Item 17 - Resolution Approving an Adjustment to Mashburn Waste & Recycling Svs Rate Schedule
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. - AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY: John D. Fitch. Assistant City Managerv-\\~
James R. Williams, Director of Public Services J
Annette R. Gonzalez, Sr. Management Analyst
DATE: June 27, 1995
SUBJECT: Resolution Approving an Adjustment to Mashburn Waste and
Recycling Services' Rate Schedule Pursuant to the Provisions of the Solid
Waste Franchise Agreement
ABSTRACT In accordance with Article 8 of the solid waste franchise agreement, Mashburn Waste and
Recycling Services has submitted a revised rate schedule which corresponds with the decrease in the San
Diego County tip fee which will go into effect July 1 1995. Solid waste rates in the City of Poway will
be reduced by approximately 4.39% for single-family residential customers and by approximately 6.96%
for multi-family and commercial customers effective July I, 1995.
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It is recommended that the City Council approve the attached resolution approving an adjustment to
Mashburn Waste and Recycling Services' rate schedule.
ENVIRONMENTAL REVIEW This action is not subject to CEQA review.
FISCAL IMPACT Solid waste rates associated with the tipping fee will be reduced by approximately
4.39 % for single family residential customers. and by approximately 6.96% for multifamily and
commercial customers. This action will have no significant fiscal impact on the City.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Mr. Jeff Ritchie, President, Mashburn Waste and Recycling Services
RECOMMENDATION It is recommended that the City Council adopt the proposed resolution,
Attachment 1, approving an adjustment to Mashburn Waste and Recycling Services' rate schedule
pursuant to the provisions of the Solid Waste Franchise Agreement.
ACTION
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JUN 2 7 1995 ITEM 17
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~AGENDA REPOR..
CITY OF POW A Y
TO: Honorable Mayor and Members of the City Council
FROM: James 1. Bowersox, City ~
'~I
INITIATED BY: John D. Fitch, Assistant City Manage~; ~
James R. Williams, Director of Public Services
Annette R. Gonzalez, SL Management Analyst
DATE: June 27, 1995
SUBJECT: Resolution Approving an Adjustment to Mashburn
Waste and Recycling Services' Rate Schedule Pursuant to the
Provisions of the Solid Waste Franchise Agreement
BACKGROUND
According to the provisions of the Franchise Agreement between the City of Po way and
Mashburn Waste and Recyling Services, changes to the tipping fee are considered to be "pass
through" expenses; therefore, the Contractor's monthly rates may be adjusted upward or
downward due to the Contractor's increased or decreased costs resulting from changes in the
tipping fees and any duly authorized fees, assessments or taxes to be collected along with tipping
fees. Tipping fees are fixed charges determined at each landfill by weighing the amount of
refuse delivered to the site for disposal. Tipping fees are collected to pay for the expense of
operating the landfill system.
Section 83 ofthe Franchise Agreement provides the formula for calculating rate adjustments
necessitated by changes in the tipping fee or an increase in the Consumer Price Index (CPI). The
Contractor is allowed to submit a rate adjustment request for cpr increases once a year
commencing in May, 1996 for the period starting July 1, 1996.
At the June 13, 1995 City Council meeting Staff provided an update on the status of solid waste
collection rates in the City of Po way. This update informed the City Council that the San Diego
County Board of Supervisors and the Solid Waste Authority approved a reduction in the tipping
fee at local landfills from $55 to $47.50 effective July 1, 1995. Accordingly, Mashburn Waste
and Recycling Services has submitted to the Director of Public Services a revised schedule of
rates showing the effect of the decrease in the tipping fee on the monthly rate per class of service.
ACTION:
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Resolution Approvin~ Adiustment to Solid Waste
Franchise Rates
June 27,1995
Page 2
Mashburn Waste and Recycling Services provided written notice in the June billing statement to
customers informing them of the anticipated rate change to go into effect July 1,1995.
Rate adjustments are subject to the approval of the Poway City Council by resolution.
FINDINGS
The revised schedule of rates was calculated according to the prescribed formula using actual
(January-April, 1995) and projected waste tonnage data, and using current customer numbers.
