HomeMy WebLinkAboutStaff Report 356-10TO: HONORABLE CITY COUNCIL 4
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: SEPTEMBER 20, 2010 CMR:356:10
REPORT TYPE: ACTION
SUBJECT: Public Hearing: From Finance Committee: Adopt a Resolution
Amending the Utility Rate Schedules R-l, R-2, and R-3 for a Refuse
Rate Increase; Adopt Budget Amendment Ordinance for Fiscal Year
2011 to Adopt Municipal Fee Schedule Increases for the Palo Alto
Landf'Il1 and Adjust Budgeted Revenues and Expenditures Within the
Refuse Fund; and Authorize Staff to loan the Refuse Fund up to
$840,000 from the General Fund
RECOMMENDATION
Staff recommends that Council:
1. Adopt the Resolution Amending the Utility Rate Schedules R-l, R-2, and R-3 for a Refuse
Rate Increase (Attachment A);
2. Adopt the Budget Amendment Ordinance for Fiscal Year 2011 to adopt Municipal Fee
Schedule Increases for the Palo Alto Landfill and Adjust Budgeted Revenues and
Expenditures Within the Refuse Fund (Attachment B); and
3. Authorize Staff to loan the Refuse Fund up to $840,000 from the General Fund.
BACKGROUND
At the 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:281:10)
with an update on the Refuse Fund, a 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:301:1O), staffprovided additional information on Palo Alto's solid waste system
and services, rate and revenue modeling, and options to bring the Refuse Fund to cost recovery
through a combination of additional revenue sources, rate increases, and expense reductions. Oil
July 20, 2010 staff presented a recommended scenario to the Finance Committee to close the FY
2011 budget shortfall that includes a proposed interim rate increase of 6 percent for residential
and 9 percent for commercial customers, coupled with expense reductions. (See CMR:313:1O,
Attachment C).
CMR:356:10 Page 1 of8
DISCUSSION
Over the past fiscal year, Public Works identified a potential shortfall in the Refuse Fund balance
and mandated reserves if corrective actions were not taken. A comprehensive discussion of
issues was described in CMR:301:1O to the Finance Committee on July 6,2010. The shortfall of
revenues is associated primarily with the reduction in commercial customer services from the
success of the implementation of compostables (food waste) collection services, and the
economic downturn, which CalRecycle, formerly known as the California Integrated Waste
Management Board, recently documented (Attachment D).
On July 20,2010 Public Works' proposal to address the FY 2011 refuse budget was approved by
the Finance Committee, with one modification, by a three to one vote. Specifically, the Finance
Committee recommended that the landfill closure CIP in the amount of $600,000 not be deferred
and that staff request the State to allow for the use of the funds required for landfill closure. In
case the State denies the request the General Fund would lend the Refuse Fund the $600,000 plus
interest set at the City's investment portfolio rate ofretum. Attachment C provides the complete
report, CMR:313:1O, including the proposed Refuse Fund rate schedules R-l, R-2, and R-3.
The following table summarizes the proposed budget changes for FY 2011, including all expense
reductions and revenue increases as detailed in CMR:313:10. The table reflects modifications to
the proposed budget changes in CMR:313:1O, including the Finance Committee's
recommendation to proceed with CIP RF-llOOI Landfill Closure in the amount of $600,000
during FY 2011. As a result, this item has been removed from the table. Also, a correction has
been made to reflect the deferral of reimbursement for CIP RF-10003 Drying Beds, Material
Storage and Transfer Area in the amount of $375,000 as noted below.
Total Fund Revenues per FY 2011 Proposed Budget $29,895,824
Changes: One-time Ongoing
$5 for minican/6 percent increase for other residential 500,000
9 percent increase for commercial 1,700,000
Rent payment from Utilities for the use of former Los
Altos Treatment Plant site(l) 240,000 60,000
Loan from General Fund -LA TP 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
CMR:356:1O Page 2 of8
Total Fund Expenditures per FY 2011 Proposed Budget
Changes:
Decrease in estimate for Green Waste contract
Restore 0.1 FTE Engineering Tech ill (0.9 FTE allocated
to CIP sidewalk repair and replacementi2)
Defer CIP RF -10003 Drying Beds, Material Storage and
Transfer Area(3)
Decrease in landfill operations
Decrease in Zero Waste Coordinator position
Decrease in Zero Waste outreach
One-time Ongoing
(800,000) (797,178)
(375,000)
(122,624)
(300,000)
10,883
(250,000i4):
$36,889,554
(1,597,624) (1,036,295) (2,633,919).
Total Fund Expenditures-Amended $34,255,635
I Cbange in Net Assets ($789,811)<') I
(1) $240,000 in rent payments have been recorded at year-end FY 2010.
(2) Restored at FY 2011 budget adoption.
(3) The deferral ofCIP RF-10003 (Drying Beds, Material Storage, and Transfer Area) will result
in one-time net savings of only $375,000, not $750,000. The reason is that the project is
funded 50% by the Wastewater Collection Fund, and the interfund transfer of revenue has
been moved from FY 2011 to FY 2012 revenues since the project is deferred.
(4) Originally attributed to reduced landfill hours.
(5) $600,000 will be paid from Landfill closure/postclosure reserve or from a loan from the
General Fund.
