ITEM 7 STAFF REPORT. Mayor and City Council. FROM: Eric Erickson, Finance and Human Resources Director ~
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1 rmill VALLEY ] STAFF REPORT TO: Mayor and City Council FROM: Eric Erickson, Finance and Human Resources Director ~ SUBJECT: Mill Valley Refuse Service Collection Increase Application DATE: June 17, Approved for Forwarding: McCann, City Manager - 1 Issue: 2 Consideration of a Resolution authorizing a Collection Application from Mill 3 Valley Refuse Service for a 2.7% increase in solid waste collection services effective July 4 1,. 5 6 Recommendation: 7 Adopt the Resolution. 8 9 Background: 10 The City and Mill Valley Refuse Service (MVRS) have had a franchise agreement for 11 refuse collection services dating back to The current Solid Waste Management 12 Agreement between the City and MVRS was effective January 1996 and has a rolling 13 (evergreen) lo-year term. This means that should the City or MVRS choose to terminate 14 the agreement, the agreement will continue for nine (9) more years after notice is given 15 until terminating Under the current franchise agreement, MVRS provides residential garbage, recycling 18 and green (including compostab1e) waste collection services as well as commercial 19 garbage and recycling collection and construction debris box services. In addition, 20 MVRS provides street sweeping services, downtown public garbage and recycling 21 collection and debris box collection for the City's corporation yard. 1 ITEM 7
2 City Council Staff Report Mill Valley Refuse Service Collection Increase Application June 17, The rates charged by MVRS for its residential, commercial and debris box services are 24 approved by City Council. Under the agreement, MVRS can request a rate change 25 annually. Section 11 of the agreement allows MVRS to submit an application for a 26 collection rate review on or before April 1 of each year for consideration of a rate 27 increase in the City's next fiscal year. This rate review is to be requested not less than 28 once every three years. In between formal rate reviews, annual rate adjustments may be 29 permitted based on changes in whatever price index the City and MVRS agree is 30 appropriate Last year, MVRS requested a rate increase of 4.38% effective July 1,2012. Upon receipt 33 of the rate application, the City requested that consideration of the rate increase be 34 supported by a formal rate review, the prior formal rate review having been performed in The R3 Consulting Group (R3) was chosen to perform the review. R3 is also the 36 firm that provided the rate review in R3, based in Sacramento, provides national 37 management consulting services for solid waste and water/wastewater utilities, 38 compliance audits; and negotiation, implementation and monitoring of contracts and 39 franchise agreements. In addition R3 was engaged to assist with the Zero Waste 40 Strategic Plans for Marin County and the cities of Oakland and San Jose. d on the 41 R3 review, the City and MVRS agreed to a revised rate increase of2.81 % Discussion: 44 As noted above, in between formal rate reviews, annual rate adjustments are permitted by 45 the franchise agreement based on changes in a consumer or producer price index 46 mutually agreed to as appropriate by the City and MVRS. Historically, the City and 47 MVRS have used the 12-month Consumer Price Index (CPI) for the San Francisco 48 Oakland-San Jose metropolitan area. MVRS has requested a 2.7% increase which is 49 consistent with the 12-month annual CPI (December 2012) for the San Francisco 50 Oakland-San Jose metropolitan area The refuse franchise agreement subcommittee, comprised of Councilmembers Marshall 53 and Moulton-Peters, the City Manager and the Finance Director, is working with MVRS 54 on new terms for the franchise agreement. A revised agreement is being underway and is 55 scheduled to be completed and reviewed with Council within the next few months Fiscal Impact: 58 For a household with a typical 32 gallon garbage can, including recycling and green can 59 service, the requested collection rate would result in a monthly cost of $38.66 for "Flat 60 Area" service, an increase of $1.02 and $44.35 for "Hill Area" service, an increase of 61 $ Attachments: Draft Resolution Proposed MVRS 2012 Sheets and Miscellaneous Terms and Conditions 66 2
3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILL VALLEY AUTHORIZING AN INCREASE IN THE GARBAGE COLLECTION RATES AND DEBRIS BOX RATES EFFECTIVE JULY 1, WHEREAS, Section ofthe Mill Valley Municipal Code provides for the establishment of garbage collection rates by resolution; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Mill Valley authorizes the Terms and Conditions and a 2.7% increase in garbage collection rates and debris box rates effective July 1,, as indicated on Exhibit A, attached. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Mill Valley on the 17th day of June, by the following vote: AYES: NOES: ABSENT: Attest: Kelsey Rogers, City Clerk!Administrative Analyst Andrew Berman, Mayor ATTACHMENT 1
