Resolution 2012-181
RESOLUTION NO. 2012-18
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 "J" of the Franchise Agreement; and
WHEREAS, the documentation for this rate adjustment is set forth in the City Staff
report dated May 7, 2012, including the letter from Recology dated February 16, 2012, attached
hereto as Exhibit "A" and incorporated by this reference.
RESOLUTION NO. 2012-18
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" attached hereto and
incorporated herein by this reference, to become effective on July 1, 2012.
PASSED AND ADOPTED at a Regular Meeting of the City Council on this 7th day of May,
2012 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, DILLON,
LEROE- MUNOZ, WOODWARD, and PINHEIRO
NOES: COUNCILMEMBERS: TUCKER
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
bert Pinheiro, Mayor
ATTEST:
RESOLUTION NO. 2012-18
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2012
DESCRIPTION
Current
Rates
Add
5.40°
New
Rates
1. Residential Customers and Multi - Family
Can Customers
(including Recycling)
33.83
1 -Can
26.80
1.45
28.25
2 -Cans
38.45
2.08
40.53
3 -Cans
50.41
2.72
53.13
4 -Cans
64.47
3.48
67.95
Each Additional Can
14.05
0.76
14.81
Extra Can /Bag Tag
5.63
0.30
5.93
Bulky Item Pickup (Plus Disposal Cost)
16.87
0.91
17.78
Toter Subscription Changes
14.05
0.76
14.81
Low Income Senior
1 -Can
22.58
1.22
23.80
2 -Cans
32.10
133
33.83
3 -Cans
42.01
2.27
44.28
4 -Cans
51.95
2.81
54.76
Hillside
1 -Can
32.36
1.75
34.11
2 -Cans
46.09
2.49
48.58
3 -Cans
60.17
3.25
63.42
4 -Cans
74.25
4.01
78.26
2. Multi - Family Bin Customer Recycling
Per Unit Charge 2.12 0.11 2.23
For recycling service only
(option to choose Commercial Service)
3. Commercial and Multi - Family Bin Customer (Refuse
1 -Can
26.80
1.45
28.25
2 -Cans
40.54
2.19
42.73
3 -Cans
54.65
2.95
57.60
4 -Cans
68.70
3.71
72.41
Each Additional Can
15.22
0.82
16.04
4. Commercial Front Loader Service Rates
2 Yard F/L (1 x/wk)
179.56
9.70
189.26
2 Yard F/L (2x/wk)
337.10
18.20
355.30
2 Yard F/L (3x/wk)
494.61
26.71
521.32
2 Yard F/L (4x/wk)
652.18
35.22
687.40
2 Yard F/L (5x/wk)
809.70
43.72
853.42
2 Yard F/L (6x/wk)
967.23
52.23
1,019.46
2 Yard F/L (on call)
116.90
6.31
123.21
3 Yard F/L (lx/wk)
258.76
13.97
272.73
3 Yard F/L (2x/wk)
487.65
26.33
513.98
EXHIBIT B
FY2012- Rate -Incr Exhibit 3 2/17/2012 3:06 PM
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATES EFFECTIVE JULY 1, 2012
DESCRIPTION
Current
Rates
Add
5.40%
New
Rates
3 Yard F/L (3x/wk)
716.49
38.69
755.18
3 Yard F/L (4x/wk)
945.36
51.05
996.41
3 Yard F/L (5x/wk)
1,174.23
63.41
1,237.64
3 Yard F/L (6x/wk)
1,403.08
75.77
1,478.85
3 Yard F/L (on call)
166.66
9.00
175.66
4 Yard F/L (1x/wk)
347.08
18.74
365.82
4 Yard F/L (2x/wk)
656.59
35.46
692.05
4 Yard F/L (3x/wk)
966.09
52.17
1,018.26
4 Yard F/L (4x/wk)
1,275.61
68.88
1,344.49
4 Yard F/L (5x/wk)
1,585.13
85.60
1,670.73
4 Yard F/L (6x/wk)
1,894.62
102.31
1,996.93
4 Yard F/L (on call)
231.48
12.50
243.98
6 Yard F/L (1 x/wk)
505.46
27.29
532.75
6 Yard F/L (2x/wk)
961.20
51.90
1,013.10
6 Yard F/L (3x/wk)
1,416.95
76.52
1,493.47
6 Yard F/L (4x/wk)
1,872.70
101.13