In summary, while the change in net assets for the Refuse Fund shows $789,811 deficit due to
accounting practices, $600,000 of that deficit is due to the CIP project to convert Phase II A&B
of the landfill for park use and the payment of that cost will be taken out of the landfill
closure/postclosure reserve, or as a loan from the General Fund. The net impact to the rate
stabilization reserve is projected to be $189,111 as a result.
Additionally, in conjunction with $2.6 million in expense reductions, staff proposes an interim
nine percent rate increase for commercial customers and a six percent increase for all residential
customers except the 20 gallon mini can service level. Historically, the 20 gallon minican rate
has been set well below cost recovery in order to incentivize diversion. The mini can service rate
would inC(rease from $15.00 to $20.00 per month, to begin to bring this artificially low rate into
alignment with the rates for other residential service levels. The increase of the minican rate will
generate approximately $130,000 over the next year. The total rate increase for residential and
commercial customers will generate an estimated additional $2.2 million dollars ($1.7 million
CMR:356: 10 Page 3 of 8
from commercial customers and $500,000 from residential customers). The following two tables
list a sample of rates for 20 gallon and 32 gallon residential service, based on a survey conducted
annually by Public Works of the solid waste rates of neighboring communities.
20 Gallon Sin~le Family Rates, By City
Jurisdiction FY2010Rate FY2011 Rate
San Jose $25.90 same
Los Altos Hills $24.20 same
Palo Alto $15.00 $20.00 proposed
Campbell $15.00 same
Santa Clara $12.65 $13.28
Mountain View $11.95 $12.90
32 Gallon Single Family Rates, By City
Jurisdiction FY2010Rate FY2011 Rate
Los Altos Hills $33.77 same
Palo Alto $31.00 $32.86 proposed
San Jose $27.50; $31.50 w/yard same
trimmings cart
Sunnyvale $26.70 $28.70
Campbell $19.58 same
Santa Clara $18.00 $18.90
Mountain View $17.55 $18.95
Staff is proposing an interim rate increase effective October 1, 2010, to be in effect not more
than 24 months. If approved by Council, this proposed rate increase would take effect on
October 1,2010 and provide the needed revenue to help close the Refuse Fund's budget shortfall
for FY 2011 while a cost of service study is conducted an analysis of the Refuse rate structure
completed. The Refuse Fund cost of service study is underway, and on schedule to be completed
by late fall 2010, with new rate structures targeted for Council discussion in January 2011. The
study will produce both a cost of service model to calculate future allocations of expenses to use
in rate setting, and a new proposed rate structure for the Refuse Fund. One of the anticipated
results of the cost of service study is a rate structure that no longer relies solely on rates based on
garbage service levels. Additionally, the new rate structure could include fees tied directly to
services, such as street sweeping, re<;:ycling, household hazardous waste collection, etc. Finally,
the rate structure will provide for a better funded Rate Stabilization Reserve. Staff anticipates
bringing a full evaluation of the fund and proposals for changes to the rate structure to stabilize
revenue as part of the FY 2012 budget process.
Additionally, since 2006, solid waste rates are subject to the notice and protest hearing procedure
of Proposition 218, which requires written notice to be provided to all those subject to any
proposed new or increased fee. Notices were sent to all property owners and utility customers on
August 4, 2010. A public hearing on the new or increased fees must be held not less than 45
CMR:356;10 Page 4 of8
days after mailing the written notice. The September 20, 2010 Council date is the earliest
opportunity to conduct the rate hearing.
Hard to Serve Rate
Included in the rate schedule is a fee for Hard to Serve areas in the city. A 'Hard to Serve' area
is one that has limited access, such as on private streets with restricted access or alleys. In
addition, physical conditions, such as narrow roadways, make the use of standard collection
vehicles unsafe or create the potential for damage to property and equipment. Servicing single
and multi-family residences in these areas requires specialized collection trucks, which results in
higher operational costs for the additional equipment, labor, and maintenance. The 'Hard to
Serve' rate for FY 2011 is $14.42 per month and potentially affects 700 residents.
Hard to Serve areas in Palo Alto have created service challenges for many years. In the past, the
cost of providing this special service to a limited number of customers was allocated across the
entire customer base. During the last procurement process for new collection services, the
Request for Proposals specifically required the proposers to provide a rate for collection from
'Hard to Serve' customers. The rate allocates appropriately the actual cost of providing the
service to the specific customers receiving it, in alignment with Proposition 218. Council
approved the 'Hard to Serve' Refuse fund rate as part of the GreenWaste solid waste hauling
contract, and FY 2010 rate schedule, which became effective July 1,2009.
Since the Hard to Serve rate was a new charge to some residents, in response to customer
concerns, staff delayed implementation of the rate last fiscal year and conducted additional
notification and outreach to the potentially affected customers throughout November and
December 2009. However, the City was still obligated contractually to pay GreenWaste for the
special services, and has been doing so since the beginning of the contract, approximately
$120,000 in FY 2010.
Potentially affected residents were sent two letters describing the rate and options to reduce their
bill. The outreach to the 'Hard to Serve' customers was tailored to several types of customers
(private street, alleyway, or steep terrain), and encouraged them to switch to a smaller garbage
cart to offset the 'Hard to Serve' rate. Since the most commonly used service level is the 32
gallon, many customers still have the option of reducing to a minican. Additionally, City and
GreenWaste staff has met with any interested customers and home owners associations to review
their individual situations to attempt to provide alternatives to the rate.
.... Hard to Serve . Number of Ways<tQ Offset ,
Ar~~ .... C~stomerS .. .". '.,:.' ,
, .. ... :BilIIncr¢~se· .
