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HomeMy WebLinkAbout2002-05-14 City Council (8)TO: ATTN: FROM: City of Palo Alto City Manager’s Report. CITY COUNCIL FINANCE COMMITTEE CITY MANAGER DEPARTMENT: ’02- ’03 PUBLIC WORKS DATE: SUBJECT: MAY 14, 2002 CMR:258:02 ADOPTION OF A RESOLUTION AMENDING THE UTILITY RATE SCHEDULE FOR VARIOUS REFUSE RATES RECOMMENDATION Staff requests Finance Committee recommend to Council approval of the attached resolution amending Utility Rate Schedules R-l, "Domestic Refuse Collection", R-2, "Commercial Refuse Collection", R-3, "Commercial Refuse Collection", and eliminating. R-1-FA~ "Refuse Collection" for Service Area Two. BACKGROUND In November 2000, Council authorized staff (CMR:413:00), to enter into contract with Brown Vence & Associates (BVA) to perform the Refuse Cost of Service Study (COS). The scope of services included a review and analysis of solid waste rates and the City’s rate structure and a comparison with those of nearby cities. The following changes were recommended by BVA: 1) create incentives for commercial bin customers to use larger bins; 2) create a two-part rate for debris boxes separating the cost of renting and hauling; and 3) create equity for residential customers in the hilly area~ of the City. As a result of these rate structure changes, staff also recommends clarifying the service and rate language in the Utility Rate Schedule R-l, "domestic refuse collection". DISCUSSION 1) Commercial Bin Service Palo Alto’s commercial bin service rates do not differentiate between the number or size of containers and collection frequency in a manner that reflects the cost of collection. For example, the rate for a 2-cubic yard bin serviced twice per week is the same as the rate for collecting a 4-cubic yard bin serviced once per week. The .proposed commercial bin rate changes will make the City’s rate structure similar to other cities. BVA reports in the COS that six of the eight cities researched provide similar incentives to use larger bins. A comparable rate structure was CMR:258:02 Page 1 of 3 2) 3) 4) 5) implemented in the City’s residential can rates in the past (FY 1992/1993). Staff is also proposing additional changes to the special collection charges of the Utility Rate Schedule in order to make the rates more consistent. This includes allocating some bin-related rates for refuse collection and processing from the Utility Rate Schedule R-2 to the Rate Schedule R-3. The collection rates of bulky items will also be slightly .changed to reflect the commercial rates .charged at the Palo Alto Landfill. Debris Box Services Rates The COS revealed that the City’s debris box rates do’not meet service expenses and that, relative to other communities, the City’s rates are low. The proposed rates will generate more revenues to recover the actual service expenses while remaining comparable with other surrounding community rates. Staff is also proposing additional changes to make the rates less confusing. The rates for the debris box services will be separated into three categories: on-call service, permanent service, and debris box service for recycling yard trimmings. Refuse. Collection For Service Area Two, R-1-FA Currently, residents living in the hilly area of Palo Alto west of Highway 280 have monthly recycling collection. This service is specified in the Utility Rate Schedule R-1-FA. To create service equi~ for all residents, staff obtained a cost estimate from PASCO to provide weekly recycling service to the hilly .area of the City. ¯ Staff is proposing (in the FY 02/03 budget) to expand the recycling collection in this area to a weekly collection, therefore, eliminating the need for the rate schedule R-1-FA. Rental fees for recycling wheeled carts in the commercial secto~ With the proposed commercial service level changes, staff recommends offering five recyclingcarts to businesses at no additional charge (in the FY 02/03 budget). The monthly rental fees would continue to apply to those requesting more than the initial five recycling carts¯. Clarification in the Utility Rate Schedule R-1, "Domestic Refuse Collection" As a result of some changes to other rate schedules, staff also recommends clarifying the service and rate language in the Utility Rate Schedule R-1. These changes include clarifications .of miscellaneous collection services available-and slight alterations of the pick up charges for bulky items to match the residential rates charged at the Palo Alto Landfill. CMR:258:02 Page 2 of 3 RESOURCE IMPACT The proposed rate changes in the permanent debris box service will increase Refuse Fund revenues by approximately $50,000. This is offset by the proposed change to eliminate monthly rental fees on recycling carts for the commercial sector, which will result in a loss of revenue by approximately $72,000 in the Refuse Fund. The cost for servicing residents in the hilly area of the City will increase expenses by $20,979. These costs will be added to the proposed PASCO budget for FY 2002/2003. The proposed revisions to the R-1, ’Domestic Refuse Collection’, will not have .an impact on the Refuse Fund. ENVIRONMENTAL ASSESSMENT This project is not under the California Environmental Quality Act (CEQA) and, no further environmental review is necessary. ATTACHMENTS Attachment A: Resolution Attachment B: Utility Rate Schedules R-l, R-2, R-3 PREPARED BY: Michael Jackson, Deputy Director, Public Works/Operations Paula Borges, Executive Assistant, Public Works DEPARTMENT HEAD:~’ ~ GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL:~2I~Y HARRISON Assistant City Manager CMR:258:02 Page 3 of 3 ATTACHMENT A RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF ~PALO ALTO AMENDING UTILITY RATE SCHEDULES R-I,~ R-2 AND R-3 AND ELIMINATING SCHEDULE R-I-FA OF THE CITY OF PALO ALTO UTILITIES RATES AND. CHARGES PERTAINING TO REFUSE COLLECTION WHEREAS, the Council has considered the need for .an adjustment in refuse collection rates and recycling collection services; NOW, THEREFORE, the Council 6f the. City of Palo Alto does hereby RESOLVE as follows: SECTION i. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedules R-I (Domestic Refuse Collection), R-2 (Commercial Refuse Collection) and R-3 (Commercial Refuse Collection) of the Palo AIto Utilities Rates and Charges are amended to read in accordance with sheets R-l-l, R-2-2, R-3-3 and R-3-4, respectively, attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedules~ as amended, shall become effective on July i, 2002. