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HomeMy WebLinkAbout2011-10-11 Packet - SpecialCITY OF UKIAH CITY COUNCIL AGENDA Special Meeting Ukiah Valley Conference Center "Cabernet Room" 200 S. School Street Ukiah, CA 95482 October 11, 2011 5:00 PM SOLID WASTE WORKSHOP 1. ROLL CALL 2. PRESENTATION a. Report On Progressive Steps Towards Long-Term Planning: Solid Waste Disposal Services b. Discussion And Possible Action To Provide Notice And Conduct A Hearing On Proposed Curbside Waste Collection Fee Increases Pursuant To Proposition 218 And Division 4, Chapter 6, Article 1 Of The Ukiah City Code, Commencing With Section 3950 3. PUBLIC COMMENTS 4. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 7:30 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting set forth on this agenda. Dated this 6th day of October, 2011 JoAnne M. Currie, City Clerk c:-tcJ taJ ~.rrc~r~.f~ ITEM NO.: 2a MEETING DATE: AGENDA SUMMARY REPORT 10/11/11 SUBJECT: REPORT ON PROGRESSIVE STEPS TOWARDS LONG-TERM PLANNING: SOLID WASTE DISPOSAL SERVICES Background: Over the course of the last couple of years, the City of Ukiah has been engaged in planning for long-term, cost effective and efficient services for its residents with regard to solid waste disposal. The industry that supports solid waste disposal is subject to rapid change and will remain so within the foreseeable future. Factors impacting this service include technological changes, the current economic climate, environmental protection concerns, sustainability, and regulatory requirements. These factors affect how the service is delivered, what it costs, and how it will need to adapt in the future. The City has been engaged with its franchise hauler, Ukiah Waste Solutions/Solid Waste Systems in a joint effort to assure that services for Ukiah residents and businesses are cost effective, efficient and environmentally sound, for now and into the future. Discussion: Attached is a list of activities and discussions regarding the subject of solid waste that have developed over the last two years between the City and its solid waste service provider. These various discussions and events have led to proposed new agreements with the franchise holder. Those proposed agreements will be brought forward in the near future for the City Council's consideration. The agreements allow for current services to be sustained, but also provides for future adaptation that may be necessary due to rapid changes in the solid waste industry. Fiscal Impact: Budgeted FY 10/11 1-1 New Appropriation Not Applicable Budget Amendment Required ❑ Fx-l Recommended Action(s): Discuss and receive report. Alternative Council Option(s): N/A Citizens advised: N/A Requested by: N/A Prepared by: Jane Chambers, City Manager Coordinated with: Tim Eriksen, Director of Public Works, and Gordon Elton, Director of Finance Attachments: 1. Background Summary of Solid Waste Disposal and Planning Approved: Ja~hambers, City Manager Background Summary Discussions Regarding Solid Waste Disposal and Planning, City of Ukiah and Ukiah Waste Solutions/Solid Waste Systems Feb- March 2010-Ad/Hoc, Staff, and Solid Waste Systems looked at a number of issues, including adjustment of transfer station rates in line with actual current costs, purchase of transfer station option, purchasing landfill, a feasibility study to reopen landfill (to be conducted by Solid Waste Systems at company expense), extension of franchise agreements to 20-year term to reflect landfill life, and review and re-draft of existing agreements by 9/1/2010. As a part of these discussions, Solid Waste Systems submitted proposal to City regarding purchase of landfill and transfer station option. March 17, 2010 - City Council advised of discussions regarding potential reopening of landfill and purchase of Transfer Station option. Council directed staff to further investigate the matter and commence negotiations with Solid Waste Systems (Item 11d). July 7, 2010 -City Manager reported to the City Council on the status of landfill, long term disposal solutions, transfer station rate adjustment and need to