GRESHAM CITY COUNCIL AGENDA ITEM TYPE: DECISION

Transcription

1 GRESHAM CITY COUNCIL AGENDA ITEM TYPE: DECISION Resolution No. 3211: Updating Solid Waste Collection Rates Meeting Date: July 7, 2015 Agenda Item Number: E-2 Service Area: Environmental Services Service Area Manager: Steve Fancher REQUESTED COUNCIL ACTION Move to approve Resolution No establishing fees and charges for Chapter 7 of the Gresham Revised Code for Solid Waste Collection Service, and repealing Resolution No PUBLIC PURPOSE AND COMMUNITY OUTCOME The solid waste collection rates support the vital functions of the City of Gresham s recycling and solid waste system, including collection and transfer of waste materials, education and outreach, and enforcement of the Gresham Revised Code. Approval of Resolution 3211 will allow staff and our licensed haulers to effectively manage resources to help preserve the City s financial stability and levels of service as it relates to the licensed recycling and solid waste collection system. Licensees will continue to provide safe, efficient, and responsive recycling and solid waste collection services to Gresham s residential and commercial customers. Rates are proposed to increase for residential, commercial, and drop box lines of service. BACKGROUND The Department of Environmental Services reviews the solid waste system s financial performance and collection rates annually. Staff analyzes financial reports by the City s five licensed haulers for residential, commercial, and drop box services and uses the adjusted composite results for the whole system as the basis for determining whether rate increases are necessary to cover future collection costs and to provide for a reasonable profit for the licensed haulers. It is also an ancillary goal for each line of service to cover its costs, to avoid having commercial rates subsidize residential rates and vice versa. Historically, the hauler Return on Revenues (ROR) has been targeted at 10%, with a range between 8% and 12% being considered reasonable. For calendar year 2014, the composite ROR was 7.5%. The current rate review indicates a projected composite ROR for the calendar year 2015 of approximately 4.4%. Key factors associated with this projection include: - Metro solid waste tip fee increase of 3.27%; - A 70% reduction from 2014 in the revenues earned from the sale of recyclables, and current net costs rather than revenues; - A 2.15% increase in labor; and - Increased capital costs with truck replacements for some haulers. 1

2 Projecting further through calendar year 2016 anticipates the composite return on revenue falling to around 3% without additional rate revenues or significant recycling market recovery. The recommended rate package increases monthly residential solid waste collection rates by 5% for all routine residential services, or $1.41 per month for the most common customer. As an example of how this would impact a Gresham rate payer, the most common garbage customer in Gresham utilizes a 35-gallon garbage cart for weekly service. This customer s rate is currently $28.28 per month which includes garbage, recycling and yard debris collection weekly. The new rate, to be effective September 1, 2015, would be $ For a 20-gallon cart customer, the current rate is $ The new rate would be $ Residential rates were last adjusted in Commercial rates would increase by 7%. For a commercial customer with a 3-yard container serviced once weekly, the current monthly cost is $ The new rate would be $ The proposed rate adjustment for commercial is higher than residential because commercial rates were not adjusted in 2013, and were last adjusted in June of The ROR for this service line has been much lower than residential since For a complete listing of all proposed rate adjustments, please refer to Attachment A: Resolution No Because new rates would not go into effect until September 1, 2015, the impact of the proposed rate adjustment on the projected 2015 ROR is relatively minor, moving from approximately 4.5% to approximately 5.5%. The rate adjustment would generate approximately $73,500 in additional revenues to the system monthly, or $882,000 over a 12- month period. Continuing these projections into calendar year 2016, with this proposed rate adjustment and assuming recycling markets continue to deliver zero revenue to the system, we project the composite ROR to be between 7 and 8%. This projection is speculative due to the number of variables that can impact hauler earnings, the most significant of which is recycling market volatility. If recycling markets were to strengthen for calendar year 2016 for example, and begin to earn revenue at $15 a ton, the composite ROR could improve to close to 8.5%. If this proposed rate adjustment is approved by Council, staff will closely monitor recycling market values and will bring a rate reduction to Council mid-year if necessary. In addition, options to reduce or eliminate the effect of the recycling market volatility will be discussed at the July 14 Council Policy Development meeting. In addition to the residential rate increases discussed above, Resolution No also removes the obsolete occasional yard debris container rate, and repeals Resolution No RECOMMENDATION AND ALTERNATIVES 1. Staff recommends Council approve Resolution No updating solid waste collection service rates. 2. Council may choose to adopt a modified rate Resolution or defer action on the Resolution to a date later than September 1, Council may choose not to adopt an increase at this time. 2

