The URL can be used to link to this page

Home My WebLink AboutStaff Report 313-10TO: FROM: DATE: HONORABLE CITY COUNCIL FINANCE COMMITTEE CITY MANAGER JULY 20, 2010 2F DEPARTMENT: PUBLIC WORKS CMR:313:10 REPORT TYPE: ACTION SUBJECT: BACKGROUND Continued Discussion on Refuse Rate Analysis, Funding Strategies and Adopting a Refuse Rate Increase and Amending the Utility Rate Schedules R-l, R-2, and R-3 At May 27, 2010 Finance Committee meeting, staff provided an update of information originally presented on April 6, 2010 (CMR:195:1O) on the status of the Refuse Fund and the need for a rate increase. On June 15, 2010, staff returned to Finance Committee (CMR:281:1O) with an update on the Refuse Fund, comparison of Palo Alto's refuse rates with those of other jurisdictions, further analysis of the impacts of Zero Waste services and the economy on revenue, and proposed reductions in expenses in the Refuse Fund. At the July 6,2010 Finance Committee meeting, (CMR:301:10) staff provided additional information on Palo Alto's solid waste system and services, rate and revenue modeling, and options to get the Refuse Fund to cost recovery through a combination of other revenue sources, rate increases, and expense reductions. In response to the Finance Committee's request on July 6, this report provides more refined recommendations as well as highlights the major advantages and disadvantages of the various proposals. DISCUSSION Based on feedback from the Finance Committee, staff evaluated the potential revenue sources and expense reductions presented on July 6, 2010 and have developed a more refined recommendation to close the $6.3 million shortfall for the Refuse Fund identified during the FY 2011 budget process. The following collection of options reduces expenditures and raises revenue sufficient to eliminate the $6.3 million gap for FY 2011, based on the assumption that all of the elements will be in effect by October 1, 201 o. Many of the items do require Council action, and, if approved by the Finance Committee, staff would bring them to Council in mid-September 2010. If the recommendation for expense reductions and rate increases are not approved, the Refuse Fund will need a loan from the General Fund to close the budget gap for FY 2011 to avoid impacting the City's landfill closure obligations. CMR:313:10 Page 1 ofll Some options presented could impact landfill rent. Any future need for rent for the landfill site would be at the direction of the City Council. Staff proposes to bring the issue to the full Council in September 2010 for direction. The following options are presented in three categories: 1. Changes in expenses or revenues that do not require Council action 2. Recommended changes in expenses and revenue sources requiring Council action 3. Additional program or service changes that are not recommended by staff. After a discussion of all three categories, staff presents a summary of the recommended elements and how it amends and balances the FY 2011 Refuse Fund Budget. 1. OPTIONS TO ENACT IMMEDIATELY: REQUIRE NO COUNCIL ACTION There are several actions staff has already implemented, or are in the process of implementing, to reduce the fiscal year shortfall. The following table summarizes these elements, which will generate $1.59 million towards the fund's shortfall. Revenue SourcelExpense Reduction Amount . One time or Ongoing Fee for clean soil $250,000 One-time' LATp'rent -last 3 years, and FY 2006* $420,000 One-time LATP rent -FY 2011 (112 ongoing) $120,000 Ongoing Green Waste contract expense reduction $800,000 One-time TOTAL $1.59 million *Half of the rent belongs to the General Fund, and would be treated as a temporary loan. Fee for dean soil. The Palo Alto Landfill is now collecting a fee to deposit clean soil at the landfill. The soil is needed to address maintenance of landfill contours, to fill in areas, and to cover the area as part of closure. This is soil that will be suitable as top cover for the future park when the landfill closes. An additional $250,000 in revenue will be generated by collecting the fee for FY 2011. Los Alto Treatment Plant (LATP) rent. The City purchased the site and it is owned jointly in equal shares by the General and Refuse Funds. Public Works, through· the Refuse Fund, purchased 50 percent of the total acreage. The Utilities Department has been using the site since FY 2005 for electric and gas fund project staging and paying a fixed rent of $120,000 per year. Since the property is owned in equal shares, the rent proceeds are split evenly between the General and Refuse Funds. However, rent was paid for only two of those years, 2005 and2007. Moving forward, Utilities will be paying the Refuse Fund $60,000 per year for rent of the site. Staff will charge the electric and gas funds $420,000 in FY 2010 to catch up for the last three years, and $120,000 will be paid in 2011. The total of $540,000 is proposed to be paid to the Refuse Fund with $240,000 being a short-term loan from the General Fund. The Enterprise Funds pay rent to the General Fund for the use of land on an annual basis for the various sites ·they utilize throughout the City, therefore, this is consistent with other rent charges. Reduction in FY 2011 budgeted expense for GreenWaste contract. The GreenWaste of Palo Alto contract, which constitutes almost 39 percent of the Refuse Fund's budget, divides CMR:313:10 Page 2 of 11 payments to the company into base compensation, a fixed amount paid every month, and variable compensation for services that are dependent on subscription, such as back/side yard collection, special events, and debris box services. This variable compensation is paid quarterly to Green Waste. The compensation was proposed by Green Waste, and was adopted as part of the budget for both FY 2010 and FY 2011. Based on additional review of a full year of actual FY 2010 payments for extra services, and the detailed customer data associated with them, the Budget Office and Public Works are adjusting the total expense of the GreenWaste contract from $14 million to $13.2 million. The decrease in expenses is estimated at $800,000 and is directly related to the lack of SUbscription by customers for construction and demolition (C&D) debris boxes. Timing of landfill payment. In 2007, Council established a comprehensive policy on landfill rent (CMR 104:07). As part of that policy, Council directed the Refuse Fund to begin paying rent to the General Fund on the closed, undeveloped areas of the landfill in addition to the active portions and that the landfill payments be amortized over time to avoid significant rate impacts. Under the rate smoothing schedule adopted by Council, the Refuse Fund makes annual rental payments in the amount of $4,288,747 through FY 2012 to the General Fund for use of approximately 100 acres. Under