draft new, modern agreements (Item 11a). July- Nov, 2010 - Staff and company representatives meet to discuss the Rate review of transfer station, adoption of new rates, and discussions about alternative technologies for handling solid waste in the future. Oct. 4, 2010 - City of Ukiah Ad Hoc Committee met to discuss disposal options including Eastlake Landfill, plan for contract revisions. Michael Brown, a technical advisor to Solid Waste Systems, presented Long-Term Solid Waste Management Plan to committee members (no cost to ratepayer or City for the study). Nov. 3, 2010 - Michael Brown presented abbreviated version of the Long-Term Solid Waste Management Plan to City Council members and public. Nov, 2010 - Preliminary investigation of Ukiah landfill begun. Dec, 2010-April 2011- Revised franchise agreements submitted to City for staff review. City staffs ability to begin review of the draft agreements delayed because of time demands necessary to address immediate proposed Redevelopment law changes, and Bonding efforts necessary to save several significant redevelopment projects, coupled with on-going financial crisis demands and budget development. May, 2011-Company secured 5-year agreement with County of Lake to use Eastlake Landfill located in Clearlake for disposal of Ukiah solid waste beginning January 2012. June - Sep., 2011-Company's intention to purchase property formerly known as the Thomas pear sheds to consolidate recycling processing operations, establish a green waste composting facility and a pilot commercial food waste composting program. Solid Waste intends to establish the site as a one- stop recycling facility will reduce road miles traveled, fuel, emissions, will move outdoor operations indoors to improve storm water management, will be the first indoor composting operation in Northern California, will create green jobs and will provide the infrastructure for future expansion of diversion programs. (No cost to the ratepayer or City for this facility). June-Oct., 2011- Attorney, staff, and Solid Waste Systems continued technical review, discussion related to proposed new agreements. ITEM NO. 2b ct~t, 41kaFi DATE: October 11, 2011 AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION TO PROVIDE NOTICE AND CONDUCT A HEARING ON PROPOSED CURBSIDE WASTE COLLECTION FEE INCREASES PURSUANT TO PROPOSITION 218 AND DIVISION 4, CHAPTER 6, ARTICLE 1 OF THE UKIAH CITY CODE, COMMENCING WITH SECTION 3950 Overview: The City's franchised waste hauler, Ukiah Waste Solutions, Inc. ("UWS"), collects garbage and curbside recyclables within the City. The City is negotiating a new contract with UWS. There was a need for a new contract due to a number of factors affecting the business model and services being provided by UWS. The proposed contract requires a base line be set for services which will result in slightly higher rates for waste collection which reflect the actual costs of providing that service. Under the proposed contract, the service rates specified in the Contract must be adopted in accordance with the notice and public hearing requirements in Sections 3950-3957 of the Ukiah City Code ("UCC") and Article XIII.D of the California Constitution and Government Code Sections 53750 et seq. (collectively, "Proposition 218'x. As a result, the City Council is required to conduct a rate hearing to determine whether the rate increase in the proposed contract will fairly compensate UWS for the cost of collecting garbage and recyclables from within the City. The term of the existing contract with UWS expires on December 31, 2016. The proposed contract will have a new fifteen (15) year term, commencing on January 1, 2012, and continuing until December 31, 2026. The proposed contract will establish a base rate for collection services, commencing on January 1, 2012, that is intended to reflect the actual Continued on page 2 RECOMMENDED ACTION: 1) Set Wednesday, December 7, 2012 as the date for the Public Hearing to consider adoption of the curbside garbage and recycling collection rates 2) Direct staff to mail the Prop 218 notice, based on the proposed