 50.27 $
81.87 $ 143.57 $ 205.72 $ 267.22 $ 329.17 $
107.83 $ 192.67 $ 251.32 $ 354.12 $ 439.41 $
148.25 $ 248.79 $ 352.69 $ 456.96 $ 585.18 $
224.66 $ 377.66 $ 536.13 $ 694.48 $ 839.18 $
9.74 $ 19.48 $ 29.22 $ 38.95 $ 48.69 $
"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
$ 38.31
$ 52.51
$ 70.95
$ 106.45
$ 141.89
$ 141.89
(Extra Empty
Charge)
$ 20.81
$ 21.65
$ 42.60
$ 103.46
Commercial Recycling Service Rates - Effective 7/1/2016
% of Trash Service Rate*:
Commercial Collection
Pickups 3er Week
1 2 3 4
Container Size
Commercial Recycle Cart *
2 Cubic Yards *
3 Cubic Yards*
4 Cubic Yards*
6 Cubic Yards*
**Locking Bin Fee
4.51
28.65
37.74
51.89
78.63
9.74
$ 9.01
$ 50.25
$ 67.43
$ 87.08
$ 132.18
$ 19.48
$ 13.52
$ 72.00
$ 87.96
$ 123.44
$ 187.65
$ 29.22
**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*
$ 18.03
$ 93.53
$ 123.94
$ 159.94
$ 243.07
$ 38.95
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
$ 22.54
$ 115.21
$ 153.79
$ 204.81
$ 293.71
$ 48.69
$ 13.41
$ 18.38
$ 24.83
$ 37.26
(Extra Empty
Charge)
$ 20.81
$ 21.65
$ 42.60
$ 103.46
6
77.26
60.17
430.93
524.42
656.58
999.23
58.43
35.00%
6
$ 27.04
$ 150.83
$ 183.55
$ 229.80
$ 349.73
$ 58.43
6/22/2016
City of Palm Desert
Roll off Service Rates - Current
RESOLUTION NO. 2016-68
17e,Rrrintjnn
Standard Refuse Pull Charge (c )
Standard Greenwaste/Construction & Demolition Pull Charge (c )
Compactor Pull Charge (c )
Landfill Disposal Charge
Greenwaste Disposal Charge
Construction and Demolition Disposal Charge
Rental Fee Per Day
EXHIBIT 3C
Rate Per Pull
$ 139.51
$ 132.49
$ 225.14
actual cost (a)
actual cost (b)
actual cost (c)
$ 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
(Roll -Off Delivery , Relocation Charge, Re -Start Fee
Returned Check Fee
Roll off Service Rates - Effective 7/1/2016
Rate Adjustment- Schedule 4B
Vehicle Impact Fee Only
Descrintinn
Standard Refuse Pull Charge (c )
Standard Greenwaste/Construction & Demolition Pull Charge (c )
Compactor Pull Charge (c )
Landfill Disposal Charge
Greenwaste Disposal Charge
Construction and Demolition Disposal Charge
Rental Fee Per Day
Rate
$ 19.77
$ 20.57
0.00%
6.46%
Multiplier: 106.46%
Ratp Per Pull
$ 148.52
$ 141.05
$ 239.68
actual cost (a)
actual cost (b)
actual cost (c)
$ 9.73
(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
Roll -Off Delivery , Relocation Charge, Re -Start Fee
Returned Check Fee
Rate
$ 21.05
$ 21.90
6/22/2016