3 BUDGET / FINANCIAL IMPACT Passage of Resolution No would increase revenues among the licensed haulers in the Recycling and Solid Waste collection system annually by approximately $882,000. License Fee revenues to the City s General Fund, which are set at 5% of overall system revenues, would increase by approximately $37,000 in fiscal year 15/16. PUBLIC INVOLVEMENT The rate review process, findings from the 2014 rate review, and the proposed rate adjustment were discussed at the June 18, 2015 Natural Resources and Sustainability Committee meeting. NEXT STEPS Should Council adopt Resolution No. 3211, the licensed hauling companies would provide notification to all affected rate payers of the rate adjustments at least 30 days prior to the rates taking effect. Rates would become effective September 1, 2015 for services from that date forward. ATTACHMENTS A. Resolution No FROM: Steve Fancher, Environmental Services Director Dan Blue, Recycling and Solid Waste Program Manager REVIEWED THROUGH: Sharron Monohon, Budget and Financial Planning Director Bernard Seeger, Finance and Management Services Director David Ris, City Attorney Office of Governance and Management FOR MORE INFORMATION Staff Contact: Dan Blue Telephone: (503) Staff dan.blue@greshamoregon.gov Website: 3

4 RESOLUTION NO A RESOLUTION ESTABLISHING FEES AND CHARGES FOR CHAPTER 7 OF THE GRESHAM REVISED CODE FOR SOLID WASTE COLLECTION SERVICE, AND REPEALING RESOLUTION NO THE CITY OF GRESHAM FINDS: Chapter 7, Offenses and Health, of the Gresham Revised Code (GRC), provides that the council shall establish certain fees and charges by resolution. THE CITY OF GRESHAM RESOLVES: Section 1. as follows: The fees and charges for GRC Article 7.25, Solid Waste Control, are established GRC : The maximum allowable rates for service are: I. RESIDENTIAL STANDARD SERVICES (SINGLE-HOUSEHOLD ACCOUNTS) Basic monthly charge for each service level includes weekly collection of garbage, yard debris and recyclables. Garbage, plus Yard Debris Monthly Rate gallon cart 60-gallon cart $ gallon cart 60-gallon cart $ gallon cart 60-gallon cart $ gallon cart 60-gallon cart $ Additional Garbage Cart Collection for Single-Household Accounts Monthly Rate Second & any additional 20-gallon carts $ Second & any additional 35-gallon carts $ Second & any additional 60-gallon carts $ Second & any additional 90-gallon carts $ Additional Weekly Yard Debris Cart Collection for Single-Household Accounts Monthly Rate Each additional 60-gallon cart $ RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

5 II. RESIDENTIAL SPECIAL SERVICES (SINGLE-HOUSEHOLD ACCOUNTS) Service Once per month garbage service, with weekly collection of recyclables and yard debris One 35-gallon cart Rate $ /month On-Call service: garbage only, one 35 gal. cart $ Occasional extra for garbage, per can or bag Recycling Only Service For non-garbage customers, weekly collection (excludes yard debris collection) Yard Debris Extras 32-gallon can, kraft yard debris bag, or bundle Yard Debris Only - For non-garbage customers, (one year subscription, paid in advance) weekly collection 60-gallon yard debris cart $ /each $ /month $ /each $ /year Yard Debris Exemption Monthly Credit $2.85 III. RESIDENTIAL COLLECTION FROM NON-CURBSIDE LOCATIONS Standard residential collection is provided at the curbside of the public street. A customer whose residence is more than 75 feet from the standard collection location may request collection service at another location accessible by existing collection equipment under the following terms and conditions: a. Distance Fees for Garbage Collection (distance from the curb of the public street to collection location): feet Basic monthly charge plus $ /month 501 feet or longer Basic monthly charge plus $ /month b. Distance Fees for Yard Debris and Recyclables: A customer who elects to pay the distance fee for non-curbside collection will receive collection of garbage at the non-curbside collection location that is accessible by existing collection equipment. Recyclables and yard debris will be collected at the public street. The customer may elect to pay an extra distance fee for collection of recyclables and yard debris at the point of garbage collection. The distance fee will be collected for each service that travels to the non-curbside collection location as follows: feet 1 truck Basic monthly charge plus $ /month 2 RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