the current landfill rent payment schedule, the annual payments go down to $2,094,331 in FY 2013 through FY 2020, with a final payment of $881,851 in FY 2020. Since maintaining the commercial ban at the landfill may delay its closure, Council direction will be needed to determine what rent amount the Refuse Fund would pay for any additional full operation years. The current policy calls for full rent ending in FY 2012. Currently, the Refuse Fund makes monthly payments to the General Fund for the landfill rent. To assist with the Refuse Fund cash flow, payments for the first few months ofFY 2011 will not be made until a final decision is reached on any potential rate increase and/or loan from the General Fund. The transfer of remaining funds for rent can take place later in the fiscal year. 2. OPTIONS RECOMMENDED: REQUIRE COUNCIL ACTION With the implementation of the elements listed above, the remaining funding gap left is approximately $4.8 million. Staff is presenting a combination of expense reductions, increased landfill fees, and increased refuse rates that will address the remaining shortfall and align the solid waste system's revenue and expenses: Revenue SourcelExpense Reduction Amount One time or Ongoing Reduce landfill operations to 5 days/week $250,000 On-going Defer 2 CIP projects to 2012 $1,350,000 One-time 2011 Zero Waste Coordinator vacancy $122,624 One-time 2011 Zero Waste -outreach modification $300,000 One-time 2011 Landfill gas payment from RWQCP $350,000 On-going Increased landfill fees $230,000 On-going Rate Adjustment -Residential $500,000 Sunset after 24 months Rate Adjustment -Commercial $1,700,000 Sunset after 24 months TOTAL $4.9 million Reduce landfill operations to 5 days per week. Currently; the Palo Alto landfill is open for business seven days per week. By reducing landfill operations to five days per week, closing on CMR:313:10 Page 3 of 11 the two slowest days, Sunday and Monday, the Refuse Fund can reduce expenses by $250,000. Changes in the operation will require a modification to the State permit. Advantages: • Reduces expenses by $250,000 per year • Minimizes customer impact and tonnages entering the landfill • Maintains the commercial ban at the landfill • CIP projects can be deferred until 2012 • Preserves a footprint for potential future dry anaerobic digestion facility Disadvantages: • May require additional rent for use ofland beyond 2012 • Eliminates two staff positions -layoffs • Customers must adjust to the new schedule Defer two CIP projects until 2012. If the landfill ban on commercial material remains in place, two CIP projects slated for FY 2011 can be deferred until FY 2012. The first project is to prepare the LATP site as a transfer facility for city operations, which would, among other things, house drying beds to process wet material collected as part of City operations before being transferred and landfilled. This process currently takes place at the landfill and must be relocated before closure. This project is estimated to cost $750,000. Per Council direction, the second project is to prepare Phases II A&B of the landfill to be opened to the public. Postponing this activity would save $600,000 in FY 2011, but would require Council action to implement. Advantages: • Allows $1,350,000 in capital costs to be deferred until 2012, reducing the expense requirements for FY 2011, and smoothing the total Refuse Fund expenditures over a multi-year period. Disadvantages: • Phases II A&B are not open to the public until at least 2012 • Currently, no funding is identified for park improvements Zero Waste program changes. Per the Zero Waste Operational Plan, Public Works has increased the efforts of the Zero Waste group to develop programs, services, policies and outreach campaigns to help the city reach an interim goal of 77 percent diversion by 2012, and virtually no waste by 2021. Over the last year, staff has made great strides towards these goals. While official notification from CalRecycle will not be issued until later this fall, staff estimates that the City's diversion rate to be in the low 70s percent range. With a status quo approach, the city should be able to maintain this level of diversion with the one year deferral of programs and staffing, totaling $422,624. Through a one year deferral and re-prioritization of several outreach and education campaigns and services, the budget for Zero Waste efforts can be reduced by $300,000. This will defer a majority of the programs and campaigns designed for the year, including a campaign targeting residents and owners of apartment buildings, a project to establish a co-op for small businesses to purchase recycling and compostable containers, and an outreach campaign to educate the public CMR:313:10 Page 4 of 11 on extended producer responsibility and green purchasing. Additionally, the program has been operating with one unfilled position for the last several months, and given the budget constraints, staff proposes to leave the position vacant for FY 2011, for a salary and benefits savings of approximately $122,624. Advantages: • Reduces expenses by $422,624 Disadvantages: • One year deferral of the majority of zero waste programs and educational campaigns. Landfill gas payment from the Regional Water Quality Control Plant (RPWCP). Currently the RWQCP uses 125 million cubic feet of gas generated by the landfill to generate energy, primarily for the incinerators. Based on current Utilities Department's rates for natural gas, the energy is worth $350,000 in revenue. Staff proposes to initiate an inter-fund charge for the gas. Advantages: • Transfers $350,000 to Refuse Fund as revenue, annually Disadvantages: • Transfers expenses to wastewater fund Increase fees at the Palo Alto landfill. This revenue generator will increase all of the current Palo Alto landfill fees, but still keep them competitive with other facilities accepting solid waste, yard trimmings, and other materials in the mid-peninsula and south bay area. By increasing the gate fees for all materials, even with maintaining the commercial ban, the landfill will generate an additional $230,000 per year, while it remains open. The increase in rates does require modifying the Municipal Fee Schedule. Advantages: • Generates $230,000 in additional revenue, while still maintaining competitive fees Disadvantages: • Increases fees for existing customers Temporary rate increases for residential and commercial customers. In any combination of potential expense reductions and revenue generators, a modest rate increase for residential and commercial customers is still required to completely align revenues and expenses and eliminate the Refuse Fund shortfall in FY 2011. As described in CMR 301: 10, Public Works is embarking on a cost of service study that will result in a new