rate schedule, to the appropriate customers ALTERNATIVE COUNCIL POLICY OPTION: Identify and adopt alternate rate adjustments or alternate public hearing dates Requested by: Ukiah Waste Solutions Inc. Prepared by: Gordon Elton, Finance Director, Ian Roth, Assistant Finance Director Coordinated with: Council Solid Waste Committee; Jane Chambers, City Manager; Emmett Jones, Consultant, Ukiah Waste Solutions Inc. staff Attachments: 1) Prop 218 Notice; 2) Proposed Rate Schedule; 3) Rate comparison with surrounding areas Approved: 6k~ J?ne Chambers, City Manager ITEM NO: 2b Meeting Date: October 11, 2011 costs incurred. That base rate will increase automatically each year thereafter based on increases in the Consumer Price Index and a Fuel Cost Index. Transfer Station Gate Fees charged by Solid Waste Systems, Inc. ("SWS"), a company under common ownership with UWS; fees paid to facilities that process green waste and food waste, including Pacific Recycling; and governmental fees, become pass-through costs. Any increase in those costs will automatically result in an increase in the collection rates charged in the City. The combined rates will be reviewed every five years under the Proposition 218 procedures. The City conducts the rate review pursuant to Ukiah City Code ("UCC") Sections 3950- 3957, which requires a notice to be published in the newspaper 10 days prior to a scheduled hearing before the City Council. Those City Code sections also require a City Manager's Report containing information about the proposed rate change to be available to the public for 10 days before the hearing. Additionally, the charges for garbage service in the City may be a "property-related fee," subject to the notice and hearing requirements in Proposition 218. To avoid any question about the procedures used to increase garbage rates in the City, it has elected to follow these procedures, in addition to the procedures in the Ukiah City Code, when considering a rate increase for garbage collection. Proposition 218 requires mailing a notice to customers at least 45 days prior to the date of the public hearing. This notice must identify the proposed rate changes and describe the process customers must follow if they wish to object to the rate change. One of the purposes of the notice is to establish the maximum rates the City Council may consider adopting at the public hearing. The Council may establish rates lower than the rates identified in the notice. The notice proposed by City staff is included as Attachment 1. The notice will be translated into Spanish and both the English and Spanish version will be mailed to the property owners and customers. Background: The provisions of the City's franchise agreement with UWS, for the collection, transportation and disposal of garbage and the recycling of recyclable materials within the City limits of Ukiah requires that in the event that a new contract is negotiated, the City Council shall conduct a rate hearing pursuant to UCC Sections 3950-3957 to determine the garbage collection and recycling rates, taking into consideration the annual audits of the contractor's operations and all other factors deemed relevant by the City Council. The fee schedule, previously adopted, utilized the gallons per week approach to determine the fee, which provides a simple method for computing a customer's cost. The size of the container(s) times the number of containers times the number of pickups per week equals the number of gallons per week. The total gallons per week times the rate per gallon for the calculated quantity equals the monthly fee. Container sizes are: 10 gallons, 20 gallons, 32 gallons, 68 gallons, and 95 gallons. Multiple containers are allowed for commercial customers needing more than 95 gallons per pickup. Under special circumstances, customers requiring multiple smaller containers are allowed. The basic concept of promoting recycling efforts by reducing the cost for customers who dispose of less garbage is retained in the proposed fee schedule. Page 2 of 4 ITEM NO: 2b Meeting Date: October 11, 2011 Discussion: To evaluate