Hilly terrain 70 Most customers can downsize to smaller
can
Private streets with restricted 213 Most customers can downsize to smaller
access can
Alleyways and other streets with 417 Place cart curbside (front of house),
limited access subscribe to side yard servIce, or
downsize to smaller can
The above chart shows the break-out of Hard to Serve customers, by service area, and shows
how a customer would be able to reduce the overall impact of the addition of the Hard to Serve
CMR:356:10 Page 5 of8
, '
rate to their bill. Due to the operational constraints of collecting solid waste from the hilly
terrain and private streets, downsizing to a smaller can is the way residents in these two areas can
offset the increase in their bill. Because the homes of alleyway customers face streets where a
regular collection truck drives by, they have several different options to reduce their bill,
including placing their can at the street which will avoid the additional rate all together, or
subscribing to back/side yard service for $3.35 per month, as proposed.
The City has identified 700 Hard to Serve customers potentially subject to the rate. Currently,
due to the outreach to the affected customers, 240 customers have selected other options. The
remaining 460 of the identified Hard to Serve customers, out of over 21,000 residential
customers, are subject to the additional rate, but many of them can still take advantage of other
service options.
In compliance with Proposition 218 requirements, the notification letter sent to all property
owners and utility customers identified the Hard to Serve rate, included the map of the areas to
which the Hard to Serve rate applies, and provided the City website location to view a list of all
individual addresses in Hard to Serve areas.
Palo Alto Landfill
The budget proposal presented in CMR:313:10 also includes several actions that impact the Palo
. Alto landfill. The first is an increase of fees at the landfill. While still competitive in the market,
the changes in the gate fees will generate an additional $230,000 in FY 2011.
The second element to the proposal that impacts the landfill is the initial recommendation to
defer two ClP projects to FY 2012, as described in CMR: 313:10. One of those projects is to
prepare Phases II A&B of the landfill to be opened to the public by undergrounding the above
ground gas and leachate collection systems in these closed sections (as well as installation of
additional wells in the active Phase IIC area). The project will cost an estimated $600,000 to
implement. Based on input from the Finance Committee, Public Works staff has added this
project back into the budget for FY 2011 and will apply to the State to reduce the landfill closure
reserve, or borrow $600,000 from the General Fund.
Solid Waste System Planning Update
There are many inter-related issues being evaluated and projects underway that impact the
overall solid waste system. This section is intended to provide a list of these items and highlight
the time line for when Public Works will be returning to Council with them for discussion and
action.
Item Return to Council
Compost operation update and landfill options October 18, 2010
Future landfill rent discussion October 18, 2010
Landfill "trickling closure" issue October 18,2010
Cost of service study and Refuse Fund rate structure January 2011
Anaerobic digestion feasibility study update March 2011
CMR:356:10 Page 60f8
RESOURCE IMPACT
State regulations require the Refuse Fund to provide financial assurance for landfill closure,
maintenance and corrective action costs. Consequently, the Refuse Fund is required to maintain
a cash balance of $6.7 million to cover these costs. At June 30, 2010, the cash balance in the
Refuse Fund is $7.9 million. The recommended changes to the 2011 budget would net a draw of
$789,811 assuming the State does allow the City to draw down $600,000 from the required
funding. In order to minimize further impacts to the Refuse Fund and mitigate any cash flow
issues, the Finance Committee recommended that the General Fund lend the Refuse Fund an
additional $600,000 if the State does not allow the required funding draw down. This would
then make the net draw to the rate stabilization reserve $189,811. Based on approval of the
recommendation, the draw would then leave a cash balance in the Refuse Fund of $7.1 million.
Without the proposed amendments to the FY 2011 budget, including the rate increase, the Refuse
Fund risks falling out of compliance with the State landfill closure funding requirements since it
would use the available cash and drop below the financial assurance amount.
Staff recommends that the Refuse Fund maintain the required cash balance at all times to ensure
compliance with State landfill closure funding requirements, and that steps are taken to ensure a
minimum Rate Stabilization Reserve of 10 percent of revenues achieved to provide rate stability
in the future. A General Fund loan of $240,000 (from LATP rental income) plus interest equal
to the rate of return on the City's investment portfolio will be needed and potentially another
loan of $600,000 to ensure the Refuse Fund has adequate funds for meeting the State landfill
closure requirements and its current operating needs. In addition, midyear revisions to the
Refuse Fund may be required depending on the actual experience of the expenditures and
revenues. This could result in further reduction of budgeted expenditures or additional loans.
As a result of the proposed rate increases and budget amendments, the Refuse Fund is expected
to decrease the 2011 Adopted Budget deficit from a negative $6.5 million to a negative
$189,811. The Rate Stabilization Reserve will still be at a negative position of $5,587,812. The
deficit position is primarily due to the recognition of the landfill post closure liability as required
by accounting rules, and operating losses incurred over the past two years. It is anticipated that
the Rate Stabilization Reserve will return to a positive balance in future years under a subsequent
rate structure to be det~rmined after a cost of service study (currently in progress) is conducted
and an analysis of the refuse rate structure is completed.
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 finaricial 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).
