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Item 1.16 - Reso Confirming Adjustments to EDCO Waste and Recycling Services’ Rate Sched.j OF PO �y Cary IN THF Co City of Poway COUNCIL AGENDA REPORT APPROVED ■ APPROVED AS AMENDED ❑ (SEE MINUTES) DENIED ❑ REMOVED ❑ CONTINUED RESOLUTION NO. 11-&Z.' DATE: May 16, 2017 TO: Honorable Mayor and Members of the City Council FROM: Michael Obermiller, P.E., Director of Public Works CONTACT: Annette Gonzalez, Public Works Administrator*y agonzalez@poway.org SUBJECT: Resolution Confirming Adjustments to EDCO Waste and Recycling Services' Rate Schedule Summary: On August 18, 2015, the City Council adopted Resolution No. 15-037 approving EDCO Waste and Recycling Services' (EDCO) rate schedule; and approving pass- through/inflationary adjustments through June 30, 2020, using the same methodology and formulas prescribed for rate adjustments in the Agreement between the City and EDCO. EDCO has requested the annual rate adjustment for Fiscal Year 2017-18. The proposed resolution (Attachment A) confirms the solid waste and recycling collection service and disposal rate schedule adjusted for Fiscal Year 2017-18 is consistent with Resolution No. 15-037 and the approved methodology. Recommended Action: It is recommended that the City Council adopt the attached Resolution confirming an adjustment to EDCO Waste and Recycling Services' rate schedule effective July 1, 2017, consistent with Resolution No. 15-037. Discussion: On August 18, 2015, the City Council held a noticed public hearing pursuant to Proposition 218 and adopted Resolution No. 15-037 (Attachment B) approving EDCO's rate schedule, and approving pass-through/inflationary adjustments to EDCO's service fees through June 30, 2020. The resolution specifies the method and formula to be used in calculating the maximum allowable rate adjustment based on the Consumer Price Index (CPI) and fluctuations in disposal tipping fees. EDCO could have requested a rate adjustment for Fiscal Year 2015-16, but did not. This is EDCO's first request for a rate adjustment since 2015. Staff reviewed EDCO's request and found the adjusted rate schedule to be consistent with the method and formula contained in Resolution 15-037. Since the City Council 1 of 21 May 16, 2017, Item # 1.16 Resolution Confirming Adjustments to EDCO Rate Schedule May 16, 2017 Page 2 previously held the public hearing and approved this rate adjustment, Staff is recommending that the City Council confirm the rate schedule to go into effect July 1, 2017, by adopting the proposed resolution. EDCO is required to notify customers of the adjusted rate schedule prior to implementation. The formula for the Solid Waste Fee adjustment is applied to three customer rate categories 1) single family residential, 2) commercial and multifamily residential, and 3) roll -off services. Collectively, the proposed EDCO rate adjustment are based on the approved methodology The following tables show the monthly rates approved in 2015 and the proposed 2017 monthly Solid Waste/Recycling Collection Service Rates for the three most common levels of service. The tables include the 10 percent franchise fee, which is applied to all rates, and the $1.20 AB 939 fee, which is collected monthly from single-family and multi- family residential customers, which EDCO passes through to the City .- Monthl Rate Current 9/1/15 Proposed 711117 d a �. Service Fee $8.26 $835 m Disposal Tip Fee $382 $400 Franchise Fee 10% $1 34 $1 37 AB 939 Fee $1.20 $1.20 Total $1462 $1492 Chan a $0 30 Imo 2 of 21 May 16, 2017, Item # 1.16 Monthly Rate Current 911115 Proposed 711117 N Service Fee $1414 $1492 m Disposal Tip Fee $382 $400 Franchise Fee 10% $2.00 $2.04 AB 939 Fee $1.20 $1.20 Total $2116 $21.59 Change 1 $0 43/mo. 2 of 21 May 16, 2017, Item # 1.16 Resolution Confirming Adjustments to EDCO Rate Schedule May 16, 2017 Page 3 Environmental Review - This action is not subject to CEQA review Fiscal Impact: This action will result in an estimated increase to the City's General Fund solid waste franchise fee revenue, fund account 100-7773, of approximately $11,000 per fiscal year Public Notification: A copy of this report has been provided to EDCO Waste and Recycling Services. Attachments - A. Proposed Resolution B Resolution No 15-037 C Letter from EDCO Reviewed/Approved By Reviewed By Wendy Kaserman Assistant City Manager Morgan Foley City Attorney App Tina M. White City Manager 3 of 21 May 16, 2017, Item # 1.16 Mont ly Rate Current 