6 c. Safe Access feet 2 trucks Basic monthly charge plus $ /month feet 3 trucks Basic monthly charge plus $ /month Under all circumstances, collection of garbage, recyclables and/or yard debris from a collection location other than the standard residential curbside location will only be provided where and when the hauler determines that the location can be safely entered and exited with existing collection equipment. IV. RESIDENTIAL SERVICES: TWO-, THREE- & FOUR-PLEXES WITH SINGLE- BILLING Service includes garbage collection for each unit and collection of one shared 60 -gallon yard debris cart as well as recyclables from each unit. A per living unit fee will be charged after the first unit. 20 First 20-gallon cart Second and subsequent 20-gallon carts $ /per living unit Monthly Rate $ $ First 35-gallon cart $ Second and subsequent 35-gallon carts $ First 60-gallon cart $ Second and subsequent 60-gallon carts $ First 90-gallon cart $ Second and subsequent 90-gallon carts $ NOTE: For additional service, reference Additional Garbage Cart Collection for Single- Household Accounts, above. Surcharge for Non-Curbside Collection at Plexes With Yard Debris Service Without Yard Debris Service Monthly Rate $ per month per property $ per month per property 3 RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

7 V. MULTIFAMILY CART SERVICE 5 Units and More Service includes weekly garbage and recycling collection. Yard debris service requires one year subscription. Single-billing (rate per cart) Monthly Rate 20-gallon cart $ gallon cart $ gallon cart $ gallon cart $ gallon yard debris service $ /unit Centrally located yard debris cart service within multifamily 5 Units and More, also used for Commercial YD cart service: 60-gallon cart $ gallon cart $ VI. COMMERCIAL CART SERVICE (one stop per week, includes recycling) Monthly Rate 35 First 35-gallon cart $ Each additional 35-gallon cart $ First 60-gallon cart $ Each additional 60-gallon cart $ First 90-gallon cart $ Each additional 90-gallon cart $ VII. DROP BOX RATES a. REPEAT SERVICE (LOOSE) Customer Charges 10/20 Yard 30 Yard 40 Yard 1. Monthly Rental Fee (Collector furnishes drop box) plus - 2. Hauling Fee (Charged each time drop box is picked up and taken to disposal facility for disposal or waste) plus - $ $ $ $ $ $ RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

8 3. One-time delivery charge plus - $40.00 $40.00 $ Disposal Fee Actual fee, charged by disposal or recycling facility, or credits received in the transfer of recyclable materials to a processor will be credited to the customer plus % margin on disposal fee plus - 6. Upon approval of the City Manager or designee, a per mile charge for mileage in excess of 18 miles round trip from the drop box customer to the disposal site for loads containing materials that must be taken to a special disposal site as follows: Per mile charge: $2.70 b. OCCASIONAL OR SINGLE-SERVICE BASIS (LOOSE) Customer Charges 10/20 Yard 30 Yard 40 Yard 1. Rental Fee Per Day Fee charged per drop box per day. Fee for 10/20 yard drop box begins after 48 hours on site. 2. Hauling Fee (Includes pickup and use of drop box for 48 hours) plus $ $ $ $ $ $ Delivery Charge plus - $40.00 $40.00 $ Disposal Fee Actual fee charged by disposal or recycling facility, or credits received in the transfer of recyclable materials to a processor will be credited to the customer, plus 5. 10% margin on disposal fee, plus 6. Upon approval of the City manager or designee, a per mile charge for mileage in excess of 18 miles round trip from the drop box customer to the disposal site for loads containing materials that must be taken to a special disposal site as follows: Per mile charge: $2.70 c. COMPACTED 1. Hauling Fee Up to and Including: Monthly Rate Per Haul 20 Yards $ Yards $ Yards $ These rates apply if the customer furnishes the compactor. If the collector furnishes the compactor, the collector may also charge a rental fee equal to the current rate the collector would pay on a lease-purchase plus any repair costs or such sum as agreed upon by the collector and the customer. In addition, upon approval of the City Manager or designee, the collector shall be entitled to a per mile charge for mileage in excess of 18 miles round trip from the drop box customer to the disposal site for loads containing materials that must be taken to a special disposal site as follows: Per mile charge: $ RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

