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Resolution 2005-34RESOLUTION NO. 2005 -34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY SETTING MAXIMUM CHARGES FOR THE COLLECTION OF GARBAGE, RUBBISH, REFUSE AND RECYCLABLE MATERIALS WHEREAS, Chapter 12 of the Gilroy City Code provides that the City of Gilroy ( "City ") may contract for the collection, removal and transportation of garbage, rubbish, refuse and recyclable materials in the City; and WHEREAS, the City and South Valley Disposal & Recycling, Inc., are currently parties to an Agreement Between the City of Gilroy and South Valley Disposal & Recycling, Inc. (SVDR), dated September 2, 1997, ( "Franchise Agreement"), and as amended on July 6, 1999, and June 19, 2000, by which the City granted to SVDR the franchise to collect, transport and dispose of garbage, rubbish, refuse and recyclable materials produced within the city limits for the benefit and in the interest of the health, safety and welfare of its citizens; and WHEREAS, the Franchise Agreement provides that after the third year of the Franchise Agreement, the rates and charges set forth in the Agreement shall be subject to adjustments which correspond to increases or decreases in price indexes in accordance with the terms and conditions set forth in Exhibit "J" of the Franchise Agreement; and WHEREAS, the documentation for this rate adjustment is set forth in the City Staff report dated May 11, 2005, and the letter from SVDR dated February 22, 2005, attached hereto as Exhibit "A" and incorporated by this reference. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy hereby adopts the maximum charges and rates for collection of garbage, rubbish, refuse and ILAC1658806.1 01- 051605- 04706083 Resolution No. 2005 -34 recyclable materials as adjusted in accordance with the terms and conditions set forth in Exhibit "J" of the Franchise Agreement, such charges and rates are set forth in Exhibit "B" attached hereto and incorporated herein by this reference, to become effective on July 1, 2004. PASSED AND ADOPTED this 6th day of June, 2005 by the following vote: AYES: COUNCILMEMBERS: CORREA, DILLON, GARTMAN, MORALES, VALIQUETTE, VELASCO, and PINHEIRO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ATTEST: � L Rhonda Pellin, City Clerk 1AC1658806.1 01 -051605- 04706083 -2- APPROVED: ert Pmheiro, Mayor Resolution No. 2005 -34 EXHIBIT A M People • Service • Environment SOUTH VALLEY DISPOSAL & RECYCLING, INC. February 22, 2005 City of Gilroy Mr. Jay Baksa City Administrator 7351 Rosanna Street Gilroy, CA 95020 Re: July 2005 Rate Adjustment Dear Mr. Baksa: As outlined in Exhibit "J" section A thru E of the September 7, 1997 franchise agreement, we submit our request for adjustment to the collection rates effective July 1, 2005. Attached are the following exhibits; Exhibit 1 - CPI Calculation CPI calculation using the formula described in Exhibit "J" of the franchise agreement for the Consumer Price Index and the Motor Fuel Index. We also added the special one -time adjustments for the partial cost of retrofitting the collection trucks with a devise to reduce diesel emissions (see