HomeMy WebLinkAboutResolution 2012-32 Burrtec Producer Price Index IncreaseCITY OF PALM DESERT
SPECIAL PROGRAMS DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF REQUEST BY BURRTEC WASTE AND
RECYCLING SERVICES 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: May 24, 2012
CONTENTS: 1. Letter from Burrtec dated May 9, 2012, requesting Annual
Rate Increase
2. Exhibit 3: New Residential, Commercial, and Roll -off
Rates
3. Exhibit 4A-C: New Residential, Commercial, and Roll -off
Rates Adjustment
4. Producer Price Index (PPI)
5. County Landfill Tipping Fee Increase Staff Report —Approved
6. Coachella Valley Cities Rate Comparison
7. Resolution No. 2012- 32
Recommendation
By Minute Motion, approve the following:
1. Approve the proposed 3.91 % PPI rate increase and 3.52% gate/disposal
fee increase from $39.16 to $40.54 per ton;
2. Waive further reading and adopt Resolution No. 2012- 32 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; and
3. Apply rate increase to residents and commercial billing accounts.
Executive Summary
On May 9, 2012, Burrtec Waste and Recycling Services submitted a request to increase
residential, commercial, and roll -off rates for the collection, recycling, and disposal of
municipal solid waste and residential/commercial recycling. Per the Solid Waste and
Recycling Franchise Agreement, Burrtec may request an annual rate increase based on
the Producer Price Index (PPI) utilizing the December 2010 to December 2011 time
period.
STAFF REPORT
BURRTEC ANNUAL SOLID WASTE RATE INCREASE
MAY 24, 2012
PAGE 2
Upon receipt of the request, staff asked Burrtec to provide rate increase information
based on two options: 1) residents paying the rate increase, and 2) using AB939 funds
to offset the rate increase. According to Burrtec — Option 1) if the rate increase is
passed onto residents, they will pay an additional $.40 per month for a 96 gallon
container; and Option 2) if the increase is applied to AB939 funds, then the fee paid to
the City through Burrtec would be reduced from $4.19 to $1.87.
Discussion
In 2010, the City utilized a portion of its Recycle Funds (AB939) to offset the rate
increase to Palm Desert residents, which dropped the $8.25 fee paid to the City through
Burrtec to $6.02. In 2011, the City opted to offset the rate increase again dropping the
fee to $4.19. This option was considered to offset rate increases to residents during the
worst part of the economic depressed period.
Currently, the City receives approximately $200,000 each year from Burrtec at the $4.19
rate to maintain and implement recycle programs and other City projects. If the fee is
reduced to $1.87, AB939 fees would be reduced by 50 to 60 percent - approximately
$75,000 to $100,000 each year. With the City's expenses for various programs and
projects at approximately $1,000,000 each year, roughly $900,000 would have to be
drawn down from the existing recycle fund reserve of approximately $4 million, which
would result in account depletion in 4 to 5 years. In past years, staff was able to obtain
grants to assist in offsetting expenses to the Recycle Fund and that is, in part, why the
fund was able to grow to have the amount that it currently has; however, with minimal
grant opportunities and increased expenditures to the Recycle Fund, this fund is fast
being depleted. It should be noted that once the recycle funds are completed
expended, payment for programs and projects as well as staff salaries currently offset
through recycle funds will need to come from different sources such as the General
Fund.
Palm Desert residents have come to expect quality programs that are paid through
AB939 funds such as the Household Hazardous Waste (HHW) Facility. The City and
Burrtec split 50/50 the operation cost of the facility up to $25,000 and the City's portion
is paid through AB939. Since state regulations have changed to require additional
mandates, local jurisdictions continue to be burdened with the requirement to maintain,
increase, and implement recycle/diversion programs. This requires that many of our
programs remain in place and be expanded, which the City does utilizing AB939 funds.
Currently staff is working with property owners/managers of multi -family housing
complexes and commercial businesses to implement state mandated recycling
programs wherein the City purchases internal containers for units and other necessary
items to implement the programs with AB939 funds.
