HomeMy WebLinkAboutSR - Res 07-38 - Burrtec Rate ScheduleCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: Consideration of Request by Burrtec Waste and Recycling for
Approval of the Annual Producer Price Index (PPI) Rate Increase
SUBMITTED BY: Frankie Riddle, Director of Special Programs
DATE: June 14, 2007
CONTENT: 1. Burrtec letter dated March 19, 2007, requesting Annual PPI
increase effective July 1, 2007.
2. Waste Management of the Desert letter dated May 26, 2006,
regarding additional revenues generated by the 100% PPI
rate increase, with Exhibits 5A, 5B, and 5C new rate sheets
3. Exhibits 5A, 5B, and 5C Example Rate Sheets
4. Riverside County Approval of Gate Fee Increase at Edom
Hill Transfer Station.
RECOMMENDATION:
By Minute Motion, waive further reading and adopt Resolution No. 07-38 , approving
the new adjusted rate schedule of fees (rate schedules, Exhibits 5A, 5B, and 5C) for the
collection, recycling, and disposal of municipal solid waste and residential/commercial
recycling contained in Contract No. C17230 - Solid Waste Management Services;
BACKGROUND:
The current franchise agreement allows Burrtec Waste and Recycling to apply for an
annual rate increase of 50% of PPI; however, City Council approved an increase to
100% of PPI with the assignment from Waste Management of the Desert to Burrtec. It
was requested that the 100% PPI increase be granted automatically each year;
however, Council directed staff to submit the Annual PPI increase request to the
Council each year for review and approval.
The rate increase of 100% of PPI is 1.1 % for 2007, which is estimated to generate
approximately $75,000 or $37,500 over the 50% of PPI. The Board of Supervisors
approved a rate increase of 2.94% for the gate fee at Edom Hill Transfer Station. In
addition to the PPI increase, Burrtec has included the increased gate fee within the
adjusted rate sheets.
If approved, residential customers with a 96-gallon cart will pay $10.58 vs. 10.43 per
month, 64-gallon cart will pay $8.46 vs. $8.34 per month, and 32-gallon cart will pay
$6.35 vs. $6.25 per month. All rates and types of service (e.g., residential or
CITY COUNCIL STAFF REPORT
BURRTEC WASTE AND RECYCLING ANNUAL PPI RATE INCREASE
commercial) depend on the type of service, size of container, and number of weekly
pickups.
The increase to 100% of PPI was approved based on the need for the waste hauler to
recoup the costs to implement the automated collection system. The estimated capital
outlay to implement this system was estimated at $2.1 million, which would include
24,000 refuse and recycling carts as well as five (5) trucks. (As a reminder, the trucks
were not for Palm Desert use only.)
Staff recommends that the City Council approve the new adjusted rate schedule of fees
for the collection, recycling, and disposal of municipal solid waste as outlined in the new
rate schedules that reflects 100% of PPI Annual Rate Increase.
Submitted By:
Frankie'F�iddle
Director of Special Programs
Concur:
Approval:
Carlos L. 0
City Manag
.;ITY COUNCIL A TION:
APPROVED DENIED
RECEIVED OTHER
MEETING DATE (o .1 •O7 _
AYES 1'>SLi) Fi nerft 6,-or Kel (/I
7,l'7 NOES : C5(7�-
Sheila R. an ABSENT: I
ACM of Community Servi ABSTAIN: .
VERIFIED BY: kOkFile
1i71021
"riginal on File with City Clerk's Office
2