the fee increase requested by UWS for calendar year 2012, the City Finance Director, the City Manager, the Assistant Finance Director, and Emmett Jones, a CPA and consultant with experience in waste collection accounting, met with UWS staff, reviewed the request and submitted a recommendation to the Solid Waste Ad Hoc Committee, consisting of Councilmembers Thomas and Landis. Initially, UWS requested a 9.05% increase in the curbside collection rates to offset the requested cost adjustment at the transfer station which is primarily needed due to the increase in fuel costs and disposal fees (the cost to transport and dispose of waste at a solid waste landfill), CPI, and to set an accurate base rate for future rate reviews and adjustments. Staff requested additional information from UWS representatives to understand the operating costs of the collection company. Staff performed an analysis of the request and prepared a revised calculation based on the revised proposal for transfer station costs and revisions to the cost assumptions. The revised increase of 7.12% was presented to the Solid Waste Ad Hoc Committee at the meeting on October 6th. The proposed 2012 adjusted rate schedule is included as Attachment 2. After the proposed rate increase, the rates for garbage service in Ukiah remain significantly lower (at least 10%) than in Willits, Lakeport, Fort Bragg, and the surrounding unincorporated area of Mendocino County (Attachment 3). The calculation for the currently proposed rate increase was developed for the period beginning January 2012. The Consumer Price Index (CPI) and Cost of Fuel Index (COFI) based increases included in the franchise agreement will apply for January 2013, January 2014, January 2015, and January 2016. These CPI/COFI based increases are also identified in the Proposition 218 notifications. Any rate adjustment in 2017 will be considered at a rate hearing in 2016. Rate increases based on pass-through costs, as defined in the proposed contract, may also occur in 2013, 2014, 2015 and 2016. "Pass Through Costs" means Disposal Costs, Processing Costs and Regulatory Costs. The Disposal Cost is the gate fee at the Ukiah Transfer Station currently $74.50 per ton and projected to increase to $78.70 per ton, effective January 1, 2012. Processing Costs are currently $30/ton charged by Pacific Recycling Solutions, a company under common ownership with UWS and Cold Creek Compost. Regulatory Costs are the 15% Franchise Fee, the City's 3% billing fee, the City's $10,000 per year commercial oversight fee and the City's $60,000 per year landfill closure fee. Any future increase in those fees before the five year rate review in 2017 would be automatically passed through to the curbside collection rate, effective when UWS is first required to pay the higher fee. Page 3 of 4 ITEM NO: 2b Meeting Date: October 11, 2011 Sample of proposed monthly Curbside Service rates * Current Proposed Increase % Minimum fee 4.41 4.72 0.31 7.03 10 gallon week) service 4.41 4.72 0.31 7.03 20 gallon week) service 9.26 9.92 0.66 7.13 32 gallon week) service 16.64 17.82 1.18 7.09 One and bin week) service 110.07 117.91 7.84 7.12 One and a half and bin week) service 130.08 139.34 9.26 7.12 Per and rate for larger bins 86.72 92.89 6.17 7.11 * Pack-out and Remote area service have higher rates (see attached schedule for details Approximately 88.5% of the residential garbage customers utilize a 32 gallon or smaller container. Therefore, the majority of customers will experience an increase of $1.18 per month or less. This equates to less than four cents (44) per day. The increase for a customer with the 10 gallon weekly service is a penny per day. Staff recommends the Council approve the proposed rate schedule and distribution of the Proposition 218 notice, and schedule the public hearing on the proposed garbage collection rates and fees for Wednesday, December 7, 2011. Page 4 of 4 Attachment #I City of Ukiah NOTICE OF PROPOSED INCREASE IN RATES FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICE NOTICE IS HEREBY GIVEN that the City of Ukiah ("City") proposes to