discussion below). Exhibit 2A — CPI Documentation Copy of print out from the U.S. Department of Labor - Bureau of Labor Statistics web site displaying the required values of the CPI calculation. Exhibit 213 — Motor Fuel Index Documentation Copy of print out from the U.S. Department of Labor - Bureau of Labor Statistics web site displaying the required values of the MFI calculation. Exhibit 3 — Rate Schedule This table applies the combined CPI factor to the current rates and calculates the adjusted rates for July 1, 2005. The California Air Resources Board adopted a new regulation, effective July 2004, which requires solid waste collection vehicles to reduce emissions of particulate matter. South Valley Disposal and Recycling operates 15 vehicles in the City of Gilroy, which will require this retrofit. A grant has been applied for to the Bay Area Air Quality Management District to help offset approximately 50% of the $20,000 per vehicle cost. South Valley Disposal is requesting that the remaining cost be shared, 25% being paid for by the company and 25% be incorporated into the rates. Section 10 (d) (1) Special Requests for Extraordinary Rate Adjustment allows for costs 1351 PACHECO PASS HWY • GILROY, CA 95020 -9579 • TELEPHONE (408) 842 -3358 • FAX (408) 842 -5664 Proud To Be Employee Owned PRINTED ON RECYCLED PAPER '4Y that are a result of changes in laws or regulations to be incorporated into rates, in addition to the annual indexed amount. Completion of the retrofits will be completed within 4 years, at which time the expense can be eliminated from the rates. As required by the new regulation, South Valley and Disposal has also begun using Ultra -low Sulfur Diesel at an additional cost of $0.05 to $0.06 per gallon. This change, along with the retrofitted devise, will reduce particulate matter from the emission by more than 85 %. The company is not asking for any additional compensation for this increased cost. If you have any questions, please give me a call at (408) 846 -1395. I: Phil Couchee General Manager Cc: Lisa Jensema, City of Gilroy SOUTH VALLEY DISPOSAL AND RECYCLwvG, INC. CITY OF GILROY RATE ADJUSTMENT EFFECTIVE JULY 1, 2005 CPI RATE ADJUSTMENT Formula outlined in Exhibit "J" Section A thru E of the X (1) - X (1 -2) September 2, 1997 Franchise Agreement. X (1 -2) Consumer Price Index Values X (1) = December, 2004 = 199.5 X (1 -2) = December, 2003 = 195.3 CPI = 199.5 -195.3 195.3 CPI = 2.15% 70% of CPI = 1.51 Motor Fuel Index Values X (1) = December, 2004 = 163.3 X (1 -2) = December, 2003 = 126 Special One Time Adiustments Residential Revenue Commercial Revenue Debris Box Revenue Total Revenue: Deisel Exhaust Reduction Retrofit MFI = 163.3 -126.0 126 MFI = 29.60% 10% of MFI = 2.96% Monthly Yearly 257,563 3,090,756 300,867 3,610,404 85,304 1,023,648 7,724,808 20,00011 0.26% Grand Total Rate Increase Percentage: 4.73% FY2005- Rate - Incr.xls Exhibit 1 2/22/2005 9:27 AM Bureau of Labor Statistics D ,-' ........ ANT.i. U.S. Department "ANT,, of Labor Bureau of Labor .. ° Statistics Bureau of Labor Statistics Data www.bls.gov re Page 1 of 1 ML - i Search I A -Z Index BLS Home I Programs & surveys j Get Detailed Statistics I Glossary ( What's New I Find It! In DOL Data extracted on: February 11, 2005 (04:40 PM) Consumer Price Index -All Urban Consumers Series Catalog: Series ID : cuura422sa0 Not Seasonally Adjusted Area : San Francisco - Oakland -San Jose, CA Item : All items Base Period : 1982 -84 =100 Data: year I San I Feb I Mar I Apr I May I Jun I Jul I Aug I Sep I Oct I Nov I Dec I Ann 1995 150.3 150.5 151.1 151.5 151.3 151.7 151.5 151.5 152.3 152.6 152.4 152.1 151.6 199fi 152.9 153.2 152.9 153.9 155.1 155.2 155.9 155.6 156.3 156.9 156.9 156.0 155.1 199? 157.0 157.9 159.2 159.6 159.8 160.0 160.6 161.2 161.6 162.5 162.6 162.6 160.4 1998 163.2 164.6 165.5 166.6 167.2 167.4 165.5 1999 169.4 172.2 171.8 173.5 175.2 174.5 172.5 2000 176.5 178.7 179.1 181.7 183.4 184.1 180.2 2001 187.9 189.1 190.9 191.0 191.7 190.6 189.9 2002 191.3 193.0 193.2 193.5 194.3 193.2 193.0 2003 197.7 197.3 196.3 196.3 196.3 195.3 196.4 2004 198.1 198.3 199.0 198.7 200.3 199.5 198.8 2005 F o data available r this year. Back. to___ToP_ www.dol.yo_v. Frequently Asked Questions I Freedom of Information Act I Customer Survey Privacy & Security Statement I Linking to Our Site ( Accessibility http : / /data.bls.gov /cgi- bin/srgate 2/11/2005 Bureau of Labor Statistics D? Page 1 of 1 • M IM • • ». ureauOT Laoor Statistics Bureau of Labor Statistics Data www.b1s.gov Search 1 A -Z Index BLS Home I Programs & Surveys ( Get Detailed Statistics I Glossary I What's New I Find It! In DOL Data extracted on: February 11, 2005 (04:46 PM) Consumer Price Index -All Urban Consumers Series Catalog: Series ID : cuura422setb Not Seasonally Adjusted Area : San Francisco - Oakland -San Jose, CA Item : Motor fuel Base Period : 1982 -84 =100 Data: IM 1�irml�im 1�95 1�7.9 1�7.4 106 .21106.41109.11111.31110.21108.41107.11107.91107.51106.81108.0 1996 107.8 108.2 111.7 123.2 126.4 122.5 120.4 116.8 112.4 108.4 102.4 99.2 113.3 1497 104.0 108.9 110.4 115.7 113.7 110.5 106.9 108.9 114.4 114.2 112.0 109.6 110.8 1998 108.2 104.1 98.7 97.9 104.2 103.0 101.5 99.5 97.4 95.4 93.7 93.8 99.8 1999 92.3 91.3 97.6 133.1 124.6 115.9 122.2 131.3 125.0 119.3 114.2 115.5 115.2 2000 114.4 118.8 142.6 145.1 137.7 136.4 144.8 141.7 152.5 149.5 147.8 141.7 139.4 2001 134.2 134.1 139.5 148.0 155.0 152.6 142.8 128.8 140.3 133.0 123.7 107.1 136.6 2002 100.0 100.0 112.4 126.3 123.4 125.3 127.5 126.1 125.1 123.2 128.4 125.8 120.3 2003 131.3 146.1 163.6 160.8 146.4 140.6 143.3 147.1 159.8 142.4 131.4 126.0 144.9 2004 128.5 142.3 161.1 163.7 172.3 175.2 168.3 161.0 160.9 178.8 178.7 163.3 162.8 2005 No data available for this year. Back ._to. Top www.dol.gov Frequently Asked Questions I Freedom of Information Act I Customer Survey Privacy & Security Statement ( Linking to Our Site ( Accessibility http : / /data.bls.gov /cgi- bin/srgate 2/11/2005 SO,-. ri VALLEY DISPOSAL AND RECYCL...G, INC. EXHIBIT B CITY OF GILROY RATES EFFECTIVE JULY 1, 2005 Current Add New DESCRIPTION Rates 4.73% Rates 1. Residential Customers and Multi - Familv Can Customers (Including Recvclin 1 -Can 21.76 1.03 22.79 2 -Cans 31.21 1.48 32.69 3 -Cans 40.92 1.94 42.86 4 -Cans 52.35 2.48 54.83 Each Additional Can 