The reduction of the tipping fee was factored in and resulted in a reduction of approximately
4.39% to single family residential rates, and a reduction of approximately 6.96% to multi-family
and commercial rates. The complete rate schedule listing and comparing the current (old) rates
and the new rates which will go into effect July I, 1995 is attached to the proposed Resolution as
Exhibit A.
When rates are calculated for each class of service a portion is attributed to the operating
expenses associated with the collection operation and a portion is attributed to the cost of
depositing the waste at the landfill. There is more operating expense associated with single
family residential curbside operations than tipping fee expense. Conversely, there is less
operating expense and more tipping fee expense associated with multi-family and commercial
operations, i.e., there are fewer pick-ups but larger amounts of waste collected under multi-
family and commercial operations. Therefore, the reduction in the tipping fee results in a greater
reduction in rates for multi-family and commercial customers.
Since the tipping fee portion of the disposal rates is tied in with the amount of waste generated
per each class of service, the single can rates are going down slightly less than the unlimited can
rates because single can customers generate less waste.
There are rates listed in the revised rate schedule (Exhibit A) which remain unchanged because
they are generally for services that are not directly associated with the tipping fee.
ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL IMP ACT
This action will have no significant fiscal impact.
JUN 2 7 1995 nl:;M 17 i
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Resolution Approvin~ Adjustment to Solid Waste
Franchise Rates
June 27, 1995
Page 3
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Mr. Jeff Ritchie, President, Mashburn Waste and Recycling Services
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution, Attachment 1, approving
an adjustment to Mashburn Waste and Recycling Services' rate schedule pursuant to the
provisions of the Solid Waste Franchise Agreement.
Attachments (1): Attachment A--Proposed Resolution
JUN 2 7 1995 ITEM 17
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RESOLUTION NO. 95-
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POW A Y, CALIFORNIA
APPROVING AN ADJUSTMENT TO MASHBURN WASTE AND RECYCLING
SERVICES' RATE SCHEDULE PURSUANT TO THE PROVISIONS OF
THE SOLID WASTE FRANCHISE AGREEMENT
WHEREAS, the City Council awarded the exclusive Solid Waste Franchise Agreement
to Mashburn Waste and Recycling Services on September 20, 1994, in the aggregate and
extended unit price amount of $3,758,936.68; and
WHEREAS, the City Council adopted Resolution No. 94-125 on November 29, 1995,
approving Mashburn Waste and Recycling Services' unit price rate schedule as they had bid them
on September 1,1994, and as set forth in the Solid Waste Franchise Agreement; and
WHEREAS, the City Council adopted Resolution No. 95-002 on January 10, 1995,
approving Mashburn Waste and Recycling Services' rate schedule for multi-family dwelling
units; and
WHEREAS, ARTICLE 8 of the Franchise Agreement allows the contractor to adjust
monthly rates upward or downward due to the contractor's increased or decreased costs resulting
- from changes in the tipping fees and any duly authorized fees, assessments or taxes to be
collected along with tipping fees; and
WHEREAS, the San Diego County Board of Supervisors and Solid Waste Authority
voted on May 18, 1995 to reduce the tipping fee from $55 to $47.50 per ton, effective July I,
1995; and
WHEREAS, Mashburn Waste and Recycling Services has provided a revised schedule
of rates showing the effect of such increase on the monthly rate per class of service provided in
the City of Poway; and
WHEREAS, ARTICLE 8 of the Franchise Agreement requires the contractor's rates be
established by City Council resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
as follows:
Section I. The attached "Schedule of Maximum Rates to be Charged and Collected for
Collection Services of Garbage or Rubbish in the City of Poway, July I, 1995" provided by
Mashburn Waste and Recycling Services is hereby adopted as shown in Exhibit A.
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Resolution No. 95-
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, and other compostable services at
rates fixed by the City Council from time to time.
Section 3. The attached Schedule of Maximwn Rates to be Charged and Collected for
Collection Services of Garbage or Rubbish in the City of Po way shall take effect on July I, 1995.
PASSED, ADOPTED, and APPROVED by the City Council of the City of Poway,
California, at a regular meeting this 27th day of June, 1995.
