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Item 17 - Resolution Approving an Adjustment to Mashburn Waste & Recycling Svs Rate Schedule - . - 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. - 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 - 1 of 11 JUN 2 7 1995 ITEM 17 -------...-- ~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: 2 of 11 UN 2 7 1995 ITEM 17 - - 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 3 of 11 ".-- ------...--.-------. 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 4 of 11 - RESOLUTION NO. 95- .._. 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. JUN 27 1995 HEM 17 5 of 11 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 JUN 2 7 1995 ITEM 17 6 of 11 - - 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 JUN 27 1995 ITEM 17 7 of 11 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 8 of 11 JUN 27 1995 ITEM 17 - - 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 ~-~ 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 JUN 2 7 1995 n~M 17 9 of 11 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 JUN 2 7 1995 F~M 17 ,l: 10 of 11 - -~ -' 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 ~- JUN 27 1995 ITEM 17 11 of 11