In addition to recycle programs, staff has utilized recycle funds to offset street
improvements cause by waste trucks and the purchase of materials and supplies (i.e.,
doggie and trash bags, street signs, park benches, etc.) made from recycled products
that would otherwise be paid through General Fund monies. These efforts were put in
STAFF REPORT
BURRTEC ANNUAL SOLID WASTE RATE INCREASE
MAY 24, 2012
PAGE 3
place to help relieve the General Fund in the past two or three years. However, once
recycle funds are expended, costs of these activities/items will fall to the General Fund
and may need to do so regardless.
Given that the economy appears to have begun to stabilized, and that there have been
significant reductions to AB939 funds already, staff recommends that City Council
approve the rate increase to be passed onto residential and commercial accounts. Any
further reduction to the Recycle Fund would have a significant negative effect on
existing and future recycle programs.
Fiscal Analysis
The proposed rate increase(s) will not have a negative impact to the City's General
Fund. The rate increase to a residential costumer for a 96 gallon container equals a
$.40 per month. Whereas a commercial customer would pay an additional $8.15 per
month for a 3 cubic yard bin serviced of 3 times per week. However, if the increase is
applied to the AB939 fund, this would have a significant negative effect on this fund and
on recycling programs in the near future. In addition, when funds from this account are
depleted, General Fund monies will have to be used to maintain and implement recycle
programs as well as pay staff salaries. Without this fund, future rate increases that
include the cost of existing and future recycle programs that are now covered by the
City could result in higher rate increases by Burrtec and would then be passed onto
residents sooner rather than later.
Submitted By: 0TY COUNCTIWTION
APPROVED DENIED
n RECEIVED OTHER
MEET
Frankie Riddle, Director of Special PrograW6 s,
ABSENT:
Approval: ABSTAIN: 0
l l VERIFIED BY:
Original on File with
elf
John M. Wohlmuth, City Manager
4
et-k's Office
* By Minute Motion: 1) Approve the
proposed 3.91Z PPI Rate Increase
and 3.52x Gate/Disposal Fee Increase
from $39.16 to $40.54 per ton;
2) direct staff to return to the City
Council with a resolution that
effects the increase to be paid
from the City's AB 939 (Recycling)
Fund. 5-0
BURRTEC
WASTE & RECYCLING SERVICES
"We'll Take Care Of It"
May 9, 2012
Ms. Frankie Riddle
Director of Special Services Programs
City of Palm Desert
72-510 Fred Waring Drive
Palm Desert, CA 92260
RE: 2012Rate Adjustment
Dear Ms. Riddle,
Please fine the attached rate sheets for your review and approval. The Producer Price Index
from December 2010 to December 2011 was 3.91%.
There are two separate rate sheets one using the $8.50 fund the other reflects the rates
without using the $8.50 fund.
The Riverside County Waste Management Department approved an Edom Hill gate fee increase
of 3.52% the rate will go from $39.16 to 40.54 a ton.
I am available at your convenience to discuss the rate adjustment request.
Sincerely,
Mike Veto
Director of Municipal Services
44 1
41-575 Eclectic Street • Palm Desert, California 92260. 760-340-5901 • Fax: 760-340-2732 • www.burrtecdesert.com
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City of Palm Desert
Commercial Service Rates - Current
Commercial Collection
Container Size
Pickups
3,er 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
$
221.04
$
311.46
$
386.47
$
461.24
4 Cubic Yards
$
130.38
$
218.81
$
310.18
$
401.90
$
514.68
$
577.47
6 Cubic Yards
$
197.60
$
332.17
$
471.53
$
610.80
$
738.07
$
878.84
"Locking Bin Fee
$
8.56
$
17.12
$
25.70
$
34.26
$
42.82
$
51.38
-"Locking Bin Fee is a monthly charge based 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%
Commercial Collection
Container Size
Pickups
per Week
1
2
3
4
5
6
Commercial Refuse Cart
$
11,75
$
23,48
$
35.23
$
46,97
$
58.72
$
70.45
Commercial Greenwaste Ca
$
9.18
$
18.33
$
27.51
$
36.67
$
45.84
$
54.87
2 Cubic Yards
$
74.66
$
130.91
$
187.61
$
243.69
$
300.18
$
392.98
3 Cubic Yards
$
98.33
$
175.69
$
229.19
$
322.94
$
400.71
$
478.24
4 Cubic Yards
$
135.18
$
226.87
$
321.61
$
416.71
$
533.65
$
598.75
6 Cubic Yards
$
204.88
$
344.41
$
488.91
$
633.31
$
765.27
$
911.23
"Locking Bin Fee
$
8.88
$
17.75
$
26.65
$
35.52
$
44.40
$
53.27