CMR:356:10 Page 7 of8
ATTACHMENTS
Attachment A: Resolution Amending Refuse Rates
Attachment B: Budget Amendment Ordinance
Attachment C: CMR:313: 1 0 (includes proposed rate schedules)
Attachment D: CalRecycle press release, July 13,2010
PREPARED BY:
DEPARTMENT HEAD:
GLE
of Public Works
CITY MANAGER APPROVAL: ~~D~~ G\ JAMES KEE~ 1?-City Manager
CMR:356:10 Page 80f8
ATTACHMENT A
Not Yet Approved
ResQlution No. ---
.Resolution of the Council of the City of Palo Alto Amending
the Utility Rate Schedules R-I, R-2, and R-3 for a Refuse Rate
Increase
WHEREAS, pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the
City Council may by resolution adopt rules and regulations governing utility services and the
fees and charges therefore; and
WHeREAS, the Council has considered the need for an adjustment in refuse
collection rates' and recycling collection services to maintain .the Refuse Fund Stabilization
Reserve Fund at required levels; and
WHEREAS, pursuant to Article XIIID Sec. 6 of the California Constitution, on
September 20, 2010 the Council of the City of Palo Alto held a public hearing to consider all
protests against the proposed refuse rate fee increases; and
WHEREAS, the total number of written protests presented by the close of the
public hearing was less than fifty percent (50%) of the total number of customers subject to the
proposed refuse rate fee increases.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as
follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule R-I (Domestic Refuse Collection) is hereby amended to read in
accordance with Sheets R-l-l and R-I-2, attached hereto and incorporated herein. The foregomg
l!tility Rate Schedules, as amended, shall become effective on October 1,2010 .
. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule R-2 (Commercial Refuse Collection) is hereby amended to read in
accordance with Sheets R-2-1, R-2-2 and R-2-3, attached hereto and incorporated herein. The
foregoing Utility Rate Schedules, as amended, shall become effective on October 1, 2010.
SECTION 3. 'Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule R-3 (Commercial Refuse Collection) is hereby amended to read in
accordance with Sheets R-3-1, R-3-2, R-3-3, R-3-4 and R-3-5 attached hereto and incorporated
herein. The foregoing Utility Rate Schedules, as amended, shall become effective on October 1,
2010.
SECTION 4: The rates contained in the attached Rate Schedules shall be in
,j effect for 24 months from the effective date, or until the City Council adopts a new rate structure,
whichever is sooner. If the City Council does not adopt a new refuse rate structQre within 24
months, the refuse rates contained in the attached Rate Schedules will revert back to the rates in
effect on July 20,2010.
1
100915jb0130626
Not Yet Approved
SECTION 5. The Council finds that the revenue derived from the authorized
adjustments of the refuse collection rates shall be used only for the purposes ~et forth in Article
VII, Section 2, of the Charter of the Ci~yfPalo Alto.
SECTION 6. The Council finds that the adoption of this resolution does not.
constitute a project under the California Environmental Quality Act, California Public Resources
Code section 21080, subdivision (b)(8). '
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Director of Public Works
Director of Administrative
Services
100915 jb 0130626
Mayor
APPROVED:
City Manager
2
DOMESTIC REFUSE COLLECTION
UTILITY RATE SCHEDULE R-1
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 eollection, 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-canl20-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
E.
DOMESTIC REFUSE COLLECTION
UTILITY RATE SCHEDULE R-l
SPECIAL ITEM CHARGES:
1. Stove/washer/dryer/water heater pick up * ..................................................................... .
2. Freezer/refrigerator/air conditioner/garbage compactor pick up * ................................. .
3. Upholstered furniture pick up (per unit) * ...................................................................... .
4. Mattress pick up * ........................................................................................................... .
5. Tire pick up (per tire, limit of 4 tires) * .......................................................................... .
6. Pallet pick up * ............................................................................................................... .
7. Microwave Oven pick up* .............................................................................................. .
25.00
35.00
15.00
15.00
20.00
5.00
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 Compostables Collection Cost*
Collection Frequency per Week
Number 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 + I 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. Comppstable materials include yard trimmings, food waste, compostable paper,
compostable plastics and untreated wood.
