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Home My WebLink About09. Adopt Reso Approving CALMET Annual Rate AdjustmentAP 14 ILIO. D BY CITY MANAGER T: HONORABLE YR AND MEMBERS OF THE CITY COUNCIL FROM: OFFICE OF THE CITY MANAGER Y: DELFINO R. CONSUNJI, P.E., DIRECTOR OF PUBLIC O ,TY E GI ER DATE: MARCH 12, 2019 APPROVE RATE ADJUSTMENTS REQUESTED SERVICES INC., CITY'S SOLID WASTE COLLECTION SERVICES u�� •• _ • • • • • • r• •- - - • to ♦ .; f f. - ♦ • • �.. The agreement included a number of provisions improving the City's waste hauling service such as: i • A freeze on residential rates for one year ( April 1, 2016 to April 1, 2017) • Replacement of CalMet's fleet of gasoline fueled trucks with new Compressed Natural Gas (CNG) vehicles • Replacement of approximately 63,000 carts and bins • Implementation of 10% discount for qualified senior citizens • Implementation of a 10% vehicle impact fee • Implementation of new customer service programs that included free a -waste and dry cell batteries collection, paper -shredding and mulch give-away events. The agreement incluice s certain provisions f• i • request an adjustment' • its rates. This CALMET RATE ADJUSTMENT REQUEST MARCH 12, 2019 PAGE 2 Index (RRI). The RRI is a series of indices that are tied to CalMet's major cost centers (labor, fuel, vehicle and equipment replacement, vehicle maintenance, and other costs) and disposal element costs (transfer/landfill, materials recovery facilities processing, green waste and organics). On March 13, 2018, the City Council adopted Resolution No. 18-7788 approving a 9.13% rate increase for single-family residential customers, 6.5% rate increase for multi -family residential customers (up to four units) and a 6.6% rate increase for commercial, including multi -family (five or more units) customers. The rate increases were based on a Detailed Rate Review completed by R3 Consulting Group on February 22, 2018. On November 30, 2018, Public Works staff received CalMet's request for a 2.58% rate increase for single-family residential customers, 3.50% rate increase for multi -family residential customers (up to four units), and a 3.57% rate increase for commercial, including multi -family residential (five or more units) customers. Staff has reviewed and analyzed supporting documents identifying the changes in the costs of labor, fuel, vehicle replacement, vehicle maintenance, and other related expenses and evaluated the proposed adjustments to the collection component of the rates using the RRI methodology. Furthermore, all records related to the costs of disposal (transfer and landfill) and processing have been analyzed to determine the necessary rate adjustment for each disposal component. The below charts demonstrate the calculations utilized in determining the proposed rate adjustment related to single-family residential customers. The same methodology was used to calculate the proposed rate adjustments for other types of solid waste and recycling services provided by CalMet. 0 CALMET RATE ADJUSTMENT REQUEST MARCH 12, 2019 PAGE 3 Collection Components —category — Oata ource-Ttem —Weight -we—rohiod— Indices as of- porOhfto� $ Labor Employment, hours and earnings from current employment, waste 1931 2013 425% $ 2,742,480 450% 191% collection (U S Department of Labor, Bureau of Labor Statistics Fuel Lubricants Compressed Gas for Motor 2056 2026 -155% $ 336,931 55% -009% Vehicles Vehicle Truck, bus, car and other vehicles Replacement [bodies, for sale separately (U,S 2406 24R 7 378% $ 745,380 122% 046% 'm Department of Labor, Bureau of Labor Statistics Vehicle Parts and attachments for