4 Jim McCann April 1, Mill Valley City Hall 26 Corte Madera Ave. Mill Valley, CA We are pleased to report this year that MVRS seeks only a rate adjustment equal to the CPT rate of2.7%. As such, no direct action is required on the part ofthe Council. However, there is one addition to the Terms & Conditions portion ofthe rate sheet that will require approval: the establishment ofa new Commercial Compost Service. Since food waste compost service began almost three years ago, businesses such as restaurants, deli's and supermarkets, have not been allowed to participate because the compost permit at the landfill restricted the amount of food waste that could be mixed with yard waste for composting. We have been told by Redwood Landfill representatives that they expect this to change by the end ofthe summer, and they should be able to begin accepting commercial food waste at that time. Therefore, we want to begin offering this option to our commercial customers in the food industry. In a couple ofpilot programs conducted this past year, we learned that most restaurants really need food waste carts to be dumped daily, rather than on a weekly basis as is the case with residential food waste. Right now, trash service includes picking up unlimited recycling and one compost cart, and a restaurant that subscribes to trash service multiple days per week will have its compost cart picked up the same amount ofdays at no extra charge. However, some restaurants may need more than one compost cart, andfew restaurants require daily trash service, so ifa restaurant needs extra carts or compost service on extra days, a new rate must be createdfor this additional service. We wish to bring to your attention that this year's rate sheet includes this new rate. This rate is optional, and would only affect those businesses that subscribe to it. Businesses that use this option may be able to reduce their trash service and achieve some overall savings as their food waste "migrates" from their trash cans to their compost carts. Of course, participation in this program will also help to meet State and County zero waste goals by diverting more and more waste from our landfills. We look forward to answering any questions you might have about this in the next few months. Sincerely Yours, ~~~ ATTACHMENT Front Street Son Rafael, CA Fox: WASTE COLLECTION DEBRIS BOXES PORTABLE RESTROOMS RECYCLING
5 Effective July 1, Increase 2.7% Mill Valley RESIDENTIAL RATES * Flat Area 2012 o;a ~ Quarterly Quarterly # of Cans/Size/1 Pick Up $ a34.13 $ ~ $ $ 4.78 $ $ Gallon $ 37.64" $ ~ $ $ 4.78 $ $ Gallon $~ 1fl _$ l1l $ $ 4.78 $ $ Gallon $,, $;tj~ $ $ 4.78 $ $ Gallon $ $ ';l ~ $ $ 4.78 $ $ Gallon $ li$ '.i415.q17n $ $ 4.78 $ $ Gallon $ $~ ~ ~ $ $ 4.78 $ $ Gallon Hill Area 1'I)iII " 2012 " II 2012~ III Quarte ~y ~ - Quarterly # of Cans/Size/1 Pick Up $ Q39.18 $ ' $ $ 4.78 $ $ Gallon $ $ $ $ 4.78 $ $ Gallon $ $ $ $ 4.78 $ $ Gallon $ ' $ $ $ 4.78 $ $ Gallon $ $ $ $ 4.78 $ $ Gallon $ $ " $ $ 4.78 $ $ Gallon $ $ 11' $ $ 4.78 $ $ Gallon SSI (Supplemental Security Income) 2012" -~~ 201 2~~ ~..!JI Quarterly Quarterly # of Cans/Size/1 Pick Up $' IIilI II'U $ rt $ 5.47 $ 2.39 $ 7.86 $ Gallon-Flat Area $ ~ Ui $ ' $ 7.21 $ 2.39 $ 9.60 $ Gallon-Hill Area $ 4.78 $ 4.78 $ $ $ $ 4.78 $ $ Flat Area Rental $ nfa $ nfa $ $ $ Hili Area $ $ $ $ Rental nfa nfa $ # of Cans/Size/1 Pick Up 1-32 Gallon 1-45 Gallon 1-1 dcontainer 1-2 d container # of Cans/Size/1 Pick Up f..32 Gallon 1-45 Gallon 1-1 d container 1-2 d container See Residential Miscellaneous Terms and Conditions for additional informat ion & backyard service rates
6 Effective July 1, Increase 2.7% Mill Valley 2012 MontJily $ " $ 281":97 $ $ $ t $ II 2012 $ $ ~ $ $1, $1, $1, $ $ $ $ $ ' $ , $ $ $ $1, $1, $1, $ $ $ $ $ $ $ $ $ $ $ $ COMMERCIAL RATES * Extra trash charge: $32.26 per yard 1 Yard Rental $ $ $ $ $ $ $ $ ' $ $ $ $ Yard $ $ $ $1, $1, $1, Rental Trash Cans # of Pick Ups/ 1 Pick Up 2 Pick Ups 3 Pick Ups 4 Pick Ups 5 Pick Ups 6 Pick Ups # of Pick Ups/ 1 Pick Up 2 Pick Ups 3 Pick Ups 4 Pick Ups 5 Pick Ups 6 Pick Ups Rental # of Cans/Size/1 Pick Up $ $ $ 4.80 $ nfa 1-32 Gallon $ $ $ 7.16 $ nfa 1-45 Gallon. compactor (per yara) + I "'2012 ~, nla1".,<~, I (per ydlmonth) I I Rental I # of Pick Ups $ $ nfa nfa 1 Pick Up + Maximum Weight: 8 tons. Overweight Charge: $100 per ton. ' Saturday Service ~ Rental # of Cans/Size/1 Pick Up nls' ~, $ $ nfa nfa 1-45 Gallon Can nfa $ $ nfa nfa 1 Yard nla $ $ nfa nfa 2 Yard See Commercial Miscellaneous Terms and Conditions for additional information I