Don Higginson, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
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EXHIBIT A TO RESOLUTION NO. 95-
SCHEDULE OF MAXIMUM RATES TO BE CHARGED AND
COLLECTED FOR COLLECTION SERVICES OF GARBAGE
OR RUBBISH IN THE CITY OF POW A Y
RESIDENTIAL SERVICES Old New
Monthly Monthly %
Rate Rate Chan~e
Sinf;l'le Family Residential and Multi-Family
Complexes where the Occupant is Individually
Billed
Weekly curbside collection of residential
single family One Can (rubbish), recyclables
and yard waste $ 9.35 $ 8.94 -4.39
Weekly curbside collection of residential
single family Unlimited Cans (rubbish),
recyclables and yard waste $15.30 $14.63 -4.38
- Weekly curbside collection of residential
multi-family One Can (rubbish) per unit,
recyclabIes and yard waste--billed to
occupant $ 9.35 $ 8.94 -4.39
Weekly curbside collection of residential
multi-family Unlimited Cans (rubbish) per
unit, recyclables and yard waste--billed
to occupant $10.35 $ 9.89 -4.44
Special on-call pickup of items separate
from and dissimilar to those items listed
in Section 5.3 of Agreement (one item
pickup) $10.00 $10.00 0
Surcharge for special on-calI pickup of
refrigerator or other appliance that requires
special handling due to freon or similar
contaminants $20.00 $20.00 0
Roll-out "Scout" service to place containers
at curb for collection $18.80 $18.80 0
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Exhibit A to Resolution No. 95-
Page 2
Old New
Monthly Monthly %
Rate Rate Chanl1e
Multi-Family Residential
Weekly curbside collection of residential
multi-family Unlimited Cans (rubbish)
per unit, recyclables and yard waste--
billed to homeowners association $10.15 $9.44 -6.70
Weekly pick-up of rubbish from bins placed at central location on premises, recyclables and
yard waste--billed to complex owner/manager or association
I cu. yd. 2 cu. yd. 3 cu. yd. 4 cu. yd. 5 cu. yd. 6 cu. yd.
No. of Monthly Monthly Monthly Monthly Monthly Monthly %
Weekly Rate Rate Rate Rate Rate Rate Change
Pick-ups Old/New Old/New Old/New Old/New Old/New Old/New
I $57.73/ $71.07/ $ I 03.90/ $108.41/ $122.21/ $130.74/ -6.96
$53.71 $66.12 $96.67 $100.86 $113.70 $121.64
2 $94.42/ $116.23/ $169.92/ $177.30/ $199.87/ $213.81/ -6.96
$87.85 $108.14 $158.09 $164.96 $185.96 $198.92
3 $128.10/ $157.69/ $230.54/ $240.55/ $271.17/ $290.08/ -6.96
$119.18 $146.71 $214.49 $223.80 $252.29 $269.88
4 $161.72/ $199.07/ $291.04/ $303.68/ $342.33/ $366.21/ -6.96
$150.46 $185.21 $270.78 $282.54 $318.50 $340.71
5 $195.33/ $240.45/ $351.54/ $366.81/ $413.49/ $442.34/ -6.90
$181. 73 $223.71 $327.07 $341.27 $384.70 $411.54
6 $229.05/ $281. 96/ $412.22/ $430.12/ $484.86/ $518.69/ -6.96
$213.10 $262.33 $383.52 $400.18 $451.10 $482.58
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- Exhibit A to Resolution No. 95-
Page 3
Weekly pick-up of rubbish from bins placed at central location on premises, including
recyclables--billed to complex owner/manager or association--excludes yard waste
I cu. yd. 2 cu. yd. 3 cu. yd. 4 cu. yd. 5 cu. yd. 6 cu. yd.