Maintenance industrial work trucks and tractors 2636 2733 368% $ 325,530 53% 020% (U.S Department of Labor, Bureau of Laborj 7Other -Costs Con ice Inde.. All Urban Consumers, I items, West Size 150336 154 729 292% $ 1.944580 31..9% 093% Class B/C (6 S, Department of Labor, Bureau of Labor Statistics) $ 6,094901 � 100% 341-1. Based on the above RRI, reflecting changes in costs for the collection components of service and percentage changes in costs of various disposal elements, the existing rate for single family residential customers is proposed to be adjusted as follows. The requested rate of $20.79 was adjusted with the removal of the residential disposal cost "recoup", which was a one-time adjustment applied to single-family residential customers last year. Consequently, the proposed rate for single-family residential customers for this year is $20.63, which represents a 2.58% increase. In addition, the commercial rate for a three cubic yard bin with once a week pick-up is proposed to increase by 3.57% from $140.46 to $145.47per month as follows. 3 CALMET RATE ADJUSTMENT REQUEST MARCH 12, 2019 PAGE 4 A recent comparison of the City of Downey's single-family residential and commercial rates fora three cubic yard bin with one time per week pick-up (a common service level) to those rates in neighboring cities show that Downey's proposed rates will be slightly less than average. A complete list of adjustments to current rates for different categories of customers and various type services provided by CalMet is included in the attached Resolution. Staff is recommending that the City Council adopt the attached Resolution. Fiscal Responsibility Quality of Life, Infrastructure& Parks FISCAL IMPACT There is no fiscal impact to the City from the proposed rate increases. The rate increases for solid waste collection services will be passed through to the residential and commercial customers utilizing CalMet's services. ATTACHMENTS Attachment A: Resolution I! -.�;%"ESOLUTION RESOLUTION OF i OF OF DOWNEY APPROVING RATE ADJUSTMENTS FOR SOLID WASTE SERVICES PROVIDED • RESIDENTIAL AND COMMERCIALi WHEREAS, the City of Downey has previously entered into an Integrated Waste Management Services Agreement with CalMet Services, incorporated (CalMet) dated April 1, 2016 for solid waste disposal and recycling services to the City; and WHEREAS, the rate adjustments requested by CalMet are in accordance with those provisions of the Agreement specifying the methodologies for calculating adjustment to rates and fixing maximum rates; and WHEREAS, pursuant to the Agreement, CalMet has requested an annual adjustment to increase the maximum rates for solid waste and recycling services; and WHEREAS, the City Council confirms that the requested annual rate adjustment is consistent with the methodology set forth in the Agreement. NOW, . • .;, THE CITY COUNCILOF OF DOWNEY DOES HEREBY RESOLVE i' • SECTION 1. The City Council hereby confirms that the requested annual rate adjustment is consistent with the methodology set forth in the Agreement. CalMet's requested rate increase and maximum monthly rates for collection and recycling of solid waste are in accordance with the schedule set forth below effective April 1, 2019: Categories New Rate Per Month Single family $ 20.63 Multi family ( 2- 4 units) $ 22.59 Extra Trash Container $ 4.60 Extra Green Waste Container $ 4.39 Discount Rate for Small Container $ (2.06) New Rate Per Pickup Contamination Charge $ 26.54 Extra Pickup -Trash $ 17.72 Extra Pickup -Green Waste $ 14.13 'Temporary 3CY Bin $ 143.15 RESOLUTION NO. PAGE 2 MULTI -FAMILY (5 OR MORE UNITS) COMMERCIAL