9 2. Disposal Fee - Actual fee charged by disposal or recycling facility, or credits received in the transfer of recyclable materials to a processor will be credited to the customer, plus 10% margin on disposal fee d. RECYCLING CHARGE FOR MULTIFAMILY PROPERTIES WITH COMPACTOR GARBAGE SERVICE $ /living unit/month e. GLASS RECYCLING CHARGE FOR MULTIFAMILY PROPERTIES WITH COMPACTOR GARBAGE SERVICE & COMPACTOR MIXED RECYCLABLES SERVICE $0.25/living unit/month VIII. CONTAINER RATES a. Loose The fees shown in the following chart sets forth the maximum allowable monthly charges based on size of container, number of containers, and number of stops per week. Includes recycling services. Container Size One Two Three Four Five Six 1 cubic yard $85.76 $80.15 Each additional $73.83 $69.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ cubic yards $ $ Each additional $ $96.16 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ cubic yards $ $ Each additional $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ cubic yards $ $ Each additional $ $ $ $ $ $ $ $ $ $ $ $ $ $ $1, $ $ $ $1, $1, $1, $1, cubic yards $ $ Each additional $ $ $ $ $ $ $ $ $ $1, $1, $ $ $1, $1, $1, $1, $1, $1, $1, $1, RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

10 Container Size One Two Three Four Five Six 5 cubic yards $ $ Each additional $ $ $ $ $ $ $ $ $ $ $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, cubic yards $ $ Each additional $ $ $ $ $ $ $1, $1, $1, $ $1, $1, $1, $1, $1, $1, $1, $1, $2, $2, $1, $1, The collector shall furnish the container. b. COMPACTED To determine the maximum compacted container rate, a rate of 2.2 times the corresponding loose rate noted in the preceding loose rate chart will be used. If the manufacturer rates the compaction ratio between 3 and 4 to 1, the use a rate of 3.0 times the corresponding loose rate. Compaction ratios over 4 to 1 will use a rate of 4.0 times the corresponding loose rate. IX. Commercial Food Waste Rates a. Loose The fees shown below set forth the maximum allowable monthly charges based on the size of container and number of containers. Commercial food waste service is only available once per week. Commercial food waste service is not available on call. Container Size Once Per Week Only 1 cubic yard $ Each additional $ cubic yards $ Each additional $ cubic yards $ Each additional $ cubic yards $ Each additional $ cubic yards $ Each additional $ The collector shall furnish the container. Roll Carts Once Per Week Only 64 gallon roll cart $ Each additional (up to 3 total) $ or more $ per cart plus $15 monthly cart service fee The collector shall furnish the roll cart(s). 7 RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

11 X. ON CALL AND CLEAN UP CONTAINER RATES a. CLEAN UP CONTAINER SERVICE 1. First Collection: 33% of Regular Container Rate Plus One-time $ delivery fee, charged on first container only 2. Each Additional Collection: 33% of Regular Container Rate 3. Container Rent: Charged to customer keeping container longer than 5 working days (M-F) with no collection: Rent shall not exceed $30.00 per container in a 30 day period. Two Cubic Yards Three Cubic Yards Four Cubic Yards $2.00/day $3.00/day $4.00/day b. YARD DEBRIS CONTAINER SERVICE (OCCASIONAL SERVICE) 1. First Collection: 25% of Regular Container Rate Plus One-time $35.00 delivery fee, charged on first container only 2. Each Additional Collection: 25% of Regular Container Rate 3. Container Rent: Charged to customer keeping container longer than 5 working days (M-F) with no collection: Rent shall not exceed $30.00 per container in a 30 day period. Two Cubic Yards Three Cubic Yards Four Cubic Yards $2.00/day $3.00/day $4.00/day Hauler will provide equivalent service at equal price with collection carts if it is unable to provide collection containers. bc. ON CALL CONTAINER - PERMANENT ACCOUNT 1. Per Collection: 33% of Regular Container Rate 2. Each Additional Collection: 33% of Regular Container Rate 3. Monthly Container Rent: 1 Yard $ Yard $ Yard $ Yard $ Yard $ Yard $ Yard $ RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