rate structure proposal for the city. However, the results of this analysis will not be ready before midyear 2011, and will be brought to the Finance Committee for consideration as part of the FY 2012 budget process (see Attachment A for the timeline). Therefore, staff proposes a temporary increase in rates for residential and commercial customers that will last no longer than 24 months, or until a new rate structure is adopted by Council, whichever is sooner. In the event the new rate structure is not finalized within 24 months, staff recommends that the rates revert back to the current levels. This would CMR:313:10 Page 5 of 11 allow the short-term revenue increases needed to make the fund cost recovery, but not institutionalize the increases permanently. The complete proposed rate schedule is included as Attachment B. In the residential sector, services are not at cost recovery. This is largely due to an historic practice of Palo Alto and other cities to subsidize recycling and yard trimming services in order to encourage zero waste practices. More detailed analysis will take place as part of the cost of service study, but a moderate increase to begin aligning revenues with costs is warranted, and will help close the budget deficit. The 20 gallon, minican, rate, in particular, is a subsidized service level among the residential rates. While reducing the rate to $15 was consistent with the City's Zero Waste goals, and generated interest in recycling and waste reduction, it is not a sustainable rate. Staff proposes raising the minican rate from $15 to $20 per month. Changing this rate begins to realign the proportionality of this service level to the others available to residential customers. For the remaining residential customers, a 6 percent increase for FY 2011 is recommended. For the 32 gallon customer, a 6 percent increase is $1.86 per month, from $31.00 to $32.86. The total increase in residential rates is proposed to generate $500,000 in revenue. Additionally, while commercial rates in general are closer to cost recovery, the majority of the revenue shortfall for FY 2010 occurred in the· commercial lines of business resulting in a large commercial sector deficit. To assist in closing this gap, Staff is recommending a 9 percent increase for commercial customers to generate an additional $1,700,000 per year. For a common customer level, a 3 cubic yard bin serviced twice per week, the current monthly rate is $798.00. This will increase to $869.&2 if the rate proposal is adopted. Finally, the proposed rate structure reduces rates for commercial source separated debris boxes to make rhese rates more competitive with private haulers. Based on the City's municipal code, source separated recyclables in the commercial sector are allowed to be collected by any hauling company. Because the City'S rates for debris boxes have been historically more expensive than other private haulers, Green Waste and the City have been losing business to them. This change in source separated debris box rates makes the City's rates more competitive on the open market. Advantages: • Generates a significant amount of revenue to reduce the FY 2011 deficit • Is not permanent; in effect no longer than 24 months Disadvantages: • Enacts a rate increase on the City's customers • Does not assist with long term goal of re-establishing minimum Rate Stabilization Reserve level of 10 percent of revenue Finally, as mentioned at the July 6,2010 Finance Committee meeting (CMR 301:10), staffis in the process of finalizing a new rate and revenue forecasting model for the Refuse Fund. This model uses a combination of many variables to predict future revenue including industry standard service level migration estimates, actual trends in customer service levels and tonnage generation, and economic growth factors. The model allows sensitivity analysis on up to 100 variables, and as the City continues to use the model year to year, it will become more robust with the inclusion of actual data and trends from the new programs and services. CMR:313:1O Page~ of11 For FY 2011, without the rate increase, residential revenue is modeled to remain essentially flat, based on historical trends of new residential customers and the past widespread migration to the lower service levels. Commercial customer revenue is forecasted to grow approximately 3.5 percent without a rate increase, which is consistent. with estimates for growth in sales tax revenue, as included in the City's Long Range Financial Forecast and budgeted in the General Fund. 3. OPTIONS NOT RECOMMENDED Staff also evaluated other options to generate either additional revenue or cut expenses to the Refuse Fund, including closing the composting operation, the recycling center, and the entire landfill itself. Ultimately, due to policy direction, a consideration of the convenience to residents, and the avoidance of service reductions, Public Works is not recommending these options be implemented. Revenue Source/Expense Reduction Amount One time or Ongoing Reduce street sweeping -residential $250,000 Ongoing Close compost facility $150,000 Ongoing Lift commercial ban at landfill $500,000 Ongoing Close recycling center $300,000 Ongoing TOTAL $1.2 million Reduce street sweeping to biweekly service for residential streets. The proposal would reduct! street sweeping in the residential areas of the CitY from every week to biweekly. Sweeping in the commercial districts would remain weekly. The net savings to the City is estimated to be $250,000 per year. This savings comes primarily from the elimination of two positions and the need for one piece of equipment. While this is a common level of service in the bay area, there are concerns that modifications to the current street sweeping frequency may have impacts on stormwater quality and localized flooding potential in certain areas of the City. Advantages: • Cost savings of $250,000 Disadvantages: . • Reduces current level of service to City residents • Potential negative impacts to stormwater quality • Potential increase in localized flooding during rain season • Eliminates two positions -layoffs Close the composting facility. Given the City's long-term arrangement with the SMaRT Station in Sunnyvale (as described in CMR 301:10), yard trimmings currently delivered and processed at the Palo Alto facility can be accepted immediately at the SMaRT Station, and transferred to Z-Best in Gilroy for processing, for the net savings of $150,000 per year. While Public Works will require compost to finish the closure of the landfill, staff can produce and stockpile the needed material for up to two years before closing the facility. It would take approximately six months to produce the needed amount of compost. However, if landfill CMR:313:10 Page 7 of 11 closure is more than two years after