E. SPECIAL ITEM CHARGES:
1. Stove/washer/ dryer/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" 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. 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. 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 No.R-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 recyclab1es 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 PALO 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*
Collection Frequency Size (cubic
yards) lx/week 2x/week 3x/week 4x/week 5x/week 6x/week
Monthly
Bin Rental
1 $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
I
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-3
Permanent Service
Collection Frequency Monthly Box
Size lx/week 2x/week 3x/week Rental
15 CY
20CY
30CY
$ 2,512.45 $ 5,024.90 $ 7,538.44 $ 140.00
3,056.36
3,925.09
6,112.72
7,849.09
b. Source Separated Recyclable Materials*
Delivery**
Service
Non-use ***
Minimum
Overfull
Size
15 CY
20CY
30CY
7CY
$ 126.00
328.00
$76.00
52.00
On-Call Service
l5CY
$ 126.00
328.00
$76.00
52.00
20CY
$ 126.00
380.80
$76.00
69.00
Permanent Service
Collection Frequency
lx/month 2x/month
$ 312.00 $ 624.00 $
364.00 728.00
390.40 780.80
9,167.99
11,774.18
30CY
$ 126.00
488.00
$76.00
86.00
186.00
279.00
40CY
$ 126.00
532.00
$76.00
104.00
Monthly Box
3x/month 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 refers to 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 oflarge 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) ............................................................ .2.201min
* 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
ATTACHMENT B
ORDINANCE ,NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2011 TO
ADOPT MUNICIPAL FEE SCHEDULE INCREASES FOR THE
PALO ALTO LANDFILL, AND ADJUST BUDGETED REVENUES
AND EXPENDITURES WITHIN THE REFUSE FUND
The City Council of the City of Palo Alto does ordain as
follows:
SECTION 1. The City Council of the City of Palo Alto finds
and determines as follows:
A. Pursuant to the provisions of Section 12 of Article III
of the Charter of the City of Palo Alto, the Council on June 28,
2010 did adopt a budget for fiscal year 2011, including a Table
of Organization describing the staffing for each department and
a Municipal Fee Schedule; and
B. The Refuse Fund adopted budget
reflects total expenditures exceeding
$7,004,613; and
for fiscal year
total revenues
2011
by
C. State regulations for landfill closure and corrective
action funding requirements mandate that the Refuse Fund
maintain a cash balance of $6,700,000; and
D. A combination of revenue increases and expenditure
decreases is needed to maintain an adequate cash balance in the
Refuse Fund; and
E. A nine percent rate increase for commercial customers
is expected to generate an additional $1,700,000 in revenue; and
F. A $5.00 per month rate increase for 20-gallon can
residential service, and a six percent rate increase for all
other residential customers is expected to generate an
additional $500,000 in revenue; and
G. Additional revenue increases and expenditure decreases
are needed to maintain an adequate cash balance in the Refuse
Fund as described in Exhibit A; and
H. The fiscal year 2011 Adopted Municipal Fee Schedule
requires amendment to increase certain refuse disposal fees
related to the Palo Alto landfill as reflected in Exhibit C; and
I. City Council authorization is needed to amend the fiscal
year 2011 budget as hereinafter set forth.
Page 1 of 3
SECTION 2. The General Fund Budget Stabilization Reserve is
hereby decreased by the sum of Two Hundred Forty Thousand
Dollars ($240,000), as described in Exhibit A. As a result of
this change, the Budget Stabilization Reserve will decrease to
$23,667,000.
SECTION 3. The Rate Stabilization Reserve in the Refuse
Fund is hereby increased by the sum of Five Million Nine Hundred
Seventy-Four Thousand Eight Hundred Two Dollars ($5,974,802) as
described in Exhibit A. As a result of this change, the Rate
Stabilization Reserve in the Refuse Fund will increase to a
deficit of ($5,588,812).
SECTION 4. The Distribution Rate Stabilization Reserve in
the Electric Fund is hereby decreased by the sum of Forty-Five
Thousand Dollars ($45,000) as described in Exhibit A. As a
result of this change, the Distribution Rate Stabilization
Reserve in the Electric Fund will decrease to $8,986,000.
SECTION 5. The Distribution Rate Stabilization Reserve in
the Gas Fund is hereby decreased by the sum of Seven Thousand
Five Hu~dred Dollars ($7,500) as described in Exhibit A. As a
result of this change, the Distribution Rate Stabilization
Reserve in the Gas Fund will decrease to $8,866,500.
SECTION 6. The Rate Stabilization Reserve in the Water Fund
is hereby decreased by the sum of Seven Thousand Five Hundred
Dollars ($7,500) as described in Exhibit A. As a result of this
change, the Rate Stabilization Reserve in the Water Fund will
decrease to $12,298,500.
SECTION 7. The Rate Stabilization Reserve in the Wastewater
Collection Fund is hereby increased by the sum of Three Hundred
Seventy-Five Thousand Dollars ($375,000) as described in Exhibit
A. As a result of this change, the Rate Stabilization Reserve
ln the Wastewater Collection Fund will increase to $4,941,000.
\
SECTION 8. The Rate Stabilization Reserve in the Wastewater
Treatment Fund is hereby decreased by the sum of Three Hundred
Fifty Thousand Dollars ($350,000) as described in Exhibit A. As
a result of this change, the Rate Stabilization Reserve in the
Wastewater Treatment Fund will decrease to a deficit of
($14,843,000) .
SECTION 9. Adjustments to defer expenditures from fiscal
year 2011 to fiscal year 2012 for Capital Improvement Project
RF-10003 Drying Beds, Material Storage and Transfer Area are
made as shown in Exhibit B. The decrease in fiscal year 2011 is
reflected in the adjustments as shown in Exhibit A.
SECTION 10. The Municipal Fee Schedule is hereby amended
to reflect the changes shown in Exhibit c, which is attached
hereto and incorporated herein by reference.
Page 2 of3
SECTION 11. As specified in Section 2.2B.OBO(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 12. The Council of the City of Palo Alto hereby
finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental
impact assessment is necessary.
SECTION 13. As provided in Section 2 ~ 04.330 of the Palo
Alto Municipal Code, this Ordinance shall become effective upon
adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Sr. Asst. City Attorney City Manager
Director of Admin. Services
Page 3 of3
Exhibit A
CITY OF PALO ALTO
AMENDMENTS TO THE FY 2011 ADOPTED BUDGET
FY 2011 Category Amount Description
ENTERPRISE FUNDS
.II::IUI~I.]