9/1/15 Proposed 7/1/17 H Service Fee $6990 $71.27 m Disposal Tip Fee $2699 $2775 Franchise Fee 10% $1077 $11 00 Total $107 66 $11002 Change $ 2.36/mo. Environmental Review - This action is not subject to CEQA review Fiscal Impact: This action will result in an estimated increase to the City's General Fund solid waste franchise fee revenue, fund account 100-7773, of approximately $11,000 per fiscal year Public Notification: A copy of this report has been provided to EDCO Waste and Recycling Services. Attachments - A. Proposed Resolution B Resolution No 15-037 C Letter from EDCO Reviewed/Approved By Reviewed By Wendy Kaserman Assistant City Manager Morgan Foley City Attorney App Tina M. White City Manager 3 of 21 May 16, 2017, Item # 1.16 RESOLUTION NO 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING AN ADJUSTMENT TO EDCO WASTE AND RECYCLING SERVICES' RATE SCHEDULE WHEREAS, the Public Resources Code Section 41901 provides local jurisdictions the authority to assess solid waste fees to meet state -mandated costs associated with the passage of AB 939; and WHEREAS, the City Council awarded the exclusive Solid Waste Franchise Agreement to Mashburn Waste and Recycling Services (Contractor) on September 21, 1994, and Mashburn became EDCO Waste and Recycling Services, Inc. in 1998, and WHEREAS, the City Council revised Article 8 of the Franchise Agreement between the City of Poway and EDCO Waste and Recycling Services by adding AB 939 fees as an additional criterion for the annual adjustment of monthly rates upward or downward; and WHEREAS, Article 8 of the Franchise Agreement requires City Council approval prior to any increase in the contractor's service rates; and WHEREAS, Article 8 of the Franchise Agreement allows the contractor to request an adjustment to monthly rates due to the contractor's increased costs resulting from changes in landfill disposal fees, and changes in the Consumer Price Index (CPI); and WHEREAS, the City Council held a public hearing on August 18, 2015, notice of which was duly provided, and which was conducted, pursuant to the provisions of Article XIII D of the California Constitution and the Proposition 218 Omnibus Implementation Act (California Government Code section 53750 et seq ), and adopted Resolution No. 15-037, approving an adjustment to EDCO Waste and Recycling Services' rate schedule and providing the formula for future increases of the Schedule of Maximum Rates to be Charged and Collected for Collection Services of Garbage or Rubbish in the City of Poway to be charged through June 30, 2020; and WHEREAS, the current rate schedule has been revised consistent with the method and formula prescribed in Resolution No. 15-037 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: Section 1. The attached "Schedule of Maximum Rates to be Charged and Collected for Collection Services of Garbage or Rubbish in the City of Poway" effective July 1, 2017, is hereby confirmed as shown in Exhibit A. 4 of 21 Attachment A May 16, 2017, Item# 1.16 Resolution No 17 - Page 2 Section 2: The fees adopted herein are for the exclusive right to collect from and charge Poway customers for solid waste, recyclables, yard waste, compostables, and other services at rates fixed by the City Council from time to time. Section 3: The attached "Schedule of Maximum Rates to be Charged and Collected for Collection Services of Garbage or Rubbish in the City of Poway" shall be implemented on July 1, 2017 to correspond with the next regular billing cycle following the effective date of the rate increase PASSED, ADOPTED, AND APPROVED by the City Council of the City of Poway, California, at a regular meeting this 16th day of May, 2017 Steve Vaus, Mayor ATTEST Nancy Neufeld, CMC, City Clerk 5 of 21 May 16, 2017, Item# 1.16 Resolution No. 17 - Page 3 STATE OF CALIFORNIA ) )SS COUNTY OF SAN DIEGO ) I, Nancy Neufeld, City Clerk of the City of Poway do hereby certify, under penalty of perjury, that the foregoing Resolution No 17- , was duly adopted by the City Council at a meeting of said City Council held on the 16th day of May, 2017, and that it was so adopted by the following vote AYES NOES - ABSENT DISQUALIFIED - Nancy Neufeld, CMC, City Clerk City of Poway ATTACHMENT EXHIBIT A - SCHEDULE OF MAXIMUM RATES TO BE CHARGED AND COLLECTED FOR COLLECTION SERVICES OF GARBAGE OR RUBBISH IN THE CITY OF POWAY 6 of 21 May 16, 2017, Item# 1.16 Resolution No 17 - Page 4 EXHIBIT A SCHEDULE OF MAXIMUM RATES TO BE CHARGED AND COLLECTED FOR