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Home My WebLink AboutRes 2013-54 - Burrtec Waste/Recycling Svc - PPI Fee Increase CITY 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 AND APPROVAL OF THE NEW COMMERCIAL RATE SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: August 22, 2013 CONTENTS: 1. Copy of Proposition 218 Notice 2. Exhibit 3A-C: New Residential, Commercial, and Roll-off Rate Sheets (New Commercial Recycle Fee included at bottom of Exhibit 3 - Commercial Rate Sheet) 3. Exhibit 4A-C: Residential, Commercial, and Roll-off Rates Adjustment 4. Exhibit 5A: Adjustment to 850 (AB939) Fund 5. Producer Price Index (PPI) 6. Coachella Valley Cities Rate Comparison; and 7. Resolution No. 2013- 54 Recommendation 1) By Minute Motion, approve the proposed 1.2% PPI rate increase and 1.85% gate/disposal fee increase from $40.54 to $41.28 per ton; 2) Waive further reading and adopt Resolution No. 2013- 54 , 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. C- 2�410 Solid Waste Management Services; 3) By Minute Motion, approve the new Commercial Recycle Fee set at 35% of trash rate; 4) By Minute Motion, apply the rate increase to resident and commercial billing accounts. Staff Report Burrtec Annual Solid Waste Rate Increase August 22, 2013 Page 2 Executive Summary On April 8, 2013, 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 2011 to December 2012 time period. Originally, City staff was preparing to bring this item before City Council for approval at its meeting of May 23, 2013; however, Robert Hargreaves of the City Attorney's office notified staff that commencing with 2013, the City should follow Proposition 218 procedures which require that residents and businesses be notified of the intended rate increase and provided an opportunity to comment. As such, the item was placed on hold until residents/businesses were notified and provided a 45-day comment period. The letter mailed to residents and businesses provided information on the 2013 rate increase and the formula for future rate increases up to the maximum five-year period. As a result, yearly notices will not be required until after July 1, 2017; therefore, the City will not have to issue another notice until the 2018 proposed rate increase. Based on the attached Exhibit 3 Rate Sheets, Burrtec is requesting a $.74 per ton rate increase of the Edom Hill gate fee from $40.54 to $41.28. The overall proposed rate increase breaks down to a $.19 increase ($10.77 for 96 gallon container) for residential service of a 96-gallon container and an increase of $3.68 ($232.85 actual rate) for commercial service of a 3-yard bin serviced three times a week. (The above rates take into account the time difference from a July 1 to September 1 implementation date.) As a result, since the above rates were not approved in July, they will only be in effect until June 30, 2014. Therefore, with the proposed 2014 rate increase, Burrtec will be required to base its rate increase from the original rates of $10.72 for residential and $232.24 for commercial based on the above container sizes and service. Staff has also compared Palm Desert rates to those of other local cities and found that it still has the lowest rates in the Coachella Valley. Since July 2012, Burrtec pays the City $1.87 per ton through AB939, down from $4.19 per ton in 2011. The reduction was the result of Council's decision to offset the rate increase to residents through the reduction of the AB939 fee. Staff is proposing that the 2013 increase be applied to Burrtec residential customers instead of being offset through AB939 otherwise the reduced AB939 fee will be $1.06 per ton. In addition, as stated in Section 4.6.4 of the Solid Waste and Recycle Contract with Burrtec, "once the State approved mandatory recycling (approved in 2011 with the passage of AB341), the City and Burrtec may revisit the Free Commercial Recycle Staff Report Burrtec Annual Solid Waste Rate Increase August 22, 2013 Page 3 Program and the possible fee assessment annually. The City and Company shali negotiate in good-faith a fee at such time as the City or State mandates mandatory recycling." As such, Burrtec has requested that a new Commercial Recycle Rate be approved as outlined at the bottom of Exhibit 3 — Commercial Rate Sheet. The proposed rate is 35% of the established commercial trash rate and includes the 8% Franchise Fee technically reducing the fee to 27% to Burrtec and is estimated to generate approximately $826,000 annually. Staff has reviewed the proposed rate, compared it to rates within the market, and found that the rate is within reason. Discussion Since 2010, the City has utilized a portion of its Recycle Funds (A6939) to offset the rate increase to Palm Desert residents, which has dropped the $8.25 fee paid to the City through Burrtec to $1.87. Currently, the City receives approximately $75,000 - $100,000 each year from Burrtec at the $1.87 rate to maintain and implement recycle programs and other City projects. If City Council opts to reduce the AB939 fee to cover the increase to residents, the fee would then be reduced to $1.06 per ton generating approximately $50,000 annually. At this point, there would be very minimal new recycle funds to offset costs associated with diversion programs. There is approximately $4,000,000+ in the Recycle Fund. However, with current expenditures for various programs and projects of approximately $800,000 - $1,000,000 annually, the account would be depleted in approximately four to five 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 completely expended, payment for programs and projects as well as staff salaries currently offset through recycle funds would 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 At-Home Household Hazardous Waste (HHW) Collection Program, Annual Shredding Program, Multi-Family Housing Recycle Program, etc. 