the closure of compo sting operation, stockpiles could not be maintained. Advantages: • Cost savings of$150,000 • Use of SMaRT Station processing operation already paid for in contract Disadvantages: • Community's loss of local access to finished compost • Potential need to purchase compost to complete closure of landfill if no stockpiling • Would require staff to modify State permit Remove the ban on commercial material at the landfIll in FY 2011. If the ban accepting commercial solid waste were lifted, the landfill would generate approximately an additional $500,000 per year while it remains open. Staff would also explore ways to market the landfill to attract customers to the landfill to increase the revenue even more. Ending the ban would require Council action and hastens the closure of the landfill. Advantages: • Additional revenue of at least $500,000 • Completes filling the landfill quickly for closure and conversion to park • Reduces the expense of operations in future years, beginning in 2012 Disadvantages: • Fills space where a potential anaerobic digestion facility would be located • Eliminates option to delay CIP projects and the subsequent savings in 2011 Close the Recycling Center. The City currently houses a drop-off recycling center at the landfill, which must be relocated before the landfill closes. The City contracts with Green Waste of Palo Alto to staff the recycling center, and transport and process the materials. The SMaRT Station in Sunnyvale houses a recycling center, which accepts the same materials as Palo Alto's, and currently is open to all Palo Alto residents as part of our long term arrangement. The City would save approximately $300,000 per year by closing its facility. Realizing this savings would require amending the current contract with Green Waste of Palo Alto. The hauler could suggest additional changes to the contract if the City reopens negotiations. Advantages: • Cost savings of $300,000 • Use of services provided in SMaRT Station agreement Disadvantages: • Requires opening contract with Green Waste, which could result in their request to renegotiate compensation • City residents must either use curbside service or travel to Sunnyvale • In conflict with and would require modification to City'S comprehensive plan CMR:313:10 Page 8 of 11 Fill the landfill by end of FY 2011. Staff also evaluated several scenarios in which filling the landfill was accelerated so that closure could begin by the end of FY 2011. These options included using clean soil to fill the landfill, or diverting curbside garbage from the SMaRT Station to the Palo Alto landfill. Both scenarios would enable the landfill to be filled by the end of FY 2011. These scenarios do not reduce expenses in FY2011, but do allow significant reductions in operational expenses, approximately $1.5 million beginning in FY 2012, as closure begins. Additionally, filling the landfill by the end of the fiscal year impacts the potential siting of an anaerobic digestion facility. Filling the landfill with soil is not a viable option, primarily because it significantly affects the City's waste diversion, and places the City out of compliance with AB 939, which mandates 50 percent diversion. Because of the amount of soil that would be required to complete filling the landfill, the City's tonnage landfilled would quadruple in amount and reduce the City's currently estimated diversion from the low 70s percent range, to approximately 35 percent. The State has the ability to fine cities up to $10,000 per day for being out of compliance with AB 939. The other option to fill the landfill quickly, diverting from the SMaRT Station to the landfill all of the curbside garbage currently collected, would enable the City to close the landfill by the end of the fiscal year. This option, while filling the landfill within the year, would also impact the City'S diversion for the year slightly. Because all of the garbage taken to the SMaRT Station is sorted for recyclables before it is sent to the landfill (with a 20-25 percent recovery rate), the City would see a slight dip, potentially a 5 percent drop, in diversion for the year. A final option is to accept garbage from other communities.·· The Palo Alto landfill is restricted by its permit to accept only waste generated in Palo Alto. Additionally, the landfill permit in its current form does not allow the transfer of material. So the City would need to work with the State if modifications to the permit were desired to allow material from other communities as a means of generating additional income and filling the landfill more quickly. Advantages: • Fills the landfill quickly for closure and conversion to park • Reduces the expense of operations in future years, beginning in 2012 Disadvantages: • Fills space where a potential anaerobic digestion facility would be located • Eliminates option to delay CIP projects and the subsequent savings in 2011 • Diversion is impacted for FY 2011. In the case of using soil to fill the landfill, the City may be fined for being out of compliance with AB 939. • Staff would need to revise the State permit and municipal code SUMMARY RECOMMENDATION In conclusion, the staff recommendation includes all of the options presented in the first two categories described in detail above. The following table provides a summary overview of those proposals, and how they amend the FY 2011 budget to close the deficit. CMR:313:10 Page 9 of 11 Total Fund Revenues per Proposed Budget $29,895,824 Changes: One-time Ongoing 6% increase for residential 500,000 9% increase for commercial 1,700,000 Rent payment from Utilities for use of former Los Altos Treatment Plant site 240,000 60,000 Loan from General Fund 240,000 Landfill gate fee increases 230,000 Landfill soil fee 250,000 Landfill gas revenue from RWQCP 350,000 730,000 2,840,000 3,570,000 Total Fund Revenues-Amended $33,465,824 Revised # Total Fund Expenditures per Proposed Budget $36,889,554 Changes: One-time Ongoing Decrease in estimate for GreenWaste contract* (800,000) (797,178) Restore 0.1 FTE Engineering Tech III (0.9 FTE allocated to CIP sidewalk repair and replacement 10,883 Defer CIP RF-10003 Drying Beds, Material Storage and Transfer Area (750,000) Defer CIP RF-11001 Landfill Closure (600,000) Decrease in landfill operations (250,000) Freeze 1.0 FTE Zero Waste Coordinator for one year (122,624) Decrease in Zero Waste outreach (300,000) (2,572,624) (1,036,295) (3,608,919) Total Fund Expenditures-Amended $33,280,635 1 Change in Net Assets $~85, 189 1 RevIsed # *$797,178 decrease in expenses is an ongoing change that was inadvertently left out of the adopted FY 2011 budget NEXT STEPS The described solution is predicated on the enactment of all proposed changes by October 1, 2010. Additional measures and potential impacts to services