increase solid waste collection and disposal (garbage) rates applicable to all parcels in the City of Ukiah, including the parcel for which you are shown as the property owner of record based on the County of Mendocino 2010/2011 Secured Tax Roll, and/or at which you are shown as the customer billed for garbage service. If adopted, the rate increases will be reflected on utility bills dated on or after January 1, 2012. NOTICE IS FURTHER GIVEN that on December 7, 2011, at 6:15 p.m. or as soon thereafter as the matter may be heard, at 300 Seminary Avenue, Ukiah, California 95482, in the City Council Chambers, the City Council will conduct a public hearing on the proposed rate increase. At the public hearing, the City Council will consider all written protests against the proposed fee or charge, and all other comments submitted in writing prior to the hearing or expressed during the hearing. If written protests against the proposed fee or charge are presented by a majority of owners, including renters, of the identified parcels, the City will not impose the fee or charge. The City will consider only one protest per parcel, even if it receives protests from more than one owner or tenant of that parcel. If you want to file a written protest, prior to the hearing, you must submit the protest to the City Clerk at the Ukiah Civic Center, 300 Seminary Ave. Ukiah CA 95482. You may also submit a written protest at the hearing. To be considered, the written protest must include your name, the address or Mendocino County Assessor's parcel number of the parcel you own or rent, a representation that you are the legal owner of the parcel or that you are a lawful renter of the property who pays the garbage bill, a statement that you protest the proposed rate increase, and your signature. The City reserves the right to verify whether any person filing a protest is an owner or a renter legally obligated to pay the fee. To assist with this verification, the City requests inclusion of the applicable utility account number on the protest. The Amount of the Fee Imposed on Each Parcel: The proposed rate increase as of January 2012 is 7.12%. The increase for subsequent years, including January 2013, January 2014, January 2015, and January 2016, will be based partially on the percentage change in the Consumer Price Index, All Urban Consumers, U.S. City Average ("CPI") over the previous year, partially on the Energy Information Administration Petroleum & Other Liquids index, partially on any changes in transfer station rates, and partially on changes in regulatory fee changes, in accordance with the Contract for Collection, Transportation and Disposal of Garbage, Refuse and Rubbish and Recycling of Recyclable Materials from within the City of Ukiah, ("Waste Collection Contract"). After the January 2012 rate increase, the City Council may conduct a rate hearing in accordance with the Ukiah City Code and California Constitution Article XIII.D.6, and make further adjustments in the rate. In the absence of a subsequent rate hearing, the rates will automatically increase each year in accordance with the Waste Collection Contract. The City Council may reduce the amount of the annual increase by conducting a rate hearing in accordance with the Ukiah City Code. The following table indicates the existing and proposed monthly solid waste service rates for residential and commercial service to each parcel in the City of Ukiah: Residential Service Current January 2012 Current January 2012 Current January 2012 Service Level Curb service Pack-out service Remote Service No service $ 4.41 $ 4.72 $ 6.80 $ 7.28 $ 13.60 $ 14.56 1-10 gal ]on service 4.41 4.72 6.80 7.28 13.60 14.56 11-20 gallon service 9.26 9.92 11.62 12.45 18.42 19.73 21-32 gallon service 16.64 17.82 20.38 21.83 27.18 29.11 33-68 gallon service 39.30 42.10 47.87 51.28 54.67 58.56 69-95 gallon service 55.39 59.33 69.16 74.08 75.96 81.36 96+gallon service $.644/gal $.690/gal $.728/gal $.780/gal $.728/gal * $.780/gal * Overstuffed can/extra stop 5.91 6.33 6.80 7.28 13.60 14.56 1 yard bin $ 110.07 $ 117.91 N/A N/A N/A N/A 1.5 yard