No. of Monthly Monthly Monthly Monthly Monthly Monthly %
Weekly Rate Rate Rate Rate Rate Rate Change
Pick-ups OldINew OldINew OldINew OldINew OldINew OldINew
I $52.20/ $64.26/ $93.95/ $98.03/ $110.51/ $118.22/ -6.96
$48.57 $59.79 $87.41 $91.21 $102.82 $109.99
2 $85.38/ $105.10/ $153.65/ $160.32/ $180.73/ $193.33/ -6.96
$79.44 $97.78 $142.95 $149.16 $168.15 $179.87
3 $115.83/ $142.59/ $208.46/ $217.51/ $245.20/ $262.30/ -6.96
$107.77 $132.66 $193.95 $202.37 $228.13 $244.04
4 $146.23/ $180.Q1/ $263.17/ $274.60/ $309.54/ $331.14/ -6.96
$136.05 $167.48 $244.85 $255.48 $287.99 $308.09
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5 $176.63/ $217.43/ $317.87/ $331.68/ $373.89/ $399.98/ -6.96
$164.33 $202.29 $295.74 $308.59 $347.86 $372.13
6 $207.12/ $254.95/ $372.74/ $388.93/ $438.43/ $469.01/ -6.96
$192.70 $237.20 $346.79 $361.85 $407.91 $436.36
Old New
Monthly Monthly %
Rate Rate Chan~e
Multi-Familv Residential
Additional unscheduled pick-ups as
may be arranged by complex manager
(consolidated billing) $16.39 $16.39 0
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Exhibit A to Resolution No. 95-
Page 4
COMMERCIAL SERVICES
1 cu. yd. 2 cu. yd. 3 cu. yd. 4 cu. yd. 5 cu. yd. 6 cu. yd.
No. of Monthly Monthly Monthly Monthly Monthly Monthly %
Weekly Rate Rate Rate Rate Rate Rate Change
Pick-ups 01d/New Old/New Old/New Old/New Old/New Old/New
I $48.621 $59.851 $87.501 $91.301 $102.921 $110.101 -6.96
$45.24 $55.68 $81.41 $84.94 $95.75 $102.43
2 $89.021 $113.151 $143.101 $152.101 $197.641 $224.791 -6.96
$82.82 $105.27 $133.14 $141.51 $183.88 $209.14
3 $129.421 $170.151 $194.151 $210.051 $292.341 $333.081 -6.96
$120.41 $158.30 $180.63 $195.43 $271.99 $309.89
4 $169.821 $224.131 $245.101 $272.101 $387.051 $441.371 -6.96
$158.00 5208.53 $228.04 $253.16 $360.10 $410.64
5 $210.221 $278.111 $296.051 $332.351 $481. 77/ $502.301 -6.96
$195.58 $258.75 $275.44 $309.21 $448.23 $467.33
6 $250.621 $332.091 $347.151 $391.751 $576.471 $657.931 -6.96
$233.17 5308.97 $322.98 $364.48 $536.34 $612.13
Old New
Monthly Monthly %
Rate Rate Chanlle
Weekly collection recyclin~
bin service
1 cu. yd. $15.00 $15.00 0
2 cu. yd. $20.00 $20.00 0
3 cu. yd. $25.00 $25.00 0
4 cu. yd. $30.00 $30.00 0
5 cu. yd. $35.00 $35.00 0
6 cu. yd. $35.00 $35.00 0
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-' Exhibit A to Resolution No. 95-
Page 5
Old New
Monthly Monthly %
Rate Rate Chani1e
INDUSTRIAL DEBRIS BOX SERVICE
Total scheduled debris box serviced
monthly $ 95.00 $ 95.00 0
Unscheduled debris box pulls (40 cu. yds.) $103.00 $103.00 0
ADDITIONAL SERVICES (Available to
All Customers)
3 cu. yd. bin! 3 day rental $ 37.08 $ 37.08 0
3 cu. yd. bin! I monthly rental $ 37.08 $ 37.08 0
- Additional dump of 3 cu. yd. bin $ 16.93 $ 16.93
0
Roll- off containers/ 5 day rental $
Each additional roll-off rental/ day $ 3.00 $ 3.00 0
Additional maintenance/dump of rail-off
over and above contract $105.00 $105.00 0
Locking lid set-up $ 5.85 $ 5.85 0
Service Charge to reinstate collection
services after termination for non-payment $ 8.50 $ 8.50 0
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