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Home My WebLink AboutRes 2010-44 - Burrtec/Rcyclng - PPI Increase Resolution No. 2010-44 CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: CONSIDERATION OF REQUESTS BY BURRTEC WASTE AND RECYCLING FOR APPROVAL OF THE ANNUAL PRODUCER PRICE INDEX (PPI) AND COUNTY OF RIVERSIDE GATE/DISPOSAL FEE INCREASES SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: June 24, 2010 CONTENTS: 1. Exhibit 3 — Residential Rates (Using $8.25 for Gate/Disposal Fee Rate Increase Only) — Option No. 1 2. Resolution No. 2c�lo - 44 �Option No. 1) 3. Exhibit 3 — Commercial and Roll-off Recommendation By Minute Motion approve the following: 1. Approve the proposed 4.3°/a PPI rate increase and gate/disposal fee increase from $37.45 to $39.04; 2. Waive further reading and adopt Resolution No.2010 — 44, approving the new adjusted rate schedule of fees (Exhibit 3 for residential, commercial, and roll-off) for the collection, recycling, and disposal of municipal solid waste and residential/commercial recycling contained in Contract No. C27410 - Solid Waste Management Services; 3. Approve the 4.3% PPI rate increase to residents; and 4. Approve utilizing a portion of the $8.25 recycle (tipping) fee to absorb the gate/disposal fee increase of $1.59 to residents for 2010 and reduce the recycle fee to $7.81. Discussion The City negotiated a new Solid Waste Agreement in 2009. As part of the negotiations, Burrtec agreed to maintain the rates in effect at the end of the previous Agreement that expired May 31, 2008; however, these rates were actually 2006 rates as that was the last rate increase requested by Burrtec. Under the existing Agreement, Burrtec is eligible for an annual rate increase at 100% of PPI �effective July 1, 2010. As such, Burrtec has requested the annual PPI rate increase of 4.3% as well as an increase in STAFF REPORT BURRTEC ANNUAL SOLID WASTE RATE INCREASE JUNE 24, 2010 PAGE 2 the gate/disposal fee of $1.59 (from $37.45 to $39.04), which was approved by the County on June 8, 2010. As part of this rate increase, staff is proposing to utilize a portion of the recycle fund, which came about in July of 1996 when the County of Riverside reduced its disposal fee (now referred to as the gate fee) fee from $38.50 to $30.00. As a result, the County reduced or eliminated funding from solid waste and recycle programs (e.g., HHW Programs, MRF/transfer station development, AB939 Programs, landfill closure and remediation fund, and other capital and operation costs). Jurisdictions were able to decide how it would utilize the funds within certain parameters. Most of the Coachella Valley cities worked with the County and CVAG to develop the Source Reduction & Recycling Element and HHW Element that local jurisdictions refer to for basic parameters for reduction and recycle programs/activities. In addition, cities either retained the Recycle Funds (originally referred to as the 850 Fund) in the original amount of$8.50 or allowed Burrtec to retain funds. The City of Palm Desert retained its funds. Under the existing Agreement Burrtec continues to pay the City a recycle fee of $8.25 per ton that is forwarded to the City's Waste and Recycle Fund on a quarterly basis. However, as noted above, staff is proposing that City Council consider reducing the fee from $8.25 to $7.81 to absorb the gate/disposal fee rate increase to residents. The new rate would be $10.93 ($.35 increase) per month for a 96 gallon container for residents. Since offsetting the rate increase for commercial and roll-off accounts is not part the recommendation, these accounts would experience a rate increase as reflected in the respective Exhibit 3. There are sufficient funds in this account to implement existing and future diversion (recycle) programs as well