11.41 0.54 11.95 Extra Can /Bag Tag 4.57 0.22 4.79 Bulky Item Pickup (Plus Disposal Cost) 13.70 0.65 14.35 Toter Subscription Changes 11.41 0.54 11.95 Low Income Senior 1 -Can 18.32 0.87 19.19 2 -Cans 26.07 1.23 27.30 3 -Cans 34.12 1.61 35.73 4 -Cans 42.18 2.00 44.18 Hillside 1 -Can 26.28 1.24 27.52 2 -Cans 37.43 1.77 39.20 3 -Cans 48.84 2.31 51.15 4 -Cans 60.29 2.85 63.14 2. Multi - Family Bin Customer Recycling Per Unit Charge 1.72 0.08 1.80 For recycling service only (option to choose Commercial Service) 3. Commercial and Multi - Familv Bin Customer (Refuse 1 -Can 21.76 1.03 22.79 2 -Cans 32.92 1.56 34.48 3 -Cans 44.37 2.10 46.47 4 -Cans 55.78 2.64 58.42 Each Additional Can 12.36 0.58 12.94 4. Commercial Front Loader Service Rates 2 Yard F/L (lx/wk) 145.79 6.90 152.69 2 Yard F/L (2x/wk) 273.70 12.95 286.65 2 Yard F/L (3x/wk) 401.60 19.00 420.60 2 Yard F/L (4x/wk) 529.54 25.05 554.59 2 Yard F/L (5x/wk) 657.44 31.10 688.54 2 Yard F/L (6x/wk) 785.34 37.15 822.49 2 Yard F/L (on call) 94.91 4.49 99.40 3 Yard F/L (lx/wk) 210.10 9.94 220.04 3 Yard F/L (2x/wk) 395.94 18.73 414.67 FY2005- Rate- Incr.xls Exhibit 3 2/22/2005 9:27 AM SO.-. H VALLEY DISPOSAL AND RECYCLAG, INC. CITY OF GILROY RATES EFFECTIVE JULY 1, 2005 DESCRIPTION Current Rates Add 4.73% New Rates 3 Yard F/L (3x/wk) 581.76 27.52 609.28 3 Yard F/L (4x/wk) 767.59 36.31 803.90 3 Yard F/L (5x/wk) 953.42 45.10 998.52 3 Yard F/L (6x/wk) 1,139.24 53.89 1,193.13 3 Yard F/L (on call) 135.32 6.40 141.72 4 Yard F/L (lx/wk) 281.82 13.33 295.15 4 Yard F/L (2x/wk) 533.12 25.22 558.34 4 Yard F/L (3x/wk) 784.43 37.10 821.53 4 Yard F/L (4x/wk) 1,035.74 48.99 1,084.73 4 Yard F/L (5x/wk) 1,287.05 60.88 1,347.93 4 Yard F/L (6x/wk) 1,538.36 72.76 1,611.12 4 Yard F/L (on call) 187.96 8.89 196.85 6 Yard F/L (1 x/wk) 410.41 19.41 429.82 6 Yard F/L (2x/wk) 780.45 36.92 817.37 6 Yard F/L (3x/wk) 1,150.51 54.42 1,204.93 6 Yard F/L (4x/wk) 1,520.56 71.92 1,592.48 6 Yard F/L (5x/wk) 1,890.60 89.43 1,980.03 6 Yard F/L (6x/wk) 2,260.64 106.93 2,367.57 6 Yard F/L (on call) 257.70 12.19 269.89 Front Loader Special (per cubic yard) 15.67 0.74 16.41 5. Compactor Service Front Loader (per cubic yard) 33.49 1.58 35.07 3 -yd F/L compactor (1x/wk) 436.16 20.63 456.79 3 -yd F/L compactor (2x /wk) 871.36 41.22 912.58 3 -yd F/L compactor (3x/wk) 1,306.57 61.80 1,368.37 6. Debris Box Rates 20 Cubic Yard Debris Box, 354.86 16.78 371.64 Per ton charge (over 3 tons) 68.53 3.24 71.77 40 Cubic Yard Debris Box, 591.35 27.97 619.32 Per ton charge (over 6 tons) 68.53 3.24 71.77 Debris Box Compactors 33.49 1.58 35.07 (per cubic yard of capacity) 20 Cubic Yard Debris Box (recyclable) 219.80 10.40 230.20 40 Cubic Yard Debris Box (recyclable) 388.98 18.40 407.38 7. Additional Street Sweepin_a M -F 8:00am- 5:00pm (Per Hour) 84.23 3.98 88.21 Sat -Sun 8:00am- 5:00pm -Per Hr +4hr Minimum 140.39 6.64 147.03 FY2005- Rate- Incr.xls Exhibit 3 2/22/2005 9:27 AM I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2005 -34 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 6th day of June, 2005, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 28th day of June, 2005. City lerk of the City of Gilroy (Seal)