12 XI. WEEKLY CONTAINER SERVICE FOR YARD DEBRIS (based on a one year service agreement) If hauler cannot provide front load container yard debris service, equivalent service will be provided using carts and equivalent rate will apply. Rate will be based on volume rounded up to nearest container size below. 1 Yard $ Yard $ Yard $ Yard $ Yard $ Yard $ Yard $ XII. RECYCLING SERVICES FOR COMMERCIAL DROP BOX GARBAGE ACCOUNTS OR COMMERCIAL ACCOUNTS WITHOUT GARBAGE SERVICE Weekly Recycling Only Cart Services Monthly Rate Weekly Recycling Service, First Cart $ Weekly Recycling Service, Each Additional Cart $ On Call Recycling Only Cart Services Cost Per Stop On-Call Service, Cost Per Stop, First Cart $ On-Call Service, Cost Per Stop, Each Additional Cart $ On-Call Service, Fixed Monthly Cart Rental Fee $1.05 Recycling Only Container Services Weekly pick-ups One Two Three Four Five First Container $ Each Additional Container $ $ $ On Call Recycling Only Container Services Cost Per Stop On-Call Service, Cost Per Stop, First Container $ On-Call Service, Cost Per Stop, Each Additional Container $ On-Call Service, Fixed Monthly Container Rental Fee $11.00 The collector shall furnish the container. $ $ $ $ $ $ RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

13 XIII. INFECTIOUS WASTE a. Boxes and Tubs Size Rate gallon incinerate box or gallon tub First Box/Tub Per Stop $34.60 Second to Fifth Box/Tub Per Stop $32.42 Sixth or more Boxes/Tub Per Stop $ gallon tub First Tub Per Stop $36.10 Second to Fifth Tub Per Stop $33.92 Sixth or more Tubs Per Stop $29.48 Price includes box, liner, pick-up and disposal. b. Sharps Containers Size Rates Disposal Charge 4 quart container $ quart container $15.60 Customer brings container to designated hauler when ready for disposal. XIV. MISCELLANEOUS SERVICE FEES a. Tires Auto/Truck Tire (12-18 ) off the rim: Auto/Truck Tire (12-18 ) on the rim: Tires Larger than 18 $4.00 $6.00 Actual Disposal Cost b. Appliances & Bulky Items Appliances without refrigerant Collection by regular garbage truck $7.50 Appliances with refrigerant $5.00 plus Metro tip fee Bulky Items other than appliances $7.50 Special collection of first item $26.00 $26.00 plus Metro tip fee $26.00 plus estimated Metro tip fee 10 RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

14 Appliances without refrigerant Appliances with refrigerant Bulky Items other than appliances Special collection if two hauler employees are required $40.00 $40.00 plus Metro tip fee $40.00 plus estimated Metro tip fee Special collection of each additional item $10.00 c. Call Back Fee $15.00 d. Reinstatement Fee $15.00 $10.00 plus Metro tip fee $10.00 plus estimated Metro tip fee Fee may be charged for reinstatement if service has been discontinued. e. Late Payment Service Charge 1.5% per month. 18% per annum Charges may apply if payment not received by due date. f. Replacement of Curby Market Price XV. ADDITIONAL SERVICE If a need for a type of service arises that is not now foreseen or specifically covered by this rate schedule, then the charge for such service shall be: a. Uniform and non-discriminatory between customers of a collector; b. Commensurate with the rates generally charged in the Portland Metropolitan Area; and c. Subject to approval by the City of Gresham. Section 2. Section 3. The fees in this resolution are not subject to indexing. Resolution No is hereby repealed. Section4. This resolution shall be effective on September 1, RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT

15 Yes: No: Absent: Abstain: Passed by the Gresham City Council on. Erik Kvarsten City Manager Shane T. Bemis Mayor Approved as to Form: David R. Ris City Attorney 12 RESOLUTION NO Y:\CAO\Resolutions\RES3211 6/22/15\PT