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. As a result, staff has contracted with a consultant to develop a Recycle Nexus Study to address recycling programs and funding, which will be brought before City Council in the near future. In addition to recycle programs, staff has utilized recycle funds to offset street improvements caused by waste trucks and the purchase of materials and supplies (i.e., Staff Report Burrtec Annual Solid Waste Rate Increase August 22, 2013 Page 4 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 place to help relieve the General Fund in the past three years and is part of the three R's (reduce, reuse, recycle). Given that the economy appears to have begun to stabilize, and 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 and approve the new commercial recycle rate. Fiscal Analvsis The proposed rate increase(s) will not have a negative impact to the City's General Fund. However, if the increases were applied to the AB939 fee, the City would receive less AB939 funds annually. CITYCO'UNCii,��lTOPf APPROVED D�D RE EIVF� OTHER Submitted B : �'� MEET G DA � � AYES �n NOES: ABSENTt ankie Riddle, Director of Special Progra A�= VERIFI�D BY3 Approval: Originni on Fitsw►!th C lerk'stJ�Qie� * 1)By Minu� Motion, approve the proposed 1.2� PPI rate �� increase and 1.85� Gate/Disposal. Fee Increase from ��--- $40.54 to $41.28 per ton; 2) waive further reading �.. and adopt Resolution No. 2013-54, approving the new ' _ rate schedule of fees (Exhibit 3 for O M. Wohlmuth, City Manager Residential, Commercial, and Roll-off) for the Collection, Recycli_ng, and Disposal of Munici_pal Solid Waste and Residenti.�l/Commercial Recyclin� contaired in Contract No. C27410 - Soli_d Wa.ste Mana.gement Services; 3) by N;irute Mot�_on, r_ontinue public hearing consideration of the new Comr.iercial Recycle Fee set at 35� cf Trash Rate to the meeting of September 26, 2013, including schedu]_ing a Study Session on this matter. for 2:00 p.m. prior to said Council Meeting; 4) by N:inute. Motion, apply thP PPI Rate and Gate/DispoGal Fee increase� t� the Ci_ty's AB 939 Fund instead of resident ard �ommerci�l bi]_ling �ccounts for. FY 2013-2014. 5=0 � NOTIC[; OF PUBI,IC HEARING � Proposed Increases to Charges for Integrated Solid Waste Management and Recycting Services City of Palm Desert Civic Center Council Chamber 73-510 Fred Waring Drive,Palm llesert,CA 92260 Notice is hereby given that on Thursday, August 22, 2013, at 4:00 p.m., or as soon thereafter as the matter n�ay be heard, the City Council of the City of Palm Desert ("City C'o�incil") will hold a public hearina on propased incre�ses and future adjustments ta the rates f�e char�e�for solid waste mana�em�nt services ("Refuse Fees"). At thc public hearing, the City Council wil) hear and consider all objections or protests to the proposed increases and future adjustments. Reasons Cor the Rate Increases On May I5, 2009, the City of Palm Desert ("City") entered into an exclusive franchise agreement with Burrtec Waste and Recycling Services, LLC (`Burrtec") for the collection and handling of solid waste, green waste, and recycling within the city. Pucsuant to the franchise agreement,the amount to be paid to Burrtec each year for solid waste management services may be increased each July 1 by a cost-of-living adjustment ("COLA"). The COLA is based on the percentage change in the Producer Price Index for Finished Goods, and may not to exceed 5%. Actditionally,the amount paid to Burrtec may be adjusted for any ii�creases in rates for the tipping fees ("Tipping Fees") paid to Riverside County for disposal of solid waste at the Riverside County (Edom Hill) Transfer Station. In order to t•ecover the increased costs of providing solid waste and recycling services as a result of the authorized COLA and any future increases in the Tipping Fees,the City has determined that it is necessary to increase the rates for the Refuse Fees it imposes on its solid waste disposal customers. Basis Upon Which the Refuse Fees Are Calculated The franchise agreement establishes a formula for the Refuse Fees. The rate structure for residential customers is comprised of two components: (1) residential solid waste collection charges, which are determined on the basis of the size of the refuse container and/or the type of service provided (e.g., manual curbside service or automated service); and (2) a residential greenwaste container charge, which is a fixed monthly charge per container. The rate structure for commercia( customers' Refuse Fees is comprised of four components: (1) commercial solid waste collection charges, which are fixed charges determined on the basis of the size of the bin and number of pickups per week; (2) commercial green waste collection charges, which are determined on the basis of the amount of green waste generated and disposed of (in cubic yards) and the number of pickups per week; (3) commercial recycling waste collection charges, which are determined on the basis of the size of the bin and number of pickups per week; and (4) locking bin fees, which are determined on the basis of the number of pickups per week. Proposed Rates The proposed rates for the Refuse Fees for solid waste, green waste, and recycling services have been detennined to be the amount necessary for Burrtec to provide its solid waste management services in accordance with the francllise agreement. The proposed rates for Refuse Fees for residential customers who are directly billed will be in effect beginning October 1, 2013, if adopted. The proposed rates for Refuse Fees for commercial customers and residential customers who are master billed through a homeowners or other association will be in effect beginning September l,2013, if adopted. The proposed . rates for the Refuse Fees are shown in the tables below. Individually Billed Customers Master Billed Customers - Discounted Service Monthly Rate Service Monthty Rate Automated Refuse Service -per Cart Automated Refuse Service-per Cart (first cart) (1) (firstcart) -96 Gallon Cart $ 10.77 -96 Gallon Cart $ 9.55 -64 Gailon Cart $ 8.61 -64 Gallon Cart $ 7.65 -32 Gallon Cart $ 6.46 - 32 Gailon Cart $ 5.73 Manual Curbside Service- per Unit $ 11.84 Manual Curbside Service -Single Familyor Multi-Family $ 10.52 Manual Walk-in Service- per Unit $ 20.72 -Single Family or Multi-Family 2/wk $ 13.87 Manual In-Groung Can-per Unit $ 19.65 - Mobile Home Park- Per Unit $ 9.55 Automated Walk-in Fee-per Unit(2) $ 8.89 Manual In-Ground Can $ 13.38 Automated Walk-in Fee-addl carts (3) $ 8.89 Manual In-Ground Can 2/wk $ 16.73 $ - Greenwaste Container Service $ 1.15 Automated Walk-in Fee- per Unit(2) $ 7.90 Automated Walk-in Fee- add'I carts(3) $ - For Individually or Master-Billed Accounts $ - Greenwaste Container Service Additional Refuse Cart- Cart Size Monthty Rate $ 1.03 Automated 96 Gallon Cart $ 5.36 Automated 64 Gailon Cart $ 4.28 Automated 32 Gallon Cart $ 3.22 Commercial Collection Pickups per Week Container Size l 2 _ 3 _ 4 5 6 Commercial Refuse Cart $. 