1,973.83
6 Yard F/L (5x/wk)
2,328.45
125.74
2,454.19
6 Yard F/L (6x/wk)
2,784.18
150.35
2,934.53
6 Yard F/L (on call)
317.38
17.14
334.52
Front Loader Special (per cubic yard)
19.31
1.04
20.35
5. Compactor Service
Front Loader (per cubic yard) 41.24 2.23 43.47
3 -yd F/L compactor (1x/wk)
537.17
29.01
566.18
3 -yd F/L compactor (2x/wk)
1,073.17
57.95
1,131.12
3 -yd F/L compactor (3x/wk)
1,609.16
86.89
1,696.05
6. Debris Box Rates
20 Cubic Yard Debris Box,
437.06
23.60
460.66
Per ton charge (over 3 tons)
84.40
4.56
88.96
40 Cubic Yard Debris Box,
728.34
39.33
767.67
Per ton charge (over 6 tons)
84.40
4.56
88.96
Debris Box Compactors
41.24
2.23
43.47
(per cubic yard of capacity)
20 Cubic Yard Debris Box (recyclable)
270.73
14.62
285.35
40 Cubic Yard Debris Box (recyclable)
479.08
25.87
504.95
7. Additional Street Sweeping
M -F 8:00am- 5:00pm (Per Hour)
103.73
5.60
109.33
Sat -Sun 8:00am- 5:00pm -Per Hr +4hr Minimum
172.90
9.34
182.24
EXHIBIT B
FY2012- Rate -Incr Exhibit 3 2/17/2012 3:06 PM
February 16, 2012
City of Gilroy
Mr. Tom Haglund
City Administrator
7351 Rosanna Street
Gilroy, CA 95020
Re: July 2012 Rate Adjustment
Dear Mr. Haglund:
Recology
South Valley
WASTE ZERO
As outlined in Exhibit "J" section A thru E of the September 7, 1997 franchise agreement, we
submit our request for 5.40% adjustment to the collection rates effective July 1, 2012. Attached
are the following exhibits:
Exhibit 1 - CPI Calculation
CPI calculation using the formula described in
Consumer Price Index and the Motor Fuel Index.
Exhibit "J" of the franchise agreement for the
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 213 — 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, 2012.
Should you have any questions or need additional information, please call me at (408) 846 -1395
Since ly,
A-<
Phil Couchee
General Manager
�o r i uil:ey, "A 95020-95'1'? 1 T. 403.342 3352 1 rtccic I,
EXHIBIT A
RECOLOGY SOUTH VALLEY
CITY OF GILROY
RATE ADJUSTMENT
EFFECTIVE JULY 1, 2012
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, 2011 = 234.33
X (1 -2) = December, 2010 = 227.66
CPI = 234.33- 227.66
227.66
CPI = 2.93%
70% of CPI = 2.05%
Motor Fuel Index Values
X (1) = December, 2011 = 271.29
X (1 -2) = December, 2010 = 246.29
CPI Rate Adjustment Percentage:
True -up (see attached worksheet)
Total rate adjustment
MFI = 271.29- 246.29
246.29
MFI = 10.15%
10% of MFI = 1.02%
3.07%
2.33%
5.40%
EXHIBIT A
FY2012- Rate -Incr Exhibit 1 2/16/2012 12:50 PM
Bureau of Labor Statistics Data
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Change Output From: To:
Options: Zoos 2011
I- include graphs
Data extracted on: February 16, 2012 (3:52:58 PM)
Consumer Price Index - All Urban Consumers
Series Id: CUUSA422SAO
Not Seasonally Adjusted
Krea: San Francisco - Oakland -San Jose, CA
Item: All items
Ease Period: 1982 -84 =100
Download: t -Lj;, -XIS
More Formattirl[3 O ttion5 unp,
Yeari3an
Feb
Mar_ Apr
May Jun Jul
Aug Sep
Oct
Now Dec Annual, HALF1 HALF2
2001
187.9
189.1
190.9
191.0
191.7
190.6 189.9 188.7 191.1
2002
191.3
193.0
193.2
193.5
194.3
193.2 193.0 192.3 193.7
2003
197.7
197.3
196.3
196.3!