and rates would have to be evaluated, if changes are implemented later in the fiscal year. This would include a potential loan from the General Fund to assist in closing the shortfall for FY 2011. The recommended refuse rate increase is subject to the notice and protest hearing procedures of Proposition 218. In the event that a refuse rate increase is approved, the City will conduct the CMR:313: 10 Page 10 of 11 refuse rate increase procedures in accordance with those requirements. Pursuant to Proposition 218, the City must provide written notice of any new or increased refuse utility fee to those subject to the proposed fee. A public hearing on the new or increased fee must be held not less than 45 days after mailing the written notice. If written protests against the proposed fee are presented by a majority ofthose subject to the fee, the City may not impose the fee. RESOURCE IMPACT Staff recommends that the Refuse Fund maintains a $6.1 million cash balance at all times to ensure State compliance with landfill closure funding requirements and that steps are taken to ensure a minimum Rate Stabilization Reserve of 10 percent of revenues is achieved to provide rate stability in the future. A General Fund loan of $300,000 (from LATP rental income) plus interest equal to the rate of return of the City's investment portfolio will be needed to ensure the Refuse Fund has the required reserves. In addition, midyear revisions to the Refuse Fund may be required depending on the actual experience of the expenditures and revenues. POLICY IMPLICATIONS Proposed changes in the use of solid waste facilities or implementation of zero waste programs may require revisions to the Baylands Master Plan, the Zero Waste Operational Plan, and municipal code. ENVIRONMENTAL REVIEW An increase in rates to meet financial reserve needs and operating expenses is not subject to California Environmental Quality Act (CEQA), pursuant to California Public Resources Code section 21080(b)(8) and Title 14 of the California Code of Regulations section 15273(a)(l) and (3). ATTACHMENTS Attachment A: Timeline for Cost of Service Study Attachment B: Refuse Fund Rate Schedules R-l, R-2, and R------- ~r . PREPARED BY: DEPARTMENT HEAD: Director of Public Works CITY MANAGER APPROVAL: CMR:313:10 Page 11 of 11 ATTACHMENT A Refuse Rate Cost of Service Study and Restructuring Timeline Date Activity/Action August 2, 2010 Notice to Proceed for Cost Service Study October 15, 2010 Results of study due from consultant Oct-December Staff review of consultant's study and analysis, and 2010 preparation of proposed new rate structure January-March Information and recommendations to Finance Committee for 2011 discussion and decision Mid-March 2011 Decision by Finance Committee By first week of Proposition 218 notice letters sent to customers April 2011 March-June 2011 Adjustments to SAP and GreenWaste's billing system to include proposed changes to rate structure End of May/early Rate Hearing by City Council June 2011 July 1, 2011 New rate structure goes into effect ATTACHMENT B DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R-l A. APPLICABILITY: This schedule applies to each occupied domestic dwelling as required by City ordinance, including separate single-family domestic dwelling and multi-unit dwellings (4 units or less). An occupied dwelling unit is defined as any home, apartment unit, cottage, flat or duplex unit, having kitchen, bath, and sleeping facilities, and to which gas or electric service is being rendered. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. C. TEMPORARY RATE DURATION: The refuse rates below are temporary, pending the completion of a comprehensive refuse rate study. These temporary refuse rates will be in effect for 24 months from the effective date, or until Council adopts a new rate structure, whichever is sooner. If Council does not adopt a new refuse rate structure within 24 months, the refuse rates below will revert back to the rates in effect on July 20, 2010. D. RATES: The refuse rates below include collection, processing and disposal of materials properly deposited in the number of refuse containers indicated below as well as collection and processing of recyclables and yard trimmings from special blue or green carts. The refuse rates below also fund household hazardous waste programs, waste diversion services, and street sweeping programs. Curbside Monthly Collection Cost * Number of Cans/Carts Mini-can/20-gallon cart ** 1 32-gal. can or 32-gal. cart*** 2 32-gal. cans or 1 64-gal. cart 3 32-gal. cans or 1 96-gal. cart 4 32-gal. cans or 2 64-gal. carts One 20.00 32.86 67.84 101.76 135.68 5 32-gal. cans or 1 64 + 1 96-gal. cart 169.60 6 32-gal. cans or 2 96-gal. carts 203.52 Collection Frequency Per Week Two 151.58 219.42 287.26 355.10 422.94 * ** *** Back/side yard collection available for an additional charge. Mini-can service cannot be combined with any other can service. Standard can service is one 32-gallon can or a 32-gallon cart. CITY OF PALO ALTO UTILITIES Issued by the City Council Three 235.32 337.08 438.84 540.60 642.36 Supersedes Sheet No.R-1-1 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-l-l DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R-1 E. SPECIAL ITEM CHARGES: 1. Stove/washer/dryer/water heater pick up * ...................................................................... 25.00 2. Freezer/refrigerator/air conditioner/garbage compactor pick up * .................................. 35.00 3. Upholstered furniture pick up (per unit) * ....................................................................... 15.00 4. Mattress pick up * ............................................................................................................ 15.00 5. Tire pick up (per tire, limit of 4 tires) * ........................................................................... 20.00 6. Pallet pick up * ................................................................................................................ 5.00 7. Microwave Oven pick up* ............................................................................................... 5.00 * "Surcharge special" fee applied when not collected under the Annual On-Call Community Clean up Program guidelines. F. SPECIAL LABOR CHARGES: 1. Return trip (next day service)............ ........ ............. .... ........... ... ...... .... ......... 24.00 2. Return trip (same day service) ............................................................. ....... 36.00 3. Urgent special (for service outside standard weekly collection; charged per cubic yard) 55.00 4. Miscellaneous 2 person service rate (waiting time) .................................................. 3.20/min 5. Surcharge special (one time pick up of large or non-standard items; or delivery of containers for special events) ............ .... ................................................................................. 77.00 6. Repair rate................................................................................................ 2.20/min + material 7. Extra can ......................................................................................................... 10.60 8. Back/side yard collection of garbage, recyclables & yard trimmings (monthly charge per residence) .............. .... ...... ............. .... ............... ..... ................................. 3.35 9. Hard to service area (monthly charge per premise)............................................. 14.42 A 'Hard to Service' area is one that has limited access, such as an area on hilly terrain, private streets with restricted access, or alleys. These areas require special equipment to service. A map of Hard to Service areas can be found on the City of Palo Alto website at www.cityofpaloalto.org or by contacting the Public Works Department. G. SPECIAL CART CHARGES: 1. 20-gallon cart rental (monthly) ................................................................. . 2. 32-gallon cart rental (monthly) .................................................................. . 3. 64-gallon cart rental (monthly) .................................................................. . 4. 96-gallon cart rental (monthly) .................................................................. . 5. 32-gallon cart purchase with 20-gallon insert ................................................ . 6. 32-gallon cart purchase ............................................................................ . 7. 64-gallon cart purchase ........................................................................... . 8. 96-gallon cart purchase ............................................................................ . 9. Cart wash ........................................................................................... . 10. Cart clean out (by hand) ........................................................................... . 11. Recycling cart contamination (entire cart dumped) ............................................ . 12. Cart exchange (one exchange allowed per cart each calendar year at no cost) ........... . 13. Monthly key service (customer provided lock) .............................................. . 14. Lock (Collector provided) ....................................................................... . 15. Cart lock installation ............................................................................... . CITY OF PALO ALTO UTILITIES Issued by the City Council 3.00 3.00 3.00 3.00 60.00 51.00 57.00 62.00 25.00 15.00 30.00 20.00 15.00 25.00 40.00 {End} Supersedes Sheet No.R-1-2 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-1-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 A. APPLICABILITY: This schedule applies to all occupied establishments other than domestic dwellings as required by City ordinance. An occupied establishment is defined as one to which gas or electric service is being rendered. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. C. TEMPORARY RATE DURATION: The refuse rates below are temporary, pending the completion of a comprehensive refuse rate study. These temporary refuse rates will be in effect for 24 months from the effective date, or until Council adopts, a new rate structure, whichever is sooner. If Council does not adopt a new refuse rate structure within 24 months, the refuse rates below will revert back to the rates in effect on July 20,2010. D. RATES: The refuse rates below include collection, processing and disposal of materials properly deposited in the number of refuse containers indicated below as well as collection and processing of recyclables from special blue carts. The refuse rates below also fund household hazardous waste programs, waste diversion services, and street sweeping programs. (1) Monthly Refuse Collection Cost Collection Frequency per Week Number of Cans/Carts One Two Three Four Five Six 1 32-gal. can or 32-gal. cart $33.79 2 32-gal. cans or 1 64-gal. cart* 69.76 155.87 241.98 328.09 414.20 500.31 3 32-gal. cans or 1 96-gal. cart 104.64 225.63 346.62 467.61 588.60 709.59 4 32-gal. cans or 2 64-gal. carts 139.52 295.39 451.26 607.13 763.00 918.87 5 32-gal. cans or 1 64 + 1 96-gal. cart 174.40 365.15 555.90 746.65 937.40 1,128.15 6 32-gal. cans or 2 96-gal. carts 209.28 434.91 660.54 886.17 1,111.80 1,337.43 * Standard service is two 32-gallon cans or one 64-gallon cart. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-1 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-2-1 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 (2) Monthly Cornpostables Collection Cost* Collection Frequency per Week N urn ber of Carts One Two Three Four Five Six 1 32-gallon cart $30.41 1 64-gallon cart 62.78 140.28 217.78 295.28 372.78 450.28 1 96-gallon cart 94.18 203.07 311.96 420.85 529.74 638.63 2 64-gallon carts 125.57 265.85 406.13 546.42 686.70 826.98 1 64-gallon + 1 96-gallon cart 156.96 328.64 500.31 671.99 843.66 1,015.34 2 96-gallon carts 188.35 391.42 594.49 797.55 1,000.62 1,203.69 *The monthly charge for compostables service is 10% less than the charge for equivalent refuse service. Compostable materials include yard trimmings, food waste, compostable paper, compostable plastics and untreated wood. E. SPECIAL ITEM CHARGES: 1. Stove/washer/dryeriheater pick up * ................................................................................ 25.00 2. Freezer/refrigerator/air conditioner/garbage compactor pick up * .................................. 35.00 3. Upholstered furniture pick up * .............................................. :........................................ 15.00 4. Mattress pick up * ........................................................................................................... , 15.00 5. Tire pick up (per tire, limit of 4 tires) * ........................................................................... 20.00 6. Pallet pick up * ................................................................................................................. 5.00 7. Microwave Oven*.................................................................................. 5.00 * "Surcharge special" fee applies when special items are not collected under the Annual On-Call Community Clean-up Program guidelines. Garbage compactor refers to under-the-counter type typically found in kitchens. F. SPECIAL LABOR CHARGES: 1. Return trip (same day service)............... ... .................................................................. 36.00 2. Return trip (next day service) .... ............ .................................................................... 