Revenue $500,000 6% rate increase for residential customers
Revenue 1,700,0009% rate increase for commercial customers
Revenue 60,000 Rent payment from Utilities Dept.for use of former Los
Altos Treatment Plant site
Revenue 240,000 Loan from General Fund
Revenue 230,000 Landfill gate fee increases
Revenue 250,000 Landfill soil fee
Revenue 350,000 Landfill gas revenue from Wastewater Treatment Fund for
RWQCP usage of landfill gas
Revenue Cbanges 3,330,000
Salary and Benefits $(122,624) Freeze 1.0 FTE Zero Waste Coordinator for one year
Salary and Benefits s (250,000) Salary and benefits savings-landfill operations
Non-salary (1,597,178) Decrease estimate for GreenWaste hauling contract
Non-salary (375,000) Defer CIP RF-10003 Drying Beds,Material Storage and
Transfer Area (ClP RF-10003 totaling $750,000 has
$375,000 in funding from the Wastewater Collection Fund;
for SAP fmancial entries,a reversal ofthe transfer between
funds will be reflected)
Non-salary (300,000) Decrease in Zero Waste outreach
Use Changes (2,644,802)
Net Changes To (From)Reserves s 5,974,802
Fund Balancing Entries
5,974,802 Change in Fund Balance
Total Refuse Fund s 5,974,802
1'31 ••••..-rt -~1'4li\!!Rl!J
Allocated Charges $45,000 Rent payment from Utilities Dept.for use of former Los
Altos Treatment Plant site I "
Use Changes 45,000
Net Changes To (From) Reserves $(45,000)
Fund Balancing Entries
(45,000) Change in Fund Balance-Distribution
Total Electric Fund $(45,000)
Exhibit A
CITY OF PALO ALTO
AMENDMENTS TO THE FY 2011 ADOPTED BUDGET
"FY 2011 Category Amount Description
rH.I 'j',.'
Allocated Charges $7,500 Rent payment from Utilities Dept. for use of former Los
Altos Treatment Plant site
Use Changes 7,500
Net Changes To (From) Reserves $(7,500)
Fund Balancing Entries
(7,500) Change in Fund Balance- Distribution
Total Gas Fund $(7,500)
".".••....•-~"",',~Zi~.. ,',',"'.r' ..;".:,f""',:"..\
Allocated Charges $7,500 Rent payment from Utilities Dept. for use of former Los
Altos Treatment Plant site
Use Changes 7,500
Net Changes To (From) Reserves $(7,500)
Fund Balancing Entries
$(7,500) Change in Fund Balance
Total Water Fund $(7,500)
~,.lI..-• •~."""
Non-salary $(375,000) Defer reimbursement to Refuse Fund for CIP RF-I0003
Drying Beds,Material Storage and Transfer Area (project
deferred to FY 2012)
Use Changes (375,000)
Net Changes To (From) Reserves $375,000
Fund Balancing Entries
$375,000 Change in Fund Balance
Total Wastewater Collection Fund $375,000
Paqe 2 of 3
Exhibit A
CITY OF PALO ALTO
AMENDMENTS TO THE FY 2011 ADOPTED BUDGET
FY 2011 Category Amount Description
...~I];.\'~i:,::,;">'I
$ 350,000 Landfill gas charges to the Refuse Fund for RWQCP usage
of landfill gas
Use Changes 350,000
Net Changes To (From) Reserves $(350,000)
Fund Balancing Entries
(350,000) Change in Fund Balance
Total Wastewater Treatment Fund $(350,000)
GENERAL FUND
J~[.l~t:!IJ~.J••1Ir1,~::r,;
Non-salary $ 240,000 Loan to Refuse Fund
Use Changes 240,000
Net Changes To (From) Reserves $(240,000)
Fund Balancing Entries
(240,000)Budget Stabilization Reserve
Total General Fund $(240,000)
PagEl 3 of 3
CIP DRYING BEDS, MATERIAL STORAGE AND TRANSFER
AREA (RF-I0003)•
Description:This project includes designing and implementing two
bunker storage-transfer systems for dry and wet materials. The project
will also evaluate potential non-park land sites for these activities. The
dry system will be used to store inert solids and leaves from municipal
operation construction projects and street sweeping. The wet system
will be used for storm drain and sanitary sewer debris from Vac-con
trucks.
Justification:This project will be developed in anticipation of the
landfill closure in 2012.
Supplemental Information:Feasibility of processing other wet
construction materials and allowing contractors to use the systems will
be considered during the design phase.
Refuse and Wastewater Collection Funds will share equally the
construction costs.
PRIOR YEARS
PY Budget $125,000
PYActuals as of 12/31/2009 $39,087
CIPFACTS:
I-
• Continuing
• Project Status:Construction
• Timeline:FY201 0-2012
• Overall Project Completion:0%
• Percent Spent:31.27%
• Managing Department:Public Works
• Comprehensive Plan:Policy N-37
• Potential Board/Commission Review:ARB
1--
IMPACT ANALYSIS:
• Environmental:Possible exemption.
• Design Elements:This project may be subject
to ARB review.