11.94 $ 23.85 $ 35.79 $ 47.73 $ 59.66 $ 71.58 Commercial Greenwaste Cart $ 9.32 $ 18.63 $ 27.95 $ 37.26 $ 46.57 $ 55.75 2 Cubic Yards $ 75.86 $ 133.01 $ 190.61 $ 247.59 $ 304.98 $ 399.27 _ __ _ _ _ _ _ _ _ 3 Cubic Yards $ 99.91 $ 178.51 $ 232.85 $ 328.10 $ 407.12 $ 485.89 4 Cubic Yards $ 137.35 $ 230.51 $ 326.76 $ 423.39 $ 542.19 $ 608.33 6 Cubic Yards $ 208.16 $ 349.92 $ 496.73 $ 643.44 $ 777.52 $ 925.81 **Locking Bin Fee $ 9.02 $ 18.04 $ 27.08 $ 36.10 $ 45.11 $ 54.12 *''Locking Bin Fee is a monthly charge based on number of pick ups per week Commercial Rec clin Collection Pickups per Week Container Size 1 2 3 4 5 6 Commercial Rec cle Cart * $ 4.18 $ 8.35 $ 12.53 $ 16.71 $ 20.88 $ 25.05 2 Cubic Yards * $ 26.55 $ 46.55 $ 66.71 $ 86.66 $ 106.74 $ 139.74 3 Cubic Yards* $ 34.97 $ 62.48 $ 81.50 $ 114.84 $ 142.49 $ 170.06 _ __ _ . _ _ 4 Cubic Yards* $ 48.07 $ 80.68 $ 114.37 $ 148.19 $ 189.77 $ 212.92 6 Cubic Yards* $ 72.86 $ 122.47 $ 173.86 $ 22520 $ 272.13 $ 324.03 **Lockin Bin Fee $ 9.02 $ 18.04 $ 27.08 $ 36.10 $ 45.11 $ 54.12 **Locking Bin Fee is a monthly charge based on number of pick ups per week -2- Beginning on July 1, 2014, and each July 1 thereafter, through and including July l, 2017, the rates for the Refuse Fees set forth in the tables above may be adjusted by the percentage change in the Producer Price Index for Finished Goods, not to exceed 5% (the "Annual COLA"). In the event that Riverside County increases the rates for its Tipping Fees, the City will also adjust the rates to pass through any such future rate increases to the Tipping Fees that are imposed on its solid waste disposed of at the landfill/transfer station ("Tipping Fee Pass Through"). Such Tipping Fee Pass Through adjustments may be imposed annually by an amount not to exceed 10% beginning on July 1, 2014, through and including July 1, 2017. Provided, however, in no event shall the rates far the Refuse Fees be adjusted as a result of the Annual COLA or any Tipping Fee Pass Through by more than the City's cost of providing solid waste and recycling services. Prior to implementing any Annual COLA or Tipping Fee Pass Through rate adjustment, the City must provide written notice of such adjustment not less than 30 days prior to the effective date of the adjustment. Public Hearing and Protests Any property owner or any tenant directly responsible for the payment of Refuse Fees (i.e., a customer of record) may submit a written protest to the proposed rate increases to the Refuse Fees; provided, however, only one protest will be counted per identified parcel. Any written protest must: (1) state that the identified property owner or customer of record is in opposition to the proposed rate increases; (2) provide the location of the identified parcel (by assessor's parcel number or street address); and (3) include the name and signature of the property owner or customer of record submitting the protest. Written protests may be submitted by mail or in person to the City Clerk at 73-510 Fred Waring Drive, Palm Desert, California 92260, or at the Public Hearing (date and time noted above), provided they are received prior to the conclusion of the public comment portion of the Public Hearing. If submitting your protest by mail, please provide sufficient time for it to arrive prior to the close of the public comment portion of the public hearing. Any protest submitted via e-mail or other electronic means will not be accepted. For written protests please identify on the front of the envelope, whether mailed or submitted in person to the City Clerk, Attn: Public Hearing on Refuse Fee Rate Increases. The City Council will consider all written protests and hear and consider all oral comments to the proposed rate increases at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon conclusion of the Public Hearing, the City Council �will consider adoption of the rate increases to the City's Refuse Fees and the annual adjustments as described herein. If written protests against the proposed rate increases are not presented by a majority of property owners of identified parcels upon which the rates are proposed to be imposed or tenants directly responsible for the payment of the Refuse Fees, the City Council will be authorized to impose the rate increases and adjustments for the Annual COLA and any Tipping Fee Pass Through as outlined above. For further details regarding the basis and reasons for the proposed rate increases to the City's Refuse Fees or for any questions you may have regarding the rate applicable to your property, please contact the City at(760) 346-0611, ext. 331. Sincerely, John M. Wohlmuth City Manager cc: Frankie Riddle, Director of Special Programs Frank Orlett, Burrtec District Manager -3- n � (n oo w d V �o s ; D D D 'rJ � D D � � � , , , � D yy /� N (D N C C � a N N .� C C C '� p � C C N N N W � (O �C L7 � \J � C � � �! 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H9 H9 H9 69 H9 69 6/j 69 6F3 69 69 69 65 69 69 69 69 69 M 7 n o a 7y ° w s °° .r �n .-� �• � 0 � oo J c t� fD -� � o� w .p w o v� v �0 7� N N O w O� O O � � �O � �l w cn oo tn J O� vi °' W Q --� N N Vi .-• W O W Oo c.n �l N W tn c.n f° \ w City of Palm Desert �,�`� ��' � CommerciTl Trash Service Rates-Current Commercial Collec[ion Picku s �er Week Container Size 1 2 3 4 5 6 Commercial Refuse Cart $ i 1.75 $ 23.48 $ 3523 $ 46.97 $ S8J1 $ 70.45 Cammercial Greenwaste Cart $ 9.18 $ 18.33 $ 275I $ 36.67 $ 45.84 $ 54.87 � 2 Cubic Yards $ 74.66 $ 130.91 $ 187.60 $ 243.68 $ 300.16 S 392.96 � 3 Cubic Yards $ 9833 $ 175.69 $ 229J"J $ 322.92 $ 400.69 5 47821 4 Cubic Yards $ 135.18 $ 226.86 $ 321.60 $ 416.69 S 533.62 $ 598.72 6 Cubic Yards $ 204_87 $ 34439 $ 488.88 $ 63328 $ 76523 $ 911_78 •*Lockin Bin Fee $ 8.88 $ 17J5 $ 26.65 $ 3552 $ 44.40 $ 5327 S 9,240.94 "Locking Bin Fee is a monthly charge based on number o(pick ups per week 2-Vard-EMra Empty $ 3494 3-Yard-Exira Empty $ 47.88 4-Yard-Exlra Empty $ 64J0 6-Yard-Eulra Emp�y S 97.06 Temporary front entl load bin-initial delivery,pickup,and disposal $ 129.39 Temporary front end toatl 6in-atltlitional dumps $ 129.39 rl;.