HomeMy WebLinkAboutResolution 2012-32A New Adjusted Rate Schedule of Fees - Solid Waste Management ServicesCITY OF PALM DESERT
SPECIAL PROGRAMS DEPARTMENT
STAFF REPORT
REQUEST: APPROVE RESOLUTION TO ASSESS 2012 SOLID WASTE AND
RECYCLING RATE INCREASE TO AB939 FUND
SUBMITTED BY: Frankie Riddle, Director of Special Programs
DATE: June 14, 2012
CONTENTS: 1. Exhibit 3: New Residential, Commercial, and Roll -off Rates
2. Exhibit 4A-C: New Residential, Commercial, and Roll -off Rates Adj.
3. Resolution No. 2012-32A
Recommendation
By Minute Motion, approve the following:
1. Waive further reading and adopt Resolution No. 2012-32A; and
2. Affirm City Council Approval of May 24, 2012, to Assess 2012 Solid Waste and
Recycling Rate Increase to the AB939 Fund.
Discussion
At its meeting of May 24, 2012, City Council approved Burrtec's 2012 request for rate increase
of $1.38, which included the Producer Price Index (PPI) and County Gate/Disposal increases.
The above increases result in a $.40 per month increase ($4.40 per year) to residents with a 96-
gallon container and $8.15 per month increase ($97.80 per year) for a commercial account with
a three yard bin serviced three times per week. See attached rate sheet for full rate disclosures.
The approval also included offsetting the rate increase to residents through the reduction of the
AB939 Fund from $4.19 per ton to $1.87 per ton. Staff was directed to prepare a resolution
outlining Council's above actions, which is attached for Council approval.
Fiscal Analysis
There will be no impact to the General Fund; however, the AB939 Fund will be reduced from
$4.19 per disposal ton each quarter to $1.87 per disposal ton each quarter.
Submitted By:
CITY COUNCIL A%.'ION
APPROVED DENIED _
RFICEIVED OTHER
Frankie Ri Dector of Special Programs
roval:
NOES: Lit
ABSENT:
A T2CTA TV
n M. Wohlmuth, City Manager VERIFIED BY
Original on File with City. erk's Office
Cn
qo
0
N CD C CW c
V
-6 F T
y
0.
n 0 y.
r�
3 3
T
T
7 O
(O (l a
T O T
O
z
z
F
' -n O (D C
O� C z 'cc
1~y
ry
M, 7
z U a a
�.
N p N �
CD
O
rt
o 3
y T O
am+
j ry O
0N
� w 3
(n
p
a
CD n
n
x ID
S N a
O
CD
7 7
CD
(D O C T
FMt
a
A
_
z CD
n
y
f�.
C
CD
a
fD
�
V
U)
1\,
Fj
N
O
A
N
ffl EA � Efl {fl
V V v O �+
�--` V O 00
A
N O CD O
N CD c C� c
i
xm
CD
3
xm
0 CD
v v
9 o
m 0 10 x 0
A+
x O CD
$ c
7
a
0 ID3 CD
`07 a 5 3
y T
N
� � o
v 3 o
(/)
O Z 1 a
X
rMD
C O
CD N p
n
O 7 O D
0) y
m OCD
C
y
�
CD O O
M
a c
_
CD
(D
z CD
A
CD y
art+
C
a
�
�
V
Cn
N
N
o
O
A
N
ffl Eta Eta ffl Ei3
cn —
w
ro
N O O 00
v O ;
U 7
a fD CD i
i
o m n i
j 3 N 1
CD O
y 7 c
0Cr
v
i o m 0
Q 0 N <
CD n Z C
CD 0
o m i
3 0) d i
a m i
D D D
C
>
C
> c
C C
O O O
O O 7 7
7
N A
i~.a
CD
N
N
0)3
3 3
rt
3 3 N
N G 0
'"J
C
N 6 w
C
>> J
W m CO
N A rn
.�
¢
n p ?c
D' O
C) o 0
G7 0 G)
O C 7
7 x T
(1
CD
w w w
3%
w w w
fD
.�.
