Resolution 2011-33
1
RESOLUTION NO. 2011-33
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 Recology South Valley (or "Recology" and previously South
Valley Disposal & Recycling, Inc.), are currently parties to an Agreement Between the City of
Gilroy and Recology, dated September 2, 1997, ("Franchise Agreement"), and as amended on
July 6, 1999, and June 19,2000, by which the City granted to Recology 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 "]" of the Franchise Agreement; and
WHEREAS, the documentation for this rate adjustment is set forth in the City Staff
report dated June 6, 2011, including the letter from Recology dated February 22,2011, which is
attached hereto as Exhibit "A" and incorporated by this reference.
RESOLUTION NO. 2011-33
2
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
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", which is
attached hereto and incorporated herein by this reference, to become effective on July 1,2011.
PASSED AND ADOPTED at a Regular Meeting of the City Council this 6th day of
June, 2011 by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, BRACCO,
DILLON, LEROE-MuNOZ, WOODWARD and PINHEIRO
NOES:
COUNCILMEMBERS:
TUCKER
ABSENT:
COUNCILMEMBERS:
NONE
APPROVED:
----
ATTEST;] ~
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RESOLUTION NO. 2011-33
February 22, 2011
City of Gilroy
Mr. Tom Haglund
City Administrator
7351 Rosanna Street
Gilroy, CA 95020
Re: July 2011 Rate Adjus~ent
Dear Mr. Haglund:
As outlined in Exhibit "J" section A thru E of the September 7, 1997 franchise agreement, we
submit our request for 2.20% adjustment to the collection rates effective July 1, 2011. 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.
Exhibit 2A - CPI Documentation
A print out 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
A print out from the U.S. Department of Labor - Bureau of Labor Statistics 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, 2011.
I have included an analysis of the last three year's rate adjustments, along with this year's
proposed rate adjustment. Please note that if next year's contractually calculated CPI adjustment
is estimated to be 2.0%, a 4.31 % adjustment in rates will be needed to achieve the correct rate.
Should you have any questions or need additional information, please call me at (408) 846-1395
Sincerely,
Phil Couchee
General Manager
EXHIBIT A
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATE ADJUSTMENT
EFFECTIVE JULY 1, 2011
CPI RATE ADJUSTMENT
Formula outlined in Exhibit II J" Section A thru E of the
September 2, 1997 Franchise Agreement.
Consumer Price Index Values
X (I) = December, 2010 =
X (1-2) = December, 2009 =
CPI=
CPI=
70% of CPI = II
Motor Fuel Index Values
X (I) = December, 2010 =
X (1-2) = December, 2009 =
MFI=
MFI=
10% of MFI = II
Total CPI Rate Adjustment Percentage:
FY2011-Rate-lncr (4).xls
EXHIBIT A
Exhibit 1
X (I) - X (1-2)
X (1-2)
227.66
224.24
227.66 -224.24
224.24
1.52%
1.06%~
246.29
221.11
246.29 - 221.11
221.11
11.39%
1.14%1'
