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Resolution 2014-331 RESOLUTION NO. 2014 —33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING MAXIMUM CHARGES FOR SOLID WASTE RATES AND ESTABLISHING A PROCESS FOR CONSIDERING AND APPROVING ANNUAL INDEX RATE ADJUSTMENTS AS DEFINED BY EXHIBIT "J" TO THE AGREEMENT BETWEEN THE CITY OF GILROY AND SOUTH VALLEY DISPOSAL AND RECYCLING FOR SOLID WASTE COLLECTION AND MANAGEMENT SERVICES WHEREAS, the City of Gilroy, a municipal corporation and charter city duly organized and existing under and pursuant to the Constitution and laws of the State of California ( "City "), -is authorized to enter into contracts and agreements to provide services for the benefit of the City and to review and approve service rates resulting from said contracts and agreements; and WHEREAS, the City and South Valley Disposal & Recycling, Inc., ( "Contractor ") are currently parties to an Agreement Between City of Gilroy and South Valley Disposal & Recycling, Inc., dated September 2, 1997 (the "Franchise Agreement "), by which City granted to Contractor the exclusive franchise to collect, transport and dispose of garbage and refuse -produced within the corporate limits of City; and WHEREAS, the City acknowledges that South Valley Disposal & Recycling, Inc. now conducts business as Recology South Valley; and WHEREAS, the City desires to amend and extend the Franchise Agreement as set forth in detail -in that certain City Council Staff Report entitled "Solid Waste Disposal Agreement, Franchise Amendment and Rate Setting Methodology" submitted to the City Council by the City Administrator (the "Staff Report") for City Council consideration at its meeting of June 16, 2014, the contents of which Staff Report are incorporated herein by this reference; and WHEREAS, as a component of the City's amendment to the Franchise Agreement, Recology South Valley will be required to make significant capital investments to convert the solid waste collection fleet to compressed natural gas fuel; and WHEREAS, the Franchise Agreement Exhibit "J" describes how service rates shall be adjusted annually based on indices defined in the Franchise Agreement; and X047 6083 1°l RESOLUTION NO. 2014 -33 JH104706083 z WHEREAS, the City is contractually obligated to approve service -rate adjustments that follow the formulas and methods identified in the Franchise Agreement Exhibit "J" Section B that are submitted by Recology South Valley; and WHEREAS, an annual and administrative review of index -based rate adjustments that does not require a City Council staff report or presentation will conserve City resources and enhance City Council efficiency; and WHEREAS, Section 12.23 of the Municipal Code specifies that the City Council shall set maximum charges for solid waste management services from time to time by resolution; and WHEREAS, the consideration by City Council of the adoption of this Resolution has been duly noticed pursuant to applicable laws and has been placed upon the City Council Meeting Agenda on the date set forth in the Staff Report, or to such date that the City Council may have continued or deferred consideration of this Resolution, and on such date the City Council conducted a duly noticed public meeting at which meeting the City Council provided members of the public an opportunity to comment and be heard and considered any and all testimony and other evidence provided in connection with the adoption of this Resolution; and WHEREAS, the activities allowed under this Resolution are exempt from the California Environmental Quality Act of 1970 ( "CEQA ") per CEQA Guidelines Section 15273; and WHEREAS, the City Council determines that adoption of this Resolution is in the public interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS: Section 1. Recitals. The City Council does hereby find, determine and resolve that all of the foregoing recitals are true and correct. Section 2. Policy Direction and Authorization. The City Council does further resolve, order and/or direct as follows: a. That the rates attached hereto as Exhibit A, which were approved by the Gilroy City Council on June 13, 2013, shall remain the maximum charges and rates for solid waste management and recycling services until July 2, 2015. b. As specified in the Third Amendment to the Franchise Agreement , a supplemental rate increase of 3.82% shall be applied on July 1, 2015 and a 3.0% supplemental rate increase shall be applied on July 1, 2016 to the rates listed in Exhibit A in order to partially offset the investments required to convert to compressed natural gas fuel. 48274589 -2891 v1 