N O
7 > >
z
aC
7 T Tr � Z
Cn
(D
ID
-1 .1-
7'
CD N 'O .p
CD
D+
a (D ID
p
rt
w
m n, C
m
7
~
J
w ^•
AC
i
y
�
N'
iL
C
Ef) Efi fFi
f) (A ffl ffi Ep
4fp ffl Efi
a
�L! O
00 00 �o O
Cyl Oo O
00
� W �
14
�P rP IP N V
IA
Cn � 00 00
CAD
C
N
"
CD
z.
CD
m
C)
w
N
O
G) DD
CD O O 7 7 Co y (n 7 N A m .y.. c
7 3 3 nc w m c7p d G) G) G) p 3
v w w CF CD m w w w N. w
y CDp_ CD 7 = T T C O O O CD
CD G) L7 O w w 7 7 7
CL
0 <`* o 0 3 3.3.N C)C)C) X
d m CD
CD C
CD CD M :3C z CD (.
0 z
CD N CD T T CD 0
0. as 3 3
(D N
_7 N
69
W
V) if) if� be �p
NN 000 0000 00 N Ul a, Ul UJ `!
4
w w' 5 a c c c 's9 0 D D D
y y O O c 0. O N C C 7 N A m ,y. c G.
R 3 3 3 3 c° 7 CD 3 3 c c c G) G) G) 0 3 C'
w
' Q CD w O W m (O O C CD t a w C 7 7 7 �+
1 a ry C, 3 N A (A O0 N N C d N N N v I ~
N y O ID w w w �o .w-. 7 F 10 y CD 3 N
i c N 7 O O O O CD �' 7 7 CD V) CD CD
3 D� c 3 7 7 7 N' C TTC)Z IDCD N
CD O CD CD j () CD
CD w m 3 w m w M + CD CD CD m p
7 y 3 CD '
c L 0 0n r� z D, U -p CD r)
°— m tiw m a� c �D a m
O CD z y ' K N 7 7 C CD O
7 C)
CD " w v
CD N CD
EA ffl Efl '� ffl ffl fH ffl ffl EA ffl Efl ffl
n O
0 0 5
3CD
,
m <
0- W rA Cs d i--� 00 Cp O CT 00 O
N N 0
00 W �C IA rVP N --I.P UWi CT 00 rD
y
U CD w w K Cn VJ w W CD CO .may.. C
w CD O O C C O 7 C N A 0)0
`G 7
3 3 w w Q m cp w G) G) G) 0 3
CD w w w w
N y d Q_ 7 7= -n -nc CD C
m 0 G) o °' 0 7>> a to
CD C) ** o 0 3 3 3.w 0C)0 X
O CD .Z .Z a w w w CD•
p 7 F 7 7-u O O CD 7. 'z � N (n >Z.
-L.