• Operating:None
• Telecommunications:None
Source of Funds:
$375,00
Pre-Design Costs
Design Costs
Construction Costs $750,000
Other
Total Budget Request $750,000
Refuse Fund with the following reimbursements: Wastewater Collection Fund($375,000)
Revenues:
Capital Budget FY 2011
$750,000
$750,000
$375,000
City of Palo Alto 245
Refuse Disposal Area
Classification of Vehicles
Passenger Car or Station Wagon
Other Two-Axle Vehicle or Trailer
Load less than 0.5 cubic ard
Load 1 cubic ard
Load 1 cubic yard or more
Three or More Axle Vehicles
$15.00 (Less than one SUSPENDED-SUSPENDED-
cubic yard)$25.00 (less than $25.00 (less than one
one cubic yard)cubic yard)
(minimum charge) (minimum charge)(minimum charge)
$25.00/cy (one cubic SUSPENDED-SUSPENDED-
yard or more) $25.00/cubic yard $25.00/cubic yard (1
(1 cubic yard or cubic yard or more)
more
SUSPENDED-SUSPENDED-
$15.00 $15.00 $15.00
SUSPENDED-SUSPENDED-
$25.00 $25.00 $25.00
$25.00 each cubic SUSPENDED-SUSPENDED-
yard plus $10.00 for $25.00 each cubic $25.00 each cubic
fractions greater than yard plus $15.00 yard plus $15.00 for
0.5 cubic yard for fractions fractions greater than
greater than 0.5 0.5 cubic yard
cubic ard
Load less than 1 cubic ard
Load 1 cubic yard or more
SUSPENDED-
$35.00 $30.00
SUSPENDED-
$35.00$30.00
$30.00 each cubic
yard plus $15.00 for
fractions greater than
0.5 cubic yard
$30.00/cubic yard
plus $15.00 for
fractions greater than
0.5 cubic yard
SUSPENDED-
$35.00 each cubic
yard plus $18.00
for fractions
greater than 0.5
cubic yard
SUSPENDED-
$35.00 each cubic
yard plus $18.00 for
fractions greater than
0.5 cubic yard
Materials
Compostable Materials (per landfill
acceptance 'list)
City of Palo Alto
$25.00/cubic yard
(non-residents ani
allowed to bring
compostable
materials)
2011 Adopted Municipal Fee Schedule 21-1
Commercial and Multi-Family projects
greater than or equal to $25,000 in
Single Family and Two Family projects
Re.sidel'lee greater than 75, 000 in
valuation
. Single Family and Two Family projects
Residease greater than $25,000 and less
than $75,000 in valuation 1
City of Palo Alto
Deleted Text is .
.00/permit $225.00 /permit
$200 .00/permit
$75.00/permit
2011 Adopted Municipa l Fee Schedule 21-2
TO:
FROM:
DATE:
ATTACHMENT C City of Palo Alto
City Manager's Report
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 :10) 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 infonnation on Palo Alto's solid waste system
and services, rate and revenue modeling, and options to get the Refuse Food 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 1,2010. 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 of 11
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·
LA TP rent -last 3 years, and FY 2006* $420,000 One-time
LA TP 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 clean 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 (LA TP) 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 and 2007.
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 inFY 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 elP 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 ofthe 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:3 13: 10 Page 5 ofl1
allow the short-tenn revenue increases needed to make the fund cost recovery, but not
institutionalize the increases pennanently.
The complete proposed rate schedule is included as Attaclunent 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 mini can 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 $869.82 if the rate proposal is adopted.
Finally, the proposed rate structure reduces rates for commercial source separated debris boxes to
make ~hese 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, GreenWaste 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 tenn goal of re-establishing mimmum Rate Stabilization
Reserve level of 10 percent of revenue
Finally, as mentioned at the July 6, 2010 Finance Committee meeting (CMR 301:10), staff is 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 act';lal data and trends from the new programs and services.
CMR:313:10 Page 6 of 11
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 SourcelExpense 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
reduce 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:3I3:10 Page 7 of 11
closure is more than two years after the closure of composting operation, stockpiles could not be
maintained.
Advantages:
• Cost savings of$150,000
• Use of SMaRT Station processing operation already paid for in contract
Disad vantages:
• 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:313:1O Page 8 of II
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 FY 2011, 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 pennit 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, 20 11
• 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 ProPQsed 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)
DeferCIP 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
Change in Net Assets $185,189
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 of those 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)(1) and
(3).
ATTACHMENTS
Attachment A: Timeline for Cost of Service Study
Attachment B: Refuse Fund Rate Schedules R-1, R-2, and R-------
c~·----
f r
--j-~ PREPARED BY:
REN EYERLY i··. (
Solid Waste Manager U \
DEPARTMENT HEAD: &1~8J--
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 Activityl 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 RA TE 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 ofrecyclables
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 One
Mini-can/20-gallon cart ** 20.00
1 32-gal. can or 32-gal. cart*** 32.86
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
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-l
E. SPECIAL ITEM CHARGES:
I. Stove/washer/dryer/water heater pick up * ..................................................................... .
2. Freezer/refrigerator/air conditioner/garbage compactor pick up * ................................ ..
3. Upholstered furniture pick up (per unit) * ...................................................................... .
4. Mattress pick up * .......................................................................................................... ..
5. Tire pick up (per tire, limit of 4 tires) * ......................................................................... ..
6. Pallet pick up * .............................................................................................................. ..
7. Microwave Oven pick up* ............................................................................................. ..
25.00
35.00
15.00
15.00
20.00
5.00
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 eyents) ........... ..... ................................................................................. 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:
I. 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) ........................................................................... .
II. 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) ....................................................................... .