as other costs associated with the recycling activities. In addition, the City would still continue to receive funds but at a reduced rate of $7.81. It should be noted that from 1996 to 1999 the City did utilized these funds to offset the PPI rate increase to residents only. A new agreement was negotiated in 2000 at which time the City stopped offsetting rate increases to residents. Another option that Council could consider would be to utilize a portion of the recycle funds to absorb the PPI and gate/disposal fee increases for 2010, which would reduce the recycle fee to $6.02 per ton. Under this option residents would not incur any rate increase for 2010 and the City would still continue to receive recycle funds. Residential customers would continue to pay $10.58 per month for a 96 gallon container. Given the financial challenges that some Palm Desert residents are experiencing as a result of the sluggish economy, staff recommends that the City again offset the rate increase to residents. Council, at minimum, should consider the option provided within the recommendation or even the second option noted directly above. STAFF REPORT BURRTEC ANNUAL SOLID WASTE RATE INCREASE JUNE 24, 2010 PAGE 3 Staff recommends that City Council approve the following: 1) the rate increases as noted in the recommendations; 2) one of the options provided above to offset the rate increase to residents; and 3) the appropriate adjusted rate schedule of fees for the collection, recycling, and disposal of municipal solid waste as outlined in Exhibits 5A, 5B, and 5C. Fiscal Analvsis The proposed rate increase(s) and options noted above will not result in a negative impact to the City's General Fund or to the existing Recycle Fund. However, depending on Council's action in regards to absorbing the rate increase to residents, the recycle fee may be reduced. Submitted By: . CITY COUNCILAC��ON APPROVED DENTED -- REEIVED..,..�....- OTHER� � ��.... ��s. . .�v�c ET G DATIy � ' Frankie iddle, Director of Special Prog�: ' ' - �' � �/. NOES: ' Approval: ABSENh ABSTAINs VERIFIED BY: Originat o�File with C�ty erk's Ot'Fce * Approved the reco�endation�, as amended to reflect that the PPI and Gate/Disposal Fee increase n M. Wohlmuth, City Manager will be wholly absorbed from the City's Recycling Fund. 5-0 EXHIBIT 3 JU�.Y 1, 2010 MAXIMUM RATES „v. � ;r� Residential Monthlv Service Rates� Individu�lly Billed�ustomers Master-Billed Customers-Disconnted Set�t�c� �°'"�' �e�rvice M�tt,ly Rate Automated Refuse Servic,e-per Cart(first Automatai Refuse Service-per Cart(first cart)(1) cart) -96 Gallon Cart $ 10.93 -96 Gallon Cart $ g,�z -64 Gallon Cart $ 8.74 -b4 Gallon Cart $ 7.78 -32 Gallon Cart $ 6.56 -32 Gallon Ct�rt $ 5,g,� Manual Curbside Service-ger Unit $ 12.02 Manual Curbside Service -Singie F�mily or Multi-Family $ 10.7� Manual Walk-in Service-per Unit $ 21.04 -Single Family orMulti-Family 2/ti�k $ 14.10 Manual In-Groung Gan-per Unit $ 19.95 -Mobile Home Park-Per Unit $ 9.72 Automated Wallc-in Fee-per Unit(2) $ 9.03 Manual In-Ground Can $ 13.61 Automated Walk-in Fee-add'1 carts(3) $ 9.03 Manual in-Grc>und Can 2/wk $ 17.02 Greenwaste Container Service $ 1.18 Automated Walk-in Fee-per Unit(2} $ 8.03 Autamated Walk-in Fee-add'1 carts(3) For IadividnaIl or M�ster�Billed Accounts Additia�t�il�te�tse Catatt-�a�rtt�ai� M'°��` Greenwaste Container Service � 1.05 Autamated 9b Gailon Cart $ 5.46 Automated 64 Gall�n Cart $ 437 Aufomated 32 Gallon CArt $ 3:28 (1)Small volurrte commercial customers with autamated carts shall pay this rate for each refuse cart. (2}Walk-in Custamers shall be charged this rate,in addition to basic sezviee rate,for one refuse cart and on�recycle cart. Disabled customers s�hall nat be charged extra for this serviee. {3)Customers paying for watle_in sercnce shall pay this