COLLECTION SERVICES OF GARBAGE OR RUBBISH IN THE CITY OF POWAY EFFECTIVE July 1, 2017 through June 30, 2018 Residential Services Current Proposed EDCO Rate EDCO Rate 911115 711117 Single Family weekly 35 -gal. waste cart, includes $14.62 $14.92 recycling and yard waste (Billed to Occupant) Single Family weekly 95 -gal. waste cart, includes $21 16 $21.59 recycling and yard waste (Billed to Occupant) Single Family weekly 35 -gal. waste cart, includes $1409 $14.38 recycling and yard waste (Billed to HOA) Single Family weekly 95 -gal. waste cart, includes $20.59 $21.01 recycling and yard waste (Billed to HOA) Multi -family weekly 35 -gal. waste cart, includes $14.62 $14.92 recycling and yard waste (Billed to Occupant) Multi -family weekly 95 -gal. waste cart, includes $15.04 $15.36 recycling and yard waste (Billed to Occupant) Multi -family weekly 95 -gal. waste cart, includes $1443 $1473 recycling and yard waste (Billed to HOA) Special on-call pickup of items separate from and $15 12 $1541 dissimilar to items listed in section 5.3 of Agreement (cost per item) Surcharge of special on-call pickup of refrigerator or $30.28 $30.87 other appliance that requires special handling due to Freon or similar contaminants Roll-out "scout' service (in addition to refuse $23.24 2415 collection) Fee for additional waste cart $3.78 3.85 Fee for additional recycling cart No Charge 7 of 21 May 16, 2017, Item# 1 16 Resolution No 17 - Page 5 Multi -family Services (Excludes Yard Waste) Current EDCO Rate 9/1/15 Proposed EDCO Rate 7/1/17 1 -Cu Yd. Bin Service- 1 X Week $66.92 $68.29 1 -Cu Yd. Bin Service- 2 X Week $111 53 $113.83 1 -Cu. Yd. Bin Service- 3 X Week $15616 $15940 1 -Cu. Yd Bin Service- 4 X Week $19519 $199.26 1 -Cu. Yd. Bin Service- 5 X Week $234.23 $23913 1 -Cu. Yd. Bin Service- 6 X Week $273.28 $27900 2 -Cu. Yd. Bin Service- 1 X Week $81 11 $82.84 2 -Cu Yd. Bin Service- 2 X Week $135.26 $138.20 2 -Cu Yd Bin Service- 3 X Week $18939 $193.53 2 -Cu. Yd Bin Service- 4 X Week $237.54 $242.79 2 -Cu. Yd Bin Service- 5 X Week $285.63 $291.99 2 -Cu. Yd Bin Service- 6 X Week $33376 $341 17 3 -Cu. Yd Bin Service- 1 X Week $11679 $119.31 3 -Cu Yd. Bin Service- 2 X Week $194.98 $199.26 3 -Cu Yd. Bin Service- 3 X Week $27318 $279.22 3 -Cu Yd. Bin Service- 4 X Week $342.83 $35047 3 -Cu Yd. Bin Service- 5 X Week $412.48 $421 71 3 -Cu Yd. Bin Service- 6 X Week $482.13 $492.97 4 -Cu Yd. Bin Service- 1 X Week $122.47 $12518 4 -Cu. Yd. Bin Service- 2 X Week $20418 $20881 4 -Cu. Yd Bin Service- 3 X Week $285.87 $292.40 4 -Cu. Yd Bin Service- 4 X Week $347.57 $35563 4 -Cu. Yd. Bin Service- 5 X Week $433.20 $443.26 4 -Cu. Yd. Bin Service- 6 X Week $506.68 $51849 5 -Cu. Yd. Bin Service- 1 X Week $136.63 $13971 5 -Cu. Yd. Bin Service- 2 X Week $22618 $231 41 5 -Cu. Yd. Bin Service- 3 X Week ,$315.69 $323 12 5 -Cu Yd. Bin Service- 4 X Week $40088 $410.39 5 -Cu Yd. Bin Service- 5 X Week $486.20 $49772 5 -Cu Yd. Bin Service- 6 X Week $571 48 $585.07 6 -Cu Yd. Bin Service- 1 X Week $146.59 $149.94 6 -Cu Yd. Bin Service- 2 X Week $241 77 $24747 6 -Cu. Yd. Bin Service- 3 X Week $33700 $345.06 6 -Cu Yd. Bin Service- 4 X Week $427.88 $43819 6 -Cu Yd. Bin Service- 5 X Week $51877 $531.34 6 -Cu Yd. Bin Service- 6 X Week $60968 $624.52 8 of 21 May 16, 2017, Item# 1 16 Resolution No 17 - Page 6 Multi -family Services (Includes Yard Waste) Current EDCO Rate 9/1/15 Proposed EDCO Rate 7/1/17 1 -Cu. Yd Bin Service- 1 X Week $73.90 $7541 1 -Cu. Yd Bin Service- 2 X Week $123 19 $12572 1 -Cu Yd Bin Service- 3 X Week $172.46 $17602 1 -Cu Yd. Bin Service- 4 X Week $21552 $21999 1 -Cu Yd. Bin Service- 5 X Week $258.61 $263.99 1 -Cu Yd. Bin Service- 6 X Week $301 72 $30800 2 -Cu Yd. Bin Service- 1 X Week $8970 $91.60 2 -Cu Yd. Bin Service- 2 X Week $149.52 $152.74 2 -Cu Yd. Bin Service- 3 X Week $209.34 $213.88 2 -Cu Yd. Bin Service- 4 X Week $262.54 $268.28 2 -Cu Yd. Bin Service- 5 X Week $31574 $322.69 2 -Cu. Yd Bin Service- 6 X Week $36906 $37716 3 -Cu. Yd Bin Service- 1 X Week $12918 $131 94 3 -Cu. Yd. Bin Service- 2 X Week $215.68 $220.37 3 -Cu. Yd. Bin Service- 3 X Week $302.22 $30883 3 -Cu. Yd. Bin Service- 4 X Week $379.28 $38762 3 -Cu. Yd. Bin Service- 5 X Week $456.30 $46639 3 -Cu. Yd. Bin Service- 6 X Week $53340 $545.23 4 -Cu. Yd. Bin Service- 1 X Week $13548 $13844 4 -Cu. Yd. Bin Service- 2 X Week $225.97 $231 02 4 -Cu. Yd. Bin Service- 3 X Week $316.37 $323.50 4 -Cu Yd. Bin Service- 4 X Week $397.86 $40690 4 -Cu Yd Bin Service- 5 X Week $47946 $49042 4 -Cu Yd Bin