n a w y CD „�,�
O CD
-n -nN 7r CD y C n
w
O O CD CD
y CD CD m- z m
N CD A
m m (D w p f w 0) m
Nz a m x c 3 3
CD CD a �_ _ rD
CD — C < < m G
N N
y v T w
O "
ffl ffl ffl Efl ffl fH Efl fA Ef3 En >r
7
o �
s
a o
000 Cc 00 :P Ul Orn ul w � A
1
N
City of Palm Desert
Commercial Service Rates - Current
Cnmmerrial Cnllerfinn
Container Size
Pickups
3er Week
1
2
3
4
5
6
Commercial Refuse Cart
$
11.33
$
22.65
$
33.98
$
45.30
$
56.63
$
67.95
Commercial Greenwaste Ca
$
8.85
$
17.68
$
26.53
$
35.37
$
44.21
$
52.92
2 Cubic Yards
$
72.01
$
126.26
$
180.94
$
235.03
$
289.51
$
379.01
3 Cubic Yards
$
94.84
$
169.45
$
221.04Rim
386.47
$
461.24
4 Cubic Yards
$
130.38
$
218.81
$
310.18
514.68
$
577.47
6 Cubic Yards
$
197.60
$
332.17
$
471.53
738.07
$
878.84
"Locking Bin Fee
$
8.56
$
17.12
$
25.70
42.82
$
51.38
ILocKIng rsin ree is a mommy cnarge baseo on number of pick ups per week
2-Yard - Extra Empty
$
33.70
3-Yard - Extra Empty
$
46.18
4-Yard - Extra Empty
$
62.40
6-Yard - Extra Empty
$
93.61
Temporary front end load bin - initial delivery, pickup, and disposal
$
124.80
Temporary front end load bin - additional dumps
$
124.80
(Extra
Empty
Contaminated Recycling Container Charge - Bin
Charge)
Re -Start Fee - following voluntary or involuntary suspension of service
$
18.31
Returned Check Fee
$
19.05
Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required warnings)
$
37.47
Emergency Service - hourly rate for one crew member and one collection truck
$
91.00
Commercial Service Rates - Effective 7/1/2012
Multiplier: 103.68%
Cnmmerrial CnllPr+inn
Container Size
Pickups
per Week
1
2
3
4
5
6
Commercial Refuse Cart
$
11.75
$
23.48
$
35.23
$
46.97
$
58.71
$
70.45
Commercial Greenwaste Ca
$
9.18
$
18.33
$
27.51
$
36.67
$
45.84
$
54.87
2 Cubic Yards
$
74.66
$
130.91
$
187.60
$
243.68
$
300.16
$
392.96
3 Cubic Yards
$
98.33
$
175.69
$
229.17
$
322.92
1 $
400.69
$
478.21
4 Cubic Yards
$
135.18
$
226.86
$
321.60
$
416.69
$
533.62
$
598.72
6 Cubic Yards
$
204.87
$
344.39
$
488.88
$
633.28
$
765.23
$
911.18
"Locking Bin Fee
$
8.88
$
17.75
$
26.65
$
35.52
$
44.40
$
53.27
LocKmg rsin ree is a mommy cnarge baseo on number of pick ups per week
2-Yard - Extra Empty
$
34.94
3-Yard - Extra Empty
$
47.88
4-Yard - Extra Empty
$
64.70
6-Yard - Extra Empty
$
97.06
Temporary front end load bin - initial delivery, pickup, and disposal
$
129.39
Temporary front end load bin - additional dumps
$
129.39
Contaminated Recycling Container Charge - Bin
(Extra
Empty
Charge)
Re -Start Fee - following voluntary or involuntary suspension of service
$
18.98
Returned Check Fee
$
19.75
Bin Cleaning/Enclosure Clean-up Charge (for overflowed bins, after required warnings)
$
38.85
Emergency Service - hourly rate for one crew member and one collection truck
$
94.35
5/8/2012
City of Palm Desert
Roll off Service Rates - Current
Standard Refuse Pull Charge (c )
$ 130.97
Standard Greenwaste/Construction & Demolition Pull Charge (c)
$ 124.39
Compactor Pull Charge (c)
$ 211.36
Landfill Disposal Charge
actual cost (a)
Greenwaste Disposal Charge
actual cost (b)
Construction and Demolition Disposal Charge
actual cost (c)
Rental Fee Per Day
$ 8.68
(a) The disposal charge per ton includes both the landfill tipping fee (actual cost) and the
(b) Temporary roll off customers may be charged a delivery charge, a pull charge, plus four tons of