-Locking Bin Fee is a monthly charge based 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
$
129.40
Temporary front end load bin - additional dumps
$
129.40
(Extra
Empty
Contaminated Recycling Container Charge - Bin
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
Returned Check Fee
$ 18.56
$ 19.31
Roll off Service Rates -Effective 7/1/2012
Multiplier: 103.91 %
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
Returned Check Fee
$ 19.29
$ 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, 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)
$2,834,551
100.00%
Less: Actual Residential refuse Disposal Expense
$497,021
17.53%
Less: Actual Residential Recycling Fees
$65,6251
2.32%
Residential Service Revenue
$2,271,9051
80.15%
Step Three: Caluclate percentage change 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%
184.1
191.3
3.91 %
3.91 %
Step Four: Calculate weigh ed percentage chan a 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%1
3.1350/(
Total
100.00%
1 3.753%
Step Five: Apply weighted percentage change to single family rates
Service (g)
Current Monthly Rate
Weighted Rate
Rate Change
Adjusted
(Example Only) (h)
Adjustment (i)
Monthly Rate 0)
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
$8.741
3.753%1
$0.331
$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" 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.
Q) "Current Monthly Rate" plus "Rate Change."
5/8/2012 5/8/2012
EXHIBIT 413
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
$3,976,576
Commercial and Multi -Family Franchise Fees (b)
$233,507
Commercial and Multi -Family Rate Revenue Net of Franchise Fees
$3,743,069
Step Two: Determine disposal expense, recyciing fees, and service
Revenue Component (net of Franchise Fees)
Annual Amount Percentage of Rate Revenue Netof
Franchise Fees
Commercial and Multi -Family Rate Revenue Net of Franchise Fees (c)
$3,743,069
100.00%
Less: Actual Commercial and Multi -Family refuse Disposal Expense
$933,877
24.95%
Less: Actual Commercial and Multi -Family Recycling Fees
$123,856
3.31 %
Commercial and Multi -Family Service Revenue
$2,685,336
71.74%
Step Three: Caluclate percentage change 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%
184.1
191.3
3.91%
3.91%
Step Four: Calculate weighted percentage change in single family rates
Components of Actual Revenue
Component
Rate Component Percent Change
Weighted Rate
Weight a
Adjustment
Refuse Disposal
25%
3.52%
0.88%
Recycling Fee
3%
0.00%
0.00%
Service
72%
3.91 %
2.81 %
Total
1 100%1
1 3.68%
Step Five: Apply weighted percentage change to single family rates
Service (g)
Current Monthly Rate
(Example Only) (h)
Weighted Rate
Adjustment (i)
Rate Change
Adjusted
Monthly Rate 0)
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%
$8.15
$229.19
One 3-yard bin four times per week
$311.46
3.68%
$11.48
$322.94
One 3-yard bin five times per week
$386.47
3.68%
$14.24
$400.71
One 3-yard bin six times per week
$461.24
3.68%
$17.00
$478.24
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
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SUBMITTAL TO THE BOARD OF SUPERVISORS * `'
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SUBMITTAL DATE:
FROM: Waste Management Department April 10, 2012
SUBJECT: Introduction and Approval of Requested Gate Fee Increase at Edom Hill Transfer Station
RECOMMENDED MOTION: That the Board of Supervisors:
1. Introduce the requested Gate Fee changes at Edom Hill Transfer Station (EHTS) as proposed by
Burrtec Recovery and Transfer in accordance with the Master Lease Agreement (the Agreement)
related to operations at the EHTS and entered into on November 5, 2002; and
2. Set a date of May 15, 2012 for public hearing regarding the gate fee rate increase for EHTS; and
3. Direct the Clerk of the Board to advertise the public hearing through public notice for a minimum
of fourteen (14) days pursuant to Section 5(d)(1) of the Agreement; and
4. Approve the requested EHTS gate fee increases at the close of the May 15, 2012, public hearing
to be effective July 1, 2012
BACKGROUND: On November 5, 2002, the County entered into an agreement with Waste
Management of the Desert (WMOD) to develop, construct, and operate a transfer station at the Edom
Hill Landfill site once the landfill closed. The Edom Hill Landfill closed in November 2004, and the
transfer station began operation at that time. WMOD sold their rights in the agreement to Burrtec
Recovery and Transfer (Burrtec) in 2006.