�tru Iin�,l�� Contaminatetl Recycling Container Charge-Bin chxrgci ReStart Fee-foliowing voluntary or im�oluntary suspension of service $ 18.98 Retumed Check Fee $ 19.75 Bin Cleaning/Enclosure Clean-up Charge(for overflowed bins,afler required warnings) 5 38.85 Emer enc Service-houtl rate for one crew member and one collection Uuck $ 94.35 11.91 Trash Commercial Trash Service Rates-Effective 7/1/2013 Billed eff 9/1/]3) Mul2iplier: 107.34% Monthly Atljustment For 2 Month Delay in 2013 Rate Increase(9/1/13) Commercial Collection � Picku s er Week Picku s er Week Con[ainer Size 1 2 3 4 5 6 I 2 3 4 5 6 CommercialRefuseCarl $ 11.94 $ 23.85 $ 35.79 $ 47.73 $ 59.66 $ 7L58 $ 003 $ 0.06 $ 0.09 $ Q13 $ 0.16 $ Q19 Commercial Greenwaste Cart $ 932 $ 18.63 $ 27.95 $ 3726 $ 46.57 $ SSJS $ 0.02 $ 0.05 $ 0.07 $ 0.10 $ 0.12 $ 0.15 2 Cubic Yards $ 75.85 $ 133.01 $ 190.61 $ 247.59 $ 30498 $ 39927 $ 020 $ 035 $ 0.50 $ 0.65 $ 0.80 $ 1.05 3 Cubic Ynrds $ 99.91 $ 178.51 $ 232.85 $ 328.10 $ 407.12 $ 485.89 $ 026 $ 0.47 $ Obl $ 0.86 $ 1.07 $ 128 4 Cubic Yards $ 137.35 $ 230.51 $ 326.76 $ 42339 $ 542.19 $ 60833 $ 0.36 $ 0.61 $ 0.86 $ 1.12 $ 1.43 $ 1.60 6 Cubic Yards $ 208.16 $ 349.92 $ 496J3 $ 643.44 $ 77752 $ 925.81 $ 0.55 $ 0.92 $ 1.31 $ 1.69 $ 2.05 $ 2.44 •*Lockin Bin Fee $ 9.02 $ 18.04 $ 27.08 $ 36.10 $ 45.I I $ 54.12 $ 0.02 $ 0.05 $ 0.07 $ 0.10 $ 0.12 $ 0.14 "Locking Bin Fee is a monthly charge basetl on number of pick ups per week 2-Yartl-E�Ara Empty $ 3550 $ 0.09 3-Yard-EMra Empty $ 48.65 $ 0.13 4-Yard-6ctra Empry $ 65]4 $ 0.17 6-Yard-Extra Empty $ 98.62 $ 026 Temporary front end load bin-initial delivery,pickup,and disposal S 131.47 $ 035 Temporary front entl loatl bin-additional dumps $ 131.47 $ 035 (Extra Empry Contaminatetl Recycling ContainerCharge-Bin cnarge� kVALUE! Re-Start Fee-following voluntary or involuntary suspension of service $ 1928 $ 0.05 ReWmed Check Fee $ 20.06 $ 0.05 Bin Cleaning/Endosure Clean-up Charge(for overtlowed bins,after required warnings) $ 39.47 $ 0.10 Emergency Service-noudy rate for one crew member ana one collection tmck $ 95.86 $ 025 Commercial Recvclinc Service Rates-Effecfive 7/]/2013 %ofTrash ServiceRate*: as.00i Commercinl Collection Picku s �er Week Container Size 1 2 3 4 5 6 CommercialRec cleCart" $ 4.18 $ 8.35 $ 12.53 $ 16.71 $ 20.88 $ 25.05 2 Cubic Yards* $ 26.55 $ 46.55 $ 66J1 $ 86.6G $ 106.74 $ Ii9J4 3 Cubic Yards" 5 34.97 $ 62.48 $ 8 LSO $ I 14.84 $ 142.49 $ 170.06 4 Cubic Yards^ $ 48.07 $ 80.68 $ I 1437 � 148.19 S 189J7 5 212.92 6 Cubic Yards` $ 92.86 $ 122 47 $ 173.86 $ 22i20 $ 272.13 $ 324.03 "'Lockin Bin Fee $ 9.02 $ 18.04 $ 27.08 $ 36.10 �$ 45J I $ 54.12 "Locking Bin Fee is a monlhly charge basetl on number o/pick ups per week 2-Yara-E�Rra Empty• $ 12.43 3-Vard-EMraEmpty' $ I'.03 4-Yartl-E�dra Empiy' $ 23.01 6-Yard-E�ra Empty' $ 34.52 �ea�a emvro Contaminated RecyGing Container Charge-Bin cnarqe� Re-stan Fee-following voluntary or involuntary suspensioo of service S 1928 Returnetl Check Fee � $ 20.OG Bin Cleaning/Enclosure Clean-up Charge(for overtlowetl bins,aRer requiretl wamin9s) $ 39.47 Emer ency Service-hourry rate for one crew member and one collection truck $ 95.86 8/12/2013 City of Palm Desert ��b �� 3 Roll off Service Rates - Current 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 Da $ 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 Roll off Service Rates - Effective 7/1/2013 Multiplier: 101.20% Standard Refuse Pull Charge (c ) $ 137.73 Standard Greenwaste/Construction & Demolition Pull Charge (c ) $ 130.80 Compactor Pull Charge (c) $ 222.27 Landfill Disposal Charge actual cost (a) Greenwaste Disposal Charge actual cost (b) Construction and Demolition Disposal Charge actual cost (c) Rental Fee Per Day $ 9.13 (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. 8/12/2013 Additional Services Description Rate Roll-Off Delivery , Relocation Charge, Re-Start Fee $ 19.52 Returned Check Fee $ 20.31 8/12/2013 EXHIBIT 4A Residential Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2013 Step One: Deduct franchise fees from gross rate revenue Revenue Component(includin franchise fees) Annual Amount(a) Gross Residential Rate Revenue $3,019,573 Residential Franchise Fees (b) $197,425 Residential Rate Revenue Net of Franchise Fees $2,822,148 Step Two: Determine disposal expense, rec ciln 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) $2,822,148 100.00% Less: Actual Residential refuse Disposal Expense $511,803 18.14% Less: Actual Residential Recycling Fees 39 958 1.42°l0 Residential Service Revenue $2,270,387 80.45% Step Three: Caluclate percenta e chan e in ad'ustment factors Rate Adjustment Factor Old New Index Change Component Percent Change Disposal Tipping Fee per Ton $ 40.54 $ 41.28 1.83% 1.83% Recycling Fee per ton $1.87 $1.87 0.00% 0.00% Producer Price Index (Capped at 5%) 191.3 193.6 1.20% 1.20% Step Four: Calculate wei hted percenta e chan e in sin le famil rates Components of Actual Revenue Component Rate Component Percent Weighted Rate Wei ht e Chan e f Ad'ustment Refuse Disposal 18.14% 1.8% 0.331% Recycling Fee 1.42% 0.0% 0.000% Service 80.45% 1.2% 0.967% Total 100.00% 1.298% Step Five: Appl wei hted percenta e chan e to sin le famil rates �g� Current Monthly Rate Weighted Rate Rate Change Adjusted Service Exam le Onl h Ad ustment i Monthl Rate ( p v) O i (') y G) 90-gallon automated cart collection $10.58 1.298% $0.14 $10.72 Manual curbside collection $11.64 1.298% $0.15 $11.79 Walk-in service fee $8.74 1.298°/o $0.11 $8.85 (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." 8/12/2013 8/12/2013 EXHIBIT 4B Commercial Bin Rates Adjustment City of Palm Desert Rate Adjustment - July 1, 2013 Step One: Deduct franchise fees from ross rate revenue Revenue Component(including franchise fees) Annual Amount(a) Gross Commercial and Multi-Family Rate Revenue $3,908,919 Commercial and Multi-Family Franchise Fees (b) $231,582 Commercial and Multi-Famil Rate Revenue Net of Franchise Fees $3,677,337 Step Two: Determine disposal expense, rec ciln 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) $3,677,337 100.00% Less: Actual Commercial and Multi-Family refuse Disposal Expense $941,784 25.61% Less: Actual Commercial and Multi-Family Recycling Fees 72 357 1.97% Commercial and Multi-Famil Service Revenue $2,663,196 72.42% Step Three: Caluclate percenta e chan e in ad'ustment factors Rate Adjustment Factor Old New Index Change Component Percent Change Disposal Tipping Fee per Ton $40.54 $41.28 1.83% 1.83% Recycling Fee per ton $1.87 $1.87 0.00% 0.00% Producer Price Index(Capped at 5°/o) 191.3 193.6 1.20% 1.20% Step Four: Calculate wei hted percenta e chan e in sin le famil rates Components of Actual Revenue Component Rate Component Percent Change Weighted Rate Wei ht e Ad'ustment Refuse Disposal 26% 1.83% 0.47% Recycling Fee 2°/a 0.00% 0.00% Service 72% 1.20% 0.87% Total 100% 1.34% Step Five: Appl wei hted percenta e chan e to sin le famil rates �g� Current Monthly Rate Weighted Rate Rate Change Adjusted Service Exam le Onl h Ad ustment i Monthl Rate ( p v) O i (') y U) One 3-yard bin once per week $98.33 1.34% $1.32 $99.65 One 3-yard bin twice per week $175.69 1.34% $2.35 $178.04 One 3-yard bin three times per week $229.17 1.34% $3.07 $232.24 One 3-yard bin four times per week $322.92 1.34% $4.32 $327.24 One 3-yard bin five times per week $400.69 1.34% $5.36 $406.05 One 3-yard bin six times per week $478.21 1.34% $6.40 $484.61 Extra 3- ard empt $47.88 1.34% $0.64 $48.52 (a) For the twelve months ending the December before the July 1 rate adjustment. 