Service- 6 X Week $56079 $573.67 5 -Cu. Yd Bin Service- 1 X Week $151.23 $15460 5 -Cu Yd. Bin Service- 2 X Week $250.39 $25609 5 -Cu Yd Bin Service- 3 X Week $34951 $35760 5 -Cu Yd Bin Service- 4 X Week $444.06 $45441 5 -Cu Yd Bin Service- 5 X Week $53832 $550.86 5 -Cu Yd Bin Service- 6 X Week $632.77 $647.56 6 -Cu Yd Bin Service- 1 X Week $162.16 $165.81 6 -Cu Yd. Bin Service- 2 X Week $26752 $27372 6 -Cu Yd. Bin Service- 3 X Week $372.86 $381 61 6 -Cu. Yd. Bin Service- 4 X Week $473.38 $484.59 6 -Cu. Yd. Bin Service- 5 X Week $57398 $58763 6 -Cu. Yd. Bin Service- 6 X Week $674.52 $69064 9 of 21 May 16, 2017, Item# 1.16 Resolution No 17 - Page 7 Commercial Services Current EDCO Rate 911/15 Proposed EDCO Rate 7/11/17 1 -Cu Yd. Bin Service- 1 X Week $63.20 $64.52 1 -Cu Yd. Bin Service- 2 X Week $113.47 $115.86 1 -Cu. Yd Bin Service- 3 X Week $166.40 $169.92 1 -Cu. Yd. Bin Service- 4 X Week $219.33 $223.97 1 -Cu. Yd. Bin Service- 5 X Week $272.28 $27803 1 -Cu. Yd. Bin Service- 6 X Week $325.20 $332.08 2 -Cu Yd. Bin Service- 1 X Week $74.37 $75.99 2 -Cu Yd. Bin Service- 2 X Week $143.27 $146.41 2 -Cu. Yd. Bin Service- 3 X Week $212.19 $216.86 2 -Cu. Yd Bin Service- 4 X Week $281 14 $287.33 2 -Cu. Yd Bin Service- 5 X Week $349.93 $357.67 2 -Cu. Yd Bin Service- 6 X Week $418.90 $42811 3 -Cu. Yd. Bin Service- 1 X Week $107.66 $11002 3 -Cu. Yd. Bin Service- 2 X Week $180.23 $184.27 3 -Cu. Yd. Bin Service- 3 X Week $252.87 $258.58 3 -Cu Yd. Bin Service- 4 X Week $31773 $324.97 3 -Cu Yd. Bin Service- 5 X Week $382.58 $391.34 3 -Cu Yd Bin Service- 6 X Week $44746 $45774 4 -Cu. Yd Bin Service- 1 X Week $11370 $116.27 4 -Cu. Yd Bin Service- 2 X Week $192.27 $19671 4 -Cu. Yd Bin Service- 3 X Week $270.83 $27714 4 -Cu. Yd Bin Service- 4 X Week $34944 $357.63 4 -Cu. Yd Bin Service- 5 X Week $428.20 $438.28 4 -Cu. Yd Bin Service- 6 X Week $50659 $518.54 5 -Cu Yd. Bin Service- 1 X Week $12698 $129.89 5 -Cu Yd. Bin Service- 2 X Week $251 16 $256.92 5 -Cu. Yd. Bin Service- 3 X Week $37474 $383.40 5 -Cu Yd. Bin Service- 4 X Week $498.37 $509.88 5 -Cu Yd. Bin Service- 5 X Week $622.09 $636.39 5 -Cu Yd. Bin Service- 6 X Week $745.72 $762.87 6 -Cu Yd. Bin Service- 1 X Week $13748 $140.68 6 -Cu Yd. Bin Service- 2 X Week $274.92 $281 31 6 -Cu Yd. Bin Service- 3 X Week $412.44 $422.04 6 -Cu Yd. Bin Service- 4 X Week $549.90 $562.70 6 -Cu Yd. Bin Service- 5 X Week $649.84 $66511 6 -Cu Yd. Bin Service- 6 X Week $815.87 $83490 10 of 21 May 16, 2017, Item# 1 16 Resolution No 17 - Page 8 Commercial Recycling Services Current EDCO Rate 9/11/15 Proposed EDCO Rate 7/1/17 Weekly 2 -Cu. Yd. Bin Service $32.37 $33.00 Weekly 3 -Cu Yd. Bin Service $4042 $41.21 Weekly 4 -Cu Yd. Bin Service $48.52 $49.47 Weekly 5 -Cu Yd. Bin Service $56.581 $57.69 Weekly 6 -Cu Yd. Bin Service $56.58_j $57.69 95 -Gallon Recycling Cart $16.541 $16.86 Industrial Debris Box Services Current EDCO Rate 9/1/15 Proposed EDCO Rate 7/1/17 Total Scheduled Debris Box Serviced Monthly $16718 $17045 Unscheduled Debris Box Pulls (40 -Cubic Yards) $18010 $183.62 3 -Cubic Yard Bin - 3 -Day Rental $59.96 $61 14 3 -Cubic Yard Bin - 1 -Month Rental (Once -a -Week Emptying [Preliminary Construction & Remote]) $23914 $24381 Additional Dump of 3 -Cubic Yard Bin $27.37 $27.90 Daily Roll -Off Rental $4.84 $4.94 Locking Lid Set Up $945 $9.64 Daily Impound Fee for Storage of Unauthorized Containers $21.39 $21.81 Service Charge to Reinstate Collection Services After Termination for Non -Payment $1376 $14.03 11 of 21 May 16, 2017, Item# 1 16 RESOLUTION NO 15-037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING AN ADJUSTMENT TO EDCO WASTE AND RECYCLING SERVICES' RATE SCHEDULE AND RESCINDING RESOLUTION NO 13-014 WHEREAS, the Public Resources Code Section 41901 provides local jurisdictions the authority to assess solid waste fees to meet state -mandated costs associated with the passage of AS 939; and WHEREAS, the City Council awarded the exclusive Solid Waste Franchise Agreement to Mashburn Waste and Recycling Services (Contractor) on September 21, 1994, and Mashburn became EDCO Waste and Recycling Services, Inc. in 1998; and WHEREAS, the City Council revised Article 8 of the Franchise Agreement between the City of Poway and EDCO Waste and Recycling Services by adding AS 939 fees as an additional criterion for the annual adjustment of monthly rates upward or downward; and WHEREAS, Article 8 of the Franchise Agreement requires City Council approval prior to any increase in the contractor's service