7 MiUYaUey Residential Miscellaneous Terms and Conditions Service Service includes pickup oftrash, recycling and compost cans, two-times-per-year on-call curbside pickups, and on-call pickups of limited household hazardous wastes listed on the MVRS website. MVRS provides one (l) compost can and one (l) recycling can per customer. Extra compost and recycling cans are available for $6.00 per can per month. Additional Quantities of Cans Service for additional cans over the quantities listed on the rate sheet will be charged a multiple ofthe single can, one-time-per-week pick up rate (i.e. five 32-gallon cans are charged the four-can rate plus the one-can rate). Low Income A 20% discount off the applicable residential rate is available to residential Single-Family customers who have already qualified for the PG&E CAREIFERA Program. A copy ofthe customer's PG&E biii showing the qualified CAREIFERA Program is required for the discount. To maintain the discounted rate, customers must submit a new PG&E biii annually showing the CAREIFERA discount. SSI The SSI is available to anyone receiving Supplemental Security Income (SSI) or Medi-CaI. ApartmentlMulti-Unit Residential (AlMUR) s A/MUR complexes are defined as multi-unit residential housing with four or more units all paid for by the property owner. A/MUR complexes are charged a minimum of one 32-gallon can per unit per trip at the applicable once-per-week Apartment as shown on the current, approved rate sheet. Additional 32 gallon cans over the minimum wiii be charged at the additional applicable per-can rate. In cases where 45-gallon cans or I-yard and 2-yard containers are used instead of, or in addition to, 32 gallon cans, the following equivalency formulas wiii be applied to determine whether additional 32-gallon cans (over the minimum set forth immediately above) shall be charged at that location: Each 45-gallon can will be considered to hold one-and-one-half 32-gallon cans. Each I-yard container will be considered to hold seven 32-gallon cans, and each 2-yard container will be considered to hold fourteen 32-gallon cans. (If I-yard or 2-yard containers supplied by MVRS are used, standardcommercial container rental rates will be charged in addition to the applicable apartment rate). Ifthe foregoing equivalency formulas result in a higher number of32-gallon cans than the minimum ofone per unit, the applicable once-per-week rate shall be applied to such higher number of32-gallon cans. Ifthe result is a lower number of32-gallon cans, then the minimum one-can-per-unit charge set forth above shall be applied (unless composting services are being used). Exception to the above: A/MUR complexes that use the available yard/food waste composting service will be charged a rate reflecting the actual amount of garbage collection requested, measured in 32-gallon equivalents and applied on a per-trip basis at the applicable 32-gallon, once-per-week rate as shown on the current, approved rate sheet. MVRS will provide A/MUR complexes with up to one recycle can and one compost can per unit at no extra charge. Extra cans are available at $6.00 per month per can. Multiple trips in a week to a single location will be charged a multiple ofthe applicable once-per-week rate.
8 Miscellaneous and Extra Charges 32-gallon extra trash can/bag: $ gallon extra trash canibag: $ gallon extra yard waste can/bag: $6.00 Customers should call in advance for free quotes on other loose trash and bulky items. Delinquent Accounts Ifan account is put on "stop service" due to a past due balance, a $20.00 processing fee will be charged in addition to the past due amount to reactivate service. Vacation Holds on Service Accounts may be put on Vacation Hold for a minimum ofthree months only with no administration fee upon reactivation of service. Mill Valley Commercial Miscellaneous Terms and Conditions Service s Service s include trash, recycling and compost can service. MVRS provides one (1) 64-gallon or two (2) 32 gallon compost cans, but an unlimited number ofrecycle cans upon request. Extra compost cans are available at an additional charge (see Compost Can chart below). Compost Cans,'" 2012 'h/a.,,' ~ ~ n/ a"",.,. $13.18 $26.36 Rental # of CanslSizel1 Pick Up 1-32 Gallon 1-64 Gallon Multiple CanslPickups - Trash & Compost Service Multiple cans/pickups ofquantities listed on the Commercial sheet and Compost Can chart above are charged a multiple ofthe single can, one-time-per-week pick up rate. Rental Fee Rental fee covers all repairs due to normal wear and tear and steam cleaning ofthe container once per year. Additional steam cleanings during the year are $100 per container per cleaning. Saturday Service There is no special charge for Saturday service ifthe customer already has five (5) times a week service during the regular workweek (Mon-Fri), The special Saturday rate is available to customers with a minimum ofthree (3) times a week service during the regular workweek. Sunday Service Sunday service may be available depending on demand.
9 Additional Commercial Compost Service Available For commercial customers who subscribe to trash service multiple days per week, recycling carts and one (1) 64-gallon or two (2) 32-gallon compost cans will be picked up on the same number of days as trash (if necessary) at no additional charge. Compost cans may be picked up more often than the trash service upon request at an additional charge (see Compost Can chart above). Delinquent Accounts Ifan account is put on "stop service" due to a past due balance (net 30), a $20.00 processing fee will be charged in addition to the past due amount to reactivate service.
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