24.00 3. Urgent special (for service outside standard weekly collection; charged per cubic yard) 55.00 4. Monthly miscellaneous 1 person service (recurring manual pull out of containers to be serviced; waiting time)............................................................................................... 2.20/min CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-2 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-2-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 5. Miscellaneous 1 person service rate (one-time manual pull out of containers to be serviced). ........ ...... ...... .............. ...... ...... ....................................................... 2.20/min 6. Surcharge special (one -time pick up of large or non-standard items, or bins needing pull out service with separate vehicle, or delivery of containers to special events)......... ....... 77.00 7. Repair rate ................................................................................... 2.20/min + material 8. Extra can ............................................................................................. 12.00 9. Hard to service area (monthly charge per premise)............. ........ ........ ........ ........ 14.42 A 'Hard to Service' area is one that has limited access, such as an area of hilly terrain, private streets with restricted access, or alleys. Thes~ areas require special equipment to service. A map of Hard to Service areas can be found on the City of Palo Alto website at www.cityofpaloalto.org or by contacting the Public Works Department. G. SPECIAL CART CHARGES: 1. 32-gallon cart rental (monthly).................................................................. 3.00 2. 64-gallon cart rental (monthly) ..................................................................... 3.00 3. 96-gallon cart rental (monthly).................................................................. 3.00 4. 32-gallon cart purchase...................................................................... ...... 51.00 5. 64-gallon cart purchase..................................................................... ....... 57.00 6. 96-gallon cart purchase..................................................................... ....... 62.00 7. Cart wash..................................................................................... ....... 25.00 8. Cart clean out (by hand).................................................................... ....... 15.00 9. Recycling cart contamination (entire cart dumped)........ .......... ... ........ ......... ...... 30.00 10. Cart exchange (one exchange allowed per cart each calendar year at no cost) ............. 20.00 11. Monthly key service (customer provided lock) ............................................... 15.00 12. Lock (Contractor provided).......... .......... .... .......... ..... ..... ...... ........... .... ...... 25.00 13. Cart lock installation......................................................................... ....... 40.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet NoR-2-3 dated 7-01-09 {End} Effective 10-01-10 through 10-01-12 Sheet No. R-2-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 A. APPLICABILITY: This schedule only applies to bins, compactors and debris boxes serviced by the City's designated collector. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. C. TEMPORARY RATE DURATION: D. The refuse rates below are temporary, pending the completion of a comprehensive refuse rate study. These temporary refuse rates will be in effect for 24 months from the effective date, or until Council adopts a new rate structure, whichever is sooner. If Council does not adopt a new refuse rate structure within 24 months, the refuse rates below will revert back to the rates in effect on July 20, 2010. RATES: The refuse rates below include collection, processing and disposal of materials properly deposited in the number of refuse containers indicated below. Refuse rates for bin service also include collection and processing of recyclables from special blue bins. The refuse rates below also fund household hazardous waste programs, waste diversion services, and street sweeping programs. (1) BINS Monthly Refuse Collection Cost Size (cubic Collection Frequency Monthly yards) lx/week 2x/week 3x/week 4x/week 5x/week 6x/week Bin Rental 1 $170.04 $346.62 $523.20 $698.69 $875.27 $1,050.76 $39.00 1.5 232.17 477.42 723.76 969.01 1,214.26 1,459.51 39.00 2 294.30 608.22 924.32 1,239.33 1,553.25 1,868.26 50.00 3 416.38 869.82 1,322.17 1,775.61 2,230.14 2,683.58 64.00 4 553.72 1,118.34 1,738.55 2,331.51 2,922.29 3,514.16 64.00 5 675.80 1,407.19 2,136.40 2,867.79 3,599.18 4,329.48 78.00 6 813.14 1,684.05 2,551.69 3,421.51 4,291.33 5,160.06 78.00 8 1,060.57 2,205.07 3,351.75 4,499.52 5,646.20 6,792.88 102.00 CITY OF P ALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-1 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-3-1 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 Monthly Compostables Collection Cost* Size (cubic Collection Frequency Monthly yards) lx/week 2x/week 3x/week 4x/week 5x/week 6x/week Bin Rental $153.04 $311.96 $470.88 $628.82 $787.74 $945.68 $39.00 1.5 208.95 429.68 651.38 872.11 1,092.83 1,313.56 39.00 2 264.87 547.40 831.89 1,115.40 1,397.93 1,681.43 50.00 3 374.74 782.84 1,189.95 1,598.05 2,007.13 2,415.22 64.00 4 498.35 1,006.51 1,564.70 2,098.36 2,630.06 3,162.74 64.00 5 608.22 1,266.47 1,922.76 2,581.01 3,239.26 3,896.53 78.00 6 731.83 1,515.65 2,296.52 3,079.36 3,862.20 4,644.05 78.00 8 954.51 1,984.56 3,016.58 4,049.57 5,081.58 6,113.59 102.00 * The monthly charge for compostables service is 10% less than the charge for equivalent refuse service. Compostable materials include yard trimmings, food waste, compostable paper, compostable plastics and untreated wood. (2) DEBRIS BOXES a. Garbage and Construction & Demolition (C&D) Materials* On-Call Service 7CY 15CY 20CY 30CY 40CY Delivery $148.24 $148.24 $148.24 $148.24 $148.24 Service 644.19 644.19 747.74 957.02 1,043.13 Total 792.43 792.43 895.98 1,105.26 1,191.37 Non-use ** $76.00 $76.00 $76.00 $76.00 $76.00 Minimum Overfull 52.00 52.00 69.00 86.00 104.00 * Additional contaminated charge of$185.30 may apply on debris boxes used for construction and demolition materials. **Within a fourteen (14) day period. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-2 dated 7-01-09 Effective 10-1-2009 Sheet No. R-3-2 COMMERCIAL REFUSE COLLECTION Permanent Service Collection Frequency Size lxlweek 2x1week UTILITY RATE SCHEDULE R-3 3x1week Monthly Box Rental 15 CY 20CY 30CY $ 2,512.45 $ 5,024.90 3,056.36 3,925.09 6,112.72 7,849.09 $ 7,538.44 9,167.99 11,774.18 $ 140.00 186.00 279.00 b. Source Separated Recyclable Materials* Delivery** Service Non-use *** Minimum Overfull I Size 15 CY 20 CY 30 CY 7CY $ 126.00 328.00 l $76.00 52.00 On-Call Service 15CY $ 126.00 328.00 $76.00 52.00 20CY $ 126.00 380.80 $76.00 69.00 Permanent Service Collection Frequency lxlmonth ·2x1month $ 312.00 $ 624.00 $ 364.00 728.00 390.40 780.80 30 CY $ 126.00 488.00 $76.00 86.00 40CY $ 126.00 532.00 $76.00 104.00 Monthly Box 3x1month Rental 936.00 $ 140.00 1,092.00 186.00 1,172.00 279.00 * "Source separated recyclable materials" means recyclable materials, which are separated from solid waste by the generator at the location where it was created, not mixed with or containing more than incidental solid waste, as determined by the Director. Source separated single recyclable materials are source separated recyclable materials that can be directly marketed as a distinct single commodity, as determined by the Director. ** A delivery fee or a monthly box rental fee may be assessed depending on customer's service needs. * * * Within a fourteen (14) day period. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-3 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-3-3 (3) DETACHABLE CONTAINER RENTAL: Cubic Yard 1 1.5 2 3-4 5-6 8-10 15 20 30 40 SPECIAL PROVISION: COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 Per Month 39.00 39.00 50.00 64.00 78.00 102.00 140.00 186.00 279.00 279.00 The monthly charge to multi-unit apartment dwellings will be billed to the owner. E. SPECIAL ITEM CHARGES: 1. Stove/washer/ dryer/water heater pick up *... ... ... ............ .......... ... ...... ......... ... ......... ......... 25.00 2. Freezer/refrigerator/air conditioner/garbage compactor pick up * .................................. 35.00 3. Upholstered furniture pick up * ....................................................................................... 15.00 4. Mattress pick up * ............................................................................................................ 15.00 5. Tire pick up (per tire, limit of 4 tires) * ........................................................................... 20.00 6. Pallet pick up * ................................................................................................................ 5.00 7. Microwave Oven * ........................................... ;.... ... . .. . .... .. . . . . .... ........ .... 5.00 * Surcharge special rate applies when special items are not collected under the Annual On-Call Community Clean-up Program guidelines. Garbage compactor referscto under-the-counter type typically found in kitchens. F. SPECIAL LABOR CHARGES: 1. Urgent special (for service outside standard weekly collection; charged per cubic yard) .... 55.00 2. Monthly miscellaneous 1 person service (recurring manual pull out of containers to be serviced) .................................................................................................................................... 2.20/min 3. Miscellaneous 1 person service rate (one time manual pull out of containers to be serviced; waiting time) .............................................................................................................. 2.20/min 4. Surcharge special (one time pick up of large or non-standard items, or bins needing pull out service with separate vehicle, or delivery of containers to special events) ................. 77·.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-4 dated 7-01-09 Effective 10-01-10 through 10-01-12 Sheet No. R-3-4 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 5. Repair rate .......... ..... ............ ... ...................... ........ .... .... ..... 2.20/min + material G. SPECIAL BIN CHARGES: 1. Temporary bin-delivery (1).................................................................. ..... 80.00 2. Temporary bin-delivery (2) ....................................................................... 110.00 3. Temporary bin-delivery (3) ....................................................................... 141.00 4. Temporary bin-delivery (4) ....................................................................... 220.00 5. Temporary bin-weekly fee .................................................................. ...... 25.00 6. Bin wash ................................. ;................................................... ........ 40.00 7. Monthly key service (customer provided lock) ............................................... 15.00 8. Lock (Contractor provided) ......... ......... ...... ........ .......... ............ ..... ....... .... 25.00 9. Auto-bar lock installation .......................................................................... 200.00 H. SPECIAL DEBRIS BOX CHARGES: 1. Debris box delivery (garbage and C&D material) ............................................. 148.24 2. Debris box delivery (source separated recyclables) ........................................... 126.00 2. Additional fee for delivery to Service Area 2* ....... .............. ............... ............. 62.00 3. Debris box non-use (within a fourteen (14) day period)........ ...... ..................... .. 76.00 4. 15 yd box-overfull .................................................................. '............... 52.00 5. 20 yd box-overfull ................................................................................. 69.00 6. 30 yd box-overfull ............................................................................ ..... 86.00 7. 40 yd box-overfull. ................................................................................. 104.00 8. Special debris box service between 12 PM to 6 PM ........................................... 77.00 9. Special debris box service between 6 PM to 12 AM .......................................... 155.00 10. Special debris box service on Saturday before 12 PM ........................................ 77.00 11. Special debris box service on Sunday before 6 PM ............................................. 233.00 12. Special debris box service on Sunday, 6 PM to 12 AM ........................................ 310.00 13. Contaminated loads of construction and demolition recycling materials ..................... 185.30 14. On-call compactor........................................................................... ....... 63.22 15. Compactor/ drop box wash................................................................. ....... 82.00 16. Compacted garbage (per compacted cubic yard) .............................................. 69.76 17. Compacted compostables (per compacted cubic yard) ....................................... 62.78 18. Compacted recyclables (transportation) ............................................................. 2201min * A map of Service Area 2 can be found on the City of Palo Alto website at www.cityofpaloalto.org or by contacting the Public Works Department. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-5 dated 7-01-09 {End} Effective 10-01-10 through 10-01-12 Sheet No. R-3-5