rates; and WHEREAS, Article 8 of the Franchise Agreement allows the contractor to request an adjustment to monthly rates due to the contractor's increased costs resulting from changes in landfill disposal fees, and changes in the Consumer Price Index (CPI); and WHEREAS, the current rate schedule has been revised to reflect the effects of a 1 08 percent landfill disposal fee increase, and a 1.284 percent change in the Consumer Price Index (CPI) on the monthly rate per class of service provided in the City of Poway, effective September 1, 2015, and WHEREAS, the City Council of the City of Poway held a public hearing on August 18, 2015, notice of which was duly provided, and which was conducted, pursuant to the provisions of Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act (California Government Code section 57350 et seq.); and WHEREAS, the City Council received a final tabulation of all written protests received by the City Clerk at the August 18, 2015 City Council Meeting; and WHEREAS, the City Council heard and considered all written and oral protests to the proposed changes to the rates at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows. Section 1. Resolution No 13-014 is hereby rescinded. 12 of 21 ATTACHMENT B May 16, 2017, Item # 1 16 Resolution No. 15 -037 Page 2 Section 2: The City Council finds that a total of 3 protests to the proposed increase in rates were received at the time of the conclusion of the public hearing; such protests fail to result in an amount necessary to achieve a majority protest. Section 3: The attached "Schedule of Maximum Rates to be Charged and Collected for Collection Services of Garbage or Rubbish in the City of Poway" effective September 1, 2015, is hereby adopted as shown in Exhibit A. Section 4. The fees adopted herein are for the exclusive right to collect from and charge Poway customers for solid waste, recyclables, yard waste, compostables, and other services at rates fixed by the City Council from time to time. Section 5. The attached "Schedule of Maximum Rates to be Charged and Collected for Collection Services of Garbage or Rubbish in the City of Poway" shall be implemented on September 1, 2015 to correspond with the next regular billing cycle following the effective date of the rate increase. Section 6. The following tables provide the formula for future increases of the "Schedule of Maximum Rates to be Charged and Collected for Collection Services of Garbage or Rubbish in the City of Poway" to be charged through June 30, 2020. Service Fee The Franchise Agreement with EDCO allows for an annual increase of the service fee, effective July 1 of each year The following table uses a formula and the San Diego, CA area Consumer Price Index (CPI) for All Urban Consumers (all items), base period of 1982-84=100, published by the United States Department of Labor, Bureau of Labor Statistics for the latest 12 -month period for which the statistics are available. The adjustment is calculated by comparing the San Diego CPI for the second half of year one (X) with the second half of year two (l) which produces an index change. This number is divided by the previous period (X) and multiplied by 100 which is the value used as the multiplier for the service component of the base rate. , Rate Increase Previous CPI Second Hag( SD 2014 SERVICE FEE PORTION • for Service Fee Portion FY 2016-17 X Previous CPI Second Half SD 2015 Y Index Chane Subtract X from Y= Index Change Percent a Chan a Rate Increase Previous CPI Second Hal( SD 2015 Divide the Index ChangLLy X and multi I Ly M: Percents a Chan e for Service Fee Portion FY 2017-18 X Previous CPI Second Half SD 2016 Y Index ClhaD2e Subtract X from Y= Index Change Percents a Chan a Rate Increase Previous CPI Second Half SD 2016 Divide the Index Chan e bv X and multi I b 100 = Percenta a Chan e for Service Fee Portion FY 2018-19 X Previous CPI Second Half SD 2017 Y Index Chane Subtract X from Y= Index Change Percentage Chane Divide the Index Change by X and multiply by 100 = Percentage Change 13 of 21 ATTACHMENT B May 16, 2017, Item # 1 16 Resolution No. 15 -037 Page 3 Disposal Tip Fee The Franchise Agreement with EDCO and the Regional Solid Waste Association allows for an annual increase of the disposal tip fee, effective July 1 of each year The following table uses a formula and the Los Angeles -Anaheim -Riverside, CA area Consumer Price Index (CPI) for All Urban Consumers (all items), base period of 1982-84=100, published by the United