(c ) Roll -off customers may be charged a box rental fee after seven (7) business days if there has been
Additional Services
Description Rate
Roll -Off Delivery or Relocation Charge $ 18.56
Returned Check Fee $ 19.31
Roll off Service Rates - Effective 7/1/2012
1V1Ul PIlef.- IU3.y-1%
Standard Refuse Pull Charge (c )
$ 136.09
Standard Greenwaste/Construction & Demolition Pull Charge (c)
$ 129.25
Compactor Pull Charge (c)
$ 219.63
Landfill Disposal Charge
actual cost (a)
Greenwaste Disposal Charge
actual cost (b)
Construction and Demolition Disposal Charge
actual cost (c)
Rental Fee Per Day
$ 9.02
(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 Rate
Roll -Off Delivery, Relocation Charge, Re -Start Fee $ 19.29
Returned Check Fee $ 20.07
5/8/2012
EXHIBIT 4A
Residential Rates Adjustment
City of Palm Desert
Rate Adjustment - July 1, 2012
Step One: Deduct franchise fees from gross rate revenue
Revenue Component(including franchise fees
Annual Amount a
Gross Residential Rate Revenue
$3,032,108
Residential Franchise Fees (b)
$197,557
Residential Rate Revenue Net of Franchise Fees
$2,834,551
Step Two: Determine disposal expense. recvcilna 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)
$2,834,551
100.00%
Less: Actual Residential refuse Disposal Expense
$497,021
17.53%
Less: Actual Residential Recycling Fees
$65,625
2.32%
Residential Service Revenue
$2,271,905
80.15%
Step Three: Caluclate percenta a chan a in adjustment factors
Rate
Adjustment Factor
Old
New
Index Change
Component
Percent Change
Disposal Tipping Fee per Ton
$ 39.16
$ 40.54
3.52%
3.52%
Recycling Fee per ton
$4.19
$4.19
0.00%
0.00%
Producer Price Index Capped at 5%
184.11
191.31
3.91%1
3.91
Step Four: Calculate weiahted oercentage chance in single family rates
Components of Actual Revenue
Component
Weight a
Rate Component`Percent
Change
Weighted Rate
Adjustment
Refuse Disposal
17.53%
3.5%
0.618%
Recycling Fee
2.32%
0.0%
0.000%
Service
80.15%
3.9%
3.135%
Total 1100.00%
3.753%
Step Five: Apply weighted percentage chance to sinnia family ratac
Service (g)
Current Monthly Rate
Weighted Rate
Rate Change
Adjusted
Onl h
(Example Y) O
Adjustment i
1 C)
Monthly Rate
Y G)
90-gallon automated cart collection
$10.58
3.753%
$0.40
$10.98
Manual curbside collection
$11.64
3.753%
$0.44
$12.08
Walk-in service fee
$8.74
3.753%
$0.33
$9.07
(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 recyciing 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" �n 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.
0) "Current Monthly Rate" plus 'Rate Change."
5/8/2012 5/8/2012
EXHIBIT 4B
Commercial Bin Rates Adjustment
City of Palm Desert
Rate Adjustment - July 1, 2012
Step One: Deduct franchise fees from gross rate revenue
Revenue Component including franchise fees) Annual Amount (a)
Gross Commercial and Multi -Family Rate Revenue $3,893,058
Commercial and Multi -Family Franchise Fees (b) $226,826
Commercial and Multi -Family Rate Revenue Net of Franchise Fees $3,666,232
Stan Twn• na+armina riian^c l n..ne. -- ..:1— 9...._ - .
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)
$3,666,232
100.00%
Less: Actual Commercial and Multi -Family refuse Disposal Expense
$933,877
25.47%
Less: Actual Commercial and Multi -Family Recycling Fees
$123,856
3.38%
Commercial and Multi -Family Service Revenue
$2,608,499
71.15%
Stan Throw rahiria+a narran+nna rhi �.d:++s....a..-..