196.3
195.3 196.4 196.8 196.1
2004,
198.1
198.3
199.0
198.7
200.3
199.5 198.8 198.2 199.5
2005
201.2
202.5
201.2
203.0
205.9.
203.4 202.7 201.5 203.9
2006
207.1
208.9
209.1
210.7
211.0.
210.4 209.2 207.9 210.6
2007
213.688
215.842
216.123
216.240,
217.949
218.485 216.048 214.736 217.361
2008
219.612
222.074
225.181
225.411
225.824
218.528,'
18.528 222.76'7:- 221130 223.804
2009
222.166
223.854
225.692
225.801
226.051,
224.2391224.395; 223.305 225.484
2010
226.145
227.697
228.110
227.954
228.107
227.658 ; 227.469 1 226.994 227.944
2011
229.981
234.121
233.646
234.608
235.331
234.327 232.082 234.698
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Data extracted on: February 16, 2012 (4:00:16 PM)
Consumer Price Index - All Urban Consumers
Series Id: CUURA422SETB
Not Seasonally Adjusted
Area: San Francisco- Oakland -San Jose, CA
Its: Motor fuel
Base Period: 1982 -84 -100
Download: • As
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2
2001 134.2 134.1 139.5: 148.0 155.0 152.6 142.6 128.8 1403 133.0 123.7 107.1 136.6 , 143.9 129.3
2002; 100.0 100.0 112.4 126.3 123.4 125.3. 127.5 126.1 125.1 123.2 128.4 125.8 120.3 114.6 126.0
2003 131.3 146.1 163.6i 146_4 140.6 143.3 147 .11 159.8_ 142.4 131.4 126.0 144.9 148.1 141.7
2004 ! 128.5 142.3 161.1' 163.7 172.3 _ 175_2_` 168.3 161.0_ 160.9 178.8 178.7 163.3 162.8 157.2 168.5
2005 148.7 156.8 175.2 199.4: 194.9 183.9 ; 196.0' 207.6 227.5 223.7. 196.2. 170.4 190.0 176.5 203.6
2006 1793 190.3 194.5 221.1 249.9 242.5 241.0 237.4 214.6 192.5 187.9 195.5 212.2 212.9 211.5
-...
200712W.880 209.7491235.058 250.7601260.805 248.811 240.803: 226.316 223.372 235.791.259.048 255.821 237.268'234.344 240.192
2008:250.212 248.0391 274.961 1 290.676 ; 306.873 343.212; 341.875 ; 314.230 , 293.935 265.876: 185.407 144.347 271.637 285.662 257.612
2009 155.3061 168.967 ! 164.605 ;175.201; 190.133 221.647 ` 219.178 227.611 235.807 231.073: 226.929 221.105 203.130 179.310 226.951
2010 j 229.591 223.012 232.353! 23S.4191 236.233 234.727 ( 239.542 240.431'230.834, 236.366 ; 241.685 246.287 235.540 231.889 239.191
2011 254.643: 264.552 297.753 317.686 314.626 295.113: 288.352. 285.106: 295.484 290.739 286.068 271.286 290.729 286.173
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EXHIBIT A
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EXHIBIT A
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2012 -18 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 7"' day of May, 2012, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City orGilroy this 9�' day of Mqy, 2012.
Sliawna Freels, CMC
City Clerk of the City of Gilroy
(Seal)