fee for each additional caz-t. A . . n � i n • � i s* ' t�►Q�¢cri tion Rate Bulky Item Pick-up-each item beyond four por pick-up $ 12.25 Bullcy Item Pick-up-Apartment camplex includes four items(per Soction 4.5.2) $ 51.64 Suspension of servieelResta�rt Fee- $ 17.b6 fallowing voluntary or involuntaiy suspension af servicc Returned�heck Fee ' $ 18.37 Cart Ea+change-far entire HOA's�per cart eYchanged) $ 7.35 *Adjust usirig formula from Exhibit 4A . RESOLUTION NO. 2010 - 44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE NEW ADJUSTED RATE SCHEDULE OF FEES (EXHIBIT 5A, 5B, AND 5C) FOR THE COLLETION, RECYCLING, AND DISPOSAL OF MUNICIPAL SOLID WASTE AND RESIDENTIAL/COMMERCIAL RECYCLING 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 5A, 5B, and 5C 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, 2010, ratifies the 4.3% solid waste coltection and residential recycling service increase requested by Burrtec Waste and Recycling as provided for in the Franchise Agreement. SECTION 4: That the County of Riverside has increased the per ton disposal fee at the transfer stations/landfills from $37.45 to $39.04 an increase of$1.59. Resolution No. 2010 - 44 SECTION 5: The City Council of the City of Palm Desert, California, approves the new rate increase for 2010 as reflected in Exhibits 5A, 5B, and 5C to become effective July 1, 2010. SECTION 6: That the City Council of the City of Palm Desert, California, effective July 1, 2010, will continue to utilize a portion of the $8.25 per ton tipping fee reduction so that residential customers do not absorb the gate/disposal fee increase for 2010. SECTION 7: Burrtec shall reduce the City's tipping fee of$8.25 as identified in Section 8 (below) and forward the balance to the "Waste and Recycling Fee." SECTION 8: That Burrtec shall forward to the City on a monthty basis an amount equal to $7.81 (less the gate fee increase to residents) per ton in tipping fees as provided for within the City's Franchise Agreement and directed to the "Waste and Recycling Fee." SECTION 9: All other solid waste service rates, services, 8% franchise fee, any other fees, reports, etc. shall be in accordance with the Agreement currently in effect. PASSED, APPROVED, AND ADOPTED this 24th day of June, 2010, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: CINDY FINERTY, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2 EXHIBIT 3 (continued) JULY 1, 21�10 MAXIMUM RATES Commercial Serviee Rates* Commereial Collectian I'ickU s e��Week' Gantainer Siz�e 1 2 3 4 S b Commei�cial Refuse Cart $ 11.01 $ 22.01 $ 33.02 $ 44.02 $ 55.03 $ 66.03 2 Cubic Yards $ 69.97 $ 122.69 $ 175.82 $ 228.38 $ 2$1.32 $ 368.28 3 Cubic Yards $ 92.16 $ 1b4.65 $ 214.7$ $ 302.65 $ 375.53 $ 448.19 4 Cubie Yards $ 12b.69 $ 212.62 $ 30i.40 $ 390.53 $ 500.11 $ 561.13 6 Cubic Yards $ 192.01 $ 322.77 $ 458.19 $ 593.51 $ 717.18 $ 853.9'7 **Lockin Bin Fee $ 8.32 $ 16.64 $ 249'l $ 33.29 $ 41.61 $ 49.93 **Locking Bin Fee is a monthly charge based on nurnber ofpick ups per week 2-Yard-Extra Empty $ 32 75 3-Yard -Ektra Empty � 44 87 4-Yard-Extra Ernpty $ 60.63 6-Yard -Extra Empty $ �� 9� Temporary front end load'bin-initial delivery, pickup, and disposal $ 121,2� Temporary front end load bin-additional dumps $ 121.27 Contaminated Recycfing Container Charge-Bin (Extra Empty Charge) Re-Start Fee-following voluntary or involuntary suspension of service $ 17,7g Returned Check Fee $ 18.51 Bin Cleaning(Enclosure Clean-up Charge(for overflowed bins, a$er required warnings) $ 36.41 Emer enc Service-hourl rate for one arew member and one collectian truck $ gS,42 *Adjust using formula from Exhibit 4B __ . �XHIBIT 3 (continuedj JULY 1, 2014 MAXIMUM RATES Rall-off and Compactar Services Ra11-off and Gompactorrates are puil, plus disposal, plus delivery charge far initiat delivery, if