II
2.20%11
5/19/2011 4:06 PM
Bureau of Labor Statistics Data
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EXHIBIT A
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2011
DESCRIPTION
Current
Rates
New
Rates
Add
2.20%
1. Residential Customers and Multi-Family Can Customers (Including Rec;ycIJngJ.
1-Can 26.22 0.58 26.80
2-Cans 37.62 0.83 38.45
3-Cans 49.32 1.09 50.41
4-Cans 63.08 1.39 64.47
Each Additional Can 13.75 0.30 14.05
Extra Can/Bag Tag 5.51 0.12 5.63
Bulky Item Pickup (Plus Disposal Cost) 16.51 0.36 16.87
Toter Subscription Changes 13.75 0.30 14.05
Low Income Senior
1-Can
2-Cans
3-Cans
4-Cans
22.09
31.41
41.11
50.83
Hillside
1-Can
2-Cans
3-Cans
4-Cans
31.66
45.10
58.87
72.65
2. Multi-Family Bin Customer Recvclin.g
Per Unit Charge
For recycling service only
(option to choose Commercial Service)
2.07
3. Commercial and Multi-Family Bin Customer (Refustf)
1-Can 26.22
2-Cans 39.67
3-Cans 53.47
4-Cans 67.22
Each Additional Can 14.89
4. Commercial Front Loader Service Rates
2 Yard F/L (1x1wk) 175.69
2 Yard F/L (2x1wk) 329.84
2 Yard F/L (3x1wk) 483.96
2 Yard F/L (4x1wk) 638.14
2 Yard F/L (5x1wk) 792.27
2 Yard F/L (6x/wk) 946.41
2 Yard F/L (on call) 114.38
3 Yard F/L (1x1wk) 253.19
3 Yard FIL (2x1wk) 477.15
EXHIBIT B
0.49
0.69
0.90
1.12
0.70
0.99
1.30
1.60
0.05
0.58
0.87
1.18
1.48
0.33
3.87
7.26
10.65
14.04
17.43
20.82
2.52
5.57
10.50
22.58
32.10
42.01
51.95
32.36
46.09
60.17
74.25
2.12
26.80
40.54
54.65
68.70
15.22
179.56
337.10
494.61
652.18
809.70
967.23
116.90
258.76
487.65
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2011
Current Add New
DESCRIPTION Rates 2.20% Rates
3 Yard FIL (3xJwk) 701.07 15.42 716.49
3 Yard FIL (4xJwk) 925.01 20.35 945.36
3 Yard FIL (5x/wk) 1,148.95 25.28 1,174.23
3 Yard FIL (6xJwk) 1,372.88 30.20 1,403.08
3 Yard F/L (on call) 163.07 3.59 166.66
4 Yard F/L (1xJwk) 339.61 7.47 347.08
4 Yard FIL (2x/wI<) 642.46 14.13 656.59
4 Yard F/L (3x1wk) 945.29 20.80 966.09
4 Yard F/L (4x/wk) 1,248.15 27.46 1,275.61
4 Yard F/L (5x1wk) 1,551.01 34.12 1,585.13
4 Yard F/L (6x/wk) 1,853.84 40.78 1,894.62
4 Yard F/L (on call) 226.50 4.98 231.48
6 Yard FIL (1x1wk) 494.58 10.88 505.46
6 Yard F/L (2x1wk) 940.51 20.69 961.20
6 Yard F/L (3xJwk) 1,386.45 30.50 1,416.95
6 Yard F/L (4xJwk) 1,832.39 40.31 1,872.70
6 Yard F/L (5x/wk) 2,278.33 50.12 2,328.45
6 Yard F/L (6x1wk) 2.724.25 59.93 2,784.18
6 Yard F/L (on call) 310.55 6.83 317.38
Front Loader Special (per cubic yard) 18.89 0.42 19.31
5. Compactor Service
Front Loader (per cubic yard) 40.35 0.89 41.24
3-yd FIL compactor (1x/wk) 525.61 11.56 537.17
3-yd FIL compactor (2x/wk) 1,050.07 23.10 1,073.17
3-yd FIL compactor (3x1wk) 1,574.52 34.64 1,609.16
6. Debris Box Rates
20 Cubic Yard Debris Box, 427.65 9.41 437.06
Per ton charge (over 3 tons) 82.58 1.82 84.40
40 Cubic Yard Debris Box, 712.66 15.68 728.34
Per ton charge (over 6 tons) 82.58 1.82 84.40
Debris Box Compactors 40.35 0.89 41.24
(per cubic yard of capacity)
20 Cubic Yard Debris Box (recyclable) 264.90 5.83 270.73
40 Cubic Yard Debris Box (recyclable) 468.77 10.31 479.08
7. AddHional Street SWlH#ping
M-F 8:00am-5:00pm (Per Hour) 101.50 2.23 103.73
Sat-Sun 8:00am-5:00pm-Per Hr+4hr Minimum 169.18 3.72 172.90
EXHIBIT B
I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2011-33 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 special meeting of said Council
held on the 6th day of June, 2011, 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 7th day of June, 2011.
Sha Freels, CMC
Ci Clerk of the City
(Seal)