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O� � l0 W � N O� N V W � �j � lD W .A N CO N V W tp � � f� � i W N � N t�l� � � t�n �N U � �O V V � O� O� VI A W y� A C N l0 N VI W VI N � N C N N V1 � F+ VI V V1 VI W N V1 � f+ V1 V VI VI W N � € t0 t0 V V � Q� O� in A � a � �O v V � O� O� in � � W D V1 �O -P N O� N O� N W C �D � N 0� N O� W W W C .p V �p N N �' W w tfl V � V �O N N F+ W W ln V W m t0 �O V CO O� Ol ln � lD V W 01 T V1 � W Ol N � W N V O W � A (P N � W N V O CO CO � tD V 01 O N N �A W �O V A � Q� O N N A W t0 V A �-` 9 Ol � � W V � 0� O � t�ll � �D N W V O� O� O � l�Jl O ^ W CO N W � O� l0 lD N VI W N DJ � 01 tD t0 N U1 V e; � V �p V � U1 N � V1 Vf �D W V � tJl V1 � Z O O� V � V1 V1 � A W Z �D Co � O �O Co A �D p � V T p N A OJ W V Vt � � O�A N A N W V V1 V � � � W t„ U� �O OJ p� V p1 tn ln A G W O� O� V O� tn tn ,9 t' N V W O O � O A � ,Q N V O� O O W O � w (p `+ T O� W ? (11 V O� i.n f O� O� O� ? in V O� in �O n & `.� �., Y � � r.i � � :i �+ o, rninaa � i mv :i :immin a � w � tD N V O� O ln DJ W 7 � �p N V O� O V1 pJ W O] 7 � in C� in i+ O� ? V in W d � W tn i-+ O� � V in W i0 d . � �w�. � N N O W SERVICE RATE COMPARISON SURVEY RESIDENTIAL SERVICE RATE LISTED ALPHABEiICALLY Residential Jurisdiction Tax Roll Rate Cathedral City $ 15.11 Coachella $ 18.06 Indio $ 15.40 La Quinta $ 12.48 Palm Desert $ 10.72 COMMERCIAL SERVICE RATE LISTED ALPHABETICALLY Commercial Jurisdiction 3yd (1x per wk) Cathedral City $ 139.66 Coachella $ 109.48 Indio $ 104.86 La Quinta $ 114.78 Palm Desert $ 99.91 LISTED ALPHABETICALLY `- Commercial Jurisdiction 3yd (3x per wk) Cathedral City $ 366.86 Coachella $ 308.68 Indio $ 294.63 La Quinta $ 295.89 Palm Desert $ 232.85 NOTE: Above Palm Desert rates will be effective as of 7/1/13, if approved by City Council. Rates listed for other cities are current approved rates for 2013. RESOLUT�ON NO. 2013- s4 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 MUNfCIPAL SOLID WASTE AND RESIDENTIAL/ COMMERCIAL RECYCLING AND NEW COMMERCIAL RECYCLE RATE CONTAINED IN CONTRACT NO. C274io — SOLID WASTE MANAGEMENT SERVICES WHEREAS, on the 1 St 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, 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: That the City Council of the City of Palm Desert, California, effective September 1, 2013, ratifies the 1.2% Producer Price Index and 1.85% gate/disposal fee increases for solid waste collection and recycling service requested by Burrtec Waste and Recycling as provided for in the Franchise Agreement. Resolution No. 2013- 54 SECTION 4: That the County of Riverside has increased the per ton gateldisposal fee at the transfer station/landfill from $40.54 to $41.28 an increase of $.74. SECTION 5: The City Council of the City of Palm Desert, California, approves the new commercial recycle rate structure established at 35% of the trash fee and to include the 8% Franchise Fee. Rate reflected on Exhibit 3 to become effective October 1, 2013. SECTION 6: The City Council of the City of Palm Desert, California, approves the new solid waste rate increases for 2013 as reflected in each Exhibit 3 to become effective October 1, 2013, for residential customers who are directly billed and September 1, 2013 for master billed HOAs/residential and commercial customers. SECTION 7: 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 8: 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 9: 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. PASSED, APPROVED, AND ADOPTED this 22nd day of August, 2013, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2 RECElYED Q Cli'Y CLER�'S CJFFICE PALH D�SE��Z , CA 2a13 JUN 26 PM 3� 4 I �� ji/��l� �i�Tr>'�r�9�rrJ��=��-`�� Cr-��`�/ C.L.t:-�"� ��3-.�i� ��Lc.:��12�N� �2. P�,�'I ��2T�,¢,��Q �� .�/z �S, '7��"/a2oP�'try C�L�.�.�'� c°>,�' �7�-��'s' �.�►-1� /� �°/�t�1 ��r- f i .�t i�v t�,�l�dsrr�c�n,� �c i7<�"' PiPC'��5� ��'�`� FL.�'�iw�-t2�9-S� ��iT�ir�9-r��v�- ��, y��,u� . ,�� , �o�� %�,� �� - /�,��1�j� ` ��v �S /� . '�"�z,sr�"' � City of Palm Desert REC�1yED Q Civic Center Council Chamber CtTY CLERK'S 0�'FICE 73-510 Fred Waring Drive, Palm Desert, CA 92260 P��`� �'�`�"°' ' � C A 2013 JUL -I PM !� 04 Dear City of Palm Desert, I am writing this letter to "protest" the recent decision the city council made regarding "proposed increases to charges for integrated solid waste management and recycling services." We all know that we have to pay some kind of fee for our waste, however the franchise agreement with Burrtec that they can increase each July by a cost of living adjustment (COLA) seems unfair for the residence of Palm Desert. Most individuals have not earned wages and salaries which reflect COLA regardless of whether the cost of living has increased or not since businesses do not use COLA. The reality is that the cost of living increases while pay wages and salaries remain the same. The majority of people cannot afford to pay the yearly proposed increase for integrated solid waste management and recycling services. As long as the cost of living continues to increase and pay wages does not increase or remain the same, individuals will continue to struggle financially specially with the proposed increase fee for integrated solid waste management and recycling services. Automated refuse service, for instance, 96 Gallon cart will increase 1.8% (from the rate of$31.74 to $32.31 per three months) on July 1, 2014, then definitely Burrtec will increase its rate every year as much as possible even they don't need to do so. Burrtec does not have many competition, have monopoly in the Coachella Valley, should find a way to cut their own budget and not pass the cost to their customers. I believe we are long overdue for some relief from the high cost of living. Therefore, I'm "protesting" the recent decision the city council had made regarding the "proposed increases fee for integrated solid waste management and recycling services." Please reconsider your decision and the effects it will have on the local population. Sincerely, Dennis Tiangco COPY TO � , �� 77115 Michigan Dr Palm Desert, CA 92211 DATE i_r l r� .