bin 130.08 139.34 N/A N/A N/A N/A Larger bins at per and rate 86.72 92.89 N/A N/A N/A N/A * plus remote service fee of $6.80 which is changing to $7.28 Miscellaneous and Special Services will also increase by 7.12% The Reason for and Basis Upon Which the Fee Increase was Calculated: The proposed rates are calculated based on the Waste Collection Contract with the City's franchised waste hauler, which is a private company. Under that agreement, rates are adjusted as follows. Unless altered by the City Council at a rate hearing, which may be held once every five years, rates are automatically adjusted by the percentage change in the CPI from the previous year*; by the change in the EIA fuel index; and by changes in disposal feed or regulatory and oversight fees. At the optional rate hearing, the City Council may consider any financial information considered relevant by the City Council, to determine whether the rates fully compensate the franchised waste hauler for the cost of providing the service. If the rates for the period commencing January 2012 were adjusted only by the CPI, the rates would increase by 3.56%. The higher proposed rate increase was calculated by carefully evaluating the changes in fuel costs and transfer station costs at the Taylor Drive Transfer Station for the period ending December 31, 2010. The proposed increase represents the cost of the increased gate fee, the increase cost of fuel, and a CPI adjustment for other operating costs. * U.S. City Average Consumer Price Index (CPI-U) from June to June. Attachment 2, page 1 Ukiah Waste Solutions, Inc. NEW 2012 GARBAGE COLLECTION RATE ADJUSTMENTS SUMMARY OF RATE ADJUSTMENT FOR STANDARD SERVICES Effective YEAR 2012 Percentage Total Monthly Rate Per Service Level Current Adjusted 2012 Adjustment Adjustment Gallon / Yard Curbside Service No Service $ 4.41 $ 4.72 7.03% $ .31 $ 0.472 10 gallon can rate $ 4.41 $ 4.72 7.03% $ .31 $ 0.472 20 gallon can rate $ 9.26 $ 9.92 7.13% $ .66 $ 0.496 32 gallon can rate $ 16.64 $ 17.82 7.09% $ 1.18 $ 0.557 68 gallon can rate $ 39.30 $ 42.10 7.12% $ 2.80 $ 0.619 95 gallon can rate $ 55.39 $ 59.33 7.11% $ 3.94 $ 0.625 Other combinations - rate per gallon $ 0.644 $ 0.690 7.14% $ .046 $ 0.690 Overstuffed can charge/Extra Stop $ 5.91 $ 6.33 7.11% $ .42 n/a 1 yard bin rate $ 110.07 $ 117.91 7.12% $ 7.84 $ 117.91 1.5 yard bin rate $ 130.08 $ 139.34 7.12% $ 9.26 $ 92.89 2 yard bin rate $ 173.44 $ 185.79 7.12% $ 12.35 $ 92.90 3 yard bin $ 260.16 $ 278.68 7.12% $ 18.52 $ 92.89 4 yard bin $ 346.88 $ 371.58 7.12% $ 24.70 $ 92.90 6 yard bin $ 520.32 $ 557.37 7.12% $ 37.05 $ 92.90 No Service $ 6.80 $ 7.28 7.06% $ .48 $ 0.728 10 gallon can rate $ 6.80 $ 7.28 7.06% $ .48 $ 0.728 20 gallon can rate $ 11.62 $ 12.45 7.14% $ .83 $ 0.623 32 gallon can rate $ 20.38 $ 21.83 7.11% $ 1.45 $ 0.682 68 gallon can rate $ 47.87 $ 51.28 7.12% $ 3.41 $ 0.754 95 gallon can rate $ 69.16 $ 74.08 7.11% $ 4.92 $ 0.780 Other combinations - rate per gallon $ 0.73 $ 0.78 7.14% $ .05 $ 0.780 Overstuffed can charge/Extra Stop $ 6.80 $ 7.28 7.06% $ .48 n/a Pack out service is limited to the elderly and disabled who apply directly through Ukiah Waste Solutions at 707-234-6400 Remote Area Service Add to the Packout Service rate. $ 6.80 $ 7.28 7.06% $ .48 N/A In areas with limited access, an additional fee is charged to fund the costs of special equipment and special handling necessary to provide garbage pickup services. This fee is in addition to the "Packout Service" fee listed in this schedule. Attachment 2, page 2 Ukiah Waste Solutions, Inc. 2012 Rate Schedule RESIDENTIAL / COMMERCIAL Residential Carts No Service 1- 10 11- 20 21 - 32 33 - 68 69 - 95 Gallons 2012 Rates Fee lx/WK lx/WK lx/WK 1x/WK Ix/WK Roadside 4.72 4.72 9.92 17.82 42.10 59.33 Pack Out* 7.28 7.28 12.45 21.83 51.28 74.08 Remote** 14.56 14.56 19.73 29.11 58.56 81.36 * Pack Out service is limited to the elderly and disabled who apply directly through Ukiah Waste Solutions @ 707-234-6400. The additional charges of Remote service may be required for certain areas with difficult access. Commercial Carts 2012 Rates 1- 10 11- 20 21- 