BIN SERVICE FOR TRASH Roll-out Service 1 $ 43.84 $>:87.68 $131.55 $ 175.40 $ 219.25 1 $ 263.09 $ 10.11 1 19. $263.09 $ 10.11 Bin Lock Service 1 $ 43.84 ] $ 87.68 1 $131.55 $ 175.4�0 $ 219.25 MULTI -FAMILY (6 OR MORE UNITS) COMMERCIAL BIN SERVICE RECYCLING Extra Extra Pickup Pickup Per Number of Pickups Per Week/Billed Monthly Occasion Bin Size or Per Number of Pickups Per Week/Billed Monthly -Occasion Service 1 2 3 4 5 6; 1 CY $ 87.93 $ 158.22 $228.47 $298.75_ $369.05 $509.93 $ 61.56 2 CY $109.66 $188.41 $267.19 $345.95 $ 424.73 $ 582.95 $ 70.44 3 CY $131.39 $218.66 $305.87 $393.15 $ 480.41 $ 655.93 $79.21 4 CY $15& 11 1 $248.851 $344.61 $ 440.31 1 $ 536 ' 05 $728.86 $87.98 6 CY $196.55 1 $ 309.14 1 $421.67 $ 53,422 1 $ 646.78 $ 936.62 $105.48 Roll-out Service 1 $ 43.84 $>:87.68 $131.55 $ 175.40 $ 219.25 1 $ 263.09 $ 10.11 1 19. $263.09 $ 10.11 Bin Lock Service 1 $ 43.84 ] $ 87.68 1 $131.55 $ 175.4�0 $ 219.25 MULTI -FAMILY (6 OR MORE UNITS) COMMERCIAL BIN SERVICE RECYCLING Extra Pickup Per Number of Pickups Per Week/Billed Monthly -Occasion Bin Size or Service 1 2 3 4 5 6 $ 61.02 $ 91.56 $ 121.96 $ 152.60 183.13 $213.62 $ 61.42 --- - ---------- ? -CY- $ 76.31 $122.08 $ 167.87 $ 213.62 $259.40 $305.19 $ 70.19 cy $ 91.56 $152.60 $ 213.62 $ 274.68 $335.74 $396.78 $ 78.95 4 cy - $106.28 $183.65 $259.56 $335.46 $412.84 $488.74 $ 87.74 Roll-out Service $ 43.84 $ 87.68 $131.55 $175.40 $219.25 $263.09 $ 10.11 Bin Lock Service-, $ 43.84 $87.68 1,$1,31.55 -1 $175.40 $219.25 $263.09 $ 10.11 RESOLUTION COMMERCIALPAGE 3 FOR TRASH BIN SIZE OR Number of Pickups Per Week/ Billed Monthly EXTRA PICKUP SERVICE Extra 2 3 4 5 6 PER OCCASION 2 Pickup $422.91 $ 591.08 $ 759.26 $ 927.44 $1,254.53 $ 141.80 3 CY Per $ 494.00 $ 684.48 Number of Pickups Per Week/Billed Monthly $1,065.47 Bin Size or $ 160.51 4 CY $ 352.27 $ 565.04 $ 777.85 $990.60$1 203 45 Service 1 2 3 _ 4 5 6 rOccasion 1 CY $100.85 $171.72 $242.54 $313.39 $384.25 $525.71 61.69 2 CY $123.15 $203.02 $282.93 $362.82 $ 442.73 $ 602.08 $ 0.71 3 CY $145.47 $234.39 $323.36 $412.32 $ 501.27 $ 678.47 $ 79.58 4 CY $167.73 $265.72 '$363.76 $461.75 $559.73 $ 754.82 $_ 88.49 6 CY $212.32 $328.34 $444.31 $560.28 $ 676.26 $ 907.60 $106.27 Roll-out Service $ 43.84 $ 87.68 $131.55 $175.40 $ 219.25 $ 263.09 $ 10.11 Bin Lock Service $ 43.84 $87.68 $131.55 $175.40 $ 219.25 , $263.09 $ 10,11 BIN SIZE OR Number of Pickups Per Week/ Billed Monthly EXTRA PICKUP SERVICE 1 2 3 4 5 6 PER OCCASION 2 $ 254.71 $422.91 $ 591.08 $ 759.26 $ 927.44 $1,254.53 $ 141.80 3 CY $ 303.49 $ 494.00 $ 684.48 $ 874.98 $1,065.47 $1,432.51 $ 160.51 4 CY $ 352.27 $ 565.04 $ 777.85 $990.60$1 203 45 $1,610.42 $ 179.54 Roll- $ 43.84 $ 87.68 $ 131.55 - $ 175.40 _, $_219.25 $ 263.09 $ 10;11 RESOLUTION NO. PAGE 4 NEW RATES Number of Pickups Per Container Type Week/ Billed Monthly Size 2 65 gallon $ 89.93$ 978.64 �� • - =Montlh ��E w Rate • •. •: $678.26 New Rate .. in Size or Cleanup Bin 20 CY Roll -Off Bin 30 CY Roll -Off Bin, •.1 40 CY Roll -Off Bin .....1... • • , •, 1,, Loy_y,-_Bqy,Cpnstruction Box !- • & Construction �� • - =Montlh ��E w Rate • •. •: $678.26 RESOLUTION NO. ;"AGE 5 SECTION 2. The said solid waste collection fees shall be effective April 1, 20119 SECTION 3. The City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 12th day of March, 2019. RICK RODRIGUEZ, Mayor MARIA ALICIA DUARTE, CMC City Clerk I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a regular meeting held on the 12th day of March, 2019, by the following vote, to wit: AYES: Council Members: NOES: Council Member: ABSENT: Council Member: ABSTAIN: Council Member: MARIA ALICIA DUARTE, CMC City Clerk