%�,C�� i NOTICE UC' PUBLIC HEARING Proposed Increases to Charges for Intebrated Solid�Vaste Management and Recycling Services City of Palrn Desert Civic Center Council Chamber 73-510 Fred Waring Drive, Palm Desert, CA 92260 � Notice is hereby given that on Thursdav, Aubust 22, 2013, at 4:00 p.m., c�r as soon thercafter as thc matter may be heard, th� �ity �ouncil of the City Qf P��Im I��rt ("�itv �c��it�cil"Zwiil hold � �rui�lic hearing on proposed increascs and future adjustmcnts to the rates for charges for solid waste management � serviccs ("Refuse Fees"). At the public hcaring, the City Couiici( will hear and consider all objections or protests to the proposed increases and future adjustments. Reasons for the Rate Increases I On May 1�, 2009, thc City of Palm Descrt ("Citv") entercd into an exclusive franchisc aa�c�ent with Burrtec Waste and Recycling Services, LLC ("Burrtec") for the collection and handling of solid waste, Igreen waste, and recycling within the cEity. Pursuant to the franchise agreement, the amount to be paid to Burrtec each year for solid waste management services may be increased each July 1 by a cost=-of- living adjustment ("COLA"). The COLA is based on the percentage change in the Producer Price Index for Finished Goods,and may not to exceed 5%. Additionally, the amount paid to Bun-tec may be adjusted � for any increascs in�rates for the tipping fees ("Tipping Fees") paid to Riverside County for disposal of solid waste at the Riverside County (Edom Hill) Transfer Station. In order to recover the increased costs of providing solid waste and recycling services as a result of the authorized COLA and any future increases in the Tipping Fees, the City has determined that it is necessary to increase the rates for the Refuse Fees it imposes on its solid waste disposal customers. Basis Upon�Vhich the Refuse Fces Are Calculated The franchise agreement establishes a forniula for the Refuse Fees. The rate structure for residential � customers'- is comprised of two components: (1) residential solid waste collection charges, which are deternuned on the basis of the size of the refuse container and/or the type of service provided (e.g., manual curbside service or automated service); and (2) a residential greenwaste container charge, which is a fixed monthly charge per container. The rate structure for commercial customers' Refuse Fees is comprised of four components: (1) commercial solid waste collection charges, which are fixed charges deternlined on the basis of the size of tlie bin and number of pickups per week; (2) commercial green waste collection charges, which are determined on the basis of the amount of green waste generated and disposed of (in cubic yards) and the number of pickups per week; (3) commercial recycling �uaste collection charges, wliich are determined on thc basis of the size of the bin and number of pickups per week; and(4) locking bin fees, which are determined on the basis of the number of pickups per week. Proposed Rates The proposed rates for the Refuse Fees for solid waste, green waste, and recycling services have been determined to be the amount necessary for Burrtec to provide its solid waste management services in � accordance with the franchise a;neement. The proposed rates for t-�re—Refuse Fees for residential customers who are directly billed will be in effect beginning October l, 2013, if adopted. The proposed rates for �Refuse Fees for commercial customers and residential customers who are master billed through a homeowners' or other association will be in effect beginning September l, 2013, if adopted. The proposed rates for the Refuse Fees are shown in the tables below. , E3eginning on July 1, 2014, and each July 1 thereafter, through and including July 1, 2017, the rates fur the Refiise Eees set forth in the tables abovc may be adjustcd by the percentage change in the Prodticer Price (ndcx for Finished Goods, nut to exceed 5°0 (thc "Annual C01.A"). ln the evcnt that Kiverside County increases the rates for its Tipping Fe�s, the City �vill <j(so adjust the rates to pass through any such future rat� increases to the "I�ipping Fecs that arc irnpose�l on its solid waste disposed of at thc IandtilUtransfcr station ("Tipping Fee Pass'Throu�;h"). Such Tipping Fee Pass Through adjustments may be imposcd annually by an amount not to exceed 10`% beginning on July 1, 201�, through and including July l, 2017. Provided, however, in no cvent sh��ll the ratcs far th� Refusc Fecs bc adjusted;�s a result of the Annual CULA or any Tipping I'ec Pass Through: by more than the City's cost of providing solid �vustc and recycling serviees. Pric>r to im�l�mcilti��any Annu<�I COLfI ar Ti�ping Fee Pass Through rate adjustm�nt, the City must provide written notice of such adjustmcnt not Icss than 30 days prior to the ef�fective date of the adjustment. Public ttearin�and Protests Any property owncr or any tcnant direct(y responsiblc for thc paymcnt of ReFuse I�ccs (i.e., a cust�mer � of record) may submit a written protcst to thc proposed ratcs increases to the Refuse Fces; provided, hotivever, only one protest will be coi�nted per identificd parcel. Any writtcn protest must: (1) statc that the identified property owner or customer of record is in opposition to the proposed rate increases; (2) provide the loc�ttion of the identified parcel (by assessor's parcel number or street address); and (3) include the name and sigr►ature of the property owner or customer of record submitting the protest, Written protcsts may be submitted by mail or in person to the City Clerk at 73-510 Fred Waring Drive, Palm Desert, California 92260, or at the Public EIearing (date and time noted above), provided they are received prior to the conclusion of the public comment portion of the Public Flearing. If submitting your protest by mail, please provide sufCcient time for it to arrive prior to the close of the pubfic comment portion of the public hearing. Any protest submitted via e-mail or other e(ectronic means will not be accc;ptect. For written protests please identify on the front of the envelope, whether mai(ed or submittcd in person to the City Clerk, Attn: Public 1-icaririg on Refuse Fee Rate Increases. The City Council will consider all written protests and hear and consider all oral comments to the , proposed rate increases at the Public Hearing. Oral comments at the Public }�earing �vill not qualify as � formal protests unless accompanied by a written protest. Upon �conclusion of the Public Hearing, the City Colincil will consider adoption of the rate increases to the City's Refi�se Fees and the annual adjustmcnts as described herein. If writtcn protests against thc proposed rate incrcases are not presented by a majority of property owners of identiiicd parcels upon which the rates are proposed to be imposcd or tenants directly responsible for the paymcnt of the Refuse Fees, thc City C�uncil will be authorized to impose the rate increases and adjtistmcnts for the Annual COLA and any Tipping Fee Pass Through as outlined above. Por fur�her detai(s regarding the basis and reasons lor the proposed rate increases to the City's Refuse Fees or for any questions you may have regarding the rate applicable to your property, please contact the City at (760} 346-0611, ext. 331. Sincerely, John M. Wohlmuth City Manager I cc: Frankie Riddle, Director-of�Special Programs Frank Orlett, Burrtec District Man��g�r -3- � tLWpdain,(_'urK�kisrdFinal4'ersi��-Rru�_'-l�i � � �. a I.