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HomeMy WebLinkAbout11. CalMet Rate Increase AGENDA MEMO DATE: June 22, 2010 TO: Mayor and Members of the City Council FROM: Office of the City Manager By: Brian A. Ragland, Director of Public Works SUBJECT: CalMet Services Request for Annual Trash Rate Adjustment RECOMMENDATION That the City Council approve the annual rate adjustment submitted by CalMet Services, Inc. DISCUSSION Solid waste services are provided by CalMet Services, Inc. (CalMet). Pursuant to the allowances in the “Solid Waste Handling Services Agreement” dated September 13, 2005 and the “First Amendment to Solid Waste Handling Agreement” dated March 24, 2009, CalMet has requested this yearly rate adjustment. The rate adjustment includes increases based on a fixed formula in the Agreement, a phased-in increase stated in the First Amendment, and an increase due to additional diversion programs required by the California Department of Resources Recycling and Recovery (CalRecycle). The City is currently under a Compliance Order with CalRecycle and must adhere to its mandates. The new rate for single-family homes would increase to $14.31 per month, which is 12.6% above the current monthly rate of $12.71. However, the proposed rate is still lower than the $14.52 single-family rate charged in 2001. The new multi-family (2-4 units with residential barrels) rate would also increase 12.6%, from $12.16 to $13.69 per month. All commercial and temporary service rates will increase 15%. For example, a 3 yard bin picked up once a week will increase from $90.64 to $104.24. Temporary Service includes clean-up bins, 20, 30, and 40 cubic yard roll-offs, compactor bins, low-boy construction boxes, and construction and demolition roll-offs. Rates for Temporary Services are charged each time the bins or roll-offs are serviced. Even with the proposed rate adjustment, Downey trash rates still remain among the lowest 20% of all the cities in Los Angeles County. The new rates listed as Exhibit 1, attached, will become effective July 1, 2010 and will remain in effect until March 31, 2011. CITY OF DOWNEY, CALIFORNIA Mayor and Members of the City Council CalMet Services Request for Annual Trash Rate Adjustment June 22, 2010 Page 2 FISCAL IMPACT There is no fiscal impact on the City, as the rate increases will be passed along to the residential and commercial customers who utilize the waste collection services. Attachment: Exhibit 1 S:\Agenda Memos CC 2010\06-22-10\CalMet Trash Rates EXHIBIT 1 DOWNEY 2010 SOLID WASTE MONTHLY DISPOSAL RATES RESIDENTIAL SERVICES Categories April 2009July 2010 Single Family * $12.71 $14.31 Multiple Family (2-4 units) * $12.16 $13.69 Extra Gray Container * $ 2.76 $ 3.11 Extra Green Container * $ 2.76 $ 3.11 Contamination Charge $16.58 $18.67 Extra Pick-up - Gray $11.05 $12.44 Extra Pick-up - Green $ 8.84 $ 9.95 Temporary Container $22.11 $24.90 Discount for Small Barrel * ($1.33) ($1.50) * Monthly Rates TEMPORARY SERVICES CategoriesApril 2009July 2010 (Rates based per bin serviced) Clean-Up Bin $ 88.42 $101.68 20 Cubic Yard Roll-Off $276.33 $317.78 30 Cubic Yard Roll-Off $331.59 $381.33 40 Cubic Yard Roll-Off $386.86 $444.89 Compactor Bin $414.49 $476.66 Low-Boy Construction Box $386.86 $444.89 Demo & Construction Roll-Off $460.00 $529.00 Page 1 of 3 MULTI-FAMILY COMMERCIAL BIN SERVICE Container Size Pickup Per Week April 2009 July 2010 1 Yard – (SMALL) 1X 55.27 63.56 2X 99.48 114.40 3X 143.69 165.24 4X 187.90 216.09 5X 232.12 266.94 6X 320.54 368.62 Extra Pickup 38.69 44.49 2 Yard (MEDIUM) 1X 69.08 79.44 2X 118.82 136.64 3X 168.56 193.84 4X 218.30 251.05 5X 268.04 308.25 6X 367.52 422.65 Extra Pickup 44.21 50.84 3 Yard (LARGE) 1X 82.90 95.34 2X 138.17 158.90 3X 193.43 222.44 4X 248.70 286.01 5X 303.97 349.57 6X 414.50 476.68 Extra Pickup 49.74 57.20 4 Yard (X-LARGE) 1X 96.71 111.22 2X 157.51 181.14 3X 218.30 251.05 4X 279.09 320.95 5X 339.88 390.86 6X 461.47 530.69 Extra Pickup 55.27 63.56 Bin Lock Service Per Number of Pickups27.63 31.77 Roll-Out Service Per number of Pickups27.63 31.77 Page 2 of 3 COMMERCIAL BIN SERVICE Container Size Pickup Per Week April 2009 July 2010 1 Yard – (SMALL) 1X $63.00 $72.45 2X 107.22 123.30 3X 151.43 174.14 4X 195.64 224.99 5X 239.85 275.83 6X 328.28 377.52 Extra Pickup 38.69 44.49 2 Yard (MEDIUM) 1X 76.82 88.34 2X 126.56 145.54 3X 176.30 202.75 4X 226.04 259.95 5X 275.77 317.14 6X 375.25 431.54 Extra Pickup 44.21 50.84 3 Yard (LARGE) 1X 90.64 104.24 2X 145.91 167.80 3X 201.17 231.35 4X 256.44 294.91 5X 311.70 358.46 6X 422.23 485.56 Extra Pickup 49.74 57.20 4 Yard (X-LARGE) 1X 104.45 120.12 2X 165.24 190.03 3X 226.04 259.95 4X 286.83 329.85 5X 347.62 399.76 6X 469.20 539.58 Extra Pickup 55.27 63.56 Bin Lock Service Per Number of Pickups27.63 31.77 Roll-Out Service Per number of Pickups27.63 31.77 Page 3 of 3