RESOLUTION NO. 2014-33 JH104706083 3 These supplemental increases shall be applied in addition to any other rate adjustments Contractor is eligible to request under the Franchise Agreement. c. That all subsequent requests for service rate adjustments submitted by Recology South Valley, that are solely based on the adjustment indices specified in the Franchise Agreement, Exhibit "J" Section B , shall be subject to the annual review and approval of the City Administrator and shall not require City Council review and approval as specified in the Franchise Agreement Exhibit "J" Section E. All other requests for rate adjustments based on all other sections of the franchise agreement shall require City Council review and approval. Section 3. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 16'' day of June, 2014 by the following roll call vote: AYES: COUNCILMEMBERS: ARELLANO, BRACCO, LEROE- MUNOZ, TUCKER, WOODWARD and GAGE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: AULMAN APPROVED: ATTEST: Freels, City Clerk 4827-4589-2891 v1 JH10470604706083 RESOLUTION NO. 2014 -33 RECOLOGY SOUTH VALLEY CITY OF GILROY RATES EFFECTIVE JULY 1, 2013 Current Add New DESCRIPTION Rates 1.45% Rates 1. Residential Customers and Multi - Family Can Customers Oncludin_a Recvclin 1 -Can 28.25 0.41 28.66 2 -Cans 40.53 0.59 41.12 3 -Cans 53.13 0.77 53.90 4 -Cans 67.95 0.99 68.94 Each Additional Can 14.81 0.21 15.02 Extra Can /Bag Tag 5.93 0.09 6.02 Bulky Item Pickup (Plus Disposal Cost) 17.78 0.26 18.04 Toter Subscription Changes 14.81 0.21 15.02 Low Income Senior 1 -Can 23.80 0.35 24.15 2 -Cans 33.83 0.49 34.32 3 -Cans 44.28 0.64 44.92 4 -Cans 54.76 0.79 55.55 Hillside 1 -Can 34.11 0.49 34.60 2 -Cans 48.58 0.70 49.28 3 -Cans 63.42 0.92 64.34 4 -Cans 78.26 1.13 79.39 2. Multi - Family Bin Customer RecyclinQ Per Unit Charge 2.23 0.03 2.26 For recycling service only (option to choose Commercial Service) 3. Commercial and Multi - Family Bin Customer (Refuse) 1 -Can 28.25 0.41 28.66 2 -Cans 42.73 0.62 43.35 3 -Cans 57.60 0.84 58.44 4 -Cans 72.41 1.05 73.46 Each Additional Can 16.04 0.23 16.27 4. Commercial Front Loader Service Rates 2 Yard F/L (1x/wk) 189.26 2.74 192.00 2 Yard F/L (2x/wk) 355.30 5.15 360.45 2 Yard F/L (3x/wk) 521.32 7.56 528.88 2 Yard F/L (4x/wk) 687.40 9.97 697.37 2 Yard F/L (5x/wk) 853.42 12.37 865.79 2 Yard F/L (6x/wk) 1019.46 14.78 1,034.24 2 Yard F/L (on call) 123.21 1.79 125.00 3 Yard F/L (lx/wk) 272.73 3.95 276.68 3 Yard F/L (2x/wk) 513.98 7.45 521.43 Copy of FY2013- Rate -Incr Exhibit 6/17/2014 1:45 PM RECOLOGY SOUTH VALLEY CITY OF GILROY RATES EFFECTIVE JULY 1, 2013 Copy of FY2013- Rate -Incr Exhibit 6/17/2014 1:45 PM Current Add New DESCRIPTION Rates 1.45% Rates 3 Yard F/L (3x/wk) 755.18 10.95 766.13 3 Yard F/L (4x/wk) 996.41 14.45 1,010.86 3 Yard F/L (5x/wk) 1237.64 17.95 1,255.59 3 Yard F/L (6x/wk) 1478.85 21.44 1,500.29 3 Yard F/L (on call) 175.66 2.55 178.21 4 Yard F/L (1x/wk) 365.82 5.30 371.12 4 Yard F/L (2x/wk) 692.05 10.03 702.08 4 Yard F/L (3x/wk) 1018.26 14.76 1,033.02 4 Yard F/L (4x/wk) 1344.49 19.50 1,363.99 4 Yard F/L (5x/wk) 1670.73 24.23 1,694.96 4 Yard F/L (6x/wk) 1996.93 28.96 2,025.89 4 Yard F/L (on call) 243.98 3.54 247.52 6 Yard F/L (1x/wk) 532.75 7.72 540.47 6 Yard F/L (2x/wk) 1013.10 14.69 1,027.79 6 Yard F/L (3x/wk) 1493.47 21.66 1,515.13 6 Yard F/L (4x/wk) 1973.83 28.62 2,002.45 6 Yard F/L (5x/wk) 2454.19 35.59 2,489.78 6 Yard F/L (6x/wk) 2934.53 42.55 2,977.08 6 Yard F/L (on call) 334.52 4.85 339.37 Front Loader Special (per cubic yard) 20.35 0.30 20.65 5. Compactor Service Front Loader (per cubic yard) 43.47 0.63 44.10 3 -yd F/L compactor (lx/wk) 566.18 8.21 574.39 3 -yd F/L compactor (2x/wk) 1131.12 16.40 1,147.52 3 -yd F/L compactor (3x/wk) 1696.05 24.59 1,720.64 6. Debris Box Rates 20 Cubic Yard Debris Box, 460.66 6.68 467.34 Per ton charge (over 3 tons) 88.96 1.29 90.25 40 Cubic Yard Debris Box, 767.67 11.13 778.80 Per ton charge (over 6 tons) 88.96 1.29 90.25 Debris Box Compactors 43.47 0.63 44.10 (per cubic yard of capacity) 20 Cubic Yard Debris Box (recyclable) 285.35 4.14 289.49 40 Cubic Yard Debris Box (recyclable) 504.95 7.32 512.27 7. Additional Street Sweepin4 M -F 8:00am- 5:00pm (Per Hour) 109.33 1.59 110.92 Sat -Sun 8:00am- 5:00pm -Per Hr +4hr Minimum 182.24 2.64 184.88 Copy of FY2013- Rate -Incr Exhibit 6/17/2014 1:45 PM I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2014 -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 regular meeting of said Council held on the 16th day of June, 2014, 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 17th day of June, 2014. A"K Freels, MMC- Clerk of the City of Gilroy (Seal)