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-I-FA (Refuse Collection) is hereby rescinded for Service Area two. SECTION 3. The Council finds that the revenue derived from the authorized adjustments of the aforementioned water, gas, wastewater, electric, and service utility rates shall be used only for the purposes set forth in Article VII, Section 2, of the.Charter of the City of Palo Alto. // // // // // 020509 syn 0072162 .SECTION 3. 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:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Utilities Director of Administrative Services 020509 syn 0072162 At ATTACHMENT B DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R- 1 APPLICABILITY: This schedule applies to each occupied* domestic dwelling as required by Citybrdinance. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land’ owned or leased by the City. RATES: Separate single-family domestic dwelling and apartment dwellings. Monthly Collection Cost Number of Cans One Mini-can $14.20 1 18.00 2 37.05 3 56.15 4 75.20 5 94.30 6 113.35 Two Three 75.20 113.35 151.50 189.80 227.95 113.35- 170.60 227.90 285.30 342.55 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-l-1 dated "1"1-22-1999 Effective July 1, 2002 Sheet No. R-l-1 DOMESTIC REFUSE COLLECTION Ea SPECIAL CHARGES/COLLECTION: UTILITY RATE SCHEDULE R- 1 (Continued) 1. Urgent special (refuse collection per cubic yard on non-standard collection day) ..........¯ $36.80 2. Return trip (same day, recycling or refuse) ......................................................................16.35 3.Extra can (curbside) .........................................................................................................6.50 4.Extra can (backyard) ........................................................................................................8.50 5.Handpickup (per cubic yard) ..........; ...............................................................................38.35 6.64 gallon cart rental .................................................. .......................................................1.35 7.95 gallon cart rental (waste) ................................................................................2 ............3.15 8.Cart wash .........................................~ ..............................: ...... .......................i ..................15.00 9.Bin lock installation .........................................................................................................97.00 10. Key service per pick-up ...................................................................................................2.30 11. Lock (PASCO provided) ......................... ...................................................................... ....16.50 12. Auto bar lock installation .................................................................................................129.35 13. Counter balance lid (3&4 yd) ......................................................: ...................................58,00 14. Counter balance lid (5&6 yd) ..........................................................................................67.50 15. Temporary bin-delivery (1) ..................................................................., ..........................54.60 16. Temporary bin-delivery (2) ..............................................................................................75.00 17. Temporary bin-delivery (3) ..............................................................................................95.50 18. Temporary bin-delivery (4) ...............................................................................................150.00 19. Temporary bin-weekly fee ....., ..........................................................................: ..............16.50 20. Stove/washerldryer/water heater pickup * ........................... .................................... .........20100 21 Freezer/refrigerator/airconditioner ’*".pickup . ..................................................................20.00 22. Upholstered furniture pickup(per unit) * ............................................... .........................5.00 23. Mattress pickup *"5.00 24. Tire pickup (per tire, limit of 4 tires) *" 5.00 25. Cart clean out (by hand) ......, ............................................................................................10.00 26. Cart contamination (entire cart dumped) .............................~ ............................................20.00 27. Repair rate ............ ................~ ..............." ....................................................1.50/min + material 28. Miscellaneous 1 person service rate ...................................: .................................2.10/rain 29. Miscellaneous 2 person service rate .....................................................................2.70/min 30.95 gallon cart rental (recycling/compost) ........................................................................1.60 31. Sur-charge special i ......................................................... ..................................................52.50 ¯ There’s an additional collection charge of $52.50 SPECIAL NOTES: An occupied dwelling unit is defined as any home, apartment unit, cottage, flat, duplex unit, having kitchen, bath, and sleeping facilities, and to which gas or electric service is being rendered. Mini-can service cannot be combined with any other can service. The mini-can and the one, 32-gallon can service is limited to one collection per week. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-’I-1 dated 11-22-’1999 Effective July 1, 2002 Sheet No. R-l-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 BD APPLICABILITY: This schedule applies to all occupied* establishments other than domestic dwellings as required by City ordinance. TERRITORY: Within the incorporated limits of the City of Palo Al-to and on land owned or leased by the City. Co RATES: Minimum charge is for one 32-gallon container ....................................................................