Rate
Adjustment Factor
Old
New
Index Change
Component
Percent Change
Disposal Tipping Fee per Ton
$39.16
$40.54
3.52%
3.52%
Recycling Fee per ton
$4.19
$4.19
0.00%
0.00%
Producer Price Index (Capped at 5%)
1 184.1
191.3
3.91%1
3.91
Stan Fnnr• ralruh+a wninh+aA nn—m+ ..h........:. L...n.....a-_
Components of Actual Revenue
Component
Rate Component Percent Change
Weighted Rate
Weight a
Adjustment
Refuse Disposal
25%
3.52%
0.90%
Recycling Fee
3%
0.00%
0.00%
Service
71 %
3.91 %
2.78%
Total
100%1
3.68%
Stan Fiva• Onniv wainh+arl +.. ,.:., c__a.. -..a
Service (g)
Current Monthly Rate
Onl h
(Example Y) O
Weighted Rate
Adjustment i
1 C)
Rate Change
Adjusted
Monthly Rate
Y U)
One 3-yard bin once per week
$94.84
3.68%
$3.49
$98.33
One 3-yard bin twice per week
$169.45
3.68%
$6.24
$175.69
One 3-yard bin three times per week
$221.04
3.68%
$8.13
$229.17
One 3-yard bin four times per week
$311.46
3.68%
$11.46
$322.92
One 3-yard bin five times per week
$386.47
3.68%
$14.22
$400.69
One 3-yard bin six times per week
$461.24
3.68%
$16.97
$478.21
Extra 3-yard empty
$46.18
3.68%
$1.70
$47.88
(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 recyciing 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."
5/8/2012
Z
O
m
N
CD
N
d
C•
3
CD
D
O
O
5
CD
cn
CD
Z
n
CD
Cn
7
O
Cn
<S
D
7
S
CD
Cv
C1
C
N
3
CD
0
c
a
0
CD
sv
3
3
CD
5
O
Cz
O
0
(Q
m
00
N
O
o
'71 n_
,C s✓
sv
0X0cnCn
m m O v v
o 3 5 3
CD C) -p Q C1
n fv
O O1 C1
o
iv 0 O
O S O O
Sv
CD Cp
m C) o
(D
CD CD
O
N CD CD
O- CD CD
O O
COD
CL Q
� N
O O
CL
C3 O
X WO
� Q
D-
O
D"
1
C
f» r� rfl rfl to
3 '
3 ci
c
N
O -
3
W CD W
O
C) -1 CO
CD
aC CD
y* to I
W W W W W
„Or
co co io co CO
3 ••
CD C I
O O
3CL
6S 6S 'Ge 'En
N
K (
0 1
00 CJ7 �i
3 S
V N �
CD
EAfflEfl6sb9
01 O Q'
CD
W N
CD CA Cfl
"3r rt
^ CD
NIv�
CZ
W COU O
0
Iz
C
COD
n
CD
7
CD D
� C
O 3 D
D (D CD
3
Q .�
TI
Cr N
o O
O
a
w
0
CD O D
0 O
=r 3 Cy
0
CD
n
= O
3
W O
CD M 3
^.3+ CD
O
3
CD
0
C1
O
C
CD
O
CD
3
C2
CD
x
m
n
L
RESOLUTION NO. 2012-32A
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, APPROVING THE
NEW ADJUSTED RATE SCHEDULE OF FEES (EXHIBIT 3
FOR RESIDENT, COMMERCIAL, AND ROLL -OFF) 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 3 and 4A,
413, 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: That the City Council of the City of Palm Desert, California,
effective July 1, 2012, ratifies the 3.91% Producer Price Index and 3.52% 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 4: That the County of Riverside has increased the per ton
gate/disposal fee at the transfer station/landfill from $39.16 to $40.54 an increase of
$1.38.
Resolution No. 2012-32A
SECTION 5: The City Council of the City of Palm Desert, California, approves
the new rate increases for 2012 as reflected in each Exhibit 3 to become effective July
1, 2012.
SECTION 6: That the City Council of the City of Palm Desert, California,
effective July 1, 2012, will utilize a portion of the $4.19 (formerly $6.02) per ton tipping
fee reduction so that residential customers do not absorb the PPI and gate/disposal fee
increases for 2012.
SECTION 7: Burrtec shall reduce the City's existing tipping fee of $4.19 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 monthly basis an amount
equal to $1.87 (less the PPI and gate fee increases 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: Rate increases as outlined in each Exhibit 3 relative to Commercial
Service Rates and Roll Off Service Rates shall be passed on to the those that utilizes
these services.
SECTION 10: 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 14t" day of June, 2012, by the City
Council of the City of Palm Desert, California, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
ROBERT A. SPIEGEL, MAYOR