Resolution 2004- 56
RESOLUTION NO. 2004-56
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 ofthe 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 21, 2004, and the letter from SVDR dated February 20, 2004, 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
\JH\625836.1
01-060204-04706093
-1-
Resolution No. 2004-56
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 ih day of June, 2004 by the following vote:
AYES:
COUNCILMEMBERS:
CORREA, DILLON, MORALES,
V ALIQUETTE, VELASCO, and
PINHEIRO
NOES:
COUNCILMEMBERS:
GARTMAN
ABSENT:
COUNCILMEMBERS:
NONE
APPROVED:
~
ATTEST:
~9~
Rhonda Pellin,. City Clerk
\JH\625836,1
01-060204-04706093
-2-
Resolution No. 2004-56
I. "
EXHIBIT A
CITY OF GILROY
COMMUNITIY SERVICES DEPARTMENT
MEMORANDUM
DATE:
May 21,2004
TO:
Jay Baksa, City Administrator / /
Lisa Jensema, Environmental Programs COOrdin~
. I
SUBJECT: Annual Rate Adjustment and New Program Pr6posal
..................................................................................
FROM:
Back2round:
At the Council Study Session on May 17, it was decided that staff can move forward with a
recommendation to approve South Valley Disposal & Recycling's (SVDR) annual rate
adjustment, including four new programs, for a total of 4.61 % to be added to the collection rates
effective July 1,2004. Under the franchise agreement, SVDR is allowed an annual rate
adjustment comprised from a formula using a combination the Consumer Price and Motor Fuel
Index Values. The July 2003 rate adjustment was 1.4%.
Staffhas reviewed this request and supporting documentation and has determined that it satisfies
the formula approved in Exhibit "r' Section A through E of the franchise agreement dated July
1, 1997 between the City and SVDR. The agreement states that SVDR is allowed an adjustment
using a formula of 70% of the Consumer Price Index and 100.10 of the Motor Fuel Index.
In addition, this memo discusses four program options for review and consideration including; a
weekly yardwaste/organics recycling program, scrap metal and plastic bag recycling, consultant
services, and a part-time staff position for enforcement of the Blight Ordinance. If all program
options are approved, the rate increase would be 4.61%.
Discussion:
Weekly YardwastelOrganics Recycling Program-Currendy the residential yardwaste recycling
program is every other week collection. The new program would increase the collection to once
a week and include the addition of food waste. Food waste includes all food scraps including
meats, vegetables, fruits, grains and dairy. This will reduce the amount of waste that households
dispose into their refuse containers. It is estimated that approximately 20-30% ofa household's
waste is comprised of food waste which offers a great opportunity for a household to reduce the
amount of trash that goes to the landfill. Also, by placing food waste into the yard waste
container instead of the garbage disposal, it reduces the demand on the sewer treatment plant.
Additional Curbside Recycling Commodities-Residents will be able to add scrap kitchen type
metals such as old pots and pans, and plastic type grocery bags to the existing curbside recycling
program.
'.
These programs will further reduce the amount of material being land filled and will continue to
meet and/or exceed the State Mandated recycling goals of AB 939.
Consulting Fees-The City began working with Pacific Waste Consulting Group (pWCG)
about three years ago to help the City meet the 50% state mandated recycling goal. This
Company was instrumental in Gilroy reaching the state goal and has been continuing to work
with the City to further comply with the requirements of AB 939. Along with helping the City
achieve the 50% goal, PWCG has assisted in writing the Annual Report, enhanced our
commercial recycling program, and assisted in setting up a recycling and compo sting program
for the Garlic Festival. PWCG offers the City innovative ideas and expertise, and maintains
close working relationships with members of the California Integrated Waste Management
Board which sets the requirements for meeting the goals of AB 939.
Part-time Enforcement Staff-The City does not have a code enforcement officer to carry out
the enforcement of Chapter 12 of the City Code, "Garbage, Refuse and Weeds" and to enforce
the recently adopted Blight Ordinance. There are four main reasons this position would be
beneficial to the City and to SVDR. 1) Standardize the complaint process into one department or
division's responsibility. 2) Provides consistent enforcement and the necessary follow up
resources. 3) Successful goals of the Blight Ordinance can be more efficiently achieved, and 4)
City could support and protect SVDR from non-franchised haulers taking franchise fee revenues
away from City.
The programs and rates below show a total increase of 4.61 % if all the program options are
implemented. The average residential customer's monthly bill would change from $20.80 to
$21.76.
