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.
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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.
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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)