appl�cable. I�escript��n Rate 1Per I'ull or Standard Refiise Pull Charge (c) $ 125.85 Standard Greenwaste/Construction&Demolition Pull Charge(c) $ 119.53 Compactor Pull Charge(c} $ 203.09 Landfill Disposal Charge actual cast{a} Greenwaste Disposal Cha.rge actual cast{b) Construction and Demolition Dis osal Char e actual cost c) Rental Fee Per Da $ $ 3� (a)The disposal charge per ton includes both the landfill tippin�fee (actual cost)and the City's racycling fee of$8.25 per ton. (b) 'Femporary roll off custorners may be charged a delivery charge, a pull charge,pins four tons of disposal.If disposal tonnage is less than faur tons or greater than four tons,th�customer will be credited/char�ed a.c�ordin�ly. {c) Rall-off austomers may be charged a box rental fee after seven(7)business days if thexe has been no pulls within the 7-day period. Roll-offcustomers��ho are using roll-afffor recycling purposes are not charged,this fee. Additianal Services '' I�escri tion R�ite ' Roll-oOffD�livery or Relocation Charge $ 17.83 Retumed Check Fee $ 18.55 *Adjust using formula fram E;�hibit 4C CITY OF PALM DESERT NOTICE OF PUBLIC HEARING FOR ANNUAL SOLID WASTE RATE INCREASE NOTICE IS HEREBY GIVEN THAT a public hearing will be held by the City of Palm Desert to receive public input relative to the Annual Solid Waste Rate Increase by Burrtec Waste and Recyclir�g. The City will hold the public hearing on Thursday, June 24, 2010, at 4:00 p.m., or thereabout, in the Civic Center Council Chamber at 73510 Fred Waring Drive, Palm Desert, California, to accept public comment on the proposed rate increase in the amount of 4.3% in addition to the $0.16 per ton rate increase for the County of Riverside Disposal Fee. The general public may request a copy of the verifying documents by contacting City Hall at (760) 346-0611, e�. 331. THE CITY COUNCIL WILL CONSIDER PUBLIC COMMENTS RELATIVE TO THE ANNUAL SOLID WASTE RATE INCREASE AT ITS MEETING OF THURSDAY, JUNE 24, 2010, AT 4:00 P.M. OR SOON THEREAFTER. All interested agencies, groups, and persons wishing to comment are also invited to attend the public hearing. Interested parties should appear at the above set public hearing to provide oral comments on the date, time, and location specified above. Written comments should be addressed as follows: FRANKIE RIDDLE DIRECTOR OF SPECIAL PROGRAMS CITY OF PALM DESERT 73-510 FRED WARING DR. PALM DESERT, CA 92260 RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA DATE: June 7, 2010 Klassen, Rachelle From: Moeller, Charlene [CMOELLER@palmspri.gannett.com] Sent: Monday, June 07, 2010 3:05 PM To: Klassen, Rachelle Subject: RE: BurrtecRatelncreaseLegalNotice Ad received and will publish on date(s) requested. Charlene Moeller Public Notice Customer Service Rep. The Desert Sun Newspaper ?50 N. Gene Autry Trail, Palm Springs, CA 92262 (760)778-4578, Fax(760) 778-4731 Desert Sun IeaalsCa�thedesertsun.com 8� Desert Post Weekly dpwlegals(c�thedesertsun.com The Coachella Valley's#1 Source in News&Adve�tising!Visit us at mydesert.com NOTE: Starting on March 29th,there will be a $10 affidavit processing fee added to the cost of each Public Notice __..��,.__.,_.. _._...._. � . .. ._,��...�.,., From: rklassen@cityofpalmdesert.org [mailto:rklassen@cityofpalmdesert.org] Sent: Monday, June 07, 2010 3:02 PM To: Moeller, Charlene Cc: friddle@cityofpalmdesert.org; gmartinez@cityofpalmdesert.org Subject: BurrtecRateIncreaseLegalNotice Good afternoon, Charlene. Please publish the attached: "NOTICE OF PUBLIC HEARING FOR ANNUAL SOLID WASTE RATE INCREASE" I N THE DESERT SUN- One Time—Thursday,June 10, 2010. Thank you! Rachelle na�aeeeo n,keAssaN, eMe City Clerk, City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260-2578 (760) 346-0611, Ext. 304 Fax: (760) 340-0574 e-mail: rklassen citvofpalmdesert.or� i