� G�� i� c�,�- � C�'� � _ , ` �� i � �� _ .�-- - . � a �' PQ�� . � � e� � �� _ �� , � ��`.` �� , �� C� �� . � . , �� '7 �� 7� ��"� � � � 9 � � ,,.,��/}M� T�'�� r N �., �V`�" O r � �� ` �� rC- 3n�7 1 �Tr+1('� 7O m �x_. � � ��m _'O .: n'�0 � -- D n � m 0 Klassen, Rachelle From: Roland Alden [ralden@ralden.com] Sent: Wednesday, July 03, 2013 8:31 AM To: Klassen, Rachelie Subject: letter to City Council about Burrtec Rate Increase mailing Dear City of Palm Desert; The materials you sent out say that email submissions are not "accepted" as a formal response to the Burrtec Rate Increase matter. That is fine; in my letter below I am not objecting to the rate increase or asking the Council to consider my opinion when they vote on the same. My letter addresses the form, not the substance, of the letter that was sent out. Please be so kind as to pass this along to councilmembers. To: Members of the Palm Desert City Council Dear Council, I am in receipt of a"Notice of Public Hearing"regarding "Proposed Increases to Charges for Integrated Solid Waste Management and Recycling Services"; said hearing to be August 22. I am asking you to investigate how such an unreadable document could possibly emerge from the administrative process at the City. The cost to send postal mail to every residential address has to be significant. Is there some reason why this matter could not have been handled by an article in the "Brightside" newsletter? The document itself is a masterpiece of bureaucratic obfuscation accompanied by typographic and spelling edits and errors; many of which are highlighted with change bars and underlining. The idea that a document prepared with such an apparent lack of care could find its way to a printing press, with thousands of copies mailed, is unthinkable. Let me just make a few points. Use of change markup in public documents of this nature has an established purpose: to highlight proposed changes between an existing text (law, ordinance, statute, policy, etc.) and some proposed new version. To my knowledge citizens have not, heretofore, become familiar with this exact document and are in no position to understand or care about error corrections and changes to draft text. Failure to respect the long established public understanding of such notational conventions easily leads to misinterpretation. For example, the numbers in the columns headed "Monthly Rate" are NOT shown with any sort of change notation. Citizens scanning this document may rightfully (but erroneously) conclude that rates have NOT changed. Should a citizen not be so hasty and actually try to read the text, it is almost impossible to comprehend the tortured language and use of terminology almost wholly unrelated to the common perception of trash service. Terms like "Cart" (a garbage can?), "Manual Curbside Service", "Manual Walk-in Service", "per Unit" (what is the unit, a house, a can?), "per Unit(2)", "Manual In-Groung Can" (a spelling error one assumes), "Automated Walk-in Fee". Then there is the table for "Additional Refuse Cart Size" which is confusing because the table above says "per Unit". If the fee is "per Unit" shouldn't we assume charges for multiple units is based on multiplication? Perhaps there is some discount for an"Additional Cart" but how would we know? On my Burrtec bill the terms "Trash" and "Green" are used. Why not use terms the customer may be familiar with instead of ambiguous new terms? As far as I can tell the difference between"Automated" and"Manual" service is not something the customer controls or orders or does not order. It is a function of one's neighborhood and what equipment Burrtec uses to provide service. But that is just my guess looking at the Burrtec website, and my bill. This document you have sent adds nothing. This is crazy; the document should be 1 clear and self-contained. It does not seem that the document is actually presenting the text of a motion that the City Council will vote upon, so there is no justification for the tortured legalese. The document should have been presented using plain simple language. For example the entire discussion of"tipping fees" and how the COLA is calculated is likely to be of interest to policy wonks only. An offer to mail, upon request, a redline copy of the entire City-Burrtec agreement(or proposed Council Resolution) would be sufficient. The discussion of recycling adds to the confusion. As I check my bill it seems there is no charge for recycle bins (perhaps this has been true for years). This appears to not be true for commercial accounts. It is a source of confusion that the document mixes the complexity of commercial and HOA accounts with those of residential accounts so that the majority of readers have to study the text carefully to understand facts which do NOT apply to them. However the most glaring weakness of the document is that it does not compare the proposed new rates to existing rates. This basic fact: what is being changed and by how much, is not presented clearly. From my effort at reading, it appears the COLA is capped at 5%per year and the proposal is to raise rates across the board by that full amount. If that were the case, a simply summary such as: "Currently, most Palm Desert families pay$11.72 per month for all trash services combined, including.