(Continued)
ans W. Kernkamp, G`efieral Manager -Chief Engineer
Current F.Y. Total Cost: $ N/A In Current Year Budget: N/A
FINANCIAL Current F.Y. Net County Cost: $ N/A Budget Adjustment: No
DATA Annual Net County Cost: $ N/A For Fiscal Year: 12/13
SOURCE OF FUNDS: Not applicable Positions To Be
Deleted Per A-30
Requires 4/5 Vote ❑
C.E.O. RECOMMENDATION: APPROVE
fl
County Executive Office Signature Alex Gann
3) MINUTES OF THE BOARD OF SUPERVISORS
On motion of Supervisor Benoit, seconded by Supervisor Stone and duly carried by
unanimous vote, IT WAS ORDERED that the above matter is approved as recommended,
and is set for public hearing on Tuesday, May 15, 2012, at 1:30 p.m.
Ayes: Buster, Tavaglione, Stone, Benoit and Ashley
Nays: None Kecia Harper -Them
_
Absent: None CI 1f the Board
Date: April 24, 2012 '
1Araetca ('aft Deputy
Prev. Agn. Ref.: 12.2 (11/5f02); District: 4/4 Agenda Number:
12.3 (5/23/06)
Form 11 (Rev 0612003)
DOCS GENERAL434085-v8
12.1
F11- Introduction and Approval of Requested Gate Fee Increase at Edom Hill Transfer Station
April 10, 2012
Page 2
The Agreement between the County and Burrtec as Lessee, states that gate fee adjustments are to be
approved by the County Board of Supervisors following a public hearing. On February 10, 2012, Burrtec
contacted the Waste Management Department to communicate their intent to request a rate increase as
outlined in the Agreement. Pursuant to Section 5(b) of the Agreement, the Waste Management Department, on
behalf of Burrtec, is presenting the request to the Board of Supervisors for action.
The gate fee at the Edom Hill Transfer Station is made up of four component parts. The recapture of the
capital investment (i.e. the Facility Element) and the City Mitigation Fee are fixed by contract. The Disposal
Fee element is based on the long-term hauling contract that Burrtec has with the County and is scheduled to
be increased effective July 1, 2012, by that contract's allowable Consumer Price Index (CPI) increase, pending
Board approval. The Operating & Transport Element is the only component that Burrtec, Inc., can increase on
an annual basis.
The maximum increase allowable in any one year is equal to 80% of the percent change in the CPI for all
Urban Consumers for the Los Angeles/Anaheim/Riverside Metropolitan Area as published by the United States
Department of Labor, Bureau of Labor Statistics for the twelve month period ended December 31 of the year
prior to the July 1 effective date. For July 1, 2012, the percent increase in the Operating and Transport
element of the gate fee, based on 80% of the change in CPI on December 31, 2011 is 1.74%.