32 33 - 68 69 - 95 Gallon 1 Can - 1x/WK 4.91 10.28 18.50 43.72 61.62 1 Can - 2x/WK 41.12 97.33 136.96 1 Can - 3x/WK 68.70 149.24 208.48 2 Cans - lx/WK 41.12 97.33 136.96 Commercial / Residential Bins Yards Number of pick-ups per week Extra 2012 Rates 1x/WK 2x/WK 3x/WK 4x/WK 5x/WK 6x/WK Pick-up 1.0 117.91 0.00 0.00 0.00 0.00 0.00 27.23 1.5 139.34 278.68 418.02 557.36 696.70 836.04 32.18 2.0 185.79 371.58 557.37 743.16 928.95 1,114.74 42.91 3.0 278.68 557.36 836.04 1,114.72 1,393.40 1,672.08 64.36 4.0 371.58 743.16 1,114.74 1,486.32 1,857.90 2,229.48 85.82 6.0 557.37 1,114.74 1,672.11 2,229.48 2,786.85 3,344.22 128.72 Extra p/u calculated at 1/wk divided by 4.33 Clean-Up/Roll-off Bins and Boxes New Rate 2012 3.0 Yd 3 day rental 96.41 includes tip fee 15.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee 20.0 Yd 7 day rental 218.46 Plus $78.70 perton tip fee 30.0 Yd 7 day rental 218.46 Plus $78.70 per ton tip fee Compactors 218.46 Plus $78.70 perton tip fee Misc Charges New Rate 2012 Bulky Items (appliances, Lg Tires, Furniture etc..) 24.25 Plus tip fee Tires - each - (Automotive or motorcycle) 5.11 Damaged Cart Replacement 66.00 Additional Green Waste or R/C Cart 6.50 Excess Residential Garbage/Extra Trip 6.33 Excess Commercial Garbage/Extra Trip 11.82 Compactor Cleaning 284.46 Container Cleaning 102.41 Locking bin, one-time setup fee 32.43 Plus Materials Replacement Key 11.38 Contamination Fee 32.48 Returned Check Fee 35.00 Roll Off or Bin Extra Day Charge 11.82 Exchange Cart Size 24.36 Attachment #3 Area Monthly Rate Comparison September 2011 Hauler Rates 20 gal / 1x 32 gal / 1x 2yd/1x UWs UWs WM Lakeport sWOW Fort Braes sWOW Current Proposed Inland Disposal North City of City of Mendocino City of City of City of Mendocino Ukiah Ukiah County Lakeport Willits Fort Bragg County $9.26 $9.92 N/A N/A $11.75 N/A $31.24 $16.64 $17.82 $20.37 $19.68 $20.78 $28.22 $38.17 $173.44 $185.79 $246.81 $253.24 $242.23 $297.90 $324.02 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 Comparison of 20 Gallon and 32 Gallon Services in the Region 20 gal / 1x 32 gal / 1x ■ Current City of Ukiah o Proposed City of Ukiah i j Inland Mendocino County ■ City of Lakeport ■ City of Willits City of Fort Bragg in North Mendocino County UWS = Ukiah Waste Solutions, Inc. WM = Waste Management SWOW = Solid Waste of Willits Attachment # 1 City of Ukiah NOTICE OF PROPOSED INCREASE IN RATES FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICE NOTICE IS HEREBY GIVEN that the City of Ukiah ("City") proposes to increase solid waste collection and disposal (garbage) rates applicable to all parcels in the City of Ukiah, including the parcel for which you are shown as the property owner of record based on the County of Mendocino 2010/2011 Secured Tax Roll, and/or at which you are shown as the customer billed for garbage service. If adopted, the rate increases will be reflected on utility bills dated on or after January 1, 2012. NOTICE IS FURTHER GIVEN that on December 7, 2011, at 6:15 p.m. or as soon thereafter as the matter may be heard, at 300 Seminary Avenue, Ukiah, California 95482, in the City Council Chambers, the City Council will conduct a public hearing on the proposed rate increase. At the public hearing, the City Council will consider all written protests against the proposed fee or charge, and all other comments submitted in writing prior to the hearing or expressed during the hearing. If written protests against the proposed fee or charge are presented by a majority of owners, including renters, of the identified parcels, the City will not impose the fee or charge. The City will consider only one protest per parcel, even if it receives protests from more than one owner or tenant of that parcel. If you want to file a written protest, prior to the hearing, you must submit the protest to the City Clerk at the Ukiah Civic Center, 300 Seminary Ave. Ukiah CA 95482. You may also submit a written protest at the hearing. To be considered, the written protest must include your name, the address or Mendocino County Assessor's parcel number of the parcel you own or rent, a