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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 Page 1 of 1 Subscribe to E-mail updates r' to M:.t Search BLS.gov 0 t-4orTle I �"Ib)oct Area`., I Databases & Tools I r�ti C)i ii:ati+)f2� I '�'i, <Si itiE'r: t: 7Rf?iE "'F?t Databases, Tables & Calculators by Subject o 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 TOOLS CALCULATORS HELP INFO RESOURCES Areas at a Gram -L- ,nflatlon 'rielp h nbrlals .)hat's Naw Inspec: Bureau of Labor Statistics Data Page 1 of I Subscribe to E -road Updates w ,y t.'tt 4 Ne" iz'1 '.'Yt`. 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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 TOOLS CALCULATORS HELP INFO RESOURCES A,ess ai a Glance nnanor Heir. & Tutor,ar; What, Ne+ti ..s,,ector Ger.e,ai iO1G; tndUSINeS at a Glance L.ocahor QUanen, FAOs Cateers 4•, BLS Buaget anti PPrrornance -cono;nwc Releases n.jur� Aru ^ ^, r,nd It' DOL No Fear Act Datd eS?S $ Tables �bo_iI 3La 1puZ cur gAan na Lisa Riaas Joraacr i.IF u,-iktr;q Irrc. Senehts..;a. �]�sar�nt}r 901 r�edcni or irlfClmat+w+ Ac. P+VVar[r & Secur+rr Stare.n,en: 'J+sctnimers :.usicrmerurv.:v t++uo..an; wia 5ice r..�n_c U.S. Bureau of Labor Statistics I Postal Square Buldrig, 2 Massachusetts Avenue, NE Washington, DC 20212 -0001 ww w.bts.orn I Tekphone: 1- 202 -691 -5200 1 MD: 1 -80D -877 -8339 I Contact Us EXHIBIT A http: // data. bls.gov /pdq /SurvcyOutputServlct 2/16/2012 m 42 u u m c Q v m m v m u LWO el*99 00000 h O O N u1 O O N 'O N a a, v O V' Q Q u M � � N O 42 u c L � Y O c E V Q Iq Ui n M tD 0 d Irt N Ui v �- v> w _c L d u U m O a+ N Ol ti ri O M CD M O a1 of 00 C) M v UD ` ai O N CM _ m 13 3 u tU m .M1 O q-4 r O n 00 p u = tf1 U1 w O M tMp W V O d N M O m U w v U 00 00 00 00 M o ri ri ri � tl1 to Ln tD 3 a 7a 00 r, tD 111 M c a d V p 'C O ni c v V to C Q - m w M rn C! N to u m M O 3 c el*99 00000 h O O N u1 O O N 'O N a a, v O V' Q Q u M � � N O 42 u c L � Y O c E V Q Iq Ui n M tD 0 d Irt N Ui v �- v> w _c L d u U m O a+ N Ol ti ri O M 0 of 00 t!1 00 N t11 V1 C MO _ m 3 u tU m tD O q-4 r O n 00 = tf1 U1 w O M tMp Q_ O d N M m U w v N M 00 7a 00 r, tD 111 U1 ri O N d V p 'C O LA to C P.: N w M rn C! N u m M O c tt- O U C N V W O U �tU > O d CL m` Q 3 it u rn O -4 N E M 'o >. u.. O " ri v-, 3 r-1 O a. Q L N N N N N I C C 00 o,Or+ m N d Q d' N N N N N IA 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)