). Annual Rate Adjustment
). Weekly Residential YardwastelOrganics
). Consulting Services
). Part-time Enforcement staff
0.78%
2.32%
0.96%
0.55%
Total:
4.610/0
Recommendation:
Staff recommends that the City approve the 4.61 % rate increase to be effective July 1, 2004.
Staff recognizes that these program options are necessary, important, and combine a
comprehensive approach for the City to maintain and exceed the state mandated goals of AB
939.
Attachments: Rate Adjustment letter from SVDR dated February 20, 2004
, CPI Documentation, Bureau of Labor Statistics Data
Collection Rates Effective July 1, 2004
~
It
People · Service · Environment
SOUTH VALLEY DISPOSAL & RECYCLING, INC.
February 20, 2004
City of Gilroy
Mr. Jay Baksa
City Administrator
7351 Rosanna Street
Gilroy, CA 95020
Re: July 2004 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, 2004. 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 consulting fees and staff labor to be paid for the City. Lastly, we added the
special one-time adjustment for weekly residential collection of yard waste and organics.
Exhibit 2A - CPI Documentation
Copy of fax from the U.S. Department of Labor - Bureau of Labor Statistics displaying the
required values of the CPI calculation.
Exhibit 2B - Motor Fuel Index Documentation
Copy of fax from the U.S. Department of Labor - Bureau of Labor Statistics displaying the
required values ofthe MFI calculation.
Exhibit 3 - Rate Schedule
This table applies the combined CPI factor to the current rates and calculates the adjusted rates
forJuly 1,2004.
Should you have any questions or need additional information, please call me at (408) 847-5700,
Sincerely,
ave Vaughn
n ral Manager
7110 ALEXANDER STREET · GilROY, CA 95020-6609 · TELEPHONE (408) 842-3358 · FAX (408) 842-5664
Proud To Be Employee Owned
PRINTED ON RECYCLED PAPER
'..
SOUTH VALLEY DISPOSAL AND RECYCLING, INC.
CITY OF GILROY
RATE ADJUSTMENT
EFFECTIVE JULY 1, 2004
CPI RATE ADJUSTMENT
Formula outlined in Exhibit "J" Section A thru E of the X (I) - X (1-2)
September 2, 1997 Franchise Agreement. X (1-2)
Consumer Price Index Values
X (I) = December, 2003 = 195.3
X (1-2) = December, 2002 = 193.2
CPI = 195.3-193.2
193.2
CPI = 1.09%
70% of CPI = II 0.76%11
Motor Fuel Index Values
X (I) = December, 2003 = 126.0
X (1-2) = December, 2002 = 125.8
MFI = 126.0-125.8
125.8
MFI = 0.16%
10% of MFI = 0.02%
Special One Time Adiustments
Residential Revenue
Commercial Revenue
Debris Box Revenue
Total Revenue:
Monthly
235,540
280,558
89,020
City Consulting Fees & Staff Labor
Weekly Residential Yardwaste/Organic
Grand Total Rate Increase Percentage:
II
4.61%11
FY2004-Rate-1 ncr .xls
Exhibit 1
2/19/2004 3:44 PM
CPI DOCUMENTATION
Page 1 of2
Bureau of Labor Statistics Data
u.s. Department
of Labor
Bureau of Labor
Statistics
Bureau of Labor Statistics Data
www.bls.gov Search I A-Z Index
B_L__"iliilme I PLq~I@ft1!i_l!t~~jJr\'-e~!'; I Get Detailed StatiJi!!l'.:!i I (iIQs~<!!\, I What'~!!?_w I fImLI..tL1rlJ.>9J..