representation that you are the legal owner of the parcel or that you are a lawful renter of the property who pays the garbage bill, a statement that you protest the proposed rate increase, and your signature. The City reserves the right to verify whether any person filing a protest is an owner or a renter legally obligated to pay the fee. To assist with this verification, the City requests inclusion of the applicable utility account number on the protest. The Amount of the Fee Imposed on Each Parcel: The proposed rate increase as of January 2012 is 7.12%. The increase for subsequent years, including January 2013, January 2014, January 2015, and January 2016, will be based partially on the percentage change in the Consumer Price Index, All Urban Consumers, U.S. City Average ("CPI") over the previous year, partially on the Energy Information Administration Petroleum & Other Liquids index, partially on any changes in transfer station rates, and partially on changes in regulatory fee changes, in accordance with the Contract for Collection, Transportation and Disposal of Garbage, Refuse and Rubbish and Recycling of Recyclable Materials from within the City of Ukiah, ("Waste Collection Contract"). After the January 2012 rate increase, the City Council may conduct a rate hearing in accordance with the Ukiah City Code and California Constitution Article XIII.D.6, and make further adjustments in the rate. In the absence of a subsequent rate hearing, the rates will automatically increase each year in accordance with the Waste Collection Contract. The City Council may reduce the amount of the annual increase by conducting a rate hearing in accordance with the Ukiah City Code. The following table indicates the existing and proposed monthly solid waste service rates for residential and commercial service to each parcel in the City of Ukiah: Residential Service Current January 2012 Current January 2012 Current January 2012 Service Level Curb service Pack-out service Remote Service No service $ 4.41 $ 4.72 $ 6.80 $ 7.28 $ 1160 $ 14.56 1-10 gallon service 4.41 4.72 6.80 7.28 13.60 14.56 11-20 gallon service 9.26 9.92 11.62 12.45 18.42 19.73 21-32 gallon service 16.64 17.82 20.38 21.83 27.18 29.11 33-68 gallon service 39.30 42.10 47.87 51.28 54.67 58.56 69-95 gallon service 55.39 59.33 69.16 74.08 75.96 81.36 96 + gallon service $.644/gal $.690/gal $.728/gal $3 80/gal $.728/gal * $.780/ al * Overstuffed can/extra stop 5.91 6.33 6.80 7.28 13.60 14.56 1 yard bin $ 110.07 $ 117.91 N/A N/A N/A N/A 1.5 yard bin 130.08 139.34 N/A N/A N/A N/A Larger bins at per yard rate 86.72 92.89 N/A N/A N/A N/A plus remote service fee of $6.80 which is changing to $7.28 Miscellaneous and Special Services will also increase by 7.12% The Reason for and Basis Upon Which the Fee Increase was Calculated: The proposed rates are calculated based on the Waste Collection Contract with the City's franchised waste hauler, which is a private company. Under that agreement, rates are adjusted as follows. Unless altered by the City Council at a rate hearing, which may be held once every five years, rates are automatically adjusted by the percentage change in the CPI from the previous year*, by the change in the EIA fuel index; and by changes in disposal feed or regulatory and oversight fees. At the optional rate hearing, the City Council may consider any financial information considered relevant by the City Council, to determine whether the rates fully are fair to the rate payers and appropriately compensate the franchised waste hauler for the cost of providing the service. If the rates for the period commencing January 2012 were adjusted only by the CPI, the rates would increase by 3.56%. The higher proposed rate increase was calculated by carefully evaluating the changes in fuel costs and transfer station costs at the Taylor Drive Transfer Station for the period ending December 31, 2010. The proposed increase represents the cost of the increased gate fee, the increase cost of fuel, and a CPI adjustment for other operating costs. * U.S. City Average Consumer Price Index (CPI-U) from June to June.