• rolling trash cans for garbage (brown), recycling (gray), and garden waste (green). Next year this fee is going up by S% to $12.31, starting July 1, 2014. Depending upon exactly where you live, what services you use, and how you pay for service, your exact charges may be higher or lower, but in no case will they increase by more than S%. " Given simple language, as long as it is not misleading, most citizens would cease to be concerned about this matter. Instead, this mailing has raised anxiety and suspicion amongst many of my neighbors and has probably wasted inordinate time at City Hall answering questions about it. My purpose in this letter is not to register any complaint about the substance of this rate increase or actions the Council may or may not take. Rather I want to you to appreciate that this incident begs the question: if the City cannot communicate better than this on such a simple matter, how can it meet the requirements of demanding and complex issues? Sometimes City messaging seems to use sophisticated"public relations"techniques which exclude nonconforming views and control the framing of an issue. Such techniques betray trust and demean your institution. Fortunately that is not the problem here. This incident is clearly the result of carelessness and carelessness is a serious problem. In either case, improvements are needed. Signed/ Roland Alden 74741 Candlewood Street, Palm Desert, CA 92260 raldenrci�ralden.com z RECEi�'�� CIT Y CLERf�'S �JF�ICE ?AlM aESE�' ` < CA Dayton and Leslie Dickey 39866 Newcastle Dr. �Q�� ,�L -5 PM 3� 19 Palm Desert, CA 92211 July 3, 2013 City Clerk—City of Palm Desert RE: Public Hearing on Refuse Fee Increases We are opposed to the proposed rate increase for the following reasons: 1. Burrtec makes a lot of money off of recycling. The amount they make by recycling doesn't appear to have been factored in to their overall financial picture. It should be and customers who provide recycling materials to them weekly should not have to endure a rate increase. The amount Burrtec makes from recycling should offset any tipping fee increases. 2. Burrtec service needs improvement. The trucks scatter refuse all over the streets each week by sloppy handling and don't stop to pick up any of it. They appear to want to get the job done as soon as possible without any regard to quality. Until they can improve their service, a rate increase is not justified, We contrast the Burrtec service with the service we receive in our home in San Juan Capistrano. There is no comparison.No increases in fees should be contemplated until the two issues above are taken care of. /k� R��°�� 0 GlTY CLERK'S 0�1��l�E PALM DESFs:. _- CA COMPENSATION CONSULTANTS, INC. PENSION CONSULTANTS AND ACTCJARIES ��13 `��- ( ( P� �2' �� July 9, 2013 City Clerk of Palm Desert 73510 Fred Waring Drive Palm Desert, California, 92260 RE: Public Hearinq on Refuse Fee Rate Increases � Dear City Council: I am in opposition to the proposed rate increases that you are considering to be passed on to my property located at 44700 Village Court, Suite 200, Palm Desert, California, 92260. I have been a customer since 2007 when the rates were 17.76% less than what they are today. It appears that small business owners are consistently getting cost increases which they have to absorb. We are looking to you to help us stay in business and limit these increases. I have noticed that outsiders are dumping more trash in our bin and this may be due to the increase in fees over the years and the hard times we all face trying to stay in business. Sincerely yours, � __ _�� .,_.�,__-—�_« Dennis Pindiak Property Owner 44-700 Village Court, Suite 200, Palm Desert, California 92260 (760) 340-4485 • (877) 340-4485 • F� (760) 340-4786 City Council Palm Desert, Ca Dear Sirs/Madames, Our household protests the proposed refuse fee increase for individually billed customers. The wage earners here receive no automatic yearly Colas from our employers. We are confident that neither do the majority of PD businesses and employees. How are we to pay for these increases without lowering our living standard? Work longer hours? Find additional employment? Burrtec and it's employees, already no doubt generously compensated above city averages through union contracts, are not being asked to absorb any inflation increase to their budgets; only ratepayers are. This is unfair and wrong. We will endeavor to hold you accountable at election time should the living standard of public and contracted employees continue to improve at the expense of the citizens you serve. Thank you for your consideration, Mr. & Mrs. Theodore Turrentine Eunice Emerson 74096 Mercury Circle W Palm Desert, Ca 92260-2228 `%?�� e�C�L- �� '��G � C�v �,� }� `�'��L�.�U,�:�� .� � � � ' �,.� �:��u-� � � 0 � �� -�'m w �.'-�. r*,n, O ��U �n�fi �t 3 '�cn� __..�v N � � w D'} �� '� DES�` RECEIYED � � � ''� ClTY CLERK ', Cl��lCE 4� �, f'ALt-1 �j�c��: x ::A � 2013 AtlG 12 PM 3- 26 HOh�OWNERS ASSOCiATION August 9, 2013 City Clerk 73-510 Fred Waring Drive Palm Desert, CA, 92260 Subject: Public Hearing on Refuse Fee Rate Increase Attention: John Wohlmuth Dear City Council: Palm Desert Resorter, located at 77-333 Country Club Drive, Palm Desert, CA 92211 is writing this letter in response to the "Notice of Public Hearing", Recycling Services increases for HOAs proposed by Burrtec. According to comments and actions made by the city council in the past, the residents of the City of Palm Desert have done an incredible job of adding revenue to the city through the recycling program. In fact the council has taken action in the past to actually utilize the revenue gained in this program to pay fees to Burrtec when they wanted to increase the billing to the residents. Now Burrtec is suggesting an increase in the commercial collections which affect our HOA, although we continue to generate revenue for the city. If we are doing such an incredible job in assisting the city to create revenue, why not utilize some of the profits to assist the home owners by paying this increase for the HOA commercial section of this projected collection? Therefore, we protest this increase. We request that the city assist us in utilizing revenue from the commercial collections at our property to offset the increase requested by Burrtec. Several of our homeo�vners, board of directors and staff will be attending the meeting on August 22, 2013, in order to publicly address this issue, where we would like to reach a solution satisfying to all. Sincerely, � n F ,��ac�J c��r��o ��. � i+1 G� ��' Dee Peden, President � � ' Palm Desert Resorter Association pq;E �� . POST OFFICE BOX 12765 PALM DESERT, CALIFORNIA 92255 (760) 345-1954 (760) 345-5743 FAX I, Neal Victor, who resides at 73 754 Kandisnky Way, Palm Desert, CA 92211, am opposed to the proposed rate increase for refuse fees. At the gallery where I reside there are new homes constantly being built so they are getting more money because we just added 5 new houses to our block. Also may recyclables so they make money on t NealVictor 73754 Kandinsky Way Palm Desert, Ca 922111