States Department of Labor, Bureau of Labor Statistics for the latest 12 - month period for which statistics are available. The adjustment is calculated by comparing the Los Angeles -Anaheim -Riverside CPI for the latest 12 -month period for which statistics are available. The adjustment is calculated by subtracting the previous CPI for December or year one (X) and the last CPI for December or year two (Y) which produces an index change. This number is divided by the previous period (X) and multiplied by 100 which is the value used as the multiplier for the disposal tip fee component of the base rate. This percent change may be adjusted by applying a calculation that includes, in part, a modifier of the percent increase of the previous year's increase in waste tonnage. Any adjustment to the base multiplier will modify the disposal tip fee component of the formula. This cannot be determined in advance. Section 7. This Resolution shall take effect immediately provided, however, that the rescission of Resolution No. 13-014 and the changes in the fees shall take effect on September 1, 2015. 14 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 FORMULADISPOSAL TIP FEE PORTION Rate Increase for Disposal Tip Fee Portion FY 2016-17 Previous CPI December LA 2014 X Previous CPI December LA 2015 Y Index Chane Subtract X from Y= Index Change Percentaqe Chane Divide the Index Change b X and multi I b 00=PercentaqLChanqe Increase for r DisposalRate Previous CPI December LA 2015 7- -Previous CPI December LA 2016 Y Index Chane Subtract X from Y= Index Change Percentage Chane Divide the Index Change by X and mulfiglX bX 100 = Percentage Change Rate Increase for Disposal Tip Fee P—o�i�on FY 2018-19 Previous CPI December LA 2016 X Previous CPI December LA 2017 Y Index Chane Subtract X from Y= Index Change Percents a Cha a Divide the Index Chan e by X and multiplXkX 100 = Percentage Chan— No r2018-19 This percent change may be adjusted by applying a calculation that includes, in part, a modifier of the percent increase of the previous year's increase in waste tonnage. Any adjustment to the base multiplier will modify the disposal tip fee component of the formula. This cannot be determined in advance. Section 7. This Resolution shall take effect immediately provided, however, that the rescission of Resolution No. 13-014 and the changes in the fees shall take effect on September 1, 2015. 14 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 Resolution No 15 -037 Page 4 PASSED, ADOPTED, AND APPROVED by the City Council of the City of Poway, California, at a regular meeting this 181^ day of August 2015 Steve Vaus, Mayor ATTEST ,&A 2:o a�' ffRJ Sheila'R. Cobian, CMC, City Clerk STATE OF CALIFORNIA ) )SS COUNTY OF SAN DIEGO ) I, Sheila R. Cobian, CMC, City Clerk of the City of Poway do hereby certify, under penalty of perjury, that the foregoing Resolution No 15-037, was duly adopted by the City Council at a meeting of said City Council held on the 181h day of August 2015, and that it was so adopted by the following vote: AYES. LEONARD, CUNNINGHAM, MULLIN, GROSCH, VAUS NOES NONE ABSENT NONE DISQUALIFIED' NONE; o SheiO-R, Cobian, CMC, City Clerk City of Poway ATTACHMENT EXHIBIT A -SCHEDULE OF MAXIMUM RATES TO BE CHARGED AND COLLECTED FOR COLLECTION SERVICES OF GARBAGE OR RUBBISH IN THE CITY OF POWAY 15 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 Resolution No 15 -037 Page 5 EXHIBIT A SCHEDULE OF MAXIMUM RATES TO BE CHARGED AND COLLECTED FOR COLLECTION SERVICES OF GARBAGE OR RUBBISH IN THE CITY OF POWAY EFFECTIVE September 1. 2015 through June 30, 2016 Residential Services Current Proposed EDCO Trash EDCO Trash Rate 7/1/13 Rate 9/1/15 Single Family weekly 35 -gal. waste cart, includes $1447 $1462 recycling and yard waste (Billed to Occupant) Single Family weekly 95 -gal. waste cart, includes $20.91 $21 16 recycling and yard waste (Billed to Occupant) Single Family weekly 35 -gal. waste cart, includes $13.93 $14.09 recycling and yard waste (Billed to HOA) Single Family weekly 95 -gal. waste cart, includes $20.36 $20.59 recycling and yard waste (Billed to HOA) Multi -family weekly 35 -gal. waste cart, includes $1447 $14.62 recycling and yard waste (Billed to Occupant) Multi -family weekly 95 -gal. waste cart, includes $1488 $1504 recycling and yard waste (Billed to Occupant) Multi -family weekly 95 -gal. waste cart, includes $14.28 $1443 recycling and yard waste (Billed to HOA) Special on-call pickup of items separate from and $1493 $1512 dissimilar to items listed in section 5.3 of Agreement (cost per item) Surcharge of special on-call pickup of refrigerator or $2990 $30.28 other appliance that requires special handling due to Freon or similar contaminants Roll-out "scout' service (in addition to refuse $22.95 $23.24 collection) Fee for additional waste cart $373 $3.78 Fee for additional recycling cart No charge No Charge 16 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 Resolution No. 15 -037 Page 6 Multi -family Services (Excludes Yard Waste) Current EDCO Trash Rate 711/13 Proposed EDCO Trash Rate 9/1/15 1 -Cu. Yd. Bin Service- 1 X Week $6610 $6692 1 -Cu. Yd. Bin Service- 2 X Week $11019 $111 53 1 -Cu. Yd. Bin Service- 3 X Week $154.28 $15616 1 -Cu. Yd. Bin Service- 4 X Week $192.86 $19519 1 -Cu. Yd. Bin Service- 5 X Week $23145 $234.23 1 -Cu. Yd. Bin Service- 6 X Week $27002 $273.28 2 -Cu. Yd. Bin Service- 1 X Week $80.15 $81 11 2 -Cu. Yd. Bin Service- 2 X Week $133.66 $135.26 2 -Cu. Yd. Bin Service- 3 X Week $18714 $189.39 2 -Cu. Yd. Bin Service- 4 X Week $23476 $237.54 2 -Cu. Yd Bin Service- 5 X Week $282.29 $285.63 2 -Cu. Yd. Bin Service- 6 X Week $32986 $333.76 3 -Cu. Yd. Bin Service- 1 X Week $115.38 $11679 3 -Cu. Yd. Bin Service- 2 X Week $192.66 $19498 3 -Cu. Yd. Bin Service- 3 X Week $26995 $27318 3 -Cu. Yd. Bin Service- 4 X Week $338.79 $342.83 3 -Cu. Yd Bin Service- 5 X Week $407.62 $412.48 3 -Cu. Yd Bin Service- 6 X Week $47647 $482.13 4 -Cu. Yd. Bin Service- 1 X Week $121 01 $122.47 4 -Cu. Yd. Bin Service- 2 X Week $201 78 $204 18 4 -Cu. Yd. Bin Service- 3 X Week $282.53 $28587 4 -Cu. Yd. Bin Service- 4 X Week $343.53 $34757 4 -Cu. Yd. Bin Service- 5 X Week $428.19 $433.20 4 -Cu. Yd. Bin Service- 6 X Week $50082 $50668 5 -Cu. Yd Bin Service- 1 X Week $13501 $13663 5 -Cu. Yd. Bin Service- 2 X Week $223.54 $226 18 5 -Cu. Yd. Bin Service- 3 X Week $312.04 $315.69 5 -Cu. Yd. Bin Service- 4 X Week $396.27 $400.88 5 -Cu. Yd. Bin Service- 5 X Week $48061 $486.20 5 -Cu. Yd. Bin Service- 6 X Week $56492 $571 48 6 -Cu. Yd Bin Service- 1 X Week $14486 $146.59 6 -Cu. Yd. Bin Service- 2 X Week $23898 $241 77 6 -Cu. Yd. Bin Service- 3 X Week $333.13 $33700 6 -Cu. Yd. Bin Service- 4 X Week $422.99 $427.88 6 -Cu. Yd. Bin Service- 5 X Week $512.87 $518.77 6 -Cu. Yd. Bin Service- 6 X Week $602.76 $609.68 17 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 Resolution No 15 -037 Page 7 Multi -family Services (Includes Yard Waste) Current EDCO Trash Rate 7/1/13 Proposed EDCO Trash Rate 911115 1 -Cu. Yd. Bin Service- 1 X Week $72.99 $73.90 1 -Cu. Yd Bin Service- 2 X Week $121 70 $123.19 1 -Cu. Yd. Bin Service- 3 X Week $17038 $172.46 1 -Cu. Yd. Bin Service- 4 X Week $212.93 $215.52 1 -Cu. Yd. Bin Service- 5 X Week $25551 $258.61 1 -Cu. Yd. Bin Service- 6 X Week $29810 $301 72 2 -Cu. Yd. Bin Service- 1 X Week $8862 $8970 2 -Cu. Yd. Bin Service- 2 X Week $14775 $14952 2 -Cu. Yd. Bin Service- 3 X Week $20686 $209.34 2 -Cu. Yd. Bin Service- 4 X Week $25943 $262.54 2 -Cu. Yd. Bin Service- 5 X Week $312.02 $31574 2 -Cu. Yd. Bin Service- 6 X Week $364.71 $36906 3 -Cu. Yd. Bin Service- 1 X Week $127.61 $12918 3 -Cu. Yd. Bin Service- 2 X Week $213.09 $21568 3 -Cu. Yd Bin Service- 3 X Week $298.62 $302.22 3 -Cu. Yd Bin Service- 4 X Week $37478 $379.28 3 -Cu. Yd Bin Service- 5 X Week $45089 $456.30 3 -Cu. Yd Bin Service- 6 X Week $52709 $53340 4 -Cu. Yd Bin Service- 1 X Week $133.86 $13548 4 -Cu. Yd. Bin Service- 2 X Week $223.29 $22597 4 -Cu. Yd. Bin Service- 3 X Week $312.65 $316.37 4 -Cu. Yd. Bin Service- 4 X Week $393.19 $397.86 4 -Cu. Yd. Bin Service- 5 X Week $473.86 $47946 4 -Cu. Yd. Bin Service- 6 X Week $554.25 $56079 5 -Cu. Yd Bin Service- 1 X Week $14943 $151.23 5 -Cu. Yd Bin Service- 2 X Week $24744 $250.39 5 -Cu. Yd Bin Service- 3 X Week $34543 $34951 5 -Cu Yd. Bin Service- 4 X Week $438.90 $44406 5 -Cu Yd. Bin Service- 5 X Week $532.08 $538.32 5 -Cu Yd. Bin Service- 6 X Week $62543 $632.77 6 -Cu Yd. Bin Service- 1 X Week $16037 $162.16 6 -Cu. Yd. Bin Service- 2 X Week $264.67 $26752 6 -Cu. Yd. Bin Service- 3 X Week $368.93 $372.86 6 -Cu. Yd. Bin Service- 4 X Week $468.45 $473.38 6 -Cu. Yd. Bin Service- 5 X Week $568.051 $573.98 6 -Cu. Yd. Bin Service- 6 X Week $667.581 $674.52 18 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 Resolution No 15 -037 Page 8 Commercial Services Current EDCO Trash Rate 7/1/13 Proposed EDCO Trash Rate 911/15 1 -Cu. Yd. Bin Service- 1 X Week $62.41 $63.20 1 -Cu. Yd. Bin Service- 2 X Week $112.07 $113.47 1 -Cu. Yd. Bin Service- 3 X Week $164.35 $166.40 1 -Cu. Yd Bin Service- 4 X Week $216.63 $219.33 1 -Cu. Yd Bin Service- 5 X Week $268.92 $272.28 1 -Cu. Yd Bin Service- 6 X Week $321 19 $325.20 2 -Cu. Yd. Bin Service- 1 X Week $73.47 $74.37 2 -Cu. Yd. Bin Service- 2 X Week $141.53 $143.27 2 -Cu. Yd. Bin Service- 3 X Week $209.61 $212.19 2 -Cu. Yd. Bin Service- 4 X Week $27773 $281 14 2 -Cu. Yd. Bin Service- 5 X Week $34570 $349.93 2 -Cu. Yd. Bin Service- 6 X Week $413.83 $418.90 3 -Cu. Yd Bin Service- 1 X Week $106.34 $107.66 3 -Cu. Yd. Bin Service- 2 X Week $178.07 $180.23 3 -Cu. Yd. Bin Service- 3 X Week $249.85 $252.87 3 -Cu. Yd. Bin Service- 4 X Week $31394 $31773 3 -Cu. Yd. Bin Service- 5 X Week $378.02 $382.58 3 -Cu. Yd. Bin Service- 6 X Week $442.14 $44746 4 -Cu. Yd. Bin Service- 1 X Week $112.34 $113.70 4 -Cu. Yd. Bin Service- 2 X Week $189.99 $192.27 4 -Cu. Yd. Bin Service- 3 X Week $267.65 $270.83 4 -Cu. Yd. Bin Service- 4 X Week $345.33 $34944 4 -Cu. -:i -Cu. Yd. Bin Service- 5 X Week $423.17 $428.26- Yd. Bin Service- 6 X Week $50065 $506.59 5 -Cu. Yd. Bin Service- 1 X Week $125.991 $126.98 5 -Cu Yd. Bin Service- 2 X Week $24817 $251 16 5 -Cu. Yd. Bin Service- 3 X Week $370.31 $37474 5 -Cu. Yd Bin Service- 4 X Week $492.47 $498 37 5 -Cu. Yd. Bin Service- 5 X Week $61470 $622.09 5 -Cu. Yd. Bin Service- 6 X Week $736.87 $74572 6 -Cu. Yd. Bin Service- 1 X Week $135.86 $13748 6 -Cu. Yd. Bin Service- 2 X Week $271.68 $27492 6 -Cu. Yd. Bin Service- 3 X Week $407.58 $412.44 6 -Cu. Yd. Bin Service- 4 X Week $54340 $549.90 6 -Cu. Yd. Bin Service- 5 X Week $642.21 $649.84 6 -Cu. Yd. Bin Service- 6 X Week $806.23 $81587 19 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 Resolution No. 15 -037 Page 9 Commercial Recycling Services Current EDCO Trash Rate 7/1/13 Proposed EDCO Trash Rate 9/1/15 Weekly 2 -Cu. Yd. Bin Service $31.96 $32.37 Weekly 3 -Cu. Yd. Bin Service $39.91 $4042 Weekly 4 -Cu. Yd. Bin Service $47.90 $48.52 Weekly 5 -Cu. Yd. Bin Service $55.861 $56.58 Weekly 6 -Cu. Yd. Bin Service $55.861 $56.58 95 -Gallon Recycling Cart $16.33 $1654 Industrial Debris Box Services Current EDCO Trash Rate 7/1/13 Proposed EDCO Trash Rate 911/15 Total Scheduled Debris Box Serviced Monthly $165.06 $16718 Unscheduled Debris Box Pulls (40 -Cubic Yards) $177.81 $18010 3 -Cubic Yard Bin - 3 -Day Rental $59.20 $59.96 3 -Cubic Yard Bin - 1 -Month Rental (Once -a -Week Emptying [Preliminary Construction & Remote]) $236.10 $23914 Additional Dump of 3 -Cubic Yard Bin $27.02 $27.37 Daily Roll -Off Rental $478 $4,84 Locking Lid Set Up $9.33 $945 Daily Impound Fee for Storage of Unauthorized Containers $21 12 $21 39 Service Charge to Reinstate Collection Services After Termination for Non -Payment $13.59 $13.76 20 of 21 ATTACHMENT B May 16, 2017, Item # 1.16 r1r!r WASTE & RECYCLING SERVICES February 10, 2017 Ms. Pam Gravel Senior Management Analyst City of Poway Department of Public Works 13325 Civic Center Drive Poway, CA 92064 RE. Waste Collection Service Fee Adjustments Dear Pain: Article 8 of the Poway Solid Waste Franchise Agreement allows annual rate adjustments based on increases in the San Diego area Consumer Price Index (CPI) and increases in solid waste tip fees under the Regional Solid Waste Association agreement, to which Poway is a party Under provisions of the franchise, EDCO Waste & Recycling Services is requesting a rate adjustment effective July 1, 2017 The last rate adjustment occurred on September 1, 2015 To calculate the CPI portion of the adjustment, the second half of the 2015 index (271.526) was compared to the second half of 2016 (276.837) which produced a 5.311 point change or 1.96% increase. The CPI indexes are attached for your reference. The 1 96% increase is applied to current rates after franchise fees, AB939 fees and disposal fees are deducted from the current gross rate. The new tip fee portion of the rate adjustment is calculated by comparing the tip fee used in the calculation of the 2015 rate change ($4173 per ton) and the tip fee effective on 7/1/2017 ($42.90 per ton) which produces a 2.804% increase applied to the tip fee component of the current rates. The new rates are attached for your review Please contact either Jeff Ritchie or me with any questions. Sincere) Eke r I -leap Division Manager "We'll Take Care of It" 224 S. Las Poses Road • San Marcos, California 92078 (760) 744-2700 • Fax: (760) 752-8339 • www.edcodisposal.com • Printed on Recycled Paper 21 of 21 ATTACHMENT C May 16, 2017, Item # 1.16