$18.00 Monthly Collection Cost Number of Cans 1" 2 3 4 5 6 Collection Frequency per Week One Two Three Four Five Six $18.00 37.05 $75.20 $113.35 $151.55 $189.65 56.15 113.35 170.60 227.90 285.05 75.20 151.50 227.90 304.30 380.70 94.30 189.80 285.30 380.80 476.30 113:35 227.95 342.55 457.15 571.75 $227.80 342.25 457.10 571.80 686.35 * The minimum service (one, 32-gallon can service) is limited to one collection per week. **An occupied establishment is defined as one to which gas or electric service is being rendered. CITY OF PALOALTO UTILITIES Issued bythe Cffy Council Supersedes Sheet No.R-2-2 dated 11-22-~999 Effective Date July 1, 2002 Sheet No. R-2-1 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 SPECIAL CHARGES/COLLECTION: 1.Urgent special (refuse collection per cubic yard on non-standard collection day) ..........$36.80 2.Urgent special (recycling pick-up on non-standard collection day) ................................52.50 3.Return trip (same day) ................~ ....................................................................................25.00 4.Retumtrip (same day, for recycling) ...............................................................................16.35 5.,Return trip (nextday) ....................................., .................................................................16.35 6.Compacted rate (per cubic yard/collection) .....................................................................36.80 7.Hand pick-up (per cubic yard) ............................................¯ .............................................38.35 8.64 gallon cart rental ............................................................ ....: ........................................1.35 9.95 gallon cart rental (waste) ................................... ..........................................................3.15 10. Bin wash .....................................................................................................................: .....27.05 11. Compactor/drop box wash ...............................................................................................55.85 12. Cart wash .........................................................................................................................15.00 13. Bin lock installation ......................................................................................’ ...................97.00 14. Cart lock installation (for recycling) ................................................................-. ...............25.00 15. Key service per pick-up ...................................................................................................2.30 16. Lock (PASCO provided) .....................~ ............................................................................16.50 17. Auto-bar lock installation ........................................................................ ........................129.35 18. Counter balance lid (3&4 yd) ...........................................................................................58.00 19. Counter balance lid (5&6 yd) ........................................." .................................................67.50 20. Mixed paper recycling on-call cart collection ................................................................1.15 21. Mixed paper, 64 gallon, monthly charge for weekly collection ......................................5.00 22. Mixed paper, on-call collection for 2 yd bins (per bin) ...................................................6.50 23. Temporary bin-delivery (1) ..............................................................................................54.60 24. Temporary bin-delivery (2) ............, .....:., ...........................................~ .............................75.00 25. Temporary bin-delivery (3) ..............................................................................................95.50 26. Temporary bin-delivery (4) .........................................: .....................................................150.00 27. Temporary bin-weekly fee .........................................i .................., ..........................~ .......16.50 28. Stove/washer/dryer/heater pick-up * ...............................................................................25.00 29. Freezer/refrigerator/air conditioner pick-up * .................................................................25.00 30. Upholstered furniture pick:up * .......................................................................................10.00 31. Mattress pick-up* ............." ..................................................~ ...................................., .......10.00 32. Tire pick-up (per tire, limit of 4 tires) .* ...........................................................................10.00 33. Cart clean out (by hand) ...................................................................................................10.00 34. Cart contamination (entire cart dumped) .........................................................................20.00 35. Repair rate ..............................¯ ..................................................................1.50/min + material 36. Miscellaneous 1 person service rate ..........................................................................2.10/min 37.95 gallon cart rental (recycling/compost) .....: ......................................’ ............................1.60 38. Sur-charge special ............................................................................................................52.50 *There’s an additional collection charge of $52.50 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-2 dated 11-22-’1999 Effective Date July 1, 2002 Sheet No. R-2-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 At APPLICABILITY: This schedule applies to commercial establishments and multi-unit apartment dwellings using refuse containers rented from the contractor. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. C. RATES: COMMERCIAL BINS Monthly Collection Cost ¯ (Standard Service) Size (cubic yards) 1 $ 73.60 2 147.20 3 220.80 4 294.40 5 368.00 6 441.60 8 588.80 Collection Frequency 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week $152.20 $230.80 $309.40 $ 299.40 451.60 603.80 446.60 672.40 898.20 593.80 893.20 1,192.60 741.00 1.,114.00 1,487.00 888.20 1,334.80 1 ;781.40 1,182.60 _1,776~40 2,370.20 388.00 756.00 1 124.00 1 492.00 1 860.00 2 228.00 2 964.00 $ 466.60 908.20 1 349.80 1 791.40 2 233.00 2 674.60 3 557.80 Monthly Bin Rental $ 26.25 34.15 43.05 43.05 52.50 52.50 69.30 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-3-3 dated 9-1-99 Effective Date July 1, 2002 Sheet No. R-3-1 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 DEBRIS BOX SERVICE Delivery Service Total On-Carl Service 7 CY 15 CY $ 79.00 $79.00 342.00 342.00 421.00 421.00 20 CY 30 CY $79.00 $79.00 397.00 508.00 476.00 587.00 Non-use*$ 44.00 $ 44.00 Minimum 30.00 30.00Overfull Abandoned 40.00 40.00Service * Within a seven (7) day period Permanent Service Size Collection Frequency 1x/week 2x/week 3x/week 15 CY $1,334.27 $ 2,668.54 $ 4,002.81 20 CY 1,622.84 3,245.69 4,868.53 30 CY 2,084.10 4,168.19 6,252.29 44.00’$44.00 40.00 50.00 40.00 40.00 Monthly Box Renal $ 94.50 126.00 189.00 Yard Trimmings Debris Box Service Size Ix/week 2x/week 15 CY $ 225.79 $ 451.57 20 CY 263.41 526.82 30 CY 282.56 565.11 3x/week $ 677.36 790.22 847.67 Monthly Box Rental $ 94.50 126.00 189.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-3-3 dated 9-1-99 Effective Date July 1, 2002 Sheet No. R-3-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 STATIONARY PACKING CONTAINERS Compacted refuse (per compacted cubic yard) ..........................................................................$36.80 DETACHABLE CONTAINER RENTAL: Cubic Yard Per Month 1 2 3-4 5-6 8-10 15 20 30 .....................................................................................................................$ 26.25 .....................................................................................................................34.15 43.05 52.50 69.30 .....................................................................................................................94.50 .....................................................................................................................126.00 .....................................................................................................................189.00 SPECIAL PROVISION: The monthly charge to multi-unit apartment dwellings will be billed to the owner. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-3 dated 9-1-99 Effective Date July 1, 2002 Sheet No. R-3-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 SPECIAL CHARGES/COLLECTION: 1. Urgent special (refuse collection per cubic yard on non-standard collection day) .......$36.80 2. Urgent special recycling collection (on non-standard collection day) ......i ...................$52.50 3. Compactor/drop box wash ................... ...................................." ....................................55.85 4. Drop-box delivery ............................................................, ......................i ......................79.00 5.Drop-box non-use ............................" ................................................. ...............................44.00 6.15 yd box-overfull .................................................................: ..............................: ...........30.00 7.20 yd box-overfull ........................................ ....................................................................40.00 8.30 yd box-overfull ....................................... ........................~ ...................~ ........................50.00 9.On call compactor ............................................................................................................39.00 10. Stove/washer/dryer/water heater pickup * ........................................................................25.00 11. Freezer/refrigerator/air conditioner pickup * ....................................................................25.00 12. Upholstered furniture pickup * ........................................................................................10.00 13. Mattress pickup * .............................................................................................................10.00 14. Tire pickup (per tire, limit of 4 tires) * ..................................’ ..................; .......................10.00 15. Repair rate ....., .............................................................................................1.50/minmaterial 16. Miscellaneous 1 person service rate ..............................: ....~ .............., ........................2.10/min 17. Bin wash ...... ...............................................................................................................27.05 18.Bin lock installation ...................................................................................................97.00 19. Key service per pick-up .............................................................................................2.30 20. Lock (PASCO provided) ........................ .......................................................~.. ...........16.50 21. Auto-bar lock installation ..........................................................................................129.35 22. Counter balance lid (3&4 yd) ....................................................................................58.00 23. Counter balance lid (5&6 yd) ....................................................................................67.50 24. Temporary bin-delivery (1) .........................................................................................¯54.60 25. Temporary bin-delivery (2) .................................................................~ .......: ..............75.00 26. Temporary bin-delivery (3) .......................................................~ ................................95.50 27. Temporary bin-delivery (4) ........................................~ ...............................................150.00 28. Temporary bin-weekly fee ......i ..................................................................................16.50 29. Additional fee for delivery to Service Area 2 ............................................................42.00 ¯ There’s an additional collection charge of $52.50 {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Effective Date July 1, 2002 Original Sheet No. R-3-4