Data extracted on: February 17, 2004 (06:23 PM)
Consumer Price Index-All Urban Consumers
Series Catalog:
Series ID : cuura422saO
Not Seasonally Adjusted
Area: San Francisco-Oakland-San Jose, CA
Item : All items
Base Period: 1982-84= 100
Data:
IYearl1 Jan I~~I Apr IIMayl~~IAug II Sep II Oct II Novll DecllAnnl
1199411147, 51~[W3.2l1148,oII148. 311148.11~1149.411149.411149.411149,811149.411148. 71
1199511150,311150,511151.111151. 511151.311151, 711151.511151.511152.311152,611152.411152,111151.6I
1199611152. 91~1152, 911153,911155.111155. 211155, 91~1156, 311156, 911156, 911156, 011155 ,11
1199711157.011157.911159,211159.611159.811160, 011160. 611161, 211161, 611162,511162,611162.611160.41
119981 1163,21 1164,61 1165.51 1166,61 1167,21 1167.411165,51
119991 1169.41 1172,21 1171.81 1173.51 1175.21 1174,511172.51
120001 1176,51 1178.71 1179,11 1181.71 1183.41 1184.111180.21
120011 1187,91 1189,11 1190.9\ 1191.01 1191. 71 190,61189,91
120021 ~ 1193,01 1193,21 1193.51 1194,31 193.2 193,0
120031 1197,71 1197,31 1196,31 1196,31 1196,31 195.3 196.4
12004\ No da.ta available
for thiS year,
@ai3~K tQ_IQR
ww~._d_QJ..g~y
EreqygJ'!:ly_A~k_ed-2-uestioJ:"-$ I f~~ed~I]LQ.fJnfo_..ro~tiooAc::t I 'M~j)m~_surv_~y
~dy_~_c::y_&_sg_C::!.I~itY-Sl~tent~Jlt I J"iJ,-kin9_to Our_Sjt~ I A~c::esJ!lbiljty
6rttf.9fd1t~Bl~~~~'~~ -bin! srgate
Exhibit 2A
2/17/20042tt1h8M
Bureau of Labor Statistics Data
CPI DOCUMENTATION
Page 1 of2
u.s. Department
of Labor
Bureau of Labor
Statistics
Bureau of Labor Statistics Data
www.bls.gov Search I A-Z Index
!l.lJi_HOrn!! I pr()gr~ms_& Surve~ I (i!!1J.l~taile_~U!~~i~Jics I ~Iossary I \Ml1.at~Neli\l I FincL!tL:InJ'?Ol
Data extracted on: February 17, 2004 (06:25 PM)
Consumer Price Index-All Urban Consumers
Series Cata log:
Series 10 : cuura422setb
Not Seasonally Adjusted
Area: San Francisco-Oakland-San Jose, CA
Item : Motor fuel
Base, Period: 19S2-S4= 100
Data:
IYearl1 Jan II Feb II Mar II Apr II May II Jun II Jul IIAugII Sep II Oct II Novll DecllAnnl
1199411101.411101,211102.111103,911104, 711105, 71~lllo.sllllo,sII112.sII112.611109,611107 .01
1199511107,911107 .411106,211106.411109,111111,311110, 21110S.411107 .111107,911107 ,511106,slllos.01
1199611107 ,slllos, 211111, 711123,211126.411122. 511120.411116.sII112.41110s.411102.41199.2 11113,31
1199711104. 011 lOS, 911110.411115. 711113,711110,511106, 91110s. 911114.411114.211112.011109,61111 o,sl
11998111Os,21~19s.7 1197.9 11104,211103.011101.51199.5 1197.4 1195.4 1193,7 1193.s 1199,s I
119991192.3 1191.3 1197.6 11133.111124.611115, 911122,211131,311125,ol~1114.211115. 511115.21
1200011114.41111s,sII142,611145.111137. 711136.411144,sII141. 711152,511149,511147 .sII141. 711139.41
1200111134,211134,l11139,51114s,011155,o11152.611142,sII12s,sII140.311133.011123, 71107 ,11136.61
1200211100,011100.011112.411126,311123.411125,311127 ,511126.111125,11~ 12S.4 125,S 120,3
1200311131,311146,lI1163,611160,SII146.411140.611143,311147 ,lI1159.sII142.41131.4 126,0 144.9
120041 No da.ta available
for this year,
@ Back t:~L'I()J.l
www.clQ~y
Frequently As~~dJ2~&'t~sti()J"$ I Free~~tol1'U)flnformation Act I Cust~m!!rSurvey
Priv~,-q_8t _S!!curityJitatement I ,,"-in.ldng to Our Site I Ag;~~_$j.bUity
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Exhibit 28
2/17/20042fl:1128<M
SOUTH VALLEY DISPOSAL AND RECYCLING, INC.