In addition, Burrtec has requested an Extraordinary Rate Adjustment, as allowed for under the Master Lease
Agreement, to the Operating & Transport Element due to the sharp increase in diesel fuel costs. Based on
these increases since 2002 (the year competitively bid facility gate rates were negotiated), Burrtec requested
an increase to the Operating and Transport Element of $0.21 per ton and $1.53 per ton, respectively. Staff
reviewed the request and adjusted the requested amounts downward based on the change in fuel costs since
2006 (the year Burrtec assumed the facility lease) and a 20% reduction to be consistent with the intent of the
lease regarding allowable increases (80% of the percent change in CPI). These changes result in a proposed
extraordinary adjustment to the Operating and Transport Element of $0.08 per ton and $0.54 per ton,
respectively. Burrtec agrees with the proposed revised adjustments which are summarized below:
Gate Fee per
Increase based
Extraordinary
Total Proposed
Gate Fee
Lease Agreement
on allowable
Rate
Gate Fee effective
Components
Jul 1, 2011
2011 CPI
Adjustment
Jul 1, 2012
Facility Element
$0.89
Not applicable
$0.89
NOMM
Operating Element
$5.22
$0.09
$0.08
$5.39
Transport Element
$5.70
$0.10
$0.54
$6.34
Disposal Fee "
$26.35
$0.57
Not applicable
$26.92
City Mitigation Fee
$ 1.00
Not applicable
Not applicable
$ 1.00
Total:
$39.16
$40.54
Form 11 (Rev 06/2003)
DOCS GENERAL4340B5-0
F11- Introduction and Approval of Requested Gate Fee Increase at Edom Hill Transfer Station
April 10, 2012
Page 3
* CPI increase for 2011=
(231.567 - 226.639) / 226.639 = 0.0271
Percent change = 2,17% Maximum allowable (80%) = 1.74%
** Recommended to the Board and will be considered after a public hearing scheduled on
May 1, 2012. If approved, the Riverside County Waste Management Department will
implement an increase in the landfill disposal fees equal to the LA/Orange/Riverside
Metropolitan Area CPI annual change (Dec. 31, 2011) of 2.17% on July 1, 2012.
The requested Extraordinary Rate Adjustment is based on the 2011 diesel fuel cost. In the event
that the per gallon cost drops significantly over the previous 12-month period, Burrtec has agreed
that, as part of the annual rate setting process, the gate rate will be adjusted to reflect the decrease
in cost. The reduction will be calculated by applying a similar methodology utilized to calculate the
increase proposed herein.
Burrtec has also requested an increase to the minimum load charge at the facility (currently $8.00
per 600-pound load). This rate has remained unchanged since the facility opened in 2004. The
low rate is intended to encourage citizen use of the facility and deter illegal dumping; however, staff
recommends a reasonable increase to $10 per 600-pound load which will still retain that desired
effect while setting the rate commensurate with the Robert A. Nelson Transfer Station and Material
Recovery Facility in western Riverside County.
California Environmental Quality Act (CEQA) Findings
Pursuant to CEQA Guidelines Section 15273, the proposed changes to the fee structure at the EHTS are
found to be statutorily exempt from CEQA, because the proposed changes for the purpose of:
• Meeting operating expense, including employee wage rates and fringe benefits,
• Purchasing or leasing supplies, equipment, or materials,
• Meeting financial reserve needs and requirements, and
• Obtaining funds for existing capital projects, necessary to maintain service within existing service areas.
A Notice of Exemption to this effect will be filed with the County Clerk upon Board of Supervisors approval of
the rate change.
Riddle, Frankie
To: Mike Veto
Subject: RE: City Rates
From: Mike Veto [mailto:mikeCcbburrtecdesert.com]
Sent: Friday, May 18, 2012 10:30 AM
To: Riddle, Frankie
Subject: City Rates
Hi Frankie,
Here are the city rates. The rate below are the new rate for 2012.
Palm Desert - $10.98 (Trash) + $1.18 (Green Waste) = $12.16
Cathedral City - $14.40 + 3% (User Utility Tax) = $14.83
La Quinta Direct Billed - $13.71
La Quinta Tax Roll - $12.31
Indian Wells Direct Billed - $20.34
Indian Wells Tax Roll - $19.43
Ranch Mirage - $16.93
Indio Direct Billed - $17.73
Indio Tax Roll - $13.89
Coachella - $18.06
RESOLUTION NO. 2012 - 32
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 15t 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 services 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 - 32
SECTION 5: The City Council of the City of Palm Desert, California, approves
the new rate increase for 2012 as reflected in Exhibit 3 to become effective July 1,
2012.
SECTION 6: That the City Council of the City of Palm Desert, California, will
retain the $4.19 per ton tipping fee (AB939) reduction and direct the funds to the special
account entitled, "Waste and Recycling Fee."
SECTION 7: That Burrtec shall forward to the City on a monthly basis an
amount equal to $4.19 (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 8: 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, 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
V1