IS. 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
Effecti ve 10-0 1-10 through I 0-01-12
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
bi 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 I 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 1 0-01-12
Sheet No. R-2-1
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-2
(2) Monthly Compostables Collection Cost*
Collection Frequency per Week
Number of Carts One Two Three Four Five Six
I 32-gallon cart $30.41
I 64-gallon cart 62.78 140.28 217.78 295.28 372.78 450.28
I 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
I 64-gallon + I 96-gaBon 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:
I. Stove/washer/dryer/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" 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:
I. 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 I person service (recurring manual puB 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 oflarge 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. 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. 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 No.R-2-3 dated 7-01-09
{End}
Effective 10-01-10 through 1 0-01-12
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:
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. Refuse rates for bin service also include collection
and processing ofrecyclables 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
yards) 1x1week 2x1week
$170.04 $346.62
1.5 232.17 477.42
2 294.30 608.22
3 416.38 869.82
4 553.72 I, I 18.34
5 675.80 1,407.19
\
6 813.14 1,684.05
8 1,060.57 2,205.07
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. R-3-1 dated 7-01-09
Collection Frequency
3x1week 4x1week
$523.20 $698.69
723.76 969.01
924.32 1,239.33
1,322.17 1,775.61
1,738.55 2,33 1.5 I
2,136.40 2,867.79
2,551.69 3,421.51
3,351.75 4,499.52
Monthly
5x1week 6x1week Bin Rental
$875.27 $1,050.76 $39.00
1,214.26 1,459.5 I 39.00
1,553.25 1,868.26 50.00
2,230.14 2,683.58 64.00
2,922.29 3,514.16 64.00
3,599.18 4,329.48 78.00
4,291.33 5,160.06 78.00
5,646.20 6,792.88 102.00
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) lx1week 2x1week 3x1week 4x1week 5x1week 6x1week Bin Rental
I $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 & DemoHtion (C&D) Materials*
On-Call Service
7CY 15CY 20CY 30 CY 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 IxJweek 2xJweek
UTILITY RATE SCHEDULE R-3
3xJweek
Monthly Box
Rental
15 CY
20 CY
30 CY
$ 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
Size
15 CY
20 CY
30CY
7CY
$ 126.00
328.00
$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
IxJmonth 2xJmonth
$ 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
3xJmonth 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
1.5
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 refers to 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
1
l
I
California Trash Disposal Reached Record Low in 2009, July 13, 2010; News Release Page 1
For Immediate Release
July 13. 2010
2010-Release 10
For more Infonnatlon contact:
Amti'Ilmii
California Trash Disposal Reached Record Low in 2009: Economic Factors, Effective
W.~~~.M~.~~~~~~.~~~~~ .. 9;~.~J!~~.w.~~ .. ~~~~~~ ................... ;~ ............................. , .................... ..
Sacramento-Effective waste management programs and economic conditions helped Californians throw away less trash than ever before
in 2009. The per capita disposal rate of 4.5 pounds of trash per person per day is the lowest on record since the department began
tracking statewide waste disposal In 1995. However, drops in personal income and consumption suggest the recession is the primary
driver of the reduced numbers. .
"Though the recession significantly influenced the 2009 drop In disposal. Californians should still be proud of the innovative recycling,
compostlng, and waste reduction programs that continue to reduce our waste stream each year," said CalRecycle Director Margo Reid
Brown. "Looking ahead, we need to make sure these effective recycling programs continue to thrive and grow to handle Increased
disposal that Is antiCipated when the recession eases. n
CsIRecycle calculates California's disposal rate on a yearly basis as a tool to help local communities meet waste reduction and.recycllng
goals. The per capita rate reflects all household and commercial waste that makes its way to Califomla landfills. Total disposal in 2009
was 31.1 miiDon tons, a drop of 4.4 million tons from 2008. Even though population has grown by 21 percent since 1995, 2009 statewide
disposal is 12 percent lower than the 1995 level. A table with disposal and population data from 1995 through 2009 is below.
The ~mmerclal sector generates more than half of all waste accepted by landfills, and construction and demolition -materials account for
approximately 22 percent to the waste stream. In 2009, new-home construction was down 73 percent from the historical average. The
plunge in construction, along with a drop in manufacturing and loss of disposable Income to make new purchases, was a large factor in
the state's record-low waste disposal numbers.
As the economy rebounds, it is likely that businesses will produce more, consumers will buy more, and construction will increase. While
this IS'great news for California, it is expected that more trash will be discarded as a result. It is critical that communities throughout
Califomia, including those currently meeting disposal reduction requirements, continue to develop and implement recycling and waste
management programs to prepare for a larger waste stream that a growing economy and population will produce.
To learn more about California's per capita and statewide waste disposal rates over the years, visit www.CaIRecycle.ca.goy.
California Statewide Waste Disposa'. Population
and'Per Resident' Disposal: 1995-2009
Disposal Population Per Resident Disposal
Year (million tons) (mllllcm) (lbslresidentJday)
2009 31.1 38.3 4.5
2008 35.5 37.9 5.1
2007 39.3 37.5 5.7
2006 41.4 37.1 6.1
2005 42.5 36.7 6.3
2004 41.3 36.2 6.2
2003 40.2 35.7 6.2
2002 38.2 35.1 6.0
2001 38.1 34.4 6.1
2000 38.6 33.7 6.3
1999 37.4 33.1 6.2
1998 37.2 32.7 6.2
1997 35.2 32.2 6.0
1996 33.8 31.8 5.8
1995 34.2 31.6 5.9
CalRecycl~ls the state's leading authority on recycling, waste reduction, and product reuse. CalRecycle plays an important role In the
stewardship of California's vast resources and promotes innovation in technology to encourage economic and environmental
sustainability. For more information, visit www.calrecycle.ca.gov.
http://www.calrecycle.ca.govlNewsRooml2010/07July/10.htm 8/31/2010