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2004
DESCRIPTION
Current
Rates
New
Rates
Add
4.61%
EXHIBIT B
1. Residential Customers and Multi-Family Can Customers (lncludino Recyclino).
1-Can 20.80 0.96 21.76
2-Cans 29.83 1.38 31.21
3-Cans 39.12 1.80 40.92
4-Cans 50.04 2.31 52.35
Each Additional Can 10.91 0.50 11.41
Extra Can/Bag Tag 4.37 0.20 4.57
Bulky Item Pickup (Plus Disposal Cost) 13.10 0.60 13.70
Toter Subscription Changes 10.91 0.50 11.41
Low Income Senior
1-Can
2-Cans
3-Cans
4-Cans
17.51
24.92
32.62
40.32
Hillside
1-Can
2-Cans
3-Cans
4-Cans
25.12
35.78
46.69
57.63
2. Multi-Family Bin Customer Recyclina
Per Unit Charge
For recycling service only
(option to choose Commercial Service)
1.64
3. Commercial and Multi-Family Bin Customer (Refuse)
1-Can 20.80
2-Cans 31.47
3-Cans 42.41
4-Cans 53.32
Each Additional Can 11.82
4. Commercial Front Loader Service Rates
2 Yard F/L (1x/wk)
2 Yard F/L (2x/wk)
2 Yard F/L (3x/wk)
2 Yard F/L (4x/wk)
2 Yard F/L (5x/wk)
2 Yard F/L (6x/wk)
2 Yard F/L (on call)
3 Yard F/L (1x/wk)
3 Yard F/L (2x/wk)
139.37
261.64
383.90
506.20
628.47
750.73
90.73
200.84
378.49
FY2004-Rate-1 ncr. xis
Exhibit 3
0.81
1.15
1.50
1.86
1.16
1.65
2.15
2.66
0.08
0.96
1.45
1.96
2.46
0.54
6.42
12.06
17.70
23.34
28.97
34.61
4.18
9.26
17.45
18.32
26.07
34.12
42.18
26.28
37.43
48.84
60.29
1.72
21.76
32.92
44.37
55.78
12.36
145.79
273.70
401.60
529.54
657.44
785.34
94.91
210.10
395.94
2/19/2004 3:44 PM
SOUTH VALLEY DISPOSAL AND RECYCLING, INC.
CITY OF GILROY
RATES EFFECTIVE JULY 1,2004
Current Add New
DESCRIPTION Rates 4.61% Rates
3 Yard F/L (3x/wk) 556.12 25.64 581.76
3 Yard F/L (4x/wk) . 733.76 33.83 767.59
3 Yard F/L (5x/wk) 911.40 42.02 953.42
3 Yard F/L (6x/wk) 1,089.04 50.20 1,139.24
3 Yard F/L (on call) 129.36 5.96 135.32
4 Yard F/L (1x/wk) 269.40 12.42 281.82
4 Yard F/L (2x/wk) 509.63 23.49 533.12
4 Yard F/L (3x/wk) 749.86 34.57 784.43
4 Yard F/L (4x/wk) 990.10 45.64 1,035.74
4 Yard F/L (5x/wk) 1,230.33 56.72 1,287.05
4 Yard F/L (6x/wk) 1,470.57 67.79 1,538.36
4 Yard F/L (on call) 179.68 8.28 187.96
6 Yard F/L (1x/wk) 392.32 18.09 410.41
6 Yard F/L (2x/wk) 746.06 34.39 780.45
6 Yard F/L (3x/wk) 1,099.81 50.70 1,150.51
6 Yard F/L (4x/wk) 1,453.55 67.01 1,520.56
6 Yard F/L (5x/wk) 1,807.28 83.32 1,890.60
6 Yard F/L (6x/wk) 2,161.02 99.62 2,260.64
6 Yard F/L (on call) 246.34 11.36 257.70
Front Loader Special (per cubic yard) 14.98 0.69 15.67
5. Comoactor Service
Front Loader (per cubic yard) 32.01 1.48 33.49
3-yd F/L compactor (1x1wk) 416.94 19.22 436.16
3-yd F/L compactor (2x1wk) 832.96 38.40 871 .36
3-yd F/L compactor (3x/wk) 1,248.99 57.58 1,306.57
6. Debris Box Rates
20 Cubic Yard Debris Box, 339.22 15.64 354.86
Per ton charge (over 3 tons) 65.51 3.02 68.53
40 Cubic Yard Debris Box, 565.29 26.06 591.35
Per ton charge (over 6 tons) 65.51 3.02 68.53
Debris Box Compactors 32.01 1.48 33.49
(per cubic yard of capacity)
20 Cubic Yard Debris Box (recyclable) 210.11 9.69 219.80
40 Cubic Yard Debris Box (recyclable) 371.84 17.14 388.98
7. Additional Street Sweeoina
M-F 8:00am-5:00pm (Per Hour) 80.52 3.71 84.23
Sat-Sun 8:00am-5:00pm-Per Hr+4hr Minimum 134.20 6.19 140.39
FY2004-Rate-1 ncr.xls
Exhibit 3
2/19/2004 3:44 PM
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2004-56 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
7th day of June, 2004, 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 29th day of June, 2004.
{;1/
/
~-,~~'
lerk of the City of Gilroy
(Seal)